Common ground

E conomists have expressed concern about the Nepali economy and one big source of it is the lack of clarity in the economic policy of the major political parties. They fear an economic drift. Political and business leaders occasionally call for a national consensus on economic development. At an interaction on ‘Industrialisation’ held in the capital on Tuesday, representatives of several political parties stressed the need for: a common vision for development, a common code of conduct for the sister organisations of the parties concerning industry, including bandhs and strikes, keeping the industry away from politics, a common minimum economic agenda of the parties, etc.

The existence of various political parties implies various policies on the economy and other sectors. But this should not form a barrier to the evolution of a broad common area of agreement on vital sectors, such as the economy, the use of principal natural resources (in Nepal’s context, water resources), foreign policy, and national security, how to maximise benefits from the country’s location between the fast developing giant neighbours and from other international economic ties. But, before the parties can develop such a consensual policy covering these areas, each needs to have a clear vision and a clear set of goals and objectives as to how it would steer the country with respect to those areas by itself if it came to power. Here, the parties have still to make their minds clear and let the people understand what they really want.One wonders how the Nepali Congress’s socialistic pattern of society meshes well with the policy of liberalisation and privatisation that are sweeping much of the world within the framework of globalisation. And how may one explain the gap between theparty’s policy and practice? The CPN-UML seems to be confused about its economic policy, as it struggles to balance between its communist brand and the present-day economic realities. The Maoists, who have yet to achieve full integration into the capitalistic pattern of economic management, have provided only a sketchy picture of the economic direction they will take, not a definite total picture of what they call a ‘mixed economy’. The confusion persists also as to whose policy the upcoming national budget will reflect. The Congress’s because the finance minister belongs to that party? Or, will it form a consensual document of the eight parties represented in the government? What about the three-year development plan being prepared by the National Planning Commission (NPC) for the interim period, whose length is still uncertain? Besides, as the NPC represents a hangover of the days of a regulated economy, is it not time its very role, and its very raison d’etre, were reconsidered in the new globalised context?

Nobody discounts the overriding importance of the political process of peace and polls. But it does not have to exclude important work on other areas vital to the nation. And what better time than this interim period the political parties will have for building such a consensus.

Source: The Himalayan Times, June 14, 2007

Nepal vis-a-vis Asia-Pacific security

Bhaskar Koirala

The conclusion in Singapore of the annual International Institute for Strategic Studies (IISS) Asia Security Summit (or Shangri-La Dialogue) on June 3, which witnessed the largest ever gathering of defence and foreign ministers, plus chiefs of defence staff and others, affords an opportunity for Nepal to examine its role and prospects in the broader scheme of Asiansecurity and defence dynamics.It is a matter of regret that Nepal has diverted its attention from larger events in international politics by focusing on petty internal rivalries. The peace process is truly simple if the principle actors bear in mind that Nepal very realistically has the potential to be a fairly high-profile Asian state with the capability of exerting a modestly benign influence on the maintenance of overall peace and stability in the Asia-Pacific region.

As a first step, Nepal must participate in the Shangri-La Dialogue in Singapore next year in order to take stock of the critical issues and to assimilate these into its foreign policy.From Asia-Pacific perspective, the most profound weakness in Nepal’s strategy has been a narrow vision focused too closely on India. What is not understood is that an absence of a more diverse Nepali foreign policy is not only detrimental to Nepal, but equally to India as well. Geography or geographic constraints do not necessarily define freedom of action for any state. Nepal must play its cards astutely and devise an appropriate policy that places Nepal within the context of Asia more broadly.In his address to the Security Summit, Singapore’s Prime Minister Lee Hsien Loong laid out the over-arching strategic environment in Asia focusing on the state of relations between major powers and over-riding regional concerns.

One important observation made by him was that the US, China, Japan, and India “set the parameters for long-term cooperation and competition among the regional countries” in the Asia Pacific.In Nepal’s context, it is not yet clear how these four major powers’ intentions and activities are converging or diverging with respect to their particular interests. Is it undeniable that a Nepal which has spun out of control is strategically not suitable for any of the powers concerned. A mountainous terrain amenable to guerrilla warfare and a fairly substantial Muslim population are among the factors that must militate against any serious outsideintentions to destabilise this Himalayan state. Moreover, as Nepal shares long and porous borders with both India and China, the economic and political repercussions of a deeply unstable political milieu in Nepal will no doubt be widespread and even detrimental to the region.

In terms of China-Nepal relations and the latter serving as a possible conduit for China in South Asia, it is important to highlight PM Loong’s remarks that “what the Chinese are saying to their own people gives some insight into their thinking.” It appears that Nepal’s strategic interests and imperatives in more expansive relations with China will pose unnecessary challenges to Indian interests.Nepal within the context of Asia-Pacific security thus essentially means that Nepal’s foreign policy must be sufficiently ‘entangled’ with the greatest number of other states toensure equidistance, neutrality and stable security environment.

Source: The Himalayan Times, June 14, 2007

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