Neo-liberalism: Broken Dreams of Nepal.

 The result of the changing equation of the world economy is giving a negative impact on neo-liberalism.

          Neo-liberalism is an idea of social and economic that some of the western economist regarding it as the latest and moderated philosophy of liberalism by the economics group or schools of thought which want to provide an easy way to run industries and trade in the mid-nineteen century. According to them, worker’s movements, government’s hindrances on the name of rules and limitation of markets are not in favor to promote industrial development and investment. This commonly associated with laissez-faire economy.

 The concept was to support to globalize the large scale capital and sustainable economic growth. Perhaps it was the second-time breakthrough on the favor of capitalism after the climax of the colonial time. The different camps of economic thought were in a discourse of neo-liberalism since around 1945. Friedrich Hayek, Ludwig von Mises and other economists who presented the concept in a conference in 1938.

In 1989 a gathering of representatives of International Monitory Fund, World Bank and United State Department of Treasure and some economists prescribed 10 directions to rescue the worsening global economy in Washington is called Washington Consensus in more supportive step to the neo-liberalism. After the event neo-liberalism came to enforce massively through international financial agencies and some western developed countries along with the General Agreement for Trade and Transit (GATT) later it is converted to World Trade Organization. Most of the regional free trade zones were started by this inspiration in the world.

   The result was very negative to poor countries had not any alternative to asking loan or any economic support except the sources. They provide economic support loaded with conditions were not actually in favor of poor countries. Likewise, the traditional economy of poor countries was also destroyed in the name of development. The developing and under developing Latin American and African and others faced disastrous effects of the policy. 
  

            In 2007 the US economy was engulfed by the economic crises and it was spared many other countries. It gave a lesson that decades later some other economists deny the unlimited socio-economic character of the neo-liberalism.

 Distinct Legacy of Neo-liberalism
     

 The concept of Liberalism emerged at the time of renaissance (14 to 17 centuries) in response to an age characterized by the absolute state, established religion, and a society encrusted with restrictive customs and authoritarian way. Liberalism urges liberty and equal rights among individuals. In another view, the Industrial Revolution brought a stage of capital related labor, production, and market that emerged the colonialism. In the 19^th century, Marxism also raised a massive pressure on fundamental capitalism. Besides this anti-colonial movements were started just after the great wars. Capitalism was engulfed by economic and a political crisis that is why the authoritarian state was compelled to the change into welfare state was Liberalism. In the meantime, the situation gave a ground to emerge revolutionary, evolutionary and other types of socialist states.

The assumption of the welfare state in liberalism or socialism was to support lower class people means the earnings of state expend to the necessity of common people. Most of the economists are regarding that the neo-liberalism is the extracted stage of liberalism. But, the neo-liberalism is equipping to weak state in favor of the globalize capitalism in a new and strong mood. 
     

Nepal:  the broken dream of neo-liberalism

After the political change in 1990, a small Himalayan state Nepal also felt the stress of neo-liberalism. Outgoing monarchial Panchayat system was unpopular and a mass movement brought another new constitutional monarchial system and the multiparty democratic system was restored in the country. Agitating people’s desire was mainly centered in the economic uplift more than political change but the priority was not understood by the Nepalese new ruling elite till now, because new ruling elite was more motivated from foreign interest than domestic needs.

Liberal democratic or the old and largest political party Nepali Congress was in strength most of the time in power after the restoration of the new system than a second left-wing political force. Congress was eager to invite the wave of neo-liberalism without any ground study of economically backward Nepal. Congress understood the theory as a magic stick for Nepal. Nepal was needy of funds and technology for development, for that the support of International monetary agencies and especially western donors was essential, were very immediate tools to implement neo-liberalism with many conditions for economic support. They were mounting pressure on Nepal to follow Privatization, austerity, deregulation and free trade on the footing of neo-liberalism. 
 

 Privatization and the open market economy were blandly adopted by Congress. The party politically convince to fallow neo-liberalism to counter strong opposition communist party because the trend of international communists movement was in defending position after the downfall of USSR. Congress did not miss the time to hit on Nepali communists who were facing mounting political and economic theoretical confusion on the light of their fundamental ideology.

 Bisweshor Prashad Koirala, the founder leader of Congress chooses the road of socialism for the policy of the party. After the BP Koirala, Congress never feels seriously to work on the principle of the party for the changing time. Neo-liberalism was not only the problem on revolutionary communist but also for all types of evolutionary socialists. Congressmen did not understand that the handling of neo-liberalism may be creating a problem for themselves not less than communists.
 

The past of Nepali garment

 Nepal was in lack of fundamental infrastructure of development. Congress privatized some industries established by the support of foreign countries in Panchayat regime. The leaders of Congress frequently said that the government should not involve in any buying-selling and production affair which is the work of the private sector. Involvement of the private sector will promote industrialization and the unemployment problem also be solved. But the dream is being grounded with a lazy move of neo-liberalism within two decades in Nepal.

 Nobody can say that the Nepali Congress did this with an ill motive but everybody can say that Congress did this in carelessness.  Nepal is not a single country but also some poor countries of the world, also affected by the neo-liberalism. Nepal did some development in education and telecommunication but other sectors are in crises. The rural economy is badly destroyed along with traditional agriculture. There is a great labor crisis in Nepal and arable lands are remaining useless. Once Nepali carpet and garment were very popular in some western countries but it stopped now. Nepal is rich in the probability of hydropower. Donors are interesting to invest in this sector but their conditions are more favorable to them than Nepal.

The storm of neo-liberalism is not limited in the economy but provoke the conflicts of Nepali society in a negative way. The bearers of neo-liberalism dominate Nepali interest and play a role to economically, politically and socially unstable Nepal.

  Cooling fiver of neo-liberalism

Most of the economic forums are breathing in the internal controversies. The United Kingdom, one of the strong columns of European Union is feeling better to leaving union now. In South Asia, South Asian Free Trade Area (SAFTA) was declared in 12^th SAARC summit on January 6, 2004, in Islamabad but it did not come in effect. The leading promoter of neo-liberalism USA is completely back from its stance after the raising of Donald Trump. The raising economic impact of China also is a cause of down the neo-liberalism. India and China are progressing to achieve toward the world economic power. Thus, the result of the changing equation of the economy of the world is giving a negative impact on neo-liberalism.