Milosevic should be held responsible for all his follies and crimes committed during his rule, especially for the excesses of his army in Kosovo. But the authority to deal with him lies in the hands of the Serbian people and the Government chosen by them. He should be tried in his own country without any outside pressure to change the course of the law. An equally important fact not to be ignored and dismissed is the complicity of the US led Western Powers which precipitated the disintegration of former Yugoslavia. Similarly, if Milosevic should be extradited to The Hague tribunal, NATO country leaders, especially former US President Bill Clinton and British Premier Tony Blair, must also be tried at The Hague Court for their war crime against humanity in bombarding Yugoslav cities and killing thousands of innocent people. The Kosovo problem could have been solved without the use of force by NATO, but they resorted to bombardment not out of any sympathy for the ethnic Albanian people, but to fulfil the long term American goal in Europe by further fragmenting Yugoslavia and also by suppressing the nationalistic feelings of the Serbian people. By punishing Yugoslavia in an unprecedented way, America wanted not only to cut Milosevic down to size, but also to show other European leaders that the real power of NATO lies in the USA., not in other countries.

If fair judgment is to be pronounced, American and NATO leaders are the greatest violators of international law and norms. Milosevic is a petty war criminal in comparison to Bill Clinton and Tony Blair. If Milosevic should be held to account for his actions, Bill Clinton and Tony Blair should be held directly responsible for the destruction of Yugoslavia and the damage done to the pride of the Serbian people. But the likes of Bill Clinton and Tony Blair will neither be punished nor is there any court in the world to try them as we are living in a world where ‘Might is Right’.

All ruthless dictators should be brought to justice, but there should be an appropriate authority for this purpose. If the Republican Administration in Washington and the Labour Government in London are given this responsibility, they will eliminate only those leaders who are a potential danger to their imperialistic hegemony. Now George W Bush is bent upon going ahead with his National Missile Defence system because America is in danger from ‘rogue’ states like North Korea and Iraq. America is scared of Saddam Hussein and Kim Jong-Il because they do not toe the American line. Britain and America have exercised for a long time over Saddam Hussein’s war crimes. But they are not ashamed of their own war crimes committed during the Gulf war.

American and British leaders are making a mockery of justice and human civilization. Can those accused of violating international law during the Gulf war and the Yugoslavia war ask for the extradition of Milosevic and Saddam Hussein? Do they have any moral right to pressurize the Yugoslav government to send Milosevic to The Hague Court for a war crimes trial? Any Western pressure in this regard will not only provoke a nationalistic backlash in Serbia, but also subvert the concept of sovereignty of an independent country. Moreover, these western leaders who are so enthusiastic in awarding severe punishment to Milosevic, have ignored the cases of dictators like the former Military ruler of Chile, Augusto Pinochet, who has used health as an excuse to escape justice. It was the same General who had overthrown a democratically elected government with the active support of Washington in the seventies.

In Indonesia, General Suharto sought refuge behind a medical certificate that declared him brain damaged. Like these Generals, who had survived for many years under American auspices, there are other despots around the world who have not been called to account, including the hated Idi Amin who is living a life of leisure in Saudi Arabia, and Colonel Mengistu of Ethiopia who has found a haven in Zimbabwe. These tyrants and other lesser known ones are enjoying their loot, without any dread of the international criminal court, because they know that the Western Powers want only those leaders handed over to The Hague Court who are threat to their global hegemony.

Another incident with wide implications is the entry of the American Spy Plane into Chinese Air Space. The incident has aroused many pertinent questions about American intentions. Despite China’s persistent demands, the Bush administration has failed to tender a categorical apology. Instead it has claimed that the America plane was within international air space. The incident comes close on the heels of another in which an American submarine sank a Japanese boat, killing many Japanese students and teachers on board. Meanwhile the US Government remains reluctant to call off its spy plane flights off China’s coast.

The third major issue of vital concern is the statement by US and European leaders regarding the Government’s right to use the military for the sake of people’s security in the Maoist affected areas in Nepal. With their statement given last month in the context of growing dissent from the Government, the Western Powers have clearly undermined the principle of sovereignty. There is no doubt that every Government has the right to use its armed force for the sake of its people’s safety. But it is not the Western Powers' business to decide about the timing and the nature of the armed forces to be activated. Moreover, by voicing their opposition to any action that could precipitate the fall of present Government, they have openly shown their partisan approach to Nepalese politics. It is for the Nepalese people to support or oppose any government depending upon the situation and circumstances. The Western Powers have no right to interfere in Nepalese politics.

Bringing the difference between the average borrowing and lending rates within the 5 percent range has been one important priority in reform. Such a spread being an indicator of financial intermediation efficiency and also of the competitiveness of the financial system, it is encouraging to observe that most of the banking institutions have adhered to this requirement. This shows that efficiency in financial intermediation has been growing and the emerging competitive environment in the financial market especially with respect to the pricing of financial resources has become more competitive. As a result, both the borrowers and the depositors have benefited, as should have also the overall financial and economic system of the country.

The NPA level, mainly that of the two largest commercial banks (Rastriya Banijya Bank and Nepal Bank Limited), is distressingly high. The basic reason for such large NPA is an unprofessional decision-making culture and practices which are also the product of non-business considerations and influences. Financial kickbacks provided to the decision-makers and implementors are also causes of the surge in NPA. The reform measures contemplated to reduce NPA are prefessionalizing the decision-making systems/organizational and managerial structures by placing renowned management teams in the two commercial banks. The overall institutional and managerial improvements that are expected from the implementation of various components of reform would also contribute towards bringing the NPA level down to a generally acceptable level. Mention here may also be made of the program to establish an Assets Reconstruction Company to take hold of assets put up as collateral in the case of loans that have turned into NPA, and reconstruct these assets. Similarly, the establishment of a Credit Information and Rating Institution would assist in decision-making for forwarding loans within professional and sound business parameters. The enactment of the Debt Recovery Draft into law the forthcoming session of parliament would also contribute to the recovery of NPA to the full extent possible. All these should improve the profitability position and help improve the overall financial structure and long-term economic health of institutions, ultimately making the financial system sound and sustainable.

The draft legislation on the central bank once enacted would provide operational flexibility and managerial autonomy to the central bank in the true sense of the term.

Accordingly, the functions of regulation, supervision, monitoring and inspection that the central bank would be required to discharge would be carried out in an improved and independent framework, especially in the case of government-owned financial institutions. The focus on human resource development and technological improvement in central banking functions would be of utmost importance in enabling the central bank to carry out its activities in a more efficient and useful fashion.

This being one of the important focal point in the reform strategy, it is expected that the financial statements and financial transactions themselves would not only reflect and represent the true and realistic position and processes at the concerned institutions but these statements would also come out in time. The confidence thus reposed in the financial transactions of institutions on account of the implementation of best international practices and guidelines should attract more genuine investors and fine borrowers to the institutions. The best interest of the depositors along with that of the owners, regulators, employees and other stakeholders would accordingly be maximized, for the ultimate benefit of the financial system and the economic health of the country. The increased competence and competitiveness of the financial system would be correspondingly associated with improvements in financial products and their delivery processes in the unfolding liberalization that is gaining momentum in the financial environment of Nepal.

Long-term investments, both domestic and foreign, in the equity and debt markets would provide an environment for increased production and productivity particularly in the non-agricultural sector of Nepal. The Securities Exchange Draft that should be enacted into law the coming session of parliament would enhance transparency, regularization, certainty, confidence and stability in the securities market. Accordingly, more investments would be attracted for deployment in the various productive sectors of the economy through the greater role for the securities market that would materialize on account of the capital market reforms.

The reform measures being implemented should thus ensure quantitative growth while promoting the qualitative dimensions of the financial products and their delivery systems. The growth in investment in the financial sector of the economy coupled with the greater resources flowing toward the securities market would result in better use of scarce financial resources and optimal efficiency in allocating of the productive resources in the economy.