Monday, May 6, 2013

Microeconomics (2068Q2): On the basis of your understanding why private transporters syndication / controlling is thriving in Nepal?


Over the last decade, the syndication has emerged as the one of the most problem in domestic transport system affecting the private sectors and consumers. This syndicate lobby is such a powerful that it has knocked down each and every attempts of government to abolish the anti-competitive practices. The private transporters syndicate association has control prices, keep big price margins, have greater authority and claim big piece of the pie in the market. In a free competitive market, syndicates are illegal and lethal (घातक). Moreover, in Nepal, Competition and Market Protection Act 2063 recognizes that syndication as an anti-competitive practice, defining it as illegal and punishable.

Reasons that private transporters syndication / controlling is thriving in Nepal

  1. The government can't forcefully implement our laws and practices upon the private transporters syndication.
  2.  The government hasn't any measures to counterpart the syndication of private transporters by transporting petroleum and LP gas by govt. and other party's tanks.
  3. The government can't pierce the powerful nexus of private transporters syndicate and private transporters syndicate is also back supported by some politicians.

Possible efforts to solve syndication:

  1. Government first should make alternative of private transportation of petroleum and LP gas. Then government must present strongly with private transporter to draw them into law and order.
  2. Politician shouldn't look after their personal/organization benefits. They must be aware upon the citizens problem and the national problems.
  3. Consumers and the associations of consumers should alert, aware and consolidate upon these issues and should fight against the syndication by boycotting their petroleum products.

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