Although this can be inferred from our decade-long experience of insurgency, National Business Initiative (NBI) and International Alert (IA) jointly conducted a survey on ´Business and Public Security in Nepal´ to have a nuanced understanding of the interrelationship between private sector operations and public security provision. [break]
The study was conducted from October 2009 to January 2010 in seven districts of Nepal -- Kailali, Sunsari, Morang, Dang, Parsa, Bara and Kathmandu - among small, medium and large enterprises; trade unions; civil society representatives; youths; political party leaders; as well as local government officials. The major finding and recommendations of the survey was made public through a press conference on Thursday.
According to the survey, the respondents pointed out insecurity as a major blockage for economic growth. Apart from insecurity, they also pointed out power shortage and labor disputes as other hindering factors.
“Politicized, fragmented and increasingly aggressive trade unions were seen as an added problem faced by businesses,” DB Subedi, senior program officer at IA, said.
The underlying causes of insecurity were political interference in the provision of security and justice, youth unemployment and increasing political mobilization of people along identity lines, the survey said.
The survey also unearthed that fact that private sector is highly affected by key security problems. High rate of out-migration of youths is causing shortage of skilled labor. Extortion, threats and blackmailing are key security problems faced by the private sector. Business people practicing unethical businesses were found to be more vulnerable, according to the survey.
“The study found that bandas and strikes increase cost at every step of production and raise the price of goods and services for consumers. Poor governance in business support services makes it difficult to do business,” said Subedi.
The study has made a series of recommendations to the private sector like creating awareness about the cost of insecurity, involving in dialogue with government security agencies, trade unions, political parties and civil society; identifying genuine needs of employees and incorporating them in human resource policies and practices, thinking strategically and clarifying the long-term benefits of responsible business practices.
It has recommended the government to provide training, ensure security and be more accountable, consult with all stakeholders, including the private sector, while formulating and implementing security reforms and provide incentive for responsible business practices among others.
Stakeholders like media have the role of highlighting best practices in security initiatives, corporate social responsibility, peace and sustainability; and I/NGOs have the role of creating awareness on the cost of insecurity, lobby for inclusive policy formulation on security issues, the study noted.
Speaking at the program, Surendra Bir Malakar, president of Nepal Chamber of Commerce (NCC) and chairman of NBI, said the alarming insecurity issues have resulted to rise in capital and industry flight. “We are trying to talk with the government and the concerned groups in this matter,” Malakar said.
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