Democracy achieved by collective efforts: PM

By A Staff Reporter

Kathmandu, July 22 Prime Minister Girija Prasad Koirala said that democracy does not come spontaneously, but it is a process, which can only be achieved by continuous efforts and contributions from everybody, and each step taken is equally important.

"So it will be wrong for anybody to boast that democracy has come through his or her effort only."

He was speaking as the chief guest at a talk programme on Nepal’s Democratic Movement and Pushpalal to commemorate the 22nd memorial function of late Pushpalal Shrestha. The programme was organised by the Central Organising Committee of the CPN-ML at the Royal Nepal Academy Hall today.

Prime Minister Koirala said that Pushpalal was a complete personality and he never compromised his ideology. Talking about his contacts with late Pushpalal while in exile before the democratic movement of 2007 B S, Prime Minister Koirala said although the Nepali Congress and the communist party, led by late Pushpalal, had different views mainly on economic policies they had the same objective of establishing democracy in the country.

From the chair, Sahana Pradhan, President of the CPN-ML, said since the last 22 years, Pushpalal’s death anniversary has been celebrated not only to honour him but also to remember why and for what Pushpalal struggled.

She said although late Pushpalal was much criticised by his fellow communists after he floated the idea of making a joint front with the Nepali Congress to re-establish democracy his prediction came true twenty years later in 2046 BS.

"Throughout his life he struggled for the people, democracy and democratic system," she said. His last words were the political parties and the people must unite if democracy was to be ushered in and be protected. And it holds true even today, she said.

Speaking at the function, Surya Bahadur Thapa, President of Rastriya Prajatantra Party (RPP), said his ideas were free from the dogmatism of the communist ideology.

"His main efforts were to induct democratic tradition in the communist party and by floating the idea of joining hands with the Nepali Congress for the re-establishment of democracy, he had thought ahead of time," Thapa said.

Rajeshwor Devkota of RPP (Chand) said Pushpalal’s contribution towards Nepal’s democratic movement was immense. Pushpalal never compromised in his ideology but, he said, Nepal’s present communist movement is a compromised communism and this diversion in communism is one of the reasons of the rise of the Maoists," he said.

General Secretary of the CPN (ML), Bamdev Gautam said late Pushpalal’s thoughts have always encouraged the communist movement in Nepal. Pushpalal was not only the founder of the communist movement in Nepal, but also the principal ideologist and a guiding force of the Nepalese communist movement, Gautam said.

Others who spoke at the programme were Lok Narayan Subedi, politburo member of the Nepal Communist Party (Marxist), Bhakta Bahadur Shrestha of the National People’s Movement Coordination Committee, Govinda Singh Thapa of the Nepal Communist Party (Masal), Kirtinidhi Bista, Amik Sherchan of the United People’s Front, Bishnu Bahadur Manandhar of CPN (United) and Krishna Das Shrestha of CPN (Marxist-Leninist-Maoist).

Govt mulling to trim bureaucray : official

By K. P. Sharma

Kathmandu, July 22: The government has decided to retire all civil servants who have completed 20 years of service or have reached 50 years of age with a golden handshake in its bid to downsize the existing jumbo-size bureaucracy.

"A notice to this effect will be brought out within this month (Shrawan)," Under Secretary at the Ministry of General Administration Prem Kumar Rai said.

Rai said there are nearly 7,000 civil servants who fall into this category.

The Ministry of General Administration, however, has no record of the actual number of people employed in the administrative sector by the government outside the civil service.

The downsizing is part of a government’s larger programme outlined in the recent budget to boost efficiency and productivity among civil servants. The government has already raised salaries as per the recommendations of the Pay Commission Report to bring them at par to the South Asian region level and is doing away with all temporary staff members.

The decisions are already being implemented despite stiff opposition from the civil servants unions. The number of ministries have been reduced from 26 to 21. Last week, nearly 40 temporary staff members of Radio Service Development Committee who had been working there for years lost their jobs. Similarly, temporary staff members working at Tribhuvan International Airport are on a strike demanding reinstatement. Next to go are members of the Department of Irrigation and Small Industry Development Project and similar other government offices.

With the start of the new fiscal year on Sunday (July 16), temporary workers in various government offices, public enterprises, projects and other institutions are also beginning to count their days.

Word is out that the government is cutting down on the 103,277-strong bureaucracy by 25 per cent to bring it down to a more manageable 77,000.

However, Under Secretary Rai said that there are no such plans as recommended by the Civil Service Reform Commission about eight years ago. Since then, he says, the civil service sector has seen many changes for the better. According to another official at the Ministry, five per cent of the total civil service posts always remain vacant.

Last week, the government announced that 1,045 posts (153 gazetted, 592 non-gazetted and 300 classless) had been slashed after the number of ministries was reduced.

Apart from the bloated bureaucracy, public enterprises, government projects and development committees are also in the process of downsizing their administration. It is estimated that all in all there are nearly 200,000 people involved in administration.

The government will soon form a Public Expenditure Review Commission (PERC). According to Rai, the Commission will outline the actual size of the administrative staff necessary to man the different organizations in the government. The Commission will also study and recommend the size and number of ministries, departments as well as regional, zonal and district level offices the country should have.

"The government is carrying out these exercises to make the civil service sector manageable, responsible, financially viable and effective," says the Ministry.

The government offices for long have been a recruiting ground for the unemployed. With the number of educated unemployed increasing by the years, whether the government can live up to its ideals is a challenge it must take seriously.

Surplus in BoP sends forex reserve up

BY A STAFF REPORTER

Kathmandu, July 22: The foreign exchange (forex) holdings of the banking system as per the monetary records has significantly increased due to a surplus in the balance of payments (BoP) emanating from the growth in net service and transfer income as well as miscellaneous capital inflows.

The resulting foreign exchange reserve was sufficient to cover merchandise imports of ten months and a half. In the share market, the share transaction declined compared to the previous month.

During the first eleven months of the fiscal year 1999-2000, according to Nepal Rastra Bank (NRB), country’s economy experienced a deceleration in both narrow money (M1) and broad money (M2).

In spite of a deceleration in the growth of regular expenditure, total government expenditure accelerated mainly due to rise in the development expenditure, the NRB press communiqué on the recent macro economic situation in Nepal says.

Higher budgetary deficit was recorded as a consequence of sluggishness in resource mobilization in comparison to the government expenditure. The rate of inflation on point to point basis dropped to less than one per cent mainly because of the decline in the price of food and beverages group. In the external sector, although the growth rate of exports outpaced that of imports, trade deficit widened mainly due to relatively larger volume of imports.

During the first eleven months of the fiscal year 1999-2000 broad money (which could be understood as the money in the banking sector) registered a decelerating growth of 16.9 per cent (Rs. 25810.5 million) amounting to Rs. 178,610.7 million compared to the growth of 19.5 per cent (Rs. 24,617.2) in the previous year.

This was mainly because of deceleration in the growth of net domestic assets of the banking system. As a result of downward revision of interest rate on deposit, growth of imports and expansion in resource mobilization activities of non-bank financial institutions, growth of time deposits decelerated from 22.1 per cent (Rs. 17,963.6 million) in the previous year to 18.9 per cent (Rs. 29,237.6 million) during the review period. Likewise narrow money also decelerated from 14.7 per cent (Rs. 6653.6 million) in the previous year to 12.9 per cent (Rs. 6572.9) million during the same period.

As a result of deceleration of credit to government sector and government enterprises, total domestic credit of the banking system decelerated to 15.4 per cent (Rs. 20,778.2 million) during the review period compared to an increase of 15.6 per cent (Rs. 18,063.5 million) in the preceding year. In spite of a slow growth in industrial credit, the flow of bank credit to the private sector increased by 18.1 per cent (Rs. 16,407.1 million) during the review period from 15.6 per cent (Rs. 11,994.9 million) in the preceding year, mainly due to the increase in credit flow to import and service sector.

On the fiscal front, government expenditure increased by 13.1 per cent amounting to Rs. 47,032.0 million during the review period compared to 10.3 per cent in the preceding year. Of the total expenditure, development expenditure increased by 14.9 per cent, regular expenditure by 11.5 per cent, and freeze expenditure by 44.1 per cent. During the review period, regular expenditure decelerated while development expenditure moved up compared to that of the previous year. Resource mobilizations marked a growth of 11.6 per cent during the review period compared to 13.9 per cent in the preceding year. Revenue collection a major source of resource mobilizations, stood at Rs. 35,834.7 million marking a 15.1 per cent growth compared to 10.8 per cent growth in the previous year. However, decline in the receipts from foreign cash grants and non-budgetary income resulted in the sluggish growth in total resources.

As a consequence of lower resources compared to expenditure incurred, budget deficit of Rs. 9030.3 million was recorded and this was 20.2 per cent higher than that of the previous year.

As the deficit financing sources, the government received foreign cash loan amounting Rs. 3129.9 million, issued treasury bills worth Rs. 2510.0 million, national saving bonds worth Rs. 1400.0 million and development bond worth Rs. 790.0 million.

The remaining amount of Rs. 1200.4 million was overdrawn from the Nepal Rastra Bank.

National Urban Consumer Price Index, on point to point basis, recorded a rise of 0.8 per cent during the review period compared to a rise of 9.5 per cent in the previous year. A fall in the prices of food and beverages group helped to lower down the inflation rate to less than one per cent. Of the overall price index, price index of food and beverages group declined by 4.7 per cent compared to 13.3 per cent increase in the preceding year.

Despite an increase in the price index of restaurant meals, meant, fish and eggs, milk and milk product, spices as well as beverages, the declining prices of oil and ghee, vegetables and fruits, cereal products, sugar and sugar products as well as pulses contributed for such a decrease in the price index of food and beverages group.

However, price index of non-food and services group increased from 5.1 per cent in the previous year to 7.9 per cent during the review period mainly due to the rise in prices of transport and communications, housing, education and recreation, medicine and personal care, tobacco, cloth, clothing and sewing services as well as shoes.

Regionwise, prices in Kathmandu recorded a higher growth of 2.1 per cent followed by 0.7 per cent in the Hills and 0.1 per cent in the Terai.

On the external front, export and imports both registered respective growths of 44.1 per cent to Rs. 46,892.3 million and 23.1 per cent to Rs. 97,155.6 million during the first eleven months of the FY 1999/00. In the export side, exports of readymade garments increased significantly whereas that of woolen carpets and jewellaries showed only a marginal increment.

However, export of Pashmina increased significantly and stood at Rs. 5390 million whereas the export of pulses, tanned skin and nigerseed declined during the review period.

The export-import ratio, which was 41.2 per cent in the previous year, improved to 48.3 per cent during the review period.

The surge in imports was attributed to higher imports of food grains, medicine, textile, thread, chemicals, agricultural tools, machineries etc from India and rice, sugar, beetle nuts, crude oil, chemical fertilizer, copper wire and sheet, thread, transportation goods and spare parts, aeroplanes and parts a, gold and other macheniries as well as their spare parts from third countries.

Although exports increased at a higher rate than imports, trade deficit which had declined in the previous year increased by 8.3 per cent amounting to Rs. 50,267.3 million during the review period, due to a relatively larger volume of imports compared to exports.

Based on the available statistics for the first nine months of the fiscal year 1999/00, balance of payment remained favourable by Rs. 10,412.4 million. During the review period, the growth of trade deficit outpacing the increase in net service and transfer income resulted in the current account deficit of Rs. 3865.4 million.

However, a substantial inflow of miscellaneous capital items helped balance of payment to register a sizeable surplus.

Based on the monetary statistics for the first eleven months of the fiscal year 1999/00, the overall balance of payment recorded a surplus of Rs. 12,561.5 million.

As a result, foreign exchange holdings of the banking system increased by 24.3 per cent to Rs. 92,061.8 million as at mid-June 2000. Of the total reserves, 84.8 per cent accounted for convertible currency and 15.2 per cent for non-convertible currency.

‘Inter-party rapport must to strengthen democracy’

BY A STAFF REPORTER

Kathmandu, July 22: Lawmakers and legislature experts today said that the ruling and the Opposition parties should be serious and develop an understanding to consolidate the parliamentary system.

"It's natural that the political parties go to the people with different commitments during the elections but they share a common responsibility to boost the parliamentary system once they are in the Parliament", Speaker Taranath Ranabhat said.

But this is far from being the case, Ranabhat told in his inaugural address of a one-day seminar on ‘Consolidating Parliamentary System’ here this morning. The seminar is third of its kind. Ministry of Law, Justice and Parliamentary Affairs organised regional seminars in Nepalgunj and Biratnagar a few months ago.

"It’s not that we lack knowledge or experience on parliamentary system but there are hitches at the level of practice, ''Ranabhat said. "These problems can be solved if we (political parties) abide by the democratic norms."

"Fair electoral process is a touchstone of the parliamentary system," Ranabhat said. "But money and muscle influence Nepalese elections. Parliamentary system will not be consolidated as long as money and muscle influence elections."

Ranabhat said that the political parties should be honest to improve the electoral process. "We should also make the parliamentary activities more transparent."

Maintaining that the democratic system was facing threats from ultra-left at one end to the fundamentalists at the other, Ranabhat said, "The government should take initiatives to convince both of these elements and bring them to the mainstream."

National Assembly Chairman Dr. Mohmed Mohasin said that Parliament would not function in absence of a faith between the ruling party and the Opposition.

"The Parliament has become a place to discuss trivial issues and not a place to find solutions to the national challenges like development, corruption and violence," Mohsin said.

Mohsin said that parliamentary system was facing problems as the political parties were involved in power politics, adding that the ruling and the Opposition parties should be clear about their roles and cultivate understanding.

"It is essential to strengthen the local authorities as they constitute the backbone of the parliamentary system," Minister for Law, Justice and Parliamentary Affairs Mahantha Thakur said. "It is everybody’s responsibility to consolidate the parliamentary system."

Chairman of Law, Justice and Parliamentary Affairs Committee Mahendra Yadav said that political parties lacked seriousness about strengthening the local authorities. "Each political party’s tendency to establish itself as right and others wrong has been a hitch to consolidating the parliamentary system."

Yadav said that the ruling party and the Opposition should fulfil their responsibility to strengthen the democratic system.

President of the Federation of District Development Committee Krishna Prasad Sapkota stressed on ‘true decentralisation’ for the consolidation of parliamentary system and demanded for a parliamentary committee to oversee decentralisation.

During the working sessions, Nepali Congress central member Narahari Acharya and former Speaker Daman Nath Dhungana presented papers on the roles, relations and the attitudes of the ruling and the Opposition parties and local self-governance respectively.

UML supports ballot, not bullet, clarifies Nepal

BY A STAFF REPORTER

Kathmandu, July 22: Launching of an armed conflict cannot serve as the means to attain the goals envisaged by Nepal’s communist movement, Madhav Kumar Nepal General Secretary and leader of the main opposition Communist Party of Nepal (United Marxist-Leninist) said.

"As history reveals that the peoples’ mandate is the ultimate source for political and social change, participating in the elections to bring about the desired changes cannot be termed as a deviation from the communist ideology," Nepal said.

Nepal made the statement in response to charges coming from other communist parties that the CPN(UML) had in the recent years deviated from communist mainstream.

He said that the CPN(UML) was strictly for the ballot to achieve peoples’ multiparty democracy.

"I would like to call upon all the communist parties to join the CPN(UML) mainstream since the agenda of bringing into fruition the peoples’ multiparty democracy encompasses the issues which all the communist allies have been advocating," Nepal told a seminar on ‘The Fifty Years of Nepal’s Communist Movement’.

Nepal was speaking at the seminar organised by the Democratic National Youth Association in the context of the 22nd memorial day of the late founding General Secretary of the Communist Party Pushpa Lal Shrestha. Nepal said that countries like Afghanistan and Burma, which resorted to bullet for social change had been witnessing a setback.

Nepal felicitated the founding members of the Nepal Communist Party Niranjan Govinda Baidya and Nara Bahadur Karmacharya on behalf of the Democratic National Youth Association.

CPN(UML) lawmaker and Standing Committee member K.P. Oli said that the past five decades of the Communist Movement portrayed a picture of struggle, sacrifice and achievements.

Oli said that the communist movement had made a major contribution to safeguard the country’s nationalism, democracy and livelihood.

"Though the Nepali Congress government announced the end of bonded labour, it is the CPN(UML) which pressurised the government to decide in favour of the Kamaiyas," Oli said.

Oli called for unity among the communist parties and said that attempts were being made to undermine the communist movement as the communists were divided.

Lawmaker and President of the Rastriya Janmorcha Nepal Chitra Bahadur K.C. said that late Puspa Lal made a major contribution to take the communist movement ahead.

Despite the differences among the communist parties they need to forge working unity on common issues related with the rights and privileges of the people, K.C. said.

President of the United Peoples’ Front Nepal Amik Sherchan said that the the communist movement had witnessed a setback as the revolutionary approach was compromised by some of the communist party leaders.

He said had his party received the widespread support like the CPN(UML) then he would have resorted to a more radical approach to achieve the goals of social transformation envisaged by the communist movement.

President of the United National Peoples’ Movement Co-ordination Committee Bhakta Bahadur Shrestha said that the goals of the communist movement had received a severe blow from the individualistic politics plaguing the communist parties.

It is high time the CPN (UML) gave serious thought to the perversion looming large in the communist movement, he said.

The co-ordinator of the fourth National Convention of the National Democratic Youth Association, Pashupati Chaulagai said that though the communist movement had to bear the pangs of disintegration in the past decades, it had stood out as the centre of faith and hope of the entire Nepalese people.

British appreciate Gurkhas' contribution

Kathmandu, July 22 (RSS): The British Gurkhas are held in the highest esteem for their remarkable contributions made in various parts of the world.

British Prime Minister Tony Blair has said the Gurkhas made an enormous contribution in Bosnia, Kosovo and East Timor, says commander of the British Gurkhas, Nepal and director of the Gurkha welfare scheme colonel Mark Dowdle.

The British foreign secretary, during his visit to Nepal, also commented on how much the United Kingdom appreciated the Gurkhas’ commitment to the British army.

An important point which is often overlooked is the revenue generated for Nepal by this unique and strong relationship, some £60m over the next financial year, says Col. Dowdle, adding "I am quite clear that there is a deep respect and friendship between our two countries and our bilateral relations are excellent."

Talking to RSS, Col. Dowdle, who is also defence attache at the British Embassy, described the Gurkha welfare scheme as ‘The jewel in our crown’.

With a budget of over £5.5m this year, the aim "is to alleviate hardship and distress amongst Gurkha ex-servicemen and their dependents by rendering aid to individuals and their communities".

Giving a flavour of the work of the Gurkha welfare scheme where the aim is to make life better for pensioners and their families, he said between 1987 and this year they have spent Rs 43,773,009 on bursaries, secondary and tertiary education and employment training, benefitting 7,975 individuals. As an example, the 722 who benefitted from tertiary education have gone on to further employment in Nepal.

Between 1979 and this year they have expended Rs 94,849,350 on 1,166 minor school projects and have built 59 schools.

According to him, there are 11,550 welfare pensioners (those without a service pension) who are suffering hardship.

The British continue to provide hardship grants (in the event of landslides, fires or other problems) to individuals, build bridges, provide water taps to villages and hydro projects, he added.

There are free doctors clinics for pensioners and they have introduced eye clinics in the more remote areas benefitting literally thousands of people. Earlier this year at the Libang eye clinic 922 patients alone were examined.

A new initiative is the Gurkha welfare scheme’s medical scheme. Service pensioners receive a 75 percent refund of all costs incurred for medical treatment, whilst welfare pensioners receive 100 percent. This has been most warmly welcomed by service and welfare pensioners.

The defence attache spoke of a significant commitment to all pensioners. This is best exemplified by both the new pension rates and the excellent support provided by the Gurkha welfare scheme, he said adding that since 1978, the community aid given by the Gurkha welfare scheme has been closely co-ordinated with His Majesty’s Government.

Replying to a question about the pensions and other benefits for the Gurkhas, he said retiring Gurkha soldiers attend resettlement courses exactly the same as their British counterparts. In Nepal, they attend a comprehensive re-orientation package. British Gurkhas Nepal has recruited a Gurkha re-employment officer, whose sole responsibility is to find jobs for retired soldiers, and he has achieved some success already.

An examination of British Gurkha death in service gratuities and pensions was concluded last year, by John Spellar, the minister for armed forces, he said adding, it was extremely detailed and endorsed by His Majesty’s Government.

Many ex-servicemen’s organisations contributed to this valuable work. The examination resulted in equal death in service payments for British and Gurkha soldiers. Pension increases were between 107 and 185 per cent, with older pensioners and widows particularly benefitting.

The minister for armed forces, in the light of these awards, made it perfectly clear that it would not be subject to further negotiation, but the pensions would be reviewed each year to compensate for inflation. Accordingly, a team from the United Kingdom visited Nepal earlier this year to carry out the review. The recommended increase of 11.9 percent was met in full and backdated to April l, 2000. All this has meant big raises for British Gurkha pensioners.

For examples, a lance corporal with 15 years service has received a 230 percent increase in pension (as at jan. 30, 2000 Rs 2,995.20 per month rising to Rs 7881.82 as at Aug 3l, 2000), and a warrant officer with 20 years service some 302 percent increase (as at Jan 30, Rs 4,065.60 to Rs 12,301.08 per month as at 31 August this year), a great deal for the 26,000 pensioners. The ex-servicemen receive an excellent overall package.

The director of the Gurkha welfare scheme said the doors are always open to all ex British Gurkhas I think we pay 26,000 service pension accounts each year and, on top of that, some 11,550 welfare pensioners. A system exists by which ex-servicemen or their families can obtain either service pensions or welfare assistance and pensions subject to verification. For the former, there are 3 pension paying offices in Pokhara, Kathmandu and in Itahari (the latter only opened last year).

The staff have a new pay computer system with direct links to the United Kingdom, so they are in an excellent position to answer all service pension queries. Some 24 area welfare centres across Nepal are staffed by retired Gurkha officers, whose sole role is to look after the needs of pensioners. So an impressive infrastructure, which has benefitted from significant financial investment, exists to help those who are entitled to either a pension or who merit assistance, he said.

About the welfare scheme for the Gurkhas, he said 62 domestic water projects are to be constructed at an estimated cost of Rs 42,432,298, 23 bridge projects at a cost of Rs 46,088,137, nine major schools at a cost of Rs 16,313,927 and 100 minor school projects at a cost of Rs 4,000,000, six electrification projects at a cost of Rs 16,437,500, two cliff tracks and one tar pul river crossing project at a cost of Rs 240,000.

In reply to a question about the issue raised by some ex-Gurkhas, colonel Dowdle said, "serving British and Gurkha soldiers enjoy the same financial awards for their service. Rank for rank, both receive the same money in their hands each month. There is a widespread perception that serving British and Gurkha soldiers earn different salaries. This is not true. Their take home pay is identical.

Turning to pensions, he said he did not think that most of the pensioners, who are now benefitting from the new pension rates, oppose them, adding that British army pensions are complicated and reflect different systems. The majority of Gurkhas serve for roughly 15 years and receive an immediate pension, and British soldiers for 22 years to earn a pension. On average, a Gurkha pension is paid seven years earlier than a British serviceman’s.

If British pension rules were applied to the Gurkhas, about 90 per cent of Gurkhas who go on pension would not receive a pension until the age of 60, he said pointing out that for most, the need is more immediate. This has been recognised in the arrangements for British Gurkha pensions, which are paid immediately upon retirement and these are adjusted annually to keep pace with inflation.