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Delegation of the Committee on Development to The DELEGATION OF THE COMMITTEE ON DEVELOPMENT TO THE FEDERAL DEMOCRATIC REPUBLIC OF NEPAL 1 November 2010 - 5 November 2010 DV\851022EN.doc 1/17 PE454.532 v01-00 Introduction The goal of this report is to inform the Committee on Development about the results of the DEVE fact finding mission authorised to visit Nepal from 31 October to 5 November 2010. The report focuses on the objectives of the mission, mainly linked to development issues, but also includes an update about the political situation of the country. The DEVE fact finding mission in Nepal is the second European Parliament's visit in 2010 in the country, after that the Delegation for relations EU/South Asia (DSAS) visited Nepal last May 2010 (Chair: Ms Jean Lambert). In that occasion the EP delegation was focussing rather on post election political developments, on the process of electoral observation, on interparliamentary cooperation and also on the issue of climate change. The result of the DSAS mission was reflected in the emergency resolution on the situation in Nepal adopted on 17/6/20101. The EP delegation was composed by four Members belonging to four different political groups: three DEVE Members, Mr Guerrero Salom (S&D, E) as Chair, Mr Deva (ECR, UK), Mr Rinaldi (ALDE, IT) and Mrs Lambert (Greens/EFA, UK) who accepted the invitation to participate to this mission as Chair of the Delegation for relationship with South Asian countries. Members of the delegation were supported by two officials working for the DEVE Secretariat (Mr Luise and Mrs Uhrmeister) and by the political advisor of the Green Group (Sabine Meyer). Ms Muñoz Gálvez, accredited assistant to Mr Guerrero Salom also accompanied the Chair of Delegation. The EP Delegation is most grateful to HE Mr Alexander Spachis, Ambassador of the EU in Nepal and to all the EU Delegation staff for their continuous support which made the visit a successful one. Objectives of the Mission The objective of the mission was to monitor the state of the play of development issues with a specific look at: Good governance with a view to the eradication of poverty and the sustainable development of the country: Environment: the very fragile ecosystem of Nepal and its dramatic topography which makes the country prone to flooding and Glacier Lake Outburst Floods. Education, in the context of projects funded under the Development Cooperation Instrument. To achieve the objectives of the mission, the programme included the following meetings with Nepali authorities: 1 http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P7-TA-2010- 0245+0+DOC+XML+V0//EN PE454.532 v01-00 2/17 DV\851022EN.doc The Speaker of the Constituent Assembly, Mr. Subash Nemwang; The Development Committee of the Legislative Parliament; The Public Account Committee of the Legislative Parliament; The Minister of Foreign affairs, Mrs. Sujata Koirala; The Minister of Finance, Mr. Surendra Pandey; The Minister of Peace and Reconstruction, Mr. Rakam Chemjong; The Minister for Education, Mr. Sarvendra Nath Shukla; The Foreign Secretary, Mr. Madan Kumar Bhattarai; The Election Commissioner, Mr. Neel Kantha Uprety; The Vice Chairman of the National Planning Commission Dr Jagdish C. Pokharei The EP Delegation also had the opportunity to meet Worec Women's Rehabilitation Centre, an NGO fighting for women rights, ICIMOD International Centre for Integrated Mountain Development, and to visit public schools in the Bhaktapur district Bagiswori Schools), as well as a project concerning the protection ofthe Dalit minorities in the Lalitpur district. The program also included a dinner offered by the EU Ambassador at the presence of EU Member States representatives in Nepal, an exchange of views with NGOs (cocktail offered by the EP), a working lunch with other donors (also offered by the EP), a working lunch with European and local media (offered by the EU Delegation) and a cocktail offered by the Chairman of the Nepal – European Chamber of commerce Mr Dibya Many Rajbhandary in representation of the business sector2. Short Background Nepal is a landlocked country in the Eastern Himalayas, bordered by Tibet in the North and India in the east, south and west. It is classified as a Least Developed Country (LDC). The population is estimated at about 28 million in 2007, living mostly in rural areas (~70%). Nepal’s GDP per capita is approximately of 447 US dollars per year3. Major trading partners include India, the EU and the US. Nepal receives substantial aid from the International donors' community and also bilateral aid from different EU States, including Denmark, Germany United Kingdom, Finland, as well as from India, China, Norway, US and Canada. Millennium Development Goals Most of the MDGs goals in Nepal are likely to be met by 2015. The recent UN Human Development Index report4 released in Kathmandu during the visit on Thursday 4/11/2010 says that Nepal is one of the ten nations making the swiftest development gains; in particular Nepal is the third -after China and Oman- among a 2 Lists of attendees in annex. 3 Estimation of Asean Development Bank, see http://www.adb.org/Documents/Fact_Sheets/NEP.pdf 4 http://hdr.undp.org/en/media/PR3-HDR10-HD1-E-rev4.pdf DV\851022EN.doc 3/17 PE454.532 v01-00 list of ten nations making fastest development gains in terms of the Human Development Index in last four decades. However, the report says the economic development has been poor. Nepal continues to be among the poorest nations, with a yawning gap in the education sector between villages and the cities. Nepal stands at 138 in a list of 169 countries listed in the UN human development index. Current Political situation The current political situation can be described as a stalemate which is going on since May 2010 with the country ruled by a caretaker government. The relative stability of the situation could be endangered when the United Nations Mission in Nepal (UNMIN) a special political mission in support of the peace process in Nepal will leave the country (mid January 2011). However for the time being business and politics go on as usual. The stalemate looks linked to the issues of rehabilitation and integration into the army of the former Maoists combatants, to the return of properties seized during the civil war and to the approval of the budget, but also other crucial topics are at stake and notably the constitutional nature of the country (whether federal or not), the attribution of powers, the independence of the judiciary power, and last but not least, the relationship with the two big neighbours, China and India. The impasse on the election of the Prime Minister has delayed the presentation of the budget, because the main opposition party UCPN (Maoist) was opposing the possibility that the caretaker government could present a new budget. Official talks with the Nepal authorities, including the Minister of Foreign Affairs, the Minister of Finance, the Chair of the Constituent Assembly, confirmed that the three main political parties are likely to find a solution based on consensus. A confirmation of what the authorities had affirmed came from the press few days after the visit: the top leaders of the three major political parties -- UCPN (Maoist), Nepali Congress (NC) and CPN-UML decided to post pone the 17th voting round for the election of the new prime minister, and the annual budget was adopted on 19/11 having infrastructure, health, education and the private sector as top priorities. Official Meetings Ministry of Foreign Affairs In occasion of the meeting with Mrs. Sujata Koirala (Minister of Foreign Affairs, Nepali Congress Party), Mr Guerrero Salom, Chair of the delegation, confirmed that European Parliament will always be supportive of any peaceful and stable solution which Nepal will be able to find. MEPs also stated that, even if the country is in the middle of a challenging political and constitutional re-shaping of the country, the development agenda should not be neglected. Only an inclusive development process and a dynamic economic growth can have a positive impact on the life of Nepal population. In this context the delegation urged the Government of Nepal to get committed in the organisation of the Nepal Development forum which should involve all the stakeholders to allow discussions of strategic orientations and planning. PE454.532 v01-00 4/17 DV\851022EN.doc Nepal authorities do not underestimate the importance of the development issues; however they see it always ineluctably linked to the current political situation, they link the development process to the peace progress in the enforcement of the peace agreement and as it often is the case in developing countries they underline as top priority the need to create new infrastructures. According to the Minister of Foreign Affairs Mrs. Sujata Koirala all the stakeholders should be more flexible and more important that having a new PM is the drafting of the new constitution, without which there will not be democracy in Nepal. She also stated that "all parties will have to make minor sacrifices to have bigger advantages". Minister of Finance (Mr. Surendra Pandey) The meeting with the Minister of Finance confirmed once again that the EU is providing Nepal with some tangible help after 60 years of fight for democracy. He declared the country appreciates the efforts of the European Parliament in keeping focus on Nepal. The visits the European Parliament (two visits in 2010) and the next EU Nepal bilateral meeting scheduled for next 13/12/2010 are the clearest evidence of that and these events will contribute to further fostering what was referred to as the EU-Nepal “oldest friendship”. On the political situation the Minister of finance, reiterating a similar concept of the Minister of Foreign affairs, expressed the wish that European Union can encourage Maoists to have a more constructive dialogue and show more flexibility.
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