state capitalism for nepalese tourism

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Information about state capitalism for nepalese tourism

Published on August 6, 2013

Author: sarbomania



a brief presentation about the role of state capitalism in nepal


WHAT IS STATE? The state is a political and geopolitical entity Which is operated either following Economic ideologies like:

 Capitalism is an economic system in which capital assets are privately owned and items are brought in market for profit.  Socialism is an economic system characterized by social ownership of the means of production and co-operative management of the economy  Communism is a revolutionary socialist movement to create a classless, moneylessand stateless social order structured upon common ownership in means of production


STATE CAPITALISM As per Wikipedia- its an economic activity undertaken by the state with management of productive forces in capitalist manner. Dominance of state owned business enterprises in national economy A form of capitalism, in which all sectors of national production and important social institutions are managed by the state

ACCORDING TO  Marxist literature: One where government controls the economy and all essential acts.  Friedrich Engels: It would be final stage of capitalism consisting of ownership and management of large scale production and communication by the state.


Number of State-owned Enterprises in following countries, 2005 Australia 12 Japan 77 Austria 78 Korea 30 Belgium 15 Netherlands 44 Canada 100 New Zealand 34 Czeh Republic >1000 Norway 26 Denmark 27 Poland 1189 Finland 55 Slovak Rep. 115 France 100 Spain 40 Germany 37 Sweden 58 Greece 50 Turkey 39 Italy 25 United Kingdom 80

WHY STATE CAPITALISM? It provide stability as well as growth Explore foreign investments Proper allocation of resources Quality production Overall development Consumers beneficial Safe investments

Tourism & State-Capitalism To understand the relationship between state capitalism and tourism, lets have a small Insight tour of world’s biggest Communist turn State-capitalist country

CHINA  China is the third most visited country in the world  No. of overseas tourists was 55.98 million  Foreign exchange income was 45.8 billion U.S. dollars  World's fourth largest in Tourism Earners  number of domestic tourist visits totaled 1.61 billion, with a total income of 777.1 billion yuan  According to the WTO, in 2020, China will become the largest tourist country and among the largest for overseas travel

But how was it possible??  Between 1949 and 1974, the People's Republic was closed to all but selected foreign visitors  After Mao’s death, Deng Xiaoping led china towards a market economy  Over 250 cities and counties had been opened to foreign visitors by the mid-1980s  In 1985 approximately 1.4 million foreigners visited China, nearly US$1.3 billion earned from tourism. ABSOLUTE COMMUNISM TO STATE- CAPITALISM

RESULTS OF STATE CAPITALISM IN CHINA  After 1974, the change in government policy bought great change in Chinese Tourism  Average growth rate of 9.5% a year in GDP  Increase by 18% in International Trade  2nd biggest economy of present world  Chinese state hold more than 150 biggest companies  Guides 1ooos more Lastely  3rd most visited country

BUT EVEN A COIN HAVE OTHER SIDE  When Gov. supports one lot of company- others suffers.  State companies use capital less efficiently than private ones-slow grow  Miss-use the Gov. clout  State companies have unfair distribution of nations resources  Chances of inequality and eventually discontent

NEPALESE TOURISM  Nepal opened its borders to the world in 1949  Nepal is the country where Mount Everest, the highest mountain peak in the world are located  8 of the 10 highest mountains in the world  Nepal is the most preferred eco-tourism destination in the world  Nepal is the only country with altitudinal variation that ranges from 70 meters to 8848 meters

STATE CAPITALISM IN NEPAL  State capitalism have obvious appeal in Nepal  Can boost the resources in tourism sector better than private sector  State companies can work freely in market as they are state operated  Over all development of nation

BUT???  Since Nepal is democratic country, its not possible for Gov. control over all productive sector  Handful of bureaucrats can misuse power, decide taxation and unfair distribution of resources.  Even distribution of wealth to poor doesn’t eliminate poverty  It makes richest the poor  Creates negative feelings to hard workers as lazy bones are also equally paid


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