NATIONAL 1 (Spotlight Weekly)]

Uncertain

With Finance Minister's resignation, the all-important meeting becomes uncertain

By BHAGIRATH YOGI

If things had gone their way, Finance Minister Mahesh Acharya would be presenting Nepal's case at the Nepal Development Forum (NDF) meeting in Paris in March this year. Earlier known as Nepal Aid Group, the Nepal government has attached top priority to the meet of the donor community.

The last aid group meeting, held in Paris in April 1996, had pledged a support of US$ 993 million for the year 1996-97. "It is a major achievement for Nepal," then Finance Minister Dr. Ram Sharan Mahat had said. The meeting, attended by a group of 13 donor countries and seven international organizations, had decided to hold the next meeting of Consultative Group on Nepal after 18 months "to review the implementation of Nepal government's on-going program with particular emphasis in reviewing the social programs."

But that meeting was never convened. With political uncertainty looming large due to formation and collapse of short-lived coalition governments, the donor community had to wait till May general elections last year that resulted into a majority government of Nepali Congress. At the initiative of the World Bank, it was decided to hold the meeting of Nepal Development Forum during March 15-17, this year. According to sources, issues including poverty alleviation and development efforts in Nepal and the role of private sector in the country's development were likely to be discussed in the proposed meet.

But with the sudden resignation of Finance Minister Acharya (See: Cover Story), the fate of the all-important meeting remains undecided. "The circumstances surrounding Acharya's departure would seriously jeopardize chances of productive outcome for Nepal at the Paris meeting," Rajiv Upadhyay, spokesman for the World Bank office in Kathmandu, told a national daily on Sunday. "It would most certainly raise a number of questions as to whether a meeting in Paris, at this stage, is justified at all."

With more than 60 percent of the development expenditure being financed by the donor community, Nepal can't ignore the concerns raised by them. "The foreign assistance will be critical in alleviating poverty and attaining a high and sustainable economic growth," Dr. Mahat had told the Paris meeting four years ago. "We are committed to the necessary structural adjustment in order to effectively mobilize our own human, natural and financial resources, and thus reduce dependency on foreign aid."

Incidentally, Dr. Mahat, as finance minister once again, will have to explain to the donor community about the commitments made by him four years ago. Though a number of fiscal reform measures have been continued after the meeting, the government is yet to fulfill its commitment of establishing a core program of expenditures and a three-year rolling expenditure program. Of course, there have been some improvements in the areas like ensuring continuity in project management and to reduce staff turn over, and take actions to accelerate procurement and disbursements.

After assuming office, Minister Acharya said that the government would formulate an aid policy in order to better utilize aid in the priority areas. If the Bagh Durbar comes up with such a policy, it would go a long way in defining Nepal's aid priorities and improving her performance over the long run.

MAOIST PROBLEM

Koirala's Tour

As the Deuba committee falls into controversy, G. P. Koirala sets out on a tour of the Maoist-hit region

By A CORRESPONDENT

It might not be a right time for the ruling party President to head toward remote mid-western parts of the country, hit by four-year-old Maoist rebellion, when the eight-moth old government has fallen into crisis due to internal reasons. But for Nepali Congress President Girija Prasad Koirala, his commitment comes at the forefront.

"The positions like Prime Minister and party President don't hold much charm for me," Koirala told reporters last week. "For me the country is superior than my party."

And, how could Koirala take rest at the comfort of capital at a time when innocent people, most of them his own party workers, were killed every day by the Maoist rebels. "I am visiting these areas to get first hand information about law and order situation and development works being carried out by the government in the districts affected by Maoist violence," said Koirala. "The problem could be solved on the basis of national consensus between different political parties."

The Bhattarai government has constituted a high-level committee under the chairmanship of former Prime Minister Sher Bahadur Deuba to build consensus among political parties regarding the issue of Maoists.

Though the committee has held a number of meetings with leaders of different political parties, it has failed to thrash out its strategy. Worse, its members themselves are coming up with contradictory remarks. "Maoist issue is a political problem," declared former Home Minister Khum Bahadur Khadka, a member of Deuba committee. Countered former Home Minister and a member of the same committee, Govinda Raj Joshi, "Those who see Maoist issue as a political one are fools."

There should be no confusion in this regard, said Koirala. "Our party sees Maoist violent activities as terrorist act. Even then, I would like to call upon the Maoists to come to the table of dialogue to find amicable solution," he said. He may be repeating this call during his visit in the Maoist affected districts. But there are no signs that the rebels-who, analysts believe, are working on to weaken the new-found democracy in the country-- would accept his call or the call made by the Deuba committee.