National 5 (Spotlight Weekly)

SUSPENSION OF SUPPORT
Temporary Action

A couple of donors have temporarily suspended their assistance in western Nepal citing insecurity

By KESHAB POUDEL

With the announcement by Nepal’s three major donor agencies - Germany’s Technical Cooperation (GTZ), Department of International Development (DFID) and Netherlands’ Development Organization (SNV-Nepal) – to temporarily suspend their development activities in five districts of far-western region, more than 55,000 poor Nepalese living in the conflict-hit zones stand to get directly affected.

Poor villagers : Needy ones

The decision will hamper infrastructures development activities like the rural roads, drinking water, irrigation schemes – which are directed to give employment to poor population. According to a joint statement issued by ten major donor agencies, these programs will BE suspended beginning May 16,2004.

Expressing solidarity with the three agencies, seven other donor agencies including the Swiss Development Corporation, Canadian International Development Agency, Denis Development Assistance, European Union, Japanese International Cooperation Agency (JICA), Norwegian Agency, and Finish agency which have been launching different programs in the region – have called the Maoists to withdraw the extortion demands and stop issuing threats against all development organizations in Nepal.

“Over the past few weeks, some Maoists in Nepalgunj and Dhanghadi have made serious demands and threats against a number of development agencies which are inconsistent with our basic operating guidelines. They have put bombs in the offices of NGOs, and threatened staff and properties,” said a joint press statement issued by them. “As a result of these actions, and our inability to ensure the safety of staff, SNV, DFID and GTZ are forced to suspend all support to the Rural Community Infrastructure Work Program in Humla, Mugu, Jumla and Dolpa (districts of mid-western region) ”

According to an estimate, SNV’s program will affect 25,000 people who have been benefiting from their activities. “We are compelled to suspend all our activities in those districts. This is just for the time being. We will restart our programs once we are convinced of security to our staff and that they can operate in a safe environment as per the guidelines,” said Jan de Witte, director SNV-Nepal.

The suspension of DFID and GTZ’s Freed Kamaiya Food Security Program – a program aimed to provide relief to freed bonded laborers in Kalilai, 450 miles south west of capital - will affect 30,000 people.

In response to the increasing pressures of Maoist on development programs and workers, donor agencies issued their Basic Operating Guidelines in October 2003 setting out the principles for their engagement in Nepal. “We have made it particularly clear that we will work under the guidelines,” said a senior official at DFID.

The decision of SNV, DFID and GTZ will affect the activities carried out by the World Food Program (WFP) as well. “In the absence of the required technical assistance provided by the agencies, WFP will have to suspend its support to the Rural Community Infrastructure Programs in those districts,” said WFP office in Kathmandu.

The announcement came just a day after the conclusion of Nepal Development Forum (NDF) meet last week. During the NDF meet, the donors agreed to assist in the annual estimated US$ 560 million budget with the government of Nepal to launch development activities.

Far and mid western region of the country have the largest number of population living below the poverty line compared to other regions including the Kathmandu valley. With the national average of 40 percent population living below the poverty line, these four districts have the highest concentration of poverty. According to a study of National Planning Commission, 72 percent of population living in the hills and mountains are below the poverty line in far western region -highest among Nepal's five geographical zones.

“Since there are many other programs still supported by the UN agencies apart from DFID, GTZ and other INGOs, the decision will not have large scale impacts but this is indeed significant,” said an executive director of an INGO on condition of anonymity.

Just when the initial conditions for the poverty alleviation implementation were moving in positive direction, this decision has come as a shocking one. “Despite fiscal crisis and political instability and intensification of conflict, considerable progress has been made meeting all the targets showing signs of declining poverty in some areas,” said Dr. Shanker Sharma, vice chairman of the National Planning Commission (NPC). “Because of higher per capita GDP growth averaging 4.0 percent, 3.7 percent average growth in agriculture and 30 percent growth in remittance in the last few years, the poverty reduction programs have shown signs of success.”

The Maoist intensified their activities by bombing a branch office of Lutheran World Service - an INGO – as well as in other NGOs office in Kailali district.

“This is not a complete pull out but a symbolic gesture,” said Dr. Arjun Karki, president of Federation of Nepalese Non-governmental Organization. “It will have insignificant impacts affecting the activities launched by District Development Committees.”