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Balen’s path to ‘creative destruction’ for a new beginning
His reform agenda aims to dismantle decades of corruption and inefficiency in Nepal’s political system.Paban Raj Pandey
Austrian political economist Joseph Schumpeter’s theory of ‘creative destruction’ hypothesises that in an economy, innovation enables long-standing structures to be dismantled to make way for new ones. This concept is currently in full view in Nepal, as the newly elected government with nearly a two-thirds majority tries to overhaul a system that has progressively rotted for over three decades. Since the onset of multiparty democracy in 1990—and particularly since 2008 when the country became a republic with the abolition of the monarchy—leaders of the major political parties have been preoccupied with their own survival, setting in motion a corrosive cycle of bad governance, corruption and power brokers wielding influence over policy.
Problems are ingrained, and there was a lack of political will to change the course. In recent memory, power rotated among the leaders of the three largest parties—Sher Bahadur Deuba (Nepali Congress), KP Oli (CPN-UML) and Pushpa Kamal Dahal (CPN-Maoist Centre)—who became prime minister five, four and three times, respectively. Considering this, the landslide win accorded to the Rastriya Swatantra Party (RSP), which went to the March 5 polls projecting Balendra Shah as prime minister, could not possibly have come at a better time. His work as the independent mayor of Kathmandu city was widely appreciated, as he was able to cut through obstacles from party-hat-wearing ward chairs.
Reform must begin somewhere. That time is now. Prime Minister Shah, popularly known as Balen, assumed the office on March 27, so it has only been a month and a half. But if the adage ‘morning shows the day’ holds good, better days lie ahead. On the face of it, the speed at which work is being done and the way the prevailing systemic rust is being dismantled could seem chaotic—even cruel. But that is the nature of creative destruction. It causes short-term pain, as the established but harmful norms get uprooted. But this is what helps bring about a new beginning. If done right, and once the transformation is complete, what previously worked for a select few can now enrich the masses.
Artful, not malicious, craft
Balen has declared war. He is merely channelling the voices of the Gen Z youth whose September 8-9 uprising against corruption and bad governance led to the downfall of the Oli government. Balen is also channelling the millions of voters who, hankering for a change in the old way of doing things, gave the RSP 182 seats in the 275-member House of Representatives. It is a war against a system in which corruption starts at the top and percolates down. It is a war against a mechanism in which only the small perpetrators get caught, but not the big fish. And it is a war against a society that increasingly, yet wrongly, treats wealth as the be-all and end-all, regardless of how it is accumulated.
“All is fair in love and war,” as they say. In war, it is an act of patriotism to join the cause in whatever way possible, leaving aside politics, doctrines and philosophy. In past speeches, Deuba, Oli and Dahal all spoke ardently against corruption, although the common perception was that their deeds and words hardly matched. Deuba no longer leads his party; Oli does, but is probably on his way out, while Dahal’s has morphed into a relic of his Maoist days. The younger generation in these parties should help the Balen administration in its endeavour to clean up politics. They will be tested when the eight ordinances issued by President Ramchandra Paudel come up for a parliamentary vote.
A Parliament session was called for April 30 but was suspended a day later, citing ‘special reasons’. Then, the Balen government recommended one after another ordinance to President Poudel for approval. The suspension of Parliament can easily be labelled as a cheap manoeuvre just so these ordinances could be pushed through. Arguably, this is not a way to rule for a party with a dominant position in the Lower House. But the Balen government is in a bind, as it is in a hurry to carry out a major administrative reform. Still, the RSP has no presence in the 59-member Upper House, the National Assembly, which is mainly made up of 24 from the Nepali Congress, 18 from Dahal’s party and 11 from Oli’s.
Benefit of the doubt
If the Balen government had opted for the normal route of law-making, it would probably have taken months. Worse, this would likely face opposition in the National Assembly; that danger still lurks. The Constitution of Nepal mandates that an ordinance be presented before both Houses and be approved within 60 days once Parliament convenes; otherwise, the ordinance ceases to be in force. If the three major parties in the Upper House play the usual opposition games and refuse to go along for the greater good of the country, odds are very high that they will be punished in the local elections next year. People voted for a majority government in the March elections and want results. Other parties should cooperate.
That, however, does not mean giving a free pass to the Balen government. If it gets off course, it is the duty of the opposition (in Parliament)—no matter how small in terms of seats—the press and the intellectuals to raise their voice and inform the public. Thus far, the government deserves the benefit of the doubt. Hindsight is 20/20, but of course, Oli and Ramesh Lekhak, home minister during the September protests, could have been arrested with more homework. Or RSP parliamentarians Bishwa Raj Pokharel (Okhaldhunga) and Khagendra Sunar (Banke) could have acted with more maturity in public. There are also press reports about RSP parliamentarians who have homes built on public land.
Speaking of which, the Balen government’s decision to take on the squatter crisis head-on deserves praise, although it looks messy right now; for years, the major political parties merely used squatters as a vote bank. Balen is also right in dissolving party-based trade unions within the civil service. Public employees should serve the people, not obey their political leaders. Or take the case of now-banned student unions, which are less motivated by student welfare and more by how to become pawns of their affiliated parties. We need students loyal to the country. These issues—not to mention Balen’s shot across the bow of shady middlemen—deserve broad support to break the corrupt status quo.




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