My concern is the current atmosphere of distrust and negativism

Ralph Frank, U.S. Ambassador, Kathmandu

Good evening and thank you for joining us as we gather to celebrate 50 years of commitment and development between the United States and Nepal. We'll have the opportunity this evening to view a wonderful photo exhibit -- a retrospective of our relationship and our achievements over the past five decades. I am pleased that Their Majesties, the King and Queen, will be joining us shortly as well to view the exhibit.

On January 23, 1951, the United States and Nepal signed an agreement that began a fifty-year relationship of trust, mutual respect, and commitment to the people of Nepal. With that signing, the United States became the first bilateral donor to Nepal.

Also at that time, travel in Nepal was still almost exclusively by foot as only 376 kilometers of rough vehicle tracks existed in the valley and the Terai. In fact, it is said that the first oxcart only reached Pokhara in 1953 - and that arrived by air. The first car arrived in Kathmandu carried in by porters from the Indian Border.

Electricity was virtually non-existent and food supplies were very limited.

In the entire country, there were only 321 primary schools, 11 secondary schools and one technical college. The illiteracy rate was 98%.

Health services of any kind were rare. Malaria was endemic with an estimated 25% of the population infected at any given time -- resulting in prime farmland in the Terai lying fallow. Many other communicable diseases also wreaked havoc, and life expectancy averaged 28 years.

In the last five decades, Nepal has built roads, hospitals, schools, and drinking water systems. The Nepalese people can expect to live twice as long as they could in 1951. They can also expect a better education. In 1951, there were only 300 college graduates in Nepal. Today, there are over 100,000 who attend university in Nepal alone. Literacy, especially among women, continues to grow.

Nepal has made the transition to democracy and pursued market reforms. Thousands of forest and water users groups are now managing the resources they depend on, and the income of many farm families has tripled through high value crop production.

One can note from my examples that Nepal has made incredible progress in a relatively short period of time, and the Unites States is proud to be a part of the efforts that have resulted in this dramatic progress. But as we all know, Nepal continues to face dramatic and substantial development challenges.

As you heard from Joanne Hale, the Director for the US Agency for International Development (USAID), bilateral programs have helped eliminate malaria from the Terai, double life expectancy, and improve literacy in Nepal.

I wish take just a moment to comment on what I regard as a cloud hanging over current development efforts, and to make an earnest and heartfelt plea for an improved national dialogue that will facilitate future efforts.

As perhaps you can guess, my concern is the current atmosphere of distrust and negativism that seems to be resulting in an increasing climate of violence in expressing political dissent. My plea is for political leaders and government officials to renew their commitment for good governance, and for all Nepali citizens to commit themselves to peaceful participation in the democratic political process.

Nepal is blessed with excellent human resources, with a beautiful country, with an exotic and diverse culture, and with a tremendous hydropower potential. Indeed, Nepal has within itself the tools to create a prosperous future for all Nepalis. And we and the rest of the donor community are anxious to continue our support towards this goal.

However, in the current environment, our efforts can only go so far. While I have not seen a comprehensive study, I would guess that the economic costs of bandhs each year are larger than my government's bilateral AID budget. And the economic costs of the anti-government insurgency is far greater. It's been found elsewhere in the developing world that countries succeed best in the development process when they have chosen elected, representational democracy as the form of government; when they have developed strong democratic institutions, including an independent judiciary and a free press; and when they have a vibrant opposition that is free to engage in peaceful, constructive, non-violent protest.

So the most fervent hope I have - during this 50th anniversary year of development cooperation between our two countries - is that it be a year of peace and goodwill so the benefits of American assistance can be extended to all of Nepal's citizens.

We look forward to continuing our enduring partnership with the people of Nepal, and support their efforts to achieve enduring economic and social progress.

And so, it is with great pleasure that I welcome you to this retrospective of our relationship and our achievements over the past five decades. I hope you enjoy it.

(Speech made by the author at USAID/NEPAL 50th anniversary celebration on January 30, 2001)

Nepal’s hydropower potential is second in the world only to Brazil

Joanne Hale - Director, United States Agency for International Development

It gives me great pleasure to welcome you this evening to acknowledge and celebrate the past 50 years of our partnership. Let’s walk together this evening through time via this photo exhibit. This walk of ours covers five decades of outstanding collaboration and memorable results. Yes, the road has had some potholes, some challenges, some difficult times; but it has been an immensely fruitful union of our energies and the results are dramatic.

Our walk first takes us to those initial projects in the 50s: malaria control and education. Successfully winning the battle against malaria in the Terai opened up this vast area, now home to half of Nepal’s population and more than 65 percent of its foodgrains. This once uninhabitable area has become the nation’s breadbasket.

In 1954, we worked together to establish the first literacy program and support primary and secondary schools and even the first distance learning program using radios.

The 50s saw efforts focussed on transportation and communication. Together we built hundreds of bridges, roads, airfields, telephone and radio networks, and a 45 km aerial cableway to transport goods from the Terai to Kathmandu, using local electricity rather than expensive imported diesel.

In the 60s and 70s investments included health and agriculture.

Less than 1/5 of the land base is arable ----that is fixed ---- cannot be altered -------so high yielding and high value crops were introduced and today are returning high incomes to farmers; this in turn has helped reduce migration to India, and reduce transmission of HIV/aids from seasonal migration, keeps more children in school and more families united.

A reduction in the number of women and children dying from inexcusable and easily prevented deaths (one pregnant or birthing Nepali woman dies every 2 hours; 23 rupee birthing kits, 1.5 rupee vitamin A capsules, and trained health volunteers save many such lives today).

26,000 Nepali children, who otherwise would have died, are alive today thanks to vitamin a capsules; today Nepal is held up to the world as a model in vitamin a programs.

Pneumonia, the leading cause of death for children, is dramatically reduced in villages today thanks to the efforts of many of the 36,000 female community health volunteers. No other country in Asia has placed antibiotics in the hands of semi-literate village volunteers. Nepal is on the cutting edge in this effort in Asia! More than 1,000 of these women went on to campaign and successfully win positions in local elections. Respect gained through saving lives led to respect for leadership qualities.

The 80s saw USAID investments in natural resource management. Private irrigation and community forestry user groups, with their democratically elected committees, manage their own valuable resources today. $20 million each year comes out of these community forests. Farmers use this money to pay for health and school fees. This innovative approach to resource management also saves the rich inheritance that is Nepal’s; its biodiversity which is also globally important.

Many communities have taken over their own irrigation systems that were once run by the government. These non-subsidized systems have nearly doubled the amount of food produced under irrigation. One of these systems is 10,000 ha (West Gandak) and is the largest irrigation system to be privatized in Asia. Nepal is leading Asia in this endeavor which increases rural incomes, national food supplies, women’s participation, and grass roots experiences in democracy.

Hundreds of farmers, now serving on the irrigation and forestry committees, have been voted to positions of authority unthinkable 10 years ago. Recognizing their leadership abilities for the first time, many are holding locally elected positions today in the village development committees, including that of chairmanship. Women have also found their voice on these committees and are actively using it.

More recent developments in our partnership have included investments in micro-finance, women empowerment, and hydropower. Yes, people were now living longer (59 years instead of 28 years) but what kind of life was it? A life where gender inequalities and lack of electricity compromise Nepal’s full potential?

2/3 of Nepali women still do not know how to read and write, thus sorely limiting their productivity as well as that of the nation’s. With the power to read, thousands of women have gone on to gain another new type of power: the power to save money for the first time in their lives which allows them to start businesses whose profits pay for better diets and create still more employment in villages.

Nepal’s hydropower potential is second in the world only to Brazil. Harnessing this power will provide electricity to start and expand businesses, to provide lights for students to study at night, to reduce cutting down more trees for cooking the next meal which endangers watershed areas and biodiversity, to save countless hours a day spent collecting firewood, to reduce respiratory diseases from smoke filled kitchens. In short Nepal’s biggest asset is her hydropower. We stand by you as partners to turn this asset into real money and real power for the vast majority of Nepalis.

Since 1951 we have walked hand in hand down this road of development together, seeking a better life for Nepal, respecting her rich inheritance and wonderful people, finding ways to get family planning services, immunizations, malaria control, vitamin A, antibiotics, fertilizers, seeds, electricity poles, literacy classes, and microfinance services into remote areas and to get its high value crops, services, and products out. It has not always been easy but together we have acknowledged the constraints and worked to find solutions to problems.

The road does not end here and now. It continues and it is with great pride that we continue down it with you. To find new areas, which will continue to enrich the lives of the average Nepali citizen, the person in the remote village that deserves to live with electricity and the benefits of education and health services.

(Speech made by the author at USAID/NEPAL 50th anniversary celebration on January 30, 2001)

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