Economic Scenario

THE overall economic scenario of the country seems to be in the right direction despite some negative trends in certain areas. According to an analysis report of the Nepal Rastra Bank, the central bank of Nepal, the balance of payment in the first nine months of the current fiscal year posted a surplus of 10.79 billion rupees. It is mainly due to increased inflow of remittances from Nepalese working abroad. This is a positive trend as Nepal now has a comfortable situation as far as foreign currency reserves and balance of payment are concerned, which was rare in the past. The adequate reserve in foreign currency has led to an appreciation of the rupee against some major foreign currencies. But remittance alone does not help consolidate the economy and balance of payment in the long run. The main engine for a sound foreign currency reserve, balance of payment and overall economic development is the export sector. However, the export sector does not appear to be in a healthy condition. The central bank's report states that the export sector has witnessed a continued downward slide. Exports in the first nine months of the current fiscal year saw a decline by 2.9 per cent.

This is by no means a positive symptom. But the other sectors have shown mixed results. The economy of the country had badly suffered due to the decade-long insurgency and conflict. But the situation changed, and economic activities started picking up after the success of Jana Andolan II that restored democracy and also paved the way for the peace process. The situation became more encouraging after a cease-fire between the government and the Maoists was announced and a national comprehensive peace treaty was signed. However, strikes and protests programmes continued at the call of different trade unions, political and ethnic groups. The agitation in the Terai has been long and has hit the economy and other sectors hard. The decline in exports is also mainly because of the frequent strikes in the Terai areas. However, the overall economic indicators have shown positive signs. The GDP growth rate is expected to do better. Past experience has shown that peace is the main requisite for economic and social development. Now the political process is underway to make the peace process a success and ensure state restructuring, which is expected to give a further boost to the economy. The national economy should be the concern of all the political parties irrespective of their ideology. Thus, there must be equal efforts from all sectors to expedite the economic activities and development. The national economy should not be a victim of personal and partisan interest. The ongoing peace process must be successful for sustainable economic development as well. We must understand that our prosperity is ensured only when the national economy booms and flourishes.

Source: The Rising Nepal, June 13, 2007

Security For CA polls

Prime Minister Girija Prasad Koirala has acquired information from the security apparatus responsible for maintaining law and order in the country. On Monday, the prime minister discussed with defense officials about the security arrangements to be made for conducting the polls to the constituent assembly in addition to taking stock of the prevailing situation in the country. As reported, the prime minister inquired how the demand by the Maoists to translocate the army camp from a VDC in Kapilvastu district could be addressed. It is to be noted that the Maoists have demanded the relocation of the army camp put up at Birpur VDC as, according to it, the camp was allegedly set up to conduct offensive operations against the progressive forces during the royal regime. The Maoists had called a strike in the district last week in which private vehicles and load carriers were vandalised. This issue was taken up when Maoist leader Prachanda met with the prime minister recently, and the latter had pledged to look into the matter after holding consultations with the agency concerned.

Since Prime Minister Koirala is committed to holding the polls to the constituent assembly, it is in the fitness of things that he is holding consultations with the agencies and actors concerned over how the democratic exercise could be effectively hosted without any let up or hindrance. As called by the prime minister, no political forces can afford to be swayed by passion without coming to terms with the evolving situation in the country. The determination of the prime minister to conduct the polls for the constituent assembly should be understood properly so that the journey to peace and democracy is not circumvented at any rate. The political parties, including the Maoists, should resonate with the views of the prime minister and conduct themselves accordingly. As some issues may be controversial, it is necessary that the parties take more time to discuss and settle them properly. The party leaders should be engaged in frequent meetings and interactions in an attempt to reach a consensus on some of the outstanding subjects. The future of Nepal lies in peace and political stability, and the international community is keen to see that the conflict in Nepal is fully resolved. The relevant actors must, therefore, keep their stakes open for permanent peace and democracy.

Source: The Rising Nepal, June 13, 2007

Parliament can now abolish monarchy

Ananta Raj Luitel

King can be removed if he conspires against the Constituent Assembly polls and assumes ‘executive powers’

For the first time in the history of Nepal, the Parliament today adopted a provision in the Constitution that will allow the House to abolish the monarchy if the King is found to be conspiring against the Constituent Assembly elections.Inserting the provision in Article 159 of the Interim Constitution of Nepal 2007, the House passed the second amendment bill of the Interim Constitution by two-thirds majority. A total of 281 members of the 329 seats of parliament had cast their votes favouring the amendment while only two members cast their votes against the bill. Jana Morcha Nepal’s MPs Pari Thapa and Nava Raj Subedi cast their votes against the amendment. The bill came into force immediately after Speaker Subas Nembang announced the amendment at 10.30 PM and authenticated the Bill.

Though Prime Minister Girija Prasad Koirala was not present in the House, he has taken the amendment as a historic move contributing to the “strengthening of loktantra and the way of holding Constituent Assembly elections.” Home Minister Krishna Prasad Sitaula read out the PM’s letter to the House.Earlier, the parliamentary special committee passed the Interim Constitution second amendment bill after slightly changing the bill introduced by the government some few days ago in parliament.While addressing the Special Committee, Speaker Nembang termed the authority to abolish monarchy “unlimited power of the parliament and a blank cheque.” “We can remove him (the king) if he acts against the Constitution, if he assumes executive powers unconstitutionally and against the wishes of the people,” Nembang said.

As per the provision, a two-thirds majority of parliamentarians can decide on removing the king in case he tries to scuttle the CA polls. The Council of Ministers would bring in such a proposal in the Parliament.However, one-fourth strength of the parliament cannot initiate action against the king on its own, but the government has to forward the proposal first.Several MPs had proposed amendments in the provision. They demanded such an action could be initiated with political consent, but withdrew the provision after such an idea was criticised.Home Minister Sitaula said he is ready to accept the amendment.MPs today questioned why the government does not want to take action against the king on other grounds — for going against the spirit of the Constitution, people’s wish or loktantra.

Lawmaker Radheshyam Adhikari said the new parliamentary power is a “sword above the king’s head” and that it would stop monarchy from going against the people.Another amendment in Article 33 (a) said the CA polls would be held by mid-November. The earlier provision for holding the polls by mid-June was amended.Another important provision included in the statute is that the Parliamentary Public Hearing Committee would conduct hearings on the appointment of Supreme Court judges,ambassadors and heads and members of constitutional bodies. This provision is important as it would make the authorities accountable to the parliament and the public.The House also adopted a provision of an opposition party and an opposition leader in the Parliament.Amending Article 154, the parliament granted authority to the Constitution Delimitation Commission to review its earlier report as per the request of the government.

Amending Article 55, the parliament adopted the power to remove the Prime Minister by a two-third majority of the House with no-confidence motion. According to the provision, a no-confidence motion can be filed against the prime minister only two times in a year. One-fourth of the members of parliament can summon a special session of the House and the PM can call the session within 15 days.

Salient features

• CA polls to be held by mid-November

• Public Hearing Committee to oversee appointment of SC judges, envoys, heads and members of constitutional bodies

• House to have an opposition party and an opposition leader

• House also gets power to remove PM by two-thirds majority

• 281 MPs voted in favour of the second amendment out of 329

• Two MPs of Jana Morcha Nepal opposed the amendment

• One-fourth of parliamentarians can demand a special session

Source: The Himalayan Times, June 14, 2007

Plea For CA polls

Chief of the United Mission in Nepal (UNMIN), Ian Martin pointed out the fact that the election to the constituent assembly should be held to establish political stability in the country. Speaking at an interaction with media persons held at Kathmandu ,the other day, the chief of the UN Mission in Nepal maintained that the conducive environment for polls will have to be created to conduct polls in a free and fair manner. Referring to the activities of the Young Communist League (YCL) , the head of the UN mission in Nepal asserted that the League's actions should not exceed the limits prescribed by law. The League should cooperate with the law enforcing agencies as a group of law abiding citizens. This alone would contribute in keeping law and order in the country.

Informing the media about the second phase verification of the PLA combatants lodged in different cantonments , he made it clear that the verification would be carried out to undertake examination and scrutiny strictly, and those who did not meet the criteria should be sent out of the camps. As the international community is all for stable and consistent peace building efforts, the support extended from all quarters including the UN to the cause of democracy and peace in Nepal is very instrumental. This has been one of the causative factors , among others, to accrue positive results for democratization and peace building in the country.

What should not go unmentioned is the establishment of the Office of the UN High Commissioner for Human rights in Nepal for the last two years. This has been at the frontline to monitor the abuses of civil and political rights in the country . Moreover, the initiative for commencing the second phase arms and combatants verification has been relevant and important. This goes in line with the concurrent efforts and preparation carried out for the election to the constituent assembly. As the present political dispensation has been working to arrive at settlement of the outstanding issues through dialogue, the commitment of the UN, as highlighted by Ian Martin, to extend cooperation to accelerate momentum for peace building is meaningful.

Source: The Rising Nepal, June 14, 2007

INTERVIEW WITH CHINESE AMBASSDOR ZHENG XIANGLIN

Excerpts of aninterview with His Excellency Zheng Xianglin, the newly appointed Chinese Ambassador to Nepal by Sudheer Sharma, editor of Nepal magazine.

Q. Is it only coincidence that you became the first ambassador to present credentials to the Prime Minister instead of the king? Or can we take this as a sign that China is positive about the establishment of a republic in Nepal?

Zheng Xianglin: We can say that it just happened. I was appointed as the Ambassador to Nepal when we received notice from the Nepali government that Nepal had amended the constitution. According to the interim constitution, the Prime Minister of Nepal is now the acting head of the state. So, the designated foreign Ambassadors should present letter of credentials to the Prime Minister.

Q. Where is Nepal in China's foreign policy priorities?

Zheng Xianglin: China has 14 boundary-countries and Nepal is one of them. China upholds the principles of independence, peace and self-reliance. On that basis we are willing to establish friendly diplomatic relationships with all the countries in the world.

Chinese people and the government are ready to extend harmonious cooperation and coexistence with our neighbours and to enhance understanding and friendship. We would like to become good friends and good partners with our neighbours. China and Nepal has a dispute-free political relationship. Nowadays China has achieved economic development but we will never forget our friends and our neighbours. China is yet to support Nepal and we will extend our support to the best of our capacity.

Q. How are you observing Nepal's ongoing peace process? Is Nepal entering stability?

Zheng Xianglin: From last year, we have been very glad to see that the peace process in Nepal has achieved significant developments and is now moving forward step by step. I think this process will keep going on, although encountering some difficulties.
We sincerely hope that all the parties concerned in Nepal can remain united and work together to push the peace process, to make contributions to the well being of the Nepali people as well as Nepal, the whole country.

So, are you satisfied with the ongoing peace process?

Zheng Xianglin: My stay in Nepal is not quite long but I have already communicated with the chief of UNMIN Ian Martin. I also read the report presented by the Secretary General of the UN to the Security Council about the political situation of Nepal. I think that UNMIN has made some achievements in Nepal. The Chinese side also accepts the importance of UNMIN's work here. We are also planning to send a political officer to this delegation.

Q. If the conflict escalated again in Nepal, then can China play any role to resolve it?

Zheng Xianglin: We are always working for peace and reconciliation. We sincerely hope that all the parties concerned can work on the basis of unity and compromise.

Q. Now, we are facing another type of conflict in the Terai. Some new armed groups have emerged there. How do you assess it, is it common during a transitional phase or is it an extraordinary case?

Zheng Xianglin: The Terai issue is an ethnic group issue, which has existed in Nepal for a long time. It is also a historical issue. It is purely an internal affair of Nepal. So I think the Nepali government as well as parties concerned should address this issue properly through dialogue. And I hope there should not be any foreign interference in this regard. This kind of internal issue, I think, exists in lots of countries (in transitional phases).

Q. It is believed that the Chinese government maintained a close relationship with the monarchy for a long period. Why?

Zheng Xianglin: It is totally a misconception. The Chinese government has always established very good relationships with the Nepali government and the Nepali (political) parties, of course, including the previous monarchy. The Communist Party of China has remained in frequent contact with many parties in Nepal. So, this is a quite normal relationship between countries and parties.

Q. How do you see the Maoists? The US has branded them as "terrorists", does China also think similarly?

Zheng Xianglin: The CPN Maoists have already joined the mainstream and now they are part of the interim government.

Q. My question is that, like the US, does your country also see them as terrorists even after they joined the government?

Zheng Xianglin: The Maoists have now become one part of the coalition government of eight political parties. It is a legal government and accepted by the Nepali people. I think the US also accepts this coalition government. And as for the terrorist label, I think different people have different assessments. American Ambassador Moriarty has told me that he also would like to shake hands with Prachanda.

Q. What is your relationship like with the Maoists?

Zheng Xianglin: No formal relationship.

Q. Have you met any Maoist leaders?

Zheng Xianglin: Except for my meeting with Minister for Forest and Soil Conservation Matrika Yadav to exchange opinions on how to defeat cross-border economic crimes and with the Minister for Information and Communication Krishna Bahadur Mahara during a public function, we don't have formal interactions with other Maoist leaders. We don't have a party level formal relationship.

Q. And an informal relationship?

Zheng Xianglin: As for informal interaction, I would like to tell you that the Chinese media has interviewed Prachanda. And we also have some informal encounters in some receptions.

Q. If the Maoists led the government in future, then China may recognize them?

Zheng Xianglin: You just put this up as an assumption, so it is difficult to answer.

Q. Why does China maintain a low-profile diplomatic policy in Nepal, compared to other influential countries?

Zheng Xianglin: I think it may not be correct to put it like that, low-profile. I have been quite high-profile during my more than one month stay here. Every day, I have at least five activities. I have already met a dozen governmental officials, ministers, leaders of major political parties and most of the foreign ambassadors here.
China upholds the principle of non-interference in the internal affairs of other countries. We respect the choices of the people, made of the political structure of that country. I think foreigners have no right to make incorrect comments about that.

Q. But some foreign diplomats like the US and Indian Ambassadors are commenting on Nepal's internal affairs very openly. What do you think about that?

Zheng Xianglin: We have no comment on that. We uphold our own principles.

Q. Some people believe that the US is trying to encircle China through Nepali territory. What is your opinion?

Zheng Xianglin: Nowadays China-US relations witness a smooth and healthy development. We have also promoted relationships with other western countries from Europe as well as India. I am sure of the further development of relationships between China and western countries in the future. There will be further mutual understanding and mutual trust. Now is not the time of the cold war.
Q. We can see some "free Tibet" activities here. Is this really a threat to Chinese security?

Zheng Xianglin: The Nepali government has already made the sincere commitment that Nepalese territory will not be used by the Tibet separatist forces against China. We are a little bit worried about the activities done by the separatist forces here. We will work closely with the Nepali government to oppose this kind of separatist activities in Nepal against China. We hope that the Nepal government upholds its commitments. China cannot compromise with the Tibetan issue, because this is related to the territorial integrity and sovereignty of our country. The Nepal government has understood our sensitivities quite well.

Q. Nepal is facing a shortage of petroleum products lately and we have heard that China is ready to provide petroleum products. Is it true?

Zheng Xianglin: These days we have also witnessed long queues in front of the petrol stations not far from our embassy. China is also a big petroleum consuming country. Half of the petroleum supply of China relies on importing petroleum. But nowadays our neighbour Nepal has difficulties, including in petroleum supplies, so we will of course do something.
During the meeting with Prime Minister Koirala, we talked about the supply of petroleum from China. But about this, we still need a concrete proposal and suggestions from the Nepali side. If the Nepali side can facilitate us with a concrete proposal, the Chinese side will take that into positive consideration.

QIn 1962, Marshal Chen Yi, then Deputy Premier of China, had commented that any foreign intervention in Nepal will not be tolerable for China. Does China still follow that policy or has it shifted from that?

Zheng Xianglin: No, No! Our policy has not changed. The traditional friendship between Nepal and China has lasted for a long time even till today. I am sure that this friendship will go on in the future from generation to generation.

Q. This means the Chinese government will treat the problems of the Nepali people like they treat those of the Chinese people?

Zheng Xianglin: That's the meaning. When Nepali people face difficulties and pain, we will take that as ours; especially when Nepali people face some difficulties to uphold sovereignty and territorial integrity. Any foreign intervention in Nepal will not be tolerable for China.

Source: The Kathmandu Post, June 13, 2007