On the aftermath of the great earthquake, Government has
decided to handout 2 lakh Rs to all those who have lost their home. Now opposition at both left Maoist and right
Kamal Thapa Group is protesting that it is not enough, meanwhile our finance
minister and some prominent economist like Dr. Pyakurel and Mr. Rameshwor
Devkota are saying it is too big amount that can lead to loose money resulting
in inflationary pressure. I think both
sides are wrong:
i) Yes 2 Lakh Rs is not enough to build one's home. Even if
they build one it will be temporary shed that will not be able to withstand
another earthquake. But handing out more cash is not solution as it can't be
properly tracked, might be used for gambling and alcohol consumption. Last week
in Sindhupalchowk me and my friends found that out first hand as many of
victims were seemingly drunk. Besides the cash can be misused and may go to
hand of those who are not actual victims.
ii. As for inflationary pressure argument goes that
classical scholars are babbling about won't happen because the victims are not
going to spend the handout to buy luxury goods. Besides the government that
earmarks fund to support various welfare scheme to bulwark it's core political
base arguing this time around against
giving handout to those who actually
needs welfare is downright pathetic.
So what is the way around:
a) Instead of cash handout government should rebuild the
house themselves. In every wards of VDC the cheaper and earthquake tolerant
house should be constructed with proper sanitation using environment friendly indigenous
resources. Certainly the amount required will shoot above 2 lakh but this
will ensure that cash won't be misused. Further this won't lead to inflation as it
will be counted as government spending.
b) For the farmers who have lost their livestock a cheaper
loan at zero interest should be provided.
c) An independent audit firm like big four should audit all
spending to make sure that funds is not misappropriated.
The path to
rebuilding and rehabilitation is long
and weary but can be achieved only with sound strategy and not populist knee-jerk
reaction. There is no way to recompense the loss but the steps henceforth
should be judicial, equitable and humane.
