Capital Flight from Nepal

The business sector suffered mostly due to the Maoist insurgency in the last 10 years, and now it’s upto them to build up confidence.”
Kush K Joshi, President, Federation of Nepalese Chambers of Commerce & Industry

“Wise & learned people lead our party, not the stupid ones.”
Prachanda, Maoist Supremo

Understandably, the share prices in Nepal dipped sharply among the news of the Maoist Party inching closer to majority in the Constituent Assembly election held on April 10.

And even the Maoists themselves fear that the temporary fear during the transition might become a new trend despite assurance from leaders for following a ‘capitalistic’ market economy.

The fears, however, are not unjustifiable. Although the Maoist leadership sounds really wise & pragmatic, they have not returned or made public about the confiscated land & property during the People’s War – not even after being a component of the Seven Party coalition government for the last two years.

Moreover, the grassroot Maoist cadres still beleive in the same hit & run theory – attacking all those not conforming to their ideology or hooliganism. The latest high-profile example could be the present Finance Minister Dr. Ram Saran Mahat who was allegedly attacked by the Maoists while celebrating his victory in the election.

“If the Maoists can thrash an incumbent government minister like me so easily & get away with that, how can a commoner feel secure under their leadership?” asked Dr. Mahat.

If the wise & learned Maoist leadership does not effectively control its cadres, & starts  a massive confidence building campaigns immediately, they’ll neither be able to check the capital flight to India which has already begun in effect.

The greatest folly lies in considering the Maoist tail to be heavier than its head – its simply unbelievable that the leaders who controlled their cadres even after the killings of dozens of their comrades in Gaur, Kapilvastu & Dang massacres, can not check the high-handedness against general public.

The real question would be why don’t they?

And if they won’t, then who else?