Gap Between Expectation And Outcome

The two day long state visit of Tamim bin Hamad Al-Thani, Amir of the State of Qatar, to Nepal last week must be taken as a watershed moment because of its being the first such visit from the Gulf Cooperation Council GCC region in more than a decade.  This visit holds significance for other three special reasons also though its outcome clearly failed to meet the expectation it had generated before the visit.

 First, this visit was being keenly awaited ever since former president Bidya Devi Bhandari paid a state visit to Qatar in November 2019. Second, His Highness the Amir of Qatar had promised to visit Nepal in a convenient time as a recognition to the immense contribution of Nepali workers in accomplishing many mega projects of Qatar. Third, it was also an exploration visit for the Qatari business community for assessing the potentials for investment or business prospects in Nepal.

Labour agreement

Before the visit of the Amir, there was a lot of euphoria in Nepal. It was generally expected that the existing labour agreement in force since 2005 would be replaced. Introducing timely revision in the agreement which is already nearly two decades old was a rational proposition. The minimum wages and the basic salary of the Nepali workers hired by various companies in Qatar have remained stagnant for a long time. Compared to other labour destinations, especially Israel and South Korea, the basic minimum wages in Qatar and other Gulf countries are untenably much lower.  As one of the ten richest countries of the world, Qatar’s cost of living is quite high. At the existing pay scale, most workers can send money hardly enough for their families to make their ends meet.  

Unable to accumulate surplus funds to invest in productive enterprises or build assets, many of them are forced to come back at the end of their contract as financially strained as they were before. This is a serious challenge which Qatar and other Gulf countries must address if they hope to look to Nepal as a source of reliable and sustainable human resource. Another important issue rankling on the minds of the Nepali workers in the Gulf countries is the issue of the coverage of accident insurance. There is a demand from the workers community for universal 24 hour coverage of accident insurance instead of the existing one which covers only the working hours.  That has deprived many families of the workers who die on the way or in sleep of legitimate compensation.

The third concern is the tardy justice dispensation process which makes it impossible for workers, especially those who lose their job and accommodation after indictment, to wait for justice. There is a labour court but it can only arbitrate dispute between the workers and the employers. If employers or the concerned workers do not accept the labour court’s arbitration, the case automatically goes to the regular civil court for resolution and there it takes inordinately long time. In order to make legal remedy accessible for the workers, a provision for a fast track separate court could be visualised. 

The visit of Qatar’s Amir to Nepal took place on the eve of the investment conference which Nepal has been holding in the interval of a couple of years. In this context, Nepal had naturally expected some commitment from the Qatar government for investment on some Nepal’s development projects.  Nepal is a virgin land where a cash rich country like Qatar has an ample opportunity for investment. There are plenty of areas of investment ranging from hospitality industries, agricultural farming and transportation to hydropower where big investors can lay their stakes without the fear of loss. But the failure of the Nepali government to make a convincing case of investment potentials of Nepal highlights inadequate diplomatic communication between the two countries. 

Overseas investment is one of the strategies of Qatar and other Gulf countries to optimise revenue generation beyond petroleum resources. Qatar appears to be focusing on investing in real estate, finance, energy and infrastructure in different parts of the world. Qatar has a strong presence in the international global markets. It has a huge sovereign fund which it invests through Investment Authority (QIA). Qatar has its stakes in real estate and various multilateral corporations in different continents. It is eager to expand and diversify its investment portfolio to create economic growth and stability. 

Diplomatic communication.

The Gulf countries, including Qatar have turned to South and South East Asia as bright spots for investment. It has invested in infrastructure project in Indonesia, real estate projects in Singapore and dairy farm in Malaysia. In recent years, it has started investing in South Asian countries as well. Qatar has invested in infrastructure projects of India, energy infrastructures in Bangladesh and real estate projects in Sri Lanka, leaving positive impact in the economies of these countries. In view of this, there is no reason why we cannot attract investment from oil-rich GCC countries including Qatar if we skilfully negotiate and are effective in diplomatic communication.

Unfortunately, however, the management of the visit of the Amir of Qatar exposed a gaping inefficiency in aligning our interests and priorities with those of our interlocutor. There should have been adequate work-out earlier than the actual visit to ensure that both the countries are on the same page in understanding the issues of mutual concern. 

To sum up, the just concluded state visit of the Amir of the State of Qatar has revealed a crucial disconnect between the expectations and outcome of the visit. It underscores the need for more effective communication between the concerned agencies of the two countries. In the future, it is necessary to prioritise understanding the core concerns shared by the people to foster more mutually beneficial relationship.

(Dr. Bharadwaj is former ambassador and chairperson of Gorkhapatra Corporation.)