A milestone in conservation

The recent joint effort involving national and foreign conservationists to relocate ten rhinoceros to Bardia and Shukla Phanta is an important achievement. The ten rhinos will boost the rhino population of the aforementioned wildlife reserves, ensuring the bio-diversity of Nepal.

Nepal is endowed with an array of flora and fauna, and is a leading country in the world in terms of its botanical and zoological variety. Nepal has understood this early and established and maintained national parks and wildlife reserves for the protection of its wildlife and maintenance of habitat to save its many endangered species. This steady effort has, however, encountered obstacles. Poaching probably stands as the biggest challenge to the combined effort of conservationists who would like to see such endangered animals as elephants, tigers and rhinoceros thrive. Another factor affecting conservation efforts is encroachment of protected forest reserves which has significantly led to deterioration of sensitive habitat. This has forced animals to either migrate to India or move towards extinction.

It is up to the government to formulate and implement conservation policies. However, it is important that these policies be practical. In the case of the current translocation of rhinos, the question of feasibility: whether the rhinos from Chitwan can survive in western Nepal must be evaluated. We can
be hopeful for the previously translocated rhinos appear to be thriving at both Bardia and Shukla Phanta.

The problem of encroachment, must be dealt with firmly. The dependence on firewood must be reduced by using such alternatives like bio-gas or managing forests wisely so that it benefits the locals and also meets conservation goals. The use of army personnel in policing the protected areas demonstrates the government’s resolve to enforce conservation efforts.

The repercussions of resettling Kamaiyas in western Nepal in either near or around the conservation areas or even in other forested areas would be nothing less than disastrous to conservation efforts. This sensitive issue therefore needs to be carefully addressed. The increased political pressure associated with forest encroachment is heavily deteriorating environment. Such politically orchestrated deforestation and the interrelation of conservation and other socio-political issues ought to be separately and collectively addressed.

Nepal cannot afford to let this vital resource, its biodiversity go neglected. The government recognises this well. Thus, the present effort by King Mahendra Trust for Nature Conservation (KMTNC) and World Wildlife Fund (WWF) has to be applauded.

Sub-regional cooperation in South Asia

By Mohan Lohani

It is common knowledge that Nepal took the initiative four years ago at the SAARC Council of Ministers held in New Delhi in December 1996 for sub regional cooperation among Bangladesh, Bhutan, India and Nepal (BBIN), constituting what is popularly known as a South Asian Growth Quadrangle (SAGQ). The first meeting of this quadrangle attended by the Foreign Secretaries of the four countries was held in Kathmandu in April 1997. The Foreign Secretaries reaffirmed the commitment of their governments to pursue sub-regional economic cooperation for accelerating economic growth, overcoming infrastructural constraints and developing and making optimal use of complementarities, particularly in the production sector.

For rapid economic development, emphasis was laid at the meeting on identification and implementation of specific projects of cooperation, characterised as "building blocks" for sub-regional cooperation in core economic sectors such as trade, investment, tourism, energy, environment, multimodal transportation, communication and sustainable as well as optimal utilization of natural resources.

Some guiding principles were also laid down at the first meeting to the effect that all specific projects related to the core economic sectors mentioned above, would support and complement national government policies and programmes, fully utilise the talent, expertise, and resources of the countries and, last but not the least, would encourage as well as mobilize the private sector to participate in the implementation of projects and activities identified collectively. It can hardly be disputed that sub-regional projects should aim at improving the quality of life of the people in the sub-region in terms of poverty eradication, employment and income generation and social welfare.

The foreign secretaries took a wise decision to adopt a prioritised, practical, action oriented, time-bound and incremental approach in selection, development and implementation of projects. In other words, the Plan of Action agreed upon at the first meeting of Foreign Secretaries visualises a phasewise approach to project identification, pre-feasibility studies, funding arrangement and implementation. Nepal, designated as the overall coordinator for activities during phase-1, hosted the second meeting of Foreign Secretaries of the countries in growth quadrangle in July 1998. The second meeting, apart from endorsing the assignment of sectoral coordinating responsibilities to the participating countries, approved the working modalities at the sub-regional and national levels.

So far as Nepal’s responsibility at the national level is concerned, it has discharged the obligations as specified in the decision of the second meeting of Foreign Secretaries of the 4 countries, namely, the formation of working groups consisting of officials and experts to examine and formulate specified projects in the identified core economic areas of Multimodal Transportation and Communication and Tourism followed by the setting up of a National Coordination Committee with the Foreign Secretary as its convenor, Nepal, as the overall coordinator, wrote to other participating countries to set up working groups in the core economic sectors assigned to them as well as the National Coordination Committee.

The readiness of the private sector, in particular the business community, to get involved in sub-regional projects is extremely encouraging. No less encouraging is the response of multilateral institutions like the World Bank and ADB, which have shown interest in financing some sub-regional projects for which pre-feasibility studies have been undertaken. Ongoing studies in areas such as an energy grid for the whole sub-region and multimodal regional transport links confirm that sub-regional cooperation is a realistic enterprise and that it can bring prosperity to half a billion people inhabiting the interlocked Ganga-Brahmaputra basin rich in natural and human resources.

Despite the encouraging statement of intent contained in the Report of the first meeting of Foreign Secretaries, it is a pity that no project designed to promote quadrangular cooperation has thus far been finalised for implementation. It may be noted that three of the 4 countries in South Asian growth quadrangle (SAGQ), namely, Bhutan, Bangladesh, and Nepal are also categorised by the UN as the least developed among developing countries. The lack of infrastructure is a severe development constraint of these countries. As SAARC is heading towards SAFTA, experts wonder whether South Asian LDCs, would gain much from "trade complementarity" since most of the items they trade with each other overlap. A Nepalese development expert, Madhukar Rana, observes that SAGQ is not about SAPTA and SAFTA. In this context, he refers to the fears of asymmetry in the subcontinent and the opportunities created by the Gujral doctrine of India based on non-reciprocity to assuage the fears of asymmetry. To quote Rana again, we expect India to innovate with respect to creating opportunities for trade by the poor themselves, especially those living contiguously.

Lack of trust is no doubt the greatest stumbling block to meaningful cooperation. The donor community, be it bilateral or multilateral, can and will come forward to invest in sub-regional projects only if and when it is convinced that there is a genuine desire among the participating countries to trust each other and to cooperate sincerely for mutual benefit. Cooperation presupposes a meeting of minds, a new mindset free from the legacy of the past and the willingness to accommodate on a footing of equality. It is necessary for the countries committed to the growth quadrangle not to become prisoners of the past.

The official SAARC process is deadlocked at the moment. It is important for other SAARC bodies known as the Track Two process to continue building up the initiative on quadrangular cooperation. Such process, while it promotes mutual trust, goodwill and understanding and creates a congenial atmosphere for quadrangular cooperation, can also influence governments to revitalize the SAARC process at the official level. The indefinite postponement of the eleventh SAARC summit has caused concern, to, not only the people in the region, but also to many well-wishers and friends abroad. Track Two meetings such as the workshop which was recently held in New Delhi and the first three-day meeting of the Citizens ‘Commission for South Asia scheduled to take place in Kathmandu this weekend can certainly generate the momentum to keep the SAARC process alive. Such meetings at the NGO/unofficial level should be held as frequently as possible and its deliberations as well as recommendations should be widely publicised in the media and disseminated so as to promote people-to-people contacts and initiatives.

They have heaters

By Sagun S Lawoti

What logic: It is not the politicians, not the political parties, no, not anybody else but the Constitution that is to be blamed-as everybody, everywhere suddenly feel our decade old democracy is not functioning well. Remedy: Constitution has to be reviewed.

Septuagenarian PM Girija Prasad Koirala wants to be the NC boss once again-so that the party-building process never ceases. A Navajiwan and Chyawanprash filled high-powered strength-less reason that is.

That’s that, but talking of PM Koirala is bound to remind of this. "Mafia" exists in the Parliament, a very gusty introspection that was from the PM himself. However an overview, the Premier’s words are as disturbing as they sound. In some ways as hard as iron, as nothing moved thereafter. From Koirala to Karmachari, from cop to criminal, no one budged. Everybody seemed oblivious. No wonder TIA has become the coveted terrain to work on-notice birds of all feathers flock there!

But again the point is there are Mafia in the parliament. What irony: nobody takes action. Pun intended, the PM thus, either must have been lying or he, out of boredom was simply playing the fool. Anyway applaud......... Clap! Clap!!

Things however, will ultimately change. Let’s hope so, for the better. For now, over to the very much changing Jai Nepal bandwagon.

Once upon a time, Congressi senior citizens used to boast: the leadership will be handed over to the immediately lesser senior citizens. Maybe the second generation also did toast: As we are hip-hop and they, rock n’ roll, the oldies will soon go.

But now by the look of it, the ruling outfit seems keen to further lock horns. And like the evergreen Rod Stewart, Mick Jagger and Tina Turner, looks like the Congressi golden oldies too are here to stay. So it appears youthful Sher will have to further wait for his share.

But anyway, they are growing. Age no bar, sex no bar; all have more-than-adequate stamina for ambition. A reason why Nepal and Nepali Congress together are on a rock n’ roll. Their kith and kin prospering by the day-reminds of the real-life-thriller Hawai chappal to hawai jahaj. Some upbeat, progressive, developmental story, that is. Moral: what goes down, comes up.

In other words, the more underground you go; the more one will soar. NC went underground for thirty years. Now, see what dizzying heights they’ve scaled? Poor people of this poor country, underdeveloped people of this underdeveloped country-which has the best-developed Mt. Everest-might not understand this at all. But believe it or not, that’s Science. Like what goes up, comes down; what goes down too comes up. Opposites attract silly. And also according to Sher the man, NC is good with relative theory.

But somehow they are not sure yet if the Constitution has to go. But some on the left and on the right feel that it should go. For a better Constitution-that’s the catch, like buy one and get one free marketing gimmick. As time is supreme the tick-tock will tell, who will get and who will not. However, one thing is certain, the people will not. Because any which way they off the, fur the, buy the people.

Winter is closing in. It’s getting cold. And they have heaters.

Fiscal responsibility for financial regularity

By Janak Raj Gautam

The assumption of fiscal responsibility accelerates reform process to integrate itself with global economy. One is a slowdown in reform process by high fiscal deficit, the other is a tardy process of disinvestment of public sector enterprises. The government borrows to meet the current account deficit issuing various bills and bonds to the pubic. Public expenditure review committee is expected to be active in preparing control mechanism for public expenditure, propriety and sensible application of the fund. Fiscal responsibility will primarily cover financial chaos, set a time frame for reducing the amount of revenue deficit, arrange prudent accounting policies on accrual basis on some transactions, provide a projection for revenue and expenditure over the years to come, report in a reasonable time
interval to parliament, establish an independent authoritative body for expenditure review.

Budget projections as a revised form of estimates are acceptable but when projections have little connection with actuality, then something needs to be done about the whole process. There are such key elements as reputation for strong business, corporate governance, transparency, value added services and an open organisation culture. All these crucial factors contribute to the accomplishment of predetermined objectives. When the market is opened up to foreign investors who look at alternate choices before making a commitment for long-tern investment, greater transparency is needed. For domestic corporates, information on quantum of debt to be raised by the government would be useful, since they would get an idea in advance about the quantum of resources available to the private sector. The idea of interest rate movements is to achieve business projections in a hassle-free environment.

a) It is a unique legal document outlining a framework for fiscal objectives, prudential norms and procedures, fiscal transparency, a niche way-out for reducing obstacles in implementation, monitoring and government actions, verifying, establishing credibility or government finances, being statutorily accountable for penalty for non compliance should be explicitly identified. b) Priority setting should be a part of the budgetary process to ensure fiscal transparency. The requirement to report to parliament on the responsibilities have already been fixed by government commitments made in the budget. When fiscal responsibility act exists, there will be a mechanism for scrutiny of government accounts. c) The government should be made accountable to answer why predetermined targets have not been achieved through budgeting and accounting process if it is pursuing rigorous reform agenda including key structural changes, fiscal reforms, corporate governance and democratic decentralization. The government is responsive to change in education, health, social service sector, quantitative and qualitative products and services that emphasize regular service and timely delivery with full coverage of laid down systems and procedures. d) Financial statements should be replaced by annual report to indicate the scope of accountability comprising policy, operations and financial resources as a reliable source of information. The annual report should be published in time so that the statutory audit can be timely and qualitative, reflecting a true and fair view with profitability. But in the changing scenario, financial statement in traditional form cannot fulfil today’s requirement of responsibility. e) It should rather create debate in a public forum eliciting public comments to invite concerns on the subject matter to formulate significant workable solution on fiscal responsibility.

The government may soon take up the responsibility of correcting fiscal imbalances and fiscal deficits. The highlights of the system are fixing responsibility on fiscal profligacy and committing to implement a time bound timetable for fiscal correction. The revenue generation exercise is now actively meeting its plan and non-plan expenditure. Therefore, government should have a common sense approach to exercise responsible judgement in the years ahead.

The Auditor General has also called for an Act to ensure fiscal responsibility in matters of domestic and foreign borrowing, wise use of borrowed funds, significantly aberrant budgetary assumptions, excess of actual expenditure over budgeted expenditure and cases of significant deviation from fiscal parameters. In order to allow the borrowed funds absolutely applied for asset creation, some policy measures are needed to strengthen resource application regime in a disciplined way to maintain the sound use of borrowed funds with theoretical and practical simplification in the decision making process. It may to some extent, stop the fiscal administration from heading towards economic profligacy.

Curtailing corruption includes bringing about greater transparency in dealing with various government departments, a simplified pace of procedures and punishing the corrupt whether government servant or any other publicly responsible person. Our system encourages corruption due to red tape, transparency lags, non-compliance with legal basis, elaboration of legal procedures and camaraderie that exists among the corrupt who tend to protect each other. At present in Nepal, a fiscal procedure Act, 2056 has been in practice. Its scope is only limited to the government financial procedure, books of accounts, final auditing, internal audit, follow up auditors report and fines and penalties. A fiscal responsibility act including corporate sector should also be prepared and implemented in a rational manner.

Unless fiscal discipline is maintained certain symptoms would very soon trap the country into a pile of bad debt. The public expenditure review commission must pass through the details of spending, making investment decision, downsizing the government, reducing the number of ministries, changing the accounting system. These are some of the forward steps for fiscal correction arising from by the bygone years. Fiscal responsibility has been a long felt need to support fiscal discipline because of enormous increment in expenditures, increase in shape of budget deficit, a huge amount of government borrowing, mounting public debt, extra-budgetary activities of government, a greater hiatus in budgeting, lack of transparency in accounting procedures. Responsibilities are also verified, compared evaluated, and if there is any deviation it is reported by auditing. But some inherent limitations are post mortem in nature and conclusions of auditing are persuasive rather than conclusive, although they may considerably contribute through accounting standards. The executive must make fiscal policy rules and objectives, projections of income and expenditures, and evolve parameters for fiscal correction. It should call for a high level of commitment, fresh and unbiased approach, open culture and accountability to tackle the fiscal circumstances. There should be a direct reporting system to parliament on any non-compliance with fiscal responsibility and failure to provide reliable information on fiscal matters. Policy documents with supporting data and information must be made available and accounting principles and practical norms must be established, forecasts and predictions must be prepared, and performance report must be published at reasonable class intervals. The report to the parliament is to create public awareness, consisting qualities of sincerity, commitment and integrity.