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			'id' => '538',
			'article_category_id' => '34',
			'title' => 'LG Dashain Tihar Kya Sandar',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img align="bottom" alt="LG Dashain Tihar Kya Sandar" border="2" height="200" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/3rd.jpg" vspace="2" width="300" />Gopi Maharjan has won the bumper prize of LG 32” LED and Home Theatre under the festive scheme ‘LG Dashain Tihar Kya Sandar’ launched by CG Electronics. Maharjan, a Kumaripati resident won the prize with coupon number 007045 on the purchase of an LG Refrigerator. The scheme was launched to provide sure-shot gifts on the purchase of every LG product.  &nbsp;</p>',
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			'created' => '2012-02-21',
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			'description' => '‘LG Dashain Tihar Kya Sandar',
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			'id' => '537',
			'article_category_id' => '34',
			'title' => 'Sher Remit Ties Up With AFX FastRemit',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	Al Fardan Exchange Company LLC, a prominent financial institution of Qatar, and Sher Remit Pvt Ltd, a newly established remittance handling company of Nepal, have inked an agreement for mutual collaboration. Under the <img align="right" alt="" border="1" height="262" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/2nd-photo.jpg" vspace="2" width="300" />agreement signed in Doha, Sher Remit has become the principal agent in Nepal of AFX FastRemit – remittance wing of Al Fardan Exchange. According to Ashish Sherchan, Managing Director of Sher Remit, beneficiaries in Nepal can receive money remitted through AFX FastRemit from 900 agents of Sher Remit throughout the country or NABIL bank, as per their convenience.  &nbsp;</p>',
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			'created' => '2012-02-21',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Al Fardan Exchange Company LLC, a prominent financial institution of Qatar, and Sher Remit Pvt Ltd, a newly established remittance handling company of Nepal, have inked an agreement for mutual collaboration.',
			'sortorder' => '441',
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			'id' => '536',
			'article_category_id' => '34',
			'title' => 'Czech-Nepal Investment In Trishuli III',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>Trishuli III, a 24.95 megawatt (MW) hydroelectricity project is being financed jointly by Czech Republic and a Nepali company. STEF Group, a Czech energy and Nepal’s Santoshi Hydropower will be mutually developing the project. The Czech company has also shown interest to invest in small hydroelectricity projects of up to 1 MW that are particularly suitable for rural electrification. Vishnu Kumar Agrawal, Honorary Consul of the Czech Republic in Nepal said that Czechs are interested to invest in three large hydro projects in Nepal. However, he refused to name the projects as the discussions are still in the primary stage. Narendra Kumar Basnyat, Acting President of Confederation of Nepalese Industries (CNI) said that Czechs are interested to expand business and investment in Nepal through cooperation.  
	 </p>',
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			'description' => 'Trishuli III, a 24.95 megawatt (MW) hydroelectricity project is being financed jointly by Czech Republic and a Nepali company.',
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			'id' => '535',
			'article_category_id' => '34',
			'title' => 'Tourism Decade In Offing',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	The tourism promotional campaign, Nepal Tourism Year (NTY) 2011, is being extended into tourism decade. Dr Ganesh Raj Joshi, Secretary at the Ministry of Tourism and Civil Aviation said the ongoing campaign will be given continuity in the name of tourism decade to promote investment in this sector. “International promotional programmes scheduled during tourism year will be carried out only in 2012. That is why a plan of tourism decade is being formulated,” he said. He opined that the tourism decade should be celebrated till 2020 so that the excitement of NTY extends to rural areas. He also informed that the conclusion of NTY will coincide with the inauguration of Visit Lumbini Year 2012.</p>
<p>
	An extravagant ceremony is planned to be held in Lumbini for this purpose. The government had allocated Rs 130 million for tourism promotion for fiscal year 2011/12. However, the amount will only be spent in 2012. Joshi said the enthusiasm seen from the private sector, general public and political leadership is necessary to be continued further in the future too. The lapses of NTY can be corrected in the coming nine years long campaign, according to immediate past CEO of Nepal Tourism Board, Prachanda Man Shrestha. He also said that it is vital to introduce new and unique programmes to attract tourists every year.  &nbsp;</p>',
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			'created' => '2012-02-21',
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			'keywords' => '',
			'description' => 'The tourism promotional campaign, Nepal Tourism Year (NTY) 2011, is being extended into tourism decade. Dr Ganesh Raj Joshi, Secretary at the Ministry of Tourism and Civil Aviation said the ongoing campaign will be given continuity in the name of tourism decade to promote investment in this sector',
			'sortorder' => '439',
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			'id' => '534',
			'article_category_id' => '34',
			'title' => 'ICT Association Elects New Working Committee',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<br />
	<img align="absMiddle" alt="ICT Association Elects New Working Committee" border="1" height="349" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/biz1.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	The ICT Association of Nepal has elected new executive committee for the period of 2011-2013. While Sagar Dev Lakhe and Bheshraj Poudel are reelected the President and Vice-President respectively, Roshan Bhandari and C N Upadhyay too have been reelected General Secretary and Treasurer, respectively. The new executive committee also has Shobhan Sainju, Dilip Kundaliya, Shirish Murarka, Nikhil Bansal and Sandesh Nyachhyon as members.</p>',
			'published' => true,
			'created' => '2012-02-21',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'The ICT Association of Nepal has elected new executive committee for the period of 2011-2013. While Sagar Dev Lakhe and Bheshraj Poudel are reelected the President and Vice-President respectively, Roshan Bhandari and C N Upadhyay too have been reelected General Secretary and Treasurer, respectively.',
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	(int) 5 => array(
		'Article' => array(
			'id' => '533',
			'article_category_id' => '40',
			'title' => 'We Are Very Keen To Move The SAARC Free Trade Process Forward',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Jaideep Mazumdar" border="1" height="175" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-VI dec2012.jpg" vspace="10" width="300" /><br />
	<br />
	<strong>Jaideep Mazumdar <br />
	Minister and Deputy <br />
	Chief of Mission Embassy of India, Kathmandu </strong><br />
	<br />
	<br />
	<strong><br />
	How do you look at the overall regional trade in South Asia? </strong><br />
	<br />
	As everybody will say, it is not up to potential and a lot more can be done. Intra-regional trade within South Asia is only 5 per cent of the trade that the region has with the world. There is, of course, a potential and a huge opportunity for the countries within the region to improve on this figure. <br />
	<br />
	<br />
	<strong>How can connectivity be improved between India and Nepal to negotiate better transit? </strong><br />
	<br />
	In Nepal’s context, as you would be aware that we are building four integrated customs check posts along the border. The objective is that whenever there is a traffic movement between India and Nepal, there is a scientific borderly single place where everything is done – customs check, inspection of goods, clearing of consignments etc. We are also building five cross border railway lines wherein we are harmonising different gauges on both sides of the border as well as building new lines so that goods can come straight to Nepal and vice versa. <br />
	<br />
	To encourage third country trade with Bangladesh, we are building a railway line which will provide an exit from Bangladesh straight into Nepal. We have agreed to allow Vishakhapatnam as an alternative port for Nepal to trade with the rest of the world. We are also building 1,400 kms of roads which will open Nepal inter-land for trading with northern Bihar and northern UP in India along the Terai belt so the movement of goods will become easier. These kinds of connections and inter-linkages are being built to improve transit. <br />
	<br />
	<strong><br />
	How do you view economic diplomacy in the context of enhanced regional trade among SAARC nations? </strong><br />
	<br />
	I can speak for our foreign service that is the Indian Foreign Service, which puts a tremendous amount of importance on economic diplomacy which encompasses trade diplomacy. In all our embassies, we have designated officers who look after harmonising, increasing the trade and helping the private sector of the countries they are posted at. For trade diplomacy, we have an entire division in the Ministry of External Affairs in India which deals with such matters. <br />
	<br />
	<br />
	<strong>There seems to be a sheer lack of trust among nations on different issues. How big a deterrent is this for intra-regional trade? </strong><br />
	<br />
	Historically, there has been a problem between India and Pakistan that was a hindrance for intra SAARC trade. We now hope that things will move much faster and we have been very keen to move the SAARC free trade process forward. We have been doing our bit to ensure that free trade develops in the region. <br />
	<br />
	<br />
	<strong>India, being the centre of regional trade among the SAARC nations, could have played a more vital role in making the SAARC trade bloc effective. What are the reasons for India not being able to do so?</strong><br />
	<br />
	Of course, everybody could have done more. As I said earlier, the potential of intraregional trade in the SAARC region is too large and there is so much opportunity. It naturally means that the potential has not been achieved but it’s due to many factors. I think there is a realisation now among the countries in the region that we need to increase those linkages and move SAARC into a more integrated regional cooperation model. All the leaders have talked about it at the Maldives Summit and our Prime Minister has also spoken very strongly in favour of integrating SAARC. <br />
	<br />
	<br />
	<strong>Why is the trade in this region more oriented towards international trade rather than trading within the region itself? </strong><br />
	<br />
	You cannot generalise this. There may be some products which will have a market in the SAARC region while there may be some other which can find more lucrative markets outside the region. The very fact that intra SAARC trade is only 5 per cent does not mean that the objective should be to make it 100 per cent. For example, oil is always imported so it goes both ways – exports as well as imports. Even Bangladesh which produces so much of garments cannot look only at the South Asian market. People have very high buying power in Europe and North American countries so there are commodities which will find a market in that part of the world and not necessarily in South Asia. <br />
	<br />
	<strong><br />
	How do you view recent development such as BIPPA in the context of intra-regional trade? </strong><br />
	<br />
	BIPPA is an agreement which is just that – an agreement that was to encourage the investors of both countries to invest in each other. We have signed such agreements with more than 75 countries so having agreements with them does not mean that all those countries have invested in India. Therefore, the final decision on investment depends on many factors such as policy stability, security etc. BIPPA itself is only a facilitative document. <br />
	<br />
	<strong><br />
	What are the potentials of Nepal’s trade with countries in the SAARC region, especially India? </strong><br />
	<br />
	You can only export what you can produce. For most of the countries in the region, the exportable products are not adequate therefore countries like Nepal and Bangladesh have big trade deficits with India. Import wise too, if Nepal does not buy goods from India, it has to buy them from somewhere else simply because it does not produce those goods. For example, petroleum products have to be bought from India or some other country and if you buy it from a third country, you still have to transport it through India. If you don’t produce a certain commodity, you cannot trade that.  <br />
	<br />
	<br />
	Â&nbsp;</p>',
			'published' => true,
			'created' => '2012-01-27',
			'modified' => '2012-08-23',
			'keywords' => '',
			'description' => 'As everybody will say, it is not up to potential and a lot more can be done. Intra-regional trade within South Asia is only 5 per cent of the trade that the region has with the world. There is, of course, a potential and a huge opportunity for the countries within the region to improve on this figure.',
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	(int) 6 => array(
		'Article' => array(
			'id' => '532',
			'article_category_id' => '40',
			'title' => 'Intra-industry Trade Potential In South Asia Is Underutilised',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Ratnakar Adhikari" border="1" height="433" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-Vdec2012.jpg" vspace="10" width="300" /><br />
	<br />
	<strong>Ratnakar Adhikari <br />
	General Secretary <br />
	South Asia Watch on Trade, Economics and Environment (SAWTEE) <br />
	</strong><br />
	<br />
	<strong><br />
	What is the current status of Intra SAARC trade? </strong><br />
	<br />
	The intra-regional trade among the SAARC countries stands at 5 per cent of the blocks worldwide trade which has been the case for some time now. Intra SAARC trade has certainly increased over the years, however, there has been an increase in SAARC’s world trade too. Hence, the share of intraregional trade has remained constant. When compared to intra-regional trade in other trade blocs like ASEAN and EU, intra SAARC trade does look small. <br />
	<br />
	<strong><br />
	Why has SAFTA not been able to gainmomentum since its inception in 2004? </strong><br />
	<br />
	SAFTA has not been able to take off because of political as well as economic reasons. It was also affected due to the political tensions between India and Pakistan. Among the economic reasons, it’s the sensitive list that has affected SAFTA most wherein it was decided to have such a list but the types of commodities under the sensitive list was not ascertained. A mammoth 53 per cent of tradable commodities had figured in the sensitive lists of different countries in the region. <br />
	<br />
	<br />
	<strong>How can regional connectivity be improved to negotiate better transit and transhipment?<br />
	</strong> <br />
	There are a number of issues related to regional connectivity that can certainly be looked at if there is a proper intent to do that. For example, India is suffering from Bangladesh’s denial to allow transit through its territory which could have made it easier to reach the north-eastern part of India. Even Nepal can export tea to Pakistan but it will not be profitable sending tea via air cargo. If Nepal can export tea by using the Mahendranagar border to Pakistan via Wagah in Punjab, surface transport can deliver goods in 12 hours flat. But there has been no concrete talk with India on this matter. <br />
	<br />
	<strong><br />
	India, being the centre of regional trade among the SAARC nations, could have played a more vital role in making the SAARC trade bloc effective. What are the reasons for India not being able to do so? </strong><br />
	<br />
	It’s probably because they have analysed the cost and benefits and realised that it is better for them to look outside the region rather than concentrating their negotiating and political capital as well as resources in South Asia. India is not making any pro-active efforts to strengthen regional economic cooperation in South Asia whereas it should be actually promoting regional stability in South Asia which is eventually going to be in its own interest. <br />
	<br />
	<strong><br />
	Why is the trade in this region more oriented towards international trade rather than trading within the region itself? </strong><br />
	<br />
	Historically, most of the developing countries while talking about exporting manufactured products, always have the European, North American, Japanese and Australian markets in their minds. This has been happening for over a century now. Another problem in South Asia region is that most of the countries compete for the same market internationally. <br />
	<br />
	<strong><br />
	Can South Asia region be the production house as well as the market and be self suffi cient for trade? </strong><br />
	<br />
	Why not? I had actually proposed in one of my writings earlier that South Asia can become the textile and clothing production hub. I feel that intra-industry trade potential is not being utilised in South Asia to the extent possible. For example, Pakistan and India are among the best cotton producers in the world and we have state-of-the-art industries in the region that could process cotton into textile fabric. In Bangladesh, we also have one of the lowest cost manufacturers of garment in the world. The manufactured garments can then be sent to Colombo and utilising the shipping industry potential of Sri Lanka, they can be fast processed and shipped to markets abroad. This kind of modality can work in the region’s interest. <br />
	<br />
	<br />
	As for consumption of goods produced within the region, we can take the example of India already importing textile and clothing products from countries like Bangladesh and Nepal. And it should import even more from within the region rather than importing from countries like Thailand and China. There should be an attempt to create an incentive for the partner countries in the region to be able to export to a country like India. However, bureaucratic hassles, nontariff barriers, rules of origin as well as 4 per cent special additional duty imposed on an arbitrary basis have created problems. <br />
	<br />
	<strong><br />
	What are the differences in provisions of WTO and RTA? How does it affect the intra-regional trade? </strong><br />
	<br />
	Regional Trade Agreements (RTA) are meant to provide a platform for deeper level of integration when compared to WTO. You have to understand the fact that WTO actually does not actively discourage RTAs. By virtue of a legal provision within the WTO, it condones regional economic arrangements. In that sense, since SAFTA is deeper, trade within SAFTA should be higher than trade outside the region. By the same token, 67 per cent trade takes place within the region for EU while the figure is 60 per cent for NAFTA. It’s because they have deeper regional integration so there is no reason why SAFTA should not be able to replicate such successes. The regional economic arrangements are actually WTO plus. <br />
	<br />
	The only thing RTAs like SAFTA should learn from the WTO is that it should have a dispute settlement system that is fair, effective and credible. Due to the twotier (Panel and Appellate Body) system of dispute settlement in the WTO, any error of judgment by the panel can be corrected through appeal and actually, more than twothird of cases in the WTO are appealed.</p>
<p>
	As for effectiveness, the verdict of the dispute settlement body is almost invariably adopted because of the reverse consensus rules, which means that the verdict of the dispute settlement body would not be adopted only if there is a consensus not to adopt the report. The credibility factor comes into play because the threat of sanction imposed by the winning party through the decision of the dispute settlement body is plausible. There have been instances where sanctions have actually been imposed thereby forcing the losing party to bring its measures in conformity with the WTO rules. While advanced RTAs such as EU or NAFTA have very effective dispute settlement systems in the form of European Court of Justice and NAFTA Court, SAFTA does not have such a mechanism. This is one of the reasons why countries acting against the spirit of SAFTA also go scot free. <br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-01-27',
			'modified' => '2012-08-23',
			'keywords' => '',
			'description' => 'The intra-regional trade among the SAARC countries stands at 5 per cent of the blocks worldwide trade which has been the case for some time now. Intra SAARC trade has certainly increased over the years, however, there has been an increase in SAARC’s world trade too. Hence, the share of intraregional trade has remained constant. When compared to intra-regional trade in other trade blocs like ASEAN and EU, intra SAARC trade does look small.',
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	(int) 7 => array(
		'Article' => array(
			'id' => '531',
			'article_category_id' => '40',
			'title' => 'Economic Diplomacy Is The Present World Order',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Chandra Kumar Ghimire" border="1" height="330" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-IV dec2012.jpg" vspace="10" width="300" /><br />
	<br />
	<strong><br />
	Chandra Kumar Ghimire <br />
	Joint Secretary <br />
	Ministry of Commerce and Supplies (now Consulate General of Nepal to Kolkata) </strong><br />
	<br />
	<br />
	<br />
	<strong>What are the major differences in WTO and RTA provisions? How do they affect intraregional trade? </strong><br />
	<br />
	<br />
	WTO is a broader frame which is the legal basis for global trade arrangements and provides framework for the rule-based trading system of which RTA is an option. RTA's jurisdiction is area specific and has the involvement of likeminded countries which are similar in geographical, political or socio-economic aspects and enjoy certain proximity. The WTO's role is to provide the basis for legal framework and permit for RTAs. <br />
	<br />
	RTAs are WTO plus meaning a regional economic arrangement is expected to commit more. The commitment is for the intent of opening the market more for increasing trade volume through freer, broader, deeper and wider trade.</p>
<p>
	 </p>
<p>
	<strong>How is WTO treating RTAs? </strong><br />
	<br />
	There are already 400 RTAs that have come into being and there are more being developed. There are two dimensions and arguments to it. On a scholastic level, the argument is whether RTAs complement or contradict the WTO. The ones who advocate that RTAs complement the WTO say that regional economic arrangements help freer, wider and deeper trade. But the people believing in the philosophy of the other extreme say that RTAs are fragmenting global markets. However, broadly speaking, WTO has allowed regional economic arrangements under its legal frame and I believe the WTO has treated the RTAs in a positive way.</p>
<p>
	<br />
	<br />
	<strong>There are a host of RTAs such as SAFTA, BIMSTEC, ASEAN, NAFTA etc and an RTA is supposed to supersede WTO provisions. If WTO is to dominate all other agreements, what is its relevance at the end of the day? </strong><br />
	<br />
	<br />
	Let me first clarify that all RTAs are not effective, they are there as global ideas but not fully actualised. On a global level, WTO is supreme but it does not dominate other agreements by any means. RTAs do not have the mechanism for dispute settlements like the WTO does. The WTO is a mechanism which even drags a global power like the US to its tribunal and allows least developed countries (LDC) to have their say. Under WTO, the developing countries can also indulge in issue-based bargains with powerful countries which were not possible with RTAs without WTO's existence. <br />
	<br />
	If RTAs were to exist in all parts of the globe, the idea of regional economic arrangements will truly complement the WTO. Otherwise, the idea will not really hold much ground. The RTAs must be able to bring themselves into complete effect so that they can fulfill the ultimate aims of WTO rather than challenging its dominance.</p>
<p>
	<br />
	<strong><br />
	How do you view economic diplomacy in the context of enhanced trade relations between countries? </strong><br />
	<br />
	<br />
	Ever since the world came into being in its present unipolar form, there has been a change in the way diplomacy is being practiced. Today's power struggle is for trade and to become a winner in the âgain and loss scenario, which has resulted in a shift from conventional political diplomacy to economic diplomacy. This big transformation has brought about changes in the bureaucracy of many countries. In Nepalâ's context, we have been talking about economic diplomacy since the early 1990s but we have not been able to practice it at the real level. <br />
	<br />
	We do need political diplomacy with other countries, our immediate neighbour India for example, which is fundamental but the aim has to be for economic gains. In the present world order, we have to strive to gain by putting economic diplomacy into practice. The other countries in the region like Bangladesh and Sri Lanka have expanded their number of missions in different parts of the world exactly with this idea. <br />
	<br />
	They have been marching ahead with economic diplomacy by looking at the markets in different countries of the world. Even though we have the same agenda in Nepal, we lack a comprehensive outlook and have not been able to identify our potential markets worldwide. Accordingly, we could have expanded our missions whereas we are still stuck with the same missions that we had established in the 1950s and 1960s. <br />
	<br />
	We do not have a clear agenda even though of late, we have been able to identify countries where we could find a labour market. However, that's not sufficient because we need to tap opportunity and be able to pursue capital coordination. For this, we have to work in close coordination with ministries of economic content, the private sector and think tank institutions. India and China, our doorstep markets, are countries that are attractive for the entire world. On our part, we are leaving these arm-reach markets and looking elsewhere and therefore, ending up with virtually nothing. All the global powerhouses are targeting India and China for economic reasons and we should do the same. We should be able to shed the diplomatic legacy of the yore and start afresh.</p>
<p>
	<br />
	<strong><br />
	Why is the trade in SAARC region more oriented towards international trade rather than trading within the region itself? </strong><br />
	<br />
	<br />
	This is precisely the reason why we have not been able to gain from SAFTA. The idea that we had envisioned for the RTA a couple of decades ago has not materialised and that's why we see a country like India establishing relations with other RTAs, for example, <br />
	<br />
	ASEAN. The potential in SAARC region has not been able to take shape and India is not ready to bide time in this age of fast-paced globalisation. We do generate and agree on good ideas in this region time and again but fail to give them shape because of our many conflicts as there is a serious lack of trust among SAARC countries. Besides, we have adopted policies in the past not to bring our internal disputes to the table which is another deterrent.</p>
<p>
	<strong><br />
	<br />
	Is Nepal's bureaucratic level effort viable enough for trade enhancement without taking the private sector on board? </strong><br />
	<br />
	Trade enhancement is definitely not possible without the active participation of the private sector. The intensified level of interaction that should have been there between the private and the public sectors is seriously missing. Both the parties are responsible for this; they donate trust each other and often indulge in a blame game. We, the public sector, like to keep ourselves away from the private sector whereas we should be able to take them along. It is because we donate have a business friendly culture which has prevented us from partnering with the private sector in a substantial manner. <br />
	<br />
	On the other hand, the private sector has not been able to develop the appetite that is required to gain competitiveness. The private sector is still busy looking for quotas and concessional rates on tariff etc and create a playing field for itself. Besides, there are times when we expect the private sector to raise its voice or advice but they convey political messages instead of giving technical details or feedback. In the bargain, we miss their indepth expertise that we so desire. <br />
	<br />
	The private sector also lacks the preparedness that is required for public-private partnership (PPP). We do talk about PPP all the time, but it requires a certain level of discipline and pace which is definitely missing. Let me conclude by saying that we do have businessmen of high calibre in Nepal's private sector and one only hopes that the number of such businessmen is on the rise. <br />
	 </p>',
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			'description' => 'WTO is a broader frame which is the legal basis for global trade arrangements and provides framework for the rule-based trading system of which RTA is an option. RTA's jurisdiction is area specific and has the involvement of likeminded countries which are similar in geographical, political or socio-economic aspects and enjoy certain proximity. The WTO's role is to provide the basis for legal framework and permit for RTAs.',
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		'Article' => array(
			'id' => '530',
			'article_category_id' => '40',
			'title' => 'The Promises Of SAFTA Are Much Better',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="sridharkkhatri" border="1" height="477" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-III _dec2012.jpg" vspace="10" width="300" /> <br />
	<br />
	<br />
	<strong>Prof Sridhar K Khatri <br />
	Executive Director <br />
	South Asia Centre for Policy Studies (SACEPS) </strong><br />
	<br />
	<br />
	<br />
	<strong>The Promises of SAFTA are Much Better<br />
	</strong><br />
	<br />
	<strong>How do you look at the volume of regional trade in the South Asia? </strong><br />
	<br />
	Intra-regional trade between South Asia is very limited at this point of time. Despite the fact that SAARC has been in existence for the last 26 years, regional trade has not increased much. When SAARC started, it was around three to four per cent and today, it is still less than five per cent. The intra-regional volume of trade is something that has not increased for a variety of reasons. <br />
	<br />
	<br />
	<strong>What are the possible reasons for low trade in this region? </strong><br />
	<br />
	The truth is that SAARC as a regional organisation has not completely taken off. There are a lot of constraints that has contributed to this. There is asymmetry in sizes of countries involved in the region with India being the most dominant one. The second reason is that we also have conflict between India and Pakistan, which has in a way, obstructed the SAARC process. There have been opportunities at times when SAARC has shown promise. However, bilateral differences between India and Pakistan have held it back. We have had SAPTA (South Asian Preferential Trading Agreement) for a long time but that has not increased trade either because its structure was fundamentally limited in terms of offering opportunities to increase trade. That is something ASEAN used for a long time and did not have any significant impact. We made the same mistake in South Asia by going through preferential trading arrangement. SAFTA (South Asia Free Trade Agreement) was signed in 2004 but despite the agreement, it has not been implemented basically due to concerns between India and Pakistan. <br />
	<br />
	<strong><br />
	How do you view Pakistan granting MFN status to India in the context of intraregional trade? </strong><br />
	<br />
	The MFN status Pakistan has offered to India will change the nature of the game in South Asia provided there aren’t any other terrorist attacks on India or political impasses at certain points. I have been looking at South Asia for a long time now and my worry is that these hiccups tend to hold back the little progress that has been made. <br />
	<br />
	<strong><br />
	Why is the trade in this region more oriented towards international trade rather than trading within the region? </strong><br />
	<br />
	Trade beyond regions becomes more lucrative. For instance, India’s export to South Asia is around five per cent and the imports are less than three per cent. But its trade with South East Asia is nearly 25 per cent. Pakistan also has the same kind of figure because it is also looking at trade with South East Asia. Even Bangladesh’s largest trading partner right now is China and not India. Trade with European Union is also very substantial. Countries tend to export and have relations with regions where there is growth. However, if there is potential within South Asia, there will be investment and subsequently, trade. For that to happen, political barriers have to come down and their trust deficit problems have to be resolved. But again, there is no time frame for it because there are so many bilateral problems which countries need to overcome. And, in a way, South Asia also needs to be little more confident of the region by itself. There is a serious leadership deficit in South Asia where no country or leader has become an advocate of regional integration to help us overcome difficulties and ensure development. <br />
	<br />
	<br />
	<strong>How best can economic integration be used among SAARC countries to reduce poverty and move towards prosperity? </strong><br />
	<br />
	Integration in a way offers countries the chance to develop their economies in a very systematic manner. This means that if the countries are well developed and if they can progress by cooperating with each other, goods will be cheaper for the people to purchase. There is a programme in the SAARC process to eradicate poverty in the region and two commissions have already been formed on poverty eradication. These commissions have come up with significant measures and have talked about meeting the MDG (Millennium Development Goals). SAARC too has developed its own SAARC Development Goals where the focus has been on the people, however, SAARC has not been able to implement some of its programmes. <br />
	<br />
	<strong><br />
	How can regional connectivity be improved for better trade facilitation in the region? </strong><br />
	<br />
	There are significant measures that must be taken care of in terms of trade facilitation, implementing agreements on trade and reducing non tariff barriers (NTB). You can have an excellent agreement but if you have NTBs, it will make trade a difficult proposition. The possibility in South Asia is in infrastructure development which is very important. SAARC has already talked about connectivity in the region and has a SAARC Multimodal Transport Agreement in place. It has not moved very far but there are some positive signs already. In the just concluded summit in Maldives, an agreement on railways has been signed. There is also an agreement on movement of motorcars within South Asia which should have been signed at least a year ago. Movement of goods and people will be very important for the growth of the region. The trust deficit in South Asia has to be overcome to implement some of these programmes. <br />
	<br />
	<br />
	<strong>India is at the centre of regional trade among the SAARC nations. What roles, do you think, India is expected to play? </strong><br />
	<br />
	India has not only a prominent role but also a key role to play for the growth of SAARC and the benefit of the people in the region. Being a large country that is growing at an exponential rate economically, India can offer advantages to other member states of SAARC including Nepal. I do think that India is ready to move in this direction and we see signs of that but it wants to solve some of its bilateral problems with Pakistan first. I think SAFTA will take off now as Pakistan has promised MFN treatment to India. I believe that if there is substantial growth in trade between these two countries and within the SAARC members, India will be more forthcoming in the future. <br />
	<br />
	<strong><br />
	How do you rate the success of SAFTA and SAPTA? </strong><br />
	<br />
	SAPTA was pretty much an abysmal exercise that did not go far ahead. If we had looked at the ASEAN experience, we should not even have gone through the preferential trading arrangement. The promises of SAFTA are much better but the important element is to put it into practice. We had an exercise many years ago in Nepal and worked together with intellectuals, politicians and businessmen to see what they thought of free trade and if it stands to benefit Nepal. We concluded SAFTA will not benefit Nepal in the short run as free trade usually benefits the larger countries more. For a least developed landlocked country like Nepal, it is much harder to derive benefits. However, Nepal can benefit in the long run if we can have link trade with investment and other related benefits. If trade infrastructure can be developed, Nepal has the opportunity to benefit in the long run. <br />
	<br />
	<br />
	<strong>Do you see the possibility of India cannibalising its neighbours? </strong><br />
	<br />
	For India to grow, it does not need to ‘cannibalise’ small countries. India already has the potential to grow and is a major player in the world today. We have seen South East Asia and East Asia grow very fast. The next phase could be South Asia that can grow at a promising rate. India needs to be more generous towards smaller countries, offer opportunities and feel confident that the growth of smaller neighbours can be beneficial for India. I think that change in thinking is happening in India and will continue to happen in the years to come. <br />
	<br />
	<strong><br />
	What are the differences in provisions of WTO and RTA? How does it affect intra-regional trade? </strong><br />
	<br />
	WTO recognises regional trade agreements (RTA) and encourages them in a way to promote growth not only within countries but also in terms of facilitating trade among the regions in the world. So, it is compatible framework within the WTO framework. It does not obstruct RTAs and vice versa. In the last 15-20 years, a number of regional organisations have evolved at a phenomenal rate. We have seen the growth in Latin America, Africa and even in Asia. But what types of regional organisations have happened needs to be clearly looked at. Nepal is part of both SAARC and BIMSTEC where some of the activities overlap one another.</p>',
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			'description' => 'The truth is that SAARC as a regional organisation has not completely taken off. There are a lot of constraints that has contributed to this. There is asymmetry in sizes of countries involved in the region with India being the most dominant one. The second reason is that we also have conflict between India and Pakistan, which has in a way, obstructed the SAARC process.',
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			'title' => 'Economic Diplomacy Is Getting Sidelined By Political Diplomacy In The Regional',
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			'content' => '<p>
	<span style="font-weight: bold;"><img alt="Pradeep Kumar Shrestha" border="1" height="261" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-II_dec2012.jpg" vspace="10" width="400" /><br />
	</span></p>
<p>
	<strong><br />
	Pradeep Kumar Shrestha <br />
	Vice President <br />
	SAARC Chamber of Commerce and Industry </strong><br />
	<br />
	<strong><br />
	Economic Diplomacy is getting Sidelined by Political Diplomacy in the Regional <br />
	</strong><br />
	<strong><br />
	How do you look at the regional trade in South Asia region?</strong><br />
	<br />
	In the context of South Asian trade, trade movement is very low despite it being home to one fifth of the world's population. Intra-regional trade is less than five per cent which is something the business community of the region must take into account. Other regional bodies like EU and NAFTA have more than 50 per cent of the trade within their respective regions. Even though the countries in the SAARC region claim to be close, there exist a lot of hiccups. The mindset and attitude of the politicians and bureaucrats are not to the level expected in the 21st century. Besides political reasons, infrastructure connectivity, high cost of business, bureaucratic hassles plague the prospects of intra-regional trade. <br />
	<br />
	<strong><br />
	Do you see the possibility of India cannibalising all its neighbours? </strong><br />
	<br />
	India is growing at a fast pace. There is a saying, ˜If you have to grow, you cannot grow alone. You have to grow with the neighbours India is a big trading partner for all the countries in the SAARC region. India is big in each and every aspect compared to other SAARC countries. Considering the present scenario, if India really wants to be a superpower, it has to take its neighbouring countries into confidence. <br />
	<br />
	<br />
	<strong>Why has SAFTA not been able to gain momentum since its inception in 2004? </strong><br />
	<br />
	It is raised in every forum each year but the implementation aspect has been very slow. This is more due to political mindset and crisis of confidence than anything else. However, the fact is that we have to grow together and be interdependent rather than being dependent. SAFTA should have moved much ahead by now. Within the SAARC region, we have to look at increasing the trade volume. The attitude of building confidence, helping and sharing with each other is the way to go about it. <br />
	<br />
	<strong><br />
	Regional trade is being prioritised in other trade blocs such as ASEAN, BIMSTEC and EU. Why has the same not received equal priority within the SAARC trade bloc? </strong><br />
	<br />
	This is very unfortunate. The real fact of trade not really taking off in the region is because the two big countries- India and Pakistan having their own problems to deal with. These two countries should sit together and help us have a prospering regional bloc like EU, ASEAN, NAFTA etc. Unfortunately, what is happening is that we are talking of a region but in terms of sub-regions like Eastern India-Bangladesh, Nepal-Bhutan or India- Pakistan. Each country has its own strength so we have to be able to nurture and benefit from areas of comparative advantages. We, the business community, are seriously advocating for it but without the two big countries getting together and understanding the benefits for the region, the SAARC would not move the way we dream of. <br />
	<br />
	<br />
	<strong>By this, do you mean, economic and trade diplomacy is seriously missing among SAARC member countries? </strong><br />
	<br />
	I think economic diplomacy is getting sidelined and political diplomacy is taking over. However, it is a fact that without political understanding, the economy cannot take off. There could be other ways of bringing things closer like people to people contact. We have to understand each other and feel that we are part of the same region and accordingly, we can synergise the strength. But that is not happening and every country wants to move ahead on an individual level. <br />
	<br />
	<br />
	<strong>Why is the trade in this region more oriented towards international trade rather than trading within the region? </strong><br />
	<br />
	Most of the countries in the region are import based economies though we do have exportable items like garments, carpets and others. Nepal, India, Sri Lanka and Pakistan export same kind of products and end up competing in the same market. The level of purchasing power in the region compared to other regions of the world is less even though the middle class is coming up very fast. When we want to do something, we always look at the west. In regional trade, the cost of connectivity and transportation is very high. Bureaucratic hassles like procedural delays and documentations etc also play their respective roles. All these hassles are so grave that we prefer to go for countries outside the region without realising the availability and quality of products available within the region. We, the business community, have to change that and identify our areas, strengths, products, competitive advantages etc. There must be a feeling of ‘together we grow’ to begin with. <br />
	<br />
	<br />
	<strong>In the context of intra-regional trade, how do you view Pakistan granting MFN status to India? </strong><br />
	<br />
	This is a very positive development for both the countries. To tell you the truth, SAARC has not been able to move ahead because of these two big countries not able to understand each other. The MFN status will fuel reciprocity and can move on to other countries as well. For example, China and Taiwan had similar political problems once, however, their relations have improved considerably in the last few years. If political conditions and hiccups can be taken care of, investment and trade will get a boost. At the same time, other neighbouring countries too will be benefitted when relations between these two countries get better. <br />
	<br />
	<br />
	<strong>Can South Asia region prove to be a substantially big market to consume the production generated in the region and become self suffi cient on trade? </strong><br />
	<br />
	Yes, very much so. A big market is lying out there because of the size of the population. The size of human resources, natural resources, potentials and eagerness of the people doing business in the region can certainly make this region self sufficient. This region has everything but still we have not been able to do anything remarkable. In this context, if the countries in this region join hands with each other without any biased sentiment and mentality, it can definitely prosper. <br />
	<br />
	<br />
	<strong>What are the activities of SAARC Chamber of Commerce and Industry (SCCI)? </strong><br />
	<br />
	Since its inception, the business community has wished to see that business related problems are addressed and economic agendas are taken to a much bigger level. Unfortunately, that has not happened and the community is not very happy about it. We have not been invited to the summits in Male and Thimpu despite being an important part of the SAARC. Though, of course, we understand it was not because of their unwillingness to invite us but it was because of their logistics problems in Male and Thimpu. As for our activities, we have tried to increase the number of SAARC sticker visa to improve people to people contact in the region. We have asked for 200 to 500 visas for each country. If a businessman wants to travel, he cannot wait for a month to get a visa. We are advocating that the paper work has to be reduced and the existing bureaucracy hassles should be nominal. Every country has its own area of strength such as hydroelectricity, agriculture or tourism. There are a number of councils for such sectors under the SAARC CCI, chaired by a specific country for each council. <br />
	<br />
	<br />
	<strong>Have there been enough researches conducted on regional trading? What is SAARC CCI doing towards it? </strong><br />
	<br />
	Research and Development is talked about every time especially in the context of South Asia. I believe that more than 350 scholars in different agencies like World Bank, ADB, and UNCTAD are studying and seeing why South Asia has not been able to grow despite its potentials. Even in our chamber, we try to find out facts and figures as to why things are not happening in the region. I believe such findings will lead us towards making good decisions. <br />
	<br />
	<br />
	<strong>Has it been able to go beyond the concept of bilateral chamber in the true sense of regional level trade cooperation? </strong><br />
	<br />
	We are talking about sub-regional level which is more than bilateral. We understand that because of proximity reasons, Nepal being linked to Pakistan, Sri Lanka or Maldives is not possible. But linking Nepal with Bangladesh, Bhutan, India or BIMSTEC is a different phenomenon altogether. We are only talking about the eastern part of South Asia, for example, Bangladesh, Nepal and Bhutan. Efforts toward regional level trade cooperation is certainly moving but at a very slow pace. <br />
	 </p>',
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			'article_category_id' => '40',
			'title' => 'SAARC Countries Should Work Towards Regional Cooperation To Achieve Growth',
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			'content' => '<p>
	<img alt="Thosapala Hewage" border="1" height="251" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory_dec2011.jpg" vspace="10" width="400" /><br />
	<br />
	<strong>Thosapala Hawaga <br />
	Ambassador <br />
	Embassy of Sri Lanka in Nepal</strong><br />
	<br />
	<br />
	<strong><br />
	SAARC Countries Should Work Towards Regional Cooperation to Achieve Growth</strong><br />
	<br />
	<strong><br />
	How do you look at the regional trade in the South Asia region?</strong><br />
	<br />
	The regional trade in South Asia seems to be improving over the years but it is not up to the expectation. Compared to the past, the South Asian economy is more open today. The tariff rates have come down from 80-90 per cent in the 1990s to 20-25 per cent today and exports and imports together are equivalent to about 20 per cent of the regional GDP. SAFTA was expected to include all products, manufacturers and commodities. It is commonly accepted that negotiations under SAPTA will not be very effective in terms of inventing intra-regional trade in SAARC which is unfortunate. There are various possibilities of further improving regional trade within South Asia if countries can overcome the existing barriers. Remedies like substantial tariff cuts, removal of non tariff barriers, adequate trade related capacity building, and connectivity between the countries etc have to be implemented. The regional trade arrangements are in an interim state towards more efficient levels of globalisation. <br />
	<br />
	<br />
	<strong>Is there a possibility of India cannibalising all its neighbours? </strong></p>
<p>
	<br />
	It is difficult to say that India is cannibalising its neighbours. But, with the size of India and its economy, you can’t compare India with any of its neighbours. It is a vast and fast developing country and also the largest country in the region. Their contribution in terms of trade, tourism and economic growth is very high. It is extremely difficult for other countries to talk about balance of trade with India. However, India is having enough problems itself that needs to be resolved first such as regional disparity, low human development index (HDI), poor connectivity etc. India is by far the largest economy in the region and the second largest fast growing economy in the world. South Asia region needs India for its economic prosperity as much as India needs the region for its continuing prosperity. <br />
	<br />
	<br />
	<strong>How do you view trade diplomacy in the context of enhanced regional trade among SAARC nations? </strong><br />
	<br />
	When people talk about diplomacy, they talk about trade diplomacy because that is especially needed by countries in the region. Trade diplomacy in the context of regional trade among SAARC nation is positive and can be further improved. The member countries of the SAARC, I believe, should work towards regional cooperation in order to achieve growth. When there is regional growth, regional trade will definitely go up. If the member countries can develop a regional cooperation and agree upon certain things, a particular country can then focus on its available resources within its territory. <br />
	<br />
	<br />
	<strong>India, being the centre of regional trade among the SAARC nations, could have played a more vital role in making the SAARC trade bloc effective. What are the reasons for India not being able to do so? </strong><br />
	<br />
	As far as I know, India, being the centre of regional trade among the SAARC nations, is playing a vital role in making the SAARC trade bloc effective. However, there are issues among the SAARC nations that need to be resolved in order to make it more effective. India too has its own problems that it needs to resolve. But I believe India can play a major role with regard to development of regional trade in the region. <br />
	<br />
	<strong><br />
	Why is the trade in this region more oriented towards international market than trading within the region? </strong><br />
	<br />
	The trade in the SAARC region is more oriented towards international market probably due to the trade relations that have been developed with countries outside the region over a long period of time. There is also this attraction to trade with countries outside the region because of the high market price for products in the international market. The international destinations have far more secure markets and offer good prices and hard currency. I do agree that trading within the region is not up to the expectations, however, I believe this can be resolved through agencies like SAARC. Actually, SAARC can play a proactive role in the development of trade within the region. They are doing it already but my feeling is that they can do more. Regional cooperation and agreements like SAFTA, SAPTA etc need to be beneficial to all the countries. In order to do that, we have to identify proper people, train them and realise their services, so that we can request them to negotiate for the benefit of their respective countries. <br />
	<br />
	<br />
	<strong>Do you think that tariff and non tariff barriers contribute towards low intra-regional trade? </strong><br />
	<br />
	When the tariff is high, the prices of the goods also go up. Therefore, the countries must look at removing non tariff barriers. We can come up with some kind of consensus within the region so that tariff and non tariff barriers are removed. This, of course, needs to be done in consultation with the member countries of the region. <br />
	<br />
	<br />
	<strong>Can South Asia region prove to be a substantially big market to consume the production generated in the region and become self suffi cient on trade? </strong><br />
	<br />
	I think the South Asian region produces various products that are required for the region and it can certainly prove to be a market big enough to consume them. But the point is that one country has to produce products which the other country doesn’t produce so that you will have an assured market. Basically, what I can see is that most countries in the region produce similar goods and that’s where the problem lies. For example, Sri Lanka produces garments and at the same time, countries such as India, Bangladesh, Nepal and Pakistan also produce garments. Invariably, they have to go outside the region in search of a market for the same product. Hence, you have to have a common agreement with the countries in the region to address this issue. But this is not an easy task unless the countries in the region are committed to do so because each country is concerned about its own benefits. You can have a win-win situation only if there is a give and take policy in place. <br />
	<br />
	<br />
	<strong>What are the problems in expanding regional trade? What are the potentials of trade development? </strong><br />
	<br />
	Trade barriers such as high tariff, double taxation, lack of connectivity among the countries are some of the problems apart from what we have already discussed earlier. The countries have to look into their infrastructure and ways of connectivity in order to increase regional trade. The size of the economy is another issue that you need to look into, for example, India is a huge economy when compared to its neighbours.<br />
	<br />
	There is also the issue of underutilisation of resources which is a cause of concern. If we can resolve these issues, we will certainly be able to expand our regional trade. <br />
	<br />
	The potential for trade development is immense because all these challenges can be turned into opportunities. But we must make sure that we look at tapping the untapped resources. The barriers too need to be taken care of. I believe we will be able to prosper if we think of the entire region rather than only be bothered about our respective countries. <br />
	<br />
	<br />
	<strong>How would Sri Lanka like to represent itself as a brand in the region? What are the prospects of trade for your indigenous products in the region so that you donâte have to look beyond? <br />
	</strong><br />
	If you look at certain products like garments, gems and jewellery and herbal products, we do have the advantages. The market for these products is within the region as well as outside of it. Some of the products have already been accepted and valued by the region. If we produce in accordance with the region’s requirement, we can definitely carve a niche for ourselves. For example, we can design gems and jewellery in a way that caters to the tastes of people of other countries. I am positive that Sri Lanka can definitely expand its trade in the region as time passes.</p>
<p>
	 </p>',
			'published' => true,
			'created' => '2012-01-27',
			'modified' => '2012-08-23',
			'keywords' => '',
			'description' => 'The regional trade in South Asia seems to be improving over the years but it is not up to the expectation. Compared to the past, the South Asian economy is more open today. The tariff rates have come down from 80-90 per cent in the 1990s to 20-25 per cent today and exports and imports together are equivalent to about 20 per cent of the regional GDP. SAFTA was expected to include all products, manufacturers and commodities.',
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	(int) 11 => array(
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			'id' => '527',
			'article_category_id' => '40',
			'title' => 'Trade Of Hopes In South Asia',
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			'summary' => null,
			'content' => '<p>
	<img alt="trade hopes" height="274" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/tradeofhopes.jpg" width="300" /><br />
	<br />
	<br />
	<strong>Trade of Hopes in South Asia <br />
	<br />
	<br />
	New Business Age Bureau </strong><br />
	<br />
	<br />
	The 17th Summit of South Asian Association for Regional Cooperation (SAARC) held on 10-11 November this year adopted the Addu Declaration which lays emphasis on effective implementation of the SAFTA (South Asian Free Trade Area) accord among its member states. The heads of the eight member countries&nbsp; Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka at Addu city in Maldives discussed regional issues in an effort to take SAFTA forward. I think there is a realization now among the countries in the region to move SAARC into a more integrated regional cooperation model, says Jaideep Mazumdar, Minister and Deputy Chief of Mission at the Embassy of India in Kathmandu. <br />
	<br />
	<br />
	The declaration also includes measures to be taken to promote free flow of capital and investment and improve connectivity within the region. This year's Summit has decided to consider reducing non-tariff barriers (NTBs) and ad valorem (Latin for according to value) duties to promote freer trade. The SAFTA Ministerial Council has been directed to work on reducing sensitive lists, early resolution of NTBs and expediting the process of harmonising standards and customs procedures. Economic cooperation within the region is often viewed as a key tool for deeper integration within the region.] <br />
	<br />
	<br />
	Having recognised this, SAARC had initiated the SAARC Preferential Trading Agreement (SAPTA) as early as 1993, which later evolved into the SAFTA in 2004 and came into effect in 2006. there has been an increase in SAARC's world trade too. Hence, the share of intraregional trade has remained constant. In comparison, intra-regional trade under the Association of South East Asian Nations (ASEAN) is 32 percent, while it is 52 percent in the EU bloc and 68 percent in the USA and Canadian bloc. These trade blocs have also proved to be a tool for development for the participating countries within their respective regions. <br />
	<br />
	<br />
	<strong>Intra SAARC Trade </strong><br />
	<br />
	<br />
	While there have been several initiatives to promote trade among the region, a host of tariff and NTBs maintained by the member countries, the exhaustive negative list and the smallish trade basket have curtailed the growth of trade and investments in South Asia for long. According to an estimate, intraregional trade among the SAARC member nations (excluding Afghanistan which ratified the SAFTA protocol only in May this year) stood at $ 14.35 billion in 2010-11, an increase of 43.4 per cent vis-a-vis the same period in the previous fiscal. <br />
	<br />
	<br />
	The figure is approximately 5 percent of their total overseas trade in a year which is one of the lowest intra-regional trade volumes for any particular trade bloc. Ratnakar Adhikari, General Secretary of South Asia Watch on Trade, Economics and Environment (SAWTEE) says, “Intra SAARC trade has certainly increased over the years, however, <br />
	<br />
	<br />
	<strong>Unfulfilled Potential <br />
	</strong><br />
	<br />
	Staying true to the theme of Building Bridges, this year's SAARC Summit focused on connectivity by going ahead on a regional railways agreement and a motor vehicle pact besides inking a series of pacts on regional cooperation. Despite its high population and common culture, South Asia, is one of the most poorly connected regions in the world. While better connectivity promises to promote trade within the region, stronger trade relations can go a long way in promoting food security, poverty alleviation and improving socio-economic growth of the South Asian population. Prof Sridhar K Khatri, Executive Director of South Asia Centre for Policy Studies (SACEPS) says, The promises of SAFTA are much better but the important element is to put it into practice.<br />
	<br />
	<br />
	The share of South Asia in world economy is less than 2 percent with all eight nations of the region collectively contributing only 1.7 percent towards global trade. A number of regional trade issues largely remain unaddressed among the SAARC nations which are yet to tap the trade potential because of various problems. Different trade barriers like tariff, non-tariff and para-tariff, visa problems, political barriers, bilateral transit issues, negative list issues and testing issues are apparently acting as trade deterrents among the SAARC countries. Pradeep Kumar Shrestha, Vice President, SAARC Chamber of Commerce and Industry agrees, “Besides political reasons, infrastructure connectivity, high cost of business and bureaucratic hassles plague the prospects of intra-regional trade in South Asia.” <br />
	<br />
	<br />
	According to a paper published by the Reserve Bank of India (RBI) assessing intraregional trade in ten regional blocs, intraregional trade in SAARC was the lowest at 4.8 percent in 2008. The RBI report quoted, The reasons for the low level of trade include protectionist trade regimes, which discriminated against trade among larger neighbours; continued conflict between India and Pakistan; and transport and trade facilitation constraints.” Thick ice of contentious competition between regional peers has always been an overriding problem in the SAARC region. <br />
	<br />
	<strong><br />
	The Bottlenecks </strong><br />
	<br />
	<br />
	A lack of trust and political goodwill, and underperformance in leadership by the dominant economies has been mainly responsible for not turning SAARC into a successful regional trade bloc. For example, there is a lack of trust on several issues among nations such as India, Pakistan and Bangladesh. Mazumdar raises a case in point, “Historically, there has been a problem between India and Pakistan that was a hindrance for intra SAARC trade.<br />
	<br />
	<br />
	As a result, the major players have not participated actively in making SAARC an effective trade bloc. For too long, member nations of the SAARC have deprived themselves of the benefits of regional economic integration. The region homes one fourth of the world's population and possesses unlimited potential but has stayed least integrated. <br />
	<br />
	<br />
	The region is home to two-fifths of the world's poor and accounts for only 3 per cent of global output. Intra-regional trade has stagnated at around 5 per cent of its total trade for some time now compared to around 20 per cent in Latin America. Even Sub-Saharan Africa, with poor transport and telecommunication infrastructure, scores over South Asia, with over 10 per cent of its trade being intra-regional. The SAARC members have retained a plethora of tariff and NTBs, which greatly inhibits trade and investments in the region. With a large list of negative items, the trade basket remains very narrow, with little value addition. Thosapala HÃwag, Sri Lanka's Ambassador to Nepal recommends, We should be able to come up with some kind of consensus within the region so that tariff and non-tariff barriers are removed.<br />
	<br />
	<br />
	The major cross-border structural rigidities include behind-the-border barriers in customs procedures, poor transport links, weak networking of private sectors, and administrative issues such as visas. Foreign direct investment (FDI) too is minimal, due to regulatory issues and a non-facilitative business environment. We do generate and agree on good ideas in this region time and again but fail to give them shape because of our many conflicts as there is a serious lack of trust among SAARC countries,says Chandra Kumar Ghimire, Joint Secretary at the Ministry of Commerce and Supplies (now Consulate General of Nepal to Kolkata). <br />
	<br />
	<br />
	To make the SAARC regional trade bloc effective, the progress in duty-concession by the nations is not adequate. The participating countries were supposed to reduce the number of products from the negative list year-on-year for nations to enjoy a zero-duty facility under the SAARC umbrella after a certain period. But the progress in this regard has not been on expected grounds. Business leaders representing different trade bodies among the SAARC nations have been urging their governments to further liberalise their respective economies to help augment intraregional trade, consequently effecting the region's development. There is a serious leadership deficit in South Asia where no country or leader has become an advocate of regional integration to help us overcome difficulties and ensure development, Prof Khatri observes. <br />
	<br />
	<br />
	India, by virtue of being the largest economy in the region and its geographic position, is viewed as the member that bears additional responsibility towards intraregional economic integration. While India's trade with South Asian countries has increased considerably over the years, it is still below the potential trade levels. India, a connecting land mass, has a special responsibility in increasing intra-regional economic integration and facilitating access to its large markets for SAARC members. The idea that we had envisioned for SAFTA around a couple of decades ago has not materialised and that’s why we see a country like India establishing relations with other RTAs, for example, ASEAN,” Ghimire laments. <br />
	<br />
	<br />
	Its above-average growth, expanding middle-class population, and demand for global goods can prove to be an engine of growth for the region. India's trade with South Asian countries has increased encouragingly, in the last half-a-decade or so, but much trade is below the official radar. Further, India's trade with countries such as Nepal, Bangladesh, Sri Lanka and Afghanistan remains heavily skewed in its own favour. The services trade further adds to the trade imbalance, leading to concerns among other South Asian countries about trade sustainability. <br />
	<br />
	<br />
	<strong>The Way Forward </strong><br />
	<br />
	<br />
	The SAARC region has an immense potential for using economic integration to reduce poverty and move towards prosperity. Three areas offer large potential for economic cooperation the services trade, energy cooperation and logistical connectivity. The development of logistical hubs that facilitate the flow of trade across the region can greatly reduce the costs of doing business. These logistical hubs can help connect critical regional corridors, especially with countries having no common borders. The countries in the region will have to look into their infrastructure and ways of connectivity in order to increase regional trade, says HÃwag.</p>
<p>
	 </p>
<p>
	Tourism, a major growth opportunity for countries like Afghanistan and Nepal, remains constrained by security problems. Allowing intra-regional trade in services can enable South-Asian economies to become more globally competitive. Energy and electricity cooperation are non-traditional areas of trade relationship development. For example, Bhutan has managed to balance its trade with India with large exports of hydroelectric power, and similar potential exists for Bangladesh and Nepal. <br />
	<br />
	<br />
	An integration of electricity grids across South Asia can reduce power costs and enhance manufacturing competitiveness for all members. Huge hydro-electric potential exists in Nepal, Bhutan, Afghanistan and India, which could be tapped for intra-regional power trade. Each country has its own strength so we have to be able to nurture and benefit from areas of comparative advantages,feels Shrestha. Just days ahead of the SAARC Summit in Maldives, Pakistanâ's initiative to grant Most Favoured Nation (MFN) status to India was considered a major breakthrough. As far as trade goes, the move promises to help the economies of both the countries over a longer period of time. <br />
	<br />
	<br />
	Experts and analysts observe the major initiative can also prove to be an important step to help stabilise the region, struggling to combat poverty and achieve economic reliability in the wake of US and Eurozone debt crises. It would also pave the way for economic integration of SAARC countries and the prospects of the region thriving seem brighter than ever before. At the Maldives Summit, Indian Prime Minister Dr Manmohan Singh announced Indiaâ's decision to slash the sensitive list for least developed countries within SAFTA, reducing it from 480 tariff lines to just 25.</p>
<p>
	 </p>
<p>
	India has stated that zero basic customs duty access would be given for all the items removed, with immediate effect. There should be an attempt to create an incentive for the partner countries in the region to be able to export to a country like India,” Adhikari recommends. As things stand, SAARC as a regional bloc leaves a lot to be desired. However, SAARC has a good trade potential as the economies of a number of SAARC nations are growing fast, observers opine. The countries seem to be on the path towards eliminating tariff barriers and reducing NTBs against each other. It's time for the South Asian countries to think collectively in order to cash in the opportunity of emerging as a regional force to reckon with. <br />
	 </p>',
			'published' => true,
			'created' => '2012-01-27',
			'modified' => '2012-08-23',
			'keywords' => '',
			'description' => 'The 17th Summit of South Asian Association for Regional Cooperation (SAARC) held on 10-11 November this year adopted the Addu Declaration which lays emphasis on effective implementation of the SAFTA (South Asian Free Trade Area) accord among its member states. The heads of the eight member countries  Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka at Addu city in Maldives discussed regional issues in an effort to take SAFTA forward.',
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	(int) 12 => array(
		'Article' => array(
			'id' => '526',
			'article_category_id' => '48',
			'title' => 'See The Sea Change',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="" border="1" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/madanlamsal.jpg" style="width: 103px; height: 127px;" vspace="10" /><br />
	<strong>By Madan Lamsal <br />
	</strong><br />
	<br />
	It is hard to believe that the times have changed, so fast. Anywhere you may go, you are sure to find that things have really changed. <br />
	<br />
	<br />
	In the past, the industrialists used to run the hotels, factories or companies. But at present it is the trade unions that do that job. In the past the businessmen had lot of money, today all the money is either with the politicians and bureaucrats or dons. In the past it was License Raj, today it is Goondaraj, which is claimed to be the Nepali version of free market economy. Therefore, in the past one got the license after the officers felt the criteria were met.</p>
<p>
	 </p>
<p>
	<img alt="" height="249" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/laugingmatter.jpg" width="400" /><br />
	<br />
	In the past, the job of the police was to prevent the thieves from stealing or the robbers from looting those connected to Narayanhity Durbar, now their job is at jeopardy if the let-loose bandits connected to the Durbars at Paris Danda, Balkhu and Sanepa is even suspected by the police. These days people feel comfortable to see the bandits to whom they pay weekly charge called hafta. Rather they disdain the appearance of politicians who nowadays enjoy the larger chunk of the same hafta. <br />
	<br />
	<br />
	The public corporations used to be rich by earning handsome profit. Now the affluence has shifted to their employees and politicians and the corporations are in ramshackle. In those old good days, sick people used to get good after visiting a doctor. But today, even a healthy person becomes sick as soon as he/she sees the one. There was a time when fat man in the street generally meant a businessman or a rich fellow. Businessmen used to run or morning walk to burn their fat. <br />
	<br />
	<br />
	Today, all their fat is taken away some by the banks, some by the politicians and some by the extortionist Goondas. But now, they who are in trouble don't need to panic thinking about the tricks of suicide. It is just that they need to come out of building home or office, a shooter might be standing right at the doorstep to facilitate his journey to heaven. Originally, educational institutions were means for social service and were opened to educate and inculcate moral values and culture in the heads of the students. Today schools and colleges are opened solely for profit. Students too, used to attend the classes. <br />
	<br />
	<br />
	Their objectives these days is to be in demonstrations and at the service of political leaders if they are in the government colleges, or for dating if they are from five-star private colleges. Even the fashion has gone a sea change. Those were days when the girls had long hairs and wore the earrings. Today it is just the opposite - the boys have taken up the girls fashion and vice-versa. Nowadays men have started to marry men and women have started to marry women. Dating spots too have changed from the zoos and parks to the shopping malls or department stores. <br />
	<br />
	<br />
	These are only a few instances of a massive changes that are going around us. But it is the media that has failed to embrace the fast pace of changes. Like in the past most media enjoy portraying good to a political patron regardless of how bad he could be. <br />
	<br />
	<br />
	So, is not it the time to change for media too? <br />
	 </p>',
			'published' => true,
			'created' => '2012-01-21',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'It is hard to believe that the times have changed, so fast. Anywhere you may go, you are sure to find that things have really changed.',
			'sortorder' => '430',
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	(int) 13 => array(
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			'id' => '525',
			'article_category_id' => '46',
			'title' => 'Sunil Kaushal',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><strong><br />
	</strong></span></p>
<p>
	<span style="font-size:14px;"><strong>We Are Focused On The Basics Of Banking<br />
	</strong></span></p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img alt="" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview(5).jpg" /><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>Sunil Kaushal</strong> is the newly appointed Chairman of Standard Chartered Bank Nepal Limited. Kaushal is likely to assume a senior role in the South Asia region, the announcement of which is likely to happen soon. He is currently the President and CEO of Standard Chartered Bank (Taiwan) Limited. He has over 23 years of banking experience and held several senior roles with the bank across different markets including Global Head SME Banking and New Ventures in Singapore. Prior to joining Standard Chartered Bank, he had also worked for Bank of America and HDFC Bank. In an interview with Pinaki Roy of New Business Age, Kaushal shared his views on the global banking scenario and Standard Chartered Bank's presence in the key world markets. Excerpts: <br />
	<br />
	<br />
	<strong>You have been appointed the new Chairman of Standard Chartered Bank in Nepal. What kind of vision do you have in mind for Standard Chartered Bank's operations here in Nepal? <br />
	</strong><br />
	<br />
	First of all, I think you would appreciate that we have created a very solid platform in the last 25 years in Nepal. At our AGM held recently, we declared a solid set of results given the tough market environment that prevails. The vision is to build on a strong platform that we have got here. We are very well positioned for a balance across wholesale as well as consumer banking, in the years to come. <br />
	<br />
	<br />
	<strong>You have been at the helm of affairs in Taiwan for quite some time now. Could you highlight some interesting events during your tenure while heading Taiwan operations? </strong><br />
	<br />
	<br />
	I have been fortunate enough to have worked at many locations outside my home country and Taiwan has been one of the overseas postings for me. Taiwan was particularly interesting for the bank because we had three acquisitions there. What was also quite interesting was the acquisition of a bank Hsinchu International Bank that was much larger than ours. The other two were Asia Trust Bank (for licensing) and American Express Bank (global acquisition). It was about assimilating the culture putting the three acquisitions together, integrating them and then building on the platform. The results of Taiwan have been pretty strong. <br />
	<br />
	<br />
	<strong>How has Standard Chartered differentiated itself as a bank when compared to some other global banking giants in terms of performance and branding? </strong><br />
	<br />
	<br />
	In terms of performance, we have delivered time and again as well as enjoyed great ratings upgrade for as long as one can remember. If you look at our share prices, we are one of the few banks which trade at premium to book value. We are present in the right markets Africa, <br />
	<br />
	Asia and the Middle East which stayed relatively better even during the financial crisis. And when the recovery happened on an absolute basis, these markets did fantastically well. We have a long history in these markets around 150 years presence in most of them so we have the depth and breadth of relationships in these markets. <br />
	<br />
	<br />
	Our strategy has been very clear in terms of focusing on these markets and relying on the basics of banking to deliver our performance. We have been there for our customers by being open for business and that is a very big thing. It is as big today at a time when big institutions globally are undergoing stress, talking about cutting headcount and reducing presence. On the contrary, we are still very much in a growth mode so we stand in a unique and differentiated position. We were the only international bank which consistently delivered record profits even during the financial crisis whereas most banks were struggling to break even. <br />
	<br />
	<br />
	Standard Chartered brand has been created over a period of time and we owe it to the management teams in different markets for taking the right decisions with the depth of the local knowledge that they have. The trust that the bank has created over time is especially evident during financial crises when we always see a flight to quality in terms of the customer deposits coming to us. We have proven that people feel secure while trusting their money with us. The best part is that we don't rest on our laurels and continuously try to keep ahead of the market. These are challenging times globally but we are very well positioned and quite differentiated from the competition. <br />
	<br />
	<strong><br />
	Despite the global economic crisis, Standard Chartered Bank figures among the largest profit earning international banks. How do you view this success? </strong><br />
	<br />
	<br />
	It is about being distinctive in our strategy which has resulted in our differentiated financial performance. In fact, we have delivered eight straight years of record profits, and are the only international bank to have received a ratings upgrade by all the three global rating agencies since the start of the financial crisis. Our performance, as you mentioned, has been very strong in the closing statement that we came out with recently which reiterates our differentiated position further. <br />
	<br />
	<br />
	Among the reasons for this is that we are focused on the basics of banking having a strong capital base, focusing on our clients and customers, having a strong balance sheet in terms of liquidity and being open for business. Besides, we are present in the right markets Asia, Africa and Middle East which are actually experiencing good growth as compared to the west which is facing challenges that all of us are aware of. <br />
	<br />
	<strong><br />
	Of late, the financial world is again embroiled in a crisis of sorts, like the Eurozone debt crisis. How do you analyse this situation and what kind of impact will this have on the banking scenario across different markets? </strong><br />
	<br />
	<br />
	In terms of global impact, we have all been hearing about banks wanting to require potential recapitalisation. The impact is applicable across all markets as some of the European banks pulled back because they had to reduce their risk related assets. These banks had to reduce their exposure so that the capital comes up to the level of 9 per cent that EU has mandated by the middle of next year. It's very difficult for them to go out and raise capital at this price when they are not into utilizing their earnings. <br />
	<br />
	<br />
	There is clearly a stress on liquidity for certain banks because of the fear of the exposure that they have to the European markets. Fortunately, for a bank such as ours which has no exposure to the distressed markets in Europe, it creates opportunities for us given the funding, strong balance sheets and capital position that we have. We are looking at these opportunities in different markets and monitoring them quite closely. <br />
	<strong><br />
	<br />
	Standard Chartered, as I understand, has always propagated organic growth. Do you think there will ever be a shift in this line of thought and probably the bank could look at the issue of mergers and acquisitions more favourably in the foreseeable future? <br />
	</strong><br />
	<br />
	If you look at the last decade or so, our focus is absolutely on organic growth but we have local opportunities which are inorganic as they presented themselves. Therefore, more than being a matter of choice, it is about having the right blend. Though we are focused on organic growth as a bank, we will surely consider if a right opportunity comes up. <br />
	<br />
	<br />
	<strong>Tell us about Standard Chartered Bank's India and South Asia operations which you are tipped to take over in due course? </strong><br />
	<br />
	<br />
	India is huge for us and South Asia is big for us as a region and I am excited about the opportunity. <br />
	<br />
	<br />
	In terms of market situation, it will be obviously different from my posting at Taiwan which was already a developed market. But I also have been through different roles globally which provided me with an opportunity to look at diverse markets from Korea in the east to Nigeria in the west. Therefore, I do have the understanding of managing different markets and challenges are something that I always look forward to. <br />
	<br />
	<strong><br />
	You have also been the Global Head for SMEs and New Ventures in Singapore. What are your plans to this effect for your operations in the South Asia region? </strong><br />
	<br />
	<br />
	The SME sector is already quite large for us in the markets in South Asia. It's about building on the strong track record that we have in the sector. SMEs are the core to any economy typically when they constitute 90-95 per cent of the enterprises and contribute 65-70 per cent of the employment. Even during the financial crisis, we have been out there supporting the SMEs and again that is something which differentiates us. SMEs augur well for South Asia as there is potential growth in the economies because of the sheer confidence of SMEs to the economies in the region. <br />
	<br />
	<br />
	<strong>Talking about India, there are recent reports that suggest the Indian economy may not be growing at the same breakneck speed that it so promised until about a couple of years ago, for a variety of reasons. How big an impact will it have on the fortunes of the banking conglomerates in the country? </strong><br />
	<br />
	<br />
	One has to look at the situation in terms of the overall context. India has had very strong growth in the past many years.There are some signs of moderation but I think it is only a short term phenomenon there is no denying the fundamental strength of the economy and we as an organisation are very bullish about the long term potential of the market. The big story about India remains unchanged in terms of its medium and long term prospects; we should not read too much into a slowdown in the last few quarters. <br />
	<br />
	<br />
	<strong>Standard Chartered Bank's profits in India have come under pressure after five years of accelerated growth. How, do you think, a difference can be made in this context? </strong><br />
	<br />
	<br />
	Standard Chartered in India has had a fantastic growth over the last decade or so and the team there has done an incredible job, with profits growing fivefold in the last five years. As I said, it's a short term blip and clearly, there are immense opportunities in the Indian market. We are well positioned as an institution having been in that market for 150 years, to really capitalise on the growth opportunities the economy presents. <br />
	<br />
	<br />
	<strong>China is the fastest growing economy in the world. How well placed is Standard Chartered Bank in the country given its immense potential? </strong><br />
	<br />
	<br />
	We do have a sizeable presence in China with a fully-owned banking subsidiary which operates over 70 outlets. We will very soon be looking at crossing the 90 mark in terms of the outlets that we have in the country. We have been present in China for around 150 years and it's one of the fastest growing markets for our bank in terms of revenue momentum and growth. <br />
	<br />
	<br />
	So, the Chinese market has immense opportunities for us and a bank such as ourselves, is very well positioned given our long history in that particular market. We can certainly be more aggressive in China but we also have to balance the opportunity with the investment. And I don't think we have held back on any investment in China as it's a market where we see great potential and growth.</p>
<p>
	 </p>',
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			'created' => '2012-01-21',
			'modified' => '2012-09-16',
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			'description' => 'Sunil Kaushal is the newly appointed Chairman of Standard Chartered Bank Nepal Limited. Kaushal is likely to assume a senior role in the South Asia region, the announcement of which is likely to happen soon. He is currently the President and CEO of Standard Chartered Bank (Taiwan) Limited.',
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			'title' => 'Dreaming Big',
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			'content' => '<p style="text-align: justify;">
	<img align="right" alt="" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/golcha.jpg" style="width: 339px; height: 589px; margin: 10px; padding: 10px;" vspace="5" />Young , dynamic and a businessman at heart, Hemant Golchha is the Executive Director of Golchha Organisation, a leading corporate house of Nepal with a nearly 100 year long history. He is one of the successful young entrepreneurs who dreams success for his ventures and goes about achieving them. Ram Lal Golchha, the great grandfather of Hemant Golchha, sowed the seeds of Golchha Organisation almost a hundred years ago. He started the business with exporting jute from Nepal to industries in India. The business gave him lucrative returns and inspired to venture into other projects. Golchha says that his great grandfather had played an important role in establishing the first industry of the nation&nbsp; Biratnagar Jute Mill. Ram Lal Golchha established his own jute industry followed by steel industries. </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	He never looked back and a perpetual growth always followed the Golchhas. Hemant Golchha is a fourth generation businessman and his five younger brothers have also joined the business. He has put his efforts with new vision and thoughts to steer the family business in new areas. He has the promise to lead the organisation with the same dignity and success that his earlier generations had achieved. Golchha grew up in a close-knit joint family and his childhood was not completely different than any other child's. He recalls having fun during the days when relatives gathered at home for festivals. He says, It was a lot of fun and I enjoyed growing up in a joint family. We used to have a good time with school friends as there was nothing to worry about. He would visit Biratnagar for festivals where half of his family members were living. </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	Despite being from a privileged family, he was taught to be honest, humble, simple, truthful and unpretentious about being wealthy. Our modest ways made sure that the family enjoyed a certain level of respect in the community. We never ran businesses solely for the purpose of making money, says Golchha. Golchha completed his schooling from St Xavier's School at Jawalakhel and then attended St Joseph's College of Commerce in Bangalore for his intermediate and undergraduate degrees. He regrets that he could not pursue a master's degree once he started shouldering business responsibilities. He recommends youngsters to complete studies before joining business. </p>
<p style="text-align: justify;">
	Once you get involved with a business, it is difficult to find time, he reasons. After returning from Bangalore, he spent around two years training with various industries in Nepal and Australia and joined his family's business in 1992 at the age of 24. G o l c h h a w a s g i v e n t h e responsibility of managing Koshi Metal, a tin container manufacturing industry in Biratnagar. To his credit, he successfully made it a profitable proposition from being a loss bearing industry. In his much younger days, he aspired to be like his great grandfather. </p>
<p style="text-align: justify;">
	I always wanted to be like him and follow the path he has shown&nbsp; the path of integrity, dedication, honesty and no compromise between business and hard work, he explains. Vijay Mallya, a celebrity businessperson from India inspired him to live life king size and enjoy the wealth earned from business. It is not a bad thing to enjoy our earnings. He was one of my idols during my college days because of his lifestyle, says Golchha. He believes he was destined to be a business person since he was born in a business family. Everything moved gradually in the direction it was supposed to move and entering the business was his obvious goal. Golchha's maternal grandfather and uncle were into film making which has ignited a desire in him to turn a filmmaker some day. I have not thought about making movies as a profession but only as a hobby. I will definitely make a movie some day, he states enthusiastically. </p>
<p style="text-align: justify;">
	He was also active in motorsports during his college days that speak volume for his versatility. He asserts even if he was not born in a business family, he would have still pursued a career in business. Though, of course, he credits his family for what he is today and acknowledges that his business lineage made his job that much easier. Golchha's career that began with container manufacturing continued with added responsibility in other sectors as well. He was assigned to lead Shree Ram Sugar Mill in Rautahat since 1994. He made a historic move in the family's business by making inroads into remittance, tourism and housing sectors that were never part of business with Golchha Organisation. Equal to 25 per cent of Nepal's GDP is received in the country as remittance and another 25 per cent is from travel and tourism. If you do not have a presence in the areas that are equal to some 50 per cent of the nation's GDP, you cannot call yourself a large business house. This is what influenced my decision to venture into these areas, he says. Hulas Remittance has become one of the largest Western Union agents and figured among top ten money transfer companies in the country within five years of its commencing operations. </p>
<p style="text-align: justify;">
	<br />
	Golchha started a travel and tour company last year, Travel World Experiences, which focuses on inbound tours. He is optimistic that it too will prove to be a successful venture in due time. Meanwhile, he also decided to make a foray into the real estate sector in association with a few friends which resulted in the establishment of Shangrila Housing. Golchha believes that maintaining a leading position largely depends on performance. He says, You might do very well one year but you may not do so well the next. He is dedicated and focused to make sure that his businesses attain success and has no desire to hog the limelight. I want my projects to be more recognised than myself. My total joy lies in the success of my business ventures and the positions they hold in the market. Travel opportunities that come as part of doing business is one of the most charming aspects, he says.<br />
	<br />
	I also enjoy being at my office and like working with the team members who are more like my friends, he states. The financial crunch being experienced by the economy worries him a great deal and this is one aspect he does not like about doing business. With a very forthright vision about doing business, he philosophises, If I don't enjoy doing a particular business, I will rather do something else. Golchha believes that employees are the soul of a company and having a good team is essential for its success. If you compromise while putting together a team, your business will never succeed. We are only entrepreneurs and without a good team, we cannot do everything on our own, he says. He is of the opinion that it is important to provide good remuneration and environment for motivating the human resource. He says, It is vital to give people a sense of belonging.</p>
<p style="text-align: justify;">
	<br />
	He prefers to decide from the heart while dealing with colleagues, employees and customers. A workaholic during the initial days of his career, he has now changed his working style somewhat due to added family responsibilities. He gives a lot of time to his family and returns home early to spend quality time with his two children. He also plans a holiday every year with his family to explore a new destination. Likewise, he also takes out time for his friends and likes to hang out with them at coffee shops. Golchha likes to watch entertaining movies and listen to Hindi music during his free time and also plays games with his kids. He is quite a party animal and usually spends his Friday evenings at different parties booked by friends. He hits the gym regularly and runs for around half an hour every day. He has a long list to do before he dies. Going on a long road trip from Kathmandu to Europe via Iraq, Iran and the exotic lands, is one of them.</p>',
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			'created' => '2011-11-17',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'Hemant Golchha dreams big and believes he was born to be an entrepreneur. He credits
his identity to his companies and their successes and thinks that any dream
can be achieved with hard work, dedication and honesty.',
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		'Article' => array(
			'id' => '538',
			'article_category_id' => '34',
			'title' => 'LG Dashain Tihar Kya Sandar',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img align="bottom" alt="LG Dashain Tihar Kya Sandar" border="2" height="200" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/3rd.jpg" vspace="2" width="300" />Gopi Maharjan has won the bumper prize of LG 32” LED and Home Theatre under the festive scheme ‘LG Dashain Tihar Kya Sandar’ launched by CG Electronics. Maharjan, a Kumaripati resident won the prize with coupon number 007045 on the purchase of an LG Refrigerator. The scheme was launched to provide sure-shot gifts on the purchase of every LG product.  &nbsp;</p>',
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			'description' => '‘LG Dashain Tihar Kya Sandar',
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			'title' => 'Sher Remit Ties Up With AFX FastRemit',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	Al Fardan Exchange Company LLC, a prominent financial institution of Qatar, and Sher Remit Pvt Ltd, a newly established remittance handling company of Nepal, have inked an agreement for mutual collaboration. Under the <img align="right" alt="" border="1" height="262" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/2nd-photo.jpg" vspace="2" width="300" />agreement signed in Doha, Sher Remit has become the principal agent in Nepal of AFX FastRemit – remittance wing of Al Fardan Exchange. According to Ashish Sherchan, Managing Director of Sher Remit, beneficiaries in Nepal can receive money remitted through AFX FastRemit from 900 agents of Sher Remit throughout the country or NABIL bank, as per their convenience.  &nbsp;</p>',
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			'created' => '2012-02-21',
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			'keywords' => '',
			'description' => 'Al Fardan Exchange Company LLC, a prominent financial institution of Qatar, and Sher Remit Pvt Ltd, a newly established remittance handling company of Nepal, have inked an agreement for mutual collaboration.',
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			'title' => 'Czech-Nepal Investment In Trishuli III',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>Trishuli III, a 24.95 megawatt (MW) hydroelectricity project is being financed jointly by Czech Republic and a Nepali company. STEF Group, a Czech energy and Nepal’s Santoshi Hydropower will be mutually developing the project. The Czech company has also shown interest to invest in small hydroelectricity projects of up to 1 MW that are particularly suitable for rural electrification. Vishnu Kumar Agrawal, Honorary Consul of the Czech Republic in Nepal said that Czechs are interested to invest in three large hydro projects in Nepal. However, he refused to name the projects as the discussions are still in the primary stage. Narendra Kumar Basnyat, Acting President of Confederation of Nepalese Industries (CNI) said that Czechs are interested to expand business and investment in Nepal through cooperation.  
	 </p>',
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			'description' => 'Trishuli III, a 24.95 megawatt (MW) hydroelectricity project is being financed jointly by Czech Republic and a Nepali company.',
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			'title' => 'Tourism Decade In Offing',
			'sub_title' => '',
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	The tourism promotional campaign, Nepal Tourism Year (NTY) 2011, is being extended into tourism decade. Dr Ganesh Raj Joshi, Secretary at the Ministry of Tourism and Civil Aviation said the ongoing campaign will be given continuity in the name of tourism decade to promote investment in this sector. “International promotional programmes scheduled during tourism year will be carried out only in 2012. That is why a plan of tourism decade is being formulated,” he said. He opined that the tourism decade should be celebrated till 2020 so that the excitement of NTY extends to rural areas. He also informed that the conclusion of NTY will coincide with the inauguration of Visit Lumbini Year 2012.</p>
<p>
	An extravagant ceremony is planned to be held in Lumbini for this purpose. The government had allocated Rs 130 million for tourism promotion for fiscal year 2011/12. However, the amount will only be spent in 2012. Joshi said the enthusiasm seen from the private sector, general public and political leadership is necessary to be continued further in the future too. The lapses of NTY can be corrected in the coming nine years long campaign, according to immediate past CEO of Nepal Tourism Board, Prachanda Man Shrestha. He also said that it is vital to introduce new and unique programmes to attract tourists every year.  &nbsp;</p>',
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			'description' => 'The tourism promotional campaign, Nepal Tourism Year (NTY) 2011, is being extended into tourism decade. Dr Ganesh Raj Joshi, Secretary at the Ministry of Tourism and Civil Aviation said the ongoing campaign will be given continuity in the name of tourism decade to promote investment in this sector',
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			'title' => 'ICT Association Elects New Working Committee',
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	<br />
	<img align="absMiddle" alt="ICT Association Elects New Working Committee" border="1" height="349" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/biz1.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	The ICT Association of Nepal has elected new executive committee for the period of 2011-2013. While Sagar Dev Lakhe and Bheshraj Poudel are reelected the President and Vice-President respectively, Roshan Bhandari and C N Upadhyay too have been reelected General Secretary and Treasurer, respectively. The new executive committee also has Shobhan Sainju, Dilip Kundaliya, Shirish Murarka, Nikhil Bansal and Sandesh Nyachhyon as members.</p>',
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			'created' => '2012-02-21',
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			'description' => 'The ICT Association of Nepal has elected new executive committee for the period of 2011-2013. While Sagar Dev Lakhe and Bheshraj Poudel are reelected the President and Vice-President respectively, Roshan Bhandari and C N Upadhyay too have been reelected General Secretary and Treasurer, respectively.',
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			'title' => 'We Are Very Keen To Move The SAARC Free Trade Process Forward',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Jaideep Mazumdar" border="1" height="175" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-VI dec2012.jpg" vspace="10" width="300" /><br />
	<br />
	<strong>Jaideep Mazumdar <br />
	Minister and Deputy <br />
	Chief of Mission Embassy of India, Kathmandu </strong><br />
	<br />
	<br />
	<strong><br />
	How do you look at the overall regional trade in South Asia? </strong><br />
	<br />
	As everybody will say, it is not up to potential and a lot more can be done. Intra-regional trade within South Asia is only 5 per cent of the trade that the region has with the world. There is, of course, a potential and a huge opportunity for the countries within the region to improve on this figure. <br />
	<br />
	<br />
	<strong>How can connectivity be improved between India and Nepal to negotiate better transit? </strong><br />
	<br />
	In Nepal’s context, as you would be aware that we are building four integrated customs check posts along the border. The objective is that whenever there is a traffic movement between India and Nepal, there is a scientific borderly single place where everything is done – customs check, inspection of goods, clearing of consignments etc. We are also building five cross border railway lines wherein we are harmonising different gauges on both sides of the border as well as building new lines so that goods can come straight to Nepal and vice versa. <br />
	<br />
	To encourage third country trade with Bangladesh, we are building a railway line which will provide an exit from Bangladesh straight into Nepal. We have agreed to allow Vishakhapatnam as an alternative port for Nepal to trade with the rest of the world. We are also building 1,400 kms of roads which will open Nepal inter-land for trading with northern Bihar and northern UP in India along the Terai belt so the movement of goods will become easier. These kinds of connections and inter-linkages are being built to improve transit. <br />
	<br />
	<strong><br />
	How do you view economic diplomacy in the context of enhanced regional trade among SAARC nations? </strong><br />
	<br />
	I can speak for our foreign service that is the Indian Foreign Service, which puts a tremendous amount of importance on economic diplomacy which encompasses trade diplomacy. In all our embassies, we have designated officers who look after harmonising, increasing the trade and helping the private sector of the countries they are posted at. For trade diplomacy, we have an entire division in the Ministry of External Affairs in India which deals with such matters. <br />
	<br />
	<br />
	<strong>There seems to be a sheer lack of trust among nations on different issues. How big a deterrent is this for intra-regional trade? </strong><br />
	<br />
	Historically, there has been a problem between India and Pakistan that was a hindrance for intra SAARC trade. We now hope that things will move much faster and we have been very keen to move the SAARC free trade process forward. We have been doing our bit to ensure that free trade develops in the region. <br />
	<br />
	<br />
	<strong>India, being the centre of regional trade among the SAARC nations, could have played a more vital role in making the SAARC trade bloc effective. What are the reasons for India not being able to do so?</strong><br />
	<br />
	Of course, everybody could have done more. As I said earlier, the potential of intraregional trade in the SAARC region is too large and there is so much opportunity. It naturally means that the potential has not been achieved but it’s due to many factors. I think there is a realisation now among the countries in the region that we need to increase those linkages and move SAARC into a more integrated regional cooperation model. All the leaders have talked about it at the Maldives Summit and our Prime Minister has also spoken very strongly in favour of integrating SAARC. <br />
	<br />
	<br />
	<strong>Why is the trade in this region more oriented towards international trade rather than trading within the region itself? </strong><br />
	<br />
	You cannot generalise this. There may be some products which will have a market in the SAARC region while there may be some other which can find more lucrative markets outside the region. The very fact that intra SAARC trade is only 5 per cent does not mean that the objective should be to make it 100 per cent. For example, oil is always imported so it goes both ways – exports as well as imports. Even Bangladesh which produces so much of garments cannot look only at the South Asian market. People have very high buying power in Europe and North American countries so there are commodities which will find a market in that part of the world and not necessarily in South Asia. <br />
	<br />
	<strong><br />
	How do you view recent development such as BIPPA in the context of intra-regional trade? </strong><br />
	<br />
	BIPPA is an agreement which is just that – an agreement that was to encourage the investors of both countries to invest in each other. We have signed such agreements with more than 75 countries so having agreements with them does not mean that all those countries have invested in India. Therefore, the final decision on investment depends on many factors such as policy stability, security etc. BIPPA itself is only a facilitative document. <br />
	<br />
	<strong><br />
	What are the potentials of Nepal’s trade with countries in the SAARC region, especially India? </strong><br />
	<br />
	You can only export what you can produce. For most of the countries in the region, the exportable products are not adequate therefore countries like Nepal and Bangladesh have big trade deficits with India. Import wise too, if Nepal does not buy goods from India, it has to buy them from somewhere else simply because it does not produce those goods. For example, petroleum products have to be bought from India or some other country and if you buy it from a third country, you still have to transport it through India. If you don’t produce a certain commodity, you cannot trade that.  <br />
	<br />
	<br />
	Â&nbsp;</p>',
			'published' => true,
			'created' => '2012-01-27',
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			'keywords' => '',
			'description' => 'As everybody will say, it is not up to potential and a lot more can be done. Intra-regional trade within South Asia is only 5 per cent of the trade that the region has with the world. There is, of course, a potential and a huge opportunity for the countries within the region to improve on this figure.',
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	(int) 6 => array(
		'Article' => array(
			'id' => '532',
			'article_category_id' => '40',
			'title' => 'Intra-industry Trade Potential In South Asia Is Underutilised',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Ratnakar Adhikari" border="1" height="433" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-Vdec2012.jpg" vspace="10" width="300" /><br />
	<br />
	<strong>Ratnakar Adhikari <br />
	General Secretary <br />
	South Asia Watch on Trade, Economics and Environment (SAWTEE) <br />
	</strong><br />
	<br />
	<strong><br />
	What is the current status of Intra SAARC trade? </strong><br />
	<br />
	The intra-regional trade among the SAARC countries stands at 5 per cent of the blocks worldwide trade which has been the case for some time now. Intra SAARC trade has certainly increased over the years, however, there has been an increase in SAARC’s world trade too. Hence, the share of intraregional trade has remained constant. When compared to intra-regional trade in other trade blocs like ASEAN and EU, intra SAARC trade does look small. <br />
	<br />
	<strong><br />
	Why has SAFTA not been able to gainmomentum since its inception in 2004? </strong><br />
	<br />
	SAFTA has not been able to take off because of political as well as economic reasons. It was also affected due to the political tensions between India and Pakistan. Among the economic reasons, it’s the sensitive list that has affected SAFTA most wherein it was decided to have such a list but the types of commodities under the sensitive list was not ascertained. A mammoth 53 per cent of tradable commodities had figured in the sensitive lists of different countries in the region. <br />
	<br />
	<br />
	<strong>How can regional connectivity be improved to negotiate better transit and transhipment?<br />
	</strong> <br />
	There are a number of issues related to regional connectivity that can certainly be looked at if there is a proper intent to do that. For example, India is suffering from Bangladesh’s denial to allow transit through its territory which could have made it easier to reach the north-eastern part of India. Even Nepal can export tea to Pakistan but it will not be profitable sending tea via air cargo. If Nepal can export tea by using the Mahendranagar border to Pakistan via Wagah in Punjab, surface transport can deliver goods in 12 hours flat. But there has been no concrete talk with India on this matter. <br />
	<br />
	<strong><br />
	India, being the centre of regional trade among the SAARC nations, could have played a more vital role in making the SAARC trade bloc effective. What are the reasons for India not being able to do so? </strong><br />
	<br />
	It’s probably because they have analysed the cost and benefits and realised that it is better for them to look outside the region rather than concentrating their negotiating and political capital as well as resources in South Asia. India is not making any pro-active efforts to strengthen regional economic cooperation in South Asia whereas it should be actually promoting regional stability in South Asia which is eventually going to be in its own interest. <br />
	<br />
	<strong><br />
	Why is the trade in this region more oriented towards international trade rather than trading within the region itself? </strong><br />
	<br />
	Historically, most of the developing countries while talking about exporting manufactured products, always have the European, North American, Japanese and Australian markets in their minds. This has been happening for over a century now. Another problem in South Asia region is that most of the countries compete for the same market internationally. <br />
	<br />
	<strong><br />
	Can South Asia region be the production house as well as the market and be self suffi cient for trade? </strong><br />
	<br />
	Why not? I had actually proposed in one of my writings earlier that South Asia can become the textile and clothing production hub. I feel that intra-industry trade potential is not being utilised in South Asia to the extent possible. For example, Pakistan and India are among the best cotton producers in the world and we have state-of-the-art industries in the region that could process cotton into textile fabric. In Bangladesh, we also have one of the lowest cost manufacturers of garment in the world. The manufactured garments can then be sent to Colombo and utilising the shipping industry potential of Sri Lanka, they can be fast processed and shipped to markets abroad. This kind of modality can work in the region’s interest. <br />
	<br />
	<br />
	As for consumption of goods produced within the region, we can take the example of India already importing textile and clothing products from countries like Bangladesh and Nepal. And it should import even more from within the region rather than importing from countries like Thailand and China. There should be an attempt to create an incentive for the partner countries in the region to be able to export to a country like India. However, bureaucratic hassles, nontariff barriers, rules of origin as well as 4 per cent special additional duty imposed on an arbitrary basis have created problems. <br />
	<br />
	<strong><br />
	What are the differences in provisions of WTO and RTA? How does it affect the intra-regional trade? </strong><br />
	<br />
	Regional Trade Agreements (RTA) are meant to provide a platform for deeper level of integration when compared to WTO. You have to understand the fact that WTO actually does not actively discourage RTAs. By virtue of a legal provision within the WTO, it condones regional economic arrangements. In that sense, since SAFTA is deeper, trade within SAFTA should be higher than trade outside the region. By the same token, 67 per cent trade takes place within the region for EU while the figure is 60 per cent for NAFTA. It’s because they have deeper regional integration so there is no reason why SAFTA should not be able to replicate such successes. The regional economic arrangements are actually WTO plus. <br />
	<br />
	The only thing RTAs like SAFTA should learn from the WTO is that it should have a dispute settlement system that is fair, effective and credible. Due to the twotier (Panel and Appellate Body) system of dispute settlement in the WTO, any error of judgment by the panel can be corrected through appeal and actually, more than twothird of cases in the WTO are appealed.</p>
<p>
	As for effectiveness, the verdict of the dispute settlement body is almost invariably adopted because of the reverse consensus rules, which means that the verdict of the dispute settlement body would not be adopted only if there is a consensus not to adopt the report. The credibility factor comes into play because the threat of sanction imposed by the winning party through the decision of the dispute settlement body is plausible. There have been instances where sanctions have actually been imposed thereby forcing the losing party to bring its measures in conformity with the WTO rules. While advanced RTAs such as EU or NAFTA have very effective dispute settlement systems in the form of European Court of Justice and NAFTA Court, SAFTA does not have such a mechanism. This is one of the reasons why countries acting against the spirit of SAFTA also go scot free. <br />
	<br />
	 </p>',
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			'description' => 'The intra-regional trade among the SAARC countries stands at 5 per cent of the blocks worldwide trade which has been the case for some time now. Intra SAARC trade has certainly increased over the years, however, there has been an increase in SAARC’s world trade too. Hence, the share of intraregional trade has remained constant. When compared to intra-regional trade in other trade blocs like ASEAN and EU, intra SAARC trade does look small.',
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		'Article' => array(
			'id' => '531',
			'article_category_id' => '40',
			'title' => 'Economic Diplomacy Is The Present World Order',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Chandra Kumar Ghimire" border="1" height="330" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-IV dec2012.jpg" vspace="10" width="300" /><br />
	<br />
	<strong><br />
	Chandra Kumar Ghimire <br />
	Joint Secretary <br />
	Ministry of Commerce and Supplies (now Consulate General of Nepal to Kolkata) </strong><br />
	<br />
	<br />
	<br />
	<strong>What are the major differences in WTO and RTA provisions? How do they affect intraregional trade? </strong><br />
	<br />
	<br />
	WTO is a broader frame which is the legal basis for global trade arrangements and provides framework for the rule-based trading system of which RTA is an option. RTA's jurisdiction is area specific and has the involvement of likeminded countries which are similar in geographical, political or socio-economic aspects and enjoy certain proximity. The WTO's role is to provide the basis for legal framework and permit for RTAs. <br />
	<br />
	RTAs are WTO plus meaning a regional economic arrangement is expected to commit more. The commitment is for the intent of opening the market more for increasing trade volume through freer, broader, deeper and wider trade.</p>
<p>
	 </p>
<p>
	<strong>How is WTO treating RTAs? </strong><br />
	<br />
	There are already 400 RTAs that have come into being and there are more being developed. There are two dimensions and arguments to it. On a scholastic level, the argument is whether RTAs complement or contradict the WTO. The ones who advocate that RTAs complement the WTO say that regional economic arrangements help freer, wider and deeper trade. But the people believing in the philosophy of the other extreme say that RTAs are fragmenting global markets. However, broadly speaking, WTO has allowed regional economic arrangements under its legal frame and I believe the WTO has treated the RTAs in a positive way.</p>
<p>
	<br />
	<br />
	<strong>There are a host of RTAs such as SAFTA, BIMSTEC, ASEAN, NAFTA etc and an RTA is supposed to supersede WTO provisions. If WTO is to dominate all other agreements, what is its relevance at the end of the day? </strong><br />
	<br />
	<br />
	Let me first clarify that all RTAs are not effective, they are there as global ideas but not fully actualised. On a global level, WTO is supreme but it does not dominate other agreements by any means. RTAs do not have the mechanism for dispute settlements like the WTO does. The WTO is a mechanism which even drags a global power like the US to its tribunal and allows least developed countries (LDC) to have their say. Under WTO, the developing countries can also indulge in issue-based bargains with powerful countries which were not possible with RTAs without WTO's existence. <br />
	<br />
	If RTAs were to exist in all parts of the globe, the idea of regional economic arrangements will truly complement the WTO. Otherwise, the idea will not really hold much ground. The RTAs must be able to bring themselves into complete effect so that they can fulfill the ultimate aims of WTO rather than challenging its dominance.</p>
<p>
	<br />
	<strong><br />
	How do you view economic diplomacy in the context of enhanced trade relations between countries? </strong><br />
	<br />
	<br />
	Ever since the world came into being in its present unipolar form, there has been a change in the way diplomacy is being practiced. Today's power struggle is for trade and to become a winner in the âgain and loss scenario, which has resulted in a shift from conventional political diplomacy to economic diplomacy. This big transformation has brought about changes in the bureaucracy of many countries. In Nepalâ's context, we have been talking about economic diplomacy since the early 1990s but we have not been able to practice it at the real level. <br />
	<br />
	We do need political diplomacy with other countries, our immediate neighbour India for example, which is fundamental but the aim has to be for economic gains. In the present world order, we have to strive to gain by putting economic diplomacy into practice. The other countries in the region like Bangladesh and Sri Lanka have expanded their number of missions in different parts of the world exactly with this idea. <br />
	<br />
	They have been marching ahead with economic diplomacy by looking at the markets in different countries of the world. Even though we have the same agenda in Nepal, we lack a comprehensive outlook and have not been able to identify our potential markets worldwide. Accordingly, we could have expanded our missions whereas we are still stuck with the same missions that we had established in the 1950s and 1960s. <br />
	<br />
	We do not have a clear agenda even though of late, we have been able to identify countries where we could find a labour market. However, that's not sufficient because we need to tap opportunity and be able to pursue capital coordination. For this, we have to work in close coordination with ministries of economic content, the private sector and think tank institutions. India and China, our doorstep markets, are countries that are attractive for the entire world. On our part, we are leaving these arm-reach markets and looking elsewhere and therefore, ending up with virtually nothing. All the global powerhouses are targeting India and China for economic reasons and we should do the same. We should be able to shed the diplomatic legacy of the yore and start afresh.</p>
<p>
	<br />
	<strong><br />
	Why is the trade in SAARC region more oriented towards international trade rather than trading within the region itself? </strong><br />
	<br />
	<br />
	This is precisely the reason why we have not been able to gain from SAFTA. The idea that we had envisioned for the RTA a couple of decades ago has not materialised and that's why we see a country like India establishing relations with other RTAs, for example, <br />
	<br />
	ASEAN. The potential in SAARC region has not been able to take shape and India is not ready to bide time in this age of fast-paced globalisation. We do generate and agree on good ideas in this region time and again but fail to give them shape because of our many conflicts as there is a serious lack of trust among SAARC countries. Besides, we have adopted policies in the past not to bring our internal disputes to the table which is another deterrent.</p>
<p>
	<strong><br />
	<br />
	Is Nepal's bureaucratic level effort viable enough for trade enhancement without taking the private sector on board? </strong><br />
	<br />
	Trade enhancement is definitely not possible without the active participation of the private sector. The intensified level of interaction that should have been there between the private and the public sectors is seriously missing. Both the parties are responsible for this; they donate trust each other and often indulge in a blame game. We, the public sector, like to keep ourselves away from the private sector whereas we should be able to take them along. It is because we donate have a business friendly culture which has prevented us from partnering with the private sector in a substantial manner. <br />
	<br />
	On the other hand, the private sector has not been able to develop the appetite that is required to gain competitiveness. The private sector is still busy looking for quotas and concessional rates on tariff etc and create a playing field for itself. Besides, there are times when we expect the private sector to raise its voice or advice but they convey political messages instead of giving technical details or feedback. In the bargain, we miss their indepth expertise that we so desire. <br />
	<br />
	The private sector also lacks the preparedness that is required for public-private partnership (PPP). We do talk about PPP all the time, but it requires a certain level of discipline and pace which is definitely missing. Let me conclude by saying that we do have businessmen of high calibre in Nepal's private sector and one only hopes that the number of such businessmen is on the rise. <br />
	 </p>',
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	(int) 8 => array(
		'Article' => array(
			'id' => '530',
			'article_category_id' => '40',
			'title' => 'The Promises Of SAFTA Are Much Better',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="sridharkkhatri" border="1" height="477" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-III _dec2012.jpg" vspace="10" width="300" /> <br />
	<br />
	<br />
	<strong>Prof Sridhar K Khatri <br />
	Executive Director <br />
	South Asia Centre for Policy Studies (SACEPS) </strong><br />
	<br />
	<br />
	<br />
	<strong>The Promises of SAFTA are Much Better<br />
	</strong><br />
	<br />
	<strong>How do you look at the volume of regional trade in the South Asia? </strong><br />
	<br />
	Intra-regional trade between South Asia is very limited at this point of time. Despite the fact that SAARC has been in existence for the last 26 years, regional trade has not increased much. When SAARC started, it was around three to four per cent and today, it is still less than five per cent. The intra-regional volume of trade is something that has not increased for a variety of reasons. <br />
	<br />
	<br />
	<strong>What are the possible reasons for low trade in this region? </strong><br />
	<br />
	The truth is that SAARC as a regional organisation has not completely taken off. There are a lot of constraints that has contributed to this. There is asymmetry in sizes of countries involved in the region with India being the most dominant one. The second reason is that we also have conflict between India and Pakistan, which has in a way, obstructed the SAARC process. There have been opportunities at times when SAARC has shown promise. However, bilateral differences between India and Pakistan have held it back. We have had SAPTA (South Asian Preferential Trading Agreement) for a long time but that has not increased trade either because its structure was fundamentally limited in terms of offering opportunities to increase trade. That is something ASEAN used for a long time and did not have any significant impact. We made the same mistake in South Asia by going through preferential trading arrangement. SAFTA (South Asia Free Trade Agreement) was signed in 2004 but despite the agreement, it has not been implemented basically due to concerns between India and Pakistan. <br />
	<br />
	<strong><br />
	How do you view Pakistan granting MFN status to India in the context of intraregional trade? </strong><br />
	<br />
	The MFN status Pakistan has offered to India will change the nature of the game in South Asia provided there aren’t any other terrorist attacks on India or political impasses at certain points. I have been looking at South Asia for a long time now and my worry is that these hiccups tend to hold back the little progress that has been made. <br />
	<br />
	<strong><br />
	Why is the trade in this region more oriented towards international trade rather than trading within the region? </strong><br />
	<br />
	Trade beyond regions becomes more lucrative. For instance, India’s export to South Asia is around five per cent and the imports are less than three per cent. But its trade with South East Asia is nearly 25 per cent. Pakistan also has the same kind of figure because it is also looking at trade with South East Asia. Even Bangladesh’s largest trading partner right now is China and not India. Trade with European Union is also very substantial. Countries tend to export and have relations with regions where there is growth. However, if there is potential within South Asia, there will be investment and subsequently, trade. For that to happen, political barriers have to come down and their trust deficit problems have to be resolved. But again, there is no time frame for it because there are so many bilateral problems which countries need to overcome. And, in a way, South Asia also needs to be little more confident of the region by itself. There is a serious leadership deficit in South Asia where no country or leader has become an advocate of regional integration to help us overcome difficulties and ensure development. <br />
	<br />
	<br />
	<strong>How best can economic integration be used among SAARC countries to reduce poverty and move towards prosperity? </strong><br />
	<br />
	Integration in a way offers countries the chance to develop their economies in a very systematic manner. This means that if the countries are well developed and if they can progress by cooperating with each other, goods will be cheaper for the people to purchase. There is a programme in the SAARC process to eradicate poverty in the region and two commissions have already been formed on poverty eradication. These commissions have come up with significant measures and have talked about meeting the MDG (Millennium Development Goals). SAARC too has developed its own SAARC Development Goals where the focus has been on the people, however, SAARC has not been able to implement some of its programmes. <br />
	<br />
	<strong><br />
	How can regional connectivity be improved for better trade facilitation in the region? </strong><br />
	<br />
	There are significant measures that must be taken care of in terms of trade facilitation, implementing agreements on trade and reducing non tariff barriers (NTB). You can have an excellent agreement but if you have NTBs, it will make trade a difficult proposition. The possibility in South Asia is in infrastructure development which is very important. SAARC has already talked about connectivity in the region and has a SAARC Multimodal Transport Agreement in place. It has not moved very far but there are some positive signs already. In the just concluded summit in Maldives, an agreement on railways has been signed. There is also an agreement on movement of motorcars within South Asia which should have been signed at least a year ago. Movement of goods and people will be very important for the growth of the region. The trust deficit in South Asia has to be overcome to implement some of these programmes. <br />
	<br />
	<br />
	<strong>India is at the centre of regional trade among the SAARC nations. What roles, do you think, India is expected to play? </strong><br />
	<br />
	India has not only a prominent role but also a key role to play for the growth of SAARC and the benefit of the people in the region. Being a large country that is growing at an exponential rate economically, India can offer advantages to other member states of SAARC including Nepal. I do think that India is ready to move in this direction and we see signs of that but it wants to solve some of its bilateral problems with Pakistan first. I think SAFTA will take off now as Pakistan has promised MFN treatment to India. I believe that if there is substantial growth in trade between these two countries and within the SAARC members, India will be more forthcoming in the future. <br />
	<br />
	<strong><br />
	How do you rate the success of SAFTA and SAPTA? </strong><br />
	<br />
	SAPTA was pretty much an abysmal exercise that did not go far ahead. If we had looked at the ASEAN experience, we should not even have gone through the preferential trading arrangement. The promises of SAFTA are much better but the important element is to put it into practice. We had an exercise many years ago in Nepal and worked together with intellectuals, politicians and businessmen to see what they thought of free trade and if it stands to benefit Nepal. We concluded SAFTA will not benefit Nepal in the short run as free trade usually benefits the larger countries more. For a least developed landlocked country like Nepal, it is much harder to derive benefits. However, Nepal can benefit in the long run if we can have link trade with investment and other related benefits. If trade infrastructure can be developed, Nepal has the opportunity to benefit in the long run. <br />
	<br />
	<br />
	<strong>Do you see the possibility of India cannibalising its neighbours? </strong><br />
	<br />
	For India to grow, it does not need to ‘cannibalise’ small countries. India already has the potential to grow and is a major player in the world today. We have seen South East Asia and East Asia grow very fast. The next phase could be South Asia that can grow at a promising rate. India needs to be more generous towards smaller countries, offer opportunities and feel confident that the growth of smaller neighbours can be beneficial for India. I think that change in thinking is happening in India and will continue to happen in the years to come. <br />
	<br />
	<strong><br />
	What are the differences in provisions of WTO and RTA? How does it affect intra-regional trade? </strong><br />
	<br />
	WTO recognises regional trade agreements (RTA) and encourages them in a way to promote growth not only within countries but also in terms of facilitating trade among the regions in the world. So, it is compatible framework within the WTO framework. It does not obstruct RTAs and vice versa. In the last 15-20 years, a number of regional organisations have evolved at a phenomenal rate. We have seen the growth in Latin America, Africa and even in Asia. But what types of regional organisations have happened needs to be clearly looked at. Nepal is part of both SAARC and BIMSTEC where some of the activities overlap one another.</p>',
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			'description' => 'The truth is that SAARC as a regional organisation has not completely taken off. There are a lot of constraints that has contributed to this. There is asymmetry in sizes of countries involved in the region with India being the most dominant one. The second reason is that we also have conflict between India and Pakistan, which has in a way, obstructed the SAARC process.',
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	(int) 9 => array(
		'Article' => array(
			'id' => '529',
			'article_category_id' => '40',
			'title' => 'Economic Diplomacy Is Getting Sidelined By Political Diplomacy In The Regional',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-weight: bold;"><img alt="Pradeep Kumar Shrestha" border="1" height="261" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-II_dec2012.jpg" vspace="10" width="400" /><br />
	</span></p>
<p>
	<strong><br />
	Pradeep Kumar Shrestha <br />
	Vice President <br />
	SAARC Chamber of Commerce and Industry </strong><br />
	<br />
	<strong><br />
	Economic Diplomacy is getting Sidelined by Political Diplomacy in the Regional <br />
	</strong><br />
	<strong><br />
	How do you look at the regional trade in South Asia region?</strong><br />
	<br />
	In the context of South Asian trade, trade movement is very low despite it being home to one fifth of the world's population. Intra-regional trade is less than five per cent which is something the business community of the region must take into account. Other regional bodies like EU and NAFTA have more than 50 per cent of the trade within their respective regions. Even though the countries in the SAARC region claim to be close, there exist a lot of hiccups. The mindset and attitude of the politicians and bureaucrats are not to the level expected in the 21st century. Besides political reasons, infrastructure connectivity, high cost of business, bureaucratic hassles plague the prospects of intra-regional trade. <br />
	<br />
	<strong><br />
	Do you see the possibility of India cannibalising all its neighbours? </strong><br />
	<br />
	India is growing at a fast pace. There is a saying, ˜If you have to grow, you cannot grow alone. You have to grow with the neighbours India is a big trading partner for all the countries in the SAARC region. India is big in each and every aspect compared to other SAARC countries. Considering the present scenario, if India really wants to be a superpower, it has to take its neighbouring countries into confidence. <br />
	<br />
	<br />
	<strong>Why has SAFTA not been able to gain momentum since its inception in 2004? </strong><br />
	<br />
	It is raised in every forum each year but the implementation aspect has been very slow. This is more due to political mindset and crisis of confidence than anything else. However, the fact is that we have to grow together and be interdependent rather than being dependent. SAFTA should have moved much ahead by now. Within the SAARC region, we have to look at increasing the trade volume. The attitude of building confidence, helping and sharing with each other is the way to go about it. <br />
	<br />
	<strong><br />
	Regional trade is being prioritised in other trade blocs such as ASEAN, BIMSTEC and EU. Why has the same not received equal priority within the SAARC trade bloc? </strong><br />
	<br />
	This is very unfortunate. The real fact of trade not really taking off in the region is because the two big countries- India and Pakistan having their own problems to deal with. These two countries should sit together and help us have a prospering regional bloc like EU, ASEAN, NAFTA etc. Unfortunately, what is happening is that we are talking of a region but in terms of sub-regions like Eastern India-Bangladesh, Nepal-Bhutan or India- Pakistan. Each country has its own strength so we have to be able to nurture and benefit from areas of comparative advantages. We, the business community, are seriously advocating for it but without the two big countries getting together and understanding the benefits for the region, the SAARC would not move the way we dream of. <br />
	<br />
	<br />
	<strong>By this, do you mean, economic and trade diplomacy is seriously missing among SAARC member countries? </strong><br />
	<br />
	I think economic diplomacy is getting sidelined and political diplomacy is taking over. However, it is a fact that without political understanding, the economy cannot take off. There could be other ways of bringing things closer like people to people contact. We have to understand each other and feel that we are part of the same region and accordingly, we can synergise the strength. But that is not happening and every country wants to move ahead on an individual level. <br />
	<br />
	<br />
	<strong>Why is the trade in this region more oriented towards international trade rather than trading within the region? </strong><br />
	<br />
	Most of the countries in the region are import based economies though we do have exportable items like garments, carpets and others. Nepal, India, Sri Lanka and Pakistan export same kind of products and end up competing in the same market. The level of purchasing power in the region compared to other regions of the world is less even though the middle class is coming up very fast. When we want to do something, we always look at the west. In regional trade, the cost of connectivity and transportation is very high. Bureaucratic hassles like procedural delays and documentations etc also play their respective roles. All these hassles are so grave that we prefer to go for countries outside the region without realising the availability and quality of products available within the region. We, the business community, have to change that and identify our areas, strengths, products, competitive advantages etc. There must be a feeling of ‘together we grow’ to begin with. <br />
	<br />
	<br />
	<strong>In the context of intra-regional trade, how do you view Pakistan granting MFN status to India? </strong><br />
	<br />
	This is a very positive development for both the countries. To tell you the truth, SAARC has not been able to move ahead because of these two big countries not able to understand each other. The MFN status will fuel reciprocity and can move on to other countries as well. For example, China and Taiwan had similar political problems once, however, their relations have improved considerably in the last few years. If political conditions and hiccups can be taken care of, investment and trade will get a boost. At the same time, other neighbouring countries too will be benefitted when relations between these two countries get better. <br />
	<br />
	<br />
	<strong>Can South Asia region prove to be a substantially big market to consume the production generated in the region and become self suffi cient on trade? </strong><br />
	<br />
	Yes, very much so. A big market is lying out there because of the size of the population. The size of human resources, natural resources, potentials and eagerness of the people doing business in the region can certainly make this region self sufficient. This region has everything but still we have not been able to do anything remarkable. In this context, if the countries in this region join hands with each other without any biased sentiment and mentality, it can definitely prosper. <br />
	<br />
	<br />
	<strong>What are the activities of SAARC Chamber of Commerce and Industry (SCCI)? </strong><br />
	<br />
	Since its inception, the business community has wished to see that business related problems are addressed and economic agendas are taken to a much bigger level. Unfortunately, that has not happened and the community is not very happy about it. We have not been invited to the summits in Male and Thimpu despite being an important part of the SAARC. Though, of course, we understand it was not because of their unwillingness to invite us but it was because of their logistics problems in Male and Thimpu. As for our activities, we have tried to increase the number of SAARC sticker visa to improve people to people contact in the region. We have asked for 200 to 500 visas for each country. If a businessman wants to travel, he cannot wait for a month to get a visa. We are advocating that the paper work has to be reduced and the existing bureaucracy hassles should be nominal. Every country has its own area of strength such as hydroelectricity, agriculture or tourism. There are a number of councils for such sectors under the SAARC CCI, chaired by a specific country for each council. <br />
	<br />
	<br />
	<strong>Have there been enough researches conducted on regional trading? What is SAARC CCI doing towards it? </strong><br />
	<br />
	Research and Development is talked about every time especially in the context of South Asia. I believe that more than 350 scholars in different agencies like World Bank, ADB, and UNCTAD are studying and seeing why South Asia has not been able to grow despite its potentials. Even in our chamber, we try to find out facts and figures as to why things are not happening in the region. I believe such findings will lead us towards making good decisions. <br />
	<br />
	<br />
	<strong>Has it been able to go beyond the concept of bilateral chamber in the true sense of regional level trade cooperation? </strong><br />
	<br />
	We are talking about sub-regional level which is more than bilateral. We understand that because of proximity reasons, Nepal being linked to Pakistan, Sri Lanka or Maldives is not possible. But linking Nepal with Bangladesh, Bhutan, India or BIMSTEC is a different phenomenon altogether. We are only talking about the eastern part of South Asia, for example, Bangladesh, Nepal and Bhutan. Efforts toward regional level trade cooperation is certainly moving but at a very slow pace. <br />
	 </p>',
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			'description' => 'In the context of South Asian trade, trade movement is very low despite it being home to one fifth of the world's population. Intra-regional trade is less than five per cent which is something the business community of the region must take into account. Other regional bodies like EU and NAFTA have more than 50 per cent of the trade within their respective regions.',
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		'Article' => array(
			'id' => '528',
			'article_category_id' => '40',
			'title' => 'SAARC Countries Should Work Towards Regional Cooperation To Achieve Growth',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Thosapala Hewage" border="1" height="251" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory_dec2011.jpg" vspace="10" width="400" /><br />
	<br />
	<strong>Thosapala Hawaga <br />
	Ambassador <br />
	Embassy of Sri Lanka in Nepal</strong><br />
	<br />
	<br />
	<strong><br />
	SAARC Countries Should Work Towards Regional Cooperation to Achieve Growth</strong><br />
	<br />
	<strong><br />
	How do you look at the regional trade in the South Asia region?</strong><br />
	<br />
	The regional trade in South Asia seems to be improving over the years but it is not up to the expectation. Compared to the past, the South Asian economy is more open today. The tariff rates have come down from 80-90 per cent in the 1990s to 20-25 per cent today and exports and imports together are equivalent to about 20 per cent of the regional GDP. SAFTA was expected to include all products, manufacturers and commodities. It is commonly accepted that negotiations under SAPTA will not be very effective in terms of inventing intra-regional trade in SAARC which is unfortunate. There are various possibilities of further improving regional trade within South Asia if countries can overcome the existing barriers. Remedies like substantial tariff cuts, removal of non tariff barriers, adequate trade related capacity building, and connectivity between the countries etc have to be implemented. The regional trade arrangements are in an interim state towards more efficient levels of globalisation. <br />
	<br />
	<br />
	<strong>Is there a possibility of India cannibalising all its neighbours? </strong></p>
<p>
	<br />
	It is difficult to say that India is cannibalising its neighbours. But, with the size of India and its economy, you can’t compare India with any of its neighbours. It is a vast and fast developing country and also the largest country in the region. Their contribution in terms of trade, tourism and economic growth is very high. It is extremely difficult for other countries to talk about balance of trade with India. However, India is having enough problems itself that needs to be resolved first such as regional disparity, low human development index (HDI), poor connectivity etc. India is by far the largest economy in the region and the second largest fast growing economy in the world. South Asia region needs India for its economic prosperity as much as India needs the region for its continuing prosperity. <br />
	<br />
	<br />
	<strong>How do you view trade diplomacy in the context of enhanced regional trade among SAARC nations? </strong><br />
	<br />
	When people talk about diplomacy, they talk about trade diplomacy because that is especially needed by countries in the region. Trade diplomacy in the context of regional trade among SAARC nation is positive and can be further improved. The member countries of the SAARC, I believe, should work towards regional cooperation in order to achieve growth. When there is regional growth, regional trade will definitely go up. If the member countries can develop a regional cooperation and agree upon certain things, a particular country can then focus on its available resources within its territory. <br />
	<br />
	<br />
	<strong>India, being the centre of regional trade among the SAARC nations, could have played a more vital role in making the SAARC trade bloc effective. What are the reasons for India not being able to do so? </strong><br />
	<br />
	As far as I know, India, being the centre of regional trade among the SAARC nations, is playing a vital role in making the SAARC trade bloc effective. However, there are issues among the SAARC nations that need to be resolved in order to make it more effective. India too has its own problems that it needs to resolve. But I believe India can play a major role with regard to development of regional trade in the region. <br />
	<br />
	<strong><br />
	Why is the trade in this region more oriented towards international market than trading within the region? </strong><br />
	<br />
	The trade in the SAARC region is more oriented towards international market probably due to the trade relations that have been developed with countries outside the region over a long period of time. There is also this attraction to trade with countries outside the region because of the high market price for products in the international market. The international destinations have far more secure markets and offer good prices and hard currency. I do agree that trading within the region is not up to the expectations, however, I believe this can be resolved through agencies like SAARC. Actually, SAARC can play a proactive role in the development of trade within the region. They are doing it already but my feeling is that they can do more. Regional cooperation and agreements like SAFTA, SAPTA etc need to be beneficial to all the countries. In order to do that, we have to identify proper people, train them and realise their services, so that we can request them to negotiate for the benefit of their respective countries. <br />
	<br />
	<br />
	<strong>Do you think that tariff and non tariff barriers contribute towards low intra-regional trade? </strong><br />
	<br />
	When the tariff is high, the prices of the goods also go up. Therefore, the countries must look at removing non tariff barriers. We can come up with some kind of consensus within the region so that tariff and non tariff barriers are removed. This, of course, needs to be done in consultation with the member countries of the region. <br />
	<br />
	<br />
	<strong>Can South Asia region prove to be a substantially big market to consume the production generated in the region and become self suffi cient on trade? </strong><br />
	<br />
	I think the South Asian region produces various products that are required for the region and it can certainly prove to be a market big enough to consume them. But the point is that one country has to produce products which the other country doesn’t produce so that you will have an assured market. Basically, what I can see is that most countries in the region produce similar goods and that’s where the problem lies. For example, Sri Lanka produces garments and at the same time, countries such as India, Bangladesh, Nepal and Pakistan also produce garments. Invariably, they have to go outside the region in search of a market for the same product. Hence, you have to have a common agreement with the countries in the region to address this issue. But this is not an easy task unless the countries in the region are committed to do so because each country is concerned about its own benefits. You can have a win-win situation only if there is a give and take policy in place. <br />
	<br />
	<br />
	<strong>What are the problems in expanding regional trade? What are the potentials of trade development? </strong><br />
	<br />
	Trade barriers such as high tariff, double taxation, lack of connectivity among the countries are some of the problems apart from what we have already discussed earlier. The countries have to look into their infrastructure and ways of connectivity in order to increase regional trade. The size of the economy is another issue that you need to look into, for example, India is a huge economy when compared to its neighbours.<br />
	<br />
	There is also the issue of underutilisation of resources which is a cause of concern. If we can resolve these issues, we will certainly be able to expand our regional trade. <br />
	<br />
	The potential for trade development is immense because all these challenges can be turned into opportunities. But we must make sure that we look at tapping the untapped resources. The barriers too need to be taken care of. I believe we will be able to prosper if we think of the entire region rather than only be bothered about our respective countries. <br />
	<br />
	<br />
	<strong>How would Sri Lanka like to represent itself as a brand in the region? What are the prospects of trade for your indigenous products in the region so that you donâte have to look beyond? <br />
	</strong><br />
	If you look at certain products like garments, gems and jewellery and herbal products, we do have the advantages. The market for these products is within the region as well as outside of it. Some of the products have already been accepted and valued by the region. If we produce in accordance with the region’s requirement, we can definitely carve a niche for ourselves. For example, we can design gems and jewellery in a way that caters to the tastes of people of other countries. I am positive that Sri Lanka can definitely expand its trade in the region as time passes.</p>
<p>
	 </p>',
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			'description' => 'The regional trade in South Asia seems to be improving over the years but it is not up to the expectation. Compared to the past, the South Asian economy is more open today. The tariff rates have come down from 80-90 per cent in the 1990s to 20-25 per cent today and exports and imports together are equivalent to about 20 per cent of the regional GDP. SAFTA was expected to include all products, manufacturers and commodities.',
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			'title' => 'Trade Of Hopes In South Asia',
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			'content' => '<p>
	<img alt="trade hopes" height="274" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/tradeofhopes.jpg" width="300" /><br />
	<br />
	<br />
	<strong>Trade of Hopes in South Asia <br />
	<br />
	<br />
	New Business Age Bureau </strong><br />
	<br />
	<br />
	The 17th Summit of South Asian Association for Regional Cooperation (SAARC) held on 10-11 November this year adopted the Addu Declaration which lays emphasis on effective implementation of the SAFTA (South Asian Free Trade Area) accord among its member states. The heads of the eight member countries&nbsp; Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka at Addu city in Maldives discussed regional issues in an effort to take SAFTA forward. I think there is a realization now among the countries in the region to move SAARC into a more integrated regional cooperation model, says Jaideep Mazumdar, Minister and Deputy Chief of Mission at the Embassy of India in Kathmandu. <br />
	<br />
	<br />
	The declaration also includes measures to be taken to promote free flow of capital and investment and improve connectivity within the region. This year's Summit has decided to consider reducing non-tariff barriers (NTBs) and ad valorem (Latin for according to value) duties to promote freer trade. The SAFTA Ministerial Council has been directed to work on reducing sensitive lists, early resolution of NTBs and expediting the process of harmonising standards and customs procedures. Economic cooperation within the region is often viewed as a key tool for deeper integration within the region.] <br />
	<br />
	<br />
	Having recognised this, SAARC had initiated the SAARC Preferential Trading Agreement (SAPTA) as early as 1993, which later evolved into the SAFTA in 2004 and came into effect in 2006. there has been an increase in SAARC's world trade too. Hence, the share of intraregional trade has remained constant. In comparison, intra-regional trade under the Association of South East Asian Nations (ASEAN) is 32 percent, while it is 52 percent in the EU bloc and 68 percent in the USA and Canadian bloc. These trade blocs have also proved to be a tool for development for the participating countries within their respective regions. <br />
	<br />
	<br />
	<strong>Intra SAARC Trade </strong><br />
	<br />
	<br />
	While there have been several initiatives to promote trade among the region, a host of tariff and NTBs maintained by the member countries, the exhaustive negative list and the smallish trade basket have curtailed the growth of trade and investments in South Asia for long. According to an estimate, intraregional trade among the SAARC member nations (excluding Afghanistan which ratified the SAFTA protocol only in May this year) stood at $ 14.35 billion in 2010-11, an increase of 43.4 per cent vis-a-vis the same period in the previous fiscal. <br />
	<br />
	<br />
	The figure is approximately 5 percent of their total overseas trade in a year which is one of the lowest intra-regional trade volumes for any particular trade bloc. Ratnakar Adhikari, General Secretary of South Asia Watch on Trade, Economics and Environment (SAWTEE) says, “Intra SAARC trade has certainly increased over the years, however, <br />
	<br />
	<br />
	<strong>Unfulfilled Potential <br />
	</strong><br />
	<br />
	Staying true to the theme of Building Bridges, this year's SAARC Summit focused on connectivity by going ahead on a regional railways agreement and a motor vehicle pact besides inking a series of pacts on regional cooperation. Despite its high population and common culture, South Asia, is one of the most poorly connected regions in the world. While better connectivity promises to promote trade within the region, stronger trade relations can go a long way in promoting food security, poverty alleviation and improving socio-economic growth of the South Asian population. Prof Sridhar K Khatri, Executive Director of South Asia Centre for Policy Studies (SACEPS) says, The promises of SAFTA are much better but the important element is to put it into practice.<br />
	<br />
	<br />
	The share of South Asia in world economy is less than 2 percent with all eight nations of the region collectively contributing only 1.7 percent towards global trade. A number of regional trade issues largely remain unaddressed among the SAARC nations which are yet to tap the trade potential because of various problems. Different trade barriers like tariff, non-tariff and para-tariff, visa problems, political barriers, bilateral transit issues, negative list issues and testing issues are apparently acting as trade deterrents among the SAARC countries. Pradeep Kumar Shrestha, Vice President, SAARC Chamber of Commerce and Industry agrees, “Besides political reasons, infrastructure connectivity, high cost of business and bureaucratic hassles plague the prospects of intra-regional trade in South Asia.” <br />
	<br />
	<br />
	According to a paper published by the Reserve Bank of India (RBI) assessing intraregional trade in ten regional blocs, intraregional trade in SAARC was the lowest at 4.8 percent in 2008. The RBI report quoted, The reasons for the low level of trade include protectionist trade regimes, which discriminated against trade among larger neighbours; continued conflict between India and Pakistan; and transport and trade facilitation constraints.” Thick ice of contentious competition between regional peers has always been an overriding problem in the SAARC region. <br />
	<br />
	<strong><br />
	The Bottlenecks </strong><br />
	<br />
	<br />
	A lack of trust and political goodwill, and underperformance in leadership by the dominant economies has been mainly responsible for not turning SAARC into a successful regional trade bloc. For example, there is a lack of trust on several issues among nations such as India, Pakistan and Bangladesh. Mazumdar raises a case in point, “Historically, there has been a problem between India and Pakistan that was a hindrance for intra SAARC trade.<br />
	<br />
	<br />
	As a result, the major players have not participated actively in making SAARC an effective trade bloc. For too long, member nations of the SAARC have deprived themselves of the benefits of regional economic integration. The region homes one fourth of the world's population and possesses unlimited potential but has stayed least integrated. <br />
	<br />
	<br />
	The region is home to two-fifths of the world's poor and accounts for only 3 per cent of global output. Intra-regional trade has stagnated at around 5 per cent of its total trade for some time now compared to around 20 per cent in Latin America. Even Sub-Saharan Africa, with poor transport and telecommunication infrastructure, scores over South Asia, with over 10 per cent of its trade being intra-regional. The SAARC members have retained a plethora of tariff and NTBs, which greatly inhibits trade and investments in the region. With a large list of negative items, the trade basket remains very narrow, with little value addition. Thosapala HÃwag, Sri Lanka's Ambassador to Nepal recommends, We should be able to come up with some kind of consensus within the region so that tariff and non-tariff barriers are removed.<br />
	<br />
	<br />
	The major cross-border structural rigidities include behind-the-border barriers in customs procedures, poor transport links, weak networking of private sectors, and administrative issues such as visas. Foreign direct investment (FDI) too is minimal, due to regulatory issues and a non-facilitative business environment. We do generate and agree on good ideas in this region time and again but fail to give them shape because of our many conflicts as there is a serious lack of trust among SAARC countries,says Chandra Kumar Ghimire, Joint Secretary at the Ministry of Commerce and Supplies (now Consulate General of Nepal to Kolkata). <br />
	<br />
	<br />
	To make the SAARC regional trade bloc effective, the progress in duty-concession by the nations is not adequate. The participating countries were supposed to reduce the number of products from the negative list year-on-year for nations to enjoy a zero-duty facility under the SAARC umbrella after a certain period. But the progress in this regard has not been on expected grounds. Business leaders representing different trade bodies among the SAARC nations have been urging their governments to further liberalise their respective economies to help augment intraregional trade, consequently effecting the region's development. There is a serious leadership deficit in South Asia where no country or leader has become an advocate of regional integration to help us overcome difficulties and ensure development, Prof Khatri observes. <br />
	<br />
	<br />
	India, by virtue of being the largest economy in the region and its geographic position, is viewed as the member that bears additional responsibility towards intraregional economic integration. While India's trade with South Asian countries has increased considerably over the years, it is still below the potential trade levels. India, a connecting land mass, has a special responsibility in increasing intra-regional economic integration and facilitating access to its large markets for SAARC members. The idea that we had envisioned for SAFTA around a couple of decades ago has not materialised and that’s why we see a country like India establishing relations with other RTAs, for example, ASEAN,” Ghimire laments. <br />
	<br />
	<br />
	Its above-average growth, expanding middle-class population, and demand for global goods can prove to be an engine of growth for the region. India's trade with South Asian countries has increased encouragingly, in the last half-a-decade or so, but much trade is below the official radar. Further, India's trade with countries such as Nepal, Bangladesh, Sri Lanka and Afghanistan remains heavily skewed in its own favour. The services trade further adds to the trade imbalance, leading to concerns among other South Asian countries about trade sustainability. <br />
	<br />
	<br />
	<strong>The Way Forward </strong><br />
	<br />
	<br />
	The SAARC region has an immense potential for using economic integration to reduce poverty and move towards prosperity. Three areas offer large potential for economic cooperation the services trade, energy cooperation and logistical connectivity. The development of logistical hubs that facilitate the flow of trade across the region can greatly reduce the costs of doing business. These logistical hubs can help connect critical regional corridors, especially with countries having no common borders. The countries in the region will have to look into their infrastructure and ways of connectivity in order to increase regional trade, says HÃwag.</p>
<p>
	 </p>
<p>
	Tourism, a major growth opportunity for countries like Afghanistan and Nepal, remains constrained by security problems. Allowing intra-regional trade in services can enable South-Asian economies to become more globally competitive. Energy and electricity cooperation are non-traditional areas of trade relationship development. For example, Bhutan has managed to balance its trade with India with large exports of hydroelectric power, and similar potential exists for Bangladesh and Nepal. <br />
	<br />
	<br />
	An integration of electricity grids across South Asia can reduce power costs and enhance manufacturing competitiveness for all members. Huge hydro-electric potential exists in Nepal, Bhutan, Afghanistan and India, which could be tapped for intra-regional power trade. Each country has its own strength so we have to be able to nurture and benefit from areas of comparative advantages,feels Shrestha. Just days ahead of the SAARC Summit in Maldives, Pakistanâ's initiative to grant Most Favoured Nation (MFN) status to India was considered a major breakthrough. As far as trade goes, the move promises to help the economies of both the countries over a longer period of time. <br />
	<br />
	<br />
	Experts and analysts observe the major initiative can also prove to be an important step to help stabilise the region, struggling to combat poverty and achieve economic reliability in the wake of US and Eurozone debt crises. It would also pave the way for economic integration of SAARC countries and the prospects of the region thriving seem brighter than ever before. At the Maldives Summit, Indian Prime Minister Dr Manmohan Singh announced Indiaâ's decision to slash the sensitive list for least developed countries within SAFTA, reducing it from 480 tariff lines to just 25.</p>
<p>
	 </p>
<p>
	India has stated that zero basic customs duty access would be given for all the items removed, with immediate effect. There should be an attempt to create an incentive for the partner countries in the region to be able to export to a country like India,” Adhikari recommends. As things stand, SAARC as a regional bloc leaves a lot to be desired. However, SAARC has a good trade potential as the economies of a number of SAARC nations are growing fast, observers opine. The countries seem to be on the path towards eliminating tariff barriers and reducing NTBs against each other. It's time for the South Asian countries to think collectively in order to cash in the opportunity of emerging as a regional force to reckon with. <br />
	 </p>',
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	<img alt="" border="1" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/madanlamsal.jpg" style="width: 103px; height: 127px;" vspace="10" /><br />
	<strong>By Madan Lamsal <br />
	</strong><br />
	<br />
	It is hard to believe that the times have changed, so fast. Anywhere you may go, you are sure to find that things have really changed. <br />
	<br />
	<br />
	In the past, the industrialists used to run the hotels, factories or companies. But at present it is the trade unions that do that job. In the past the businessmen had lot of money, today all the money is either with the politicians and bureaucrats or dons. In the past it was License Raj, today it is Goondaraj, which is claimed to be the Nepali version of free market economy. Therefore, in the past one got the license after the officers felt the criteria were met.</p>
<p>
	 </p>
<p>
	<img alt="" height="249" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/laugingmatter.jpg" width="400" /><br />
	<br />
	In the past, the job of the police was to prevent the thieves from stealing or the robbers from looting those connected to Narayanhity Durbar, now their job is at jeopardy if the let-loose bandits connected to the Durbars at Paris Danda, Balkhu and Sanepa is even suspected by the police. These days people feel comfortable to see the bandits to whom they pay weekly charge called hafta. Rather they disdain the appearance of politicians who nowadays enjoy the larger chunk of the same hafta. <br />
	<br />
	<br />
	The public corporations used to be rich by earning handsome profit. Now the affluence has shifted to their employees and politicians and the corporations are in ramshackle. In those old good days, sick people used to get good after visiting a doctor. But today, even a healthy person becomes sick as soon as he/she sees the one. There was a time when fat man in the street generally meant a businessman or a rich fellow. Businessmen used to run or morning walk to burn their fat. <br />
	<br />
	<br />
	Today, all their fat is taken away some by the banks, some by the politicians and some by the extortionist Goondas. But now, they who are in trouble don't need to panic thinking about the tricks of suicide. It is just that they need to come out of building home or office, a shooter might be standing right at the doorstep to facilitate his journey to heaven. Originally, educational institutions were means for social service and were opened to educate and inculcate moral values and culture in the heads of the students. Today schools and colleges are opened solely for profit. Students too, used to attend the classes. <br />
	<br />
	<br />
	Their objectives these days is to be in demonstrations and at the service of political leaders if they are in the government colleges, or for dating if they are from five-star private colleges. Even the fashion has gone a sea change. Those were days when the girls had long hairs and wore the earrings. Today it is just the opposite - the boys have taken up the girls fashion and vice-versa. Nowadays men have started to marry men and women have started to marry women. Dating spots too have changed from the zoos and parks to the shopping malls or department stores. <br />
	<br />
	<br />
	These are only a few instances of a massive changes that are going around us. But it is the media that has failed to embrace the fast pace of changes. Like in the past most media enjoy portraying good to a political patron regardless of how bad he could be. <br />
	<br />
	<br />
	So, is not it the time to change for media too? <br />
	 </p>',
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			'description' => 'It is hard to believe that the times have changed, so fast. Anywhere you may go, you are sure to find that things have really changed.',
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			'title' => 'Sunil Kaushal',
			'sub_title' => '',
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			'content' => '<p>
	<span style="font-size: 14px;"><strong><br />
	</strong></span></p>
<p>
	<span style="font-size:14px;"><strong>We Are Focused On The Basics Of Banking<br />
	</strong></span></p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img alt="" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview(5).jpg" /><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>Sunil Kaushal</strong> is the newly appointed Chairman of Standard Chartered Bank Nepal Limited. Kaushal is likely to assume a senior role in the South Asia region, the announcement of which is likely to happen soon. He is currently the President and CEO of Standard Chartered Bank (Taiwan) Limited. He has over 23 years of banking experience and held several senior roles with the bank across different markets including Global Head SME Banking and New Ventures in Singapore. Prior to joining Standard Chartered Bank, he had also worked for Bank of America and HDFC Bank. In an interview with Pinaki Roy of New Business Age, Kaushal shared his views on the global banking scenario and Standard Chartered Bank's presence in the key world markets. Excerpts: <br />
	<br />
	<br />
	<strong>You have been appointed the new Chairman of Standard Chartered Bank in Nepal. What kind of vision do you have in mind for Standard Chartered Bank's operations here in Nepal? <br />
	</strong><br />
	<br />
	First of all, I think you would appreciate that we have created a very solid platform in the last 25 years in Nepal. At our AGM held recently, we declared a solid set of results given the tough market environment that prevails. The vision is to build on a strong platform that we have got here. We are very well positioned for a balance across wholesale as well as consumer banking, in the years to come. <br />
	<br />
	<br />
	<strong>You have been at the helm of affairs in Taiwan for quite some time now. Could you highlight some interesting events during your tenure while heading Taiwan operations? </strong><br />
	<br />
	<br />
	I have been fortunate enough to have worked at many locations outside my home country and Taiwan has been one of the overseas postings for me. Taiwan was particularly interesting for the bank because we had three acquisitions there. What was also quite interesting was the acquisition of a bank Hsinchu International Bank that was much larger than ours. The other two were Asia Trust Bank (for licensing) and American Express Bank (global acquisition). It was about assimilating the culture putting the three acquisitions together, integrating them and then building on the platform. The results of Taiwan have been pretty strong. <br />
	<br />
	<br />
	<strong>How has Standard Chartered differentiated itself as a bank when compared to some other global banking giants in terms of performance and branding? </strong><br />
	<br />
	<br />
	In terms of performance, we have delivered time and again as well as enjoyed great ratings upgrade for as long as one can remember. If you look at our share prices, we are one of the few banks which trade at premium to book value. We are present in the right markets Africa, <br />
	<br />
	Asia and the Middle East which stayed relatively better even during the financial crisis. And when the recovery happened on an absolute basis, these markets did fantastically well. We have a long history in these markets around 150 years presence in most of them so we have the depth and breadth of relationships in these markets. <br />
	<br />
	<br />
	Our strategy has been very clear in terms of focusing on these markets and relying on the basics of banking to deliver our performance. We have been there for our customers by being open for business and that is a very big thing. It is as big today at a time when big institutions globally are undergoing stress, talking about cutting headcount and reducing presence. On the contrary, we are still very much in a growth mode so we stand in a unique and differentiated position. We were the only international bank which consistently delivered record profits even during the financial crisis whereas most banks were struggling to break even. <br />
	<br />
	<br />
	Standard Chartered brand has been created over a period of time and we owe it to the management teams in different markets for taking the right decisions with the depth of the local knowledge that they have. The trust that the bank has created over time is especially evident during financial crises when we always see a flight to quality in terms of the customer deposits coming to us. We have proven that people feel secure while trusting their money with us. The best part is that we don't rest on our laurels and continuously try to keep ahead of the market. These are challenging times globally but we are very well positioned and quite differentiated from the competition. <br />
	<br />
	<strong><br />
	Despite the global economic crisis, Standard Chartered Bank figures among the largest profit earning international banks. How do you view this success? </strong><br />
	<br />
	<br />
	It is about being distinctive in our strategy which has resulted in our differentiated financial performance. In fact, we have delivered eight straight years of record profits, and are the only international bank to have received a ratings upgrade by all the three global rating agencies since the start of the financial crisis. Our performance, as you mentioned, has been very strong in the closing statement that we came out with recently which reiterates our differentiated position further. <br />
	<br />
	<br />
	Among the reasons for this is that we are focused on the basics of banking having a strong capital base, focusing on our clients and customers, having a strong balance sheet in terms of liquidity and being open for business. Besides, we are present in the right markets Asia, Africa and Middle East which are actually experiencing good growth as compared to the west which is facing challenges that all of us are aware of. <br />
	<br />
	<strong><br />
	Of late, the financial world is again embroiled in a crisis of sorts, like the Eurozone debt crisis. How do you analyse this situation and what kind of impact will this have on the banking scenario across different markets? </strong><br />
	<br />
	<br />
	In terms of global impact, we have all been hearing about banks wanting to require potential recapitalisation. The impact is applicable across all markets as some of the European banks pulled back because they had to reduce their risk related assets. These banks had to reduce their exposure so that the capital comes up to the level of 9 per cent that EU has mandated by the middle of next year. It's very difficult for them to go out and raise capital at this price when they are not into utilizing their earnings. <br />
	<br />
	<br />
	There is clearly a stress on liquidity for certain banks because of the fear of the exposure that they have to the European markets. Fortunately, for a bank such as ours which has no exposure to the distressed markets in Europe, it creates opportunities for us given the funding, strong balance sheets and capital position that we have. We are looking at these opportunities in different markets and monitoring them quite closely. <br />
	<strong><br />
	<br />
	Standard Chartered, as I understand, has always propagated organic growth. Do you think there will ever be a shift in this line of thought and probably the bank could look at the issue of mergers and acquisitions more favourably in the foreseeable future? <br />
	</strong><br />
	<br />
	If you look at the last decade or so, our focus is absolutely on organic growth but we have local opportunities which are inorganic as they presented themselves. Therefore, more than being a matter of choice, it is about having the right blend. Though we are focused on organic growth as a bank, we will surely consider if a right opportunity comes up. <br />
	<br />
	<br />
	<strong>Tell us about Standard Chartered Bank's India and South Asia operations which you are tipped to take over in due course? </strong><br />
	<br />
	<br />
	India is huge for us and South Asia is big for us as a region and I am excited about the opportunity. <br />
	<br />
	<br />
	In terms of market situation, it will be obviously different from my posting at Taiwan which was already a developed market. But I also have been through different roles globally which provided me with an opportunity to look at diverse markets from Korea in the east to Nigeria in the west. Therefore, I do have the understanding of managing different markets and challenges are something that I always look forward to. <br />
	<br />
	<strong><br />
	You have also been the Global Head for SMEs and New Ventures in Singapore. What are your plans to this effect for your operations in the South Asia region? </strong><br />
	<br />
	<br />
	The SME sector is already quite large for us in the markets in South Asia. It's about building on the strong track record that we have in the sector. SMEs are the core to any economy typically when they constitute 90-95 per cent of the enterprises and contribute 65-70 per cent of the employment. Even during the financial crisis, we have been out there supporting the SMEs and again that is something which differentiates us. SMEs augur well for South Asia as there is potential growth in the economies because of the sheer confidence of SMEs to the economies in the region. <br />
	<br />
	<br />
	<strong>Talking about India, there are recent reports that suggest the Indian economy may not be growing at the same breakneck speed that it so promised until about a couple of years ago, for a variety of reasons. How big an impact will it have on the fortunes of the banking conglomerates in the country? </strong><br />
	<br />
	<br />
	One has to look at the situation in terms of the overall context. India has had very strong growth in the past many years.There are some signs of moderation but I think it is only a short term phenomenon there is no denying the fundamental strength of the economy and we as an organisation are very bullish about the long term potential of the market. The big story about India remains unchanged in terms of its medium and long term prospects; we should not read too much into a slowdown in the last few quarters. <br />
	<br />
	<br />
	<strong>Standard Chartered Bank's profits in India have come under pressure after five years of accelerated growth. How, do you think, a difference can be made in this context? </strong><br />
	<br />
	<br />
	Standard Chartered in India has had a fantastic growth over the last decade or so and the team there has done an incredible job, with profits growing fivefold in the last five years. As I said, it's a short term blip and clearly, there are immense opportunities in the Indian market. We are well positioned as an institution having been in that market for 150 years, to really capitalise on the growth opportunities the economy presents. <br />
	<br />
	<br />
	<strong>China is the fastest growing economy in the world. How well placed is Standard Chartered Bank in the country given its immense potential? </strong><br />
	<br />
	<br />
	We do have a sizeable presence in China with a fully-owned banking subsidiary which operates over 70 outlets. We will very soon be looking at crossing the 90 mark in terms of the outlets that we have in the country. We have been present in China for around 150 years and it's one of the fastest growing markets for our bank in terms of revenue momentum and growth. <br />
	<br />
	<br />
	So, the Chinese market has immense opportunities for us and a bank such as ourselves, is very well positioned given our long history in that particular market. We can certainly be more aggressive in China but we also have to balance the opportunity with the investment. And I don't think we have held back on any investment in China as it's a market where we see great potential and growth.</p>
<p>
	 </p>',
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			'description' => 'Sunil Kaushal is the newly appointed Chairman of Standard Chartered Bank Nepal Limited. Kaushal is likely to assume a senior role in the South Asia region, the announcement of which is likely to happen soon. He is currently the President and CEO of Standard Chartered Bank (Taiwan) Limited.',
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			'title' => 'Dreaming Big',
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			'content' => '<p style="text-align: justify;">
	<img align="right" alt="" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/golcha.jpg" style="width: 339px; height: 589px; margin: 10px; padding: 10px;" vspace="5" />Young , dynamic and a businessman at heart, Hemant Golchha is the Executive Director of Golchha Organisation, a leading corporate house of Nepal with a nearly 100 year long history. He is one of the successful young entrepreneurs who dreams success for his ventures and goes about achieving them. Ram Lal Golchha, the great grandfather of Hemant Golchha, sowed the seeds of Golchha Organisation almost a hundred years ago. He started the business with exporting jute from Nepal to industries in India. The business gave him lucrative returns and inspired to venture into other projects. Golchha says that his great grandfather had played an important role in establishing the first industry of the nation&nbsp; Biratnagar Jute Mill. Ram Lal Golchha established his own jute industry followed by steel industries. </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	He never looked back and a perpetual growth always followed the Golchhas. Hemant Golchha is a fourth generation businessman and his five younger brothers have also joined the business. He has put his efforts with new vision and thoughts to steer the family business in new areas. He has the promise to lead the organisation with the same dignity and success that his earlier generations had achieved. Golchha grew up in a close-knit joint family and his childhood was not completely different than any other child's. He recalls having fun during the days when relatives gathered at home for festivals. He says, It was a lot of fun and I enjoyed growing up in a joint family. We used to have a good time with school friends as there was nothing to worry about. He would visit Biratnagar for festivals where half of his family members were living. </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	Despite being from a privileged family, he was taught to be honest, humble, simple, truthful and unpretentious about being wealthy. Our modest ways made sure that the family enjoyed a certain level of respect in the community. We never ran businesses solely for the purpose of making money, says Golchha. Golchha completed his schooling from St Xavier's School at Jawalakhel and then attended St Joseph's College of Commerce in Bangalore for his intermediate and undergraduate degrees. He regrets that he could not pursue a master's degree once he started shouldering business responsibilities. He recommends youngsters to complete studies before joining business. </p>
<p style="text-align: justify;">
	Once you get involved with a business, it is difficult to find time, he reasons. After returning from Bangalore, he spent around two years training with various industries in Nepal and Australia and joined his family's business in 1992 at the age of 24. G o l c h h a w a s g i v e n t h e responsibility of managing Koshi Metal, a tin container manufacturing industry in Biratnagar. To his credit, he successfully made it a profitable proposition from being a loss bearing industry. In his much younger days, he aspired to be like his great grandfather. </p>
<p style="text-align: justify;">
	I always wanted to be like him and follow the path he has shown&nbsp; the path of integrity, dedication, honesty and no compromise between business and hard work, he explains. Vijay Mallya, a celebrity businessperson from India inspired him to live life king size and enjoy the wealth earned from business. It is not a bad thing to enjoy our earnings. He was one of my idols during my college days because of his lifestyle, says Golchha. He believes he was destined to be a business person since he was born in a business family. Everything moved gradually in the direction it was supposed to move and entering the business was his obvious goal. Golchha's maternal grandfather and uncle were into film making which has ignited a desire in him to turn a filmmaker some day. I have not thought about making movies as a profession but only as a hobby. I will definitely make a movie some day, he states enthusiastically. </p>
<p style="text-align: justify;">
	He was also active in motorsports during his college days that speak volume for his versatility. He asserts even if he was not born in a business family, he would have still pursued a career in business. Though, of course, he credits his family for what he is today and acknowledges that his business lineage made his job that much easier. Golchha's career that began with container manufacturing continued with added responsibility in other sectors as well. He was assigned to lead Shree Ram Sugar Mill in Rautahat since 1994. He made a historic move in the family's business by making inroads into remittance, tourism and housing sectors that were never part of business with Golchha Organisation. Equal to 25 per cent of Nepal's GDP is received in the country as remittance and another 25 per cent is from travel and tourism. If you do not have a presence in the areas that are equal to some 50 per cent of the nation's GDP, you cannot call yourself a large business house. This is what influenced my decision to venture into these areas, he says. Hulas Remittance has become one of the largest Western Union agents and figured among top ten money transfer companies in the country within five years of its commencing operations. </p>
<p style="text-align: justify;">
	<br />
	Golchha started a travel and tour company last year, Travel World Experiences, which focuses on inbound tours. He is optimistic that it too will prove to be a successful venture in due time. Meanwhile, he also decided to make a foray into the real estate sector in association with a few friends which resulted in the establishment of Shangrila Housing. Golchha believes that maintaining a leading position largely depends on performance. He says, You might do very well one year but you may not do so well the next. He is dedicated and focused to make sure that his businesses attain success and has no desire to hog the limelight. I want my projects to be more recognised than myself. My total joy lies in the success of my business ventures and the positions they hold in the market. Travel opportunities that come as part of doing business is one of the most charming aspects, he says.<br />
	<br />
	I also enjoy being at my office and like working with the team members who are more like my friends, he states. The financial crunch being experienced by the economy worries him a great deal and this is one aspect he does not like about doing business. With a very forthright vision about doing business, he philosophises, If I don't enjoy doing a particular business, I will rather do something else. Golchha believes that employees are the soul of a company and having a good team is essential for its success. If you compromise while putting together a team, your business will never succeed. We are only entrepreneurs and without a good team, we cannot do everything on our own, he says. He is of the opinion that it is important to provide good remuneration and environment for motivating the human resource. He says, It is vital to give people a sense of belonging.</p>
<p style="text-align: justify;">
	<br />
	He prefers to decide from the heart while dealing with colleagues, employees and customers. A workaholic during the initial days of his career, he has now changed his working style somewhat due to added family responsibilities. He gives a lot of time to his family and returns home early to spend quality time with his two children. He also plans a holiday every year with his family to explore a new destination. Likewise, he also takes out time for his friends and likes to hang out with them at coffee shops. Golchha likes to watch entertaining movies and listen to Hindi music during his free time and also plays games with his kids. He is quite a party animal and usually spends his Friday evenings at different parties booked by friends. He hits the gym regularly and runs for around half an hour every day. He has a long list to do before he dies. Going on a long road trip from Kathmandu to Europe via Iraq, Iran and the exotic lands, is one of them.</p>',
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			'description' => 'Hemant Golchha dreams big and believes he was born to be an entrepreneur. He credits
his identity to his companies and their successes and thinks that any dream
can be achieved with hard work, dedication and honesty.',
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			'title' => 'LG Dashain Tihar Kya Sandar',
			'sub_title' => '',
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	<img align="bottom" alt="LG Dashain Tihar Kya Sandar" border="2" height="200" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/3rd.jpg" vspace="2" width="300" />Gopi Maharjan has won the bumper prize of LG 32” LED and Home Theatre under the festive scheme ‘LG Dashain Tihar Kya Sandar’ launched by CG Electronics. Maharjan, a Kumaripati resident won the prize with coupon number 007045 on the purchase of an LG Refrigerator. The scheme was launched to provide sure-shot gifts on the purchase of every LG product.  &nbsp;</p>',
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	Al Fardan Exchange Company LLC, a prominent financial institution of Qatar, and Sher Remit Pvt Ltd, a newly established remittance handling company of Nepal, have inked an agreement for mutual collaboration. Under the <img align="right" alt="" border="1" height="262" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/2nd-photo.jpg" vspace="2" width="300" />agreement signed in Doha, Sher Remit has become the principal agent in Nepal of AFX FastRemit – remittance wing of Al Fardan Exchange. According to Ashish Sherchan, Managing Director of Sher Remit, beneficiaries in Nepal can receive money remitted through AFX FastRemit from 900 agents of Sher Remit throughout the country or NABIL bank, as per their convenience.  &nbsp;</p>',
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			'description' => 'Al Fardan Exchange Company LLC, a prominent financial institution of Qatar, and Sher Remit Pvt Ltd, a newly established remittance handling company of Nepal, have inked an agreement for mutual collaboration.',
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		'Article' => array(
			'id' => '536',
			'article_category_id' => '34',
			'title' => 'Czech-Nepal Investment In Trishuli III',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>Trishuli III, a 24.95 megawatt (MW) hydroelectricity project is being financed jointly by Czech Republic and a Nepali company. STEF Group, a Czech energy and Nepal’s Santoshi Hydropower will be mutually developing the project. The Czech company has also shown interest to invest in small hydroelectricity projects of up to 1 MW that are particularly suitable for rural electrification. Vishnu Kumar Agrawal, Honorary Consul of the Czech Republic in Nepal said that Czechs are interested to invest in three large hydro projects in Nepal. However, he refused to name the projects as the discussions are still in the primary stage. Narendra Kumar Basnyat, Acting President of Confederation of Nepalese Industries (CNI) said that Czechs are interested to expand business and investment in Nepal through cooperation.  
	 </p>',
			'published' => true,
			'created' => '2012-02-21',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Trishuli III, a 24.95 megawatt (MW) hydroelectricity project is being financed jointly by Czech Republic and a Nepali company.',
			'sortorder' => '440',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
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	(int) 3 => array(
		'Article' => array(
			'id' => '535',
			'article_category_id' => '34',
			'title' => 'Tourism Decade In Offing',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	The tourism promotional campaign, Nepal Tourism Year (NTY) 2011, is being extended into tourism decade. Dr Ganesh Raj Joshi, Secretary at the Ministry of Tourism and Civil Aviation said the ongoing campaign will be given continuity in the name of tourism decade to promote investment in this sector. “International promotional programmes scheduled during tourism year will be carried out only in 2012. That is why a plan of tourism decade is being formulated,” he said. He opined that the tourism decade should be celebrated till 2020 so that the excitement of NTY extends to rural areas. He also informed that the conclusion of NTY will coincide with the inauguration of Visit Lumbini Year 2012.</p>
<p>
	An extravagant ceremony is planned to be held in Lumbini for this purpose. The government had allocated Rs 130 million for tourism promotion for fiscal year 2011/12. However, the amount will only be spent in 2012. Joshi said the enthusiasm seen from the private sector, general public and political leadership is necessary to be continued further in the future too. The lapses of NTY can be corrected in the coming nine years long campaign, according to immediate past CEO of Nepal Tourism Board, Prachanda Man Shrestha. He also said that it is vital to introduce new and unique programmes to attract tourists every year.  &nbsp;</p>',
			'published' => true,
			'created' => '2012-02-21',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'The tourism promotional campaign, Nepal Tourism Year (NTY) 2011, is being extended into tourism decade. Dr Ganesh Raj Joshi, Secretary at the Ministry of Tourism and Civil Aviation said the ongoing campaign will be given continuity in the name of tourism decade to promote investment in this sector',
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	(int) 4 => array(
		'Article' => array(
			'id' => '534',
			'article_category_id' => '34',
			'title' => 'ICT Association Elects New Working Committee',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<br />
	<img align="absMiddle" alt="ICT Association Elects New Working Committee" border="1" height="349" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/biz1.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	The ICT Association of Nepal has elected new executive committee for the period of 2011-2013. While Sagar Dev Lakhe and Bheshraj Poudel are reelected the President and Vice-President respectively, Roshan Bhandari and C N Upadhyay too have been reelected General Secretary and Treasurer, respectively. The new executive committee also has Shobhan Sainju, Dilip Kundaliya, Shirish Murarka, Nikhil Bansal and Sandesh Nyachhyon as members.</p>',
			'published' => true,
			'created' => '2012-02-21',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'The ICT Association of Nepal has elected new executive committee for the period of 2011-2013. While Sagar Dev Lakhe and Bheshraj Poudel are reelected the President and Vice-President respectively, Roshan Bhandari and C N Upadhyay too have been reelected General Secretary and Treasurer, respectively.',
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	(int) 5 => array(
		'Article' => array(
			'id' => '533',
			'article_category_id' => '40',
			'title' => 'We Are Very Keen To Move The SAARC Free Trade Process Forward',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Jaideep Mazumdar" border="1" height="175" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-VI dec2012.jpg" vspace="10" width="300" /><br />
	<br />
	<strong>Jaideep Mazumdar <br />
	Minister and Deputy <br />
	Chief of Mission Embassy of India, Kathmandu </strong><br />
	<br />
	<br />
	<strong><br />
	How do you look at the overall regional trade in South Asia? </strong><br />
	<br />
	As everybody will say, it is not up to potential and a lot more can be done. Intra-regional trade within South Asia is only 5 per cent of the trade that the region has with the world. There is, of course, a potential and a huge opportunity for the countries within the region to improve on this figure. <br />
	<br />
	<br />
	<strong>How can connectivity be improved between India and Nepal to negotiate better transit? </strong><br />
	<br />
	In Nepal’s context, as you would be aware that we are building four integrated customs check posts along the border. The objective is that whenever there is a traffic movement between India and Nepal, there is a scientific borderly single place where everything is done – customs check, inspection of goods, clearing of consignments etc. We are also building five cross border railway lines wherein we are harmonising different gauges on both sides of the border as well as building new lines so that goods can come straight to Nepal and vice versa. <br />
	<br />
	To encourage third country trade with Bangladesh, we are building a railway line which will provide an exit from Bangladesh straight into Nepal. We have agreed to allow Vishakhapatnam as an alternative port for Nepal to trade with the rest of the world. We are also building 1,400 kms of roads which will open Nepal inter-land for trading with northern Bihar and northern UP in India along the Terai belt so the movement of goods will become easier. These kinds of connections and inter-linkages are being built to improve transit. <br />
	<br />
	<strong><br />
	How do you view economic diplomacy in the context of enhanced regional trade among SAARC nations? </strong><br />
	<br />
	I can speak for our foreign service that is the Indian Foreign Service, which puts a tremendous amount of importance on economic diplomacy which encompasses trade diplomacy. In all our embassies, we have designated officers who look after harmonising, increasing the trade and helping the private sector of the countries they are posted at. For trade diplomacy, we have an entire division in the Ministry of External Affairs in India which deals with such matters. <br />
	<br />
	<br />
	<strong>There seems to be a sheer lack of trust among nations on different issues. How big a deterrent is this for intra-regional trade? </strong><br />
	<br />
	Historically, there has been a problem between India and Pakistan that was a hindrance for intra SAARC trade. We now hope that things will move much faster and we have been very keen to move the SAARC free trade process forward. We have been doing our bit to ensure that free trade develops in the region. <br />
	<br />
	<br />
	<strong>India, being the centre of regional trade among the SAARC nations, could have played a more vital role in making the SAARC trade bloc effective. What are the reasons for India not being able to do so?</strong><br />
	<br />
	Of course, everybody could have done more. As I said earlier, the potential of intraregional trade in the SAARC region is too large and there is so much opportunity. It naturally means that the potential has not been achieved but it’s due to many factors. I think there is a realisation now among the countries in the region that we need to increase those linkages and move SAARC into a more integrated regional cooperation model. All the leaders have talked about it at the Maldives Summit and our Prime Minister has also spoken very strongly in favour of integrating SAARC. <br />
	<br />
	<br />
	<strong>Why is the trade in this region more oriented towards international trade rather than trading within the region itself? </strong><br />
	<br />
	You cannot generalise this. There may be some products which will have a market in the SAARC region while there may be some other which can find more lucrative markets outside the region. The very fact that intra SAARC trade is only 5 per cent does not mean that the objective should be to make it 100 per cent. For example, oil is always imported so it goes both ways – exports as well as imports. Even Bangladesh which produces so much of garments cannot look only at the South Asian market. People have very high buying power in Europe and North American countries so there are commodities which will find a market in that part of the world and not necessarily in South Asia. <br />
	<br />
	<strong><br />
	How do you view recent development such as BIPPA in the context of intra-regional trade? </strong><br />
	<br />
	BIPPA is an agreement which is just that – an agreement that was to encourage the investors of both countries to invest in each other. We have signed such agreements with more than 75 countries so having agreements with them does not mean that all those countries have invested in India. Therefore, the final decision on investment depends on many factors such as policy stability, security etc. BIPPA itself is only a facilitative document. <br />
	<br />
	<strong><br />
	What are the potentials of Nepal’s trade with countries in the SAARC region, especially India? </strong><br />
	<br />
	You can only export what you can produce. For most of the countries in the region, the exportable products are not adequate therefore countries like Nepal and Bangladesh have big trade deficits with India. Import wise too, if Nepal does not buy goods from India, it has to buy them from somewhere else simply because it does not produce those goods. For example, petroleum products have to be bought from India or some other country and if you buy it from a third country, you still have to transport it through India. If you don’t produce a certain commodity, you cannot trade that.  <br />
	<br />
	<br />
	Â&nbsp;</p>',
			'published' => true,
			'created' => '2012-01-27',
			'modified' => '2012-08-23',
			'keywords' => '',
			'description' => 'As everybody will say, it is not up to potential and a lot more can be done. Intra-regional trade within South Asia is only 5 per cent of the trade that the region has with the world. There is, of course, a potential and a huge opportunity for the countries within the region to improve on this figure.',
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	(int) 6 => array(
		'Article' => array(
			'id' => '532',
			'article_category_id' => '40',
			'title' => 'Intra-industry Trade Potential In South Asia Is Underutilised',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Ratnakar Adhikari" border="1" height="433" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-Vdec2012.jpg" vspace="10" width="300" /><br />
	<br />
	<strong>Ratnakar Adhikari <br />
	General Secretary <br />
	South Asia Watch on Trade, Economics and Environment (SAWTEE) <br />
	</strong><br />
	<br />
	<strong><br />
	What is the current status of Intra SAARC trade? </strong><br />
	<br />
	The intra-regional trade among the SAARC countries stands at 5 per cent of the blocks worldwide trade which has been the case for some time now. Intra SAARC trade has certainly increased over the years, however, there has been an increase in SAARC’s world trade too. Hence, the share of intraregional trade has remained constant. When compared to intra-regional trade in other trade blocs like ASEAN and EU, intra SAARC trade does look small. <br />
	<br />
	<strong><br />
	Why has SAFTA not been able to gainmomentum since its inception in 2004? </strong><br />
	<br />
	SAFTA has not been able to take off because of political as well as economic reasons. It was also affected due to the political tensions between India and Pakistan. Among the economic reasons, it’s the sensitive list that has affected SAFTA most wherein it was decided to have such a list but the types of commodities under the sensitive list was not ascertained. A mammoth 53 per cent of tradable commodities had figured in the sensitive lists of different countries in the region. <br />
	<br />
	<br />
	<strong>How can regional connectivity be improved to negotiate better transit and transhipment?<br />
	</strong> <br />
	There are a number of issues related to regional connectivity that can certainly be looked at if there is a proper intent to do that. For example, India is suffering from Bangladesh’s denial to allow transit through its territory which could have made it easier to reach the north-eastern part of India. Even Nepal can export tea to Pakistan but it will not be profitable sending tea via air cargo. If Nepal can export tea by using the Mahendranagar border to Pakistan via Wagah in Punjab, surface transport can deliver goods in 12 hours flat. But there has been no concrete talk with India on this matter. <br />
	<br />
	<strong><br />
	India, being the centre of regional trade among the SAARC nations, could have played a more vital role in making the SAARC trade bloc effective. What are the reasons for India not being able to do so? </strong><br />
	<br />
	It’s probably because they have analysed the cost and benefits and realised that it is better for them to look outside the region rather than concentrating their negotiating and political capital as well as resources in South Asia. India is not making any pro-active efforts to strengthen regional economic cooperation in South Asia whereas it should be actually promoting regional stability in South Asia which is eventually going to be in its own interest. <br />
	<br />
	<strong><br />
	Why is the trade in this region more oriented towards international trade rather than trading within the region itself? </strong><br />
	<br />
	Historically, most of the developing countries while talking about exporting manufactured products, always have the European, North American, Japanese and Australian markets in their minds. This has been happening for over a century now. Another problem in South Asia region is that most of the countries compete for the same market internationally. <br />
	<br />
	<strong><br />
	Can South Asia region be the production house as well as the market and be self suffi cient for trade? </strong><br />
	<br />
	Why not? I had actually proposed in one of my writings earlier that South Asia can become the textile and clothing production hub. I feel that intra-industry trade potential is not being utilised in South Asia to the extent possible. For example, Pakistan and India are among the best cotton producers in the world and we have state-of-the-art industries in the region that could process cotton into textile fabric. In Bangladesh, we also have one of the lowest cost manufacturers of garment in the world. The manufactured garments can then be sent to Colombo and utilising the shipping industry potential of Sri Lanka, they can be fast processed and shipped to markets abroad. This kind of modality can work in the region’s interest. <br />
	<br />
	<br />
	As for consumption of goods produced within the region, we can take the example of India already importing textile and clothing products from countries like Bangladesh and Nepal. And it should import even more from within the region rather than importing from countries like Thailand and China. There should be an attempt to create an incentive for the partner countries in the region to be able to export to a country like India. However, bureaucratic hassles, nontariff barriers, rules of origin as well as 4 per cent special additional duty imposed on an arbitrary basis have created problems. <br />
	<br />
	<strong><br />
	What are the differences in provisions of WTO and RTA? How does it affect the intra-regional trade? </strong><br />
	<br />
	Regional Trade Agreements (RTA) are meant to provide a platform for deeper level of integration when compared to WTO. You have to understand the fact that WTO actually does not actively discourage RTAs. By virtue of a legal provision within the WTO, it condones regional economic arrangements. In that sense, since SAFTA is deeper, trade within SAFTA should be higher than trade outside the region. By the same token, 67 per cent trade takes place within the region for EU while the figure is 60 per cent for NAFTA. It’s because they have deeper regional integration so there is no reason why SAFTA should not be able to replicate such successes. The regional economic arrangements are actually WTO plus. <br />
	<br />
	The only thing RTAs like SAFTA should learn from the WTO is that it should have a dispute settlement system that is fair, effective and credible. Due to the twotier (Panel and Appellate Body) system of dispute settlement in the WTO, any error of judgment by the panel can be corrected through appeal and actually, more than twothird of cases in the WTO are appealed.</p>
<p>
	As for effectiveness, the verdict of the dispute settlement body is almost invariably adopted because of the reverse consensus rules, which means that the verdict of the dispute settlement body would not be adopted only if there is a consensus not to adopt the report. The credibility factor comes into play because the threat of sanction imposed by the winning party through the decision of the dispute settlement body is plausible. There have been instances where sanctions have actually been imposed thereby forcing the losing party to bring its measures in conformity with the WTO rules. While advanced RTAs such as EU or NAFTA have very effective dispute settlement systems in the form of European Court of Justice and NAFTA Court, SAFTA does not have such a mechanism. This is one of the reasons why countries acting against the spirit of SAFTA also go scot free. <br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-01-27',
			'modified' => '2012-08-23',
			'keywords' => '',
			'description' => 'The intra-regional trade among the SAARC countries stands at 5 per cent of the blocks worldwide trade which has been the case for some time now. Intra SAARC trade has certainly increased over the years, however, there has been an increase in SAARC’s world trade too. Hence, the share of intraregional trade has remained constant. When compared to intra-regional trade in other trade blocs like ASEAN and EU, intra SAARC trade does look small.',
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	(int) 7 => array(
		'Article' => array(
			'id' => '531',
			'article_category_id' => '40',
			'title' => 'Economic Diplomacy Is The Present World Order',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Chandra Kumar Ghimire" border="1" height="330" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-IV dec2012.jpg" vspace="10" width="300" /><br />
	<br />
	<strong><br />
	Chandra Kumar Ghimire <br />
	Joint Secretary <br />
	Ministry of Commerce and Supplies (now Consulate General of Nepal to Kolkata) </strong><br />
	<br />
	<br />
	<br />
	<strong>What are the major differences in WTO and RTA provisions? How do they affect intraregional trade? </strong><br />
	<br />
	<br />
	WTO is a broader frame which is the legal basis for global trade arrangements and provides framework for the rule-based trading system of which RTA is an option. RTA's jurisdiction is area specific and has the involvement of likeminded countries which are similar in geographical, political or socio-economic aspects and enjoy certain proximity. The WTO's role is to provide the basis for legal framework and permit for RTAs. <br />
	<br />
	RTAs are WTO plus meaning a regional economic arrangement is expected to commit more. The commitment is for the intent of opening the market more for increasing trade volume through freer, broader, deeper and wider trade.</p>
<p>
	 </p>
<p>
	<strong>How is WTO treating RTAs? </strong><br />
	<br />
	There are already 400 RTAs that have come into being and there are more being developed. There are two dimensions and arguments to it. On a scholastic level, the argument is whether RTAs complement or contradict the WTO. The ones who advocate that RTAs complement the WTO say that regional economic arrangements help freer, wider and deeper trade. But the people believing in the philosophy of the other extreme say that RTAs are fragmenting global markets. However, broadly speaking, WTO has allowed regional economic arrangements under its legal frame and I believe the WTO has treated the RTAs in a positive way.</p>
<p>
	<br />
	<br />
	<strong>There are a host of RTAs such as SAFTA, BIMSTEC, ASEAN, NAFTA etc and an RTA is supposed to supersede WTO provisions. If WTO is to dominate all other agreements, what is its relevance at the end of the day? </strong><br />
	<br />
	<br />
	Let me first clarify that all RTAs are not effective, they are there as global ideas but not fully actualised. On a global level, WTO is supreme but it does not dominate other agreements by any means. RTAs do not have the mechanism for dispute settlements like the WTO does. The WTO is a mechanism which even drags a global power like the US to its tribunal and allows least developed countries (LDC) to have their say. Under WTO, the developing countries can also indulge in issue-based bargains with powerful countries which were not possible with RTAs without WTO's existence. <br />
	<br />
	If RTAs were to exist in all parts of the globe, the idea of regional economic arrangements will truly complement the WTO. Otherwise, the idea will not really hold much ground. The RTAs must be able to bring themselves into complete effect so that they can fulfill the ultimate aims of WTO rather than challenging its dominance.</p>
<p>
	<br />
	<strong><br />
	How do you view economic diplomacy in the context of enhanced trade relations between countries? </strong><br />
	<br />
	<br />
	Ever since the world came into being in its present unipolar form, there has been a change in the way diplomacy is being practiced. Today's power struggle is for trade and to become a winner in the âgain and loss scenario, which has resulted in a shift from conventional political diplomacy to economic diplomacy. This big transformation has brought about changes in the bureaucracy of many countries. In Nepalâ's context, we have been talking about economic diplomacy since the early 1990s but we have not been able to practice it at the real level. <br />
	<br />
	We do need political diplomacy with other countries, our immediate neighbour India for example, which is fundamental but the aim has to be for economic gains. In the present world order, we have to strive to gain by putting economic diplomacy into practice. The other countries in the region like Bangladesh and Sri Lanka have expanded their number of missions in different parts of the world exactly with this idea. <br />
	<br />
	They have been marching ahead with economic diplomacy by looking at the markets in different countries of the world. Even though we have the same agenda in Nepal, we lack a comprehensive outlook and have not been able to identify our potential markets worldwide. Accordingly, we could have expanded our missions whereas we are still stuck with the same missions that we had established in the 1950s and 1960s. <br />
	<br />
	We do not have a clear agenda even though of late, we have been able to identify countries where we could find a labour market. However, that's not sufficient because we need to tap opportunity and be able to pursue capital coordination. For this, we have to work in close coordination with ministries of economic content, the private sector and think tank institutions. India and China, our doorstep markets, are countries that are attractive for the entire world. On our part, we are leaving these arm-reach markets and looking elsewhere and therefore, ending up with virtually nothing. All the global powerhouses are targeting India and China for economic reasons and we should do the same. We should be able to shed the diplomatic legacy of the yore and start afresh.</p>
<p>
	<br />
	<strong><br />
	Why is the trade in SAARC region more oriented towards international trade rather than trading within the region itself? </strong><br />
	<br />
	<br />
	This is precisely the reason why we have not been able to gain from SAFTA. The idea that we had envisioned for the RTA a couple of decades ago has not materialised and that's why we see a country like India establishing relations with other RTAs, for example, <br />
	<br />
	ASEAN. The potential in SAARC region has not been able to take shape and India is not ready to bide time in this age of fast-paced globalisation. We do generate and agree on good ideas in this region time and again but fail to give them shape because of our many conflicts as there is a serious lack of trust among SAARC countries. Besides, we have adopted policies in the past not to bring our internal disputes to the table which is another deterrent.</p>
<p>
	<strong><br />
	<br />
	Is Nepal's bureaucratic level effort viable enough for trade enhancement without taking the private sector on board? </strong><br />
	<br />
	Trade enhancement is definitely not possible without the active participation of the private sector. The intensified level of interaction that should have been there between the private and the public sectors is seriously missing. Both the parties are responsible for this; they donate trust each other and often indulge in a blame game. We, the public sector, like to keep ourselves away from the private sector whereas we should be able to take them along. It is because we donate have a business friendly culture which has prevented us from partnering with the private sector in a substantial manner. <br />
	<br />
	On the other hand, the private sector has not been able to develop the appetite that is required to gain competitiveness. The private sector is still busy looking for quotas and concessional rates on tariff etc and create a playing field for itself. Besides, there are times when we expect the private sector to raise its voice or advice but they convey political messages instead of giving technical details or feedback. In the bargain, we miss their indepth expertise that we so desire. <br />
	<br />
	The private sector also lacks the preparedness that is required for public-private partnership (PPP). We do talk about PPP all the time, but it requires a certain level of discipline and pace which is definitely missing. Let me conclude by saying that we do have businessmen of high calibre in Nepal's private sector and one only hopes that the number of such businessmen is on the rise. <br />
	 </p>',
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	(int) 8 => array(
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			'article_category_id' => '40',
			'title' => 'The Promises Of SAFTA Are Much Better',
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			'content' => '<p>
	<img alt="sridharkkhatri" border="1" height="477" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-III _dec2012.jpg" vspace="10" width="300" /> <br />
	<br />
	<br />
	<strong>Prof Sridhar K Khatri <br />
	Executive Director <br />
	South Asia Centre for Policy Studies (SACEPS) </strong><br />
	<br />
	<br />
	<br />
	<strong>The Promises of SAFTA are Much Better<br />
	</strong><br />
	<br />
	<strong>How do you look at the volume of regional trade in the South Asia? </strong><br />
	<br />
	Intra-regional trade between South Asia is very limited at this point of time. Despite the fact that SAARC has been in existence for the last 26 years, regional trade has not increased much. When SAARC started, it was around three to four per cent and today, it is still less than five per cent. The intra-regional volume of trade is something that has not increased for a variety of reasons. <br />
	<br />
	<br />
	<strong>What are the possible reasons for low trade in this region? </strong><br />
	<br />
	The truth is that SAARC as a regional organisation has not completely taken off. There are a lot of constraints that has contributed to this. There is asymmetry in sizes of countries involved in the region with India being the most dominant one. The second reason is that we also have conflict between India and Pakistan, which has in a way, obstructed the SAARC process. There have been opportunities at times when SAARC has shown promise. However, bilateral differences between India and Pakistan have held it back. We have had SAPTA (South Asian Preferential Trading Agreement) for a long time but that has not increased trade either because its structure was fundamentally limited in terms of offering opportunities to increase trade. That is something ASEAN used for a long time and did not have any significant impact. We made the same mistake in South Asia by going through preferential trading arrangement. SAFTA (South Asia Free Trade Agreement) was signed in 2004 but despite the agreement, it has not been implemented basically due to concerns between India and Pakistan. <br />
	<br />
	<strong><br />
	How do you view Pakistan granting MFN status to India in the context of intraregional trade? </strong><br />
	<br />
	The MFN status Pakistan has offered to India will change the nature of the game in South Asia provided there aren’t any other terrorist attacks on India or political impasses at certain points. I have been looking at South Asia for a long time now and my worry is that these hiccups tend to hold back the little progress that has been made. <br />
	<br />
	<strong><br />
	Why is the trade in this region more oriented towards international trade rather than trading within the region? </strong><br />
	<br />
	Trade beyond regions becomes more lucrative. For instance, India’s export to South Asia is around five per cent and the imports are less than three per cent. But its trade with South East Asia is nearly 25 per cent. Pakistan also has the same kind of figure because it is also looking at trade with South East Asia. Even Bangladesh’s largest trading partner right now is China and not India. Trade with European Union is also very substantial. Countries tend to export and have relations with regions where there is growth. However, if there is potential within South Asia, there will be investment and subsequently, trade. For that to happen, political barriers have to come down and their trust deficit problems have to be resolved. But again, there is no time frame for it because there are so many bilateral problems which countries need to overcome. And, in a way, South Asia also needs to be little more confident of the region by itself. There is a serious leadership deficit in South Asia where no country or leader has become an advocate of regional integration to help us overcome difficulties and ensure development. <br />
	<br />
	<br />
	<strong>How best can economic integration be used among SAARC countries to reduce poverty and move towards prosperity? </strong><br />
	<br />
	Integration in a way offers countries the chance to develop their economies in a very systematic manner. This means that if the countries are well developed and if they can progress by cooperating with each other, goods will be cheaper for the people to purchase. There is a programme in the SAARC process to eradicate poverty in the region and two commissions have already been formed on poverty eradication. These commissions have come up with significant measures and have talked about meeting the MDG (Millennium Development Goals). SAARC too has developed its own SAARC Development Goals where the focus has been on the people, however, SAARC has not been able to implement some of its programmes. <br />
	<br />
	<strong><br />
	How can regional connectivity be improved for better trade facilitation in the region? </strong><br />
	<br />
	There are significant measures that must be taken care of in terms of trade facilitation, implementing agreements on trade and reducing non tariff barriers (NTB). You can have an excellent agreement but if you have NTBs, it will make trade a difficult proposition. The possibility in South Asia is in infrastructure development which is very important. SAARC has already talked about connectivity in the region and has a SAARC Multimodal Transport Agreement in place. It has not moved very far but there are some positive signs already. In the just concluded summit in Maldives, an agreement on railways has been signed. There is also an agreement on movement of motorcars within South Asia which should have been signed at least a year ago. Movement of goods and people will be very important for the growth of the region. The trust deficit in South Asia has to be overcome to implement some of these programmes. <br />
	<br />
	<br />
	<strong>India is at the centre of regional trade among the SAARC nations. What roles, do you think, India is expected to play? </strong><br />
	<br />
	India has not only a prominent role but also a key role to play for the growth of SAARC and the benefit of the people in the region. Being a large country that is growing at an exponential rate economically, India can offer advantages to other member states of SAARC including Nepal. I do think that India is ready to move in this direction and we see signs of that but it wants to solve some of its bilateral problems with Pakistan first. I think SAFTA will take off now as Pakistan has promised MFN treatment to India. I believe that if there is substantial growth in trade between these two countries and within the SAARC members, India will be more forthcoming in the future. <br />
	<br />
	<strong><br />
	How do you rate the success of SAFTA and SAPTA? </strong><br />
	<br />
	SAPTA was pretty much an abysmal exercise that did not go far ahead. If we had looked at the ASEAN experience, we should not even have gone through the preferential trading arrangement. The promises of SAFTA are much better but the important element is to put it into practice. We had an exercise many years ago in Nepal and worked together with intellectuals, politicians and businessmen to see what they thought of free trade and if it stands to benefit Nepal. We concluded SAFTA will not benefit Nepal in the short run as free trade usually benefits the larger countries more. For a least developed landlocked country like Nepal, it is much harder to derive benefits. However, Nepal can benefit in the long run if we can have link trade with investment and other related benefits. If trade infrastructure can be developed, Nepal has the opportunity to benefit in the long run. <br />
	<br />
	<br />
	<strong>Do you see the possibility of India cannibalising its neighbours? </strong><br />
	<br />
	For India to grow, it does not need to ‘cannibalise’ small countries. India already has the potential to grow and is a major player in the world today. We have seen South East Asia and East Asia grow very fast. The next phase could be South Asia that can grow at a promising rate. India needs to be more generous towards smaller countries, offer opportunities and feel confident that the growth of smaller neighbours can be beneficial for India. I think that change in thinking is happening in India and will continue to happen in the years to come. <br />
	<br />
	<strong><br />
	What are the differences in provisions of WTO and RTA? How does it affect intra-regional trade? </strong><br />
	<br />
	WTO recognises regional trade agreements (RTA) and encourages them in a way to promote growth not only within countries but also in terms of facilitating trade among the regions in the world. So, it is compatible framework within the WTO framework. It does not obstruct RTAs and vice versa. In the last 15-20 years, a number of regional organisations have evolved at a phenomenal rate. We have seen the growth in Latin America, Africa and even in Asia. But what types of regional organisations have happened needs to be clearly looked at. Nepal is part of both SAARC and BIMSTEC where some of the activities overlap one another.</p>',
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			'description' => 'The truth is that SAARC as a regional organisation has not completely taken off. There are a lot of constraints that has contributed to this. There is asymmetry in sizes of countries involved in the region with India being the most dominant one. The second reason is that we also have conflict between India and Pakistan, which has in a way, obstructed the SAARC process.',
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			'id' => '529',
			'article_category_id' => '40',
			'title' => 'Economic Diplomacy Is Getting Sidelined By Political Diplomacy In The Regional',
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			'content' => '<p>
	<span style="font-weight: bold;"><img alt="Pradeep Kumar Shrestha" border="1" height="261" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-II_dec2012.jpg" vspace="10" width="400" /><br />
	</span></p>
<p>
	<strong><br />
	Pradeep Kumar Shrestha <br />
	Vice President <br />
	SAARC Chamber of Commerce and Industry </strong><br />
	<br />
	<strong><br />
	Economic Diplomacy is getting Sidelined by Political Diplomacy in the Regional <br />
	</strong><br />
	<strong><br />
	How do you look at the regional trade in South Asia region?</strong><br />
	<br />
	In the context of South Asian trade, trade movement is very low despite it being home to one fifth of the world's population. Intra-regional trade is less than five per cent which is something the business community of the region must take into account. Other regional bodies like EU and NAFTA have more than 50 per cent of the trade within their respective regions. Even though the countries in the SAARC region claim to be close, there exist a lot of hiccups. The mindset and attitude of the politicians and bureaucrats are not to the level expected in the 21st century. Besides political reasons, infrastructure connectivity, high cost of business, bureaucratic hassles plague the prospects of intra-regional trade. <br />
	<br />
	<strong><br />
	Do you see the possibility of India cannibalising all its neighbours? </strong><br />
	<br />
	India is growing at a fast pace. There is a saying, ˜If you have to grow, you cannot grow alone. You have to grow with the neighbours India is a big trading partner for all the countries in the SAARC region. India is big in each and every aspect compared to other SAARC countries. Considering the present scenario, if India really wants to be a superpower, it has to take its neighbouring countries into confidence. <br />
	<br />
	<br />
	<strong>Why has SAFTA not been able to gain momentum since its inception in 2004? </strong><br />
	<br />
	It is raised in every forum each year but the implementation aspect has been very slow. This is more due to political mindset and crisis of confidence than anything else. However, the fact is that we have to grow together and be interdependent rather than being dependent. SAFTA should have moved much ahead by now. Within the SAARC region, we have to look at increasing the trade volume. The attitude of building confidence, helping and sharing with each other is the way to go about it. <br />
	<br />
	<strong><br />
	Regional trade is being prioritised in other trade blocs such as ASEAN, BIMSTEC and EU. Why has the same not received equal priority within the SAARC trade bloc? </strong><br />
	<br />
	This is very unfortunate. The real fact of trade not really taking off in the region is because the two big countries- India and Pakistan having their own problems to deal with. These two countries should sit together and help us have a prospering regional bloc like EU, ASEAN, NAFTA etc. Unfortunately, what is happening is that we are talking of a region but in terms of sub-regions like Eastern India-Bangladesh, Nepal-Bhutan or India- Pakistan. Each country has its own strength so we have to be able to nurture and benefit from areas of comparative advantages. We, the business community, are seriously advocating for it but without the two big countries getting together and understanding the benefits for the region, the SAARC would not move the way we dream of. <br />
	<br />
	<br />
	<strong>By this, do you mean, economic and trade diplomacy is seriously missing among SAARC member countries? </strong><br />
	<br />
	I think economic diplomacy is getting sidelined and political diplomacy is taking over. However, it is a fact that without political understanding, the economy cannot take off. There could be other ways of bringing things closer like people to people contact. We have to understand each other and feel that we are part of the same region and accordingly, we can synergise the strength. But that is not happening and every country wants to move ahead on an individual level. <br />
	<br />
	<br />
	<strong>Why is the trade in this region more oriented towards international trade rather than trading within the region? </strong><br />
	<br />
	Most of the countries in the region are import based economies though we do have exportable items like garments, carpets and others. Nepal, India, Sri Lanka and Pakistan export same kind of products and end up competing in the same market. The level of purchasing power in the region compared to other regions of the world is less even though the middle class is coming up very fast. When we want to do something, we always look at the west. In regional trade, the cost of connectivity and transportation is very high. Bureaucratic hassles like procedural delays and documentations etc also play their respective roles. All these hassles are so grave that we prefer to go for countries outside the region without realising the availability and quality of products available within the region. We, the business community, have to change that and identify our areas, strengths, products, competitive advantages etc. There must be a feeling of ‘together we grow’ to begin with. <br />
	<br />
	<br />
	<strong>In the context of intra-regional trade, how do you view Pakistan granting MFN status to India? </strong><br />
	<br />
	This is a very positive development for both the countries. To tell you the truth, SAARC has not been able to move ahead because of these two big countries not able to understand each other. The MFN status will fuel reciprocity and can move on to other countries as well. For example, China and Taiwan had similar political problems once, however, their relations have improved considerably in the last few years. If political conditions and hiccups can be taken care of, investment and trade will get a boost. At the same time, other neighbouring countries too will be benefitted when relations between these two countries get better. <br />
	<br />
	<br />
	<strong>Can South Asia region prove to be a substantially big market to consume the production generated in the region and become self suffi cient on trade? </strong><br />
	<br />
	Yes, very much so. A big market is lying out there because of the size of the population. The size of human resources, natural resources, potentials and eagerness of the people doing business in the region can certainly make this region self sufficient. This region has everything but still we have not been able to do anything remarkable. In this context, if the countries in this region join hands with each other without any biased sentiment and mentality, it can definitely prosper. <br />
	<br />
	<br />
	<strong>What are the activities of SAARC Chamber of Commerce and Industry (SCCI)? </strong><br />
	<br />
	Since its inception, the business community has wished to see that business related problems are addressed and economic agendas are taken to a much bigger level. Unfortunately, that has not happened and the community is not very happy about it. We have not been invited to the summits in Male and Thimpu despite being an important part of the SAARC. Though, of course, we understand it was not because of their unwillingness to invite us but it was because of their logistics problems in Male and Thimpu. As for our activities, we have tried to increase the number of SAARC sticker visa to improve people to people contact in the region. We have asked for 200 to 500 visas for each country. If a businessman wants to travel, he cannot wait for a month to get a visa. We are advocating that the paper work has to be reduced and the existing bureaucracy hassles should be nominal. Every country has its own area of strength such as hydroelectricity, agriculture or tourism. There are a number of councils for such sectors under the SAARC CCI, chaired by a specific country for each council. <br />
	<br />
	<br />
	<strong>Have there been enough researches conducted on regional trading? What is SAARC CCI doing towards it? </strong><br />
	<br />
	Research and Development is talked about every time especially in the context of South Asia. I believe that more than 350 scholars in different agencies like World Bank, ADB, and UNCTAD are studying and seeing why South Asia has not been able to grow despite its potentials. Even in our chamber, we try to find out facts and figures as to why things are not happening in the region. I believe such findings will lead us towards making good decisions. <br />
	<br />
	<br />
	<strong>Has it been able to go beyond the concept of bilateral chamber in the true sense of regional level trade cooperation? </strong><br />
	<br />
	We are talking about sub-regional level which is more than bilateral. We understand that because of proximity reasons, Nepal being linked to Pakistan, Sri Lanka or Maldives is not possible. But linking Nepal with Bangladesh, Bhutan, India or BIMSTEC is a different phenomenon altogether. We are only talking about the eastern part of South Asia, for example, Bangladesh, Nepal and Bhutan. Efforts toward regional level trade cooperation is certainly moving but at a very slow pace. <br />
	 </p>',
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			'description' => 'In the context of South Asian trade, trade movement is very low despite it being home to one fifth of the world's population. Intra-regional trade is less than five per cent which is something the business community of the region must take into account. Other regional bodies like EU and NAFTA have more than 50 per cent of the trade within their respective regions.',
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			'id' => '528',
			'article_category_id' => '40',
			'title' => 'SAARC Countries Should Work Towards Regional Cooperation To Achieve Growth',
			'sub_title' => '',
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			'content' => '<p>
	<img alt="Thosapala Hewage" border="1" height="251" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory_dec2011.jpg" vspace="10" width="400" /><br />
	<br />
	<strong>Thosapala Hawaga <br />
	Ambassador <br />
	Embassy of Sri Lanka in Nepal</strong><br />
	<br />
	<br />
	<strong><br />
	SAARC Countries Should Work Towards Regional Cooperation to Achieve Growth</strong><br />
	<br />
	<strong><br />
	How do you look at the regional trade in the South Asia region?</strong><br />
	<br />
	The regional trade in South Asia seems to be improving over the years but it is not up to the expectation. Compared to the past, the South Asian economy is more open today. The tariff rates have come down from 80-90 per cent in the 1990s to 20-25 per cent today and exports and imports together are equivalent to about 20 per cent of the regional GDP. SAFTA was expected to include all products, manufacturers and commodities. It is commonly accepted that negotiations under SAPTA will not be very effective in terms of inventing intra-regional trade in SAARC which is unfortunate. There are various possibilities of further improving regional trade within South Asia if countries can overcome the existing barriers. Remedies like substantial tariff cuts, removal of non tariff barriers, adequate trade related capacity building, and connectivity between the countries etc have to be implemented. The regional trade arrangements are in an interim state towards more efficient levels of globalisation. <br />
	<br />
	<br />
	<strong>Is there a possibility of India cannibalising all its neighbours? </strong></p>
<p>
	<br />
	It is difficult to say that India is cannibalising its neighbours. But, with the size of India and its economy, you can’t compare India with any of its neighbours. It is a vast and fast developing country and also the largest country in the region. Their contribution in terms of trade, tourism and economic growth is very high. It is extremely difficult for other countries to talk about balance of trade with India. However, India is having enough problems itself that needs to be resolved first such as regional disparity, low human development index (HDI), poor connectivity etc. India is by far the largest economy in the region and the second largest fast growing economy in the world. South Asia region needs India for its economic prosperity as much as India needs the region for its continuing prosperity. <br />
	<br />
	<br />
	<strong>How do you view trade diplomacy in the context of enhanced regional trade among SAARC nations? </strong><br />
	<br />
	When people talk about diplomacy, they talk about trade diplomacy because that is especially needed by countries in the region. Trade diplomacy in the context of regional trade among SAARC nation is positive and can be further improved. The member countries of the SAARC, I believe, should work towards regional cooperation in order to achieve growth. When there is regional growth, regional trade will definitely go up. If the member countries can develop a regional cooperation and agree upon certain things, a particular country can then focus on its available resources within its territory. <br />
	<br />
	<br />
	<strong>India, being the centre of regional trade among the SAARC nations, could have played a more vital role in making the SAARC trade bloc effective. What are the reasons for India not being able to do so? </strong><br />
	<br />
	As far as I know, India, being the centre of regional trade among the SAARC nations, is playing a vital role in making the SAARC trade bloc effective. However, there are issues among the SAARC nations that need to be resolved in order to make it more effective. India too has its own problems that it needs to resolve. But I believe India can play a major role with regard to development of regional trade in the region. <br />
	<br />
	<strong><br />
	Why is the trade in this region more oriented towards international market than trading within the region? </strong><br />
	<br />
	The trade in the SAARC region is more oriented towards international market probably due to the trade relations that have been developed with countries outside the region over a long period of time. There is also this attraction to trade with countries outside the region because of the high market price for products in the international market. The international destinations have far more secure markets and offer good prices and hard currency. I do agree that trading within the region is not up to the expectations, however, I believe this can be resolved through agencies like SAARC. Actually, SAARC can play a proactive role in the development of trade within the region. They are doing it already but my feeling is that they can do more. Regional cooperation and agreements like SAFTA, SAPTA etc need to be beneficial to all the countries. In order to do that, we have to identify proper people, train them and realise their services, so that we can request them to negotiate for the benefit of their respective countries. <br />
	<br />
	<br />
	<strong>Do you think that tariff and non tariff barriers contribute towards low intra-regional trade? </strong><br />
	<br />
	When the tariff is high, the prices of the goods also go up. Therefore, the countries must look at removing non tariff barriers. We can come up with some kind of consensus within the region so that tariff and non tariff barriers are removed. This, of course, needs to be done in consultation with the member countries of the region. <br />
	<br />
	<br />
	<strong>Can South Asia region prove to be a substantially big market to consume the production generated in the region and become self suffi cient on trade? </strong><br />
	<br />
	I think the South Asian region produces various products that are required for the region and it can certainly prove to be a market big enough to consume them. But the point is that one country has to produce products which the other country doesn’t produce so that you will have an assured market. Basically, what I can see is that most countries in the region produce similar goods and that’s where the problem lies. For example, Sri Lanka produces garments and at the same time, countries such as India, Bangladesh, Nepal and Pakistan also produce garments. Invariably, they have to go outside the region in search of a market for the same product. Hence, you have to have a common agreement with the countries in the region to address this issue. But this is not an easy task unless the countries in the region are committed to do so because each country is concerned about its own benefits. You can have a win-win situation only if there is a give and take policy in place. <br />
	<br />
	<br />
	<strong>What are the problems in expanding regional trade? What are the potentials of trade development? </strong><br />
	<br />
	Trade barriers such as high tariff, double taxation, lack of connectivity among the countries are some of the problems apart from what we have already discussed earlier. The countries have to look into their infrastructure and ways of connectivity in order to increase regional trade. The size of the economy is another issue that you need to look into, for example, India is a huge economy when compared to its neighbours.<br />
	<br />
	There is also the issue of underutilisation of resources which is a cause of concern. If we can resolve these issues, we will certainly be able to expand our regional trade. <br />
	<br />
	The potential for trade development is immense because all these challenges can be turned into opportunities. But we must make sure that we look at tapping the untapped resources. The barriers too need to be taken care of. I believe we will be able to prosper if we think of the entire region rather than only be bothered about our respective countries. <br />
	<br />
	<br />
	<strong>How would Sri Lanka like to represent itself as a brand in the region? What are the prospects of trade for your indigenous products in the region so that you donâte have to look beyond? <br />
	</strong><br />
	If you look at certain products like garments, gems and jewellery and herbal products, we do have the advantages. The market for these products is within the region as well as outside of it. Some of the products have already been accepted and valued by the region. If we produce in accordance with the region’s requirement, we can definitely carve a niche for ourselves. For example, we can design gems and jewellery in a way that caters to the tastes of people of other countries. I am positive that Sri Lanka can definitely expand its trade in the region as time passes.</p>
<p>
	 </p>',
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			'id' => '527',
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			'title' => 'Trade Of Hopes In South Asia',
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	<img alt="trade hopes" height="274" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/tradeofhopes.jpg" width="300" /><br />
	<br />
	<br />
	<strong>Trade of Hopes in South Asia <br />
	<br />
	<br />
	New Business Age Bureau </strong><br />
	<br />
	<br />
	The 17th Summit of South Asian Association for Regional Cooperation (SAARC) held on 10-11 November this year adopted the Addu Declaration which lays emphasis on effective implementation of the SAFTA (South Asian Free Trade Area) accord among its member states. The heads of the eight member countries&nbsp; Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka at Addu city in Maldives discussed regional issues in an effort to take SAFTA forward. I think there is a realization now among the countries in the region to move SAARC into a more integrated regional cooperation model, says Jaideep Mazumdar, Minister and Deputy Chief of Mission at the Embassy of India in Kathmandu. <br />
	<br />
	<br />
	The declaration also includes measures to be taken to promote free flow of capital and investment and improve connectivity within the region. This year's Summit has decided to consider reducing non-tariff barriers (NTBs) and ad valorem (Latin for according to value) duties to promote freer trade. The SAFTA Ministerial Council has been directed to work on reducing sensitive lists, early resolution of NTBs and expediting the process of harmonising standards and customs procedures. Economic cooperation within the region is often viewed as a key tool for deeper integration within the region.] <br />
	<br />
	<br />
	Having recognised this, SAARC had initiated the SAARC Preferential Trading Agreement (SAPTA) as early as 1993, which later evolved into the SAFTA in 2004 and came into effect in 2006. there has been an increase in SAARC's world trade too. Hence, the share of intraregional trade has remained constant. In comparison, intra-regional trade under the Association of South East Asian Nations (ASEAN) is 32 percent, while it is 52 percent in the EU bloc and 68 percent in the USA and Canadian bloc. These trade blocs have also proved to be a tool for development for the participating countries within their respective regions. <br />
	<br />
	<br />
	<strong>Intra SAARC Trade </strong><br />
	<br />
	<br />
	While there have been several initiatives to promote trade among the region, a host of tariff and NTBs maintained by the member countries, the exhaustive negative list and the smallish trade basket have curtailed the growth of trade and investments in South Asia for long. According to an estimate, intraregional trade among the SAARC member nations (excluding Afghanistan which ratified the SAFTA protocol only in May this year) stood at $ 14.35 billion in 2010-11, an increase of 43.4 per cent vis-a-vis the same period in the previous fiscal. <br />
	<br />
	<br />
	The figure is approximately 5 percent of their total overseas trade in a year which is one of the lowest intra-regional trade volumes for any particular trade bloc. Ratnakar Adhikari, General Secretary of South Asia Watch on Trade, Economics and Environment (SAWTEE) says, “Intra SAARC trade has certainly increased over the years, however, <br />
	<br />
	<br />
	<strong>Unfulfilled Potential <br />
	</strong><br />
	<br />
	Staying true to the theme of Building Bridges, this year's SAARC Summit focused on connectivity by going ahead on a regional railways agreement and a motor vehicle pact besides inking a series of pacts on regional cooperation. Despite its high population and common culture, South Asia, is one of the most poorly connected regions in the world. While better connectivity promises to promote trade within the region, stronger trade relations can go a long way in promoting food security, poverty alleviation and improving socio-economic growth of the South Asian population. Prof Sridhar K Khatri, Executive Director of South Asia Centre for Policy Studies (SACEPS) says, The promises of SAFTA are much better but the important element is to put it into practice.<br />
	<br />
	<br />
	The share of South Asia in world economy is less than 2 percent with all eight nations of the region collectively contributing only 1.7 percent towards global trade. A number of regional trade issues largely remain unaddressed among the SAARC nations which are yet to tap the trade potential because of various problems. Different trade barriers like tariff, non-tariff and para-tariff, visa problems, political barriers, bilateral transit issues, negative list issues and testing issues are apparently acting as trade deterrents among the SAARC countries. Pradeep Kumar Shrestha, Vice President, SAARC Chamber of Commerce and Industry agrees, “Besides political reasons, infrastructure connectivity, high cost of business and bureaucratic hassles plague the prospects of intra-regional trade in South Asia.” <br />
	<br />
	<br />
	According to a paper published by the Reserve Bank of India (RBI) assessing intraregional trade in ten regional blocs, intraregional trade in SAARC was the lowest at 4.8 percent in 2008. The RBI report quoted, The reasons for the low level of trade include protectionist trade regimes, which discriminated against trade among larger neighbours; continued conflict between India and Pakistan; and transport and trade facilitation constraints.” Thick ice of contentious competition between regional peers has always been an overriding problem in the SAARC region. <br />
	<br />
	<strong><br />
	The Bottlenecks </strong><br />
	<br />
	<br />
	A lack of trust and political goodwill, and underperformance in leadership by the dominant economies has been mainly responsible for not turning SAARC into a successful regional trade bloc. For example, there is a lack of trust on several issues among nations such as India, Pakistan and Bangladesh. Mazumdar raises a case in point, “Historically, there has been a problem between India and Pakistan that was a hindrance for intra SAARC trade.<br />
	<br />
	<br />
	As a result, the major players have not participated actively in making SAARC an effective trade bloc. For too long, member nations of the SAARC have deprived themselves of the benefits of regional economic integration. The region homes one fourth of the world's population and possesses unlimited potential but has stayed least integrated. <br />
	<br />
	<br />
	The region is home to two-fifths of the world's poor and accounts for only 3 per cent of global output. Intra-regional trade has stagnated at around 5 per cent of its total trade for some time now compared to around 20 per cent in Latin America. Even Sub-Saharan Africa, with poor transport and telecommunication infrastructure, scores over South Asia, with over 10 per cent of its trade being intra-regional. The SAARC members have retained a plethora of tariff and NTBs, which greatly inhibits trade and investments in the region. With a large list of negative items, the trade basket remains very narrow, with little value addition. Thosapala HÃwag, Sri Lanka's Ambassador to Nepal recommends, We should be able to come up with some kind of consensus within the region so that tariff and non-tariff barriers are removed.<br />
	<br />
	<br />
	The major cross-border structural rigidities include behind-the-border barriers in customs procedures, poor transport links, weak networking of private sectors, and administrative issues such as visas. Foreign direct investment (FDI) too is minimal, due to regulatory issues and a non-facilitative business environment. We do generate and agree on good ideas in this region time and again but fail to give them shape because of our many conflicts as there is a serious lack of trust among SAARC countries,says Chandra Kumar Ghimire, Joint Secretary at the Ministry of Commerce and Supplies (now Consulate General of Nepal to Kolkata). <br />
	<br />
	<br />
	To make the SAARC regional trade bloc effective, the progress in duty-concession by the nations is not adequate. The participating countries were supposed to reduce the number of products from the negative list year-on-year for nations to enjoy a zero-duty facility under the SAARC umbrella after a certain period. But the progress in this regard has not been on expected grounds. Business leaders representing different trade bodies among the SAARC nations have been urging their governments to further liberalise their respective economies to help augment intraregional trade, consequently effecting the region's development. There is a serious leadership deficit in South Asia where no country or leader has become an advocate of regional integration to help us overcome difficulties and ensure development, Prof Khatri observes. <br />
	<br />
	<br />
	India, by virtue of being the largest economy in the region and its geographic position, is viewed as the member that bears additional responsibility towards intraregional economic integration. While India's trade with South Asian countries has increased considerably over the years, it is still below the potential trade levels. India, a connecting land mass, has a special responsibility in increasing intra-regional economic integration and facilitating access to its large markets for SAARC members. The idea that we had envisioned for SAFTA around a couple of decades ago has not materialised and that’s why we see a country like India establishing relations with other RTAs, for example, ASEAN,” Ghimire laments. <br />
	<br />
	<br />
	Its above-average growth, expanding middle-class population, and demand for global goods can prove to be an engine of growth for the region. India's trade with South Asian countries has increased encouragingly, in the last half-a-decade or so, but much trade is below the official radar. Further, India's trade with countries such as Nepal, Bangladesh, Sri Lanka and Afghanistan remains heavily skewed in its own favour. The services trade further adds to the trade imbalance, leading to concerns among other South Asian countries about trade sustainability. <br />
	<br />
	<br />
	<strong>The Way Forward </strong><br />
	<br />
	<br />
	The SAARC region has an immense potential for using economic integration to reduce poverty and move towards prosperity. Three areas offer large potential for economic cooperation the services trade, energy cooperation and logistical connectivity. The development of logistical hubs that facilitate the flow of trade across the region can greatly reduce the costs of doing business. These logistical hubs can help connect critical regional corridors, especially with countries having no common borders. The countries in the region will have to look into their infrastructure and ways of connectivity in order to increase regional trade, says HÃwag.</p>
<p>
	 </p>
<p>
	Tourism, a major growth opportunity for countries like Afghanistan and Nepal, remains constrained by security problems. Allowing intra-regional trade in services can enable South-Asian economies to become more globally competitive. Energy and electricity cooperation are non-traditional areas of trade relationship development. For example, Bhutan has managed to balance its trade with India with large exports of hydroelectric power, and similar potential exists for Bangladesh and Nepal. <br />
	<br />
	<br />
	An integration of electricity grids across South Asia can reduce power costs and enhance manufacturing competitiveness for all members. Huge hydro-electric potential exists in Nepal, Bhutan, Afghanistan and India, which could be tapped for intra-regional power trade. Each country has its own strength so we have to be able to nurture and benefit from areas of comparative advantages,feels Shrestha. Just days ahead of the SAARC Summit in Maldives, Pakistanâ's initiative to grant Most Favoured Nation (MFN) status to India was considered a major breakthrough. As far as trade goes, the move promises to help the economies of both the countries over a longer period of time. <br />
	<br />
	<br />
	Experts and analysts observe the major initiative can also prove to be an important step to help stabilise the region, struggling to combat poverty and achieve economic reliability in the wake of US and Eurozone debt crises. It would also pave the way for economic integration of SAARC countries and the prospects of the region thriving seem brighter than ever before. At the Maldives Summit, Indian Prime Minister Dr Manmohan Singh announced Indiaâ's decision to slash the sensitive list for least developed countries within SAFTA, reducing it from 480 tariff lines to just 25.</p>
<p>
	 </p>
<p>
	India has stated that zero basic customs duty access would be given for all the items removed, with immediate effect. There should be an attempt to create an incentive for the partner countries in the region to be able to export to a country like India,” Adhikari recommends. As things stand, SAARC as a regional bloc leaves a lot to be desired. However, SAARC has a good trade potential as the economies of a number of SAARC nations are growing fast, observers opine. The countries seem to be on the path towards eliminating tariff barriers and reducing NTBs against each other. It's time for the South Asian countries to think collectively in order to cash in the opportunity of emerging as a regional force to reckon with. <br />
	 </p>',
			'published' => true,
			'created' => '2012-01-27',
			'modified' => '2012-08-23',
			'keywords' => '',
			'description' => 'The 17th Summit of South Asian Association for Regional Cooperation (SAARC) held on 10-11 November this year adopted the Addu Declaration which lays emphasis on effective implementation of the SAFTA (South Asian Free Trade Area) accord among its member states. The heads of the eight member countries  Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka at Addu city in Maldives discussed regional issues in an effort to take SAFTA forward.',
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			'id' => '526',
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			'title' => 'See The Sea Change',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="" border="1" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/madanlamsal.jpg" style="width: 103px; height: 127px;" vspace="10" /><br />
	<strong>By Madan Lamsal <br />
	</strong><br />
	<br />
	It is hard to believe that the times have changed, so fast. Anywhere you may go, you are sure to find that things have really changed. <br />
	<br />
	<br />
	In the past, the industrialists used to run the hotels, factories or companies. But at present it is the trade unions that do that job. In the past the businessmen had lot of money, today all the money is either with the politicians and bureaucrats or dons. In the past it was License Raj, today it is Goondaraj, which is claimed to be the Nepali version of free market economy. Therefore, in the past one got the license after the officers felt the criteria were met.</p>
<p>
	 </p>
<p>
	<img alt="" height="249" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/laugingmatter.jpg" width="400" /><br />
	<br />
	In the past, the job of the police was to prevent the thieves from stealing or the robbers from looting those connected to Narayanhity Durbar, now their job is at jeopardy if the let-loose bandits connected to the Durbars at Paris Danda, Balkhu and Sanepa is even suspected by the police. These days people feel comfortable to see the bandits to whom they pay weekly charge called hafta. Rather they disdain the appearance of politicians who nowadays enjoy the larger chunk of the same hafta. <br />
	<br />
	<br />
	The public corporations used to be rich by earning handsome profit. Now the affluence has shifted to their employees and politicians and the corporations are in ramshackle. In those old good days, sick people used to get good after visiting a doctor. But today, even a healthy person becomes sick as soon as he/she sees the one. There was a time when fat man in the street generally meant a businessman or a rich fellow. Businessmen used to run or morning walk to burn their fat. <br />
	<br />
	<br />
	Today, all their fat is taken away some by the banks, some by the politicians and some by the extortionist Goondas. But now, they who are in trouble don't need to panic thinking about the tricks of suicide. It is just that they need to come out of building home or office, a shooter might be standing right at the doorstep to facilitate his journey to heaven. Originally, educational institutions were means for social service and were opened to educate and inculcate moral values and culture in the heads of the students. Today schools and colleges are opened solely for profit. Students too, used to attend the classes. <br />
	<br />
	<br />
	Their objectives these days is to be in demonstrations and at the service of political leaders if they are in the government colleges, or for dating if they are from five-star private colleges. Even the fashion has gone a sea change. Those were days when the girls had long hairs and wore the earrings. Today it is just the opposite - the boys have taken up the girls fashion and vice-versa. Nowadays men have started to marry men and women have started to marry women. Dating spots too have changed from the zoos and parks to the shopping malls or department stores. <br />
	<br />
	<br />
	These are only a few instances of a massive changes that are going around us. But it is the media that has failed to embrace the fast pace of changes. Like in the past most media enjoy portraying good to a political patron regardless of how bad he could be. <br />
	<br />
	<br />
	So, is not it the time to change for media too? <br />
	 </p>',
			'published' => true,
			'created' => '2012-01-21',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'It is hard to believe that the times have changed, so fast. Anywhere you may go, you are sure to find that things have really changed.',
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			'id' => '525',
			'article_category_id' => '46',
			'title' => 'Sunil Kaushal',
			'sub_title' => '',
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			'content' => '<p>
	<span style="font-size: 14px;"><strong><br />
	</strong></span></p>
<p>
	<span style="font-size:14px;"><strong>We Are Focused On The Basics Of Banking<br />
	</strong></span></p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img alt="" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview(5).jpg" /><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>Sunil Kaushal</strong> is the newly appointed Chairman of Standard Chartered Bank Nepal Limited. Kaushal is likely to assume a senior role in the South Asia region, the announcement of which is likely to happen soon. He is currently the President and CEO of Standard Chartered Bank (Taiwan) Limited. He has over 23 years of banking experience and held several senior roles with the bank across different markets including Global Head SME Banking and New Ventures in Singapore. Prior to joining Standard Chartered Bank, he had also worked for Bank of America and HDFC Bank. In an interview with Pinaki Roy of New Business Age, Kaushal shared his views on the global banking scenario and Standard Chartered Bank's presence in the key world markets. Excerpts: <br />
	<br />
	<br />
	<strong>You have been appointed the new Chairman of Standard Chartered Bank in Nepal. What kind of vision do you have in mind for Standard Chartered Bank's operations here in Nepal? <br />
	</strong><br />
	<br />
	First of all, I think you would appreciate that we have created a very solid platform in the last 25 years in Nepal. At our AGM held recently, we declared a solid set of results given the tough market environment that prevails. The vision is to build on a strong platform that we have got here. We are very well positioned for a balance across wholesale as well as consumer banking, in the years to come. <br />
	<br />
	<br />
	<strong>You have been at the helm of affairs in Taiwan for quite some time now. Could you highlight some interesting events during your tenure while heading Taiwan operations? </strong><br />
	<br />
	<br />
	I have been fortunate enough to have worked at many locations outside my home country and Taiwan has been one of the overseas postings for me. Taiwan was particularly interesting for the bank because we had three acquisitions there. What was also quite interesting was the acquisition of a bank Hsinchu International Bank that was much larger than ours. The other two were Asia Trust Bank (for licensing) and American Express Bank (global acquisition). It was about assimilating the culture putting the three acquisitions together, integrating them and then building on the platform. The results of Taiwan have been pretty strong. <br />
	<br />
	<br />
	<strong>How has Standard Chartered differentiated itself as a bank when compared to some other global banking giants in terms of performance and branding? </strong><br />
	<br />
	<br />
	In terms of performance, we have delivered time and again as well as enjoyed great ratings upgrade for as long as one can remember. If you look at our share prices, we are one of the few banks which trade at premium to book value. We are present in the right markets Africa, <br />
	<br />
	Asia and the Middle East which stayed relatively better even during the financial crisis. And when the recovery happened on an absolute basis, these markets did fantastically well. We have a long history in these markets around 150 years presence in most of them so we have the depth and breadth of relationships in these markets. <br />
	<br />
	<br />
	Our strategy has been very clear in terms of focusing on these markets and relying on the basics of banking to deliver our performance. We have been there for our customers by being open for business and that is a very big thing. It is as big today at a time when big institutions globally are undergoing stress, talking about cutting headcount and reducing presence. On the contrary, we are still very much in a growth mode so we stand in a unique and differentiated position. We were the only international bank which consistently delivered record profits even during the financial crisis whereas most banks were struggling to break even. <br />
	<br />
	<br />
	Standard Chartered brand has been created over a period of time and we owe it to the management teams in different markets for taking the right decisions with the depth of the local knowledge that they have. The trust that the bank has created over time is especially evident during financial crises when we always see a flight to quality in terms of the customer deposits coming to us. We have proven that people feel secure while trusting their money with us. The best part is that we don't rest on our laurels and continuously try to keep ahead of the market. These are challenging times globally but we are very well positioned and quite differentiated from the competition. <br />
	<br />
	<strong><br />
	Despite the global economic crisis, Standard Chartered Bank figures among the largest profit earning international banks. How do you view this success? </strong><br />
	<br />
	<br />
	It is about being distinctive in our strategy which has resulted in our differentiated financial performance. In fact, we have delivered eight straight years of record profits, and are the only international bank to have received a ratings upgrade by all the three global rating agencies since the start of the financial crisis. Our performance, as you mentioned, has been very strong in the closing statement that we came out with recently which reiterates our differentiated position further. <br />
	<br />
	<br />
	Among the reasons for this is that we are focused on the basics of banking having a strong capital base, focusing on our clients and customers, having a strong balance sheet in terms of liquidity and being open for business. Besides, we are present in the right markets Asia, Africa and Middle East which are actually experiencing good growth as compared to the west which is facing challenges that all of us are aware of. <br />
	<br />
	<strong><br />
	Of late, the financial world is again embroiled in a crisis of sorts, like the Eurozone debt crisis. How do you analyse this situation and what kind of impact will this have on the banking scenario across different markets? </strong><br />
	<br />
	<br />
	In terms of global impact, we have all been hearing about banks wanting to require potential recapitalisation. The impact is applicable across all markets as some of the European banks pulled back because they had to reduce their risk related assets. These banks had to reduce their exposure so that the capital comes up to the level of 9 per cent that EU has mandated by the middle of next year. It's very difficult for them to go out and raise capital at this price when they are not into utilizing their earnings. <br />
	<br />
	<br />
	There is clearly a stress on liquidity for certain banks because of the fear of the exposure that they have to the European markets. Fortunately, for a bank such as ours which has no exposure to the distressed markets in Europe, it creates opportunities for us given the funding, strong balance sheets and capital position that we have. We are looking at these opportunities in different markets and monitoring them quite closely. <br />
	<strong><br />
	<br />
	Standard Chartered, as I understand, has always propagated organic growth. Do you think there will ever be a shift in this line of thought and probably the bank could look at the issue of mergers and acquisitions more favourably in the foreseeable future? <br />
	</strong><br />
	<br />
	If you look at the last decade or so, our focus is absolutely on organic growth but we have local opportunities which are inorganic as they presented themselves. Therefore, more than being a matter of choice, it is about having the right blend. Though we are focused on organic growth as a bank, we will surely consider if a right opportunity comes up. <br />
	<br />
	<br />
	<strong>Tell us about Standard Chartered Bank's India and South Asia operations which you are tipped to take over in due course? </strong><br />
	<br />
	<br />
	India is huge for us and South Asia is big for us as a region and I am excited about the opportunity. <br />
	<br />
	<br />
	In terms of market situation, it will be obviously different from my posting at Taiwan which was already a developed market. But I also have been through different roles globally which provided me with an opportunity to look at diverse markets from Korea in the east to Nigeria in the west. Therefore, I do have the understanding of managing different markets and challenges are something that I always look forward to. <br />
	<br />
	<strong><br />
	You have also been the Global Head for SMEs and New Ventures in Singapore. What are your plans to this effect for your operations in the South Asia region? </strong><br />
	<br />
	<br />
	The SME sector is already quite large for us in the markets in South Asia. It's about building on the strong track record that we have in the sector. SMEs are the core to any economy typically when they constitute 90-95 per cent of the enterprises and contribute 65-70 per cent of the employment. Even during the financial crisis, we have been out there supporting the SMEs and again that is something which differentiates us. SMEs augur well for South Asia as there is potential growth in the economies because of the sheer confidence of SMEs to the economies in the region. <br />
	<br />
	<br />
	<strong>Talking about India, there are recent reports that suggest the Indian economy may not be growing at the same breakneck speed that it so promised until about a couple of years ago, for a variety of reasons. How big an impact will it have on the fortunes of the banking conglomerates in the country? </strong><br />
	<br />
	<br />
	One has to look at the situation in terms of the overall context. India has had very strong growth in the past many years.There are some signs of moderation but I think it is only a short term phenomenon there is no denying the fundamental strength of the economy and we as an organisation are very bullish about the long term potential of the market. The big story about India remains unchanged in terms of its medium and long term prospects; we should not read too much into a slowdown in the last few quarters. <br />
	<br />
	<br />
	<strong>Standard Chartered Bank's profits in India have come under pressure after five years of accelerated growth. How, do you think, a difference can be made in this context? </strong><br />
	<br />
	<br />
	Standard Chartered in India has had a fantastic growth over the last decade or so and the team there has done an incredible job, with profits growing fivefold in the last five years. As I said, it's a short term blip and clearly, there are immense opportunities in the Indian market. We are well positioned as an institution having been in that market for 150 years, to really capitalise on the growth opportunities the economy presents. <br />
	<br />
	<br />
	<strong>China is the fastest growing economy in the world. How well placed is Standard Chartered Bank in the country given its immense potential? </strong><br />
	<br />
	<br />
	We do have a sizeable presence in China with a fully-owned banking subsidiary which operates over 70 outlets. We will very soon be looking at crossing the 90 mark in terms of the outlets that we have in the country. We have been present in China for around 150 years and it's one of the fastest growing markets for our bank in terms of revenue momentum and growth. <br />
	<br />
	<br />
	So, the Chinese market has immense opportunities for us and a bank such as ourselves, is very well positioned given our long history in that particular market. We can certainly be more aggressive in China but we also have to balance the opportunity with the investment. And I don't think we have held back on any investment in China as it's a market where we see great potential and growth.</p>
<p>
	 </p>',
			'published' => true,
			'created' => '2012-01-21',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'Sunil Kaushal is the newly appointed Chairman of Standard Chartered Bank Nepal Limited. Kaushal is likely to assume a senior role in the South Asia region, the announcement of which is likely to happen soon. He is currently the President and CEO of Standard Chartered Bank (Taiwan) Limited.',
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	(int) 14 => array(
		'Article' => array(
			'id' => '523',
			'article_category_id' => '47',
			'title' => 'Dreaming Big',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<img align="right" alt="" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/golcha.jpg" style="width: 339px; height: 589px; margin: 10px; padding: 10px;" vspace="5" />Young , dynamic and a businessman at heart, Hemant Golchha is the Executive Director of Golchha Organisation, a leading corporate house of Nepal with a nearly 100 year long history. He is one of the successful young entrepreneurs who dreams success for his ventures and goes about achieving them. Ram Lal Golchha, the great grandfather of Hemant Golchha, sowed the seeds of Golchha Organisation almost a hundred years ago. He started the business with exporting jute from Nepal to industries in India. The business gave him lucrative returns and inspired to venture into other projects. Golchha says that his great grandfather had played an important role in establishing the first industry of the nation&nbsp; Biratnagar Jute Mill. Ram Lal Golchha established his own jute industry followed by steel industries. </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	He never looked back and a perpetual growth always followed the Golchhas. Hemant Golchha is a fourth generation businessman and his five younger brothers have also joined the business. He has put his efforts with new vision and thoughts to steer the family business in new areas. He has the promise to lead the organisation with the same dignity and success that his earlier generations had achieved. Golchha grew up in a close-knit joint family and his childhood was not completely different than any other child's. He recalls having fun during the days when relatives gathered at home for festivals. He says, It was a lot of fun and I enjoyed growing up in a joint family. We used to have a good time with school friends as there was nothing to worry about. He would visit Biratnagar for festivals where half of his family members were living. </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	Despite being from a privileged family, he was taught to be honest, humble, simple, truthful and unpretentious about being wealthy. Our modest ways made sure that the family enjoyed a certain level of respect in the community. We never ran businesses solely for the purpose of making money, says Golchha. Golchha completed his schooling from St Xavier's School at Jawalakhel and then attended St Joseph's College of Commerce in Bangalore for his intermediate and undergraduate degrees. He regrets that he could not pursue a master's degree once he started shouldering business responsibilities. He recommends youngsters to complete studies before joining business. </p>
<p style="text-align: justify;">
	Once you get involved with a business, it is difficult to find time, he reasons. After returning from Bangalore, he spent around two years training with various industries in Nepal and Australia and joined his family's business in 1992 at the age of 24. G o l c h h a w a s g i v e n t h e responsibility of managing Koshi Metal, a tin container manufacturing industry in Biratnagar. To his credit, he successfully made it a profitable proposition from being a loss bearing industry. In his much younger days, he aspired to be like his great grandfather. </p>
<p style="text-align: justify;">
	I always wanted to be like him and follow the path he has shown&nbsp; the path of integrity, dedication, honesty and no compromise between business and hard work, he explains. Vijay Mallya, a celebrity businessperson from India inspired him to live life king size and enjoy the wealth earned from business. It is not a bad thing to enjoy our earnings. He was one of my idols during my college days because of his lifestyle, says Golchha. He believes he was destined to be a business person since he was born in a business family. Everything moved gradually in the direction it was supposed to move and entering the business was his obvious goal. Golchha's maternal grandfather and uncle were into film making which has ignited a desire in him to turn a filmmaker some day. I have not thought about making movies as a profession but only as a hobby. I will definitely make a movie some day, he states enthusiastically. </p>
<p style="text-align: justify;">
	He was also active in motorsports during his college days that speak volume for his versatility. He asserts even if he was not born in a business family, he would have still pursued a career in business. Though, of course, he credits his family for what he is today and acknowledges that his business lineage made his job that much easier. Golchha's career that began with container manufacturing continued with added responsibility in other sectors as well. He was assigned to lead Shree Ram Sugar Mill in Rautahat since 1994. He made a historic move in the family's business by making inroads into remittance, tourism and housing sectors that were never part of business with Golchha Organisation. Equal to 25 per cent of Nepal's GDP is received in the country as remittance and another 25 per cent is from travel and tourism. If you do not have a presence in the areas that are equal to some 50 per cent of the nation's GDP, you cannot call yourself a large business house. This is what influenced my decision to venture into these areas, he says. Hulas Remittance has become one of the largest Western Union agents and figured among top ten money transfer companies in the country within five years of its commencing operations. </p>
<p style="text-align: justify;">
	<br />
	Golchha started a travel and tour company last year, Travel World Experiences, which focuses on inbound tours. He is optimistic that it too will prove to be a successful venture in due time. Meanwhile, he also decided to make a foray into the real estate sector in association with a few friends which resulted in the establishment of Shangrila Housing. Golchha believes that maintaining a leading position largely depends on performance. He says, You might do very well one year but you may not do so well the next. He is dedicated and focused to make sure that his businesses attain success and has no desire to hog the limelight. I want my projects to be more recognised than myself. My total joy lies in the success of my business ventures and the positions they hold in the market. Travel opportunities that come as part of doing business is one of the most charming aspects, he says.<br />
	<br />
	I also enjoy being at my office and like working with the team members who are more like my friends, he states. The financial crunch being experienced by the economy worries him a great deal and this is one aspect he does not like about doing business. With a very forthright vision about doing business, he philosophises, If I don't enjoy doing a particular business, I will rather do something else. Golchha believes that employees are the soul of a company and having a good team is essential for its success. If you compromise while putting together a team, your business will never succeed. We are only entrepreneurs and without a good team, we cannot do everything on our own, he says. He is of the opinion that it is important to provide good remuneration and environment for motivating the human resource. He says, It is vital to give people a sense of belonging.</p>
<p style="text-align: justify;">
	<br />
	He prefers to decide from the heart while dealing with colleagues, employees and customers. A workaholic during the initial days of his career, he has now changed his working style somewhat due to added family responsibilities. He gives a lot of time to his family and returns home early to spend quality time with his two children. He also plans a holiday every year with his family to explore a new destination. Likewise, he also takes out time for his friends and likes to hang out with them at coffee shops. Golchha likes to watch entertaining movies and listen to Hindi music during his free time and also plays games with his kids. He is quite a party animal and usually spends his Friday evenings at different parties booked by friends. He hits the gym regularly and runs for around half an hour every day. He has a long list to do before he dies. Going on a long road trip from Kathmandu to Europe via Iraq, Iran and the exotic lands, is one of them.</p>',
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			'description' => 'Hemant Golchha dreams big and believes he was born to be an entrepreneur. He credits
his identity to his companies and their successes and thinks that any dream
can be achieved with hard work, dedication and honesty.',
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		'Article' => array(
			'id' => '538',
			'article_category_id' => '34',
			'title' => 'LG Dashain Tihar Kya Sandar',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img align="bottom" alt="LG Dashain Tihar Kya Sandar" border="2" height="200" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/3rd.jpg" vspace="2" width="300" />Gopi Maharjan has won the bumper prize of LG 32” LED and Home Theatre under the festive scheme ‘LG Dashain Tihar Kya Sandar’ launched by CG Electronics. Maharjan, a Kumaripati resident won the prize with coupon number 007045 on the purchase of an LG Refrigerator. The scheme was launched to provide sure-shot gifts on the purchase of every LG product.  &nbsp;</p>',
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			'created' => '2012-02-21',
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			'description' => '‘LG Dashain Tihar Kya Sandar',
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			'id' => '537',
			'article_category_id' => '34',
			'title' => 'Sher Remit Ties Up With AFX FastRemit',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	Al Fardan Exchange Company LLC, a prominent financial institution of Qatar, and Sher Remit Pvt Ltd, a newly established remittance handling company of Nepal, have inked an agreement for mutual collaboration. Under the <img align="right" alt="" border="1" height="262" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/2nd-photo.jpg" vspace="2" width="300" />agreement signed in Doha, Sher Remit has become the principal agent in Nepal of AFX FastRemit – remittance wing of Al Fardan Exchange. According to Ashish Sherchan, Managing Director of Sher Remit, beneficiaries in Nepal can receive money remitted through AFX FastRemit from 900 agents of Sher Remit throughout the country or NABIL bank, as per their convenience.  &nbsp;</p>',
			'published' => true,
			'created' => '2012-02-21',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Al Fardan Exchange Company LLC, a prominent financial institution of Qatar, and Sher Remit Pvt Ltd, a newly established remittance handling company of Nepal, have inked an agreement for mutual collaboration.',
			'sortorder' => '441',
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			'title' => 'Czech-Nepal Investment In Trishuli III',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>Trishuli III, a 24.95 megawatt (MW) hydroelectricity project is being financed jointly by Czech Republic and a Nepali company. STEF Group, a Czech energy and Nepal’s Santoshi Hydropower will be mutually developing the project. The Czech company has also shown interest to invest in small hydroelectricity projects of up to 1 MW that are particularly suitable for rural electrification. Vishnu Kumar Agrawal, Honorary Consul of the Czech Republic in Nepal said that Czechs are interested to invest in three large hydro projects in Nepal. However, he refused to name the projects as the discussions are still in the primary stage. Narendra Kumar Basnyat, Acting President of Confederation of Nepalese Industries (CNI) said that Czechs are interested to expand business and investment in Nepal through cooperation.  
	 </p>',
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			'created' => '2012-02-21',
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			'description' => 'Trishuli III, a 24.95 megawatt (MW) hydroelectricity project is being financed jointly by Czech Republic and a Nepali company.',
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			'title' => 'Tourism Decade In Offing',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	The tourism promotional campaign, Nepal Tourism Year (NTY) 2011, is being extended into tourism decade. Dr Ganesh Raj Joshi, Secretary at the Ministry of Tourism and Civil Aviation said the ongoing campaign will be given continuity in the name of tourism decade to promote investment in this sector. “International promotional programmes scheduled during tourism year will be carried out only in 2012. That is why a plan of tourism decade is being formulated,” he said. He opined that the tourism decade should be celebrated till 2020 so that the excitement of NTY extends to rural areas. He also informed that the conclusion of NTY will coincide with the inauguration of Visit Lumbini Year 2012.</p>
<p>
	An extravagant ceremony is planned to be held in Lumbini for this purpose. The government had allocated Rs 130 million for tourism promotion for fiscal year 2011/12. However, the amount will only be spent in 2012. Joshi said the enthusiasm seen from the private sector, general public and political leadership is necessary to be continued further in the future too. The lapses of NTY can be corrected in the coming nine years long campaign, according to immediate past CEO of Nepal Tourism Board, Prachanda Man Shrestha. He also said that it is vital to introduce new and unique programmes to attract tourists every year.  &nbsp;</p>',
			'published' => true,
			'created' => '2012-02-21',
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			'keywords' => '',
			'description' => 'The tourism promotional campaign, Nepal Tourism Year (NTY) 2011, is being extended into tourism decade. Dr Ganesh Raj Joshi, Secretary at the Ministry of Tourism and Civil Aviation said the ongoing campaign will be given continuity in the name of tourism decade to promote investment in this sector',
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			'title' => 'ICT Association Elects New Working Committee',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<br />
	<img align="absMiddle" alt="ICT Association Elects New Working Committee" border="1" height="349" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/biz1.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	The ICT Association of Nepal has elected new executive committee for the period of 2011-2013. While Sagar Dev Lakhe and Bheshraj Poudel are reelected the President and Vice-President respectively, Roshan Bhandari and C N Upadhyay too have been reelected General Secretary and Treasurer, respectively. The new executive committee also has Shobhan Sainju, Dilip Kundaliya, Shirish Murarka, Nikhil Bansal and Sandesh Nyachhyon as members.</p>',
			'published' => true,
			'created' => '2012-02-21',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'The ICT Association of Nepal has elected new executive committee for the period of 2011-2013. While Sagar Dev Lakhe and Bheshraj Poudel are reelected the President and Vice-President respectively, Roshan Bhandari and C N Upadhyay too have been reelected General Secretary and Treasurer, respectively.',
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		'Article' => array(
			'id' => '533',
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			'title' => 'We Are Very Keen To Move The SAARC Free Trade Process Forward',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Jaideep Mazumdar" border="1" height="175" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-VI dec2012.jpg" vspace="10" width="300" /><br />
	<br />
	<strong>Jaideep Mazumdar <br />
	Minister and Deputy <br />
	Chief of Mission Embassy of India, Kathmandu </strong><br />
	<br />
	<br />
	<strong><br />
	How do you look at the overall regional trade in South Asia? </strong><br />
	<br />
	As everybody will say, it is not up to potential and a lot more can be done. Intra-regional trade within South Asia is only 5 per cent of the trade that the region has with the world. There is, of course, a potential and a huge opportunity for the countries within the region to improve on this figure. <br />
	<br />
	<br />
	<strong>How can connectivity be improved between India and Nepal to negotiate better transit? </strong><br />
	<br />
	In Nepal’s context, as you would be aware that we are building four integrated customs check posts along the border. The objective is that whenever there is a traffic movement between India and Nepal, there is a scientific borderly single place where everything is done – customs check, inspection of goods, clearing of consignments etc. We are also building five cross border railway lines wherein we are harmonising different gauges on both sides of the border as well as building new lines so that goods can come straight to Nepal and vice versa. <br />
	<br />
	To encourage third country trade with Bangladesh, we are building a railway line which will provide an exit from Bangladesh straight into Nepal. We have agreed to allow Vishakhapatnam as an alternative port for Nepal to trade with the rest of the world. We are also building 1,400 kms of roads which will open Nepal inter-land for trading with northern Bihar and northern UP in India along the Terai belt so the movement of goods will become easier. These kinds of connections and inter-linkages are being built to improve transit. <br />
	<br />
	<strong><br />
	How do you view economic diplomacy in the context of enhanced regional trade among SAARC nations? </strong><br />
	<br />
	I can speak for our foreign service that is the Indian Foreign Service, which puts a tremendous amount of importance on economic diplomacy which encompasses trade diplomacy. In all our embassies, we have designated officers who look after harmonising, increasing the trade and helping the private sector of the countries they are posted at. For trade diplomacy, we have an entire division in the Ministry of External Affairs in India which deals with such matters. <br />
	<br />
	<br />
	<strong>There seems to be a sheer lack of trust among nations on different issues. How big a deterrent is this for intra-regional trade? </strong><br />
	<br />
	Historically, there has been a problem between India and Pakistan that was a hindrance for intra SAARC trade. We now hope that things will move much faster and we have been very keen to move the SAARC free trade process forward. We have been doing our bit to ensure that free trade develops in the region. <br />
	<br />
	<br />
	<strong>India, being the centre of regional trade among the SAARC nations, could have played a more vital role in making the SAARC trade bloc effective. What are the reasons for India not being able to do so?</strong><br />
	<br />
	Of course, everybody could have done more. As I said earlier, the potential of intraregional trade in the SAARC region is too large and there is so much opportunity. It naturally means that the potential has not been achieved but it’s due to many factors. I think there is a realisation now among the countries in the region that we need to increase those linkages and move SAARC into a more integrated regional cooperation model. All the leaders have talked about it at the Maldives Summit and our Prime Minister has also spoken very strongly in favour of integrating SAARC. <br />
	<br />
	<br />
	<strong>Why is the trade in this region more oriented towards international trade rather than trading within the region itself? </strong><br />
	<br />
	You cannot generalise this. There may be some products which will have a market in the SAARC region while there may be some other which can find more lucrative markets outside the region. The very fact that intra SAARC trade is only 5 per cent does not mean that the objective should be to make it 100 per cent. For example, oil is always imported so it goes both ways – exports as well as imports. Even Bangladesh which produces so much of garments cannot look only at the South Asian market. People have very high buying power in Europe and North American countries so there are commodities which will find a market in that part of the world and not necessarily in South Asia. <br />
	<br />
	<strong><br />
	How do you view recent development such as BIPPA in the context of intra-regional trade? </strong><br />
	<br />
	BIPPA is an agreement which is just that – an agreement that was to encourage the investors of both countries to invest in each other. We have signed such agreements with more than 75 countries so having agreements with them does not mean that all those countries have invested in India. Therefore, the final decision on investment depends on many factors such as policy stability, security etc. BIPPA itself is only a facilitative document. <br />
	<br />
	<strong><br />
	What are the potentials of Nepal’s trade with countries in the SAARC region, especially India? </strong><br />
	<br />
	You can only export what you can produce. For most of the countries in the region, the exportable products are not adequate therefore countries like Nepal and Bangladesh have big trade deficits with India. Import wise too, if Nepal does not buy goods from India, it has to buy them from somewhere else simply because it does not produce those goods. For example, petroleum products have to be bought from India or some other country and if you buy it from a third country, you still have to transport it through India. If you don’t produce a certain commodity, you cannot trade that.  <br />
	<br />
	<br />
	Â&nbsp;</p>',
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			'created' => '2012-01-27',
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		'Article' => array(
			'id' => '532',
			'article_category_id' => '40',
			'title' => 'Intra-industry Trade Potential In South Asia Is Underutilised',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Ratnakar Adhikari" border="1" height="433" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-Vdec2012.jpg" vspace="10" width="300" /><br />
	<br />
	<strong>Ratnakar Adhikari <br />
	General Secretary <br />
	South Asia Watch on Trade, Economics and Environment (SAWTEE) <br />
	</strong><br />
	<br />
	<strong><br />
	What is the current status of Intra SAARC trade? </strong><br />
	<br />
	The intra-regional trade among the SAARC countries stands at 5 per cent of the blocks worldwide trade which has been the case for some time now. Intra SAARC trade has certainly increased over the years, however, there has been an increase in SAARC’s world trade too. Hence, the share of intraregional trade has remained constant. When compared to intra-regional trade in other trade blocs like ASEAN and EU, intra SAARC trade does look small. <br />
	<br />
	<strong><br />
	Why has SAFTA not been able to gainmomentum since its inception in 2004? </strong><br />
	<br />
	SAFTA has not been able to take off because of political as well as economic reasons. It was also affected due to the political tensions between India and Pakistan. Among the economic reasons, it’s the sensitive list that has affected SAFTA most wherein it was decided to have such a list but the types of commodities under the sensitive list was not ascertained. A mammoth 53 per cent of tradable commodities had figured in the sensitive lists of different countries in the region. <br />
	<br />
	<br />
	<strong>How can regional connectivity be improved to negotiate better transit and transhipment?<br />
	</strong> <br />
	There are a number of issues related to regional connectivity that can certainly be looked at if there is a proper intent to do that. For example, India is suffering from Bangladesh’s denial to allow transit through its territory which could have made it easier to reach the north-eastern part of India. Even Nepal can export tea to Pakistan but it will not be profitable sending tea via air cargo. If Nepal can export tea by using the Mahendranagar border to Pakistan via Wagah in Punjab, surface transport can deliver goods in 12 hours flat. But there has been no concrete talk with India on this matter. <br />
	<br />
	<strong><br />
	India, being the centre of regional trade among the SAARC nations, could have played a more vital role in making the SAARC trade bloc effective. What are the reasons for India not being able to do so? </strong><br />
	<br />
	It’s probably because they have analysed the cost and benefits and realised that it is better for them to look outside the region rather than concentrating their negotiating and political capital as well as resources in South Asia. India is not making any pro-active efforts to strengthen regional economic cooperation in South Asia whereas it should be actually promoting regional stability in South Asia which is eventually going to be in its own interest. <br />
	<br />
	<strong><br />
	Why is the trade in this region more oriented towards international trade rather than trading within the region itself? </strong><br />
	<br />
	Historically, most of the developing countries while talking about exporting manufactured products, always have the European, North American, Japanese and Australian markets in their minds. This has been happening for over a century now. Another problem in South Asia region is that most of the countries compete for the same market internationally. <br />
	<br />
	<strong><br />
	Can South Asia region be the production house as well as the market and be self suffi cient for trade? </strong><br />
	<br />
	Why not? I had actually proposed in one of my writings earlier that South Asia can become the textile and clothing production hub. I feel that intra-industry trade potential is not being utilised in South Asia to the extent possible. For example, Pakistan and India are among the best cotton producers in the world and we have state-of-the-art industries in the region that could process cotton into textile fabric. In Bangladesh, we also have one of the lowest cost manufacturers of garment in the world. The manufactured garments can then be sent to Colombo and utilising the shipping industry potential of Sri Lanka, they can be fast processed and shipped to markets abroad. This kind of modality can work in the region’s interest. <br />
	<br />
	<br />
	As for consumption of goods produced within the region, we can take the example of India already importing textile and clothing products from countries like Bangladesh and Nepal. And it should import even more from within the region rather than importing from countries like Thailand and China. There should be an attempt to create an incentive for the partner countries in the region to be able to export to a country like India. However, bureaucratic hassles, nontariff barriers, rules of origin as well as 4 per cent special additional duty imposed on an arbitrary basis have created problems. <br />
	<br />
	<strong><br />
	What are the differences in provisions of WTO and RTA? How does it affect the intra-regional trade? </strong><br />
	<br />
	Regional Trade Agreements (RTA) are meant to provide a platform for deeper level of integration when compared to WTO. You have to understand the fact that WTO actually does not actively discourage RTAs. By virtue of a legal provision within the WTO, it condones regional economic arrangements. In that sense, since SAFTA is deeper, trade within SAFTA should be higher than trade outside the region. By the same token, 67 per cent trade takes place within the region for EU while the figure is 60 per cent for NAFTA. It’s because they have deeper regional integration so there is no reason why SAFTA should not be able to replicate such successes. The regional economic arrangements are actually WTO plus. <br />
	<br />
	The only thing RTAs like SAFTA should learn from the WTO is that it should have a dispute settlement system that is fair, effective and credible. Due to the twotier (Panel and Appellate Body) system of dispute settlement in the WTO, any error of judgment by the panel can be corrected through appeal and actually, more than twothird of cases in the WTO are appealed.</p>
<p>
	As for effectiveness, the verdict of the dispute settlement body is almost invariably adopted because of the reverse consensus rules, which means that the verdict of the dispute settlement body would not be adopted only if there is a consensus not to adopt the report. The credibility factor comes into play because the threat of sanction imposed by the winning party through the decision of the dispute settlement body is plausible. There have been instances where sanctions have actually been imposed thereby forcing the losing party to bring its measures in conformity with the WTO rules. While advanced RTAs such as EU or NAFTA have very effective dispute settlement systems in the form of European Court of Justice and NAFTA Court, SAFTA does not have such a mechanism. This is one of the reasons why countries acting against the spirit of SAFTA also go scot free. <br />
	<br />
	 </p>',
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			'description' => 'The intra-regional trade among the SAARC countries stands at 5 per cent of the blocks worldwide trade which has been the case for some time now. Intra SAARC trade has certainly increased over the years, however, there has been an increase in SAARC’s world trade too. Hence, the share of intraregional trade has remained constant. When compared to intra-regional trade in other trade blocs like ASEAN and EU, intra SAARC trade does look small.',
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		'Article' => array(
			'id' => '531',
			'article_category_id' => '40',
			'title' => 'Economic Diplomacy Is The Present World Order',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Chandra Kumar Ghimire" border="1" height="330" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-IV dec2012.jpg" vspace="10" width="300" /><br />
	<br />
	<strong><br />
	Chandra Kumar Ghimire <br />
	Joint Secretary <br />
	Ministry of Commerce and Supplies (now Consulate General of Nepal to Kolkata) </strong><br />
	<br />
	<br />
	<br />
	<strong>What are the major differences in WTO and RTA provisions? How do they affect intraregional trade? </strong><br />
	<br />
	<br />
	WTO is a broader frame which is the legal basis for global trade arrangements and provides framework for the rule-based trading system of which RTA is an option. RTA's jurisdiction is area specific and has the involvement of likeminded countries which are similar in geographical, political or socio-economic aspects and enjoy certain proximity. The WTO's role is to provide the basis for legal framework and permit for RTAs. <br />
	<br />
	RTAs are WTO plus meaning a regional economic arrangement is expected to commit more. The commitment is for the intent of opening the market more for increasing trade volume through freer, broader, deeper and wider trade.</p>
<p>
	 </p>
<p>
	<strong>How is WTO treating RTAs? </strong><br />
	<br />
	There are already 400 RTAs that have come into being and there are more being developed. There are two dimensions and arguments to it. On a scholastic level, the argument is whether RTAs complement or contradict the WTO. The ones who advocate that RTAs complement the WTO say that regional economic arrangements help freer, wider and deeper trade. But the people believing in the philosophy of the other extreme say that RTAs are fragmenting global markets. However, broadly speaking, WTO has allowed regional economic arrangements under its legal frame and I believe the WTO has treated the RTAs in a positive way.</p>
<p>
	<br />
	<br />
	<strong>There are a host of RTAs such as SAFTA, BIMSTEC, ASEAN, NAFTA etc and an RTA is supposed to supersede WTO provisions. If WTO is to dominate all other agreements, what is its relevance at the end of the day? </strong><br />
	<br />
	<br />
	Let me first clarify that all RTAs are not effective, they are there as global ideas but not fully actualised. On a global level, WTO is supreme but it does not dominate other agreements by any means. RTAs do not have the mechanism for dispute settlements like the WTO does. The WTO is a mechanism which even drags a global power like the US to its tribunal and allows least developed countries (LDC) to have their say. Under WTO, the developing countries can also indulge in issue-based bargains with powerful countries which were not possible with RTAs without WTO's existence. <br />
	<br />
	If RTAs were to exist in all parts of the globe, the idea of regional economic arrangements will truly complement the WTO. Otherwise, the idea will not really hold much ground. The RTAs must be able to bring themselves into complete effect so that they can fulfill the ultimate aims of WTO rather than challenging its dominance.</p>
<p>
	<br />
	<strong><br />
	How do you view economic diplomacy in the context of enhanced trade relations between countries? </strong><br />
	<br />
	<br />
	Ever since the world came into being in its present unipolar form, there has been a change in the way diplomacy is being practiced. Today's power struggle is for trade and to become a winner in the âgain and loss scenario, which has resulted in a shift from conventional political diplomacy to economic diplomacy. This big transformation has brought about changes in the bureaucracy of many countries. In Nepalâ's context, we have been talking about economic diplomacy since the early 1990s but we have not been able to practice it at the real level. <br />
	<br />
	We do need political diplomacy with other countries, our immediate neighbour India for example, which is fundamental but the aim has to be for economic gains. In the present world order, we have to strive to gain by putting economic diplomacy into practice. The other countries in the region like Bangladesh and Sri Lanka have expanded their number of missions in different parts of the world exactly with this idea. <br />
	<br />
	They have been marching ahead with economic diplomacy by looking at the markets in different countries of the world. Even though we have the same agenda in Nepal, we lack a comprehensive outlook and have not been able to identify our potential markets worldwide. Accordingly, we could have expanded our missions whereas we are still stuck with the same missions that we had established in the 1950s and 1960s. <br />
	<br />
	We do not have a clear agenda even though of late, we have been able to identify countries where we could find a labour market. However, that's not sufficient because we need to tap opportunity and be able to pursue capital coordination. For this, we have to work in close coordination with ministries of economic content, the private sector and think tank institutions. India and China, our doorstep markets, are countries that are attractive for the entire world. On our part, we are leaving these arm-reach markets and looking elsewhere and therefore, ending up with virtually nothing. All the global powerhouses are targeting India and China for economic reasons and we should do the same. We should be able to shed the diplomatic legacy of the yore and start afresh.</p>
<p>
	<br />
	<strong><br />
	Why is the trade in SAARC region more oriented towards international trade rather than trading within the region itself? </strong><br />
	<br />
	<br />
	This is precisely the reason why we have not been able to gain from SAFTA. The idea that we had envisioned for the RTA a couple of decades ago has not materialised and that's why we see a country like India establishing relations with other RTAs, for example, <br />
	<br />
	ASEAN. The potential in SAARC region has not been able to take shape and India is not ready to bide time in this age of fast-paced globalisation. We do generate and agree on good ideas in this region time and again but fail to give them shape because of our many conflicts as there is a serious lack of trust among SAARC countries. Besides, we have adopted policies in the past not to bring our internal disputes to the table which is another deterrent.</p>
<p>
	<strong><br />
	<br />
	Is Nepal's bureaucratic level effort viable enough for trade enhancement without taking the private sector on board? </strong><br />
	<br />
	Trade enhancement is definitely not possible without the active participation of the private sector. The intensified level of interaction that should have been there between the private and the public sectors is seriously missing. Both the parties are responsible for this; they donate trust each other and often indulge in a blame game. We, the public sector, like to keep ourselves away from the private sector whereas we should be able to take them along. It is because we donate have a business friendly culture which has prevented us from partnering with the private sector in a substantial manner. <br />
	<br />
	On the other hand, the private sector has not been able to develop the appetite that is required to gain competitiveness. The private sector is still busy looking for quotas and concessional rates on tariff etc and create a playing field for itself. Besides, there are times when we expect the private sector to raise its voice or advice but they convey political messages instead of giving technical details or feedback. In the bargain, we miss their indepth expertise that we so desire. <br />
	<br />
	The private sector also lacks the preparedness that is required for public-private partnership (PPP). We do talk about PPP all the time, but it requires a certain level of discipline and pace which is definitely missing. Let me conclude by saying that we do have businessmen of high calibre in Nepal's private sector and one only hopes that the number of such businessmen is on the rise. <br />
	 </p>',
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	(int) 8 => array(
		'Article' => array(
			'id' => '530',
			'article_category_id' => '40',
			'title' => 'The Promises Of SAFTA Are Much Better',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="sridharkkhatri" border="1" height="477" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-III _dec2012.jpg" vspace="10" width="300" /> <br />
	<br />
	<br />
	<strong>Prof Sridhar K Khatri <br />
	Executive Director <br />
	South Asia Centre for Policy Studies (SACEPS) </strong><br />
	<br />
	<br />
	<br />
	<strong>The Promises of SAFTA are Much Better<br />
	</strong><br />
	<br />
	<strong>How do you look at the volume of regional trade in the South Asia? </strong><br />
	<br />
	Intra-regional trade between South Asia is very limited at this point of time. Despite the fact that SAARC has been in existence for the last 26 years, regional trade has not increased much. When SAARC started, it was around three to four per cent and today, it is still less than five per cent. The intra-regional volume of trade is something that has not increased for a variety of reasons. <br />
	<br />
	<br />
	<strong>What are the possible reasons for low trade in this region? </strong><br />
	<br />
	The truth is that SAARC as a regional organisation has not completely taken off. There are a lot of constraints that has contributed to this. There is asymmetry in sizes of countries involved in the region with India being the most dominant one. The second reason is that we also have conflict between India and Pakistan, which has in a way, obstructed the SAARC process. There have been opportunities at times when SAARC has shown promise. However, bilateral differences between India and Pakistan have held it back. We have had SAPTA (South Asian Preferential Trading Agreement) for a long time but that has not increased trade either because its structure was fundamentally limited in terms of offering opportunities to increase trade. That is something ASEAN used for a long time and did not have any significant impact. We made the same mistake in South Asia by going through preferential trading arrangement. SAFTA (South Asia Free Trade Agreement) was signed in 2004 but despite the agreement, it has not been implemented basically due to concerns between India and Pakistan. <br />
	<br />
	<strong><br />
	How do you view Pakistan granting MFN status to India in the context of intraregional trade? </strong><br />
	<br />
	The MFN status Pakistan has offered to India will change the nature of the game in South Asia provided there aren’t any other terrorist attacks on India or political impasses at certain points. I have been looking at South Asia for a long time now and my worry is that these hiccups tend to hold back the little progress that has been made. <br />
	<br />
	<strong><br />
	Why is the trade in this region more oriented towards international trade rather than trading within the region? </strong><br />
	<br />
	Trade beyond regions becomes more lucrative. For instance, India’s export to South Asia is around five per cent and the imports are less than three per cent. But its trade with South East Asia is nearly 25 per cent. Pakistan also has the same kind of figure because it is also looking at trade with South East Asia. Even Bangladesh’s largest trading partner right now is China and not India. Trade with European Union is also very substantial. Countries tend to export and have relations with regions where there is growth. However, if there is potential within South Asia, there will be investment and subsequently, trade. For that to happen, political barriers have to come down and their trust deficit problems have to be resolved. But again, there is no time frame for it because there are so many bilateral problems which countries need to overcome. And, in a way, South Asia also needs to be little more confident of the region by itself. There is a serious leadership deficit in South Asia where no country or leader has become an advocate of regional integration to help us overcome difficulties and ensure development. <br />
	<br />
	<br />
	<strong>How best can economic integration be used among SAARC countries to reduce poverty and move towards prosperity? </strong><br />
	<br />
	Integration in a way offers countries the chance to develop their economies in a very systematic manner. This means that if the countries are well developed and if they can progress by cooperating with each other, goods will be cheaper for the people to purchase. There is a programme in the SAARC process to eradicate poverty in the region and two commissions have already been formed on poverty eradication. These commissions have come up with significant measures and have talked about meeting the MDG (Millennium Development Goals). SAARC too has developed its own SAARC Development Goals where the focus has been on the people, however, SAARC has not been able to implement some of its programmes. <br />
	<br />
	<strong><br />
	How can regional connectivity be improved for better trade facilitation in the region? </strong><br />
	<br />
	There are significant measures that must be taken care of in terms of trade facilitation, implementing agreements on trade and reducing non tariff barriers (NTB). You can have an excellent agreement but if you have NTBs, it will make trade a difficult proposition. The possibility in South Asia is in infrastructure development which is very important. SAARC has already talked about connectivity in the region and has a SAARC Multimodal Transport Agreement in place. It has not moved very far but there are some positive signs already. In the just concluded summit in Maldives, an agreement on railways has been signed. There is also an agreement on movement of motorcars within South Asia which should have been signed at least a year ago. Movement of goods and people will be very important for the growth of the region. The trust deficit in South Asia has to be overcome to implement some of these programmes. <br />
	<br />
	<br />
	<strong>India is at the centre of regional trade among the SAARC nations. What roles, do you think, India is expected to play? </strong><br />
	<br />
	India has not only a prominent role but also a key role to play for the growth of SAARC and the benefit of the people in the region. Being a large country that is growing at an exponential rate economically, India can offer advantages to other member states of SAARC including Nepal. I do think that India is ready to move in this direction and we see signs of that but it wants to solve some of its bilateral problems with Pakistan first. I think SAFTA will take off now as Pakistan has promised MFN treatment to India. I believe that if there is substantial growth in trade between these two countries and within the SAARC members, India will be more forthcoming in the future. <br />
	<br />
	<strong><br />
	How do you rate the success of SAFTA and SAPTA? </strong><br />
	<br />
	SAPTA was pretty much an abysmal exercise that did not go far ahead. If we had looked at the ASEAN experience, we should not even have gone through the preferential trading arrangement. The promises of SAFTA are much better but the important element is to put it into practice. We had an exercise many years ago in Nepal and worked together with intellectuals, politicians and businessmen to see what they thought of free trade and if it stands to benefit Nepal. We concluded SAFTA will not benefit Nepal in the short run as free trade usually benefits the larger countries more. For a least developed landlocked country like Nepal, it is much harder to derive benefits. However, Nepal can benefit in the long run if we can have link trade with investment and other related benefits. If trade infrastructure can be developed, Nepal has the opportunity to benefit in the long run. <br />
	<br />
	<br />
	<strong>Do you see the possibility of India cannibalising its neighbours? </strong><br />
	<br />
	For India to grow, it does not need to ‘cannibalise’ small countries. India already has the potential to grow and is a major player in the world today. We have seen South East Asia and East Asia grow very fast. The next phase could be South Asia that can grow at a promising rate. India needs to be more generous towards smaller countries, offer opportunities and feel confident that the growth of smaller neighbours can be beneficial for India. I think that change in thinking is happening in India and will continue to happen in the years to come. <br />
	<br />
	<strong><br />
	What are the differences in provisions of WTO and RTA? How does it affect intra-regional trade? </strong><br />
	<br />
	WTO recognises regional trade agreements (RTA) and encourages them in a way to promote growth not only within countries but also in terms of facilitating trade among the regions in the world. So, it is compatible framework within the WTO framework. It does not obstruct RTAs and vice versa. In the last 15-20 years, a number of regional organisations have evolved at a phenomenal rate. We have seen the growth in Latin America, Africa and even in Asia. But what types of regional organisations have happened needs to be clearly looked at. Nepal is part of both SAARC and BIMSTEC where some of the activities overlap one another.</p>',
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			'id' => '529',
			'article_category_id' => '40',
			'title' => 'Economic Diplomacy Is Getting Sidelined By Political Diplomacy In The Regional',
			'sub_title' => '',
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			'content' => '<p>
	<span style="font-weight: bold;"><img alt="Pradeep Kumar Shrestha" border="1" height="261" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory-II_dec2012.jpg" vspace="10" width="400" /><br />
	</span></p>
<p>
	<strong><br />
	Pradeep Kumar Shrestha <br />
	Vice President <br />
	SAARC Chamber of Commerce and Industry </strong><br />
	<br />
	<strong><br />
	Economic Diplomacy is getting Sidelined by Political Diplomacy in the Regional <br />
	</strong><br />
	<strong><br />
	How do you look at the regional trade in South Asia region?</strong><br />
	<br />
	In the context of South Asian trade, trade movement is very low despite it being home to one fifth of the world's population. Intra-regional trade is less than five per cent which is something the business community of the region must take into account. Other regional bodies like EU and NAFTA have more than 50 per cent of the trade within their respective regions. Even though the countries in the SAARC region claim to be close, there exist a lot of hiccups. The mindset and attitude of the politicians and bureaucrats are not to the level expected in the 21st century. Besides political reasons, infrastructure connectivity, high cost of business, bureaucratic hassles plague the prospects of intra-regional trade. <br />
	<br />
	<strong><br />
	Do you see the possibility of India cannibalising all its neighbours? </strong><br />
	<br />
	India is growing at a fast pace. There is a saying, ˜If you have to grow, you cannot grow alone. You have to grow with the neighbours India is a big trading partner for all the countries in the SAARC region. India is big in each and every aspect compared to other SAARC countries. Considering the present scenario, if India really wants to be a superpower, it has to take its neighbouring countries into confidence. <br />
	<br />
	<br />
	<strong>Why has SAFTA not been able to gain momentum since its inception in 2004? </strong><br />
	<br />
	It is raised in every forum each year but the implementation aspect has been very slow. This is more due to political mindset and crisis of confidence than anything else. However, the fact is that we have to grow together and be interdependent rather than being dependent. SAFTA should have moved much ahead by now. Within the SAARC region, we have to look at increasing the trade volume. The attitude of building confidence, helping and sharing with each other is the way to go about it. <br />
	<br />
	<strong><br />
	Regional trade is being prioritised in other trade blocs such as ASEAN, BIMSTEC and EU. Why has the same not received equal priority within the SAARC trade bloc? </strong><br />
	<br />
	This is very unfortunate. The real fact of trade not really taking off in the region is because the two big countries- India and Pakistan having their own problems to deal with. These two countries should sit together and help us have a prospering regional bloc like EU, ASEAN, NAFTA etc. Unfortunately, what is happening is that we are talking of a region but in terms of sub-regions like Eastern India-Bangladesh, Nepal-Bhutan or India- Pakistan. Each country has its own strength so we have to be able to nurture and benefit from areas of comparative advantages. We, the business community, are seriously advocating for it but without the two big countries getting together and understanding the benefits for the region, the SAARC would not move the way we dream of. <br />
	<br />
	<br />
	<strong>By this, do you mean, economic and trade diplomacy is seriously missing among SAARC member countries? </strong><br />
	<br />
	I think economic diplomacy is getting sidelined and political diplomacy is taking over. However, it is a fact that without political understanding, the economy cannot take off. There could be other ways of bringing things closer like people to people contact. We have to understand each other and feel that we are part of the same region and accordingly, we can synergise the strength. But that is not happening and every country wants to move ahead on an individual level. <br />
	<br />
	<br />
	<strong>Why is the trade in this region more oriented towards international trade rather than trading within the region? </strong><br />
	<br />
	Most of the countries in the region are import based economies though we do have exportable items like garments, carpets and others. Nepal, India, Sri Lanka and Pakistan export same kind of products and end up competing in the same market. The level of purchasing power in the region compared to other regions of the world is less even though the middle class is coming up very fast. When we want to do something, we always look at the west. In regional trade, the cost of connectivity and transportation is very high. Bureaucratic hassles like procedural delays and documentations etc also play their respective roles. All these hassles are so grave that we prefer to go for countries outside the region without realising the availability and quality of products available within the region. We, the business community, have to change that and identify our areas, strengths, products, competitive advantages etc. There must be a feeling of ‘together we grow’ to begin with. <br />
	<br />
	<br />
	<strong>In the context of intra-regional trade, how do you view Pakistan granting MFN status to India? </strong><br />
	<br />
	This is a very positive development for both the countries. To tell you the truth, SAARC has not been able to move ahead because of these two big countries not able to understand each other. The MFN status will fuel reciprocity and can move on to other countries as well. For example, China and Taiwan had similar political problems once, however, their relations have improved considerably in the last few years. If political conditions and hiccups can be taken care of, investment and trade will get a boost. At the same time, other neighbouring countries too will be benefitted when relations between these two countries get better. <br />
	<br />
	<br />
	<strong>Can South Asia region prove to be a substantially big market to consume the production generated in the region and become self suffi cient on trade? </strong><br />
	<br />
	Yes, very much so. A big market is lying out there because of the size of the population. The size of human resources, natural resources, potentials and eagerness of the people doing business in the region can certainly make this region self sufficient. This region has everything but still we have not been able to do anything remarkable. In this context, if the countries in this region join hands with each other without any biased sentiment and mentality, it can definitely prosper. <br />
	<br />
	<br />
	<strong>What are the activities of SAARC Chamber of Commerce and Industry (SCCI)? </strong><br />
	<br />
	Since its inception, the business community has wished to see that business related problems are addressed and economic agendas are taken to a much bigger level. Unfortunately, that has not happened and the community is not very happy about it. We have not been invited to the summits in Male and Thimpu despite being an important part of the SAARC. Though, of course, we understand it was not because of their unwillingness to invite us but it was because of their logistics problems in Male and Thimpu. As for our activities, we have tried to increase the number of SAARC sticker visa to improve people to people contact in the region. We have asked for 200 to 500 visas for each country. If a businessman wants to travel, he cannot wait for a month to get a visa. We are advocating that the paper work has to be reduced and the existing bureaucracy hassles should be nominal. Every country has its own area of strength such as hydroelectricity, agriculture or tourism. There are a number of councils for such sectors under the SAARC CCI, chaired by a specific country for each council. <br />
	<br />
	<br />
	<strong>Have there been enough researches conducted on regional trading? What is SAARC CCI doing towards it? </strong><br />
	<br />
	Research and Development is talked about every time especially in the context of South Asia. I believe that more than 350 scholars in different agencies like World Bank, ADB, and UNCTAD are studying and seeing why South Asia has not been able to grow despite its potentials. Even in our chamber, we try to find out facts and figures as to why things are not happening in the region. I believe such findings will lead us towards making good decisions. <br />
	<br />
	<br />
	<strong>Has it been able to go beyond the concept of bilateral chamber in the true sense of regional level trade cooperation? </strong><br />
	<br />
	We are talking about sub-regional level which is more than bilateral. We understand that because of proximity reasons, Nepal being linked to Pakistan, Sri Lanka or Maldives is not possible. But linking Nepal with Bangladesh, Bhutan, India or BIMSTEC is a different phenomenon altogether. We are only talking about the eastern part of South Asia, for example, Bangladesh, Nepal and Bhutan. Efforts toward regional level trade cooperation is certainly moving but at a very slow pace. <br />
	 </p>',
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			'description' => 'In the context of South Asian trade, trade movement is very low despite it being home to one fifth of the world's population. Intra-regional trade is less than five per cent which is something the business community of the region must take into account. Other regional bodies like EU and NAFTA have more than 50 per cent of the trade within their respective regions.',
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		'Article' => array(
			'id' => '528',
			'article_category_id' => '40',
			'title' => 'SAARC Countries Should Work Towards Regional Cooperation To Achieve Growth',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Thosapala Hewage" border="1" height="251" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/coverstory_dec2011.jpg" vspace="10" width="400" /><br />
	<br />
	<strong>Thosapala Hawaga <br />
	Ambassador <br />
	Embassy of Sri Lanka in Nepal</strong><br />
	<br />
	<br />
	<strong><br />
	SAARC Countries Should Work Towards Regional Cooperation to Achieve Growth</strong><br />
	<br />
	<strong><br />
	How do you look at the regional trade in the South Asia region?</strong><br />
	<br />
	The regional trade in South Asia seems to be improving over the years but it is not up to the expectation. Compared to the past, the South Asian economy is more open today. The tariff rates have come down from 80-90 per cent in the 1990s to 20-25 per cent today and exports and imports together are equivalent to about 20 per cent of the regional GDP. SAFTA was expected to include all products, manufacturers and commodities. It is commonly accepted that negotiations under SAPTA will not be very effective in terms of inventing intra-regional trade in SAARC which is unfortunate. There are various possibilities of further improving regional trade within South Asia if countries can overcome the existing barriers. Remedies like substantial tariff cuts, removal of non tariff barriers, adequate trade related capacity building, and connectivity between the countries etc have to be implemented. The regional trade arrangements are in an interim state towards more efficient levels of globalisation. <br />
	<br />
	<br />
	<strong>Is there a possibility of India cannibalising all its neighbours? </strong></p>
<p>
	<br />
	It is difficult to say that India is cannibalising its neighbours. But, with the size of India and its economy, you can’t compare India with any of its neighbours. It is a vast and fast developing country and also the largest country in the region. Their contribution in terms of trade, tourism and economic growth is very high. It is extremely difficult for other countries to talk about balance of trade with India. However, India is having enough problems itself that needs to be resolved first such as regional disparity, low human development index (HDI), poor connectivity etc. India is by far the largest economy in the region and the second largest fast growing economy in the world. South Asia region needs India for its economic prosperity as much as India needs the region for its continuing prosperity. <br />
	<br />
	<br />
	<strong>How do you view trade diplomacy in the context of enhanced regional trade among SAARC nations? </strong><br />
	<br />
	When people talk about diplomacy, they talk about trade diplomacy because that is especially needed by countries in the region. Trade diplomacy in the context of regional trade among SAARC nation is positive and can be further improved. The member countries of the SAARC, I believe, should work towards regional cooperation in order to achieve growth. When there is regional growth, regional trade will definitely go up. If the member countries can develop a regional cooperation and agree upon certain things, a particular country can then focus on its available resources within its territory. <br />
	<br />
	<br />
	<strong>India, being the centre of regional trade among the SAARC nations, could have played a more vital role in making the SAARC trade bloc effective. What are the reasons for India not being able to do so? </strong><br />
	<br />
	As far as I know, India, being the centre of regional trade among the SAARC nations, is playing a vital role in making the SAARC trade bloc effective. However, there are issues among the SAARC nations that need to be resolved in order to make it more effective. India too has its own problems that it needs to resolve. But I believe India can play a major role with regard to development of regional trade in the region. <br />
	<br />
	<strong><br />
	Why is the trade in this region more oriented towards international market than trading within the region? </strong><br />
	<br />
	The trade in the SAARC region is more oriented towards international market probably due to the trade relations that have been developed with countries outside the region over a long period of time. There is also this attraction to trade with countries outside the region because of the high market price for products in the international market. The international destinations have far more secure markets and offer good prices and hard currency. I do agree that trading within the region is not up to the expectations, however, I believe this can be resolved through agencies like SAARC. Actually, SAARC can play a proactive role in the development of trade within the region. They are doing it already but my feeling is that they can do more. Regional cooperation and agreements like SAFTA, SAPTA etc need to be beneficial to all the countries. In order to do that, we have to identify proper people, train them and realise their services, so that we can request them to negotiate for the benefit of their respective countries. <br />
	<br />
	<br />
	<strong>Do you think that tariff and non tariff barriers contribute towards low intra-regional trade? </strong><br />
	<br />
	When the tariff is high, the prices of the goods also go up. Therefore, the countries must look at removing non tariff barriers. We can come up with some kind of consensus within the region so that tariff and non tariff barriers are removed. This, of course, needs to be done in consultation with the member countries of the region. <br />
	<br />
	<br />
	<strong>Can South Asia region prove to be a substantially big market to consume the production generated in the region and become self suffi cient on trade? </strong><br />
	<br />
	I think the South Asian region produces various products that are required for the region and it can certainly prove to be a market big enough to consume them. But the point is that one country has to produce products which the other country doesn’t produce so that you will have an assured market. Basically, what I can see is that most countries in the region produce similar goods and that’s where the problem lies. For example, Sri Lanka produces garments and at the same time, countries such as India, Bangladesh, Nepal and Pakistan also produce garments. Invariably, they have to go outside the region in search of a market for the same product. Hence, you have to have a common agreement with the countries in the region to address this issue. But this is not an easy task unless the countries in the region are committed to do so because each country is concerned about its own benefits. You can have a win-win situation only if there is a give and take policy in place. <br />
	<br />
	<br />
	<strong>What are the problems in expanding regional trade? What are the potentials of trade development? </strong><br />
	<br />
	Trade barriers such as high tariff, double taxation, lack of connectivity among the countries are some of the problems apart from what we have already discussed earlier. The countries have to look into their infrastructure and ways of connectivity in order to increase regional trade. The size of the economy is another issue that you need to look into, for example, India is a huge economy when compared to its neighbours.<br />
	<br />
	There is also the issue of underutilisation of resources which is a cause of concern. If we can resolve these issues, we will certainly be able to expand our regional trade. <br />
	<br />
	The potential for trade development is immense because all these challenges can be turned into opportunities. But we must make sure that we look at tapping the untapped resources. The barriers too need to be taken care of. I believe we will be able to prosper if we think of the entire region rather than only be bothered about our respective countries. <br />
	<br />
	<br />
	<strong>How would Sri Lanka like to represent itself as a brand in the region? What are the prospects of trade for your indigenous products in the region so that you donâte have to look beyond? <br />
	</strong><br />
	If you look at certain products like garments, gems and jewellery and herbal products, we do have the advantages. The market for these products is within the region as well as outside of it. Some of the products have already been accepted and valued by the region. If we produce in accordance with the region’s requirement, we can definitely carve a niche for ourselves. For example, we can design gems and jewellery in a way that caters to the tastes of people of other countries. I am positive that Sri Lanka can definitely expand its trade in the region as time passes.</p>
<p>
	 </p>',
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			'description' => 'The regional trade in South Asia seems to be improving over the years but it is not up to the expectation. Compared to the past, the South Asian economy is more open today. The tariff rates have come down from 80-90 per cent in the 1990s to 20-25 per cent today and exports and imports together are equivalent to about 20 per cent of the regional GDP. SAFTA was expected to include all products, manufacturers and commodities.',
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			'title' => 'Trade Of Hopes In South Asia',
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			'content' => '<p>
	<img alt="trade hopes" height="274" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/tradeofhopes.jpg" width="300" /><br />
	<br />
	<br />
	<strong>Trade of Hopes in South Asia <br />
	<br />
	<br />
	New Business Age Bureau </strong><br />
	<br />
	<br />
	The 17th Summit of South Asian Association for Regional Cooperation (SAARC) held on 10-11 November this year adopted the Addu Declaration which lays emphasis on effective implementation of the SAFTA (South Asian Free Trade Area) accord among its member states. The heads of the eight member countries&nbsp; Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka at Addu city in Maldives discussed regional issues in an effort to take SAFTA forward. I think there is a realization now among the countries in the region to move SAARC into a more integrated regional cooperation model, says Jaideep Mazumdar, Minister and Deputy Chief of Mission at the Embassy of India in Kathmandu. <br />
	<br />
	<br />
	The declaration also includes measures to be taken to promote free flow of capital and investment and improve connectivity within the region. This year's Summit has decided to consider reducing non-tariff barriers (NTBs) and ad valorem (Latin for according to value) duties to promote freer trade. The SAFTA Ministerial Council has been directed to work on reducing sensitive lists, early resolution of NTBs and expediting the process of harmonising standards and customs procedures. Economic cooperation within the region is often viewed as a key tool for deeper integration within the region.] <br />
	<br />
	<br />
	Having recognised this, SAARC had initiated the SAARC Preferential Trading Agreement (SAPTA) as early as 1993, which later evolved into the SAFTA in 2004 and came into effect in 2006. there has been an increase in SAARC's world trade too. Hence, the share of intraregional trade has remained constant. In comparison, intra-regional trade under the Association of South East Asian Nations (ASEAN) is 32 percent, while it is 52 percent in the EU bloc and 68 percent in the USA and Canadian bloc. These trade blocs have also proved to be a tool for development for the participating countries within their respective regions. <br />
	<br />
	<br />
	<strong>Intra SAARC Trade </strong><br />
	<br />
	<br />
	While there have been several initiatives to promote trade among the region, a host of tariff and NTBs maintained by the member countries, the exhaustive negative list and the smallish trade basket have curtailed the growth of trade and investments in South Asia for long. According to an estimate, intraregional trade among the SAARC member nations (excluding Afghanistan which ratified the SAFTA protocol only in May this year) stood at $ 14.35 billion in 2010-11, an increase of 43.4 per cent vis-a-vis the same period in the previous fiscal. <br />
	<br />
	<br />
	The figure is approximately 5 percent of their total overseas trade in a year which is one of the lowest intra-regional trade volumes for any particular trade bloc. Ratnakar Adhikari, General Secretary of South Asia Watch on Trade, Economics and Environment (SAWTEE) says, “Intra SAARC trade has certainly increased over the years, however, <br />
	<br />
	<br />
	<strong>Unfulfilled Potential <br />
	</strong><br />
	<br />
	Staying true to the theme of Building Bridges, this year's SAARC Summit focused on connectivity by going ahead on a regional railways agreement and a motor vehicle pact besides inking a series of pacts on regional cooperation. Despite its high population and common culture, South Asia, is one of the most poorly connected regions in the world. While better connectivity promises to promote trade within the region, stronger trade relations can go a long way in promoting food security, poverty alleviation and improving socio-economic growth of the South Asian population. Prof Sridhar K Khatri, Executive Director of South Asia Centre for Policy Studies (SACEPS) says, The promises of SAFTA are much better but the important element is to put it into practice.<br />
	<br />
	<br />
	The share of South Asia in world economy is less than 2 percent with all eight nations of the region collectively contributing only 1.7 percent towards global trade. A number of regional trade issues largely remain unaddressed among the SAARC nations which are yet to tap the trade potential because of various problems. Different trade barriers like tariff, non-tariff and para-tariff, visa problems, political barriers, bilateral transit issues, negative list issues and testing issues are apparently acting as trade deterrents among the SAARC countries. Pradeep Kumar Shrestha, Vice President, SAARC Chamber of Commerce and Industry agrees, “Besides political reasons, infrastructure connectivity, high cost of business and bureaucratic hassles plague the prospects of intra-regional trade in South Asia.” <br />
	<br />
	<br />
	According to a paper published by the Reserve Bank of India (RBI) assessing intraregional trade in ten regional blocs, intraregional trade in SAARC was the lowest at 4.8 percent in 2008. The RBI report quoted, The reasons for the low level of trade include protectionist trade regimes, which discriminated against trade among larger neighbours; continued conflict between India and Pakistan; and transport and trade facilitation constraints.” Thick ice of contentious competition between regional peers has always been an overriding problem in the SAARC region. <br />
	<br />
	<strong><br />
	The Bottlenecks </strong><br />
	<br />
	<br />
	A lack of trust and political goodwill, and underperformance in leadership by the dominant economies has been mainly responsible for not turning SAARC into a successful regional trade bloc. For example, there is a lack of trust on several issues among nations such as India, Pakistan and Bangladesh. Mazumdar raises a case in point, “Historically, there has been a problem between India and Pakistan that was a hindrance for intra SAARC trade.<br />
	<br />
	<br />
	As a result, the major players have not participated actively in making SAARC an effective trade bloc. For too long, member nations of the SAARC have deprived themselves of the benefits of regional economic integration. The region homes one fourth of the world's population and possesses unlimited potential but has stayed least integrated. <br />
	<br />
	<br />
	The region is home to two-fifths of the world's poor and accounts for only 3 per cent of global output. Intra-regional trade has stagnated at around 5 per cent of its total trade for some time now compared to around 20 per cent in Latin America. Even Sub-Saharan Africa, with poor transport and telecommunication infrastructure, scores over South Asia, with over 10 per cent of its trade being intra-regional. The SAARC members have retained a plethora of tariff and NTBs, which greatly inhibits trade and investments in the region. With a large list of negative items, the trade basket remains very narrow, with little value addition. Thosapala HÃwag, Sri Lanka's Ambassador to Nepal recommends, We should be able to come up with some kind of consensus within the region so that tariff and non-tariff barriers are removed.<br />
	<br />
	<br />
	The major cross-border structural rigidities include behind-the-border barriers in customs procedures, poor transport links, weak networking of private sectors, and administrative issues such as visas. Foreign direct investment (FDI) too is minimal, due to regulatory issues and a non-facilitative business environment. We do generate and agree on good ideas in this region time and again but fail to give them shape because of our many conflicts as there is a serious lack of trust among SAARC countries,says Chandra Kumar Ghimire, Joint Secretary at the Ministry of Commerce and Supplies (now Consulate General of Nepal to Kolkata). <br />
	<br />
	<br />
	To make the SAARC regional trade bloc effective, the progress in duty-concession by the nations is not adequate. The participating countries were supposed to reduce the number of products from the negative list year-on-year for nations to enjoy a zero-duty facility under the SAARC umbrella after a certain period. But the progress in this regard has not been on expected grounds. Business leaders representing different trade bodies among the SAARC nations have been urging their governments to further liberalise their respective economies to help augment intraregional trade, consequently effecting the region's development. There is a serious leadership deficit in South Asia where no country or leader has become an advocate of regional integration to help us overcome difficulties and ensure development, Prof Khatri observes. <br />
	<br />
	<br />
	India, by virtue of being the largest economy in the region and its geographic position, is viewed as the member that bears additional responsibility towards intraregional economic integration. While India's trade with South Asian countries has increased considerably over the years, it is still below the potential trade levels. India, a connecting land mass, has a special responsibility in increasing intra-regional economic integration and facilitating access to its large markets for SAARC members. The idea that we had envisioned for SAFTA around a couple of decades ago has not materialised and that’s why we see a country like India establishing relations with other RTAs, for example, ASEAN,” Ghimire laments. <br />
	<br />
	<br />
	Its above-average growth, expanding middle-class population, and demand for global goods can prove to be an engine of growth for the region. India's trade with South Asian countries has increased encouragingly, in the last half-a-decade or so, but much trade is below the official radar. Further, India's trade with countries such as Nepal, Bangladesh, Sri Lanka and Afghanistan remains heavily skewed in its own favour. The services trade further adds to the trade imbalance, leading to concerns among other South Asian countries about trade sustainability. <br />
	<br />
	<br />
	<strong>The Way Forward </strong><br />
	<br />
	<br />
	The SAARC region has an immense potential for using economic integration to reduce poverty and move towards prosperity. Three areas offer large potential for economic cooperation the services trade, energy cooperation and logistical connectivity. The development of logistical hubs that facilitate the flow of trade across the region can greatly reduce the costs of doing business. These logistical hubs can help connect critical regional corridors, especially with countries having no common borders. The countries in the region will have to look into their infrastructure and ways of connectivity in order to increase regional trade, says HÃwag.</p>
<p>
	 </p>
<p>
	Tourism, a major growth opportunity for countries like Afghanistan and Nepal, remains constrained by security problems. Allowing intra-regional trade in services can enable South-Asian economies to become more globally competitive. Energy and electricity cooperation are non-traditional areas of trade relationship development. For example, Bhutan has managed to balance its trade with India with large exports of hydroelectric power, and similar potential exists for Bangladesh and Nepal. <br />
	<br />
	<br />
	An integration of electricity grids across South Asia can reduce power costs and enhance manufacturing competitiveness for all members. Huge hydro-electric potential exists in Nepal, Bhutan, Afghanistan and India, which could be tapped for intra-regional power trade. Each country has its own strength so we have to be able to nurture and benefit from areas of comparative advantages,feels Shrestha. Just days ahead of the SAARC Summit in Maldives, Pakistanâ's initiative to grant Most Favoured Nation (MFN) status to India was considered a major breakthrough. As far as trade goes, the move promises to help the economies of both the countries over a longer period of time. <br />
	<br />
	<br />
	Experts and analysts observe the major initiative can also prove to be an important step to help stabilise the region, struggling to combat poverty and achieve economic reliability in the wake of US and Eurozone debt crises. It would also pave the way for economic integration of SAARC countries and the prospects of the region thriving seem brighter than ever before. At the Maldives Summit, Indian Prime Minister Dr Manmohan Singh announced Indiaâ's decision to slash the sensitive list for least developed countries within SAFTA, reducing it from 480 tariff lines to just 25.</p>
<p>
	 </p>
<p>
	India has stated that zero basic customs duty access would be given for all the items removed, with immediate effect. There should be an attempt to create an incentive for the partner countries in the region to be able to export to a country like India,” Adhikari recommends. As things stand, SAARC as a regional bloc leaves a lot to be desired. However, SAARC has a good trade potential as the economies of a number of SAARC nations are growing fast, observers opine. The countries seem to be on the path towards eliminating tariff barriers and reducing NTBs against each other. It's time for the South Asian countries to think collectively in order to cash in the opportunity of emerging as a regional force to reckon with. <br />
	 </p>',
			'published' => true,
			'created' => '2012-01-27',
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			'description' => 'The 17th Summit of South Asian Association for Regional Cooperation (SAARC) held on 10-11 November this year adopted the Addu Declaration which lays emphasis on effective implementation of the SAFTA (South Asian Free Trade Area) accord among its member states. The heads of the eight member countries  Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka at Addu city in Maldives discussed regional issues in an effort to take SAFTA forward.',
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			'title' => 'See The Sea Change',
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	<img alt="" border="1" hspace="10" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/madanlamsal.jpg" style="width: 103px; height: 127px;" vspace="10" /><br />
	<strong>By Madan Lamsal <br />
	</strong><br />
	<br />
	It is hard to believe that the times have changed, so fast. Anywhere you may go, you are sure to find that things have really changed. <br />
	<br />
	<br />
	In the past, the industrialists used to run the hotels, factories or companies. But at present it is the trade unions that do that job. In the past the businessmen had lot of money, today all the money is either with the politicians and bureaucrats or dons. In the past it was License Raj, today it is Goondaraj, which is claimed to be the Nepali version of free market economy. Therefore, in the past one got the license after the officers felt the criteria were met.</p>
<p>
	 </p>
<p>
	<img alt="" height="249" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/laugingmatter.jpg" width="400" /><br />
	<br />
	In the past, the job of the police was to prevent the thieves from stealing or the robbers from looting those connected to Narayanhity Durbar, now their job is at jeopardy if the let-loose bandits connected to the Durbars at Paris Danda, Balkhu and Sanepa is even suspected by the police. These days people feel comfortable to see the bandits to whom they pay weekly charge called hafta. Rather they disdain the appearance of politicians who nowadays enjoy the larger chunk of the same hafta. <br />
	<br />
	<br />
	The public corporations used to be rich by earning handsome profit. Now the affluence has shifted to their employees and politicians and the corporations are in ramshackle. In those old good days, sick people used to get good after visiting a doctor. But today, even a healthy person becomes sick as soon as he/she sees the one. There was a time when fat man in the street generally meant a businessman or a rich fellow. Businessmen used to run or morning walk to burn their fat. <br />
	<br />
	<br />
	Today, all their fat is taken away some by the banks, some by the politicians and some by the extortionist Goondas. But now, they who are in trouble don't need to panic thinking about the tricks of suicide. It is just that they need to come out of building home or office, a shooter might be standing right at the doorstep to facilitate his journey to heaven. Originally, educational institutions were means for social service and were opened to educate and inculcate moral values and culture in the heads of the students. Today schools and colleges are opened solely for profit. Students too, used to attend the classes. <br />
	<br />
	<br />
	Their objectives these days is to be in demonstrations and at the service of political leaders if they are in the government colleges, or for dating if they are from five-star private colleges. Even the fashion has gone a sea change. Those were days when the girls had long hairs and wore the earrings. Today it is just the opposite - the boys have taken up the girls fashion and vice-versa. Nowadays men have started to marry men and women have started to marry women. Dating spots too have changed from the zoos and parks to the shopping malls or department stores. <br />
	<br />
	<br />
	These are only a few instances of a massive changes that are going around us. But it is the media that has failed to embrace the fast pace of changes. Like in the past most media enjoy portraying good to a political patron regardless of how bad he could be. <br />
	<br />
	<br />
	So, is not it the time to change for media too? <br />
	 </p>',
			'published' => true,
			'created' => '2012-01-21',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'It is hard to believe that the times have changed, so fast. Anywhere you may go, you are sure to find that things have really changed.',
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			'title' => 'Sunil Kaushal',
			'sub_title' => '',
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			'content' => '<p>
	<span style="font-size: 14px;"><strong><br />
	</strong></span></p>
<p>
	<span style="font-size:14px;"><strong>We Are Focused On The Basics Of Banking<br />
	</strong></span></p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img alt="" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview(5).jpg" /><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>Sunil Kaushal</strong> is the newly appointed Chairman of Standard Chartered Bank Nepal Limited. Kaushal is likely to assume a senior role in the South Asia region, the announcement of which is likely to happen soon. He is currently the President and CEO of Standard Chartered Bank (Taiwan) Limited. He has over 23 years of banking experience and held several senior roles with the bank across different markets including Global Head SME Banking and New Ventures in Singapore. Prior to joining Standard Chartered Bank, he had also worked for Bank of America and HDFC Bank. In an interview with Pinaki Roy of New Business Age, Kaushal shared his views on the global banking scenario and Standard Chartered Bank's presence in the key world markets. Excerpts: <br />
	<br />
	<br />
	<strong>You have been appointed the new Chairman of Standard Chartered Bank in Nepal. What kind of vision do you have in mind for Standard Chartered Bank's operations here in Nepal? <br />
	</strong><br />
	<br />
	First of all, I think you would appreciate that we have created a very solid platform in the last 25 years in Nepal. At our AGM held recently, we declared a solid set of results given the tough market environment that prevails. The vision is to build on a strong platform that we have got here. We are very well positioned for a balance across wholesale as well as consumer banking, in the years to come. <br />
	<br />
	<br />
	<strong>You have been at the helm of affairs in Taiwan for quite some time now. Could you highlight some interesting events during your tenure while heading Taiwan operations? </strong><br />
	<br />
	<br />
	I have been fortunate enough to have worked at many locations outside my home country and Taiwan has been one of the overseas postings for me. Taiwan was particularly interesting for the bank because we had three acquisitions there. What was also quite interesting was the acquisition of a bank Hsinchu International Bank that was much larger than ours. The other two were Asia Trust Bank (for licensing) and American Express Bank (global acquisition). It was about assimilating the culture putting the three acquisitions together, integrating them and then building on the platform. The results of Taiwan have been pretty strong. <br />
	<br />
	<br />
	<strong>How has Standard Chartered differentiated itself as a bank when compared to some other global banking giants in terms of performance and branding? </strong><br />
	<br />
	<br />
	In terms of performance, we have delivered time and again as well as enjoyed great ratings upgrade for as long as one can remember. If you look at our share prices, we are one of the few banks which trade at premium to book value. We are present in the right markets Africa, <br />
	<br />
	Asia and the Middle East which stayed relatively better even during the financial crisis. And when the recovery happened on an absolute basis, these markets did fantastically well. We have a long history in these markets around 150 years presence in most of them so we have the depth and breadth of relationships in these markets. <br />
	<br />
	<br />
	Our strategy has been very clear in terms of focusing on these markets and relying on the basics of banking to deliver our performance. We have been there for our customers by being open for business and that is a very big thing. It is as big today at a time when big institutions globally are undergoing stress, talking about cutting headcount and reducing presence. On the contrary, we are still very much in a growth mode so we stand in a unique and differentiated position. We were the only international bank which consistently delivered record profits even during the financial crisis whereas most banks were struggling to break even. <br />
	<br />
	<br />
	Standard Chartered brand has been created over a period of time and we owe it to the management teams in different markets for taking the right decisions with the depth of the local knowledge that they have. The trust that the bank has created over time is especially evident during financial crises when we always see a flight to quality in terms of the customer deposits coming to us. We have proven that people feel secure while trusting their money with us. The best part is that we don't rest on our laurels and continuously try to keep ahead of the market. These are challenging times globally but we are very well positioned and quite differentiated from the competition. <br />
	<br />
	<strong><br />
	Despite the global economic crisis, Standard Chartered Bank figures among the largest profit earning international banks. How do you view this success? </strong><br />
	<br />
	<br />
	It is about being distinctive in our strategy which has resulted in our differentiated financial performance. In fact, we have delivered eight straight years of record profits, and are the only international bank to have received a ratings upgrade by all the three global rating agencies since the start of the financial crisis. Our performance, as you mentioned, has been very strong in the closing statement that we came out with recently which reiterates our differentiated position further. <br />
	<br />
	<br />
	Among the reasons for this is that we are focused on the basics of banking having a strong capital base, focusing on our clients and customers, having a strong balance sheet in terms of liquidity and being open for business. Besides, we are present in the right markets Asia, Africa and Middle East which are actually experiencing good growth as compared to the west which is facing challenges that all of us are aware of. <br />
	<br />
	<strong><br />
	Of late, the financial world is again embroiled in a crisis of sorts, like the Eurozone debt crisis. How do you analyse this situation and what kind of impact will this have on the banking scenario across different markets? </strong><br />
	<br />
	<br />
	In terms of global impact, we have all been hearing about banks wanting to require potential recapitalisation. The impact is applicable across all markets as some of the European banks pulled back because they had to reduce their risk related assets. These banks had to reduce their exposure so that the capital comes up to the level of 9 per cent that EU has mandated by the middle of next year. It's very difficult for them to go out and raise capital at this price when they are not into utilizing their earnings. <br />
	<br />
	<br />
	There is clearly a stress on liquidity for certain banks because of the fear of the exposure that they have to the European markets. Fortunately, for a bank such as ours which has no exposure to the distressed markets in Europe, it creates opportunities for us given the funding, strong balance sheets and capital position that we have. We are looking at these opportunities in different markets and monitoring them quite closely. <br />
	<strong><br />
	<br />
	Standard Chartered, as I understand, has always propagated organic growth. Do you think there will ever be a shift in this line of thought and probably the bank could look at the issue of mergers and acquisitions more favourably in the foreseeable future? <br />
	</strong><br />
	<br />
	If you look at the last decade or so, our focus is absolutely on organic growth but we have local opportunities which are inorganic as they presented themselves. Therefore, more than being a matter of choice, it is about having the right blend. Though we are focused on organic growth as a bank, we will surely consider if a right opportunity comes up. <br />
	<br />
	<br />
	<strong>Tell us about Standard Chartered Bank's India and South Asia operations which you are tipped to take over in due course? </strong><br />
	<br />
	<br />
	India is huge for us and South Asia is big for us as a region and I am excited about the opportunity. <br />
	<br />
	<br />
	In terms of market situation, it will be obviously different from my posting at Taiwan which was already a developed market. But I also have been through different roles globally which provided me with an opportunity to look at diverse markets from Korea in the east to Nigeria in the west. Therefore, I do have the understanding of managing different markets and challenges are something that I always look forward to. <br />
	<br />
	<strong><br />
	You have also been the Global Head for SMEs and New Ventures in Singapore. What are your plans to this effect for your operations in the South Asia region? </strong><br />
	<br />
	<br />
	The SME sector is already quite large for us in the markets in South Asia. It's about building on the strong track record that we have in the sector. SMEs are the core to any economy typically when they constitute 90-95 per cent of the enterprises and contribute 65-70 per cent of the employment. Even during the financial crisis, we have been out there supporting the SMEs and again that is something which differentiates us. SMEs augur well for South Asia as there is potential growth in the economies because of the sheer confidence of SMEs to the economies in the region. <br />
	<br />
	<br />
	<strong>Talking about India, there are recent reports that suggest the Indian economy may not be growing at the same breakneck speed that it so promised until about a couple of years ago, for a variety of reasons. How big an impact will it have on the fortunes of the banking conglomerates in the country? </strong><br />
	<br />
	<br />
	One has to look at the situation in terms of the overall context. India has had very strong growth in the past many years.There are some signs of moderation but I think it is only a short term phenomenon there is no denying the fundamental strength of the economy and we as an organisation are very bullish about the long term potential of the market. The big story about India remains unchanged in terms of its medium and long term prospects; we should not read too much into a slowdown in the last few quarters. <br />
	<br />
	<br />
	<strong>Standard Chartered Bank's profits in India have come under pressure after five years of accelerated growth. How, do you think, a difference can be made in this context? </strong><br />
	<br />
	<br />
	Standard Chartered in India has had a fantastic growth over the last decade or so and the team there has done an incredible job, with profits growing fivefold in the last five years. As I said, it's a short term blip and clearly, there are immense opportunities in the Indian market. We are well positioned as an institution having been in that market for 150 years, to really capitalise on the growth opportunities the economy presents. <br />
	<br />
	<br />
	<strong>China is the fastest growing economy in the world. How well placed is Standard Chartered Bank in the country given its immense potential? </strong><br />
	<br />
	<br />
	We do have a sizeable presence in China with a fully-owned banking subsidiary which operates over 70 outlets. We will very soon be looking at crossing the 90 mark in terms of the outlets that we have in the country. We have been present in China for around 150 years and it's one of the fastest growing markets for our bank in terms of revenue momentum and growth. <br />
	<br />
	<br />
	So, the Chinese market has immense opportunities for us and a bank such as ourselves, is very well positioned given our long history in that particular market. We can certainly be more aggressive in China but we also have to balance the opportunity with the investment. And I don't think we have held back on any investment in China as it's a market where we see great potential and growth.</p>
<p>
	 </p>',
			'published' => true,
			'created' => '2012-01-21',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'Sunil Kaushal is the newly appointed Chairman of Standard Chartered Bank Nepal Limited. Kaushal is likely to assume a senior role in the South Asia region, the announcement of which is likely to happen soon. He is currently the President and CEO of Standard Chartered Bank (Taiwan) Limited.',
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		'Article' => array(
			'id' => '523',
			'article_category_id' => '47',
			'title' => 'Dreaming Big',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<img align="right" alt="" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/golcha.jpg" style="width: 339px; height: 589px; margin: 10px; padding: 10px;" vspace="5" />Young , dynamic and a businessman at heart, Hemant Golchha is the Executive Director of Golchha Organisation, a leading corporate house of Nepal with a nearly 100 year long history. He is one of the successful young entrepreneurs who dreams success for his ventures and goes about achieving them. Ram Lal Golchha, the great grandfather of Hemant Golchha, sowed the seeds of Golchha Organisation almost a hundred years ago. He started the business with exporting jute from Nepal to industries in India. The business gave him lucrative returns and inspired to venture into other projects. Golchha says that his great grandfather had played an important role in establishing the first industry of the nation&nbsp; Biratnagar Jute Mill. Ram Lal Golchha established his own jute industry followed by steel industries. </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	He never looked back and a perpetual growth always followed the Golchhas. Hemant Golchha is a fourth generation businessman and his five younger brothers have also joined the business. He has put his efforts with new vision and thoughts to steer the family business in new areas. He has the promise to lead the organisation with the same dignity and success that his earlier generations had achieved. Golchha grew up in a close-knit joint family and his childhood was not completely different than any other child's. He recalls having fun during the days when relatives gathered at home for festivals. He says, It was a lot of fun and I enjoyed growing up in a joint family. We used to have a good time with school friends as there was nothing to worry about. He would visit Biratnagar for festivals where half of his family members were living. </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	Despite being from a privileged family, he was taught to be honest, humble, simple, truthful and unpretentious about being wealthy. Our modest ways made sure that the family enjoyed a certain level of respect in the community. We never ran businesses solely for the purpose of making money, says Golchha. Golchha completed his schooling from St Xavier's School at Jawalakhel and then attended St Joseph's College of Commerce in Bangalore for his intermediate and undergraduate degrees. He regrets that he could not pursue a master's degree once he started shouldering business responsibilities. He recommends youngsters to complete studies before joining business. </p>
<p style="text-align: justify;">
	Once you get involved with a business, it is difficult to find time, he reasons. After returning from Bangalore, he spent around two years training with various industries in Nepal and Australia and joined his family's business in 1992 at the age of 24. G o l c h h a w a s g i v e n t h e responsibility of managing Koshi Metal, a tin container manufacturing industry in Biratnagar. To his credit, he successfully made it a profitable proposition from being a loss bearing industry. In his much younger days, he aspired to be like his great grandfather. </p>
<p style="text-align: justify;">
	I always wanted to be like him and follow the path he has shown&nbsp; the path of integrity, dedication, honesty and no compromise between business and hard work, he explains. Vijay Mallya, a celebrity businessperson from India inspired him to live life king size and enjoy the wealth earned from business. It is not a bad thing to enjoy our earnings. He was one of my idols during my college days because of his lifestyle, says Golchha. He believes he was destined to be a business person since he was born in a business family. Everything moved gradually in the direction it was supposed to move and entering the business was his obvious goal. Golchha's maternal grandfather and uncle were into film making which has ignited a desire in him to turn a filmmaker some day. I have not thought about making movies as a profession but only as a hobby. I will definitely make a movie some day, he states enthusiastically. </p>
<p style="text-align: justify;">
	He was also active in motorsports during his college days that speak volume for his versatility. He asserts even if he was not born in a business family, he would have still pursued a career in business. Though, of course, he credits his family for what he is today and acknowledges that his business lineage made his job that much easier. Golchha's career that began with container manufacturing continued with added responsibility in other sectors as well. He was assigned to lead Shree Ram Sugar Mill in Rautahat since 1994. He made a historic move in the family's business by making inroads into remittance, tourism and housing sectors that were never part of business with Golchha Organisation. Equal to 25 per cent of Nepal's GDP is received in the country as remittance and another 25 per cent is from travel and tourism. If you do not have a presence in the areas that are equal to some 50 per cent of the nation's GDP, you cannot call yourself a large business house. This is what influenced my decision to venture into these areas, he says. Hulas Remittance has become one of the largest Western Union agents and figured among top ten money transfer companies in the country within five years of its commencing operations. </p>
<p style="text-align: justify;">
	<br />
	Golchha started a travel and tour company last year, Travel World Experiences, which focuses on inbound tours. He is optimistic that it too will prove to be a successful venture in due time. Meanwhile, he also decided to make a foray into the real estate sector in association with a few friends which resulted in the establishment of Shangrila Housing. Golchha believes that maintaining a leading position largely depends on performance. He says, You might do very well one year but you may not do so well the next. He is dedicated and focused to make sure that his businesses attain success and has no desire to hog the limelight. I want my projects to be more recognised than myself. My total joy lies in the success of my business ventures and the positions they hold in the market. Travel opportunities that come as part of doing business is one of the most charming aspects, he says.<br />
	<br />
	I also enjoy being at my office and like working with the team members who are more like my friends, he states. The financial crunch being experienced by the economy worries him a great deal and this is one aspect he does not like about doing business. With a very forthright vision about doing business, he philosophises, If I don't enjoy doing a particular business, I will rather do something else. Golchha believes that employees are the soul of a company and having a good team is essential for its success. If you compromise while putting together a team, your business will never succeed. We are only entrepreneurs and without a good team, we cannot do everything on our own, he says. He is of the opinion that it is important to provide good remuneration and environment for motivating the human resource. He says, It is vital to give people a sense of belonging.</p>
<p style="text-align: justify;">
	<br />
	He prefers to decide from the heart while dealing with colleagues, employees and customers. A workaholic during the initial days of his career, he has now changed his working style somewhat due to added family responsibilities. He gives a lot of time to his family and returns home early to spend quality time with his two children. He also plans a holiday every year with his family to explore a new destination. Likewise, he also takes out time for his friends and likes to hang out with them at coffee shops. Golchha likes to watch entertaining movies and listen to Hindi music during his free time and also plays games with his kids. He is quite a party animal and usually spends his Friday evenings at different parties booked by friends. He hits the gym regularly and runs for around half an hour every day. He has a long list to do before he dies. Going on a long road trip from Kathmandu to Europe via Iraq, Iran and the exotic lands, is one of them.</p>',
			'published' => true,
			'created' => '2011-11-17',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'Hemant Golchha dreams big and believes he was born to be an entrepreneur. He credits
his identity to his companies and their successes and thinks that any dream
can be achieved with hard work, dedication and honesty.',
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