An obstacle on

Maha Shivratri

Rakesh Wadhwa

Kathmandu

It was Maha Shivratri. My wife, Shalini, and I were in a car and passing through Nag Pokhari in Kathmandu. Suddenly, the person driving us brought the car to a screeching halt. Some 12-14 children stood with a rope blocking our way. Without thinking, more as a reflex, I took out Rs 50 from my wallet and handed it to the leader of kids and we were on our way again.

No big deal, you might think. Everyone driving a car has experienced this rather harmless effort at collecting money by boys and girls in Nepal.

But, this started a discussion with Shalini on ‘what do kids do in the US when they want extra pocket money?’ “They might run a lemonade stand, mow neighbours’ lawns, wash cars or deliver newspapers”, said Shalini.

Whatever the kids might do in America, not once have we seen them holding up traffic and demanding payment. They make money by selling a good or providing a service. This involves a voluntary exchange between a buyer and a seller.

Warren Buffett, the world’s second richest man, delivered newspapers as a kid. He now owns a significant portion of that particular paper – ‘The Washington Post’. But, that is another story.

The point here is that Buffett, as a child growing up in America, imbibed the lesson, ‘you make money if you can induce someone to buy what you are selling – be it your labour, service or a good’.

The lesson which I taught kids the other day in Nepal was, ‘block, obstruct, create problems, stop us from going where we want to, and, we will pay you to lift the restrictions you put in our path’.

I asked myself, what would happen if one day one of the kids who had stopped us became a government officer? He would remember that the way to riches is by stopping people from doing things.

What if that kid grew up and went on to take charge of the customs department of HMG? Would he stop the release of goods until he was paid off?

If he became the minister of industry, would he expect a big pay-off from a foreigner wanting to establish an industry in Nepal?

Indeed, it may mean prosperity for the government official and the minister if they can block licences and restrict businesses.

But for you and I, it might mean poverty and destitution. What enriches bureaucrats and politicians, generally impoverishes the rest.

We can afford to pay government officers to sit at home and do nothing. But we can’t afford them if it means halting the progress of productive men and women.

Vested interests of those in government to maintain the status quo are so strong that minor tinkering with the system like changing government regulations just won’t do. If we, for example, change the licencing policy into a mere registration requirement while leaving the bureaucrats in place, soon they will come up with a registration procedure which equals the licencing one in its complexity.

What is required is a wholesale surgery. We have to throw away major chunks of government and not look back. Do away with licencing. End most taxes. Whatever minimum is left needs to be simplified so bureaucratic interpretation is dispensed with. Abolish exchange controls and allow foreign investment without an approval process.

Go one step further. Consider whether we need all the ministries that we have at present. Government’s job is enforce a rule of law, administer justice, and leave the rest to the people.

And yes, it is time to take a stand against those kids too. Next time around, I intend to refuse to pay them off.

The writer can be contacted at: everest@mos.com.np