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VOL. 27, NO. 25, February 29, 2007 (Falgun 17 2064 B.S.)
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Promises And Commitments
Nepal's development partners promise to support the country generously provided there is peace, stability and election
By SANJAYA DHAKAL
The two-day (February 21-22) Nepal Donors Consultation Meeting (NDCM) adopted a festive atmosphere with over 100 representatives of bilateral and multilateral donor agencies participating in a development discussion with the government.
In the absence of biennial Nepal Development Forum (NDF) meeting, which could not take place in 2004 due to political instability, the government had called this NDCM as a platform for sharing ideas and experiences and discussing development agenda for Nepal – ahead of a full-fledged NDF planned to take place in the fall of 2008 once there is an elected government in place in Kathmandu.
Since day one, the donors had stressed on the need to take the peace process to logical conclusion by having the twice-delayed election on time.
The donors stressed that while they are willing to play their role in the development and post conflict reconstruction, all that would hinge on the restoration of peace through the election of Constituent Assembly (CA).
"Inclusive and credible elections are critical for the peace process and for development progress. We support the full participation of women, Dalits, Janajatis, Madhesis, religious minorities and other excluded groups across the country. A representative Constituent Assembly that will debate and agree on a new constitution will realize a long standing promise to the people of Nepal, and can help ensure that all Nepalis have a stake in the creation of a new and inclusive state," said Liqun Jin, vice president of Asian Development Bank (ADB), who addressed the NDCM on behalf of the development partners.
The donors have admitted that there are still formidable challenges and obstacles before the 'peaceful, prosperous and just Nepal.' "These include exclusion, rising inequality, limited access to often poor quality services and increasing social disruption and instability, particularly in Terai," Jin said.
At the end of the two-day conference, the donors' committed to support in improving rural infrastructure, water supply and sanitation, health sector, education and strengthening of financial management to combat corruption.
Donors' Concern
The government officials say that the NDCM meeting was fruitful in that the donors were able to express their concerns in a frank and forthright manner.
"I must say that the conference was very productive. The donors did raise some concerns. One was about the election – whether it will be held on time or not. The other was about the post election phase. They appeared concerned about the government's plan after the elections are over. Then they raised the issue of implementation and about the need to combat corruption," said Dr. Jagadish Chandra Pokharel, vice chairman of the National Planning Commission (NPC).
In an attempt to allay the fears and apprehension of the donors, the Prime Minister himself assured them of timely election.
"The Constituent Assembly is the place from where every problem facing the nation can be resolved. I want to assure the international community that the election will be held on schedule. Nobody needs to doubt it," PM Girija Prasad Koirala told the opening session of the NDCM.
PM Koirala while thanking the international community for their support towards the struggle of people of Nepal for establishing democracy, asked them to be considerate about the specific needs of a land-locked country like Nepal.
In the clearest indication of growing apprehensions among the donor community, the participants issued a joint statement ahead of the conference and expressed grave concern over the threats to peace and development in Nepal, especially in Terai, and called for a peaceful solution.
"The international community expects a peaceful and democratic process of change. However, we note with grave concern the situation in the Terai, and we fully support efforts to address the current situation," a joint statement issued by the participants of the Nepal Donors Consultation Meet said. The statement further reads, "Nepal's future depends on its political leaders working together to take the country through these difficult times; implementing commitments and agreements made, supporting the rule of law, pushing forward with vital economic reforms that will create jobs, and delivering the development gains that only peace can provide."
"In all of this, we remain fully committed to helping the people of Nepal build the New Nepal they so desperately want, and so deeply deserve," they said. The donors also stressed that it is vital that the political leadership move ahead with implementation of agreements for the inclusion of all excluded groups in the civil service, the security forces and elsewhere, and discussions on the future of the armed forces in line with existing agreements. "We also look forward to a New Nepal where human rights are respected, and impunity for past and present abuses is ended. Children's rights should be addressed, and the orderly discharge of minors from cantonments, properly supported, should proceed without delay."
Purpose of NDCM
Addressing the NDCM function, Finance Minister Dr. Ram Sharan Mahat said the meeting was organized to apprise the donor communities about peace process and development priorities of the country.
"We proposed to hold a broader donors consultation meeting to exchange views on Nepal's peace process and immediate development priorities. At the same time we are also holding this meeting also to express our gratitude to international community for the moral support extended to us two years ago when the people of Nepal were rising against autocracy and for the cause of inclusive democracy. In this sense, this meeting is not a full-fledged NDF meeting. For our development partners, this is also not a pledging meeting. We are here to communicate to each other face-to-face on issues that Nepal is grappling with today," said Dr. Mahat.
Vice president of Asian Development Bank (ADB) Liqun Jin also welcomed the opportunity to jointly review achievements, plans and implementation challenges.
"This is a critical moment in the country's history. A moment where centuries of exclusion and disadvantage can begin to be reversed. A moment which calls for the strongest leadership and vision. The successful implementation of the Comprehensive Peace Accord and subsequent agreements is vital to move the country towards lasting peace," Jin said.
Positive Assessment
During the NDCM, the government as well as the donors both also positively assessed some of the progresses made by Nepal during this difficult period.
"A recent report shows that Nepal's child mortality rate declined sharply by 48 percent to 61 per 1000 births in ten years. In the same period, infant mortality rate declined from 79 per 1000 births to 48. There has been similar improvement in maternal mortality rate and total fertility rate. While this is largely due to reforms implemented in these sectors, it is also due to pragmatic funding approach adopted by our development partners," said FM Dr. Mahat.
"The most notable of our achievements has been the reduction in the number of people living below absolute poverty. The Nepal Living Standards Survey 2004 showed that poverty level declined by almost 11 percent point in a period of eight years. Remittance income, increased public investment in rural areas with emphasis on infrastructure building and social sector, expansion in micro finance coverage and urbanization has been attributed for this feat. But no less is the contribution of economic reforms and higher growth rate achieved in the last decade," he added.
The ADB's vice president Liqun Jin also commended the progress in poverty reduction and the attainment of 90 percent enrolment in primary level education.
"Development partners wish to recognize that Nepal has achieved notable development progress and pursued sound macroeconomic management in recent years. Poverty has been reduced from 42% to 31% over the past decade, with a significant contribution from Nepalis working abroad. Annual deaths of young children, and mothers in childbirth, have been reduced by a half and more than twice as many cases of TB are now being successfully treated. In education, almost 90% of Nepali boys and girls are now enrolled in school, one of the highest rates in the region. During the last decade, seven remote districts were connected by roads, and 2.6 million Nepalis, mostly in Terai, received citizenship. The government has also maintained macroeconomic stability: fiscal deficits have remained modest, inflation has remained broadly stable and foreign exchange reserves have increased significantly. Despite huge challenges, and lost opportunities, these positive achievements during a period of conflict should be recognized and indeed are a measure of what might be achieved in the context of a secure peace," Jin said.
All in all, the officials believe that the donors are more than willing to support the country if they are able to hold election and restore peace. The donors have indicated that they will be generously supporting the post conflict reconstruction and make pledges for aid during the forthcoming NDF.
