COMMENT

Force, not the only option

Once more the focus is on the Maoists. But this time, unlike the war-like noises being made by Prime Minister, it is the passive approach suggested by British Foreign Secretary Robin Cook that has drawn the attention of Kathmandu’s intellectual circle. The media didn’t fail to highlight the concise but telling remark of the British dignitary. After his meeting with Foreign Minister Chakra Bastola, Cook told waiting reporters that the Maoist problem should be solved through dialogue. He also mentioned how his own government had been successful in dealing with the IRA (Irish Republican Army) through talks. This is perhaps the first time that any out side official, specially such a high ranking one and one from the West, had publicly said talks should be held with the Maoists, who have been carrying out a bloody “Peoples’ War” for over four years now. But, while the British dignitary’s remark was highlighted by the media, in some other quarter, observers were apprehensive that this may also be taken as international recognition by the Maoist. But only this will not make the insurgents legitimate. What has happened is, the Nepalese government and the hawks within it have been alerted about the fact that brutal suppression is not the solution to the problem.

Prime Minister Koirala and some of his top ministers and bureaucrats must now think of a multi-pronged approach to deal with the Maoist. Being guerrillas, the insurgents naturally have the upper hand in the present battle with security forces. While the insurgents have clearly marked people on whom they can target their weapons, the security personnel have no such enemies to shoot at. “Then how can we win in such a situation?” One policeman belligerently but quite pragmatically asked. The only answer to winning the battle against the insurgents is to isolate them by winning over the people. This can be done not through force, but through economic development and social change. If we need an outsider to make our policy makers realise such a simple thing, then it is a sad reflection on their capacity to judge matters. But still, it can be hoped the present government will now opt to resolve the insurgency problem with a multi-tiered approach rather than stick with the “force only” option.

Here a bribe, there a bribe, everywhere...

Bribing and accepting bribes seems to be a way of life. According to an opinion survey of the Media Services International, a staggering 98.2 per cent of the people of Nepal say there is corruption at every level and it is increasing in number as well as in intensity. No doubt, people have felt, read and experienced the growing incidences of corruption, kick-backs and other form of corrupt practics, but the sheer percentage of people who feel about the presence of these malpractices is mind boggling. The survey has also found that corruption and corrupt practices have percolated at every section of the society and especially in the government. According to the opinion survey, 51.3 per cent of the respondent were of the view that corruption exists at very high levels.

According to the poll, bribes were offered from Rs. 100 - Rs. 1000, to the upper limit of Rs. 50,000 - 100,000. It was also discovered that 61 per cent offered bribe out of compulsion, 11.2 per cent offered it willingly and 2 per cent offered it by force.   Fifty one per cent thought no work could be done without bribing and 41 per cent referred to the existence of corruption at high level and in contrast only 5.4 per cent and 0.6 per cent accounted for low level and very low level respectively. This clearly means no work is done in the government offices if there is no ‘extra payment’.

Going by the survey the scenario is very bleak indeed. It only reinforces what the public has known all along. The recent spate of activities to root out corruption is a sign of hope that perhaps this devil may be driven out of our social mentality   for good. Cleansing our system, physically as well as mentally is a dire need of the day.

Nepal Development Forum meeting in Paris: Some Reflections

By Shanker M. Singh

Foreign aid plays a prominent role in the development of each country. A very poor country like ours cannot take quantum jump in national development without foreign aid. It is, however, regrettable and unfortunate that there has been no development in Nepal in the proportion to the volume of foreign assistance that is pouring into the country. Thus for the Nepalis, the talk about development through foreign aid has proved to be a mirage.

Lack of clear-cut priorities and programmes with the government was an important issue discussed at length by the donors. Some donors remarked that their aid is at present projected into small activities and there is need to combine such activities into one programme leading to programme agreement. However, the government has not been very clear and elaborate on its prioritisation, for example in the ninth plan.

The bilateral and multilateral donors in Nepal Development Forum meeting concluded in Paris agreed to extend a financial assistance of up to US $ 1,250 million during 2000-2001, but strictly tied such assistance to progress on reform. A press release issued by the World Bank at the end of the meeting reads,” Nepal’s development partners reaffirmed their resolve to assist the people of Nepal in addressing the challenge of poverty reduction and economic growth, which is in line with performance on accelerated policy and institutional reform. The level of assistance in 2000-2001 will range from current level upto US $ 1,250 million.”

It is notable that the development partners, however, emphasised that actual levels of assistance will reflect progress in policy and institutional reform, improvement in aid effectiveness, and aid levels could even be higher if the pace of reform is accelerated.

Finance Minister Mahesh Acharya, who led the Nepalese delegation in the meeting of Nepal Development Forum  held in Paris,  France from April 17 to April 19, informed the press about Nepal’s agenda to be discussed in the donors’ meeting. Nepal put forward the issues relating to fiscal and institutional reforms for poverty alleviation in the country and sought for donors’ commitment for these issues. It is a part of government’s move to maintain transparency in its activities and seek support and approval from the people for its economic policies and program.  Nepal, on its part, had convinced the donors about its development priorities, strategies, policies and programs.

Nepal put forward its overall programs required for poverty alleviation and development and sought donors’ commitment to support these programs. Previous experiences have shown that Nepal, in several cases, could not fully utilize the foreign assistance. Donors’ had been raising the issue that Nepal lacked capability to fully and effectively utilize the foreign assistance. In this situation, one of Nepal’s priorities is to develop its capability to properly use and utilise the foreign assistance-and mobilize its own resources for economic and social development.  For this, institutional reforms are needed, ,which Finance Minister Acharya has clearly enunciated. Donors, as development partners, have always showed keen interest in assisting Nepal’s development efforts. Nepal’s capability to fully absorb and utilise resources and assistance is assured, there may not be any dearth of foreign assistance. The recently concluded Nepal Development Forum is the most appropriate forum and opportunity for Nepal to seek donors’ commitment for its development endeavors.

Nepal expressed her programme and indicated that HMG/Nepal has assigned priority to projects, which can help, alleviate poverty and accelerate economic growth. Accordingly, highest priority has been given to agriculture, human resource development (education, health, and drinking water) physical infrastructure and tourism.

The high rate of population growth and increasing rate of environmental degradation has pervaded the task of poverty alleviation. Nepal’s reform programmes are being consolidated and strengthened to address these problems.

The majority government of Nepali Congress is committed to build and expand the reform process taken by the 1991- Congress government. The government has ensured lead role to privatise private sector in areas where it has distinct advantage. The government’s role is to facilitate the growth of private sector in trade, industry, and other productive sectors.

The present government wants to maintain macro economic stability and contain fiscal deficit through improved public expenditure management and additional revenue mobilisation, appropriate pricing policy and prudent financial as well as monetary policies.

In order to make trade competitive, tariff rates were reduced, export procedures were simplified, and real exchange rate was  depreciated and Nepali currency was made fully convertible in the current account. This is the need to improve aid-co-ordination. Aid assistance should basically flow in to the priority areas as defined by the government and a balance between the social sector and infrastructure development programs should be ensured.

Industrial policy was improved further. Nepal welcomes foreign investments, particularly, in every sector of the economy. Full repatriation of dividends is guaranteed and liberal exit policy is adopted. One window system is in operation to provide all government services to domestic and foreign investors through a single institution.

The government has taken various measures to enhance revenue collection, including the introduction of Value Added Tax. They include, broadening the tax base. And making tax structure more sustainable, making tax rate more rational to bring in more people into tax net and making tax administration simple, efficient and transparent.

Nepal is making serious efforts to respond to the often-repeated concern regarding weak project implementation capacity.

The policies of the donors have changed.  While sympathy for the plight of the developing countries faced with overwhelming problems persists, a new benchmark for aid has appeared, or to put it more accurately, performace is being emphasised.  There is nothing wrong with this measuring rod; after all, everything in this world is, one way or the other measured by performance, without which there can be no progress.  However, the question is what are the indicators of performance whose satisfaction will yield more assistance, and over what time frame should this performance manifest itself? 

The politics of corruption

It has been rightly pointed out that “politics is a dirty game”. The main opposition party NCP (UML) in order to strengthen its programme against corruption, announced the list of those people who were involved in corruption at a public meeting at the open-air theatre April 8. The list included the big shots like the former Home Minister Khum Bahadur Khadka, who is alleged to have given 1 crore 80 lakhs to the then deputy Secretary General of NCP (UML) Bam Dev Gautam to break the NCP (UML) party. Similarly, NCP (UML) secretary general Madhav Nepal charged the then NCP (UML) deputy secretary general Bam Dev Gautam of smuggling 1,638 kg of gold and transporting a sum of Rs. 1,169,000,0000.00 in five jeeps. Mr. Nepal accused the incumbent mayor Keshav Sthapit, who is said to be involved in corruption by pocketing 4 crores 83 lakhs.

The spokesperson of NCP (UML) Pradeep Nepal announced the additional list of people who are involved in corruption, which included industrialists/businessmen, besides politicians. One of the industrialist/businessmen Chabilal Bhusal, whose name was made public in the open-air theatre to have involved in corruption has filed defamation case against NCP (UML) in Kathmandu district court.

Subsequently, Kathmandu Metropolitan Mayor Sthapit announced in a press conference that he was actively involved in the transaction of 3 crores to dismantle the then government with Madhav Nepal. It is very interesting to see the politicians accusing and counter-accusing one another on corruption.

When asked in an interview. “Is your party free from corruption” April 12, issue of The Independent the MP belonging to NCP (UML) Asta Laxmi Shakya said “Till date yes, we are.”

Corruption is an international phenomenon, world leaders such as the former President of the Republic of Germany Helmut Kohl, Former Prime Minister of India Narasimha Rao, Former Prime Minister of Pakistan Benazir Bhutto and the former Prime Minister of Israel Benjamin Natanyahu were also implicated in various  charges of corruption.

It reminds me of the Kal Bhairav located at Hanuman Dhoka who, during the reign of King Pratap Malla could identify the criminal by the application of tantra. Anyone who has committed crime was brought to Kal Bhairav to confess the crime. If the accused lied, he immediately vomits blood and dies in front of everyone. Wish we could reactivate the Kal Bhairav again and identify the corrupt people by the application of tantra.

Jagadish B. Mathema
Balaju, Kathmandu