The long-awaited bus service between Kathmandu and Lhasa started on Sunday, thus increasing the prospects for greater economic exchanges and people-to-people contacts between the two countries. To start with, the bus service is once a week round-trip, alternately to be operated by the authorised bus company of each country. However, the two-day-long one-way bus journey costs US$70, apart from the other expenses like visa fees. This may deter most Nepalis, but given the cost of air travel at Rs. 28,000, this is still much less. These are things of secondary importance, which competition later on might take care of. But what is of primary importance is the commencement of the regular bus service itself. This road link between the Roof of the World and Kathmandu may provide a strong inducement to foreigners visiting Nepal. Given the level of public response to the bus service in both the countries and the economic rationale behind it, the frequency of the services may be increased in future, with the possibility of more bus companies entering the fray.

Though Nepal has traditionally suffered from a lot of handicaps to its trade and development because of its geographical location, this very fact might, in days to come, prove to be a blessing in the unfolding global and regional political and economic relations. In this era of economic liberalisation and globalisation, Nepal has, to its north, the world’s most populous country and, to its other three sides, the second most populous country—both among the fastest growing economies in the world and being tipped to be superpowers in the present century. In the context of the ever-increasing trade between India and China, Nepal can benefit hugely, too, if it can act, as its physical situation warrants, as a trade corridor between these two giants, a fact to which King Gyanendra referred to on a positive note the other day.

Indeed, the politics and economics of countries have undergone sea change over the past half century. Nepal should, therefore, understand the present realities and adopt suitable policies to derive maximum benefit from the expanding India-China trade. The bus service is also expected to boost Nepal-China cooperation in the fields of commerce, tourism and culture, among other things. Another fact that may boost Nepal’s economic ties with China considerably is the start of train services between Lhasa and the rest of China next year. The inflow of Chinese tourists may also grow because of these new transport links. But Nepal should plan for it. It should prepare with considerable care and take all necessary steps to facilitate this, removing shortcomings at the same time. That way it can take advantage of all the economic opportunities that are beckoning.