Ten Years Of Democracy
People's Aspirations Largely Unfulfilled

By Our Correspondent

A decade has passed since the multi-party democracy was restored in Nepal. A large number of people had sacrificed their lives for the sake of democracy as it was expected to be instrumental for the overall development of the country. But have their expectations been fulfilled after democracy?

Both the people and the political parties have remained disenchanted with the progress and the achievement so far.

One of the major concerns of the people are the dwindling state of law and order situation, especially after the Maoist movement.

The people also complain the political leaders for being greedy for power and perks rather than working for the benefit of the country at large.

Similarly, people blame the politicians and the political praties for misusing their political rights.

Even the senior political leaders accept this and have realised that the people’s ambitions have not been fulfilled completely. They have also conceded that the degradation in political culture, morality and willpower among the political parties have impeded the development of the country.

Prime Minister and President of the Nepali Congress President Girija Prasad Koirala, who also had the largest stint in power, speaking at an interaction programme on ÒA decade of democracy, dearth, accomplishments and future aimsÓ in Kathmandu last week, said that due to the lack of specific action plans, significant breakthroughs have not been achieved after the restoration of democracy.

ÒUprooting the then Panchayat regime was the only target of the political parties. After restoration of democracy, the political parties started only to strengthen them,Ó Koirala said.

He said that with the restoration of the multi-party democracy in the country, the people’s ambitions have increased tremendously, but the political parties have largely failed to meet the people’s aspirations.

He, however, said things are not so gloomy. ÒThere have been important achievements made in the sectors like education, health, road and infrastructure development after democracy.Ó

Still, the achievements have been superseded by both intra and inter party quarrel, protests and more importantly instabilities in the government.

Tara Nath Ranabhat, the Speaker of the House of Representatives, expressed the view that the political parties have to seriously listen to the sad stories of poverty and dearth of the people.

Ranabhat further said that the political leaders have to be morally sound, honest, disciplined, responsible and transparent to lead the country to prosperity in future.

He, however, said that the positive aspect is that the country has gone through a lot of democratic exercises, which will ultimately help in strengthening democracy.

Madhav Kumar Nepal, leader of the main Opposition CPN (UML), felt the need to rectify all the mistakes and weaknesses emerged for the last one decade to fulfill the ambitions of the people.

Nepal warned that the ultra-leftists and ultra-rightist forces may endanger democracy.

Surya Bahadur Thapa, President of the Rashtriya Prajatantra Party and former Prime Minister, said that the political parties have to reach a national consensus to fight the Maoist war, corruption and other anomalies existing in the country.

Bamdev Gautam, General Secretary of the CPN (ML), said no significant change has been brought about in the living standard of the people after democracy.

Meanwhile, one of the biggest achievement in the last 10 years is that people's faith in democracy has strengthened. The country has seen three general elections with enthusiastic participation of the people. There have also been encouraging changes in economic, social, education and health sectors.

The political parties have also pledged their unwavering faith on the multi-party democracy. This is evident in that the political parties of all colours have vehemently opposed the Maoists' movement against the present constitution. Besides, they have also realised their failures and shortcomings and they all are stressing on value-based politics. Now, what is needed is to put those realisations into practice.

Robin Cook To Visit Nepal

By Our Correspondent

Robin Cook, the British Foreign Secretary will visit Nepal from April 20-22. This will be the first visit of the incumbent British Foreign Secretary to Nepal.

During his visit Cook will open the office of the Nepal-Britain Chamber of Commerce and Industry established within the premises of the British Embassy at Lainchour, Kathmandu.

According to Andrew Mitchell, the Deputy Head of Mission in the British Embassy in Kathmandu, Cook's visit help establish new dynamic partnership in economic cooperateion between Britain and Nepal.

Besides, he said, the other themes of Cook's visit was to uplift democracy and share views on peace and human rights.

Mitchell was speaking at a press conference organised by the organiser of the Himalayan Expo, the House of Rajkarnicar.

Recently, the trade relations between Nepal and Bhutan are on the rise.

The British Wool Marketing Board is especially interested in promoting British wool for Nepalese woollen carpets.

UML Organises Mass Meeting

By Our Correspondent

The Communist Party of Nepal- United Marxist Lenninist organised concluded its third phase protest programme with a massive rally at Tundikhel.

The UML has coincided their programme with the 10th anniversary of the Popular Movement.

The UML has brought thousands of supporters from different part of the country as a show of strength.

Speaking to the rally, UML's General Secretary Madhav Kumar Nepal announced the movement against corruption, financial irregularities. He also said if the government fails to take action against the corrupt ones, the people themselves will initiate actions against them.

He also accused the Nepali Congress of failing to maintain law and order, check price rise and promoting corruption and irregularities.

He also said the UML will take the lead to further the sentiment of the popular movement of 1990.

Other leaders of the UML, K.P. Oli, Pradeep Nepal and Bidhya Bhandari also addressed the mass meeting..

At the mass meeting, UML's Pradeep Nepal announced the names of corrupt ones, which included leaders of different political parties, businesspersons and others.

The UML also said it has received 2788 cases of corruption during the last 10 years. Of them, it said, 1488 cases have concrete proof, and the party is investigating upon the remaining 1300 cases.

The UML has also said it has found 321 persons involved in irregularities in revenue, 130 involved in smuggling and 350 persons indicted by the Commission for the Investigation of the Abuse of Authority (CIAA).

It also said it has found 56 persons involved in land-related cases. The UML has also said it will gradually make public other names.

However, the list of the corrupt ones does not include any name from the UML. This is seen by political observers as UML's 'holier-than-thou' attitude.

They say no government in the last ten years, including the 9-month long UML's minority government, has been free from accusations of corruption.

Workshop Suggests Reduction Of Ministries to 17

By Our Correspondent

The government on Friday organised a one-day workshop on Action Plan for Civil Service Reforms jointly with the Asian Development Bank (ADB) and Janet Consultant PTE LTD to review and analyse the report of the Administrative Reforms Commission-1992 and help the government implement the provisions made by the commission.

The objective of the workshop was also to enhance policy development and service delivery by reforming the organisation and management of the civil service.

Proposed actions under the reform programme include reorganisation of the government ministeries, strengthening of the constitutional bodies and legislative reform to improve transparency and accountability of the civil service.

If the changes are made by approving the proposal in the structure of central government, there will be only 17 ministries out of the existing 26.

The proposal has suggested the government to merge some ministries with similar functions and responsibilities, and to abolish some others.

The workshop also highlighted on the initiatives that included conducting a civil service census, establishing a computerised personal database, undertaking a functional review of ministeries and consideration of a range of alternatives for decentralisation.

Speaking at the occasion Richard Vokes, resident representative of the Asian Development Bank said that the core problem of the civil service was not its size but rather its very wide mandate and its organisation.

ÒThe civil service can not fulfil its mandate because of limited staff, limited budget and the lack of specialised training.Ó

Describing the absence of merit-based career progression among the employees, absence of a credible performance monitoring and feedback system, the absence of clear job descriptions and individual responsibility, lack of accountability, increasing political interference and patronage as the reasons contributing to the low morale of the civil employees he said that increasing pay and introducing performance related salaries would help change their attitude.

ÒThe government is working hard in rearranging ministerial structure and its functioning. Similarly, reform in the existing civil service is one of the priorities of the present government,Ó Deputy Prime Minister and Minister for Local Development Ram Chandra Poudel said while inaugurating a one-day workshop.

Best Exporters Of The Year

By Our Correspondent

For Chandi Raj Dhakal, it is a matter of pride that his Momento Apparels bagged the Export Award for the second straight year. As a recognition of the exporters, Prime Minister Girija Prasad Koirala distributed the Export Award at a function organised to observe the Export Promotion Meeting 2000 last Wednesday. Since last year, His Majesty’s Government has started giving export awards to the best exporters.

Momento Apparels was given the award for being the highest foreign currency earner through export of ready-made garments. According to the Ministry of Commerce, the Momento Apparels had exported ready-made garments worth US$ 9,061,322 in the fiscal year1998/99.

Similarly, Paramount Carpet was given Export Award for the export of hand knotted woolen carpet worth US $ 5,528,227.

Others receiving Export Award include Triveni Dal And Oil Industries Pvt. Ltd. for agriculture products, Narayani Leather Manufacturing Industries for the export of processed leather, Asiatic Traders and Exporters for export of handicrafts except carpet and silver jewellery, New Himalayan Akash Exporters for export of silvery jewellery and Dabur Nepal Pvt. Ltd. for the highest export to India.

The Triveni had exported lentils worth US$ 3,898,784. The Narayani Leather Manufacturing Industries had exported processed leather worth US$ 2,628,981 to overseas countries. Similarly, Asiatic had exported handicrafts worth US$ 982,241. The New Himalayan had exported silver jewellery worth US$ 677,634 and Dabur had exported goods worth Rs. 1.195 billion to India.

Export Sector Looks For New Strategy

By Krishna Shrestha

ÒThe country’s export status is not satisfactory and the country needs export strategy for the sustainable growth of the export to achieve the ultimate goal of reducing widening gap of trade deficit.Ó

This was what Nepalese industrialists and exporters opined at a programme on ÒDeveloping Nepal’s Export StrategyÓ being organised by Nepal-USA Chamber of Commerce and Industry last week.

Prithvi Raj Ligal, Vice Chairman of the National Planning Commission, who was the chief guest at the programme, also warned that the country may suffer crisis at any day if the country’s export sector depends on only two countries and two products. ÒSo, an overall strategy is needed. We need a strategy based on nation, area and product,Ó said Vice Chairman Ligal.

Nepalese trade deficit has been widening every year (see chart). Though Nepal has achieved some success in the field of product and market diversification through various measures taken in the past, the bulk of overseas export still depends upon two product and two countries.

During this period, Nepal introduced various measures including exporters’ exchange entitlement scheme in 1961, establishment of the Trade Promotion Centre with the objective of promoting the expansion and diversification of exports as well as to encourage the growth of the country’s capacity and explore potentiality of the country in 1971, dual foreign exchange rate system in 1977, special economic programme in the fiscal year 1981/82 with 10 per cent cash subsidy on the FOB price of the exported goods.

Other measures taken include establishment of Export Promotion Council under the chairmanship of Prime Minister, giving the export business a facility of keeping up to 15 per cent of the foreign currency earnings from the exports in order to import raw materials exchange, auxiliary materials and capital goods required for some industry, imposition of excessive restrictions on import for reducing trade deficit etc.

Presently, incentives given to exporters include tax-free on export earning, concession on duty, pre-export concession loan, foreign exchange facility for establishing operations abroad to the exporters earning more than US$ three million etc.

But, despite all these measures, Nepal’s export scenario has failed to brightened up. A large volume of the Nepalese export exclusively lies on two products — ready-made garments and hand knotted woolen carpets. Germany is the biggest market for carpets and America for ready-made garments.

Talking to Sunday Despatch, Narendra K. Basnet, President of the Nepal-US Chamber of Commerce and Industry said the programme was organised keeping an eye on the new commercial policy the country is formulating. He opines that the country needs an aggressive export strategy if the country really wants to gain from present context of globalisation and liberalisation.

President Basnet also feels that big challenges lie ahead as the country has been seeking the membership of the World Trade Organisation. At the same time, it is also moving towards South Asia Free Trade Area.

Padma Jyoti, industrialist and former president of the Federation of Nepalese Chamber of Commerce and Industry also says, ÒWe have to think carefully what steps to take and how to allocate our very limited resources.Ó In other words, he said, we ought to have an export strategy to guide our efforts in future.

ÒThis strategy has to encompass all factors relevant to reducing cost of export transaction, reinforcing forward and backward linkages, moving up to higher value adding production, newer technologies, newer export-oriented competency.Ó

ÒExport or, for that matter, trade is no longer an isolated subject,Ó says Padma Jyoti, ÒNational export strategy must be integrated into an overall economic planning framework. To be really successful in the new world we have to improve through reform all sectors of our economy in harmony.Ó

However, presenting private sector’s perception ÒPrivate Sector Perspective on Export – the need for changeÓ, Suraj Vaidya, industrial and Executive Member of the Nepal-USA Chamber of Commerce and Industry made a big question on sustainability of garment and carpet in coming years. It is because the quota system will be abolished by 2005 AD and in case of carpet, it completely depends upon imported raw materials.

According to hurdles being faced by Nepalese export sector includes land-lockedness of country, lacking on national vision on export, random changes in policy, lack information, infrastructure and institutional support, limited access to technology and limited number of product.

Vaidya, who feels that export will pick up if the domestic market becomes strong, says the country needs a long-term export policy keeping view with World Trade Organisation and competing countries. He suggests that the national policy should be developed within next six months.

Making private sector associations professional and strengthening them is another important factor to respond the changes, says Baidya. Accordingly, he feels, private sector must take lead to define its future; service tax generated from the industries must be governed by concerned associations; association should be made professional; data banks should be created; and productivity and human resource development must be carried out by private sectors.

Developing institutional support and developing new exportable products are other important factors to respond the changes, says Vaidya.

Vaidya suggests that there should be one central body with strong representation of private sector; export offices in principal importing countries should be opened; training should be given focusing needs of the private sector; and special economic zones should be created.

Concerning the new exportable products Vaidya says, ÒNepal missed the industrial revolution, is it possible to ride the tide of the information revolution?Ó

Nepalese export sector has been facing various challenges including political stability, implementation of policies, negotiation in World Trade Organisation, private sector led economy, and change in mind set, says Vaidya.

However, Bijendra Man Shakya, university teacher and journalists say the private sector lacks export entrepreneurship.

Pushkar Shakya, exporter, feels that one of the major hurdles faced by the exporters is lacking of implementation of policies.

Chandi P. Shrestha, Joint Secretary in the Ministry of Commerce, agrees that there are some bitter realities in the Nepalese trade sector. The bitter realities include the two products, two country, narrow product base, limited international linkage, rugged terrain and isolated location of the country, not only land-locked but single country locked also, lack of holistic approach and more politicised rather than commercialised and business-oriented society.

Shrestha revealed that the Export Promotion Board has completed a study on long-term export promotion strategy.

However, Ms. Yolinda Gibbs of the International Trade Centre, Geneva, suggests that export or international culture should be created for export promotion. She further suggests that supply capacity should be developed; emphasis should be given on international competitive standard; support to small and medium enterprises sector should be highlighted and trade development strategy should be integrated with national economic development.

Meanwhile, speaking in Export Promotion Meeting 2000 organised in Kathmandu last week, Minister for Commerce Ram Krishna Tamrakar said, ÒNepal is in the process of accession to the World Trade Organisation. The government has started modifying its policies and regulations to be in line with WTO requirements.Ó

The meeting was basically organised to promote export, foreign investment and tourism.

India Denies It Wants Its Commandos At TIA

By Our Correspondent

Although the Joint-Secretary level talks held in Kathmandu last week between Nepal and India failed to resume the Indian Airlines flight to Kathmandu, there are positive indications about the re-starting the flights.

According to Manoj Kumar Bharati, First Secretary at the Indian Embassy, Indian Airlines has urged the Civil Aviation Authority of Nepal (CAAN) to step up additional security measures as per the standard fixed by the International Civil Aviation Organisation (ICAO).

Bharati also said that India was also prepared to provide facilities such as secondary check and frisking of the passengers of the Royal Nepal Airlines Corporation (RNAC) and any other Nepalese airlines operating flights to India if they want to have such arrangemetns.

He said that such security measures would have nothing to do with the sovereignty of Nepal. He claimed that such measures had already been made available to many international airlines at the Indian airports.

However, Haribhakta Shrestha, joint secretary at the Ministry of Tourism and Civil Aviation, has also rejected report that the Indian side had asked for the stoppage of the Pakistan Airlines flight to Kathmandu as a condition for the resumption of the IA flights.

He also denied that India wants their security personnel on the ground of the TIA. They only wanted to have security check before the passengers board the aircraft under the norms of the ICAO.

Meanwhile, the Indian Embassy on Friday, at an informal meet with the press said India only wanted some additional security measures at the TIA for the resumption of the flights.

They include the installation and operation of X-ray machines to screen the check-in baggages by the concerned airlines itself and ladder point checking of passengers.

A press statement of the Indian Embassy also said similar facilities are being provided at the Indian airports to several foreign airlines, and that the same facility would be made available at the Indian airports to Royal Nepal Airlines Corporation or any other airlines designated by the Nepalese government. It also denied that India wants to have its security commandos or security personnel at the TIA.

Nepalese Women Team Sets Off For Everest

By Our Correspondent

The five-member Nepalese Women's Millennium Everest Expedition 2000 left for Lukla yesterday (Saturday) to start their expedition to the highest peak. Their success will set a new record of an all women expedition from Nepal setting foot on the world's tallest peak for the first time.

Their Majesties the King and the Queen granted audience to all the members of the team on Friday.

Prime Minister Girija Prasad Koirala saw them off by handing over a national flag to it on Saturday morning.

The team, consisting team leader Lakpa Sherpa, deputy team leader Mingma Yangji Sherpa and members Dawa Yangji Sherpa, Dolma Sherpa and Kesang Dikki Sherpa will reach the Everest Base Camp via Namche, Khumjung, Tengboche, Pheriche and Lobuche. They plan to start their expedition from the Base Camp from April 14.

The Sherpa women plan to reach the top of Mt. Everest by the middle of next month. All of them have received training in mountaineering and have been working in the fields of trekking and mountaineering for several years.

Out of five, three — Mingma Yangji Sherpa, Dawa Yangji Sherpa and Kasang Dikki—have received high altitude and mountaineering training from Austria. Lakpa Sherpa and Dolma Sherpa have undergone mountaineering training run by Nepal Mountaineering Association (NMA).

The women members had climbed the Kyanjin and Charku peaks in the Langtang area in March this year. They had also taken ice climbing and rock-climbing training there. Experienced instructor Ang Mingma Sherpa taught them the technical aspects of mountaineering in the Langtang area.

Four male Sherpas—Mingma Dorje Sherpa, Ang Mingma Sherpa, Phurba Sherpa and Ang Pasang Sherpa— will guide the women mountaineers. Ang Mingma Sherpa has already climbed Mt. Everest for two times.

The main organizer of the expedition is Sushma Koirala Memorial Trust.

Speaking at a function on Friday, Minister for Tourism and Civil Aviation Tarini Dutta Chataut said tourism as tourism is the backbone of the country’s economy, the success of the women climbers would help further promote Nepal as an adventure tourist destination in the world.

Ang Tshering Sherpa, Vice-Chairman of Nepalese Women’s Millennium Everest Expedition-2000 Organising Committee, said that Nepalese women can also play equal roles as their male counterparts. Sherpa also promised that his company is ready to provide necessary assistance to the women’s team.

Similarly, Sujata Koirala, chairperson of the Sushma Koirala Memorial Trust and the main organiser of the expedition, opined that the scaling of Mt. Everest by the women team would create confidence and encouragement among the Neaplese women.

Pushpa Thapaliya, treasurer of the committee, said around Rs. 2.5 million has been raised from different personalities and institutions so far. He said that an estinated Rs. 6.5 million will be spent for the expedition team.