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VOL. 27, NO. 25, February 29, 2007 (Falgun 17 2064 B.S.)
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"We Should Give Political Parties Sometime To Work Out Their Differences"
Liqun Jin
Asian Development Bank (ADB) Vice President of Operations Liqun Jin was recently in Kathmandu at the invitation of the Government of Nepal to participate in the Nepal Donors Consultation Meeting. Prior to joining ADB, Jin was the vice minister of Finance of the People's Republic of China (PRC). In that capacity, he served as Alternate Governor for the PRC at ADB, the World Bank Group and the Global Environment Facility. Excerpts of his viewpoint delivered at a press conference organized by Jin before wrapping up Nepal visit:
How do you see the over all situation in Nepal?
The Constituent Assembly election scheduled for April is a vital step forward. The Government has demonstrated its commitment to the reform and development agenda and must continue with efforts to maintain a conducive environment to move the country towards lasting peace.
What are the areas for new development?
Our resident mission is considering a lot of packages in the pipe line. We will support all those packages in pipe line. Basically we have two kinds of programs, one is directly targeted at the poorest of the poor and another is infrastructure project, which may help in the economic development in the long run.
As ADB is said to be evaluating Country Strategy Program, do you have any plan to modify it?
One part of the fine tuning might be identification of project operations in this country. We have some projects in pipe line. Because of political situation, a lot of projects are never materialized. Now it is time to go back identifying viable project operation.
How do you see the possibility of participation of private sector?
Private sector business people are still worried in this country but I have seen some positive signs, for example, half a million tourists came to this country last year. This is a clear indication of the general confidence in the peace process from the western countries and from the neighboring countries that may help to build a private sector operation.
How will the ADB support the private sector?
My idea is to support any private sector operation which can help medium enterprises to go forward. This is my personal view and I have yet to discuss this with our colleagues. We can attract private sector in the development of the hydro power with help of the government as the government can set some rules and regulations with regard to the environmental protection and resettlement of the people. We can also attract foreign investors to invest in 100 or 200 MW projects. That would be very positive for the country like Nepal. It will also help strengthen the bilateral relations between India and Nepal.
How can generating power change the situation in the country?
If you can generate power, you can sell hydro power to India and that may help to generate revenue to buy fuel. It could be very good cooperation. I know that recently remittance in Nepal has increased sharply. Overseas workers send remittances from countries like Malaysia and the Gulf. India's economic progress will give direct benefit to the labor of Nepal. I look at the hydro power resources development as a very good opportunity in developing your country and enhancing social and bilateral relations between Nepal and India.
At a time when Nepal is going through an acute shortage of power, do you have any plan to support new power projects?
We are open to any proposal. International community has long been concerned about the development of hydro power basically on environmental front. So ADB has been very cautious in dealing with hydro power projects. With the increase on the global concern on climate change, you may find there is change in the sentiment.
What is your impression about Nepal's hydropower?
In Nepal you have so many hydro power resources. If you can tap even ten percent of electricity, this fuel shortage will be greatly limited as your government can generate resources to buy the fuel and will find easier to cope with the situation. We need to pay attention toward eco-environmental balance to protect the flora and fauna when developing hydro power. It could be done. I am very much confident that Nepal can develop hydropower resources and at the same time improve environment.
How were ADB's programs affected by the conflict in the past?
We have worked with government and local people to mitigate the impact of conflict on implementation of the project to the extent possible. I cannot say our projects were not affected at all. Of course, they were affected but through our joint efforts we have minimized the effects on ADB financed projects. Even under the conflict situation, we still managed to improve implementation and monitoring of projects because the people who are benefited came as the strongest supporters.
How optimist are you about future programs in Nepal?
Now, I believe the peace process will go ahead because all of the parties concerned are fully aware of the high stakes all of them have in this process. I talked to the leaders of CPN-Maoist and they told me they are deeply committed to the seven party coalition and they are deeply committed to the peace process. It is very much encouraging.
What is your impression about peace process in Nepal?
I am confident that the people will go ahead and push forward peace. I think anyone who disturbs this process will be unpopular in general public. Five or ten years ago, everyone visualized the benefits of this kind of process. I was very much impressed when I addressed the meeting when all the political parties represented in the government and opposition were sitting there under the same roof. This is a huge progress. I am very much moved and I was very much touched. More we strengthen the peace process, more the people will get benefits.
Do you see any possibility for participation of private sector in investment?
One of the most important things for the private sector investment is the political stability. Private sector is always comfortable when they see the political stability and when they can see the government can implement economic policies without major disruptions. They can take commercial risks but they cannot take any political risk. Now we are reasonably sure that the peace process will move forward and the government can implement its economic policy without any major disruption.
As Nepal is still facing unstable political situation, how can the private sector will invest in Nepal?
Who knows out of these more than half a million tourists, there may be some private sector people who came here looking for business opportunities. Of course, out of these half a million people, there are a lot of business people who wanted to take a look. I think the interest has increased in investing in Nepal. I don't downplay the difficulties involved but we should give political parties sometime to work out their differences. Even in a big family, if seven brothers are fighting for some time. Do you think we can expect them smiling at each other overnight? I don't think it is easy. I was impressed by the atmosphere here in Nepal when all the parties are sitting under the same roof. They don't have any animosity with each other and they were talking about each other.
How do you see the agitation in terai?
As I said, we are seriously concerned about the situation in terai and we urge government to address the problem. I look at this issue in different perspective. The peace process and seven parties coalition makes it easier for the government to deal with some of the remaining issues and that is the key. You have successfully handled many issues. Terai issue is an important issue for seven parties to work together in the interest of this whole nation. I do believe that if economic development and growth can go forward on basis of stability, the government will be capable to deal with all these issues.
