Certain sections of society have apprehensions about the CPN-Maoist’s economic policy. The business sector is unsure about the CPN-Maoist’s policy towards private enterprise, about whether they will guarantee the security of investment, about industrial relations, and so on. As the Maoists are poised to head the next government, top CPN-Maoist leaders tried to allay the business community’s fears in an interaction programme in the capital on Wednesday. Maoist chairman Prachanda assured them that his party would take a ‘capitalist line’, dismissing as unfounded the suspicion that the next government might nationalise property. He also assured them of industrial security by speaking of the formation of an industrial security force as part of the process of adjustment of the People’s Liberation Army (PLA) combatants.

The Maoist economic policy, as stated by Prachanda and politburo member Dr Baburam Bhattarai, include: attracting FDI according to priority, promoting domestic private investment, establishing ‘friendly’ industrial relations through a ‘flexible’ labour policy aimed at ensuring the interests of both investor and labour, giving the private sector the ‘lead role in economic revolution’, recognising profit as a driving force of investment, and taking advantage of globalisation and liberalisation. While stressing India’s willingness to extend ‘all forms of cooperation’ to the CPN-Maoist-led government, Prachanda said that because of his party’s commitment to ‘lasting peace, multiparty democracy, and rapid economic development’, other countries and multilateral agencies have been ready to lend support. The only pragmatic policy for any government in Nepal is to go along with the international economic trend, because Nepal cannot live in isolation. As far as economic development is concerned, China has shown the right way for any communist party in the world.

At the same time, the Maoists need to demonstrate that they can make a difference and are better at governance and economic management. Despite its weaknesses, capitalism is the most efficient economic system in the world. It has serious drawbacks too, but sincere and serious efforts are required to minimise their harmful effects. Inadequate attention to this need, for whatever reasons, has caused many distortions in the economy and frustration among the general public. Some of the areas for improvement are effective regulation of business practices and tough punishment against offenders, enactment of adequate laws for this purpose and faithful implementation of those that exist, prompt action to

remove the real difficulties facing the business and industrial sectors, protection of the legitimate interests of all stakeholders, and abolition of cartels formed for unfair business advantage. Many broken past promises have greatly eroded public faith in those in power. The Maoists must alter this if they are to retain public trust in the future too. Big decisions have their importance in making a big impact. But, there are so many little things that any government can immediately do to make a difference and restore public confidence in the state’s ability and willingness to deliver.