Syndicates are the antithesis of free market principles. Despite much liberalisation and privatisation, syndicates continue to flourish in some sectors in Nepal, transport being a major one. Finance Minister Dr. Ram Sharan Mahat’s assurance to do away with the ‘illegal’ system soon is a positive approach. Such ministerial promises were also given in the

past, but things remain unchanged. In Bhairahawa on Tuesday, Dr. Mahat came down heavily on those transport operators who have been “taking advantage of the country’s difficult circumstances”. But the fact remains that this system has been in place for years.

Nepal, by virtue of gaining the WTO membership and embarking on the path of reforms and economic liberalisation, will also have to abide by the rules of free market economy. Such syndicates, doubtlessly, kill the spirit of open competition and encourage monopoly in goods and services. Therefore, cartels in any form have absolutely no place in the present free trade regime. While the cartels monopolise price or production, they tend to deny the benefits of competition to the consumers, or even to other competitors outside their turf. Consequently, not only the quality of goods and services but also the welfare of consumers and society are affected. To check such unhealthy tendencies, the government will have to take bold steps in discouraging and punishing unfair trade practices. After all, private enterprise does not mean giving a handful of businessmen or entrepreneurs the licence to adopt unfair means to block competition and restrict consumer choice.