--By Madhukar SJB Rana

 

It would  have been more welcome--and nice-- if the WB took some blame for the jobless growth and the massive inequalities and inequities rendered through its economic, financial and commercial policy prescriptions. Which, I submit, was largely oriented to serving the interests of the global financial markets than the real economies of the poorer nations, especially the least developed and the land- and sea- locked countries. 

 

In Asia, particularly South Asia, youth unemployment in the midst of the breakdown of the joint family system in rural areas, and nuclear families, in urban areas, has impacted the elders with unprecedented social insecurity and soicial anxiety. Perhaps, the recourse to female abortion, mostly in the more prosperous regions, is partially due to the pervasive youth unemployment, underemployment and their inability to care for the family as males. 

 

We are told that Democracy is about choices and opportunities. Hopelessness and despair lie in abundance when jobs are as scarce as dodos, even when fertility rates are declining. And worse, when the skills do not match the available jobs.Thus having to bring in foreign labour. No wonder people are less happy and suffer self-indignities even in the midst of soaring GDPs and. faced with Recession and Stagflation. are now calling for Gross National Happiness as the end game of Growth and Development to reject GDP as an indicator of progress---  be it in terms of its Quantity or its Quality .

 

Our national planning has near-totally ignored the needs of the agrarian society where most people live. Ever since the WB and others ' experiments with Integrated Rural Development Projects (IRDPs), rural development has given way to urban development priority But never Integrated Regional Development or Integrated Watershed Management! Had this been adopted, I submit, we would not have been clamouring for federalism and worse ethnic federalism. 

 

Nepal was a proud exporter of cereals till the 1970s  and look where we stand now-- on the doorstep of food insecurity, hunger and stagnant agri-productivity;  at the mercy of the rain Gods that, themselves, are at the mercy of Climate Change through Global Warming caused by Materialism, Consumerism and Bankers' Greed.

 

We speak of the need for jobs for women but witness the plight of women faced with the exodus of the male population to the remittances economy overseas. Now women have to devote even more time and energy to cope to sustain their households. Women are being burdened further with dual responsibility and the feminization of agriculture. 

 

There is no reckoning of the need for mechanisation to save on labour, better storage to save on post harvest loss and damage, pest control,extension,credit and marketing support, crop and livestock insurance to cover risks; not least the dire need for irrigation. On the social front, countervailing the economic value of child labour with free education, free school meals for children and free text books-- at least for girls if not for all is paramount. I submit that the budgetary constraints arising for such a strategy, as part and parcel of a new look Gender Budget, can be overridden by removing subsidies to the urban population particularly in POL products. Let's hope that, henceforth, the Gender Budget that I introduced in 2005 will take this into consideration as an integral part of Nepal Inclusive Development strategy for its 12th Five Year Plan. 

 

A new Forestry Plan is eminently desirable to commercialise this sector, along with the commercialisation of agriculture. It will help scale up the User Groups to go beyond conservation and preservation of community forests --towards afforestation, exports and creation of a new industrial value chain based on wood and herbal products. It was estimated in 2005 that the revenue to governmemt could be more than Rs 13 billion per annum!

 

We want higher levels of nutrition amongst our people and yet we do nothing for the livestock and animal husbandry sector that is an integral part of the rural economy. Now we are told that we should even slaughter our cows as we are a secular country! 

 

More specifically on the 3 Layered Approach adopted by the WDR 2013 I have the following comments: 

 

Layer 1The Fundamentals : We need all the elements, as identified by the WDR 2013, but we need more emphasis and innovation on Human Capital Development for the following crucial reasons in Nepal's context.

 

I believe the National Planning Commission, at the macro level, needs to adopt Integrated Manpower and Educational  Planning with People Public Private Partnerships for Job Oriented Vocational, Technical, Technological, Entrepreneurial and Managerial development, and utilisation, including higher quality manpower (and womenpower) export to the global labour market.It calls forth not simply curriculum, job and career planning but also credit and refinancing by Banks and NRB with adequate fiscal incentives, especially for Venture Capital Funding for Technology and R and D supportive investments --- with due linkage between Business and Universities and Professional Associations. 

 

A High Level National Council for Human and Intellectual Capital Development is recommended to do labour and educational markets' basic and applied research. As well as well as interface with all stakeholders to formulate appropriate long and mid term policies and strategies based on macro scenario analyses, sector trends and micro level practices by organisations with their manpower, career and performance planning practices and needs. 

 

The Question has been raised by the WDR 2013: Skills or Jobs ? Well, let me underscore here that Integrated Manpower and Educational Planning answers this with ease. Both can happen together leaving the Individual to make the choice as to how and when and where?

 

Layer 2 Labour Policies: We need an Industrial Relations Act to advance industrial democracy, protect labour and managerial rights and advance the practice of collective bargaining free from the dominance of political party interests and interference -- with effective labour regulators and regulations for union recognition, dispute settlement, lockouts, strikes, tenure of service and lay offs, and retrenchments. 

 

Layer 3 Priorities: Here I would call forth FNCCI and CNI primarily to lead the way by calling for modernisation of HR Policies and Practices. 

 

Empowering the HR function to move up the value chain towards Strategic Human Resource management (SHRM) policies and practices  as equal partners with production, marketing and finance is critical is crucial for advancement of our businesses enterprises' competitive advantage. HRM must be made on par with all other strategic management functions and called upon to scrupulously adopt Career and Performance Planning as part of the CSR of all its members In this way, I believe, employees will gladly opt for Company Unions as opposed to Political, Trade or Professional Unions. 

 

As a Professor at SAIM,  let me make you all aware that the 21st Century Guru of Management, like Peter Drucker was in the 20th Century, is one of us from South Asia --- Vineet Nayer. His mantra for management excellence is EFCS --- employees first,customers second! It's revolutionary and it originates from our South Asian soil. I urge all to read his book by the same name and ponder over its benefits to our business conglomerates on how to make for world class business organisations. 

 

Conclusions

The Report says that Conventional Wisdom is not always right. How true. 

 

From SHRM concepts and practices we learn that through human capital, fostered by an internal environment of creativity, innovation, intrapreneurship and passion for work, business leaders create intangible values for an organisation that exceeds, by far, the financial value of its assets. 

 

If we scale up this micro wisdom we must now look at jobs not as derived demands from growth--- but as drivers of growth through innovation in technology, product, service  as well as organisational innovation. Hence the call for Integrated Education and Human resource Planning by NPC in future.

 

Finally, the Human Capital Market must be kept as free as possible allowing for merit and competition to flourish. It needs to be provided with suitable social safety nets from the state and enterprises to help people get unemployment insurance, training and retraining benefits. As well as mobility assistance for a family to move to new locations. The Ministry of Finance  should provide both tax allowances and subsidies, as appropriate, for investment in human, intellectual, organisational and social capital. 

 

Development of our traditional Social Capital should be the focus of governments if it wishes to safeguard one's culture and tradition while promoting change and modernity. So far far too much reliance has been laid on INGOs and NGOs and practically nothing to garner the inherent strengths that are possible for peace and harmony in Nepalese society by encouraging growth, development and modernization of our traditional voluntary organizations (TVOs) and indigenous community based organizations (CBOs). 

 

Former Finance Minister Rana is Professor at South Asian Institute of Management (SAIM).