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NBI and Alert publish survey results on ‘Business and Public Security in Nepal’

Kathmandu, April 8th 2010
Public security is vital for peace, stability and economic prosperity in Nepal and has therefore become a
major concern for all segments of society. The effects of insecurity on the business and investment
climate can directly translate in loss of income and employment opportunities. Insecurity hampers the
much-needed economic growth in Nepal and increases the potential for conflict and instability. Against
this backdrop, National Business Initiative (NBI) and International Alert (Alert) have conducted a survey
on “Business and public security in Nepal”.

The study which was conducted from October 2009 to January 2010 among business people, political
actors, trade unions and civil society in 7 districts of Nepal reveals that businesses and the economy in
general are deeply affected by insecurity. Common forms thereof include kidnapping, forced donations,
extortions, blackmailing, strikes and lockouts. These security problems stifle production and increase
the cost of doing business. This ultimately results in higher retail prices, less employment opportunities
and contributes to the vicious circle of conflict, insecurity and low economic growth. The survey
revealed the following key reasons for the climate of insecurity:

• Impunity and political interferences in security and justice mechanism
• Politicization of trade unions and other parts of society
• Poor governance in business support systems
• Lack of economic opportunities -particularly for young people

Respondents of the survey perceived the recently introduced Special Security Plan as a positive step
and reported about joint initiatives between security forces and the business sector to address
insecurity. They also highlighted the importance of responsible business practices, transparency and
accountability of businesses to avoid conflicts which lead to security threats.

The research highlights that business is strongly affected but also able to make important contributions
to tackle insecurity. Strategic public-private-dialogue mechanisms need to be established not only to
share the perceptions and grievances but also the resources of all stakeholders to address crucial
issues. Public security initiatives by the government, donors and civil society should be made more
inclusive and involve the private sector. Strategic approaches, the commitment to refrain from
interferences and the demonstration of integrity of all concerned stakeholders will also be a necessary
step towards business and public security, peace, prosperity and stability in Nepal.