Reinventing Nepal as a transit point

Nepal being sandwiched between the two Asian economic powerhouses; Indian and China, is seen as a lame duck geographically and economically. However, the history has it that Nepal has been a gateway for Indo-China trans Himalayan trade since the period of Lichhivi kings.
A new debate on positioning Nepal in its ancient track and make a transit state has gain momentum in the recent times. Nepal as a Transit State: Emerging possibilities, a compilation— an outcome of such a one-day long national seminar organised by the Institute of Foreign Affairs (IFA) in collaboration with Confederation of Nepalese Industries (CNI) — explores the positive and negative aspects of being a transit state.
The book, which has included four papers that were presented in the seminar and the comments on those papers, tries to get a deeper understanding on the socio-environmental and socio-economic costs that Nepal has to bear after being a transit state.
In recent years, China and India are trying to expand trade and business between the two countries. As the giant Asian neighbours have moved to improve their relations, strained for decades, two-way trade between them have also grown by more than sevenfold in the past five years. According to the latest data, exports and imports totalled $15 billion in 2005, up from about $2 billion five years earlier between the two traditional rivals. And there is a potential for much greater trade between them. “It is an opportunity for Nepal, if it can prepare itself for a transit trade route. Could existing road network and policies of the government help us to become a transit state?” The answer is almost clear in the book, without up gradation of roads and more physical infrastructure, it could be a disaster.
“Though trade links between China and India via Nepal corridor are as old as our history, they have been using other routes in recent times. It is high time for both the countries find an alternative route for their growing trade and Nepal could provide an alternative road link, claims the book. The paper presenters; Tara Dahal, Dr Dilli Prasad Bhattarai, Keshav Raj Jha, and Prakash A Raj have elaborated the need of good infrastructure like road links, communication facilities, storage facilities, and business opportunities that Nepal can get and procedural, legal and institutional mechanisms that Nepal needs to look into to be a transit state.
According to Dr Dilli Bhattarai, Nepal should give due attention to develop its northern border and link with China, and then build good trade relations between Nepal-India-China, otherwise we could miss the opportunity. And for that Nepal needs a massive infusion of FDI to build roads and other infrastructures.
Similarly Dipak Gyawali, former minister; Dr Shanker Sharma, vice-chairman of the National Planning Commission, and Atma Ram Muraraka of CNI’s comments on the papers are also thought provocative.
As foreign minister Ramesh Nath Pandey writes in foreword in the book, Nepal’s offer to be a transit point linking the two biggest markets in the world is an attempt to make geography a boon rather than a curse.
The book, which is a worth reading, is edited by Nischal Nath Pandey, executive director of the IFA.

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BOOK REVIEW
Book: Nepal as a Transit State: Emerging possibilities
Publisher: Institute of Foreign Affairs (IFA)
Editor: Nishchal Nath Pandey
Pages: 74