The government has expressed its commitment to dismantle the syndicate system imposed in the public transportation sector. Though the Competition Promotion and Market Protection Act (CPMPA)- 2007, which dubs all anti-competitive behaviors illegal, syndicate system is legitimized in the country thanks to the apathy of the government. The Transport Management Act 2004 is amended introducing a new rule that permits to issue to public vehicles of only those transport companies that are registered at the Department of Transport Management (DoTM). With the amendment in the law, it is expected that the long being rooted syndicate system in the public transport sector will be abolished adhering the principle of free market economy. Principally, syndicate system is the thing that solely undermines the whole idea of the competitive market. Syndicate system in Nepal has not only crippled our economy but prevented competitiveness that necessitate to provide better services. Since the syndicate system has been making vulnerable not only in the transportation sector but also obscuring difficulties in the daily chores of the people in general by hiking prices of the goods like oil, foods and construction projects, the government will gain greater sympathy if the rule is implemented in a true sense.
The public transport system in Nepal has long been plagued by the syndicate system launched on the name of transport associations or committees. The public transport sector is fully dominated from the syndicators. Different transport associations and committees have held the country’s public transport system hostage bringing halt the competitiveness. It is ridiculous to say that the government used to issue vehicle route permits to transporters on the basis of the recommendation of different transport associations and committees. It is needlessly to say that the syndicate system is institutionalized in the country not due to the lack of legal provision but lethargy attitude of the government. Political patronage is given to the transport associations and committees, which has helped to institutionalize the syndicate system in Nepal. Though the Supreme Court (SC), the apex court of the country, had declared the syndicate-run public transport system illegal, no initiation was taken even to implement the verdict of the SC. The syndicate system in the public transport sector thrived even after the SC verdict to halt it immediately.
As public transport entrepreneurs’ association and committees have gained their strength from decade long extortion, it is likely that the syndicators would demonstrate their muscles in the backing of political as well as pecuniary power against of the rule. Since the syndicators are enjoying protections from powerful politicians, they would not care even now to abide by government regulations. The recent statement made by Rupnarayan Bhattarai, Director General of the DoTM, to take stern actions against those who resist government’s decision to break a transport syndicate, is being examined cautiously from different sectors. As the incumbent government prefers itself as strong and people oriented government, it should not hesitate to deal with these actors ruthlessly to destroy all forms of syndicates in all sectors. As the rule is introduced, the government should not backtrack to abolish the syndicate system. Abolition of syndicate system won’t be difficult if the government comes with the strong commitment. Likewise, all the stakeholders have to join hands to the government to bring into implementation the rule. We are no pessimistic that government would backtrack from the decision to implement the rule but cautiously been watching its strength.
