Nepal-ROK Ties
Need Further Strengthening

By Chiranjibi Paudyal

THE relation between Nepal and the South Korea is very warm, cordial and friendly ever since the establishment of diplomatic relations in 1974. Though the two countries share common bonds of the religious, cultural and social values based on the Buddhism which entered into Korea centuries ago from Nepal through China, there was no contact between the people of the two countries until the dawn of the 20th century.

The two countries share many similarities because of the rich Buddhist philosophy which is deeply rooted in the life of the people of the two ancient Asian nations. The political or diplomatic relation of any nation is also determined by other aspects of the society. The political relation between the two countries has been excellent since the establishment of diplomatic ties and both the countries share similar views in many international events. After the establishment of parliamentary democratic system in 1990 in Nepal, the relation has been even closer and has paved the way for more close relations with frequent contacts between the people of the two countries.

The economic relations between Nepal and Korea began in the form of economic cooperation from the Republic of Korea since early 1970s which has made remarkable contribution in the development efforts of Nepal. The most important aspect of the economic cooperation is that Nepal is among the priority countries of the Korea International Cooperation Agency (KOICA) financial assistance. This is very important as Nepal is the only country from the South Asia region to have been included in the priority list of the countries of the KOICA assistance. The Korean assistance is mainly focused on human resources development, eradication of poverty, providing basic needs, promotion of market economy and free trade, capacity building of policy development and administration of recipient countries and contributing to addressing global issues like environment, population and women in development. KOICA implements various cooperation programmes including the dispatch of Korean medical doctors, industry experts, sports instructors as well as overseas volunteers, invites trainees and assists non-governmental organisations. It contributes in enhancing Korea’s image through establishing cooperative relationship with developing countries and has been contributing financial aid to the developing countries in official development aid. Computerization project in the Ministry of Foreign Affairs, Chameliya hydro electricity detailed design and providing training to about 41 Nepalese in various 24 courses in Korea are some of the KOICA activities in 2001. The economic situation of Nepal and Korea was similar until 1960s and it became able to forward the pace of economic development within a very short period of time which can be a very fruitful development model for a developing country like Nepal.

The Korean government, in accordance with the new diplomacy of President Kim Dae Jung, is making an effort to build a solid diplomatic foundation in order to cope with the changing global environment by strengthening its cooperative ties with advanced countries and enlarge its role in the international arena. Tourism, hydro power, human resource development, information technology are some of the areas where there is high prospects of Korean investment in Nepal. The cooperation in development of water resources in which Nepal occupies second position in the world with the potential of producing 83,000 Megawatt of electricity out of which 45,000 MW is said to be financially viable is one major field. There is high demand of electricity in the country and can be exported to India where it is estimated that there will be 100,000 MW of shortage of electricity in the coming decade. The Korean expertise can be very fruitful to utilise the water resources of Nepal which has regional prospects and open up many opportunities in the country and can change the economic condition. The recently signed agreement in the civil aviation sector will be a milestone to increase the number of Korean tourists to Nepal and it will be very fruitful to familiarise Nepal in Korea and attract the investors to the beautiful Himalayan country known as the birthplace of Lord Buddha.

Unemployment has created serious problems in the country and the Republic of Korea, as an emerging economic power of the East Asia, is in need of labour due to the rapid industrialisation. Many Nepalese are working in South Korea and Korea needs more work forces with the rapid growth of its economy in the coming days and Nepal can supply the workers needed for the Korean market. Lumbini, the birthplace of Lord Buddha is the centre of attraction to all the Buddhists throughout the world. About 46 percent of people in Korea follow the Buddhism.

In accordance with the present changed context of the world, Nepal needs to expand the diplomatic relations and increase the number of Royal Nepalese Embassies in some countries with which Nepal has very close political, economic and cultural relations. Korea as an emerging economic tiger of the East Asia region and its increasing cooperation in various social, political, economic and cultural fields of Nepal, there is the need to establish Nepalese embassy in South Korea. Keeping in view the interests of the Nepalese people working in Korea and with a view to further promoting the economic cooperation, increasing joint investment and trade between the two countries, the establishment of the residential embassy in Korea can be very meaningful. It can help promote trade, attract Korean investors, increase the economic cooperation and create employment opportunities to the Nepalese youths in Korean markets.

In the words of Korean ambassador to Nepal, "ever since the Republic of Korea established diplomatic relations with the Kingdom of Nepal in 1974, the two countries have enjoyed close and cordial relations. Situated in Asian continent, both Nepal and Korea share similarities ethnically as well as religiously and such common ground paved the way for friendly and cooperative relations from the beginning. Today, the two countries are engaged in intensifying and expanding their cooperative ties for mutual benefits of their peoples." This clearly reflects the friendly relations between the two countries and that needs to be further promoted in the coming days.

Tourism Industry Suffers Again

By Mohan K.C.

TOURISM in the country is once again bracing for another set-back with the expected spurt in the inflow of tourists affected by the cancellations that have begun at a rapid pace. There was some amount of jubilation in July and August that the tourism industry was ready for a big come back with the autumn season. Block reservations were in the order despite the national flag carrier Royal Nepal Airlines (RNAC) cancelling some of the potential routes in Europe like London, Frankfurt and Paris.

Though RNAC decided to stop its flight to European destinations, there were some encouraging signs with bookings being made for the season beginning September. Though block booking of hotel rooms cannot be a guarantee that the occupancy rate will be the same, yet it gives an indication of how the peak season will fare.

The year 2000 was a bad year in the annals of Nepal’s tourism history with the growth rate tilting towards the negative side. It was one of the worst years for tourism industry. The almost 10 per cent negative growth was quite a blow to the industry which had envisaged a steady growth since the Visit Nepal Year 1998 was marked amidst much enthusiasm.

With the arrival of almost 500,000 tourists in 1998 there was every possibility of increasing the number to double itself in 2002. But the events unfolding in the country did not quite provide a boost to the industry as it was supposed to.

The first and foremost criteria for a stable and growth-oriented tourism industry are the state of peace that exists in the country. Without the security factor in place, all attempts to promote the industry falter right from the beginning itself. That is exactly what happened. At the end of 1998, enthusiasm had risen that Nepal held the potential to attract more visitors but as the future events are uncertain one can just make projections which are hypothetical in any case. And this is what happened.

The regular bandhs and demonstrations in the past year and even in the first five months of this year were quite a dampner as far as the tourism sector is concerned. Information regarding the state of affairs in the country is transmitted at a faster pace these days, the instability which leads to a problem with law and prospective visitors cannot digest order.

It is important to note that tourists plan their visits quite long way back before actually embarking, they take note of the security factor. If any trouble brews in any part of the world en route to place in their itinerary they are bound to cancel their trip. This is what has taken place in recent times.

The attack on the twin towers of the World Trade Centre and Pentagon has had a far-reaching impact than what had been thought of. The most prominent speculations have been that an all out offensive on Afghanistan would take place but that has not materialised. Despite that the fear is there for South Asia as a whole.

While the present international scenario stands out glaringly creating an uncertain picture, the scene in the country is quite encouraging. With the government and Maoists sitting down for talks twice in recent times there is some hint that the law and order situation would be in place soon.

The government on its part has done quite a lot so that the talks would be held in the most congenial environment. The Maoists too have done a part of their job by toning down their activities in recent times. There seems to be commitment on the part of both the government and the Maoists to come to the table so that peace returns to the affected parts of the country. The government has made it clear that the talks should be confined within the periphery of the Constitution. The Maoists in the beginning had made their demands some of which could not be fulfilled. But now they have been more compromising.

In such a set up, there was every expectation for the tourism industry to pick up. Yet, it is ironical that world events have a great say in the tourism sector of any country. Global events have time and again dealt a blow to the thriving tourism industry in the country. Once again the terrorist strikes in USA has created a situation in which Nepal may suffer. Though promoted as a safe destination nowadays, the global scene is not so. People do not just travel to any country as per their whims and fancies, the security factor is uppermost. As most of the tourists coming to this country do so by air, they have a greater concern. The situation inside the country may be fine but there is apprehension among the potential tourists in venturing out of their country.

In such times, it is evident that the tourism industry in the country will take some more time to tap its potential. For this not only the law and order situation in the country must be up to standard but peace must prevail on a global scale. Yet, it may not be ripe to say that tourism will not gain in the coming days. It is await and see game.

Generating Improved Technology

By Khilendra Basnyat

CEREAL grains, which constitute about eighty-five per cent of total crop production are the principal crops in Nepal. Rice can be found growing everywhere. It is a dominant cereal crop in the country.

About fifty-three per cent of Nepal’s cultivated land is used for farming rice. Nearly sixty-four per cent of the rice land is found in the tarai, over fifteen per cent is in the alluvial land in mountain, and the rest is on terraced mountain slopes.

Wheat and millet, which are chiefly planted in the hills, account for about six per cent of the cultivated area. In the western tarai, wheat is a main crop; whereas in the western tarai, paddy occupies a similar position. Barley and wheat are the major crops in the mountain region.

Maize is the single most rain-fed crop in Nepal, which occupies about thirty-eight per cent of the total cultivated area. More than eighty per cent of maize cultivation occurs in terraced land in the mountain region.

Other cereal crops such as millet, barley, buckwheat and pulses are also key components of the cropping system in Nepal. They are a part of Nepali diet.

In all Nepal’s geographical regions, the amount of per capita cultivated land has been declining. The yields of major cereal crops are relatively low, despite an increase in some cases due to expansion of areas in order to offset the decline in yields. Rice and wheat yields were about as high in the 1960s as they are now.

The use of improved varieties of paddy, wheat and maize from the mid-1960s contributed to their increased production. Their yield nearly doubled initially but declined later. In the beginning, farmers were able to sell more crops but failed to keep the crops production level due to the lack of money for purchasing necessary agricultural inputs.

In the Middle Mountains and the Great Himalayan areas, substantial portions of marginal land are already in use due to increased population density and declining yields.

Soil erosion and the lack of animal manure caused by the increasing use of dung for fuel have led to still low yields. Continued deforestation and deterioration of the fragile resource base in the hill and mountain have caused negative impact on the production of cereal grains.

Both the yields of maize and millet have declined significantly. Consequently, there has been an increase in malnutrition among the low-income groups in the Middle Mountain because maize and millet are especially grown in this region.

Since the tarai offers the most readily achievable potential for yield increases of the major cereal grains, extending irrigation is one means although this requires an investment in both water distribution and organisation for effcient water users.

In the past, most increase in cereal grain production occurred in the eastern hills and the inner and western tarai. Therefore, adequate quantities of paddy and some maize were sold by the farmers of these regions.

In the eastern tarai, the combination of rich alluvial soil and rainfall, which exceeds two- thousand millimetres per year, makes rice cultivation possible. Because of the comparatively heavy rainfall, double and at times triple cropping is possible in this region. What is more, good access to transportation and markets in India enables the export of rice surpluses when they occur.

In the mid-western tarai, where the rainfall is one-thousand milimetres and is uncertain, agriculture is less intensive and harvests are usually poor. Wheat is the main crop in this region though rice maintains a position of importance.

Although the soil of the western tarai is fertile, the rainfall is insufficient to support agriculture without irrigation development.

Impressive productivity increases have also been achieved in the tarai under rain-fed production with improved cropping systems.

On the whole, the tarai shows a strong food surplus that is less than the sum of the deficits in the other regions. Consequently, for the country as a whole, there has not been sufficient food to meet the estimated requirements of the policy.

Output increase in the tarai will not only improve domestic supply situation but will also provide exportable surpluses, which will benefit the tarai producers, urban consumers and the country’s balance of payment. However, it will not solve the food deficit problem in the mountain because of the high transportation cost and the lack of purchasing power of the poor people residing there.

Cereal production in Nepal has failed to keep pace with the population growth. In fact, much still needs to be done for generating improved technology, especially in the mountain.