Wednesday, July 26, 2006

Dr. Prem Sharma, CDRD,TU

Constituent Assembly (CA) is a council of electorates usually elected by adult franchise for the purpose of formulating a state law, i.e., constitution of a kingdom. It is an assembly that has power to make or alter a political constitution. Then so what is a political constitution? A constitution is system of laws and principles according to which a state or other organization is governed. In a nutshell it is a constitution making process so it ceases when the constitution is enacted and promulgated. If one talks about sovereignty lies on people or power of the people, the citizen should have authority to elect the body of assembly and adopt the constitution. N. Hayson, stresses that ' it is imperative that the constitution-making process should involve, as far as possible, society at large. It is not the lawyers or politicians whose rights are protected by the constitution. It is not lawyers or politicians who will defend those rights, nor the constitution itself at the barricades or in the streets. A constitution that is drawn up without popular participation will have little resonance in the hearts and minds of the people who are its final guardians'. Therefore, it is the right of the people to formulate, alter and adopt their own governing laws by the means of popular representatives.

The necessity: What made Nepal to do so late, more than half century, after the dawn of democracy in 1951? It was felt so imperative after the take over of 1 Feb. 2005 by the king. Intrinsically the Maoist insurgency had transposed the multiparty dispensation within their 40-point demand a decade ago. So Prof. K. Khanal observes 'the issue of CA remained dormant until the Maoists raised it anew following the 1990 People's Movement'. However, the pro-democracy fighters along the late king Tribhuvan had avowed aftermath the 1950 that the country would be governed by the constitution adopted by the constituent assembly. But the statesmen forgot and undermined it time and again, though five constitutions were already formulated so far. Now the issue of constitutional debate is hopefully, going to over. Then Nepali will not always draft a new constitution rather do amendments as per the need of the time and will of the people as that of India which has gone over than six dozens amendments, or else where. If a constitution is democratic, ideal, flexible and comprehensive, it possesses a capacity to adjust and incorporate any national problem at any stalemate of the functioning, The so called 'best constituion-1990' had deterred this attribute.

The article 116 of that constitution had undervalued the power of the people which is going to be proved. Therefore, the upcoming constitution will not crash with the sovereignty of the Nepali people and prevent political upheaval in any circumstances.

What does the CA do? On the mandate of the movement, say it freedom fighter/liberation, anti-authoritarian or dictatorial regime, and referendum of the people, an interim or ad hoc government chart out basic fundamentals of common acceptance agenda and conduct the election of constituent assembly. The practices of CA were rampant when United States of America first drafted and adopted constitution through constituent assembly in 1787. The electorate or representatives of the council of the assembly are either directly elected by the adult franchise or elected by the conventions of the various constituents. The constituents depend upon geographical region, ethnicity, gender and such other strata of the population composition. Thus, the spectrum of the council of assembly will be vivid and mosaic of popular wills of wider participation. Having collected the general will of the people of the country, the popular representatives/delegates design the framework of the prospective constitution. Then the constitution experts, lawyers and socio-politico architectures say technicians, provide necessary inputs. The basic guidelines, views, principles as laid down in the prospective design by the assembly members are thoroughly pondered, weightaged, calculated the inferences then put into logical framework. Even the extra-state voices, grievances and demands articulated are aggregated and scrutinized, if deemed necessary or leftover.

CA is the legitimate body; so its authority is infinite or sovereign to do whatever makes the sovereign people happy and prosperous. This is the general will that a contractualist Rousseau used to term. The general will has no limitation unless the verdict of the sovereign people shift due to adverse condition or in otherwise. Therefore, the sole responsibility to chart out what sort of state law is required, lies on the prudence of CA. It has the greatest responsibility and duty to perform to any elected parliament that holds periodically.

The felt Imperative of CA: Nepali state/nation is under a current of great threat of the upheavals of fault-line conflicts. Restructuring and reshuffle of the politico-administrative structure of the sate for inclusive representation, social justice, equity and sustainability are the foundations of CA. All the stakeholders of the state who share the governance power should be dully valued. Over than hundred castes/ethnic groups (103), more than nine religious groups (9), more than ninety mother tongues (93) deserve socio-cultural identities. The gender imbalance, marginalized or weaker sections of the people sans empowerment, the vicious circle poverty and extreme topographic landscape and their synergic implications too compound the complex socio-economic phenomena. Therefore, the excluded/neglected spheres of human being and their well-being have to be resolved and addressed rationally in the impending constitution. The (nascent) democratic values and institutions have to be set up. All popular grievances and rights to dissent against inhumanity, etc are the serious considerations of constituent assembly. Therefore, let the popular voices be ultimate!

Need to Pursue a Comprehensive Progressive Transformation Approach in Economic Reforms

-Dr. Dilli Raj Khanal, Parliamentarian, UML

So far the reform policies have been partial with predominant emphasis on deregulation and opening of the economy. Care was not given even to fulfill some required initial conditions while pursuing reforms. In many instances policies were implemented without laws and market institutions. In the absence of policy co-ordination through wider consultation at political and stakeholder level following politician economy and institutional approach in policy making, policies were captured by some vocal and resourceful small group. No complementary policies or safety net programs were implemented simultaneously to compensate the losers. This led to increase the vulnerability in the society. As a result of increased patronage and clientalism system, the benefits or outcomes of the deregulation centric reform could not trickle down. The agriculture sector was bypassed in the reform process ignoring the agrarian reform key to ensure equitable growth. Policies were pursued quite opposite to the strategies advanced by the APP. By and large a homogeneity assumption approach was adopted in the policy making process following ready made neoclassical model ignoring the spatial, region and local specific conditions or prospects. The price hike centered policies accompanied by privatization propaganda made transaction cost very high and also public enterprises (expect those were encouraged to raise prices frequently) became increasingly drain to the government exchequer.

Asymmetries in macro policies along with rising transaction cost have had adverse effect on the competitive strength of genuine industries Weak corporate governance, in many instances, led to take undue advantages of trade related facilities. Above all, little attention was given to address serious structural and institutional constraints that were preventing small industries, small businesses, marginal and small farmers, workers in the informal sector and above all deprived people getting benefits from the reform led outcomes. No entitlement or right based approach in the areas of health and education were adopted as complementarities for ensuring social justice or equity. Reforms in state, bureaucratic and local institutions could not be pursued effectively key for better outcomes and delivery Many policies related or other decisions always created confusion, some time signaling that Nepal is in an advanced capitalist stage. The role of state and the private sector could not be clearly spelt out based on country’s unique socio-economic condition perpetuating underdevelopment. Therefore, in this political transition, certain consensus among major political forces in the economic front also will be required aimed at progressive transformation of Nepali society.

Redefining the Role of State, Private Sector and Community

One of the challenges before us is how to redefine the role of state/government and the private sector. Many liberal or open up policies pursued or committed make this task more difficult. At the same time, without liberal and open up policies, neither industry and business nor services sectors can grow and flourish. Similarly, in the present globalized system, competitive strength of our leading sectors must be enhanced to augment growth and thereby extract resources for uplifting the backward rural economy and improving the well being of the most disadvantaged socio-economic groups of the society. That means the state should not engage itself in trade, industry and business. But unlike present trends some distributional role and responsibility of delivering public utility services should remain within the domain of the government. The deflationary, male breadwinning (exclusionary), commodification (like private school, private hospital, private pension, private health insurance, private care for children etc) and anti-entitlement biases in the design of liberalization policies have had very adverse effect on poverty and income inequality globally. The recent emphasis on political economy and institutional approach and popularization of human development paradigm is the outcome of this. Therefore, more balanced through a strategy of strengthening complementarities between the role of state and the private sector should be there. In addition to creating enabling environment to the private sector through better governance and infrastructure facilities, certain incentive structure to the cottage and small industries and businesses should be envisaged by the state. Effective regulatory and facilitating role of the state should also be strengthened. Largely, state should play a proactive role in the development of rural economy through initiating a new transformation in the agrarian structure. At the grass root level, community and cooperative focused development strategy should be advanced by the state. The overall guiding principle in assigning role to the state, private sector and community should be the welfare principle.

Overhauling of Inequality Enhancing Agrarian Reform for Sustained Growth with Equity

In dominant rural based agrarian structure, production relations and land distribution pattern including policies improving production and productivity would have decisive influence on higher growth. Studies show that in countries like Nepal small farms are more productive than large ones. This means that this is the sector in which growth and equity go in tandem. This aspect despite hot debate in the political platforms never got prominence in the policy making. Even ignoring APP strategy, policies in the agriculture were largely influenced by deregulation drive on the assumption that relative changes in the factor market creating production incentive to the producers will augment production with certain spill over effect in the entire backward rural economy. The whole approach was geared toward large farms and land concentration. A sudden withdrawal of subsidies ignoring high subsidy in a neighboring country in a situation of open border and free primary trading arrangements has had very detrimental impact on both producers and subsistence farmers. The empirical studies carried out also refute the entire notion that supply response will eventually lead to make farmers advantageous (IMF 2002, UNDP 2003 and Khanal and Kanel 2005). Neither terms of trade have been in favor of the agriculture nor there were any considerable supply responses contributing to higher growth and productivity. The predominant source of growth has still been weather beyond the reach of the policies. Only variable positively affecting is the irrigation facilities which is still low. Inability to pursues policies linking our rich biodiversity with agro and forestry based industries not only retarded agriculture development but also constrained augmenting backward and forward linkages essential for strengthening rural and urban linkages.

.In Nepal’s context, agrarian reform is the key for progressive socio-economic transformation of the Nepali society. For this, unlike the past, at first somewhat market friendly land reform has to be launched. The landless and marginal farmers should be in a position to acquire minimum land that could ensure resolving their hand mouth problem. The extension services and infrastructure facilities should follow this. This will enhance not only diversification and commercialization of agriculture but also will lead to augment local resource and skill based industries. Only this course will ensure sustained growth and equitable development. For this correction in the deregulation centric policies will be required. More importantly, institutions have to be restructured in way that could ensure abolition of exclusionary practices.

Macro Policy Harmonization and Correction in Structural and Institutions Barriers

A big bang approach in certain areas has made Nepal one of the most liberalized countries in South Asia region. The average tariff rate averaging less than 8 percent is lowest in this region. Reforms in insurance and services sector have been very fast. Similarly, reforms speeded up in the areas of subsidy withdrawals and deregulations. In the areas of infrastructure also, price hike centered policies were pursued undermining the management improvement and efficiency issues. On the whole in some areas they were fast and in others they were slow or less effective. In the financial sector reforms were delayed which are causing major problem even today. Lack of comprehensiveness, wrong features and sequencing have had adverse growth and income distribution implications as pointed out earlier also. First, it is necessary to internalize the ownership of any reform initiatives. Unlike in the past, governance related reforms should become the part and parcel of the reform. Efficiency and management enhancement issues should come to the forefront in the areas of infrastructural reforms. This will require reforms in state institutions in general and bureaucratic institutions in particular. More importantly, mismatch within the macro policies has to be completely eliminated through their harmonization. It becomes imperative in this context to introduce ex-ante poverty impact assessment techniques in the macroeconomic policy formulation processes to examine the like distribution or poverty impact of policies. The asymmetry persisting across macro, sectoral and micro policies vis-à-vis the development approaches has to be corrected and rationalized to make those coherent and consistent with sustained growth and poverty reduction goals. The present pegged exchange rate with India needs reconsideration to ensure elimination of misalignment in relative prices for reversing the worsening competitiveness of Nepal’s agriculture, industry and trade. Likewise, in the financial sector, the gap between deposit and lending rates has to be narrowed substantially by augmenting structural and institutional reforms in the entire financial sector, while at the same time guarantying credit access in the rural areas. In addition, drastic reforms will be required on the industrial and trade fronts. In this respect, special incentives will be essential for small industries and trade through legal and other means. This will strengthen macro-micro linkages by enhancing backward linkages between industry and trade. Corporate governance likewise needs special reforms together with substantial reduction in transaction costs. This calls for comprehensive reforms in state and market institutions. On the fiscal front, many asymmetries have been perpetuated over time. The cascading tariff and revenue structure has to be corrected. The development budget needs a big push for enhancing the productive capacity of the economy. Unless infrastructures are substantially developed, the reform will neither be sustainable nor couldthe private investors operate with adequate level playing field. Apart from these macro and sectoral reforms, it is critical to ensure that there is a paradigm shift in terms of enforcement of participatory grass-root development approach. This will require, among others, introduction of the concept of local governance in which elected local bodies have full control of the budget and can independently implement development activities. This would require complete devolution of power and fiscal decentralization. In Nepal’s context, complete restructuring of the present state structure will be required from equitable development perspectives. All these demand comprehensive and far-reaching institutional reforms.

Excerpts from the author's paper at a ADB/NEA seminar held in Kathmandu on June 30, 2006 last month. Thanks the ADB/NEA and the author-ed.

Youth, Media and Peace: An Observation from Economic Perspective

Prof. Gunanidhi Sharma

Economic development brings prosperity, which, in turn, is expected, in general, to serve as the precondition for peace and democracy. In order to accelerate the pace of development the nation needs overall change in social perceptions with stress on material well being that eventually induces the society to move further towards higher stage of socio-economic transformations. The transformations are said to be efficient when they make the process of economic development more meaningful with its eventual impact on diverse interests. This is particularly true in a plural society which is presumed as the by product of the social capital comprising, specially, the national, human as well as non human, diversities. The human diversities are found in a nation's ethnic, cultural, regional and, above all, the social fundamentals. In this sense, economic prosperity is not the only consequence of technology and physical resources. The social and institutional aspects of the initial conditions for growth and transformations may be not less vital in shaping the process of change and determining its higher level magnitude. The social and institutional aspect of the determinants of development, however, must not be as rigid, static and stagnant as to prevent the alterations in habits, tests, perceptions and intergenerational choices as in Nepal with their otherwise impact on market expansion for high value added products generated by the hybrid from of activities like commercial agriculture and core industrial undertakings.

System, in deed, needs to become sufficiently rigorous, flexible and dynamic in order to make the society affluent. Flexibility is not possible in a situation where a preoccupied mind set of rulers yield nothing but only the institutional legacy working in favour of those who are already privileged. This thesis of social upliftment demands shock treatment in an indefinite world which is in need of the definite role of youth and media, who are activating each other.

Of course, a flexible scientific society relies more upon media and youth whose role is of an engine that keeps the process of social development going. Both media and youth make the nation technologically sound and institutionally competent, as they always are in search of a new but the hybrid order consistent with its counterpart abroad. Process of globalization is made inclusive in the country with this. This possibility is visible when the media defuses information of all types at all levels, the youth, who are highly sensitive to the change in world context, apply the new discovery so informed by media to almost all of the economic, social and technological fields. With this even old institutions get younger through youth's and media's confrontation or encounter with the rigid version of the societal practices. In fact, youths and media are the valuable resources available to any society who, in accordance with the law of contradiction, are efficient in managing 'shifting transitions'. Transitions are also made smooth but in favour of all who are in need of fairness in national treatment. Peace is delivered straight automatically when the fairness in national treatment is resumed. Thus, in a dynamic and responsible social system youths and media are the prominent catalysts who work for an efficient but egalitarian social order as a result of which they assume the role of the commanding heights included in social, institutional and soft infrastructures. Nepal must be grouped into a lucky country where both youth and media, time and again, have been effortful in making their rigorous attempts so as to find the system convergent towards social stability, essential for peace and prosperity. They are also active in resuming political and economic democracy.

At the moment, Nepalese youths and media are supplementing each other in a bid to resolve inherent crisis of political leadership, governance, economic development, regional and ethnic balance, gender equality, human rights and child labour, environmental balance, health and educational opportunities, etc. The role, mainly, of educated youth and socially responsible journalism seems vital in this regard.

Of course, some more than one million illiterate, semiliterate and technically literate persons among youth have left the country during recent years. Others are raising even arms against the establishment. Reasons for this are given as: social exclusion; unemployment; underemployment; liberalisation; non-performing governance; discrimination; uneven distribution of wealth, income and opportunities; depravation; etc. Therefore, the instability of all types is at hand. It is held that instability is due to systemic flaws against which educated youths and media have been raising voices.

Looking at the proportion of the population of productive age group between 15-60 years at present, which is 54 percent, one would definitely be hopeful in the country's economic and social future. But for the systemic mistakes in political process and governance expectations are highly institutionally distorted. Country is experiencing multifaceted problems of internal as well as external origin, as a consequence of which each of us in society have to pay a high price in terms of the various costs involved in the losses of life, property, social opportunities, promising future, social harmony and national integrity, the recovery of which may require a long time which a poor nation like Nepal can't afford. As there is a strong nexus between present and future, the future of crisis too is overwhelmingly made viable. This deepens crisis further and makes the situation even more complex, providing a fertile ground to the elements at home and abroad who are keenly interested in an unstable Nepal.

Of course, Nepal, at present, needs a smooth transition from a feudal and traditional society to a modern capitalist system where every one of us is efficient in harnessing personal, social and national assets including time, efforts, talent, character, money, biological- human and other physical- diversities, stock of knowledge and property, etc., in such a way that factor productivity all over the country is enhanced and economic growth is accelerated. This keeps economy functioning. As the economy becomes aware of its prosperity, the momentum of pace of development is gained and, hence, ready for takeoff. It is in this sequence that the economy is expected to take care of itself.

The problem, however, is of willingly participating in the development process of all resources all over the country in whatever form they are, such as: natural and human resources, culture, ethnic and biological diversities, institutional capacity in governance, climatic variations, stock of knowledge and so on. It paves the way for sustainable peace and democracy. This also highlights the importance of non-economic factors in economic development. This also magnifies the issue of reducing Nepal's absolute dependence focused on international trade, aid and FDI in course of economic development. Mainly, either the lesser participation of all resources, or the idleness in resources at a time when population is growing constantly by over 2.5 percent over decades, compared to the similar pattern of economic growth, is a contradiction facing Nepal. These anomalies need heavy corrections in development perspectives, policies and strategies. Of these, local self-governance in approaching indigenous resources, technology and community management appears highly essential. The role of Nepalese youth and the media at all levels in this game of restructuring the development thinking and organizing the state, community and local bodies activities seems imperative. Once it is realised, not only would stability be restored, but peace and democracy in its true sense would also be eventually attained.

Framework for peace processes and negotiation in Nepal

Dr Bihnu Raj Upreti, Member, South Asia Peace Alliance

Nepal is at the crossroads of fundamental transformation after the recently completed successful ‘April Revolution’. This is a unique opportunity for Nepal to be a peaceful and inclusive nation state from a centuries-old feudal and hierarchical nation, if the transition and peace processes are managed successfully. It is also important to note that the armed conflict of Nepal is entering into a unique phase, once ‘one-time-enemies-turned-allies-turned-contesters’ are entering into a complicated negotiation process. Theoretically, there is no major issue remained to be negotiated once the government of Seven Party Alliance (SPA) and parliament accepted the constituent assembly election, which was the sole demand of the Maoists. The historic 12-points understanding reached between the SPA and Maoists provided a broad framework not only to end the 15-months autocratic rule of the king but also for a negotiated settlement of the decade long armed conflict. However, there are several potential operational complications and challenges in the coming days and months particularly in the procedural matters. History of several war-torn and conflict ridden countries have demonstrated that process and procedures are fundamentally important to translate theoretically reached agreements into action. The main reason of failure of many negotiations and peace agreements were ‘wrong’ or ‘inappropriate’ processes and procedures. In this paper, a brief framework for a peace process and negotiation is discussed.

Process: In any peace talks and negotiation, wrong or inappropriate procedures often lead to inadequate outcomes or even failure of entire process. Right process and procedure alone can not lead to the desired outcome if there is no full commitment of the parties in conflict. However, getting process right greatly helps to achieve the commitments of negotiated settlement of the parties in conflict. Following are some of the internationally established steps proved to be successful in leading to reach a negotiated settlement, if concerned parties are committed and willing to settle the armed conflict peacefully:

Ceasefire, ceasefire agreement and its monitoring: Fundamental step to keep peace process alive is to have a clear ceasefire agreement between the state and the rebel groups and well established mechanism for its monitoring. So far, there is no ceasefire agreement. The ceasefire agreement must contain:

Clear provision of code of conduct to be followed by both parties during ceasefire period (what should not be done during the period of ceasefire, procedure of settlement of potential disputes arises if any, etc.),

Ceasefire monitoring mechanisms (that should include national credible individuals, organizations and even international organizations, where necessary) with clear mandate, procedure of verifications and dispute settlement. Such ceasefire monitoring mechanism need to be established and institutionalize at national level as well as in each district,

Creation of conducive environment for peace talk: there are always some operational obstructions such as arrest orders to rebels, mobility ban, forced donation from rebels, continuity of armed activities, etc. which must be suspended to regain lost trust and build confidence among each other. Sincere implementation of Code of Conduct and proper monitoring of ceasefire monitoring create conducive environment. Officially, the CPN (Maoist) is still under the terrorist list of Indian and US governments, the two influential forces in the politics of Nepal , which could potentially be an obstacle in due course of time of negotiation and therefore Nepal government and Maoist leaders need to think this issue.

Formation of negotiation team: Fully mandated, strong, committed, small and informed negotiation team form both sides is one of the important operational factors in making negotiation successful. In addition, several small ‘working groups’ can be formed to assist the negotiation team on specific technical issues (such as restructuring military, managing arms and weapons, addressing issues of internally displaced persons, human rights, reconciliation, structures and process of constituent assembly election, DDR, etc.). If and when needed, broader ‘negotiation support group’ can be formed representing major stakeholders (civil society, political parties, women activists, dalit, business community, expert groups, etc.) to assist negotiation team. Provision of obtaining regular feedback and public concerns and accommodate them should be specified. Unless a clear mechanism to bring local concerns and voices of people into the peace talks, only elite-centric negotiation can not ensure negotiated settlement sustainable.

Peace talks: Peace talks should be started with creation of conductive environment and meeting minimum requirements defined in Code of Conduct and ceasefire agreement. Once pre-negotiation pre-requisites are met, peace talks should be initiated as:

Agreeing on agenda and procedures of peace talks (e.g., venue, date and time, minute taking, maintaining balance between confidentiality and transparency, identifying spokesperson to bring progress in media and public, implementation of agreed agenda, mechanism for resolving differences arise during the talks, involvement of facilitators: national or international or third party, if any etc.),

Start first with simple and less complicated issues, agree on them and document with signature of both sides and immediately implement the agreed points (that develops public confidence, facilitate to agree on complicated issues), enter into complicated issues only when full confidence between both parties are developed, pause the peace talks if complications arises and seek help of facilitators and specialist ‘working group’ and explore all options and resume talks to settle the differences.

Respect the public opinion and voice of people during negotiation, and do not focus on position but concentrate on needs and interests’. The guiding principle for the SPA and Maoists is the ‘people’s want for peace’, which is possible only through the negotiated settlement of the decade long armed conflict.

Define and finalize all institutional, administrative and regulative arrangements: new arrangements and provisions are needed to implement the decisions reached in the negotiation table. For example, interim government,, may be interim constitution and other many regulative provisions are essential to implement the agreed agenda. Therefore, these arrangements should be spelled-out in detail and agreed upon by the both parties and make them as part of the content of the ‘Peace Accord’.

Content of the peace talks

In the agenda of peace talks, all major issues and concerned must be included for the discussion and reaching agreement. In the case of Nepal case, dis/continuity of the parliament, whether to have national-all-party-conference, mode, representation and structure of interim government (who leads, how many participate on what basis), whether to have interim constitution, constituent assembly election (structure, process, specific procedures, mode of representation, number of representative, etc.), managing arms and restructuring of state’s military and rebel forces (including their adjustment: option would be- integration in national security forces, foreign employment, public security and home guards, reconstruction labour, vocational skill training for employment, etc.) restructuring state security forces, management of internally displaced people, investigation of disappeared people and human rights abuses, truth and reconciliation, right to self determination and state structure (such as federal structure v/s others), nature of inclusive state, ensuring rights of all stakeholders (dalit, women, ethnic groups, disables, geographically excluded, etc.), DDR, etc. are some of the important issues to be included in agenda (with detail explanation on what, how, when).

Signing Peace Accord

Logical next step is to include all agreed points from the peace talks into ‘Peace Accord’. This document must contain details of outcome of negotiation (each agreed issue to be elaborated in annexes on how to implement, who to implement, when to implement, what types of resources, institutional and legal arrangements are required, what procedures to follow if some complications arise during implementation of the agreement, etc.).

The ‘Peace Accord’ should be finally signed by the supreme leaders of both sides (SPA plus Prime Minister and Maoist leaders) with witness of civil society leaders and international community, when needed.

‘Peace Accord’ must the overall guiding framework for the interim government (represented by SPA, Maoists, civil society), whose mandate would be to implement the articles and sub articles of the Peace Accord.

If SPA, the government and the Maoist leaders do internalize these steps, it will facilitate smooth peace talks and greatly help to reach a negotiated settlement and establish lasting peace in Nepal . Even though principle issue (i.e. holding constituent assembly election) is agreed, right process is needed to reach there. Right process leads to right outcome, rarely wrong process and procedure also lead to right outcome but often ends with wrong result. Therefore, the good intentions, commitments and willingness of SPA and Maoist leaders to restore peace in Nepal should be framed in a right process and procedure. So far, preliminary indicators are hinting that the process is not fully getting right direction.

4. Settling fundamental difference:

Some important differences between the SPA and the Maoists are surfaced recently. They are:

Differences in opinion about the Parliament: SPA wants to keep it going until the election of constituent assembly and having new elected body (or at least until having another people representative body) citing the justification of potential threat from the reactionaries in absence of the Parliament. In contrast, the Maoists and a critical mass of civil society demand to have all-party-national-conference and dissolve the parliament. Their argument is that the existing parliament does not represent the Maoists and civil society, two of the main forces of the people’s movement, some members of the existing parliament are reactionary and anti- people’s movement, some other members are corrupt and facing court cases and therefore it cannot be true representative of people and the mandate of the peoples movement. If this difference widens, it could affect the whole negotiation process. To overcome this problem, a ‘Supreme Council’ can be formed by having Maoist leaders, SPA leaders, representative of Civil society and other concerned stakeholders (e.g., business community, professional organization, journalists, Dalit, Janajatis, women, Disables, etc.) to instruct the parliament and the government. In this case, even if the parliament is there, this supreme body will guide it. The provision of ‘Supreme Council’ must be properly elaborated in the interim-constitution to overcome potential disputes. By doing so the issue of dissolving the existing Parliament could be solved.

Differences in opinion about restoration of local bodies: There are some operational difficulties as there are two parallel local governments are operational at local level. The restoration and activation of DDC and VDCs are and existence of Maoist Janasarkars will create conflict and confrontation. So either both bodies have to be dissolved and form a consensual representative body by representing all major concerned actors, or create a common mechanism (probably similar to the Centre) to coordinate all development and other activities at local level. This will be a transitional arrangement until the election of constituent assembly.

Managing arms and preventing unwanted influence on the constituent assembly election from the armed forces of both sides: This is a real challenge. Managing arms does not relate to Maoists arms only. Managing arms of the state is also equally essential, as civilian government does not know how much arms and weapons are with army and if some of the senior army officers (who are unhappy with the recent political change) could misuse/abuse arms (this happened in East Timor and can happen in Nepal too). Same argument also applies to Maoists armies. Therefore, it is essential to lock the arms of both sides in containers and keep keys with international/national monitors and respective parties (the government and the Maoists).

So far both sides have not realised the importance of ceasefire agreement and interpreting agreeing on Code of Conduct is equivalent to ceasefire agreement. Undermining the prime importance of ceasefire agreement is knowingly or unknowingly undermining the aspiration of people’s movement. Ceasefire agreement could save the peace processes in the critical juncture of collapse.

A small but strong team of credible personalities (probably combining people from national and international organisations) to support the process will be useful in facilitating process, being witness and guaranteer for some contested issues.