NATIONAL 4 - (Spotlight Weekly)

‘If We Prepare Our Programs With Clear-cut Vision, Donors Will Have No Complaints’

— Prithvi Raj Ligal

Vice Chairman of National Planning Commission (NPC) Prithvi Raj Ligal is one of the members busy preparing Nepalese agenda for the Nepal Development Forum meeting. On the eve of the meeting, Ligal spoke to KESHAB POUDEL on various issues. Excerpts:

What are Nepal's agenda for the meeting?

This government has set clear agenda to govern. Just after the formation of the government, Prime Minister Girija Prasad Koirala spelt out three agenda for the new government like maintaining law and order, containing corruption and civil service reform. As per Prime Minister's commitment, we are taking financial reform as a major agenda in the meeting. We are also taking new look at the public expenditure management. We want to re-prioritize and re-focus in many projects which failed to make any impact. As the government declares the poverty alleviation as the single most important agenda, we want to concentrate our resources on this sector. We are now considering to divert resources to the programs to alleviate poverty. These apart, we will talk about issues like financial management reform, public expenditure management and internal resource mobilization. We are developing a long-term framework for the poverty alleviation. We will also discuss issues of law and order, decentralization, anti-corruption drive and the role of civil society and private sector.

What concrete measures are you going to take for reform?

We want to take the metric of reform agenda. We will possibly announce the time frame for our reform agenda like when we will start. When we talk about the financial reform, we will categorically point out the areas of reform. We will also set the time frame and agenda for the meeting.

It is said that Nepal's preparation is very poor. What do you say?

There is no basis behind this argument as we have made full preparation since very long time back.

Then, why the donors are not convinced on your commitments?

The issues we are raising are not new as we have been talking about financial reforms, public expenditure management and anti-corruption drive for long time. Earlier we did not set any long term and short term time bound for the implementation nor we took any step. After taking oath, PM Girija Prasad Koirala clearly pointed out that he means business. This is the reason we are now preparing time-bound commitments for all our promises. Donors also want the time bound commitments from the government. Donors are not expecting too much but what they want is time-bound progress and reforms in particular sectors. These are fairly good suggestions on the part of donors.

Are you really serious about the suggestions of donors

Yes, we are very much serious about their grievances. We will sincerely respond to the demands of donors and to their grievances. We discussed these issues in the presence of Prime minister and ministers. Before we leave for Paris, we will have time-bound announcements for reform.

How favorable is the timing of the meeting?

The meeting is going to be organized after a lapse of five years. This will be the last meeting at Paris. From next time, such meetings will held in respective countries. Such type of meeting has a great significance for the country like Nepal. It will offer an opportunity for the donor and government to express their views including challenges and problems in the field of project implementation. During the meeting, both donors and government will get the opportunity to set the priority and agenda for the next year. It will offer the opportunity to explain the priorities of the government. Donors can openly point out lapses and weaknesses in the project implementation sides. Such debate helps to find out the solutions. As ninth plan takes poverty alleviation as the main focus area, we want foreign assistance to eradicate poverty. If we ask foreign assistance for particular focus area, it may help us to utilize foreign aid successfully. If we prepare our programs with clear cut vision, donors will also have no complaints

For the first time donors have raised the issues of good governance, civil society and role of private sector in the development process. How do you look at it?

These are not new agenda. Even the ninth plan stresses the need to link civil society, good governance and private sector to carry out development processes. The government cannot carry out the development works alone. This is the reason we are trying to create conducive atmosphere to the civil society and private sectors to invest resources in the area of poverty alleviation. Nepal needs active support of civil society and private investors to eradicate poverty. Particularly the role of INGO is necessary to carry out the poverty eradication program. Ninth plan has already endorsed the role of civil society like INGOs and NGOs whose role are very much positive. This is the first time when we are discussing with donors about the role of civil society formally. This is a very positive development. The government also knows the role of civil society to deliver goods at grass root level. Most of the INGOs have been doing quite satisfactory work and they are effective.

At a time when you are taking part at the Nepal Development Forum meeting, what is the progress in the micro economy?

Our micro economic situation is quite satisfactory. For the first time in the last five years, annual growth of GDP is expected to reach 6 percent. Due to favorable weather, the agriculture production is quite high and non-agriculture sector also performed very well. The disruption of Indian Airlines flight left some hitches in the growth of non-agriculture sector. Otherwise, Nepal's GDP growth is expected to be higher this year.

How is the inflation and export situation?

Inflation level is very low compared to the previous years as it will continue to be below 6 percent. Export to India and the third countries is booming. The balance of trade is still not in favor of Nepal but the trend is changing. India imposed some taxes on Nepalese manufacturing commodities that will have certain set back on our export. From private as well as government sector, we must demand that Nepalese manufacturing products be exported to India according to Nepal-India trade agreement of 1996. I hope that we will sort out differences with India on additional taxes. In the last five years, due to frequent changes in the government, we were unable to enthuse donors about our seriousness to do business. Now this government has clear cut vision about the development programs. The increase of export to India does not mean that the balance of trade will reverse as the base of Nepalese export to India is very small compared to the import of Indian goods. There is no reason for satisfaction. If you look at overall export scenario, it is very enthusiastic. We hope that there will be a surplus of 7 to 8 billion rupees in balance of payments.

What is required now?

We need to introduce new laws to promote private sectors in different areas. If we are able to do so, we will ensure the continual growth.

How do you make the poverty alleviation programs more effective?

Agriculture is one of the main sectors to reduce the level of rural poverty. Agriculture is the main profession for more than 85 percent of rural population. We need to maintain higher growth in agriculture sector to eradicate rural poverty. We must invest our resources in the agriculture sector.