‘Asia needs equitable development’
His Majesty addresses inaugural ceremony of Boao Forum

From Lok Deep Thapa

Boao, Hainan, February 27: His Majesty King Birendra Bir Bikram Shah Dev has said that it has now become incumbent on Asia to chart a definite course to reduce the disparity in the level and pace of development and achieve equitable and sustainable development so that "our future generations can live with dignity and honour". His Majesty made this remark while addressing the inaugural ceremony of the Forum for Asia at Boao, in the Hainan Province of China Tuesday morning.

Earlier, Chinese President Jiang Zemin had formally announced the opening of the Forum, which he described as an organisation of Asians to see the problems of the region on an "Asian perspective".

His Majesty was the Guest of Honour at the inaugural ceremony of the Boao Forum for Asia. In his address His Majesty expressed happiness that a coordinated effort was being initiated towards forging greater regional cooperation among nations in the fields of human resource development, trade and investment, as well as in the areas of science and technology. His Majesty remarked, "My own country, Nepal, has also opened her economy with the view to developing and sharing resources like the waters from the snow-capped Himalayas for the collective benefit of all the peoples of our region".

About the newly established Forum His Majesty said, "A common forum, founded for and by the peoples of Asia, articulating different issues from the Asian perspective is essential in helping us to utilise and maximise the positive aspects of the prevailing world order in the collective interest of our nations and region".

Stating that in the past few decades there has been remarkable economic and social transformation the world over, His Majesty observed that the process of globalisation has gained ground and it has provided countries with opportunities for economic and social growth. However, His Majesty warned that globalisation is "not without difficulties". "For many countries they are daunting and challenging," the Nepalese Monarch cautioned and added, "Protecting their interests as they move ahead should be given due consideration".

In the end, while thanking the organisers for the warm welcome and hospitality, His Majesty wished success to the Forum and expressed the hope that it would develop into a "centre of excellence" for voicing the concerns and aspirations of the Asian countries.

Earlier, His Majesty had driven in a motorcade to Boao, where the inaugural function was organised. Hundreds of people had lined the streets at different places to greet His Majesty. Boao is in the Hainan province of the People’s Republic of China. Hainan, the second largest island of China has a total land area of 3.39 million hectares of which 1.214 million hectares are covered by forests. The island has 1528 kilometres of coastline, 68 natural bays and 25.7 thousand hectares of shallow sea.

The Province is the largest special economic zone in China with a population of 7.52 million.

Full text of His Majesty’s address:

Mr. Chairman
His Excellency President
Jiang Zemin
Excellencies
Distinguished delegates
Ladies and Gentlemen:

1. It is indeed a pleasure for me to address this august gathering in the serene environment of this beautiful city of Boao. I would also like to take this occasion to thank the government of the People’s Republic of China for inviting us to this opening ceremony marking the establishment of the Forum for Asia - an organisation, which, I believe, has immense potentials in reflecting the aspiration of the peoples of Asia.

2. Mr. Chairman, the countries of Asia, we know are diverse in their cultures and traditions and are proud inheritors of some of the world’s ancient and enduring civilisations. It is also true our continent has vast human and natural resources. Yet, there still exists disparity in the level and pace of development between the regions. As we enter this millennium, mindful of the rapidly changing world in the context of the IT revolution, globalisation and privatisation, it has now become incumbent upon us to chart a definite course to reduce this disparity and achieve equitable and sustainable development so that the future generations can live with dignity and honour.

3. We are indeed happy to note that co-ordinated efforts have been initiated towards forging greater regional co-operation amongst nations in the fields of human resource development, trade and investment, as well as, in the areas of science and technology. In my own region, South Asia, it has been our endeavour, since 1985, to enhance economic co-operation, social progress and cultural development through the South Asian Association for Regional Co-operation (SAARC). My own country, Nepal, has also opened her economy with a view to developing and sharing resources- like the waters from the snow-capped Himalayas- for the collective benefit of all the peoples of our region.

4. In the past few decades, we have seen remarkable economic and social tranformation the world over. The process of globalisation has gained momentum crossing all geographical barriers and opening new avenues for trade and market economy. This phenomenon has provided countries with opportunities for economic and social growth, yet it is not without difficulties. For many countries, they are daunting and challenging. Such countries, wish to develop the capacity to integrate themselves within the global mainstream. Protecting their interests as they move ahead should be given due consideration.

5. A common forum, founded for and by the peoples of Asia, articulating different issues from the Asian perspective is essential in helping us to utilise and maximise the positive aspects of the prevailing world order in the collective interest of our nations and region. We are happy to note that such an organisation is finally being set up here in Boao. We would like to congratulate all those who had the vision and took the initiative to establish this forum. We wish to see it develop into a centre of excellence and succeed in realising its mission by developing itself as a platform for voicing the concerns and aspirations of the Asian countries and in enhancing co-operation among ourselves, both regionally and globally, in a true spirit of mutual understanding.

6. We take the opportunity to thank the organisers for both the warm welcome and the hospitality extended to us, as well as for the impressive arrangements made to conduct this ceremony. We wish this forum every success in its endeavours.

Thank you.

Boao Forum will promote dialogue in  Asia, says Jiang

From Our Correspondent

Boao, Hainan Feb. 27: President of the Republic of China Jiang Zemin formally inaugurated the Boao Forum for Asia amidst a special ceremony at Boao, in the Hainan province of China this morning.

Addressing the function, the Chinese President declared the formal opening of the Forum by saying, "The Boao Forum for Asia is officially established today".

Calling the Forum a "non-official international conference body", President Jiang expressed the view that the Forum will provide people from all quarters in Asia a place for high level dialogue on such issues as economic development, population and environment in the region.

"This reflects the aspirations of the Asian countries for common development through enhanced dialogue and cooperation against the backdrop of economic globalisation," he further added.

Stating that the Chinese government has all along attached importance to and supported multi-level and multi-channel dialogue and cooperation in various fields, President Jiang informed that China has been chosen to be the "permanent venue for the Forum".

The newly established Boao Forum aims to review the economic and social challenges facing Asia and recognise the importance of developing Asian perspectives on emerging issues and challenges facing Asia.

The Forum envisages to become the premier Forum with strong Asian perspectives, promoting the development goals of Asian countries through greater regional economic integration.

The Forum will provide a platform for high level inter-actions between representatives of Asian governments, business leaders and academic scholars to further and deepen trade and investment ties, promote partnership and evolve an Asian perspective on emerging global economic challenges.

The Forum will pursue its objectives with the implementation of strategies which will include holding of conferences, seminars and workshops on a regular basis, to discuss important issues relating to Asian development, trade, investment and environmental protection. It will also complement other regional initiatives to strengthen partnership, monitor global and regional economic trends and facilitate contacts between enterprises in the region among others.

Meanwhile, delivering the keynote address during the inaugural function, Prime Minister of Malaysia, Mahathir Bin Mohamad strongly criticised the role of certain international media and NGOs and said that they "often undermine national governments to the point where they would find themselves unable to govern". He further cautioned that overthrowing governments would not result in a better government but probably in a series of ineffective governments or even anarchy.

Warning that many of the Asian countries were defenceless and exposed to the negative aspects of globalisation, the Malaysian Prime Minister said that when the weak countries are forced to open their borders to globalisation, giant banks and corporations would come in and destroy the "puny local counterparts".

Earlier, secretary general of the Boao Forum for Asia, Tan Sri Ajit Singh announced the agenda of the Forum and also welcomed the various dignitaries and other participants.

House deadlock continues

Kathmandu, Feb. 27 (RSS): CPN-UML MP Prem Bahadur Singh, taking time from Speaker Taranath Ranabhat at the meeting of the House of Representatives today, referred to the grave situation of the country and said that regular proceedings of the House should not be moved ahead until the Prime Minister submits his resignation as demanded by the opposition members.

Narayan Prakash Saud of the Nepali Congress said that a crisis has been created in democracy as a result of the very complex law and order situation in the country and the obstacles created in the works of the parliament for a long period.

Stating that the Maoists had decamped with a gun and Rs 25,000 from the residence of his brother recently, Mr Saud said that efforts should be made by all the MPs to end the present stalemate in the parliament at a time when the Maoists were demanding an interim government.

Buddhiman Tamang of RPP said that all the opposition MPs had been demanding the resignation of the Prime Minister since the beginning of the winter session of parliament but the Prime Minister had not submitted his resignation yet.

Dilaram Acharya of Rastriya Janamorcha said that the council of ministers cannot remain clean by making others scapegoat in the Lauda Aircraft deal. If the Prime Minister does not submit his resignation, the opposition members would go to the street to make the people alert, he added.

Rajendra Kharel of NC said that the burning problems of the country could not be discussed as a result of the long stalemate in the parliament. It is not necessary for the Prime Minister to resign on the basis of the demand being made by the opposition, he added.

Narayan Man Bijukchhe of the Nepal Workers and Peasants Party said that the demand being made for the resignation of he Prime Minister was relevant as the government had carried out many works in the fields of forest, education, nationalism, agriculture and industry which were contrary to the welfare of the people.

Lilamani Pokherel of the Samyukta Janamorcha accused the government of leasing the Lauda Aircraft by overruling the directives of the Public Accounts Committee and violating the financial regulations. RNAC has been suffering a huge loss as a result of the leasing of the Lauda Aircraft, he added.

Referring to the critical law and order situation in the country and non-implementation of the agreement reached with the nine leftist parties, Mr Pokherel there was no justifiable reason for moving ahead the regular proceedings of the House until the Prime Minister who has been involved in the Lauda Aircraft deal submits his resignation.

Pradip Gyawali of the CPN-UML said that the parliament and the government should inform the people as to why the regular proceedings of the parliament have not been moved ahead even after 20 days of the beginning of the session.

Accusing the ruling party of making intellectuals speaking in favour themselves in connection with the obstacles created in the parliament, Urmila Aryal of the CPN-UML said that the then Minister for Tourism and Civil Aviation Tarinidatta Chataut had already submitted his resignation on moral grounds inconnection with the Lauda Aircraft deal, the Prime Minister should also resign on moral grounds to enhance the dignity of the House.

Stating that the regular proceedings of the House should be moved ahead in accordance with the concepts of rule of law and constitutional and democratic norms and values, Shanker Prasad Pandey of NC said that the MPs should be serious about ending the present stalemate and passing the bills under consideration of the parliament for the welfare of the nation and the people.

Mr Pandey said that a motion should be passed restricting the MPs from taking meeting allowance when the proceedings of the house are obstructed forcibly.

Stating that the problem of Maoists cannot be resolved by criticising the government or the Maoists, Govinda Bahadur Shaha of NC said that two children were killed and 10 others injured in a bomb exploded by the maoists in the headquarters of Acham district recently.

Nepali Congress VDC chairman Safar Bahadur Rawal, 41, was kidnapped by maoists while returning home with daughter from the district headquarters recently, he urged the government to make public the condition of the kidnapped VDC chairman.

Gokarna Raj Bista of the CPN-UML expressed the view that the present stalemate in the parliament could be ended if the Prime Minister who is involved in the Lauda Aircraft deal submits his resignation and opens the doors for impartial investigation into the Lauda Aircraft deal.

Ramchandra Tiwari of the NC said that it would be improper for the Prime Minister to resign until the Commission for Investigation of Abuse of Authority which is investigating the Lauda Aircraft deal gives its decision.

Drawing the attention of the House to the allegations of deteriorating law and order situation and the involvement of the Council of Ministers in the Lauda Aircraft deal being raised by the MPs of the ruling party, Dr. Prakash Chandra Lohani of RPP said that RNAC had leased the Lauda Aircraft with the involvement of the government with the objective of committing financal irregularities without calling a tender.

As the present constitution was introduced as a result of the joint efforts of the Nepali Congress and the leftist parties, it was the joint responsibility of all the parties to safeguard, promote and implement the constitution, Ananda Prasad Dhungana of NC said, urging the opposition parties to move ahead to protect the spirit of the constitution.

Stating that it was improper to make an unconstitutional demand for the resignation of the Prime Minister, Mr Dhungana said the regular proceedings of the house should be moved ahead to clear the important bills under consideration of the parliament.

Trade deficit narrowed: NRB

BY A STAFF REPORTER

Kathmandu, Feb. 27: The first half of the current fiscal year 2000/01 has been marked with a deceleration in both narrow and broad money. Total government expenditure has decelerated due mainly to the deceleration in development as well as freeze expenditures despite a significant growth in regular expenditure.

During the review period, resources mobilisation grew by 18.2 per cent as a result of higher growth in both revenue receipts and foreign cash grants. However, because of higher government spending, budgetary deficit widened during the review period.

The rate of inflation, on point to the basis, was recorded at two per cent, mainly because of the decline in the prices of food and beverages group.

In the external front, a robust growth of exports accompanied by a comparatively slower growth of imports helped narrow down the trade deficit during the review period. The foreign exchange holdings of the banking system increased substantially due to a surplus in the balance of payment emanating from the growth in official and miscellaneous capital inflows and decline in the trade deficit. The resulting foreign exchange reserves was sufficient to cover merchandise imports of more than eleven months.

In the share market, share transaction decelerated compared to the previous month. In the money market, treasury bills rate remained at 5.33 per cent whereas the inter bank rate stood at 5.1 per cent, according to a press release issued by Nepal Rastra Bank (NRB).

During the first six months of the fiscal year 2000/01, broad money registered a decelerating growth of 4.6 per cent (Rs 8615.4 million) to Rs 194736.3 million compared to a growth of 10.8 per cent (Rs 16554.8 million) during the same period last year.

A deceleration in the growth of both net domestic assets and net foreign assets compared to last year is attributed for such a deceleration in broad money.

The downward revision in interest rates on domestic deposits, upsurge in the stock market activities and rapid growth in foreign currency deposits with banks has led to the deceleration in the growth of time deposits from 10.5 per cent (Rs 10704.7 million) last year to 3.8 per cent (Rs 4805.5 million) this year.

Narrow money also decelerated to 6.2 per cent (Rs 3809.6 million) during the review period compared to a growth of 11.5 per cent (Rs 5850.1 million) during the same period last year.

As a result of a decline in the credit flow to government as well as to the private sector, total domestic credit of the banking system decelerated from 9.0 per cent (Rs 12155.9 million) last year to 6.4 per cent (Rs 10134.9 million) this year. The flow of bank credit to the private sector decelerated to 8.6 per cent (Rs 9303.4 million) during the review period compared to a growth of 11.7 per cent (Rs 10600.0 million) in the preceding year as a result of deceleration in imports followed by the sluggish demand for import credit, the NRB press release states.

On the fiscal front, total government expenditure during the review period registered a comparatively lower growth of 18.8 per cent amounting to Rs 27620.8 million as against 22.6 per cent during the same period last year. Of the total government expenditure, regular expenditure, development expenditure and freeze expenditure increased by 21.6 per cent, 13.7 per cent and 5.4 per cent respectively.

During the review period revenue collection increased by 16.9 per cent to Rs 21175.3 million compared to a lower growth of 13.7 per cent last year. A significant growth in revenue collection coupled with a growth in foreign cash grant has contributed to the growth of resources mobilisation to 18.2 per cent compared to 15.7 per cent last year. However, such a growth rate of resources mobilisation remaining lower than government expenditure, a budget deficit of Rs 4379.4 million was incurred during the review period.

To meet the resources gap, the government issued national saving bonds of Rs 1000.0 million, treasury bills of 494.5 million and mobilised foreign cash loan of Rs 2447.1 million. The remaining amount of Rs 437.8 million was overdrawn from Nepal Rastra Bank.

The National Urban Consumer Price Index, on point to point basis, recorded a rise of 2.0 per cent during the review period compared to a rise of 4.2 per cent last year. A fall in the prices of food and beverages group helped the rate of inflation to be contained at such a low level. Of the overall price index, price index of food and beverages group declined by 2.1 per cent during the review period compared to a rise of 0.9 per cent during the same period last year. Price index of non-food and services group slowed down to 6.9 per cent during the review period from 8.1 per cent last year.

Region wise price indexes of Kathmandu and Hills have respectively increased by 4.5 per cent and 3.9 per cent and that of Terai has decreased by 0.1 per cent.

A significant decline (5.5 per cent) in the price index of food and beverages group in the terai helped the overall price index to remain at such a low level.

Because of the depreciation of Nepalese currency and a rise in the price of petroleum products, the price index of imported goods increased by 13.1 per cent during the review period as against an increase of 2.9 per cent last year.

Similarly, as a consequence of the upward revision in the price of petroleum products, the price index of government controlled goods increased to 12.7 per cent during the review year compared to 8.0 per cent last year.

On the external front, exports registered a decelerated growth of 22.8 per cent to Rs 28757.8 million during the review period compared to a growth of 41.0 per cent during the same period last year. Exports to India went up by 28.2 per cent whereas that to third countries grew by 18.7 per cent. The export of readymade garments, woolen carpets and jewelry to third countries have declined whereas that of pashmina, tanned skin and pulses have increased significantly.

During the review period Rs 5.47 billion worth of pashmina was exported.

During the review period the growth rate of imports decelerated to 8.4 per cent amounting to Rs 56123.5 million from that of 35.5 per cent during the same period last year.

The increase in imports was attributed mainly to a higher imports of vehicles and parts, textile, thread, chemicals, chemical fertiliser, agricultural tools and parts as well as other machineries from India and raw wool, petroleum products, beatle nut, plastic granules, copper wire and sheet, thread, textile, transportation goods and spare parts, computer parts, aeroplanes parts, medical equipments and palm oil from third countries.

During the review period, the growth rate of exports was high while that of imports remained low compared to that of last year.

As a result trade deficit during the review period declined by 3.5 per cent amounting to Rs 27365.7 million compared to the growth of 31.2 per cent in the previous year. The export-oriented ratio, which was 45.2 per cent in the previous year, improved to 51.2 per cent during the review period.

Based on the available balance of payments statistics for the first four month of the current fiscal year, the balance of payment remained favourable by Rs 1445.6 million.

During this period, decline in net services income has resulted in the current account deficit of Rs 1630.2 million in spite of a decrease in trade balance compared to the same period last year.

However, a substantial inflow of official and miscellaneous capital items helped the balance of payment to remain positive. Based on the monetary statistics for the first six months of the current fiscal year, the overall balance of payment recorded a surplus of Rs 3190.0 million. Foreign exchange holdings in the banking system increased by 24.4 per cent to Rs 102998.6 million as at mid January 2001.

Of the total reserves 80.9 per cent accounted for convertible currency and 19.1 per cent for non-convertible currency.

In the share market, market capitalisation of the companies listed in the Stock Exchange decreased to Rs 56.9 billion at mid January 2001 from Rs 59.5 billion in the previous month. Likewise NEPSE index decreased from 486.05 in the previous month to 484.76 at mid-January 2001.

‘Complaints helping check revenue leak’

Kathmandu, Feb. 27 (RSS): The existing provision of presenting directly to the minister the information provided by the general public through the hotline telephone in order to check revenue leakage and wipe out anomalies in revenue administration is bringing positive results, according to the Finance Ministry.

The ministry has also requested all to use the telephone (259765), fax (259759) and the complaint box at the Finance Ministry to inform the ministry about any hassles, dilly dallying and irregularities by any employees of the revenue administration including tax, customs and value added tax offices under the Finance Ministry.

Likewise, the same phone and fax numbers and complaint box can be used to give information regarding smuggling, tax evasion, revenue leakage and similar other irregularities taking place by means of collusion between employees and businessmen.

Information of this kind will be received round the clock and kept confidential, the Finance Ministry said.

Hotel unionists push their protests ahead

BY A STAFF REPORTER

Kathmandu, Feb.27: Hotel unionists today declared their protest programmes beginning tomorrow to be finally followed by shut down strikes at hotels from March 15 next month if their service charge demand continued to remain unmet.

"There is no other way left for us than struggling for the cause of hotel labourers’ rights," hotel union leaders said at a press meet here today. "This movement will continue until our demand is fulfilled," they asserted. "We will not bargain any more."

The union leaders in the Joint Central Action Committee (JCAC) of the two hotel employees’ unions — Nepal Independent Hotel Labourers Union and Nepal Tourism and Hotel Workers’ Association — said that they were forced to resume their protest programmes since no initiative was taken to fulfil their demand in the last seven months.

"In the last more than half a year time, we postponed and withheld our protest programmes several times in hope that our demand would be fulfilled," said Bishnu Lamsal, General Secretary of JCAC. "Our patience has proven that we are sensitive toward tourism industry."

The unionists blamed both the government and hoteliers for what they claimed their indifference on the service charge demand -- which they said they have been demanding for the last 21 years. "The hoteliers were never interested to hold dialogue with us. Rather, they blamed us that we were the one not to come across the dialogue table," said Madhav Neupane, Chairman of Nepal Independent Labourers Union Central Committee. "The government also did not keep its words that it would introduce the service charge as we had demanded."

The union leaders said that there were efforts to divide the two unions in the last few months. "But, our both the unions are united against such propaganda and we will remain so till our demand is met."

In a serious accusation against hoteliers, the two unions said today that hoteliers have been pocketing commission from the two per cent Tourist Service Fee the government has been collecting from them.

Tourism entrepreneurs are supposed to collect two per cent Tourist Service Fee from their clients (to be charged in their Bill). The fee thus collected has been the funding resource of Nepal Tourism Board — a partnership between the government and the private sector — responsible for destination promotion.

The unionists said that the government has enough ground to introduce service charge even if it consults a high level committee’s report on the service charge issue. "Of course, the report does not categorically recommend that the government should introduce service charge but the document does not also rule out the idea."

The high level committee headed by National Planning Commission Vice Chairman Prithvi Raj Ligal had suggested that the government should tentatively introduce voluntary hospitality charge to ultimately go for fixed wage system.

The report had pointed out that Nepal’s deteriorating performance in the international tourism market and the poor rate of return in travel trade did not allow the immediate implementation of service charge

While hoteliers had endorsed the idea, the unionists, who had been boycotting the high level committee, rejected it. That is why officials at the Ministry of Culture, Tourism and Civil Aviation, that has been entrusted with the responsibility to take both the opposing sides into confidence, has not been able to hold smooth talks with unionists.

Meanwhile, hoteliers have raised questions over the high level committee’s report if it remained unimplemented. "Either the government should be able to say that the findings of the report is rubbish or its recommendations should be implemented," said Yogendra Shakya, former President of Hotel Association of Nepal (HAN).

He also said that there were simply too many negotiating bodies in the service charge row between the hoteliers and their employees’ unions.

HAN’s incumbent President Narendra Bajracharya had last week told The Rising Nepal that hoteliers were ready to levy service charge on their hotel clients but only after three to five years.

He had also mentioned hoteliers’ three-point checklist before implementing service charge. "The annual tourist arrival should go above 500,000, there should be some reform in the Labour Act and we should be allowed to finish the businesses (for another three to four years) that we have already signed with tour operators," he had said.

Planned programmes

1 Conduct protest-training programme in Chitawan and Pokhara on February 28 to March 3 next month.

1 Get-together programmes (of hotel employees) in the hotels in Kathmandu Valley from March 4 to March 9.

1 Get-together and training programmes among mobile teams of the hotel employees on March 10.

1 Black flag to be hoisted in all the hotels across the Kingdom on March 11.

1 A mass meeting in Kathmandu on March 13. Meetings in Chitawan, Pokhara and Rupandehi on the same day.

• Shut down strikes in all hotels from March 15 if the 10 per cent service charge demand is not fulfilled by March 14.