Maoist premier Bhattarai opens to Indian companies, abandons Beijing
by Kalpit Parajuli
An economic agreement is reached during his four-day visit to India, which ended yesterday. Maoists accuse him of betrayal because Nepali authorities now must compensate Indian companies for losses incurred as a result of strikes and political protests.
Kathmandu (AsiaNews) – Waving mourning flags, Maoists staged a street protest against a bilateral economic agreement signed by Prime Minister Bhattarai during his four-day visit to India, which ended yesterday. According to the more extremist elements in the party, the prime minister betrayed the party’s ideals. Traditionally, Nepal Maoists are closer to China and critical of India’s cultural and economic hegemony in the mountain nation.
Since the abolition of the monarch in 2006 and the rise of Maoist and Communist parties to power, Nepal has shifted gear and moved away from its traditional Indian ally in favour of closer relations with China.
In exchange for Chinese economic aid, Beijing has demanded a shutdown of the border with Tibet and a crackdown against any anti-Chinese demonstration.
Elected on 27 August, Bhattarai is the third Nepali prime minister from Maoist ranks. However, unlike his predecessors, he graduated in India and has maintained contacts and friends inside India’s political establishment, and favours a new overture towards New Delhi at the expense of Beijing.
The agreement signed by Bhattarai includes the protection of Indian companies operating in Nepal, which will enjoy the same rights and duties as Nepali companies. For instance, in case of strikes, protests, and other ideologically charged actions, the Nepali government has promised to compensate Indian firms.
For the prime minister, the country needs to attract fresh foreign investments and preserve those already in Nepal, put at risk by too many years of political and economic instability.
In the recent past, many foreign companies, especially from India, have close down their Nepali plants because of poor security and high labour costs. For exampke, in eastern Nepal, Garment Surya closed its plant, leaving 3,000 workers without a job.
Jhalanath Khanal, a former premier and the current head of the Communist Party Of Nepal, slammed the agreement, saying it goes against the interests of the nation, workers and the people.
“There are frequent strikes in our country and we cannot afford to compensate companies,” he said. “This would deepen the economic crisis that has affected people for years.”
Yet, for other political leaders, the guarantees offered by the government can be an incentive to attract investments and deter constant protest.
For the former secretary to the Finance minister, Rameshwor Khanal, “Our income depends on migrants’ remittances, something that is not sustainable on the long run and does not enrich the country. Guaranteeing security and stability to attract more foreign investments is a way to offer a job to the many unemployed workers and stop emigration.”
In Khanal’s view, no one would invest in the country without such guarantees. “We must work to avoid counterproductive situations that threaten companies’ stability and activity,” he added.
Since the abolition of the monarch in 2006 and the rise of Maoist and Communist parties to power, Nepal has shifted gear and moved away from its traditional Indian ally in favour of closer relations with China.
In exchange for Chinese economic aid, Beijing has demanded a shutdown of the border with Tibet and a crackdown against any anti-Chinese demonstration.
Elected on 27 August, Bhattarai is the third Nepali prime minister from Maoist ranks. However, unlike his predecessors, he graduated in India and has maintained contacts and friends inside India’s political establishment, and favours a new overture towards New Delhi at the expense of Beijing.
The agreement signed by Bhattarai includes the protection of Indian companies operating in Nepal, which will enjoy the same rights and duties as Nepali companies. For instance, in case of strikes, protests, and other ideologically charged actions, the Nepali government has promised to compensate Indian firms.
For the prime minister, the country needs to attract fresh foreign investments and preserve those already in Nepal, put at risk by too many years of political and economic instability.
In the recent past, many foreign companies, especially from India, have close down their Nepali plants because of poor security and high labour costs. For exampke, in eastern Nepal, Garment Surya closed its plant, leaving 3,000 workers without a job.
Jhalanath Khanal, a former premier and the current head of the Communist Party Of Nepal, slammed the agreement, saying it goes against the interests of the nation, workers and the people.
“There are frequent strikes in our country and we cannot afford to compensate companies,” he said. “This would deepen the economic crisis that has affected people for years.”
Yet, for other political leaders, the guarantees offered by the government can be an incentive to attract investments and deter constant protest.
For the former secretary to the Finance minister, Rameshwor Khanal, “Our income depends on migrants’ remittances, something that is not sustainable on the long run and does not enrich the country. Guaranteeing security and stability to attract more foreign investments is a way to offer a job to the many unemployed workers and stop emigration.”
In Khanal’s view, no one would invest in the country without such guarantees. “We must work to avoid counterproductive situations that threaten companies’ stability and activity,” he added.
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