Cover Story (Spotlight Weekly)

In Favor Of The Poor

Despite pressures from the five agitating political parties to postpone the Nepal Development Forum (NDF) Meet, it is going ahead as scheduled on May 5-6, 2004 following the realization on the part of Nepal’s friendly donor countries that any postponement of the NDF would hurt the poor people who are in the desperate need of their support. Highly dependent on foreign aid, Nepal’s poverty alleviation programs and other development works would have suffered in case of any interruption. Ignoring the request by the agitating parties, Nepal’s friendly countries have shown that they are more concerned about the poor Nepalese than the royal government or any accountable government as described by the agitating parties. By putting pressures to postpone the meeting indefinitely, the agitating political parties, who have ruled the country many times in the past, have exposed their insensitivity towards the country and countrymen

By KESHAB POUDEL

A far-off village : Developmentis the only goal

For a poor family of Darchula district and a pregnant woman of remote parts of Jhapa district, it does not make any difference who the ruling parties in the capital are. Whether it is a royal government or an elected one, donors are the only hope for them now as they are providing billions of rupees to uplift the lives of millions of poor and underprivileged people like them.

Whether bilateral donors like USAID, DFID, JICA and DANIDA or multilateral donors like ADB and World Bank, all want to see positive impact of their programs. As envisaged by the National Planning Commission’s (NPC) Poverty Reduction Strategy donors as well as lending agencies like the World Bank, IMF, Asian Development Bank and others want to ensure that their money is used for achievement of specific goals.

While the pressure from rest of the five party brigade can be understood, it was shocking to see Nepali Congress, whose charismatic leader late B.P. Koirala had once discarded a suggestion to ask donors to stop helping Nepal. Koirala declined to issue any such statement saying that his differences were with the King on political matters and not on matters related to development of poor Nepalese. Even during the Panchayat days Congress’ visionary leader solidly stood in favor of the country’s development interest. So, it was strange to see the current Congress leadership toeing a line asking for postponement of NDF.

DFID’s CAP 2004-2008

Although the release of the Department for International Development (DFID)’s Country Assistance Plan 2004-2008 had nothing to do with the forthcoming NDF, it was coincidently released just two days before the beginning of the NDF meet. Published on the eve of the NDF meet, the CAP highlights how development should be launched in a situation of armed conflict and political stalemate.

The overall purpose of the UK development assistance to Nepal is to reduce poverty and social exclusion, establishing the basis for lasting peace.

“The CAP represents more than just the view of DFID Nepal and its plans. Different groups in Nepal including journalists, civil society, government officials, donors, political parties and others have identified the ideas and priorities in our plan,” said David Wood, the head of DFID Nepal, addressing a press conference following the release of report.

DFID’s Country Assistance Plan indicates where Nepal’s friendly countries want to provide their support. “With approximately 85 percent of the total population living in rural areas, poverty is largely a rural phenomenon in Nepal – a rural poverty incidence of 44 percent compared to about 23 percent in urban areas. Of the country’s ecological regions, poverty in the mountains, at about 55 percent, is significantly above the national average, as it is in the more remote mid-and far-western districts where poverty is as high has 70 percent,” writes The World Bank’s Nepal Country Assistance Strategy 2004-2007.

“In response to the very uncertain environment in Nepal, we have designed our program to be flexible and able to respond quickly to opportunities that might arise unexpectedly or close quickly,” said Wood.

The program is focused on key areas addressing the immediate underlying causes of the conflict and is expected to help bring about social justice to marginalized communities and positive changes in Nepal at the time when the country is probably going through the most critical period in its history.

Interruption of Development

Harms the Poor

Parties in the street : Dominant politics

Donor countries have already expressed their commitment that they will continue to support Nepal’s development efforts as long as there is room to carry out programs. Any interruption of aid flow will hamper Nepal’s over 40 percent population living in rural areas with an income of less than 1 dollar a day. This seems to be major reasons donors have given green signal to continue the NDF Meeting. “It is irresponsible of major agitating political parties to urge for the postponement of the meeting,” said former auditor general Bishnu Bahadur K.C. “Whoever rules the country, Nepal’s large number of poor population will always require the support of Nepal’s foreign donors.”

There are more than a dozen countries and bilateral agencies currently supporting Nepal by providing equivalent to around half a billion dollar a year to launch various poverty alleviation programs.

According to the World Bank’s Country Assistance Strategy Progress Report 2003, Department of International Development DFID (UK), Japan, USAID, EU, Norway, Germany, China, India, Switzerland and many INGOs are supporting in the areas of health and family planning. Likewise, the UN agencies like WHO, WFP, FAO, UNICEF, UNFPA and UNDP have been supporting to provide essential health/family planning services and safe drinking water supply through community based organization. They are also supporting to improve peripheral health facilities like primary health centers, health posts, sub-health posts and district hospitals.

In the education sector Asian Development Bank, UNICEF, NORAD, the UK, Denmark and Japan are supporting to achieve the target of universal primary education.

In rural development, ADB, FAO, USAID, Japan, IFAD, OPEC Fund, Kuwait Fund, Sweden, Germany, Switzerland, Australia, Denmark, Finland, Saudi Fund and other INGOs are offering support towards increasing agricultural productivity/yields and on/off farm employment to reduce poverty while ensuring sustainable management of natural resources.

In infrastructure sector, ADB, the UK, Sweden, Japan, India, China and Germany are supporting to improve road maintenance and rehabilitation. They are also investing in new infrastructures including low-cost labor-based roads.

ADB, HELVETAS, DFID, Water Aid, WHO, UNICEF, Red Cross are supporting in rural water supply to provide the drinking water to rural population. Likewise IMF, Denmark, Finland, Canada are also supporting in different areas. Along with them, there are numbers of INGOs like CARE Nepal, United Mission to Nepal, Action Aid, Save the Children Fund (Norway) and Save the Children Fund (USA) and others who are working in Nepal in various projects.

Challenges Ahead

Dr. Sharma : Pushing the development agenda

Many factors like limited natural resources endowment, land-locked-ness, rugged terrain and political instability have contributed to the poverty problem. Nepal’s poverty alleviation programs suffer because of political instability. In the last one and a half years alone, the country has seen two different governments.

In the last five decades or so, the political instability continued creating hurdles in the path of the overall development. In the last 14 years, following the restoration of democracy, the country has seen dozens of governments. But whether they were majority, minority or royal government, they all had to pass through the unstable situation. The continuous political instability has severely obstructed Nepal’s overall development programs.

Although Nepal has made some significant improvement in the past in some areas, majority of rural population are yet to see any significant transformation in their day-to-day lives. Infant mortality and maternal mortality is still higher and access to public health and education is yet to improve. The economic growth achieved in the non-agriculture sector does not make any differences to their lives.

NDF’s Agenda

Prepared with the active participation of all political parties and different stake holders including civil society members, local representatives, media and others, the NDF meeting will endorse strategies in many areas including education, poverty alleviation, financial sector reforms, trade and commerce, rural development, health, rural infrastructure, drinking water and sanitation, decentralization and service delivery, social mobilization and gender mainstreaming.

“There is no sense in the debate about postponing the NDF meet on political grounds. This meeting is aimed at poor Nepalese and it must continue,” said Bishnu Bahadur K.C. former Auditor General. “NDF is not for political agenda but for development debates. If we postpone as per the suggestion of five parties, next time other five parties will put similar demand.”

“At a time when Nepal’s friendly countries have shown serious concern towards difficulties faced by Nepalese people, a section of intellectual and political leaders seem to have forgotten their primary responsibility.”

The NDF final meeting, which will conclude on Thursday, will endorse 16 different papers prepared during the pre-consultation meeting held from March 31 to 14 April.

Concerned ministries presented their papers in various themes including financial sector reforms, education, private sector development, trade and commerce, hydropower and rural electrification. The papers included human rights, agriculture and irrigation, social mobilization and gender, governance reform and corruption control, health, rural development, rural infrastructure, drinking water and sanitation, decentralization and service delivery, PRSP, working in conflict situation, reform agenda and donor harmonization.

Donors Commitment

Nepal’s donor partners know how were the performances of the accountable governments in the past. The report by the Auditor General in the last ten years speak volumes on what had gone wrong with the development process.

“The monarch and the political parties must understand that Nepal’s donor countries are here to support a large segment of the population living below the poverty line. We will provide money through credible channels to the needy ones,” said a senior western diplomat on condition of anonymity. “The people living in the remote parts of the country are suffering from political instability and conflict. We want to support them.”

From public health to education and forestry management to agriculture development, the donors are lending their support to Nepal. Thanks to their support, Nepal has made certain achievements in different areas. Despite persistent insurgency and political conflict, the development agencies are making every effort to support the programs directed at the rural poor. “The life in the rural parts of the country is still rolling thanks to the continuous support of Nepal’s friendly countries,” said a senior official at the National Planning Commission (NPC), rejecting rumors of divided opinion among the donors. “In fact, this is for the first time when we can see all the donors coming to support the agenda of poverty alleviation with one voice.”

The World Bank’s strategy report shows that Nepal’s current position is dismal. Despite Nepal’s effort to enroll all children in primary education by 2015, reduction of the proportion of people whose income is less than US$1 a day, reduction of infant mortality ratio by two thirds between 1990 and 2015 and reduction of maternal mortality ratio by three quarters between 1990 and 2015, no tangible changes are seen till now.

Nepal’s 40 percent population live on less than US$ 1 a day. The enrolment of primary aged children rose in the 1990s but the conflict in rural hinterland and frequent strikes in urban areas continue to undo the success.

Parties’ Stand

Laborers : Miserable standard of living

Just after the completion of the first round of consultative meetings, five agitating political parties requested donors to postpone the NDF meeting claiming that the current government was not accountable. Former finance minister Dr. Ram Sharan Mahat, who is one of initiators of the concept to hold NDF meeting in Nepal, issued his public statement requesting putting it off. “In fact, this is a wrong time to hold the NDF. In view of the escalating political problem day by day, and further uncertainty it would be worthwhile to postpone the meet,” said Dr. Mahat (see Spotlight April 30 –May 6 2004). Former secretary Dr. Bhola Nath Chalise, too, demands similar thing questioning the accountability of the government.

Even Nepal’s some leading newspapers published the news creating confusion leaking rumors claiming that the World Bank officials were reluctant to participate in the meet.

As soon as the Nepal Office of the World Bank issued its statement saying it would like to set the record straight with regard to a number of misleading news reports about the role of the Bank in the upcoming Nepal Development Forum, May 5-6, 2004, the controversy was finally over.

“A number of recent reports have cited various reasons to claim that the World Bank is "stepping down" from its traditional role as co-chair of the Forum. These reports are baseless and unfounded. We wish to clarify that it was agreed between His Majesty's Government of Nepal and Nepal's external development partners at the conclusion of the last Nepal Development Forum in February 2002 that the next one would be chaired entirely by His Majesty's Government in the spirit of Nepal taking full leadership of its development agenda. There are no other reasons, as far as the World Bank is concerned,” the bank stated.

“The response from donor communities regarding the NDF meeting shows that they seem to be more concerned about the plight of the common people than certain political interests,” said a senior government official. The taxpayers’ money of donor countries are directed at the common people and cannot be spent in the interest of particular political parties or government.”

Following the final decision of the donors, the government found itself in a favorable position. “The NDF meeting is directed not at the programs of political parties. Whoever may be in the government, the money committed by Nepal’s development partners will be spent in the area where it is required,” said finance minister Dr. Prakash Chandra Lohani. “Holding of the meeting is a victory to all Nepalese rather than a particular government since we are only presenting papers that have been debated by all major parties,” said Dr. Lohani, in an interview with the Nepal Television.

Despite his differences over the holding of the meeting, former finance minister Dr. Ram Sharan Mahat has chaired its preparatory meeting. “I chaired two of the pre-consultation meetings. Basically, this NDF is trying to give continuation to our past policies and reform agenda,” said Dr. Mahat

Support With Conditions

Elderly people at a health post : Inadequate access to service

Unlike in the previous decades, foreign aid is coming with strings attached. If a concerned government does not abide by the conditions laid down by development partners, it will be withdrawn. As most of the funds are spent through the active participation of local communities, there requires a mechanism to invite the people’s participation.

Through the process of decentralization and demand for constitution of local bodies, the donors are pressing the government to create the accountable and responsible body to carry out development activities.

“I don’t think money is coming without any conditions. Since Nepal’s reliance on the foreign aid is growing, the government, whether elected or royal, have to spent the money as per their wish,” said an economist. “The last government tabled the anti-corruption bill as part of its commitment for the good governance.”

Impacts of Insurgency

Nepal is going through a very critical period. The Maoist conflict has worsened the situation in rural areas and lives of millions of people. According to the World Bank report, the insurgency has increasingly challenged the fragile economy – the costs have been estimated at 8 to 10 percent of GDP, including damage to infrastructure – e.g. over 1/3 of the 3,900 Village Development Committee (VDC) buildings have been destroyed; lost economic activity due to bandhs – i.e., strikes that have been taking place with greater frequency and often lasting 2 to 3 days; and a generally low level of economic activity caused by decreased business confidence and low tourism.

Furthermore, the report adds that there have been large direct impacts on livelihoods of millions of primary rural-based individuals, for which killing, extortion, confiscation, forced recruitment, and infrastructure destruction have created fear and resulted in migration, decreased agricultural production, and a decline in living standards- it is estimated that approximately 300,000 people have migrated to the Kathmandu valley in recent years.

Amid this gloomy scenario, Nepal’s donors seem to have taken the development agenda as their main priority rather than political ideologies. Whoever may win or lose in the political battle, it is the interest of millions of poor and needy people that the NDF meeting needs to be mindful of.