Koirala’s India Visit Focus On Friendship

By Gandhi Raj Kafle

IN modern diplomacy, leaders of nations unsually make frequent contacts by exchanging visits for strengthening bilateral or multilateral relations. In this vein, Prime Minister Girija Prasad Koirala’s forthecoming visit to India has its diplomatic significance.

Continuity

In fact, frequent contacts between leaders of Nepal and India are always felt necessary for both the countries because they provide the opportunity to discuss outstanding bilateral, which ultimately helps enrich the spirit of neighbourly friendship in the long run. Perhaps, to give continuity to this tradition in Nepal-India ties, the two Prime Ministers G.P. Koirala and A.B. Vajpayee are expected to leave no stone unturned for making the visit successful.

Nevertheless, the delicate aspect for Premier Koirala to deal is the sensitivity connected to his coming India visit. That’s why there have been so many discussions on Nepal and India relations today. But do all diplomatic visits generate similar awareness? If not, then why so much discussions on India only? One of the reasons may be that, in fact, India being a country of more than one billion population with emerging economy, holds a key position for the peace and prosperity in the whole region. In this situation, Prime Minister Girija Prasad Koirala’s forthcoming India visit automatically becomes a subject of widespread discussions in the country.

India is a big country, there is no doubt about it. But, the difficulty is that there is no small country in the diplomatic parlance. Truly speaking, all big nations of the world are aware of it. At world summits and conventions of the United Nations and others, all countries no matter how big or small are they—can put their opinion across freely. Nations’ sovereignty and territorial integrity are commonly accepted facts of honour in diplomacy. This, is, in fact, one of the most innovative ideas of the modern day politics.

Nepal and India, like all nations in the world, also honour it. And, to note, there has been good relations between these two countries. Leaders of both the countries exchange visits from time to time to boost ties. They also share opinion, convey each other’s goodwill and pledge to work for common benefit. These practices of diplomacy between Nepal and India will continue during the visit of Prime Minister Girija Prasad Koirala to India this time also.

More importantly, the fabric of religion, culture and tradition has brought the people of both the countries closer. In fact, there is people-to-people contact between us. These are some of the commonalities, which can not be ignored while preparing foreign policy of a country. Premier Koirala’s coming visit to India too has to be explained and discussed in this background.

But, do all rosy historical anecdotes between Nepal and India provide a realistic background to strengthen relations for common benefit today? Certainly, people-to-people contact and historical fact of good relations are plus points. But, the relation cannot move upward beyond tradition if efforts are not made realistically to expand this ties for comprehensive benefit.

When we talk of comprehensive benefit, slow progress made so far till now overshadows our euphoria to top unlimited potential available in both of the countries. India is fast emerging as a market centre, even industrialised nations of the west are increasingly inclined to benefit from it. India is also an unlimited reservoir of skilled labour manpower and also known for competitive costs. Many joint venture industrial houses are taking advantage of it. But, why there is so much difficulty for small economy of Nepal to benefit from India’s abundant market?

Certainly, the economy of 21st century cannot achieve its desired level of output and growth if we continue to move ahead in traditional fashion. Nepal has tremendous hydropower potential, which will be a huge surplus if tapped to produce energy in future. India, which is said to be an emerging economy, needs power in massive scale to meet its industrial and consumer demand. In recent times, talks and discussions indicate that both Nepal and India are eager to find some mutually beneficial ways for investing in the water resources of Nepal.

The agreement signed for Mahakali Integrated Project few years ago at least shows the inclination of both the countries to proceed for some bigger projects. But, as time passed on there is nothing concrete to tell about the implementation of this mega-project. In fact, if hurdles of implementation level are not cleared amicably in time, the agreed project becomes the direct victims. Furthermore, its repercussion on many other pipeline projects too cannot be denied.

However, despite some delays for implementation of few eagerly indentified projects like the mega-Mahakali project itself, India in the past has helped Nepal’s endeavour for socio-economic development. The Indian cooperation for Nepal covers areas of development like transport, communications, industry, trade, health and education. These areas supported by India have greatly helped to correct Nepal’s economy infrastructurally.

In this backdrop, the need of hour today is to make joint efforts more enthusiastically for common benefit of the peoples of Nepal and India. For it, Prime Minister Girija Prasad Koirala’s India visit, it is hoped, would prove to be instrumental for coming up with enhanced economic cooperation in the years to come. In
fact, this is not an one-sided need. If cooperative economies of the two countries begin to accelerate, not only Nepal, but a larger country like India too can benefit greatly.

Friendship

Basically, for economic development, the existing relations between Nepal and India should be analysed is broader perspective. Herein, it may be noted that our Prime Minister Koirala has often said that the true spirit of friendship cannot be expressed in terms of money. The Prime Minister’s saying is very relevant in context of Nepal-India relations because there is a wide range of issues that money alone cannot tackle. Therefore, for the whole gamut of issues what is required to deal with effectively is the true spirit of friendship for which the leaders must be prepared. Koirala’s forthcoming visit to India, it is hoped, will add a new optimism to lead Nepal-India relations of 21st century towards mutually benefitted cooperation and relationship.

Power Supply Scenario

By Mohan K.C.

AMONG the far in between news that comes the way of the Nepalese consumers the removal of the load shedding schedule is definitely a welcome move. The ending of the load shedding came in almost a surprising fashion with the announcement to this effect from the Nepal Electricity Authority on July 10.

Relief

The load shedding had to be resorted to as the supply and demand equation was not in balance for the last couple of years. This is understandable because no hydro projects of a significant scale had come into operation but the power demand had gone on increasing with the twin drives of urbanisation and industrialisation in the country. Though the potentials for the production of hydroelectricity is immense, various constraints mainly the financial one has hindered with the required degree of progress.

This is not the first time that the once initiated load shedding has come to an end. Two decades back also the country had faced a similar power crunch but which was resolved. The recently ended load shedding has now spared the consumers from the inconvenience of living in the dark during evenings after a hard day’s work.

There are people who still believe that this is a move only to appease the customers before the much-expected tariff hike comes into effect. This apprehension of the price hike rises from the deal signed with ADB recently. To allay such fears the government has already categorically stated that the electricity prices will not be raised immediately. This must be consolation for the already burdened consumers. A 30 per cent hike will be too much to bear after a similar one came into effect some months back.

At present the rainy season is in full swing and this has led to the filling up of reservoirs to the level that power generation to meet the demands is possible. As the Nepal Electricity Authority has stated, while ending the load-shedding, the completion of the Puwa Khola and Khimti power projects has been enough to offset the deficit. Yet, there is a word of caution that despite the attempts the generation of power in the dry season is bound to go down leading to difference between supply and demand.

With the completion of Puwa Khola and Khimti power projects an additional 66.2 MW has been made available to the central power grid which will, for the time being, meet the demands. This is to say that the supply and demand situation will see barely any change as long as the monsoon lasts. After that, unless the other power projects come to fruition load shedding may have to be enforced again. But again there is a ray of hope in the Modi Khola project that is nearing completion.

The power demands are bound to increase with the passage of time. This is all the more so because the need for rapid industrialisation is the order of the day. And electricity offers the fastest way towards development.

It is estimated that the total demand for electricity in Nepal stands at 380 MW, at present, but on the supply side only 340 MW is available for distribution. This shows the actual situation where there is a total deficit of 40 MW. And even if the hydel projects under construction are completed on schedule, there will be relief only for a short period of time before the demand outstrips the supply.

Such a situation has arisen because most of the power projects in recent times, completed or under construction, are not big ones except the Kaligandaki A. The small ones have a shorter gestation period, lower investment and are easier to manage. Hence, the smaller projects too should be given preference. But considering the long term demands of country it would not be a too far fetched idea to go for some big power projects as well.

It is agreed that big hydro-electricity projects require massive inputs in the form of investment and skilled manpower. The government by itself cannot mobilise the huge amount on its own. This made the government provide conducive arrange-ments for the private sector to come into the scene. But so far few big projects have come about with private sector partici-pation, this is but an indicator to turn to foreign donors.

Bringing in donors for anything is not the right approach but in the power sector where huge investments matter there can be no denying the need for foreign donors. Once the power projects materialise the country could well be off on its way to prosperity then the loans could be repaid in a convenient manner. To be scared right at the start is not the right approach. Donors must be approached when it is our need but at the same time the steps have to be taken cautiously lest we fall into a debt trap.

Ability

The ability to repay debts depends on the efficiency with which the projects are handled in the long run. Any shortcoming will reflect on the balance of payments scenario. On the other hand, being complacent with what is available can prove fatalistic. The foreign aid policy draft recently made public for debate is a timely move to regulate and monitor the foreign that comes in. If the power sector can also benefit from this, it would be in the interest of the nation.

Commerce, Not Politics, Unites Arabs & Israelis

By Houssam Ezzedine

Indifferent to the negotiations underway at Camp David and the prospects of further violence in the West Bank, Israelis hurry in their hundreds to Palestinian merchant stands here in search of one thing: a good deal.

On Saturdays, Mas’hah, near Salfit in the northern West Bank, offers a near-perfect image of Israeli-Palestinian coexistence.

Thousands of Israelis come here each week to peruse the stands of some 600 vendors, where they find hard-to-beat prices on everything from furniture and carpets to domestic appli-ances.

"Here relations are purely commercial," said Anwar Amer, head of the Rural Palestinian Council. "Palestinians take advantage of the situation, which reduces unemploy-ment in and near the village."

Mas’hah is in Zone B, where security is in the hands of the Israelis and civil affairs are controlled by the Palestinian authority. But the street where the bargains can be found is in Zone C, which is under complete Israeli control.

Miriam Shiri came here with her husband from Tel Aviv to hunt for furniture. Her reticence to talk politics changed at the mention of Jerusalem.

"Jerusalem is in the heart of all Jews around the world. It shouldn’t be divided nor even less given up," she argued.

Her husband took a more accommodating line.

"The Palestinians can have rights on the eastern part of the the city that holds their sacred sites," he said, before the couple continued with their shopping.

The prices here are unbeatable, owing both to the low cost of Palestinian products and to the large number of items smuggled in from Israel.

Security in this Palestinian town does not seem to be a concern for Israeli shoppers, who are reassured by the Israeli army presence here, although Palestinian shop-keepers say the pace slows down whenever the political situation grows tense.

Mas’hah is close to the green line that separates the West Bank from Israel and, along with Salfit, is encircled by 18 Jewish settlements, which have changed the demo-graphic composition of the area. The 19 Palestinian villages in the area have 50,000 residents, while the Jewish settle-ments are home to 45,000.

Ryd Amer, a Pales-tinian, compares the situation to Jerusalem: "No agreement will be able to separate Israelis and Palesti-nians completely."

Yitzhak Ezer, an Israeli merchant who sells construction supplies to Palestinians, agrees. He notes that he has more friends and acquaintances among Palestinians than among residents of his settlement.

"Putting up a border between the Palestinians and Israelis will not result in a complete separation between the two," Ezer said.

"Borders are in the heads of those who want to put them up," he said with conviction. "Econo-mics will tear them down."