CONTENTS

Page

Letters 3

News Notes 4

Briefs 6

uote Unquote 7

Off The Record 8 Prime Minister Girija Prasad Koirala remains unshaken even though he is under siege from every possible front.

GOVERNOR'S CASE: Courting The Coun 9

LEAST DEVELOPED COUNTRY: Common Concern 10

ARMY MOBILIZATION: Insecurity Concerns 11

ANFA ROW: Brief Respite 12

JUNOON CONCERT: Endless Passion 13

: Dambar Prasad Dhungel 14

ICE CREAM CULTURE: Scoops or Solace ME LAM CHI PROJECT: A Shot In The Arm 15 The onset of summer witnesses' youths and children thronging at ice-cream parlours for cool del ight Page 24 BOOKREvmw 26

THE BOTTOMLINE 27

PROFILE: Kashi Raj Dahal 28

PASTIME 29 INTERVffiW: DR. RAM SHARAN MAHAT Finance Minister Dr. Mahat high­ LEISURE 30 lights his agenda to tackle with the growing financial problems. FORUM: Or. Rup Khadka 32 Page 22

SPOTLIGHT/APRIL 6, 2001 SPOTLIGHT EDITOR'S NOTE THE NATIONAL NEWSMAGAZINE Vol. 20, No,aa, April 6, 2001 (Chailra 24, 2057) : I Chief Editor And Publisher Madhav Kumar Rimal he miseries of the hapless people of the poor and unfortunate country do not seem to abate. ]n the last more than ten years, the sufferings of the Editor peopie have nol only increased, the whole country has been inching Santa Rimal towards a civil war. And now the situation has got out of total control of Managing Editor the callous, corrupt and imbecile government. When the whole country Keshab Poudel er is gripped with an atmosphere of fear and anxiety, Ihe politicians in power still seem to ASSQciate Editor be obsessed with the evil designs of slicking to the chair of authorily so that they can Bhaglrath Yogi continue looting the country with impunity. The non-functioning of the parliament for Senior Reporter Ihe whole session shouid have been ample reason for the Speaker and the Prime Minister Sanjaya Dhakal to resign withoul any delay, iflhey had any conscience, BUI for men who have nol heard about integrity, morality or patriotism, conscience and virtues are alien lenns Reporter Akshay Sharma existent in their lexjcon.

Design and Layout Jyoti Singh The recent massacres of the police officials in the western and eastern regions of the country by the antigovernment forces have sent waves of panic and uncertainty across Photographer Ihe whole nation, The people have started losing all faith in the ability of the government N.shchaJ Chapagain to grant even a sense of safety and security to the nation. After the vicious killings of Art so many human lives, the home minister instead of resigning and going to Ridhi for M,S, Khokna penance, has slarted sermonizing as if he is Ihe Messiah, And Ihe shameless Prime Legal Advisor Ministermel a number ofjournalists the other day and talked 10 them wilh clear warning Advocale LoIk Bhakta Rana that every word he said was "off the record." As such, wc are not in a position to comment on what he said. But, the Prime Minister tried to show that he was really Marketing/Advertisement Saril Rimal (USA) worried at the sinister developments. He also tried to give a strong impression that, he was losing both sleep and hunger over the grave situalion generaled by Ihe killings of Marketing Madan Kaji Basnel Ihe police officials, He did not take a bile from the well laid oul tabie nor finished his Navi" Kumar Maharjan cup of lea but smoked five cigarettes in about forty minutes. He, however, did not fail Madan Raj Poudel to blame the opposition, the dissident colleagues of hi s party and the journalists for not Editorial Office cooperating with him, Indeed. How Ihe opposition, his party colleagues and the GPO Box 7256, Baluwatar, Kalhmandu, journalists are going to take hjs admonjtion time will only show. Tel: (977-1) 423127, Fax: (977-1) 417845 Chief EdHo~s : 435594 E-mail: [email protected] We have, time and again, exhorted the king 10 aCI , 10 save the people and the country Internel Add: http://www.nepalnews.com/ from the tyranny of the corrupt politicians. We have emphasized that constitutions are spotlighl made for the country, countries are not made for constitution. Constitutions can be Cover Design amended and even scrapped. Countries cannot. Countries can even survive without a Wordscape constitution. TIle time is past when even our King could become absolute. But, he does Kamai Pokhari, Ph : 410772, Fax: 432872 have certain responsibililies he cannot shirk. He cannot behave like a disinterested Distribution spectalor when the country is heading towards the brink of the precipice, No body can Bazaar International deny that the country is facing a disastrous civil war. And there is no dearth of friends 228 Sanchaya Kosh Bldg. Kalhmandu G,P,O Box 2480, Ph: 222983 Fax: 229437 and well wishers who would like to fish in the troubled waters. And the men in control a-mail: [email protected] are collaborators, When the persons responsible for saving the integrily of the country are lurning quislings, where should the poor people lurn to exceplthe King, There are Printers: Kishor offsel Press (P,) lid. P,Q, Box 4665, Galkopakha, Thamel, slill honesl and patriotic people in the country, 11 is Ihe duty of Ihe King to find them, Kalhmandu,Tel:351044 (Off), 351172 (Res,), If he wanls to save democracy, he has 10 act and act quick, We have said it before and Fax: 977-1-351172, are saying il again, "Procrastination is the thief of time," • E-mail: [email protected]

C_D,O, Regd. No I 1511039-40 Postal Regd. No I 4:!J057/58 U.S. Library of Congress Madhav Kumar Rimal L Calalogue No. 91·905060 Chief Ed itor& Publisher

2 SPOTLIGHT/APRiL 6, 2001 LETTERS ______

menlaftercompletion ofhis ten­ Ensure urc. O/fiee o/[IIe Attorney-Gel/eral Transparency Kathmandu Tire central bank and [he M in istry ofFinance In list Moderation Is Better make transparent each step I want to make some com­ ·GTLl ments on your article on chang­ they lake toward handing ing food habits ("Changing over tlte management of Taste", S POTL!G HT, March Raslriya Banijya Bank and 23-29). I guess the main theme Nepal Bank Limited to pri­ oflhearticlcwasaboutlhegrow­ vale hands on lease (" Banks ing fast-food habits in On Hire", SPOTLIGHT Kat.hmandu. My concern, how­ March 30-April 5), Any al­ ever. has to do with your discus­ templ to cloud the process sion regarding diet and health. Your story gives the impression .....ould result in afiasco, Past that ealing meal is harmful - illcidellts suggest that the without any qualification. [ldoes authorities '\-'ould try to not discuss differences within make the process as less animal products. red and white transparent as they possi­ meat, elC. At least, that's how I bly call. Tha[ would be un­ read it., and I don 'I think we can fortunate. If this process make absolute statements like lands in cOlltroversy, [he that. [ also find the analogy of meat products being a slow­ ultimale losers ..... ould be tlte moving vehicles very mislead­ .... ____-1 two banks [hemselves. ing. It might have been more Sudhir Bista appropriate to talk about satu­ Hattisar rated fat and cholesterol in this context since you get saturated fat from plant products as well Reform Necessary banks("BanksOn Hire", SPOT­ SPOTLIGHT, March 30-April (oil. vegetable ghee). Of course, Time is running out if we LIGHT, March 30-ApriI5). As 5). Ifthal is the case, not a single I've nothing against vegetarian to save the two biggest the bank employees argue, the momenlmust be lost in improv­ diet. In fact. 1 myself limit meat of the country ("Banks real refonn would be to bring to ing their situation. The country consumption. However, if a per­ On Hire",SPOTLlGHT,March book the culprits who are re­ cannot afford to allow these two son is strictly vegetarian (espe­ 30-April 5). [nstead of squan­ sponsible for landing Ulese in­ banking pillars to deteriorate fur­ cially vegan), they better make dering our latest chance to re­ stitutions in their present mess. ther. Whether through manage­ sure that they're receiving ad­ form the banks, everyone con­ Does the government have the ment contract to foreigners, to­ equate nutrients. especially pro­ cemed should make honest ef­ guts to take action against the tal privatization or anything else, teins and calcium since plams forLS to improve them. As we so-called business houses that the authorities must do some­ are low on them. In additjoll, have already lost precious time are trying to default on their thing la prevent a catastrophe. Vit. 8-12 is found only in ani­ in introducing much-needed re· loans? If so, there is no need to Suman 8aidya mal products.! personally think fonns. we must not waste any hand over the management of Patan that ifs more important to en­ more time. Capable foreign cli­ the banks to anybody else. sure that your diet is balanced Deepak KC and the key issue may be mod­ ents should be gi ven the respon­ No Official Dispute sibility to improve the manage­ Ihamsikhel eration. Moreover. meat con­ Our attention has been ment of these banks. sumption is mostly a problem in Salldeep Shres[ha drawn to your write-up on the the West and not in countries Money Matters constitutional dcbatc("Question Bangcmuda like Nepal. The bottom line is Your cover story indicated OfJurisdiction",SPOTLIGHT, that thereare people who choose that any serious damage to the March 30-ApriI5). It is not at all to be vegetarian forsuictly health No Guts Raslriya Banijya Bank and true that theallomey-general has reasons. and 1 think your article [t is absurd that the govem­ Nepal Bank Limited would re­ had any personal or official dis­ may mislead them, ment has chosen to accept a loan sult in a financial meltdown in pUle with Mr. Bal Ram KC, Kalyall PUllde to sell the management of its the country ("Banks On Hire", who went on automatic retire- Madison, Wisconsin, USA. via email

SPOTLIGHT/APRIL 6. 200t 3 NEWSNOTES

Six Women Rebels more than 200 bighas of land to 1.350 families of Break Jail former kamaiyas Six Maoist rebels - all women - (bonded laborers) in five escaped from a prison in the western dis­ districts in the mid-west­ trict of Gorkha Friday night by breaking ern and far-western re­ the jail. Kantipur daily quoted jailer Nir­ gion, RSS news agency mal Gautam as saying that the women reported quoting offi­ managed to escape by digging a nine-feet­ cials. According to Sec­ long tunnel early Saturday. According to retary at the Ministry of offi cials, a bomb was exploded near the Land Reforms and Man- jail and a few fires were shot in the air in an apparent move to help the rebels es­ ., .""."d ari. cape. As the police officers' attention was kamaiyas have already DabaJ (left) and Yadav at Special Court ptwto· Ka!lIJpur received land-ownersa divCI1ed to the explosion, the rebels slipped ______--'=:...::=c:::. certificates. He said _ out of the jail. Police said they have mounted an operation to arrest the women torturing them physically as well as men­ process of providing land to morc who are between the ages of 17 and 25 tally. Police had arrested both leaders kamaiyas is under way. The government years. Compiledfrol1l reports Aprill. nearly a year ago but their names were has also decided to provide homeless ex­ missing in the li stofMaoistactivists made kamaiyas a loan of Rs 5,000 each to con­ Hoax Call Delays public by the Home Ministry early last Slruct houses. Officials said they were month. Both Maoist leaders also raised going to launch food-for-work programs lA Flights slogans within the court premises and told for fanner kamaiyas. The government A hoax call delayed scheduled Indian reporters that "people would not be free had declared kamaiyas free in July last Airlines nights to the Indian cities of from exploitation unless the Maoist year but is facing severe criticism from Kolkata and Varanasi by morc than two ' people's war' s ucceeded." Nepal the local and international agencies for hours Friday. According to officials, the SamaciJarpalra Marc" 29. failing to rehabilitate them properly. Com­ Tenninal Duty Office received a telephone piled from reports March 30. call at 3:22 p.m. from an unidentified caller Govt. To Probe 'Maoists May Join A who spoke in Hindi. warning that bombs Overstay Of Nepalis had been placed in the two planes. Security National Government' was stepped up and an extensive search The Foreign Ministry has instructed General Secretary oftheCPN (Marx­ was carried out with the help of army and the Royal Nepalese Embassy in Tokyo to ist-Leninist), Bamdev Gautam, has police personnel. The nights later took off probe the overstay of 17 Nepali students and reached theirdeslinationssafely. Com­ who had gone to Japan for higher studies piledfrol1l reporls MarciJ 31. under scholarship, Nepal Samacharpatra daily reported. Foreign Secretary Narayan S. Thapa said the Nepalese embassy in Maoist Leaders Produced Japan has already started the probe. The Before Special Court government's move came arter Japanese Ambassador to Nepal, Mitsuaki Kojima. The government produced two se­ publicly warned that the tendency of nior Maoist leaders before the Special Nepalese students and officials. among Court in the capital Thursday. Tbe court others. to overstay in Japan could harm started recording statements made by cen­ bilateral relations. He also hinted that the tral leaders of CPN (Maoist) Matrika Ya­ Japanese government could lake stricter dav and !swori Dahal, reports said. Ear­ measures while granting visas to Nepalese lier, police had taken the (wo leaders to citizens. llIegal workers are considered Chautara, district headquarters of one of the important elements supple­ Sindhupalchowk on Wednesday where menting the declining labor force in Ja­ pol ice had recorded their statements. The pan. Compiled from reports March 30. police have charged them with participat­ ing in an attack at a police post in the Govt. Distributes district. Talking to reporters in the court premises, both leaders accused the police Land To Kamaiyas of framing fake cases against them and The government has handed over

4 SPOTLIGHT/APRIL 6. 2001 NEWSNOTES

the Maoist rebels could accept the consti­ reports said. Nepal Samacharpalra tutional monarchy and join a "national March 28. government" in order to find a way out of the present polilical impasse. Talking 10 Rebels Abduct reporters Wednesday, Gaulam said his party was also in favor of forming such a Police Inspector government. "There i ~ no alternative to Maoisl rebels have abducted at least the resignation of Prime Minister G.P. seven people, including a police inspec­ Koirala to end the ongoing deadlock in tor, in differenl parts of the counlry. Ac­ parliament," said Gautam. He also urged cording 10 reports, a group of half a dozen , Koirala to create an environment for form­ unarmed rebels Slopped a passenger bus ing a "nalional government" that could plying from districl headquarler of Rolpa accommodate both the monarchy and "re­ 10 Ghorahi of Oang Tuesday afternoon publican" Maoisls. Kanlipur March 29. and asked police inspector Madhav Khatri 10 accompany them. Khatri's whereaboulS People cou ld not be known. Khatri was on his way to NawaJparasi fora new assignment. Die In Bus Accident Police said a search operation is underway Fourteen people were killed and 22 to rescue Khatri. In a separate incident, others were injured when a passenger bus rebels abducted headmasler Som Nalh lravelling from Butwal to Balkol in Kuwor and fivesludenls ofNarayani High Arghakhanchi in weslern Nepal fell nearly School in Jajarkol dislricl last week. The Ranabbat 200 meters off the road near Gaihrikhutla motive was not immediately known. Com­ of Gulmi districl Monday evening. The piled from reports March 28. properly, acceding 10 the WTO would injured were treated at the Mission Hospi­ mean daunting tasks ahead. Chainnan of lal in Palp•. According 10 police, 12 the WTO To Bring the National Assembly Or. Mohammed dead have been idenlified. The cause of Mohsin said Ihere was a need 10 develop Ihe accidenl could nol be known. Police Opportunities aminirnum naLiona) consensus whilejoin­ suspec t it may have been the resu lt of Legislators participating in a two­ ing the WTO. Minisler of Slale for Indus­ brake failure. day seminar on Ihe World Trade Organi­ try, Commerce and Supplies said Ihere Gorklrapalra March 28. zation (WTO) and Nepal havesaidNepal's stressed the need 10 assess Ihe possible joining Ihe world body would bring bOlh opportunities and challenges that WTO challenges and opportunities. Speaker of accession would bring. The seminar was Refugee Leaders Slam the House of Represenlatives Taranath organized by government and parliamen­ settlement In Bhutan Ranabhal said when Ihe counlry had nOl lary agencies. Compiled from reporls been able to mobilize available resources March 28. • As Ihe Oruk kingdom has been suc­ cessful in steali ng the international lime­ lighl by agreeing 10 verify the refugees Iha! il had allegedly forcibly evicled more Gorkha Brewery Honors Outstanding Ihan a decade back, Bhulanese officials have expediled the resetlling of people Personalities from northern part of the country in the area vacated by Ihe Nepali-speaking Gorkha Brewery has felicilaled four leading personalities with the Tuborg Bhulanese. refugee leaders say. Accord­ Outstandmg Award. Senior musicmn Natikaji. singer Koili Devi, marathon-runner ing 10 S.B. Subba, presidenl of Ihe Balkunlha Manandhar and mountaineer Babu Chhiri Sherpa. In a special program Bhutanese Refugees Repatriation Com­ organized in Kathmandu on April 2. 2001, the personalities were honored for Iheir millee, 70 percenl of Ihe land and houses oUL<;tandingcontribution to the country from theirrcspecllve fields. Nalikaji. 73, has vacaled by the refugees have already been given music to hundreds of popular songs. He ha...; received several awards for hjs occupied people from northern Bhulan. A contribullon. Koili Oevi, 70. is onc of the pioneer female singers of the country. Bhutanese refugee leader, Ratan Gajmere, Baikunlha Manandhar IS known for his marathon-running not only inside Nepal but demanded thal Ihe Bhutan government in the whole South Asian region. He won gold medals thrice in succession in the SAP make il ilself clear on the issue. King games. Babuchhiri Sherpa made a hislory by climbing the mount Everest in record Jigme Singye Wangchuk, who is cur­ 16 hours. He also holds Ihe record for longest slay atop Ihe Everesl peak. All of Ihe rently visiting southern Bhutan, is over­ awarded personalilies received a felicitation certificate along with the cash purse of seei ng the resettlement process himself, Rs 100,000.

SPOTLIGHT/APRIL 6, 2001 5 BRIEFS

tered a decelerated growth of21.8 percent to Rs 33.75 1.8 million out of which exports to India grew by 29.3 percent whereas exports to third countries went up by 16.2 percent only. A decline in the export of readymade gannents. woollen carpets and jewellery to third countries has been noted whereas expon of pashmina. tanned sk in and pulses has increased significantly.

SUSPECTED MAOIST REBELS ATTACKED A POLICE POST at Pourai VDC in the central terai district ofR

Nepal RasLra Bank (NRB) said. According to the central bank. of the import of raw materials through lhe government's one4 window com­ lotal government expenditure. regular expenditure went up by more mittee. The blocking of the capital has had an adverse impact on the than 24 percent whereas development expenditure increased only by 9.3 running of industries, r-oroduction and the export trade as a whole. The percent thereby registering a higher budgetary deficit of Rs 5,918.4 FNCCI demanded provisions of adequate money in the budget to million. During the review period. the revenue collection increased by immediately refund such deposil. The government owes millions of 18.4 percent to Rs 24.632 million. In the external front, ex pons regis- rupees in the form of duty drawback to exp(lners. •

6 SPOTLIGHT/APRIL 6. 2001 QUOTE UNQUOTE

"That was out of season." Madhav Kumar Nepal, leader a/the opposition alld general secretary of (he CPN-Unified Marxist Lellillist, commenting 01/ the recent meeting between his party colleagues alld Nepal; Congress leaders Oil the Maoist problem held at the Ne central office. • • •

"Fifty percent oflhe country's problems will be solved if a nalional (all-pany) gov­ ernment including the Maoists is fonned." Bamdev Gautalll, general secretary ofCPN-Marx;st-LeIl;II;st,;1I Bimarsha. • * • hould we return to streets again? I think we should find a way out from parlia­ ment ilsclC' Mohammed Mollsi", Chairman ofthe National Assembly. commellfing 011 the current political deadlock, ill Deshanlcr. • • • "T his issue has been brought to cover up lhe Lauda scandal." before accepling anyone from Nepal for USI lovisil thetempleofPashupalinalh." Jlzal Nail! Klzallal, central leader of any future training programs." "J theCPN-UML, wlzellaskedabolltthell­ Japanese Ambassador to Nepal Amitabh Bachchall, IlIdian cine-star, UML govel1lmellt's alleged involve­ Mitsuaki Fujima, hinting additional who recently came for a three-hour l1Iellf ill China South \Vest Airlines measures to check the trend of "over­ visit to Kathmalldu, when asked by seam, in Jana Aastha. staying" by Nepalese who go to Japan reporters about the reason for his • • • all dIfferent programs, ill The short visit, ill Himalaya Times. Kalhmandu Post. • * * apan would then have to reconsider • • • "A fler completing studies, I became in- volved in government service. Later, as I became more involved in work, I did not find time 10 marry. I don'llhink marriage is compulsory." Indira Rana, member ofthe National Human Rig/us Commission, talking about her s;ngle life, ;n Gorkhapalra. * * • "0ur b uSlncssdepends . on NepaJesecon- sumcrs. Aftcr the mobilization of army per­ sonnel, it has been our daily ritual of merely opening and closing down our shops." Mohammed Musla/a, general secre­ tal), of industry-commerce commit­ tee, Swwuli, India, reacting to the suddenslul1ip ill the arrival o/Nepalese c01lsumers/ollowing strict control by Nepalese army mobilized at custom poillts, ill Nep~1 Samacharpatra. • • *

SPOTLIGHT/APRIL 6,2001 7 OFF THE RECORD

Deer Leader When the government decided comrades are often at the front to present two controversial of the pack. From radical com­ When former prime min­ ordinances in parliament, the munist Lilamani Pokharel to ister Krishna Prasad Bhatlarai NSP supremo joined the op­ so-called moderate Madhav organized an all-party meet­ position in blocking the bid. Kumar Nepal, the task of ing at his Bhainscpati resi­ Four years ago, when he was breaking with tradition is just dence last week, reporters sud­ a member of Sher Babadur too difficult. This trait was on denly rushed to the back of Deuba-Ied coaHtion cabinet, display last week when the red the building as iftbey smelled Singh switched benches a!lhe brigade took a leaf from the a scoop. Theirolfactory senses last minute to bring down ..... ______., did sniff a story: a protected the government. Those fa- wildlife species ensconced miliar with this steady within a powerful political record of flip-flops stead- perimeter. As soon as they fastly refuse to predict sighted a doe in a cage with a what Gaijubabu might be black belt on her neck, photo­ up to next. journalists fell all over the guessing about his next move. He brought up the Comradely wounds festering in the governing Nepali Con­ Conduct gress out in the open when Most Nepalese politi­ be demanded the resigna­ cians are known for not tion of Prime Minister practising what they Girija Prasad Koirala at an preach. However, ourcom­ all-party meeting at his munist leaders are particu­ residence. Bhauarai even larly adept in doing things proclaimed that there could that are diametrically op­ not have been a better posed to their ideology. ______Nepal: Tradition-bound _ venue to demand the Being progressives, they premier's Duster. After are supposed to oppose tradi­ Mahabharat and began tileir Bhanarai spoke, UML lion. However, when issues of anti-government demonstra­ general secretary Madhav religion are concerned, our tions by blowing the conch .• I. ,',,,., Kumar Nepal and RPP leader Surya Bahadur Thapa seconded his de- Bhatlarai : Oh, deer! mand. Now, who is play­

ing second fiddle to whom? Nrp~1 place. At the press conference, lnd,:!. too, Bhattarai's new pet be­ 01lll'IS ...... RC us S 75.00 US $ ISO on Counlr",~ LIS S 7.'i()) came lhcsubject of moreques­ Weapons US S 100,00 US S 200.00 JIIjWI VSSHlnoo us s'X).oo US S 180.00 A-ean C""nlne!> I'S1;Q(I.00 lions than the proceedings of US S 100.00 us S 200.00 CI\lnalKu.rc~ us S t<~I(_) the meeting. After his recent Of Choice Nepal Sadbhavana Party visit to the Tapoban, Rajneesh I i "h", 'M' ~ocln",d ""rewnh my :lnn""l ~"b;.cnptlOll ror (NSP) leader Gajendra Ashram, north ofKathmandu, rorR!J£!USS Bhatlarai appears to have de­ Narayan Singh has two weap­ veloped special reverence for ons in his hands which he is the denizens of the animal using in turns to suit his inter­ _ PlnCM kingdom. est When all the other oppo­ sition parties walked out of Stalemate parliament demanding the res­ IL-----.:.'-.------Sign:uun- .------Tdt,~ ______ignation of Girija Prasad 00 NOT Send CASII in MAil. Mastermind Koirala, Singh's NSP stood P~.o;e-nd your ",mlllanl:t by OrarllChetjut 10 SPOTLIGHT Former prime minister firmly behind the prime min­ TilE NATIONAl. N£WSMAGAZtNE Krishna Prasad Bhanarai just ister on the plea of upholding G.P Box . 7256. Baluwauu·. Ph 911·1-423 127, 4J.'i594, F:lA 977· 1-417S45 E-ma,1 can't SlOp leaving people the parliamentary process.

8 SPOTLIGHT! APRIL 6, 2001 NATIONAL

the prime minister proposed Dr. Rawal's GOVERNOR'S CASE name to head the central bank. Following the decision of the court, Acharya, who was given the defence port­ Courting The Court folio in the last reshuffle, submitted his ~ resignation on moral grounds. But he later The Supreme Court's decision to reinstate NRB Governor withdraw the resignation at the request of Prime Minister Girija Prasad Koirala. Rawal shows that it can enter any matter related to the state When it comes to the apex court. few are as lucky as Dr. Rawal, whose case was By KESHAB POUDEL Prasad Bhattara; government. settled within less than six months. Many Fanner executive chairman of the other cases are pending for more than two Tt looks like there is no issue Nepal's Rasuiya Banijya Bank and former general years. ..I.SupremeCourt is reluctant to hear. Fol­ managerofAgriculture Development Bank, Constitutional lawyers argue that the lowing the promulgation of the Constitu- Dr. Rawal bas been in ...... ,...... ,-...., n of the Kingdom of Nepal 1990, the the banking sector for 'x court has entered into tricky political more than a decade. issues, including controvcrsiaJ decisions Then fi nance on the prime minister'~ prerogative to dis­ minister Mahesh solve the House of Representatives. Acharya recom­ In some cases. like the Labor Act and mended Dr. Rawal's citizenship issue, the court has set prcce­ dismissal arguing that denL<;. Many new trends have been intro­ he did not support the duced through public interest litigation. government's finan­ BUL in some cases, the coun's deci­ cial sector reform sions have come under heavy public fire. package. Even though it has some exclusive powers, The apex court many experts believe it cannot enter areas also ordered the gov­ where it does not have a specialized role. ernment to allow Dr. But other constitutional lawyers do Rawal to function for not agree with this minimalist view, argu­ his full five-year ten­ ing that !.he court can intervene whenever ure as governor. This there is injustice against individual rights is the first time the and duties. court delivered justice Arter its interpretation of !.he consti- to an aggrieved party tion in 1995, the court recently inter­ in such a short period vened in the issue of !.he government's of time and asked the order to dismiss Nepal Rastra Bank Gov­ government to allow ernor Tilak Rawal. As the interpretation the governor to serve of the constitution by the court on the out his full tenure. rights of the prime minister has already When the bench, created chaos in national politics. the full chaired by Justices impact of the reinstatement of Dr. Rawal Krishna lung remains to be seen. Rayamajhi and Top Thecoun's intervention this time, law­ Bahadur Khatri, is­ yers argue, will ruin the whole economjc sued the order jubilant i::!!oiIiiJ!jI:~v~,i.ciito'"n iii.oiOu"s"':::a...e:± structure of the country in the way its 1995 supporterS of Dr. ...:..:~=-=-..:-=::.:..:.:..=------­ interpretation threw national politics into Rawal welcomed it by sustained claps. court cannot intervene in matters related to disorder. "Finally, I got justice from the Su­ economic affairs because that is the sole lri a six-month court battle, the full preme Court," said Dr. Rawal. 'The court responsibility of the executive. bench of Supreme Court issued an order to has shown that it is capable of checking the The series of cases over the last few the government to reinstate Dr. Rawal as injustice committed by the executive." years shows that apex court is increasingly the governor of Nepal Rastra Bank. Dr. The controversy began following the moving toward judging the actions of the Rawal was dismissed just a few months resignation of Mahesh Acharya as finance executive. after he was appointed by the Krishna minister from Bhattarai' s government when •

SPOTLIGHT/APRIL 6,2001 9 NATIONAL 1 people. Since the majority of people in LEAST DEVELOPED COUNTRIES LDCs depend n natural resources for th eir li velihood, appropriate policies should be fannulated and implemented to ensure equi­ Common Concerns table access to and control over natural re­ sources, it said. The governments should positively create new opportunities for the Civil society members from Asia come together to disadvantaged sectors of society, the discuss the problem of underdevelopment Kathmandu Declaration said. Inaugurating the workshop, leader of the main opposition, Madhav Kumar Nepal, By BHAGIRATH YOGI moslequals their combined GDP, and a fourth said backward socio-economic structure, in- of their total earning from exports goes into lema! bad governance and external factors paying for debt. LDCsare becoming increas- were hampering the development efforts of t a time when the rest of the world is ingly marginalized as consumers, producers, LDCs. He said good governance. enhance- A marchingaheadintoacenturyofpros- exporters and importers," said Dr. Henning ment of productivity through human capital perily, 48 countries (33 in Africa, nine in Karcher, Resident Representative of the building and equitable economic develo Asia. five in the Pacific and one in the Carib- UNOP in Kathmandu, at a seminar in the ment, among others. was vital for the speedy bean) are destined to live under deprivation capital last month. development of LDCs. and underdevelopment. Together known as The Kathmandu Declaration, adopted Thereareolherchallengesloo. "Though the Least Developed Countries (LDCs), they at th e end of the two-day workshop here LDCs in Asia did quite well compared to share common constraints in their efforts Tuesday, has identified four key areas of other parts of Asia during Ihe '90s. disparities toward modernization and development. common concern 10 be raised in the upcom- between the LDCs and other developed coun- With a view to bringing these tries have further widened," said counuies intothedevclopmentmain- Or. Shanker Shanna, member of strcam-thathouse605 million people NationaJ Planning Commission. (that is, more than 10 percent of the "Nepal is ahead of other countries world population), the United Na- in South Asia in tenns of opening li ons agreed in 1997 to organize the of Irade and investment, market third UN conference on theLDCs in orientation, involvementofNGOs Brussels this year (May 14-20). The in social service delivery and em- conference, which aims al eradieat- powering local bodies:' ing poverty in the LDCs through Poverty reduction remains a Iheirprogressive integration into the paramountchalJenge for theLDCs world economy with the support of even in the new century. "The do- the international community, will nor community and domesticgov- discuss and propose action for the emments must re-orient their pr sustainable development of the grams for poverty reduction," sai

LDCs.AccordingtotheUN.morethan ~~~~~~~~~~~~~~~!~~~~~~~~~~~~~~~~~;;.~S ReconstructionArjun Karki, President Nepal (RRN) of Rural and half of the popUlation in the LDCs member of international steering lives on less than US$ I a day. Their econo- ing United Nations third Conference on committee of LDC Conference from Asia. miesare increasingly marginalized by global LDCs due to be held in Brussels in May this "Peace initiatives in the LDCs need to be trade, as their share of world exports is 0.4 year. The key areas identified by the work- promoted." percent. Right from the beginning, tJle NGOs shop include finance and themarket, gover- Jointly organized by the RRN and Inter- and other civil societies are also involved in nance and political structure, access to and national Steering ConunitteeofLDC's NGO the UN conference preparatory process both control of natural resources and people's Forum, the workshop laid emphasis on the at national and international level. empowennenl. immediate cancellation of deblofthe LDCs. As part of this exercise, representatives Tradeliberalizatioll and free market poli- increased foreign direct investment, open- of non-governmental organizations from des should benefit and protect the interests ness of market as well as the capitaL market seven out of nine LDCs in Asia gathered in of the peoples of LDCS. Openness of mar- regulation to reduce volatility and to protect the Nepali capital last week (March 26-27) to kets should not be confined only to capital, vulnerable economics. discuss the issues of their concern. They but there shouLd be freer flows of infonlla- At least 600 NGOs, including abou1250 unanimously called on the developed coun- tion, technology and people, said the Decla- NGOs from the LDCs themselves, are ex- tries to waive debt to their governments. ration. Regarding the govemance,theDec1a- pected to participate in the NGO Forum and According to the United Nations, be- raLion said political structure must allow the the Conference. In the pre-conference delib- tween mid 1980s to mid 1990s, the total debt involvement of the vulnerable sectors of so- erations (May 10-12), they will finalize their of LDCs grew from 70 billion dollars to 135 ciety, particularly women, minorities and positions and to agree their joint submission billion dollars. "Their cumulative debt al- poor to the conference. •

10 SPOTLIGHT/APRIL 6. 2001 NATIONAL

killed, says the analyst. ARMY MOBILIZATION Officials at the Mechi Customs Of­ fice claim that the mobilization of the army has improved the collection of rev­ Insecurity Concerns enue. The mobilization of the army has made significant progress by arresting The deployment of the army in the border regions also Deep Chandra Agrawa!. the proprietor of Manisha Electricals and has managed to raises complaints of harassment confiscate goods worth Rs 450,000. Dur­ ing a raid conducted on March 28, the By AKSHAY SHARMA Karl W. Deutsch in his book ·'The Analy­ army also confiscated 4,000 pieccs of sis of International Relations". saris from Dulhan Sari Center and saris At the same time, however, the busi­ amounting to 95.000 rupees from Suresh he government Os decision IQ use the nessmen in Lheeastern terai have requested Enterprises. T Royal Nepalese Army to patrol the the government to review its decision of "An obvious way of stepping up pres­ rder checkpoints has been instantly deploying the army. Some have even pro­ sure on the target counlrY is the infiltra­ hai led by some and more minutely scruti­ tested against the action, saying that the tion of saboteurs and guerrillas, who mine nized by others. army was terrorizing the local business roads, blow up weakly guarded installa­ The decision to deploy the army at community. "It is wrong to arrest the tions, and attack isolated officials or local border customs checkpoints was taken on March 14 to control cross-border smug­ gling of goods and to stem the leakage of government revenue through rampanllax evasion. The mobile team of army personnel will be under the directives of the chief custom offi cer, policy makers tell us. Deputy Prime Minister Ram Chandra Poude!. speaking at a recent program on the state of law and order in the country said, "His Majesty's Government is com­ milled to maintaining good governance and law and order in the country." The government is facing the daunl- g (ask of restoring stability in the coun­ try . Conlroi of unauthorized trade and other acti vities along the border could be seen as a major component of that task. Moreover. as one expert puts it, most of Tatopani custom point: Will army mobilization be fruitful? the contraband that enters the country is through the borders. "By mobilizing the businessmen without giving them the right agencies or minor center of the govern­ army. maybe wccan stop the huge amount to speak for themselves." said Parshuram ment," writes Deutsch, agreeing that lim­ of contraband that is smuggled into the Agrawal, the president of the Chamber of ited violence can be used as a means of country." Commerce in Jhapa. pressure on solving bigger crisis that may lf national means of control or added If a blockade is not challcnged by loom ahead. influence of international coalition suf­ another power, its enforcement might He says, "The foreign input of fices 10 change the behavior of a targeted succeed without bloodshed. But if it is radio, propaganda. anned agents, special country, then the power trying to influ­ challenged, or if its enforcement fails, or equipment, technical expertise, and ence it may have to resort LO force, says an if, though enforced, it fails to change the (perhaps) troops can be augmented to analyst, on condition of anonymity. behavior in the country, then the would­ sustain or even trigger a genuine civil "The least violent use of force is the be innuencer nalion may have LO aban­ war." blockade-either by land, as imposed by don its attempt at putting pressure on the The mobilization of the army in the the former Soviet Union on West Berlin in country, or move up higher on the ladder border regions can also maintain an atmo­ 1948, or by sca, as used briefly by the of escalating conflict. And from this level sphere of insecurity and harassment, says United States against Cubain I 962," writes on upward. some people are likely to be the analyst. •

SPOTLIGHT/APRIL 6. 200l 1I SPORTS

Rana as well as Thapa led ANFA. ANFAROW The initially selected players will undergo final selection which will choose the ultimate 20-member national Brief Respite team. "Had we cooperated this much ear­ The National Sports Council agrees to cooperate with lier, we would not have lost the chance the Ganesh Thapa-Ied ANFA- upping the country's to host the tournament here," Thapa is quoted to have said in a weekly. chances to participate in qualifying matches Thapa has hinted that the present By SANJAYA DHAKAL But after the Asian Football development in the Nepalese sports sec­ Confederation (AFC) sent a letter to tor has put off the chance of FIFA im­ s the country's supreme sports NSC implying that they would not ac­ posing suspension on Nepal. A governing body - the National cept any team except the one recog­ Last OClOber, the NSC had consti­ Sports Council (NSC) - has sent posi­ nized by theThapa-led ANFA, the sports tuted an interim (ad hoc) ANFA co tive feelers to the Ganesh Thapa-Ied All officials began 10 show signs of conces­ milLee under the presidency of Geeta Nepal Football Association (ANFA), sion. Rana even as the officials from AFC the chances of Nepalese players partici­ According to Binod Shankar were present to witness the unopposed pating in the World Cup Qualifying Palikhe, the member-secretary at the re-election of Ganesh Thapa as the head of ANFA. A classic irony emerged subse­ quently with the national sports govern­ ing body recognizing the Rana-led ANFA while the international bodies like FIFA and AFC identifying the Thapa-Ied one. Due 10 the stand-off between the two football associations, the qualify­ ing match, which Nepal was to host in March, was taken away to Kazakhstan and Iraq - leaving the Nepalese foot­ ball-lovers who were expecting to se... the match among such teams like Ira ~ Kazakhslan, Macau and Nepal high and dry. If things move smoothly. Nepalese players led by NSC would participate in the qualifying match scheduled to start in the third week of April in Baghdad, A football game in Dasrnth stadium: Rejuvenated Iraq. Even though the sports-lovers have Matches 10 he held later this month in NSC, the council decided to cooperate heaved a sigh of relief with the tempo­ Iraq and Kazakhstan have sharply in­ with Thapa-Ied ANFA in choosing the rary truce in the ANFA, they are won­ creased. national team representing Nepal that dering why it took the chance of hosting After messing up the country's would participate in the match because an international match to makeoursports maiden chance to host the World Cup they feared suspension from FIFA if the officials reach a compromi sl:.. qualifying matches, the row in the row persisted. But the current patch-up in the national football association had The NSC has even formed a com­ Nepalese football seclOr is not a perma­ threatened to snatch away even the mittee under the convenorship of Dawa nent sol ution. As the differences be­ country's chance to participate in those Gurung which selected a 35-member tween the two ANFAoflicials run deep, matches and face the international sus­ squad including players tbat were par­ many say the NSC should seize this pension. ticipating in training camps of both the chance to reach a lasting solution. •

12 SPOTLIGHT/APRIL 6. 2001 MUSIC

1996 saw 1unoon put out another label JUNOON CONCERT called 'Ehtesaab' (accountability). The songs in the album mocked Pakistani politics. The band was banned from state-owned Pakistan TV. Endless Passion The reasons were that the songs would destabi­ lire the country before elections. But this deci­ sion saw theband's popularity graph skyrocket. Referred to as one of the biggest bands in the world, The music video lficluded a scene of a horseriding at a luxury hotel- a non-loo-well Pakistani Junoon recenty performed in the capital appointedstabJes whereAsifAIiZadari. Bcnazir BhUlto's husband. was rumored to keep his polo BY AKSHAY SHARMA Pahari of the Kanti Children's Hospital. ponies. As the government banned1unoon from Maharajgunj. "Junoon is the biggest band in the P'TV , the ban crilique had some impact. unoon means "passion" in Urdu and as region and have mesmerized the audiences with Afler Nawaz Sharif became prime minis­ JTime magazine once wrOle, "Junoon uses their slyle of Suli pop around the world." ter and launched a program to trim Pakistan's soaring guitar riffs to deliver the Sufi message The band has been known for ils powerful debt, one of his aides had asked Ahmed to write of mystic hamlOny." The band mIxes Sufi po- lyrics and its latest release is ISHQ. "22 hOUfS. a song called "Gct Rid of the Debt and Save the that had reached heights in the 12thccntury. That'sall thctimel have in Karachi.It'sShehyer, Country". But Ahmed declined. After their tribute concert at New York's the Junoon manager's wedding reception. I "Being a musician of a Third World has Central Park to the Pakistani legend NusraL have scissored through the serpentine red tape given my writing and music a creative tension Falleh Ali Khan, The New York Times sug­ bordering India and Pakistan and watch me! J' m thall would not have in a more affluent gel-Up." gested that Junoon's music was, "Rock mixed here. I'm here," excerpt from ISHQ. Ahmed says. with religious raptor". Salrnan Ahmed, Ali The band had struggled financially and it In 1997. Junoon recorded an album titled Allnat and Brian O' Connell are the members 'Azadi' (Freedom) on Ihe label ofEMI/Virgin, oflhe band. and made itsdebut in India. 'Sayonee' from that "Sufism was a reality with no name," as album became an instant hit in South Asia and Sal man put~ it. "None of the mystic poets called theMiddle East. as it shot it way totoptheAsian themselves Sufis. They were dervishes and charts. For over lwo months. the album held the their message la humanity was a connection top slot on the two predominant musicchannels with each other through love: the love of God, of the region. MTV Asia and Channel V. the etcmal. and it's a great message because it Sal man composed the song 'Azadi' at the looks m humanity as a whole and does not request of the Quaid project for the movie divide people into religion. nationalities. 'Jinnah' (the story of the founder of Pakistan ethnicity or mce. I have a deep interest in Sufi Mohammed Ali Jlnnah). "Freedom comes only poetry and fecI privileged that ourmusiccarries through love and passion. Liberty lies in the its spirit, but we will nmcall OLlfselves Sufi rock cradle of Sacrifice," part of the song says. or Suri whatever." Junoon artistes : Transcending borders "Socio-political tumloil,economicdispar­ The music of the band speaks or si ngs fOf ityand corruption are so vivid in Pakistan that 'elr and. as Brian adds, "We get inspiration was not an overnight success. The band mem­ by pretending that all's well, and singing love rem great artists like Nusrat Fatteh AIi Khan bers remember months of livmg only on 'dal' songs, we would be only fooling ourselves." and Abida Parveen. They sung from the heart. (pulses) and rice, the staple Pakistani diet In Sal man says. It was 'Sayonce' that brought the They were very close la theif music. There is a 1996, Junoon scored its first hit with the song band into the IimeHght and hit the records with spiritualism that emitted from them and tbat '·Jazba-e-Junoon". The song roughly translated: platinum sales in a period of four months. The inspires us as musicians. We don't want to "If you have the passion, never give up! Theone band playedal theslar-studdedZceCine Awards replicate that. If we do it would indeed be an who perseveres reaches the stars:' in Mumbai in 1998. 'The song may have been honor. ., "In rough-and-lUmble Balochistan, an au­ a hit because it speaks directly to the people," After the band's performance at ''The dience of tribals applauded by shooting their S31man says. HOllse of the Blues", The Los Angeles Times rifles skyward." wrote Curia Powers. "At one "Whyshould wechangenow?" asks Brian. wrOle. "1unoon's ability to captivate audiences concert in Karachi there was no clectriciry. "If we start getting involved in the non-music or IS inspiring like the Beatles." When Ahmed asked at a nearby Islamic semi­ non-art aspect la our job - the fame, the '!'he spirit of music makes people from nary if they could run a cable to their amplifiers. popularity. the money - these are all distrac­ different culture relate ro us," the front man of the mullah paused. Then recognized the guitar­ tions. Because what's selling is our heart, not Junoon. who also happens to be the songwriter ist as the autl,or of the spiritual hit 'Saeen' our pretty faces." of the band. told reporters in Kathmandu. ''The (Saint). He mentioned Allah in the song so let's Infinity International will donate Rs dolhak and rabla revive Punjabi and Sindhi give him a line." 100.000 in proceeds from ·'1unoon Live in rhythm and I compose my songs after I write Junoon's linear notes in their labels read Kathmandu" 10 the Kanti Children's Hospital," them. Because the sound of these are already like an unofficial history of Pakistan's turmoil. said Dr Pahari. 'This amount will be used to imprinted in my subconscious." After Karachi was rocked by violence in 1995, purchasemuch-neededcardiaccareequipment." "The concert is an confirmation of our Junoon wrote a song titled 'Petition' - an Those interested in making a donation to faith in this region 'sage-old ties and contempo­ appeal for peace that open with the first words this cause may contact Dr Pahari at rary cultural realities." said Dr Sabina Shah of the Koran. [email protected] •

SPOTLIGHT/APRIL 6, 2001 13 ENCOUNTER 'New Guidelines Will Ensure Transparency' -DAMBAR PRASAD DHUNGEL

DAMBAR PRASAD DHUNGEL, is t"e of the banks comJ'leted their general meet­ Chairman of the Securities Board. Nepal ings and some did not issue bonus or rights (5£BO). The board is responsible/or regu­ share as expected. In the month of Fa1gun lating the capital marker in the country. (February/April). the index began to take D/wngel spoke to SANJAYA DHAKAL Oil plunge after plunge. leading to the single­ the recent upheavals ill the stock exchange day fall of 22.71 points on February 28. and ,IIeir likely impact ml the country '.'I capi· There is a eertain cycle to the rise and fall of ta/market. Excerpts: the market index. So you cannot say there is instability as such. It is all the result of How do you assess the overall condi­ different market mechanisms. tion of the capital market in the country? Following the fluctuation in the Before focusing on the capital market NEPSE index, the SEBO has introduced only, we have to look at the impact of litis new guidelines on securities registration. market on our national economy. From this What are its salient reatures? perspective. I think our capital market still Theguidelinesarca timely and relevant has a long way to go. BUI, then, the overall improvement on the provisions and condi­ condition of our market is indeed very posi­ Lions for regis·tering and issuing securities. tive. From a modest beginning of Rs 13 These guidelines will come into effect from billion market capitalization in 1993/94, it the new year 2058. We believe these guide­ has reached to Rs 50 billion (with paid up lines will be able to protect the interest and value up to Rs 7 billion to 8 billion) in 1999/ rights of investors by making the whole 2000. The floatalion of shares. too. has in­ process of issuing securities more transpar­ creased. The investor attraction is also on the ent. simple and well-managed. The special is a government institution. Our stock ex­ positive side. There are around 300.000capi­ features ofthese guidelines include the ob­ change officials are not there only tal market i nveslors in the country. Recentl y, servation of at least one-year track record of to operate the market but also to develop it. when there wa..I.i a demand for Rs 50 million a company that wants to go public. encour­ However. I do not claim that our system is wonh of capital, investors pumped in over aging companies to issue different instru­ flawless. We areevolving so there may not be Rs 2 billion. Therefore, it is clear that inves­ ments of securities like debentures and pref­ the desired level of transparency. Take for lors are willing to invest if anybody comes erential shares. clarifying the provisions for instance, the bank transfer - which allows up with suitable projects. issuing premium shares, increasing the mini­ the transaction to take place without revealing A sharp decline was witnessed in the mum number of shares that can be applied the identity of buyers and sellers. Likewisl NEPSE index in February 28 and there for by invesLOrs to 50 (from the present 10). we also find the same client making bot have been further slumps in successive promoting the formation of mutual funds, buying and selling orders. This type oftrans­ weeks. Is this fluctuation a sign ofinstabil· making issue managers more accountable, action has to be transparent. We. ity in the stock market? encouraging under-written shares and many at the SEBO and NEPSE. are looking into To better understand the reason for the more. We have focussed on the primary these aspects to ensure more transparency. As current swings. onc has to study the circum­ market becauseonce listed. these companies far as price fixinglfonnation is concerned. stances. A year ago in April/May the NEPSE will enter the secondary market, too. you will find that on February 28. only 22 index stood at around 333.61 points. The During the February 28 incident, points dropped and that. too. in the share following months saw a rise in the index as some investors charged that the share pricesofa few banks. It is nota caseofasingle the counuy witnessed positive market indi­ prices came down because of "cornering institution losingsignificalllly. Had that been cators in the foml of swelling investor con­ and rigging" by brokers, stock exchange the case, the reasons could have been grave. It fidence, the second-tier reform initiatives by officials and people with inside inrorma­ is, therefore. hard to suppon the '·cornering the government and other investor-friendly tion of commercial banks. What do you and rigging" theory. However. we concede activities. After the central bank asked the say? that there is a lack of investment advisor to commercial banks to raise their capital base Well. I cannot deny or accept thiSlOtally. instil rationality among our investors and la Rs 500 minion (minimum), it pushed the Our system is an order-driven one. A buyer guide them, who are not experienced in the share prices further as investors predicted can order shares only after making it in writ­ ways of capital market as such. In our system. that the banks would issue bonus and rights ing. So it is not possible to sway the market the price base of shares is fixed by competi­ shares to match that level. All these matters based on some sort of whim. Every order is tion among written orders placed by buyers/ pushed the share prices to the peak of 545 in recorded and the stock exchange is closely sellers. If there is a thin intensity of competi­ November. The subsequent months wit­ involved in the financia1 transactions. Our tion, one or two big parties could always play nessed a gradual decline in the index as most slock exchange is not controlled by brokers. It the market. But how do you verify it? Apart

14 SPOTLIGHT/APRIL 6. 2001 ENCOUNTER rrom being more vigilant, wecan do nothjng. MELAMCHI PROJECT We have to ensure that the intensity of com­ petition remains high. It is said our market is dominated by uninformed investors, resulting A Shot In The Arm in speculative trading. How can we improve thissituatioD and induct more Japan pledges a loan assistance up to US$44 million for the institutional and informed investors? We have lo improve the education and implementation of the Melamchi Water Supply Project consciousness level. Given the short history of our capital market. the level of conscious­ By A CORRESPONDENT expansion of the distribution network in ness is definitely inadequate. OUT market is the capital valley. dominated by retailers. That is why we are Tn what is seen as good news for thirsty Different donors have assured 10 sup­ calling for an institutional mechanism to ~Kathmanduitcs, the Japanese govern­ pan different components of the project. give authentic advice to small and marginal ment has decided to extend a loan assis­ NORAD has agreed to finance the diver­ Rating agencies and investment .ance of up to US$44.606,000 the sification scheme (up (Q US$24 million). are necessary. That apart, all the '0 Ncpale~e government for the implemen­ The ADB has agreed provide loan for market players need to work towards help­ '0 ing the investors. Recently, the government .a.ion of .he Molamchi Water Supply the bulk distribution and the World Bank reached an agreement with Asian Develop­ Project. has agreed tochip in with the assistance in ment Bank (ADB) on corporate finance gov­ The Japanese assistance, extended rehabilitation and expansion of ernance, which. hopefully. will be launched .hrough the Japan Bank for In

SPOTLlGHTIAPRIL 6,2001 15 COVER STORY PRIME MINISTER KOIRALA Fighting A Lonely Battle Despite all-round pressure from opposition parties and dissidence within the Nepali Congress, Prime Minister Girija Prasad Koirala appears confident that his rivals would eventually have to compromise. Even after 45 days of disruption in parliament and a major Maoist offensive in the mid-west, Koirala shows little sign of weakness

By KESHAB POUDEL intemaJ democracy when Koirala became the will sacrifice everything and accept all tenns to first Congress member to secure all the posi­ teach the opposition a lesson," said the analyst. Ven as all opposition leaders and (ions by contesting elections. He defeated his When Koirala succeeded in establishing Nepali Congress rebels continue disuple, Sher Bahadur Deuba, in the elections to his position in the parry and parliament, the pressing forthe resignation ofPri me the parliamentary party and party presidentship. main opposition parties, along with his party Minister Girija Prasad Koirala and Theexisring conditions prove that KoiraJa rivals, launched another crusade against him. In the CPN-UML along with other is the only leader who is prepared to stand the last leg of his politicaJ career. Koirala is communist parties declared a street behind the rules of the game and is committed facing all-round attack from different political Eagitation. Koirala shows no sign of weakness. 10 upholding the rule of law. forces, including his long-time colleagues. As the disruption of parliament cuntinues, "I don't know whether the main opposi­ Thanks to the displeasure of powerful the Maoist rebels mounted a major altack in the tion is harming Koirala oris pushing KoiraJa as westemdonorcountries overthe UML's uncon­ mid-western region killing more than 35 police a democratic leader by proving themselves as stitutional agitation and other inOuentiaJ exter­ personnel on Monday. undemocratic," said a political analyst. "The nal forces, Prime Minister Koirala seems to be In the first year of his fourth stint as prime agitation of opposition panies will further boost in a confident mood. minister, Koirala has shown positive as well as Koirala's image as a democratic leader." The si tuation is hostile with many deci­ negative sides. Although he replaced his rival For his part, Koirala has shown aJl kinds of sions coming against him, but Koirala finds no Krishna Prasad Bhaltarai charging him with flexibility while the opposition turns more irre­ time to talk about nonsense issues. failing to restore law and order and to fulfill the sponsible and arrogant. Koirala has already Koirala was elected prime ministerreplac­ aspirations of the people, Koira1a faces a far declared that he will resign if the Commission ing his old colleague Krishna Prasad Bhaltarai worse situation than his predecessor's. of Investigation of Abuse of Authority (ClAA) last year. Though Koirala opted for a path of In recent months, KoiraJa has seen both indicates his involvement in the Lauda Air compromise with his opponenls in the parry and favorable and hostile situations within the party seam. outside, no one seriously responded to his over­ and outside, but nothing has been able todimin­ "Alllheopposition actions are well planned tures. ish his role. to cordon Koirala and to weaken his patience. Koirala has visited the residence of main He proved himself as a man committed to Unlike hi s party colleague Bhattarai, Koirala opposition paJty leader Madhav Kumar Nepal

16 SPOTLIGHT/APRIL 6, 2001 COVER STORY

stead. Koirala wiJl compromise with anyone to deal blow to his opponents. In the first onc month of parliament's winter session, Koirala was really in trouble when he faced one humiliauon after another Despite his willmgne5S 10 bring all opponents in his fold, no onc side<.! with him. He lJied to convince CPN~UML leaders and othcroppD!i1lion leaders bUl noone li stened to him. Koiral a's opponents stallcd the house for such a long time and dIssidents within his party failed to lend a helping hand to the pre­ mier. Koirala is Said to be planning:1 natIOnwide lOur to address mass meetings to counter the move of the main opposition party. He is also mulling an addres\ to the nmion on radio and TV. "Girijababu know\ how to tackle the main opposition and other communists as he himself h&. long experience working in the opposition as an insurgent and organizing street agitation, says an analyst. " Unlike his party rival Bhallarai. Koirala may easily be influenced as he does not consider PM Koirala (right) with Nepal: Defiant against opposition the results when he sees trouble all around him. Like in hi s first tenure, Koirala is totally and RPP leader Surya Bahadur Thapa to work a South-China Airlines aircraft, has declared a isolated by the mam opposition communist out a solution and sought the cooperation of nation-wide agitation demanding the resigna­ party. Then, they called him a traitor and anti­ Bhatlarai. Nobody responded to his peaceful tion of KoiraJa. national and burnt more than a hundred of efforts. The more he visits the houses of oppo­ Instead of weakening his power base. it effigies. accusing him of selling out on Tanak­ si tion and ruling pany colleagues. the mOfC seems that The agitation launched by the CPN­ pur. (Interestingly. Surya Nath Upadhyaya was complicated his problems tume out to be. VML and other opposition parties is funher member-secretary of the Water and Energy Strangely, political parties are trying to strengthening Koirala's position. Commission that finalized the Tanakpur agree­ isolate him from mainstream politics. Even Opposition leaders reject the argument ment. Today UpadhyayaheadstheCIAA that is within his family. Koirala prommed his nephew that Koirala remains strong and confident. "I probing the Lauda Air deaL) Prakash Koirala instead of supporting his only have more than four decades of political asso­ When the main opposition party was in daughter Sujat3. Other powerful members of ciation with Prime Minister Koirala, but I have power, it proposed the integrated Mahakati the family are not happy with that decision. never seen him in a weaker position like this. He Treaty with India, which was ratified by two­ Diehard supporters like J. P. Ananda. Khum is weak in the party and outside," said chief third majority of the parliament. A party that Khadkaand 8ijaya KUIn:.rGacchcdar whipoftheCPN-UML Bhamt Mohan Adhikary. accused Koirala of selling out a river went on to the Opposillon camp. hut Koirala's posi­ "Every day theevents are going against Koirala. ratify an accord that incorporated all the tribu­ lion was strengthened. The latest killing ofmorcthan 30 police person­ taries of Mahakali. Even after threatening to call mid-term nel in Rukumkot is a major setback for Prime In his first three-and-a-half-year term, polls and form a national government. his Minisler. One of his 10yaJ supporters. Minister Koirala had a long stick to discipline members. panymen, who always have a record of be­ of Agricullure J.P. Ananda Gupta resigned fol­ but now even his own party colleagues do not trayal.ll

SPOTLIGHT/APRIL 6. 2001 17 COVER STORY rescued Koirala by not signing on as the crucial since he knows every ski ll needed to survive in to chec k the Maoi st insurgency and prime 57,h MP, politics. minister is, himsel f. a part of corruption. he Even UML leaders like Nepal and KP. "1 don't know the reason behind hi s confi­ cannot stay in power," said Rabindra Nath Sharma Oli ignored the feuding in the Nepali dence. bUI I will promise you that the CPN­ Sharma, a senior leader of RPP. As the oppo­ Congress as the JUling party's internal matter. UML wiU bring down thisgovemmentanyti me si tion is making a desperate move to weaken In a situation when parliament is stalled soon," said Adhikary. the Nepali Congress. Koirala still is in a Mrong and lheopposition is taking to the Slreets. Koirala KoiraJa replaced Bhanarai on the ground position. still doc!<; nCl see any pressure building against that his government was unable to reSlOre the As the deadlock contjnues between ag­ him. law-and-order situation in the country and con­ gressive opposition parties and a confident prime A mastermind of Nepali politics. Koirala trol increasing Maoist insurgency. But in the minister. nobody knows what price the country knows what he has to do and what he doesn't. last one year, the situation has worsened. will have to pay-internall y and extemall y­ No one would be able (0 defeat him in politics "At a time when thegovemmcnt is unable to stabilize the situat ion. • I Have Never Seen Koirala In Such A Weak Position - BHARAT MOHAN ADHIKAR UML leader alld eltiefwhip BHARA T just a ploy to avoid taking responsibilily.lfthe wc ha ve to ac...:cpt "...,.... "..-..".."'II!'"..--I Of/A ,V A,DJf/l,fVlRI' is cO"lji,lemlI111t Prime armed police can contain conl rol the in sur­ other democratic \I1illisler Cil'lja Prasad Koirala will resign gency, whal happened when the Maoists at­ means to bring down tlte ne.\t few days. Adltikllry holds the tack the armed police station when ordinance the COmIpt regime. that Koil'ala's resignlltioll is the only was sti ll alive? For the sad incident in How can you to end the current political stalemate. Rukumkot, Prime Minister Koirala and Home label an individual I4dhikar,l' spoke 10 KESHAB POUDEL 011 Minister Ram Chandra Poudel should resign corrupt when an in­ ~ '(I,"io'''Slss"esoIl Tuesdaymom ill g. Excerpts: owning moral responsibility. vestigative agency When there is a constitutionaJ process like the CIAA ;s yet How long will your party's agitation to change the prime minister, why is the to charge him for­ CPN-UML following unconstitutional mally? We will continue our agitation as long as means to force Koirala out? When his own takes to force Prime Minister Girija Prasad We are not alone, as 311 opposition par­ minister Tarini Dutta Chataut and senior to resign. ties. including the RPP, Nepal Sadbhavana {ieer Hari Bhakta Shrestha resigned. But KoiraJa seems to be more confi­ Party and others, are demanding the resigna­ MInister Koirala should follow them to in his recent public meetings. What do tion of the prime minister. the way for an impartIal investigation. If say? Why don't you let parliament function CIAA clears him, Koirala can become I have had a four-decade-long political and abide by the constitutional process? minister again. We woul d not have an'v ob;c,c-I ~";oc , a,,, on with Prime Minister Koirala, but Street agitat ion and stalling house pro­ tion then. have never seen Koirala in such a weak ceedings are also part of the democratic exer­ You mean KoiraJa is in a corner? pos;,;,on ,. He is weak in the party and outside. cise. There is nothing undemocratic in them. In Yes, You can ::.ee how strong he is How do you justify your claim that the Philippines, the president was forced out of after he quits as prime ministership. In the 1«.;",la is weak? office by street protests. President Albeno days ofhi5 career, he is organi zi ng a rally Look. Every day events are going against Fujimori of Peru ned the country following the last prime ministerofthe Panchayat The latest killing of more th an 40 simi lar agi tation. Marich Man Singh did. personnel in Rukumkot is major set­ This means you are confident that Can' t Koirala address a rally? for KoiraJa. One of hi s loyal supporters, Koirala will resign? We are not saying that he cannot M'In"aer of Agriculture J.P. Ananda Gupta, Definitely. It is just a matter of time. a rally. but the question is why does he need I L'''5"eu followi ng a dispute over Space Ti me Koirala has no choice in front of him. He can do that? If you look at the si tuation orlhe the Supreme Court challenged his quit gracefull y like fonner prime minister month. you can see the misrule of plSm,,;s," order of Dr. Tilak Rawal. governor Krishna Prasad Bhattarai or be forced out like everywhere. Nepal Rastra Bank. Defence Minister Mohan Sumsher. When Ihere is a total break­ How do you evaluate the current M,h,,,h Acharya forwarded hi s resignalion down in the country's law and order and the nomic situation? Commission of Invest igation of Abuse economy is in a bad shape, how can he remain The country'!. economy is in bad P~ :i~;~~:~:) :::~ has asked to take action against prime minister? The decision 10 mobilize the Royal NeIJUI,,,el ~ of Local Development Govinda Raj Your activities of the last two months Army in customs oflkes shows that . If you see all these symptoms, the time Question the commitment of the CPN-UML complete breakdown of the civil aatnt n'lStlra-1 against Koirala . to the democratic process. Many donorcoun­ tion. Development activiti es are.", ",mu"" The government blames the incident tries have expressed displeasure with your Ir you look at the budget expenditures. n Rukumkoton opposition efforts to block effort to take the law into your hands. How situation is bleaker. The government s",let,;onsl Armed Police Force ordinance in par­ do you look at this? 9 billion rupees but spends less than 4 ,'301,,01. How do you look at this allega~ We believe in parliamentary practices rupees. All these signs show that Koirala and are committed 10 its norms and values. completely failed to normalize the si tuation There is no basis forthis accusalion. It is When the normal courscdoes not bring results, the country.

18 SPOTLIGHT/APRIL 6, 2001 COVER STORY

MAOIST REBELLION From Periphery To Center A little-known rebel outfit establishes itself as a major political force in the country through violence. And the chances for peace are still remote

By BHAGIRATH YOGI munist Party of Nepal (Maoist), decided to The Maoist activists launched their launch 'people's war' in the remote and "war" by killing innocent people. school s the rest of their countrymen were impoverished western hills of the country teachers, chopping of limbs of political A celebrating 'Chaite Dashain' , one in early 1996. The party said it wanted to workers. most of lhem belonging to the of the major festi va ls of Hindus, more than turn Nepal into a ' people's republic' and ruling Nepali Congress party, who did not policemen were guarding one of the ensure transi tion of the society into soc ial­ support them, Later. the rebels started tar­ 'ate:gi(;ally important posts at Rukumkot ism through communism - something geting the policc posts and ambushed po­ in mid-western district ofRukum Sunday. what China practiced under Mao Zcdong li cemen . Staning from remote mid-west­ Though they knew that their job was full or in the laller half of the 20th century. ern hills where there is no road. electricity risk!" they seemed Iillle prepared to what Five years down th e lane. [here has and other modern means of development, was in the offing as the night progressed. been much bloodshed in the country known the rcbels have gradually cxpanded their A rew hours before midnight, hun­ world over for its peace and tranquility. activities in nearly half of the 75 districLS in dreds of Maoist rebels allacked cOllOlry. the post killing at least 30 po­ The violence continues licemen, injuring more than The government forces, two dozen others and abduct­ too. started killing innocent ing an equal number of police persons in the name of personnel. By targeting a rela­ !IIIIJ~" ~_ Maoists. burning the houses lively strong police striking of civilians, allegedly raping camp in th eir strongholds, women and torturing nny­ Maoist rebels have once again body whom they thought as proved their combat skills, Maoists. International human "We arc at a loss to know rights organizations. includ­ why our policemen could not ing Amnesty International , "sist the rebels," sa id a senior have alleged that both the lice official. The policemen, sides were commilting ex­ in fact. fought against the rebels tra-judicial killings, for more than four hours be- Successive popularly fore surrendering. Reports sajd elected governments saw the the rebels killed even the sur- L- ---· ---t-·-R-k--k-t-S---r--""'------a.J Maoist rebellion as a 'terror­ The po IIce pos ID u urn 0 : cene 0 rampaget'hoto: Nepal Samacharpatra rendered policemen in cold iSI activity' and focused on blood, The episode also exposed lack of According to official figures more than strengthening the security forces over the intelligence gathering and lack of prepared­ 1,600 people (including nearly 1,000 last five years. But as the rebel s continued ncss on part of the police regarding pos­ Maoist rebels and nearly 300 policemen) to target ill-equipped policc posts in the si ble assault. have been killed during the rebellion, Hu­ remote hills, it exposed lack of coordina­ The biggest-ever auack by the Maoists man rights groups say figures may be much tion among security agencies in the coun ­ in the last five years has come days ahead higher lhan that. try, of a nationwide shutdown strike called by Whatever be the figures, one of the Hundreds of Maoist rcbels mountcd the rcbels on April 6, In September last poorest countries in the world has wit­ their attack at Dunai. the headquarters of year, the rebels had mounted a major attack nessed unprecedented surge in security remote northern district of Dolpa border­ at Dunai, the district headquarters of Dolpa budget at the cost of development budget. ingTibetonSeptember25, 2000 killing 14 in mid-western Nepal killing 14 policemen The government has raised its budget for policemen. injuring nearly 40 and abduct­ and looting nearly Rs 60 million from a internal security by more than double to Rs ing 12 others, (They later released the local bank, 7,15 billion for the year 2000/2001. up abducted policemen.) The rebels com­ Genesis from Rs 2.91 billion only two years back pletely destroyed district police office, a A Iinlc known, ultra-left outfit, Com- (1998/99), local prison and set the inmates free. (Inter-

SPOTLIGHT/APRIL 6, 2001 19 COVER STORY estingly. the inmates later re· ~~~------"insurgency. Reports say turned to the authorities). They growing numberof chi ldren. also 100led nearly Rs 60 mil­ women and students afC be­ lion m cash and kind from a coming tht: victims of the local bank. A day later, they "'war. ' al,tacked a police post in west­ Future of the Maoist l!rr1 district of Lamjung and insurgency killed eight more policemen. As both the govern mem The impact of the attack and rebels arc working on lO was quile devastating. Home equip themselves. there afC Minister Govinda Raj loshi re­ possibilities of more blood­ signed from his post. Home Sec­ shed in the future. The retmy Padma Pokhrel was trans­ Maoists have already lured fe rred and police chief Achyut hundreds of poor and unem­ Krishna Kharcl was forced LO ployed youth into their fold. go on an extended leave only a Prime M il11slerGirija Pra Koirala has said the gover few months before his retire- fI~~::~~~:::iii:':,~t.:~:; ment wi ll launch a package ment. Cupboards of police post "The Dunai attack was an PhOlo.' "'cralSanl~ch .. rp .. lrn of administrative, political, Indicator of rising Maoist ------=""-===== economic and development cla1norlO move from primary guerrilla war the main opposition in parliament, wi th activities to counter the insurgency. But tactic to concentrated efforts in destroying respectable representation (69 seats in the officials haven't said how will this 'pack­ the state's strongholds located in the dis­ 20S-member lower house of the parlia­ age' be implemented and if there is any trict headquarters with frontal attack. ,. said ment). mechanism to scc that it is not getting Prof. Ohruba Kumar. a strategic analyst 'The Maoist insurgency has turned misused. with the Center for Nepal and Asian Stud­ oul to be the most powerful social move~ Some political leaders see wider im­ Ies (CNAS) at the Tribhuvan University. ment over the last one decade:' said Dr. plications of the Maoist rebellion upon the "As a resull the civil authority in the coun­ Chaitanya Mishra, professor of sociology country's future. "Nepal 's sovereignty may try has paralyzed and the political author­ at the Tribhuvan University. As the politi­ come under threm if the Maoist insurgency ny discredited:' cal leaders failed to deliver and inspire continues," said Surya Bahadur Thapa, The United People's Front, consid­ people from their deeds, Maoist rebels fonner prime minister and chairman of ered to be the political outfit of the Com­ tried to fill in the void by giving popular Rastriya Prajat.ntr. Party. the third largest munist Party of Nepal (Mashal)- later slogans and intensifying conflicts both at party in parliament. He. however. did not known as ePN (Maoist), was the third the local and national Icvel, say analysts. say from where such a threat will emanate. largest political force in the parliament Impact of "People's War" Wecould gathersomc indications fro ~

arterthe general electi ons of 1991 . Though The "people's war" has had its impact an interview given by Comrade Prachan < itdid not have decisive numbers (with only in almost all sectors of the NepaJi society. general secretary of the Maoist party. to nine members in the 20S-member House Besides law and order, economy is suffer­ Revolutionary Worker magazine in early or Representatives). the party used the ing due to the on-going insurgent activi­ 2000. ''There are big conlradictions among parliament to "exposelt the system rather ties. The rebels are said to be targeting big the ruling classes (in Nepal) and there is than to fulfill people's aspirations. The industries, joint velllure companies and also an unstable situation with India. Ulti­ UPF, led by Or. Baburam Bhattarai, boy­ major businesses in the country. They oc­ mately. we will have to fight with the cotted the 1994 mid-term polls and pre­ casionally explode bombs in the premises Indian anny. We will have to take into sented the 40-point demands to the then of those businesses that don't patronize account of the Indian army," said Sher Bahadur Oeuba-Ied coalition in early them with "donations." No major invest­ Prachanda. The Maoist leader was of the 1996. Within a month , the Front supported ment has come over the last couple of view that Indian forces would uilimately " people's war' launched by the CPN years. Tourism is the first victim of insur­ enter Nepal 10 protect their interests if the (Maoist) and all its top leaders went under­ gency. Besides tourism. education sector 'people's war' gained strength and pro­ ground. is also suffering out of the insurgency. All tracted over a longer period of time. By raising arms agajnst the establish­ schools and colleges remained closed for Prime Minister Koirala, during hi s ment, the ePN (Maoist) has placed itself one week late last year at the call of visit to India last year, tried hi s best to into the center of national politics from the ANNFSU (Revolutionary), a sister orga­ assure the Indian government that Nepal periphery. Its leaders claim that it is the nization of the Maoist party. The National will 1101 allow any anti-India activities from only mainstream communist force in the HumanRights Commission has expressed Nepali soil. In turn. he urged Indian au­ country. though the Communist Party of its concern over the growing violation of thorities to check activities of NepaJi Nepal (Unifi ed Marxist-Leninis!) party is basic rights during the course oflhe Maoist Maoists in India. Given the more than

20 SPOTLIGHT/APRIL 6,2001 COVER STORY

1,600 km long common, open border be­ publie the whereabouts of its members and extra-parliamentary forces like the Maoists tween {he two countries it would be a leaders, release them from detention un­ into its fold. In raCI. they have gota breeding dirficult thing rorthe Indian governmentto conditionally. and stop alleged "state ter­ ground due to brewing corruption, poverty do. even if it wanted so. rorism" immediately. and unemployment in the country. As the Maoist leaders, too, accept that they Though belatedly, the govemment re­ government can't channel its scarce re­ are receiving international support for the sponded to these demands and made public sources to fight insurgency for long, it must cause of their war. "In the whole processor whereabouts or nearly 300 Maoist activists go ahead with peace initiatives the final preparation (to declare ' people's under its custody or behind bars. The rebel By adopting "Marxisrn-Leninist­ war') there was consistent international leaders, however, dismissed this imponant Maoism-Prachanda Path" as their guiding involvement. There was the Revolution­ geslUre saying that it was a ploy 10 save the philosophy and demanding for an interim ary International Movement (RIM) Com­ beleaguered Koirala government. government with representation from all miltee and from the RIM Committee. we As the domestic and international pres­ sides to rom, a "peoples constitution." the got the experience of the Peru Communist sure is mounting upon the government as Maoists have indicated that they want to Party. We went to Bihar and Andhra well as the rebels to start peace initiative. panicipate in the parliamentary process Pradesh states or India and tried to under- both the parties seem to be trying to put sooner than later, say analysts. "But they nd the practical situation and practical themsel ves on a strong posi tion from where don't want to hold talks with the Koirala roblems of armed struggle there," said they could bargain hard as and when they government as long as the present political Comrade Prachanda. in his interview. sit across the table of negotiations. The stalemate doesn't come to an end." said Failure of Peace Initiatives government initiated a process lO set up a Shyant Shrestha a pro-left academic. "In The high-level committee formed to 9,OOO-strong 'anned police force' under fact, their latest attack at Rukumkot seems recommend ways to resolve the Maoist the Home Ministry to combat in surgent to have been motivated at forcing the Koirala problem, headed by Nepali Congress leader activities within the country but has fai led government to resign." and fanner Prime Minister Sher Bahadur to get it through U,e Deuba, said peace talks were the best thing parliament. The to do to end the politics or violence in the rebels, too, have re­ country. Deuba. however, alleged his own portedly started re­ party's government [ornotcooperaLing him cruiting morc guer­ to hring the rebels to the table or dialogue. rillas in their slrong­ As ir to outbid Deuba, Deputy Prime holds to take on the Minister Ram Chandra Poudel managed to government forces. talk to a rebel leader. Rabindra Shrestha, in Resolving the October2000 through the intermediation or Conflict a human rights activist, Padma Ratna Tu­ Though the gov­ ladhar. Though both the sides termed it as ernment forccs and fonnal contacts; people werchoperul that Maoist rebels seem lO melhing positive would becoming in. Af­ be coming face to ter his dramatic release in early November face,there is no other last year, Dinesh Shanna, a central commit­ viable alternative to Rescuers transporting the dead and injured: Senseless violence tee member or the Maoist party, along with cnd this conflict than hi s colleague Dinanath Gautant, told repon­ to bring the rebels to the table to negotia­ There are other bi gger issues too. "'The ers in the capital that they denounced the tions, say analysts. "It is the right of the most worrying factor is that the gap be­ violent means adopted by the Maoists. government to take necessary measures tween the ruling clites in the capital and Sharma refuted the statement made by (such as setting up the armed police rorce) people in the far-flung areas has further him within a few hours saying that he had to strengthen security apparatus within the widened and there is no communication done so under duress leading to 'cold rela­ country, but the best way out is negotia­ between them." said Pror. Kapil Shrestha, tions' between Lhcaulhorities and the rebels. tions," said Prof. Dhruba Kumar. member of NHRC. who has recently re­ Though both the sides maintain a 'war­ ''This connict could have been pre­ turned to the capital after visiting Maoist , ring posture, analysts say Maoists are beef­ vented to a great extent if the previous strongholds of Rukum and Rolpa. ing up attacks only 10 pressurize the gov­ governments had acted sincerely. Even "Unrortunately, you can't find a solu­ ernment to initiate talks. Newly elected now, if the government acts seriously itcan tion to the problem or insurgency rnilitar­ chairman or the Communist Party of Nepal still be prevented from getting escalated.' ily and right now, there is no congenial (Maoist), Comrade Prachanda, has said his Given the geo-political situation of environment for peace talks." party would sit ror dialogue only if the Nepal, neither India not China would want As such, the sounds or guns will con­ government created ' minimum environ­ to see an outbreak of major insurgency in tinue to be heard in remote Nepalese hills, ment' for it. The 'minimum environment,' this Himalayan kingdom. Nepalese democ­ once known for their beauty and tranquil- according to the rebels includes making racy still has enough space to accommodate ity around the world. •

SPOTLIGHT/APRIL 6. 2001 21 INTER VIEW 'Security Threats Seen By Potential Investors May Not Be Real' -DR. RAM SHARAN MAHAT

Though he accepted his flew assignment rather re/ltc· tion-related activities take place at the end of the fiscal tWiT/v, Finallce Minisler DR. RAM SHARAN MAHAT year, which is very unhealthy practice. I will see to it that swwig into actiorz as soon as he Ol'sltmed office af Bogl! this doesn't happen next year. All the construction activi~ Durbar last monlh. Realizing lhatlhe budgetary deficit ties will have to be completed by the third quarter of the was rising as the revenue collection was Jow, he decided fiscal year so that the last quarter of the fiscal year is to mobilize ar",y personnel at lhe borders to check illegal devoted mainly 10 monitoring and evaluation. That will trade. One a/the architects a/the economic liberalization ensure berter quality in the development projects. in the cowztl)'. the fanner Foreign Minister spoke 10 The business community has been complainin KESHAB POUDEL and BHAGIRATH YOGI ac his the deterioratinglaw-and.order situation and gro residence Monday on comemporary issues. Excerpts: incidents of violence. Of course, we are taking this issue very seriously. 'The Finance Ministry re<:enUy concluded its mid­ There have not been any recent attacks on industrial term review of this fiscal year's bud geL In which areas houses. There were one or two cases some time back. but you wiU be focusing on the basis of its findings? there have been no such cases of late. As indicated by the mid~tenn review. the area where The government has mobilized army personnel to we have to be more alert is on the question of regular check iUegal trade. Is it a short-term measure? And, government expenditure. The regular expenditure of the what could be its security impliC'dtions? government has been rising very fast. The liabililiesofthe Of course, it is a short-tenn measure. We are not government in future will increase further. The govern~ using the anny per se to control cross-border smuggling. ment has very little control overthe expenses such as wage We are using them as our customs guards. We have a bill. pension. security expenses, debt services, etc. Il will provision of customs guard~. At the momentlhey are not be very tough for me to remain within the budget in the properly trained and properly equipped. As a resuJl or next half, So, this is the most worrisome part of our which this group was not able to control lhe cross border finances that the Finance Ministry is concerned about. smuggling. As a result mere have been customs leakages Arresting the tendency toward increased pubJjc liability and all that. So we requeMed the army to provide their will be my main preoccupation. Something to that end will personnel on a temporary basis who could be mobilized as be announced in the next budget. cuslomsguards. TheirlotaJ number IS not large. Thisgroup The Public Expenditure Review Commission will be there fora maximum period orthree months and we (PERC) has also made some recommendations to cut may ask for another group to do Ihc same job unless we down unnecessary government spending. What will create the customs guard. The experience shows that they the government do to implement them? have been very effective. BUI it is too early 10 pass a If the present trend of public expenditure continues, judgment. There are security implications in the sense t it will simply be not sustainable. Regarding development cross~border crimes and criminal activities have COL expenditure, we have thousands of small projects where down and people are happy. resources are scattered. So, we need to consolidate them. For the last few years, the privatization process We have to prioritize thedeve!opment projects so that you has come to a virtual standstiU, Do you have any plans can get better returns on the investment you ma).::e. There to re-start this process? are other recommendations about public sector and ex.­ Even in the past. we made severaJ attempts to privarize panding public enterprises and institutions (to which we public enterprises. But this is not an easy thing. Privatization will give due attention). has a lot of socia-economlc, political and labor implka~ \VilI you continue to present the budget weeks lions. The first phase of privatization was a smooth affair. before the end of the fiscal year? But we encountered various problems in the course of Yes. we will stick to the time table as in the last year. implementing privatization programs in the second phase. "We are not that is, we will presenlthe budget well in advance so that It is not for lack of government commitment but because it could be approved by parliament before the end of the of some practical problems. Look, for example, the using the army fi scal year. Then we will have a whole year to implement privatization of Nepal Tea Development Corporation. h the budget. Though this year' s budget was presented quite took so long as one or the other problems continued per se to control earlier there were slippage in implementation, decisions coming up. You can't do privatization in a mechanical cross-border were not taken in time. Appropriate modalities were not fashion. But on the whole we want to go faster and we are decided in lime, contracts were nol awarded in rime, going in that ctircclion. But the pace in which to move in smuggling. We institutional frameworks were not created in time. The that direction is not entirely in the hands of the govern· result was that activities could not be implemented as ment.ln a democracy everything should be done in accor­ are using them scheduled. We expect to bring about improvements in this dance with law and building consensus. That is why it as our customs scenario. The implementation schedules of various devel­ can't be a quick affair. opment projects will be decided wel1 in advance so that Some export-oriented companies are complain­ guards. " these activities can be implemented in a timely manner. ing about the problem related to duty drawback. Will Most importantly, the problem is that mostoftheconstruc- you take some steps to address the problem?

22 SPOTLIGHT/APRIL 6.2001 INTERVIEW

Certainly. I will give more ""'------1 be blamed for this scenario? attention 10 resolve the problems Firslofall.1 don't agree with related to duty drawback system. this perception. Every young de~ I have already asked the concerned mocracy has to pass through such officials to altend to this problem. phase. After the restoration of de­ I hope wewill be able to findsome mocracy a decade back, people's solution to this problem in the aspirations have been quite high near future. and the governments haven't been Is the government serious able to perfonn according to their about the declining foreign in­ expectations. Whentheyseeprob­ vestment scenario? lems. they see misuseofpowcr. a Of course. this is a problem. wrong impression is created. Es­ pecially among the Nepalese in­ • We will do everything 10 make the situation favorable 10 foreign telligentsia, whether within the "[ hope every inveslOrs. Part of the problem is country or abroad, there is lot of due to perceived security threats negativism as is the case 111 the thing will be as seen by the potential investors, society. People tend to sec wrong which may not be necessaril y true. things almost cverywhere. Many fine and there Bv and large. economic activities good things have also happened e not been affected because of over the last 10-) 1 years. Issues will be no let up l Maoist problem. Weareaware like corruption were hidden in the and no slow of these issues. past and also because of the fact What could be the impact .... =-____ :..._...... ;...... lIlhat other countries have pro- down in the of the recent Indian budget OD gressed much faster than us there the Nepalese economy, especially due to provisions is a feeling of clisenchantment. We all have to share the reform process" related to labor and liberalization of foreign trade blame and those who are in power will have to share more. regime? As a leading personality among second genera­ We are studying the likely impact of the Indian tion Nepali Congress leaders, would you personally budget. As and when necessary wc will have to make come out in the open in the contest for leadership? necessary adjustments in our policies. Even then I feel that I am not in a hUrry. I believe in works. 1 am a man of we still have some fiscal incentives (to offer to the inves­ conscience. I am a dedicated worker of my party and tors). We haven't completely lost the comparative advan­ believe in well-beingofmy country. 1believe in hard work tage that wc had. We still give more incentives on the and also believe in destiny. taxation fronl, foreign exchange and tariff level. Labor is How do you see the role of the Speaker and Prime onc issue where India has gone one step forward in this Minister in the non~functioning of the Parliament? reccnt budgct. This is something where we may need to If anybody's responsible for the present stalemate in look into. the House. it is the opposition. Mainly it is the main Exactly a year ago, the government had made opposition party that has taken a totally irresponsible commitments at the Nepal Development Forum meet­ position by physically obstructing the process of the ing in Paris about kick starting the second generation House. It is totally undemocratic and unconstitutional. If of reforms. Dut things don't seem moving in that they think that the Prime Minister is COITI.lpt, let them ask direction. Would you comment? for more power for the Commission for Investigation on We are very much committed to economic reform AbuseofAuthonty (Cl AA). The government isextending grams. Only a few days back. I organized a meeting of full cooperation to them in conducting investigations. The our development partners in my office in which we reiter­ disruption of house is only unfortunate. They arestrength­ ated our commitment for second generation or reform ening the hands or those forces that don't believe in the programs. So we are very much on board. constitutional process. If they are against the Prime Min­ What could be the impact or the reinstatement of ister, why don't they introduce a no-trust motion, why Dr. Tilak Rawal as the Governor of Nepal Rastra Bank don't they hold debate in the parliament. bring motion of in the proposed banking sector reforms? public importance, ca1l attention motion etc. There are Things will go as usual. I hope every thing will be fine enough tools and procedures in the parliament to bring the and there will be no let up and no slow down in the reform government to book. I believe the Spcaker has enough process. In fact. this is a government program and every­ ammunition in his hand to conduct the house. Perhaps. he body who joins the government will be fully committed to doesn't want to create an ugly situation in the House and this process. still wants to persuade the opposition, before he uses the Now to switch over to the political issues, how do last resort. you view the ongoing feud within your party that has Now that the law and order situation has deterio­ led to non-performance of the government? rated so badly and the Maoists are advancing quite The feud is partly power struggle. partly a result of fast, don't you think the Prime Ministershould resign? some past prejudices and hang-ups. $0. 1 hope the solution 1 agree that the law and order situation has deterio­ to this feud lies in proper power balance and reconciliation. rated. But as long as Prime Minister KoiraJa enjoys a I agree that this feud has partly affected the quality of majority in parliament, you can't throw this government governance. If there are complaints about non-perfor­ out. Of course. the response of the government to the mance of the government it is partly related to our intra­ Maoist threat has been inadequate. But I know that there party fcud. is no popular support for the Maoists. They have forced The people abroad now seem to have formed a people to support them out of intimidation. force and very negative image about the functioning of the demo­ terror. So, we need to use aJl our resources in a coordinated cratic system in our country. Who do you think should and unified manner to address this problem. •

SPOTLIGHT/APRIL 6. 2001 23 TRENDS

Helpful Hints On Preparing Ice Cream

ByUZWALBHATTACHARYA

~1akjng Your First Batch Fin.l. have all your mgredients chilltng in lhe refngeralOT Second, prcpare your ice by filling aclmh hag ::U1d breaking It into coarse pieces using a maller or hammer Third pial'\! your stainless steel cream can mtolhewoo<.!cntubsQ(hat il r~tseasilyo Ihl: metal tuh center In the nollom of the It Insert your da..\her in the (.In mllkmg sure tha the protrusinn 011 the hmtorn or the c£cam can fits 1010 Ih~ s(){,:kct of the d,l"hcr Fourth, pour your r(,L'lpC into the (:ream C3n, never filling the ~an more than half full Assemble the can l'ovcr and turn the dasher consumers UUonll'" la the stem with your finger~ until it turns frcdy Fifth. pJ:Jl'C Ihe gear-frame into position by gn.\sping the gcar-fmOlc and eng'ige the ICE CREAM dashcr stem into the socket of the gcar~fr:Jmc If you have a hand crank freezer. shde the crankmgcnd imothc lubcar The opposite cnd SCOOpS Of Solace of the gear-frame IIts Into the tub lalch. Gently push the thumb laLch Jawn until the gear~ is here and so is the frenzy for Ice cream frame is ·mug. If you own an electric unit. be Summer sure to hold the unit with the label facmg you among the people of Kathmandu. Insert the right Side 01 the unit into the steel car and the left "ide (marked latch end) lit~ into the latch, gClltly push the thumb latch down until By AKSHAY SHARMA have their ice cream in cups. The others go unit is secure. for cones," he says. "The traditionaJ ice Finally, it is !tme to fill the wooden I s­ s not in demand these days." arihar Gupta, a nativeofSirahadi crcam stick are with ice. Fill your luh to the top ofthe can wit is enough to tri et in the eastern lerai , wheels hi s Mention or lhose slicks ice. Crank or run your molor for about 2 H "Ice cream then Addcups ice cream cart around Katlunandu to earn a turn Susmita nostalgic. minutes!lo that the can chjll~ evenly. and ice mell$ li ving. "r have about 100 customer on an meant a stick with reddish colored of rock salrto the top otlhc: Ice. As the (0 add more ice and 2 more average hot day. But in colder times, not enticingly navoured things which vendors down 2 inches. [ cups of salt. The amount of ice and rock salt many buyers are around." used to sell ror 5 paisa." she recalls. " use will vary according to the ambient ilir The ice cream scene has change. In haven' t had one of those in a long time." you tcmpcranlre. Do not IIlcrea:;.e your salt usage rs. there has been a s urge in To some, ice c ream brings a welcome recent yea until you have churned the freezer for 10 s and brand names. respite from the pressures of modern times. culoes, flavors, parior minutes. After 10 minutes you should noti~e Move 'n' se limes. when more and more people "Names like Baskin Robbins, "I n the the cream becoming firmer At this point, if too by the Pixs were nOl common before. The street are stressed out and are consumed much salt i.l., Ilsed the result will be excessive vendors were doing brisk business," says difficulties arriving ina world where nOlh­ freezing to the extent that a cru~t of frozen 45-year-old Susmita Dhakal. ing is certain and nothing is safe, ice cream cream will forc. on the inside edgc of the can If this The ice cream sales graph rises and provides the escape," 19-year-old Anu while the middle Will remain liquid. to warm up and there­ falls with the mercury. But since ice cream Cheltri says. "When that cold, sweet, re­ OCClIrs, allow the brine after decrease the amount of salt added when has become a rashionable componenl or freshing bit of ice cream melts in your you add ice the changing social trends of urban mouth, all your concerns melt away with Kathmandu. the season is nOl the only it. .. NOTE: Occasionally, your Jllsherhlade screws more selling point. Teenager Gaurav Thakuri is thrilled may loo.ttm allowing the blt,de,f1omove dasher. Simply screw fhe "My employer has 10 other vendors," by the therapeutic value of ice cream. "Life, thall 1I8"from the L-______to JIB" amI remmeJreezing.__ Harihar says. "People usually prerer to for one brief moment, is sweet, tranquil, bl.ades down

SPOTLIGHT/APRIL 6,2001 24 TRENDS

and all is right with the world. Now ice cream is not a religion, nor is it a substitute The Old-fashioned Way of Making Ice Cream for religion. Ice cream has nothing to do with faith. But it isastrong medicine. Ilean You can pack your cream for hardening right in your freezer by scraping It back ilHO the cream change your priorities and transfonn your can. Place a sheet of waxed paper across [he lOp of the can, press the can cover down over waxed life." paper and plug the hole in the cover with either acork slUpper or tape. Drain off water, repack the hI have always believed thatagood ice freezer with tive parts ofiee and 1 part salt until entire can is covered with ice and sall mixture. cream wants to be; a good ice cream freezer Next, cover with burlap bag or some suitable material for insulation. Then lelll stand until frozen all ows it to happen. I also believe that ice hard. cream freezers hold inherited family memo­ ries of summer afternoons and childhood Peoph! that have discovered in the last 140 year:s ways of making home-made ice cream so special. delights. Old ice cream freezers always evoke deep memories of past generations." Here are some helpful suggestions: "Has anyone ever thought about the I Protect all working surfaces With newspaper. Salt is corrosive. Be carefuJ nor to kill valuable backyard grass when making ice cre

Discontinue Churning vice!" said Uzwal Bhattacharya who used gone up because people take out family When your ice cream mix has been churned to work the Nepal Dairy. packs. I have seen kjds badgering their bufficicntly (usually about 20-25 minutes) A growing numberofpeople also tend parents into buying ice cream." and becomes the consistency of soft ice lo make ice cream at home, because most He adds: "TIle ice cream parlors are cream, it is ready for packing. The time can middle-class families can afford a refrig­ usually tile bigger seliers, because on-the­ best be determined when it becomes difficult erator, says a sociologist. The domestica­ spot display boosts sales. Places like ours to rum the crank handle. or the molor begins to sound like it i!) really straining. Manually tion of ice cream in Nepal has led to experi­ suffer because we have do not get the advan­ unplug your motor unil whcn you hear it ments of all sons. But eating out has not tage of displaying more than one brand." straining. rurther churning will not improve lost its appeal. "Nepal Dairy seems to be leading in the quality ortlle ice cream. Now remove the "Couples are the main customers at the ice cream competition," Neupane adds. can cover. Take the dasheroul and scrape off our place," says Rajendra Neupane, who BUllhat, obviously, is not adone deal. The excess ice cream with a wooden spoon. Your works at the Royal Alina's Bakery in heat is on for consumers and competitors Ice cream is now ready to eat and enjoy! Iawalakhel. "Our ice cream sales have alike. •

SPOTLIGHT/APRIL 6, 2001 25 REVIEW

it is virtually impossible to deliver justice to BOOK crime yictims. In reality. there is no place for crime victims in the judicial process. As the accused is the main figure of the criminal Law And Injustice justice system, the pain and suffering of the victims recede into irrelevancy. An expert provides a mirror image of the victim justice While basing his work on the Nepalese experience, Or. Shrestha also deals with im­ system in Nepal portant international conventions and defini­ tions of the victim justice system. He cites By KESHAB POUDEL government attorney, has made a commend­ major decisions taken by Nepalese and for­ able effort to highlight various aspects of eign courts on the subject. eople victimized by criminals or Nepal's victim justice system. With a varied Or. Shrestha also analyzes the existing P wronged by society and its laws have experience of nearly two and a half decades legal system on victims, including the Muluki recourse to legal remedies. However. in many in the field, Dr Shrestha is well acquainted Ain 1963,StateCasesAct. 1992, Vehicle and cases, a victim has to pass through several with criminal justice system. During his ca­ Traffic Management Act, 1992 and harrowing phases of indignities before gel­ reerin thejudicial system, Dr. Shresthaserved Trafficking Act (Control) Act 1986. ting the offenders punished. as a government attorney as well as ajudge in Shrestha also makes a probing evaluation of In their quest for justice, victims are four district courts. constitutional provisions. rorced 10 repeatedly recount graphic details As a government attorney, he defended Following the restoration of multiparty of the horrors perpetrated on them. The situ­ hundreds of cases in court, protecting the democracy, many books have come out on ation of the victims of rape, girl trafficking privacy and interest of victims of rapes, girl di fferent facets orthe judicial system of Nepal. and domestic violence becomes pathetic par­ trafficking and domestic violence. As ajudge Dr. Shrestha has attempted to encourage an ticularly when they are being questioned in of district courts, Dr. Sltrestha has first-hand infomled discussion in the new area of an open court. In practice. victims have been experience of the lapses in procedure and victimology. forgotten by the justice system. other complications in the viclimjuslice sys­ One of the important strengths of the Dr. Shankar Kumar Shrestha, a fanner tem. book is that it is based on the experience and "The old historical principle ofjurispm­ experiments or Nepalese legal system. To dence has failed - the principle that the foreign readers, too, it offers highlights of the system provide justice to victims both in Nepalese victim legal system. The book ternlS of compensation, rehabilitation and should prove helpful to both scholars and The situation of social succor and at the same time punish­ sludems of Nepal's criminal and viclimjus­ mem for the criminals in terms of imprison­ lice system. • the victims of mem, fine, compensation and r:~-:-~~~;:-:::-;:~-:-~:-:---:=-:-:::::-:=-~-__ ., social boycott;' said Dr. MANAKAMANA CABLE CAR rape, girl traffick­ Shrestha. ~ lntheexistingsystem,the ~ ing and domestic police,asastateparty.investi- "'J~~ ~ gatethecaseandcompletetheir 'h~ .,<1~ violence becomes duty by analyzing whether a .c.,.' . _ crime is committed or not. ':tJ pathetic particu- However, they do not probe Since the 17th Century. whelherthecrime victim needs MsnaksTDans te:Dl.ple has larly when they succor or how is he or she is been 'Widely venerated suffering from the trauma becaue of the belief that . . MsnaksJ'Tlana Devi Fulfills are being ques­ According to Or all wishes. Shrestha, the prosecutor pros- Today, instead of the tioned in an open ecutes the case in the court 4 to S hour arduous trek, with a charge sheet mostly Manakatnana is no'W court. based on confession, not on accessible in just 10 factual evidence. He does not Dlinutcs by Manakarnana Cable Car. have the authority to ask any­ A Step Towards Victim Justice System, thing for the welfare of crime Nepalese Perspective By Dr. Sha1l/cer Kt/mar Shrestha victims. Finally, there is the Every ~assengcr Insured Upto Discount Published by Pairavi Prakashatl, court, where the judge deliv- ~ ;KI_~CJt'.. .c..CJooQo. Kathmandu ers or discharges his or her . . decision _ and ethically jus- ! ~ MaraI<

26 SPOTLlGHT/APRIL,6,2001 THE BOTTOM LINE

By M.S.KHOKNA

ZJho is the rnext P.

take allowance for the ongo­ Rawal, as the governor of the of two missing trekkers - TRANSITION ing 19th session of the parlia­ Nepal Rastra Bank, by the Michelle Hackelt, a flight ment, "as the present session Supreme Court. sergeant in the Australian Air has failed to do anything con­ Force, and her eight-year­ LEFT: Foreign Minister crete 10 resolve the problems FILED: A writ petition at the old daughter Kathleen Chakra Prasad Bastola, for facing the people." He is the Supreme Court, by two advo­ Cassandra, who were Denmark and Finland. first lawmaker to make such cates Chandra Kanta swept by an avalanche, by Bastola will hold discussions an announcement. Gyawali and Thakur Raman rescuers. with senior Danish and Finn­ Acharya, seeking revocation ish officials on matters of bi­ REJECTED: The resignation of those clauses in theConsti­ RETURNED: Ram Krishna lalcraJ interest during his of­ tendered by Defence Minister tution that do not allow a Tamrakar, Minister for ficial visit. Mahesh Acbarya, by Prime Nepali woman 10 lIansfer her Health, after taking part in the Minister Girija Prasad citizenship right to her chil­ 25th meeting of health minis­ ANNOUNCED: Nepali Koirala. dren. ters of non-aligned countries, Congress lawmaker Narayan held in Johannesburg, South Singh Pun, that he will not REINSTA TED: Tilak RECOVERED: The bodies Africa. •

SPOTLIGHT/APRIL 6. 2001 27 PROFILE

pointment as secretary. Dahal worked as KASHI RAJ DAHAL spokesman of the Supreme Court. He has participated in several seminars and is associated with committees formed by Courtly Choice Lhe government. Dahal was also associated with Con­ Dahal becomes the youngest civil servant in the judi­ stitution Recommendation Commission 1990 and the high-level Mallik Commis­ cial service to reach the top of the ladder sion. As an active member of Nepal Law Society, Dahal has visited various parts By A CORRESPONDENT perrorm my duty in accordance with the of the country to lrain decentralization responsibility given by the act," said workers. Dahal. "] will work in a transparent man­ Although the Judicial Council was A fter King Birendra appoi nted him ner in the transfer of the judges and other formed a decade ago, it is yet to develop ~ s secretary at the Judicial Coun­ employees." a proper work pattern and sort out othe cil. Kashi Raj Dahal became the young­ Born in Lekhani Pokhari of vital issues. "My first priority will be est bureaucrat in the judicial service to Udayapurdistrict in eastern Nepal, Dahal develop the working modality for the reach the top of the hierarchy. Forty-two­ has master's degrees in political science tran sfer and promotion of the employees year-old Dahal is a well-known cadre of and public administration. He secured working in the judicial sector ," said the judicia1 service. Having entered the the top posiLion in B.L. examination, Dahal. " I have already started to develop service in 2040 as a section officer, Dahal winning a gold medal. Dahal has pub­ a transparent mechanism for the transfer climbed up the ranks to become assistant lished more than half a dozen books in of judicial officials." secretary, under secretary and joint sec­ retary. Although the Judicial Council was The Judicial Council has the major responsibility in th e recruitment, promo­ formed a decade ago, it is yet to de­ tion and transfer of officers in the judi­ ciary service and judges in the country. velop a proper work pattern and sort According to the Constitution of King­ out other vital issues. "My first prior­ dom of Nepal 1990, another important function of the counci l is the disciplining ity will be to develop the working mo­ ofjudges. The council's jurisdiction also dality for the transfer and promotion includes making timely suggestions on issues related to judicial administration. of the employees working in the judi- "1 am committed to the professional development of judicial cadre and I will cial sector," said Dahal. the areas of women and child rights, Dahal 'sjob is not easy. Transfers of constitutional law, criminaljurisprudcnce the gazettedjudicial employees and oth­ and industrial law. ers have largel y been done on an ad hoc The Judicial Council also has re­ basis. On many occasions. political in­ sponsibility to submit recommendations nuence has played a role. As member 10 the King on the sacking of judges and secretary of Judicial Service Commis­ to take action against judges of the Ap­ sion, Dahal also has the responsibility pellateCourt. It organizes training. semi­ to recommend the appointment, tran s­ nars and other activities with an aim to fer and promotion and depanmental increase the skills and efficiency of per­ action against people holding the rank sonnel in the judicial service. of up to gazetted [[] class officer. The The Judicial Council Act 1990 also commission also prepares curriculum gives certain importantdulics to thecoun­ for the examination for the judicial ser­ cil, including preparing and updating the vice. bio-data of potential candidates for ap­ At a time when everyone is talking pointment as judges. Dahal, who has about the need to make the judicial sys­ held several positions in many bodies, tem more efficient. th e kind of changes has also taught at Nepal Law College of Dahal brings would be closely watched. Dahal : Deserving candidate Tribhuvan University. BeFore his ap- •

28 SPOTLIGHT/APRIL 6, 2001 PASTIME

Nepal's Foreign Policy During Nepali Now In Town BOOK Congress Government Y.P. Adhikari 12000 Rs. 200.00

The Newar Merchants in Lhsas Annual Survey of Nepalese Law 2000 Kesar Lalll 200 I Rs. 150.00 Kumar Regmi 12000 Rs. 250.00 Nepalese Postage Stamps: Different The Ancient Settlements of the Kathmandu Valley Themes Single Denomination S.R. Tiwari 1200 I Rs. 300.00 D.P. Pandey 1 200 I Rs. 150.00 Constitutional and Political Development in Nepal Nepal Yearbook 2000 Events of the Year 1999 R.K . DahaI/2001 Rs.595.00 R.C. Arya 1 2000 Rs. 300.00 The Coinage of Nepal Privatization: Expectation and Reality N.G. Rhodes 1 K. Gavrisch 1 C. Valdenaro 1 1989 Rs.5500.00 R. Adhikari 1 K. Adhikari Rs. 150.00 . Conflict and Crisis of Resource Allocation in the Agricultural Go>ve"m,billitv in Nepal Sector in Nepal: Analysis and Impact of Policies Dhruba Kumar 1 2000 Rs . 525.00 Mil an Adhikari 12000 Rs. 1330.00 Land and Social Change in East Nepal Lionel Caplan 12000 Rs. 325.00 (Source: HinUlloyolI Book Cemer, Bagh BOlOr. Kalhmalldll, Ph : 242085)

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SPOTLlGHT/APRIL 6, 2001 29 LEISURE

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30 SPOTLIGHT/APRIL 6.2001 I' LEISURE

CROSSWORD BRIDGE

NORI'B ,.U 68 9 Q 9 82 t 10813 6 KQJ8 WEST EAST • J 9 6 4. • Q 10 5 2 943 9'5 tAQ tK962 .109163. A52 SOUI'D • AK7 3 .AKJI07 t J 5 4. 6' Vulnerable,,,,,,,, Deoler. South 1beb_ South West North EosI 1 9 Pass 3 9· Pass 4. 9 Allpass • -limit raise ACROSS DOWN Opening lead: Club 10 I. Woman detailed la speak seen to im- I. Jargon heard in old ship (5) "Water willllot slip through the prove (10) 2. Glance by batsman is an unexpected miser's grasp" 6. Capital Radiofs way to check what in- revelation (3-6) - Malay proverb troduces listeners? (4) 3- Reported conversation lacking straight 10. Undergo treatment fi it may be reward- talking (8,6) iog (7) 4. Note the post discussing modernisation? West was the goat nOloftoday's deal. A 11. Illuminated likeTitaniais unlucky meet- (7) born miser. he couldn't resist winning a trick ing (7) 5. Monkey in tropical tree finally faJling as cheaply as possible. As a consequence, he 12. Those in high society return drug, after out (7) allowed SoU[h to escape with his unnamable reflection (3.6) 7. Living quarters wehre one may be fro- game. 13. Skilful, withdrawing a legal right (5) zen out (5) Dummy's club jack covered West's lead, 14. Classic form of dialect used in column? 8. They were struck by the kingfs old mes- and East won his ace. Recognizing that de· (5) sengers (9) fensiveprospects rested with diamonds. East 15. Sleepy region east of 27 (4,2,3) 9. Ne'er-do-well expects benefit without shifted accurately to his diamond deuce. West Thwart made of wood, entirely (9) paying contributions (4-3-7) happily cased his queen and ace. but then Dressed up to display such figures (5) 14. Weight required to pull strings (9) what? Regardless of what he did now, it wouldn't matter, South won west's exit, drew 21. Free head of BBC to leave (5) 16. Speak up if you are willing to do it 23. Investment system that gives one credit legally (9) trumps. and tossed his losing diamond on one (4,5) 18. Separated when anaesthetised? (7) dummy's high clubs. 25. Spotted by CID finally aner warning (7) 19. Confined dishonesty at home (5,2) ';1 was hopping you had the spade ace" 26. Make a face fl dour one (7) 22. Regular payments - the thing to be was West's lame excuse. What was wrong 27. Original plot for creative writing (4) accepted? (5) with his reasoning? 28. Various strangers altending sopranofs 24. Switch lock (5) East's switch to the diamond deuce car· debut misbehave ( 10) ried an important message. Without an honor in diamonds, East would not have led the deuce. A higher diamond would have been a better choice, denying major interest in that suit. Interpreting East's message correctly, West should see the his best shot is to win his SSJJ.L ·Pl J41!.L ·ZZ U! 5u!Al·61 JJpunsy ·81 ;;redn:mnN' '91 ~JuJnuul·PI 5u!410UJOj pooD diamond ace instead of a miserly queen. '6 SJpm!ll\l'8 OOI~I·L U~BWB.L .~ IBMJUJ"M'P tpJJds lJ;:}J!pul'£ p;:}u~0~A3·l 103J\I'1 : UMOa Then he returns the queen to East's king, and a third round ruff beats the game. SS;:}J~SUBJ.L It's human to want to win a trick with 'SZ UJP3"Lt. aJew~D '9Z PJJPoN ·~l lSlUll!Un .£z: ;:}!lUn 'Ie: SJU!N 'Oe: IItnSJJOd ·L( pouJo pmq the lowest card possible. However. as today's ·~I J!UOrPI l!OJa·n J~MBJP do.L 'e:IIHuooW . ( I uOPJJn!) '01 ewn·9 JIBJO!l~WV·' : ssonv deal demonstrates. thoughtful analysis should lead West to an exception lO the NOI.Lfl'IOS general rule.

SPOTLIGHT/APRIL 6, 2001 31 FORUM Deductible Expenses For Assessing Income Tax By RUPKHADKA

Income tax is levied on net income. This means that not all Wages and salaries made to employees are also deductible. income accrued from sources brought into the income tax net is Similarly, interest, royalties and rent are deductible if they are taxable. A part of income is deducted from the gross income in related to the business. However, distribution of profit cannot be respect of various expenses incurred in connection with generat­ treated as expense. It is the resull of the business. So profit is not ing taxable income. deductible, be it the payment of dividends or the transfer 0 Business expenses are the principal deductible expenses. amounts to reserves. Business expenses are those expenses that arc directly incurred Expenses that are not made for preserving or enhancing in earning gross receipt during a year. They are thus deemed taxable transaction are disallowed. For example, non-trading necessary expenses and are deducted from gross receipts. expenses and personal expenses are disallowed. Expenses, which For example, cost of trading stock disposed of during a tax are very subjeclive, are not deductible in order (0 avoid manipu­ year is deductible. However, the cost of capital nature is not lation. Expenses, incurred in generating exempt income or fi deductible. Instead, depreciation on capital goods is deductible withholding taxes are also not deductible. Fines and penalties, during the period of useful life of an asset. If it is not possible to which are paid for non-compliance of laws, are not deductible. establish the uscfullife of an asset, then depreciation cannot be Income tax is also not deductible. allowcd. There are different practices around the world regarding Stan-up expenses related to the business is deductible. business deductions ror the purpose of income tax. Some Similarly, some head office expenses orexpenses ora subsidiary countries adopt an itemized system of deduction. Under this are deductible. Since it is di fficult to check actual expenses made system, deductible and non-deductible items are specified in by a head office or a subsidiary, there is also a practice to fix the law. Under this system no deductions is allowed unless a certain percent of income as expenses. particular expense is specifically included in the list of deduct­ Repair and maintenance expenses, commission, and adver­ ible expenses. Such a system ensures uniform treatment of all tisement expenses are also deductible. Similarly, various taxes taxpayers, particularly in countries where tax administration is like custom duties, excise duties, Value Added Tax (V AT), and young and weak and the accounting system is not well estab­ property taxes are deductible. In some countries, taxes paid on lished. the acquisition of capital assets are added to the cost. capitalized However, it is not possible to provide an extensive list 0 and depreciated. Social securities charges, which are levied in possible expenses of all types of businesses, Those expenses, addition to taxes. are also deductible. which are not included in the list of deductible expenses, are Similarly, insurance premiums are also deductible. Legal or disallowed, which means that tax is not levied on net income but litigation fees are deductible as well. In some countries they are on gross income. Further, some clever taxpayers manipulat capitalized and amortized. For example, legal fees for negotiat­ those expenses, which are not included in the list, by giving fa ing long lease are capitalized and depreciated. Depreciation is names while other taxpayers whodo notdo so orcannot do so are also a deductible item. Losses are deductible. Doubtful accounts discriminated against thereby resulting in unequal treatment 0 of a business are deductible as well. equals. Treatment of entertainment and promotional expenses is a So under the modern income lax system there is a provision problematic area in the field of deduction. Such expenses may to allow taxpayers to deduct all business expenses related to include travelling expenses, promotion, public relations, con­ their taxable income. Under this system, all bus iness expenses vention/meetings, gifts 10 the customers, and business lunches related to taxable income are deductible. No list is given in the for clients. They are sources of misuse also. It is difficult to law of deductible expenses. This approach is based on the establish what is business expense and what is not in this field. presumption that taxpayer is the best person to have the exact In order to minimize abuse and avoid disputes, it is necessary idea of his business expenses and he is the one who takes proper to specify deductible expenses or to fix ceiling such as up to the decision regarding the types of business expenses and their limit of equal to or one and half of allowances fixed for volumes. government employees of similar status. It is desirable to adopt a more liberal policy regarding Donations to specified activities are dcductible although deductible expenses in the context of broad based and low­ they are not directly rclatcd to the acquisition of income. There rated income tax system. Further, the expenses of one taxpayer are different practices regarding the deductibility of donations might be the income of another taxpayer. So, there may not be in different countries. In some countries, donations to specified any, or at least big, impact on revenue, unless the receivable activities, which need to be promoted, are deductible fully. In income is exempt from income tax. • some countries, there are limits in tenns of a maximum account or as a percentage of total turnover or net income. A tax expert, Dr. Khadka is associated with the VAT Project.

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