Govt unveils policies, programmes : CA election high on agenda

KATHMANDU, July 4 - Prime Minister Girija Prasad Koirala on Wednesday presented the policy and programs of the government for the next fiscal year in the interim parliament, giving top priority to improving security required for Constituent Assembly Polls slated for November 22. Koirala, who heads the coalition that includes former rebels, said the state has given topmost priority to making the polls a success because it will end the old order and begin a new era.

Hinting that the king's days are numbered, the octogenarian leader told lawmakers that an event comes only once in an era and Nepal is going to witness that event soon. In his indirect reference to the monarch leaving the country Koirala said, "As Mahatma Gandhi said the British rulers will help Indian independence movement by feet, we are also coming close to something similar."

Koirala urged lawmakers not to expect too much from the upcoming budget. "It's rainy season, dashain festival will follow soon and election will be next, so there is no time for budget implementation but the supplementary budget to be presented later this year will offer something good to the people."

The prime minister also called upon lawmakers to be ready for drastic changes in the current socio-economic set up. "Only after socio-economic change can we feel the real revolution."

After finishing his remarks, Koirala asked his deputy in the cabinet, Peace and Reconstruction Minister Ram Chandra Poudel to read out the policy and programs of the government.

The policy document said the eight-party coalition government would take all major decisions through consensus and tackle the challenges collectively.

It said the government will give priority to dialogue as a means to settle all regional, ethnic and other social conflicts in order to create a peaceful atmosphere for polls. The government policy, however, warned of strong action to control violent and criminal activities. The policy document has also promised to enact legal provision to keep highways free from any kind of strike.

Referring to some violent activities continuing in the terai despite the government's earnest efforts to resolve the problems amicably, the document said, "Such violent criminal activities shall not be tolerated and those responsible shall be dealt with through stern action."

The government has promised to set up State Restructuring Commission as soon as possible and a separate taskforce for necessary homework for proportional share of all ethnic groups, women, madhesis, dalits and other backward sections in the state agencies.

The government also said it would implement the concept of special economic zones, revise foreign investment policy and take initiatives for setting up industrial security force to ensure safety of industrial investment and to promote export.

The policy paper also stated that the government would initiate the process of nationalizing late king Birendra's family assets and parks and reserves controlled by the Royal Palace.

Program & policy highlights

Security top priority

State restructuring commission to be formed

Taskforce for proportional share in state organs to all disadvantaged groups

Legal provisions to free movement on highways

Local bodies to be run through political consensus

Salary increment pledged for govt employees

Democratization of army and proper management of PLA cantonments

Source: The Kathmandu Post, July 4, 2007

Security Arrangement

The government is committed to strengthening the security arrangements with a view to creating a congenial environment for election to the constituent assembly. The determination expressed by the government comes at a time when serious concern is being raised from different quarters regarding the deteriorating law and order situation in Madhesh and other parts of the country. Needless to say, the security situation in the country has worsened due to the low intensity conflicts and contradictions surfacing in different parts of the country. Thanks to the negotiation between the state and the revolutionary party, the CPN-Maoists, the violent conflict that took a toll of around 13,000 lives during the last one decade has been resolved. The country has entered a new era of peace building and democratisation. The date announced for the election to the constituent assembly testifies to the fact that the political parties are working in concert to take the country towards a new era of peace, consensus and harmony through a series of succinct steps towards conflict transformation. However, the new liberal and democratic political environment has allowed for the rise of ethnocentric and regional tendencies as a result of which local and regional issues have overshadowed the subjects of overall national concern and development.

The tensions in Madhesh and other parts of the country have presented difficulties in terms of maintaining law and order for peace and harmony. The worrying part has been the indiscriminate killings and kidnappings carried out in random in the terai as a result of which the situation has become more abnormal and unusual. The economic activities in the terai have been disturbed, and the business community is facing threats and intimidation. The senseless resort to strikes and vandalism of property has created a difficult situation which might have negative repercussions in the process of holding the polls to a constituent assembly. As the government has decided to deal with the unrest in the Terai with a firm hand, the situation is expected to come under control and become normal in the days to come. Against this backdrop, it is necessary for the political parties and civil society organisations to cooperate with the government to handle the law and order situation in the Terai. It should be understood that if the situation is allowed to worsen further, it would be difficult to build a conducive environment for the polls to the constituent assembly.

Source: The Rising Nepal, July 4, 2007

A Historic Responsibility

Yuba Nath Lamsal

The date for the constituent assembly (CA) election has been finally announced. November 22 has been fixed for the historic occasion. Unless some unavoidable circumstances arise, people would vote to choose their representatives to write a new constitution. In other words, people, for the first time in the history of Nepal, would participate in the constitution making process, which is the best democratic process in the world.

Interim constitutionThe issue of constituent assembly election had been raised right after the 1951 political change that overthrew the century-old Rana family rule and ushered in a new era of multi-party democracy. The year 1951 not only introduced a democratic polity but also reinstated the King who had been ousted. Right after the political change, the reinstated king, Tribhuvan, in a message to the nation, had promised to hold the constituent assembly election to write a new constitution. In his message, King Tribhuvan, while proclaiming the interim constitution in 1951, had clearly stated that the interim constitution would be at work until the new constitution was written by the people's representatives through an election. However, this promise of holding the constituent assembly election slowly evaporated as the King in connivance with some political parties scuttled the political process. They, perhaps, thought that the constituent assembly election would not serve their interest. Instead of holding the constituent assembly election, the parliamentary election was held eight years after the political change in 1951. This move not only breached the promise made but also denied the people to participate in a democratic process of writing their constitution. It was the first mistake of the political parties and politicians not to push for the constituent assembly election and instead participate in the election held under the constitution given by the King.

The process of scuttling the constituent assembly election was the beginning of the conspiracy against the democratic system and people's rights. The 1959 constitution, on the basis of which the first general election was held, had made the King too powerful, which the King misused to dismiss the elected government headed by B. P. Koirala and ban the multi-party system and political parties. Had a constitution been framed by the constituent assembly, it might not have given absolute powers to the King. Thus, Nepal remained under the spectre of the King's authoritarian rule for more than 30 years under the partyless Panchayat regime.Even after the political change in 1990, the then political actors failed to visualise the situation clearly. The Nepali Congress (NC) and the United Left Front (ULF) that spearheaded the 1991 mass movement had reached a compromise with the King on three key principles. The tripartite agreement among the King, the Nepali Congress and the ULF had agreed on a constitutional monarchy, multi-party system and sovereignty of people. This put an end to the burgeoning mass uprising.

Accordingly, a constitution was written by the representatives of the Nepali Congress, ULF and the Palace, which was promulgated by the King. The parties that wrote the constitution described it as the best constitution in South Asia. The constitution did have some salient features, which must be appreciated. The constitution in principles accepted the sovereignty of the people for the first time in the history of Nepal. However, the fundamental flaw in the constitution was the process of its making. It was not the constitution of the people because there was no participation of the people drafting the constitution. During that period, there had been a demand from certain quarters, though feeble, for an election to a constituent assembly. However, this demand was scuttled by the Palace and the other principal political parties. Perhaps, it was the compulsion of the Nepali Congress and the ULF to opt for a quick way to promulgate the constitution as there had been repeated attempts from the Palace to sabotage the new political process. It should be mentioned here that the Palace had first constituted a constitution drafting committee without consultation with the Nepali Congress and ULF, but it was dissolved following strong opposition from the parties and the people.

Another event that needs to be mentioned here is that when the NC, ULF and King's representatives were giving a final touch to the draft of the constitution, the Palace prepared a parallel constitution, which had to be withdrawn after strong protests from the people, professional organisations and political parties. Thus, the Nepali Congress and the ULF had to opt for a quicker way to write the constitution and end the political transition. It was the necessity of the time.Thus, the debate and demand for a constituent assembly election remained unresolved, which resurfaced during Jana Andolan II. The constituent assembly election was the main agenda of the Maoists. Other political parties, namely the Nepali Congress and the CPN-UML, were a bit reluctant to go for the constituent assembly election as they were not sure of its outcome. Before the 12-point agreement reached between the Seven-Party Alliance (SPA)and the Maoists, the political equation was different. The King had imposed his absolute regime, summarily crushing the fundamental rights of the people and party activities. On the other hand, the Maoists were waging an armed insurgency. The seven political parties had been attacked from both sides. Despite that, the seven-political parties continued their agitation for democracy and human rights.

The situation and political equation changed after the seven-party alliance and the Maoists signed the 12-point agreement. This agreement is a watershed in Nepal's political development. Until then, the constituent assembly was the agenda of the Maoists alone. After the agreement, it became a national agenda as the seven political parties changed their earlier stance on the constituent assembly. At the same time, the Maoists agreed to suspend their armed offensive and join the peaceful democratic mainstream. On the basis of these two main principles, Jana Andolan II was launched, which was led by the SPA and backed by the Maoists. The people's movement eventually forced the King to bow down, restored democratic system and initiated a new political process in the country. Law and orderThus, the constituent assembly election is a national necessity, which must be held on schedule. We cannot and should not doubt over the intention of the government and the eight-party alliance in holding the election. But announcing the election date alone does not mean it will be held in time and in a free and fair manner. There are elements trying to sabotage this process. These elements must be checked, for which greater unity and solidarity of the eight parties and active mobilisation of the people are highly necessary. For a free, fair and peaceful election, law and order must be perfect. In the absence of security, people cannot exercise their voting rights freely. The present law and order situation is definitely not satisfactory. It must be improved, and the people need to be well informed and educated on the election process and its significance. Only then people can freely participate in the election process.

Source: The Rising Nepal, July 4, 2007

Why Institutional Reforms Count

Lok Nath Bhusal

Being a resource scarce economy, Nepal's future course of development critically hinges on the realisation of the commitments made in the Millennium Development Goals by the development partners. Drawn from the Millennium Declaration of September 2000, the MDGs are a groundbreaking international development agenda for the 21st century. With the aim of bringing peace, security and development to all people, especially people from the developing countries, the MDGs, having eight goals and 48 indicators, outline major development priorities to be achieved by 2015 by the UN member states.

Achievements and shortcomingsIndeed, on the part of developing economies like Nepal, achievement of the first seven goals - eradicating extreme poverty and hunger, achieving universal primary education, promoting gender equality and empowering women, reducing child mortality, improving maternal health, combatting HIV/AIDS, malaria and other diseases, and ensuring environmental sustainability - largely depend on the accomplishment of the eighth goal: developing a Global Partnership for Development. This is because in most of the developing economies, there is a wide gap between revenue and expenditure. Nepal's MDGs Progress Report 2005 states that external assistance totalling US$ 7.6 billion is necessary to meet the first seven goals. Obviously, increased focus on debt relief and development cooperation through more effective aid is crucial to financing development. Having said that, the present article outlines major achievements and shortcomings in the area of institutional reforms in Nepal essential to attract foreign aid. Nepal initiated the reform process in the early 90s in order to integrate its economy with the rest of the world. As a precondition for increased foreign assistance, Nepal's commitment to an open economy, good governance and poverty reduction are some of the major achievements. This is apparent from the objectives and strategies of the three successive plans following the 1990 political change. These plans have clearly allowed market-based economic growth, set poverty reduction as the single goal and unveiled a systematic arrangement to institute good governance.

Reduction, restructuring and rationalisation of import duties, elimination of most of the quantitative restrictions and import licensing requirements, interest rates deregulation, and introduction of full convertibility for current account transactions have been major reforms on the trade and financial fronts. Consequently, the unweighted average rate of protection has declined from 111 per cent in 1989 to 22 per cent in 1993, and to 14 per cent in 2002, clearly indicating a liberal economy. Furthermore, in terms of trade to GDP ratio, for 1984/85 it was 31.9 per cent whereas it was 50 per cent in 2003/04, suggesting Nepal to be the most open and trade dependant economy in South Asia. Likewise, a number of innovative approaches have been initiated to make the civil service responsive, efficient, accountable and inclusive to ensure good governance. Elimination of 7,334 vacant positions and putting a cap on recruiting class III and class IV non-gazetted staff have been carried out to right-sizing the bureaucracy.Likewise, institutional reforms in the central personnel agency, the Public Service Commission, Commission for the Investigation into Abuse of Authority (CIAA) and the National Vigilance Centre are underway to make the bureaucracy more efficient, accountable and corruption-free. Indeed, with the enactment of the Local Self-Governance Act 1999, Nepal has taken major strides towards decentralization and, thus, poverty reduction. As a result, the local bodies have improved their performance owing to their better preparedness with the periodic plans, technical capacity, operating systems and operational processes.

In order to upgrade the judicial capacity and resources for enhancing justice delivery, the judiciary has prepared a strategic plan to link it with the national planning process. The plan envisions a system of justice that is independent, competent, speedy, inexpensive, accessible, ethical and worthy of public trust. All these reforms are intended towards improving governance and, thus, making it more pro-poor. Eventually, these reform initiatives meet the basic conditions for global partnership for development.However, still a number of shortcomings in the realm of governance and economic and trade reforms still persist in creating a conducive environment for attracting more foreign aid. First, the sluggish progress in the piloted performance-based management system, owing to inadequate fulltime staff, poor management, funding and facilities in the change management units in the public institutions, has been a major setback to the reform process. Also, transfers, promotions and the distribution of other career development opportunities within the civil service have yet to be institutionalised. Second, in the past, the conflict has forced many VDC secretaries to abandon their posts, curtailing development activities, taking a toll of the decentralisation process. Also, despite the peace agreement, the local bodies have not been able to spend their development budget due to local level conflicts and lack of consensus.

Again, although theoretically politicians and bureaucrats seem to agree on greater decentralisation, in practice, the centre has always been reluctant to do away with its powers to carry out any meaningful decentralisation. Third, the lowly paid public servants and deteriorating ethics and integrity are major challenges to fighting rampant corruption.Essentially, judicial reforms and FDI inflow have a positive relationship. Additionally, on the economic fronts too, deregulation of state monopolies, privatisation and financial sector reforms have been disastrously slow. Again, our efforts at realising the notion that aid should promote trade have not materialised to the desired extent. Obviously, these shortcomings contain our potential for attracting more foreign resources.

Increased assistanceTo conclude, in an era of economic diplomacy, increased foreign assistance is extremely crucial for undertaking development activities in Nepal. Despite some achievements made in the economic and governance reforms for meeting the preconditions for such assistance, further deep-rooted reforms are required to benefit from foreign aid. Indeed, as part of a global development strategy, Nepal will be in a position to attract more aid and stride towards accelerated socio-economic development in the future. Broadly, such aid money should be spent on reconstruction, rehabilitation and infrastructure development, peace and meeting people's basic human rights, gender and social inclusion and better service delivery. Indeed, Nepal must work hard for better alignment of assistance strategies, increased budget support and harmonisation of assistance and procedures, and ultimately it must focus on better results.

Source: The Rising Nepal, July 4, 2007

Labour Accord

Nepal and the United Arab Emirates (UAE) have signed a deal to arrange and regulate exchange of workers with a view to ensuring that Nepalese labourers working in the UAE are protected and conferred with the rights that are universally granted to the workers employed outside their own countries. This is the first bilateral agreement of its kind which has been agreed upon and initialled between Nepal and the countries of the Gulf. Although a similar accord was said to have been signed with Qatar at the time of the Royal regime some one-and-a-half years ago, it is, according to the Minister of State for Labour and Transport Ramesh Datta Lekhak, the first accord that entrusts legal status to the Nepalese workers employed in any country outside Nepal. The bilateral agreement comes into effect soon, and the salient features of the deal makes the government of Nepal and the UAE accountable for safeguarding the rights of the Nepali labourers and maintaining salary standards and contracting compulsory health insurance for them. Moreover, the accord provides the Nepali workers rights and the legal status to fight against attempts to encroach upon their entitlements.

The most important part of the agreement has been that it seeks to prevent improper practices and deceptive tricks by the private manpower agencies that tend to exploit the workers by demanding exaggerated fees, while providing false information about their working conditions in the host country. According to Minister for Labour of the UAE, Dr. Ali Bin Abdulla Al Kabbi, the deal confirms the importance of the supply and recruitment of the Nepali labour force on a firm foundation in accordance with the laws and regulations in force in both the countries. The positive aspect of the agreement has been that it defines manpower as temporary workers intended to be employed for a specified period of time as per the work contracts and indicates the rights and obligations of the employees and employers. As has been mentioned by the authorities of both the countries, the accord constitutes a milestone in protecting the rights and entitlements of the Nepali workers. Since the trend of the Nepalese people going outside and working there has been consistently on the rise, Nepal should seek to agree upon and sign similar accords with other countries including Saudi Arabia, Malaysia and so on. What matters significantly is not so much the signing of the accords as their implementation in the real sense of the terms.

Source: The Rising Nepal, July 5, 2007