• Water Resources Crisis In Politics Refugee Verifications THE KHUKRI IS THE FAMOUS NATIONAL WEAPON OF THE GORKHA SOLDIERS OF . KHUKRI RUM IS THEIR FAMOUS NATIONAL DRINK ANYWHERE IN THE WORLD, IN A BATTLE OR IN A BOTTLE, YOU CAN ALWAYS PUT YOUR TRUST IN A KHU}-(R!

THE NEPAL DISTILLERIES PVT. LTD. BALAJU, PH. ; 35091111, 350725, FAX ; 35()971 CONTENTS

Page

Letters 3

News Notes 4

Briefs 6

uote Unquote 7

Off The Record 8 The government prepares to hand over the management of two of the country's largest banks to foreign experts in the latest bid to rescue them from the present mess. HISTORY: Sikh Sway 9 Page 16

BHUTANESE REFUGEES: Waiting For Result 12

LEADERSHIP: Drought Of Ideas 14

TOURISM INDUSTRY: Struck By Politics 15

ENVIRONMENT: Under Threat 21

ATIONAL POLITICS: Fractured Opposition 24

WATER RESOURCES STRATEGY: Rhetoric Vs Reality 25 SPECIAL REPORT: CIAA VS AG The final prosecuting right of the Attorney General comes under fire. BOOK REVIEW 26 Page 10

THE BOTTOMLINE 27

VIEWPOINT 28

PASTIME 29 INTERVIEW: HARI BANSHA ACHARYA One of the most famous faces in LEISURE 30 the country, comedian Acharya talks about his recent successes in film and stage. FORUM: John Adams 32 ~_..:&:lJ~::.:d Page 22

SPOTLIGHT/MARCH 30, 200 I SPOTLIGHT EDITOR'S NOTE THE NATIONAL NEWSMAGAZINE IVo1.2O, No.37, March 30,2001 (Chai1ra 17,2057) I Chief Editor And Publisher Madhav Kumar Rimal n the way back home after a brief sojourn to the United Editor Sarita Rimal States, this scribe is very disappointed to recall how far

Managing Editor behind our country lags from the rest of the world. All of us Keshab Poudel O need to work at least 18 hours a day to transform one of the Associate Editor poorest countries of the world into a developed one. Urifortunately, our Bhagira1h Yogi parliament remains in deadlockfor more than one and halfmonths. The Senior Reporter shameless, corrupt politicians continue to prolong the House only to Sanjaya Ohakal draw their salary. We strongly urge that the House be Reporter immediately and 110 allowances be disbursed to the legislators for Akshay Sharma have done nothingfor the country and their poor countrymen during this Desig" and Layout Jyoti Singh period. We would also like to advise the opposition leaders to go to the people and seekfresh mandate ifthey are convinced that this parliament Photographer Nishchal Chapagain can't solve the country's problems. As we can't hope much from the constitutional monarch, only people can punish a corrupt government Art M.S. Khokna like this led by G. P. , Legal Advisor * * * Advocate Lok Bhakta Rana Nepal may be poor in terms ofdevelopment, but nature has bestowed on Marketing/Advertisement her enough resources to become a rich nation. The Water Resources Sarit Rimal (USA) Strategy Formulation workshop going on in Kathmandu, I suppose, is Marketing focusing on harnessing the country's rich natural resourcefor the benefit Madan Kaji Basnet Nayin Kumar Maharjan of our poor people. We must not forget that all of our political leaders, Madan Raj Poudel whether during era or in the multiparty democracy, have Editorial Office never tired of highlighting the potentials offered by this resource. Some GPO Box 7256. Baluwatar, Kathmandu, Tel: (977-1) 423127, Fax: (977-1) 417845 of them even went on to say that the "Sun will risefram the west" if/his Chief Edito(s : 435594 E-mail: [email protected] resource was utilized properly, People have no basis to believe them as Internet Add: http://www.nepalnews.comJ we have seen that all the corrupt governments of the past have seen this spotlight resource as a means to fulfill their vested interests. There have been no Cover Design genuine efforts to tap this potential by mobilizing international support Wordscape Kamal Pokhari, Ph : 410772, Fax: 432872 for the benefit of the country. Only 15 percent of the population has

Distribution access to electricity and the reach ofirrigation is also limited. So, instead Bazaar International of talking about making Nepal rich by selling power to the monopoly 228 Sanchaya Kosh Bldg. Kathmandu G.P.O Box 2480, Ph: 222983 Fax: 229437 buyer in the South, our policymakers should talk about developing small a-mail: [email protected] hydrapower, community-managed irrigation systems and drinking wa­ Printers: Kishor offset Press (P.) Ltd. ter projects which we can develop and sustain all our own. The poor p.a. Box 4665, Galkopakha, Thamel, Kathmandu,Tel:351044(Off),351172(Res.), Nepalese people have remained cheatedfor long. Please don '{ sell any Fax: 977-1-351172, more empty dreams to us. • E-mail : [email protected]

C.D.O, Regd. No 151/039-40 Postal Regd. No 421057/58 V.S. Library of Congress Madhav Kumar Rimal Catalogue No. 91·905060 Chief Edilor& Publisher

2 SPOTLIGHT/MARCH 30. 2001 LETTERS ______

Gujaral, the people here seem Delicious to have forgotten the clear and present danger of tlUs natural Story disaster. ("Tremors Of Con­ Tt was interesting to cern", SPOTLIGHT, March read an in-depth story on 16-22). If we continue to adopt the ostrich-like behavior of fhe food habits of hiding our heads and hoping Kathmanduites ( .. Chang­ for the danger to go away, we ing Taste ", SPOTLIGHT. would be making a grave mis­ March 23-29). Forsome­ take. Let us join hands and one tired of reading a pressure the authorities la start doing something lO mitigate bout politics alld other the possible effects of earth­ boring stliff, your cover quakes. story came as a breath of Dipesl! Rai fresh air. It gave cm in­ Ihamsikhel sight into the eating hab­ its ofurban Nepalis. Toa NSP's Politics great extetll. food habits The Hrithik Roshan epi­ sode provided the Nepal are an indicator of the Sadbhavana Party fresh impe­ levelofcivilization.! hope lUS to carry on its communal you will pub I ish similar politics ("Mechi To refreshillg stories in fu­ Mahakali", SPOTLIGHT, ture. March 16-22). The holding of the nation-wide chariot rally Radha Karki has exposed the true colors of Kalimati the party. The people of the themselves have rejected the NSP in past elections. We Taste". SPOTLIGHT, March March 16-22). Though Momo Tops The Menu hope the same happens in fu­ 23-29). Scientists and doctors Nepalese authorities were suc­ It is clear that mamo tops ture so that our ethnic har­ have said that meal con sump· cessful in presenting their case the menu of Kathmandu 's res­ mony remains intact. tion simply strains the body's taurants ("Changing Taste". for the establishment of a re­ Dinesh Thapa system. In fact, many doctors gional peace-keeping training SPOTLIGHT. March 23-29). Sanepa But there are apprehensions recommend patients to give center in the country. they about how safety it is. Except up meat after reaching the age cou Id have done better by seek­ Modernize The Bourse for a handful of big and top­ of 40 years. Light vegetarian ing Annan's support in resolv­ meals are not only healthy but ing the Bhutanese refugee There is an urgent need to class restaurants, most out.1ets modernize Nepal's stock ex­ do not seem to give much em­ also beneficial to those who problem. The nearly 100,000 are likely to suffer from high refugees are turning out to be a change ("Bear Comes Hug­ phasis to cleanliness. This ging", SPOTLIGHT, March 9- blood pressure, diabetes or kid­ major problem for Nepal. could pose a major health risk 15 ). To avoid speculation­ to a large section of mamo neyajlments. Annan could use his good of­ Pradeep K/wdka fices to expedite the repatria­ driven oscill ation in future, the eaters. The municipality and authorities should strictly de­ Samakhusi tion of these people to their concerned authorities need to mand true financial statements keep an eye on the cleanliness homeland. from the listed companies and of the meat used to make Samir Shrestha Annan's Visit improve their infonnation sys­ mamos. Kopundole The visit by United Na­ tem. There should also be clear Sujan Baidya tions Secretary-General Kofi guidelines to control stockbro­ Satdobato Clear And Annan provided Nepal a spe­ kers. These measures would cial opportunity to highlight Present Danger GoVeg help restore confidence among its problems before the inter­ After a brief phase of investors. Truly. vegetarianism is the national community C'Peace alarm following the earthquake Bil/aya Dhilai best way to live ("Changing Proposal", SPOTLIGHT, in the western Indian Slate of Chabahil

SPOTLIGHT/MARCH 30. 2001 3 NEWSNOTES

Regional Admn. damage to wildlife was recorded. A pa­ Offices Set Up I ice official at the The government has set up regional Area Police Office in administration offices in each of the five Solukhumbu said the development regions of the country. The fire was brought un­ orrices, set up in Dhankuta, , der control Wednes­ , Surkhet and Dipayal, are headed day afternoon by special-class officers of the govern­ through the joint ef­ ment. Talking to reporters in the capital forts of police, army, Thursday, Deputy Prime Minister and forest officials and local people. The fire, which broke out last Thursday. had ...... engulfed over 3,0 ------square feet of fore initiati vc, to be implemented in collabora­ Officials said burning cigarettes left be­ ti on with the United Nations Children hind by local people who sneak into re­ Fund (UNICEF), aims at generating a stricted forest area to collect fodder might positive impact on healthy living, espe­ have caused the fire. The park houses cially for children. Lack of adequate sani­ several wild fauna, including deer and tation is consideredoneoflhe majorcauses lophophorus. Officials said their efforts to of death of nearly 28,000 children in Nepal put out fire were hampered by lack of every year. The officials launched the specialized equipment. Hundreds of national sanitation action week covering people dug pits in the ground and threw nearly 1,000 village development com­ mud on the burning trees and bushes. minees in the country. The week is part of Light snowfall on Tuesday also helped the five-year advocacy and social mobili­ the firefighters. Thousands of hectares of zation campaign that aims at raising pub­ forests are destroyed by fire in Nepal each Poudel lic awareness at the village level to con­ year. Compiled from reports March 22. struct and use latrines. Only 27 percent of Home Minister said the 23 million people in Nepal have ac­ Five Left Parties the regional administrators will be prima­ cess to latrines at their houses. Authorities Announce Programs rily responsible for coordinating develop­ expect that at the end of the campaign. at ment- and security-related agencies in the least 800.000 families in Nepal will con­ Five left parties, including the main region. Asked about the fate of the ordi­ sll"Ucl and use pennanem and sanitary nances to set up the Armed Police Force latrines and adopt a sanitary and hygienic and amend the Local Administration Act. lifestyle. Director-General at the Depart­ which provides for the appointment of ment of Water Supply and Sanitation, regional administrators, Poudel said the Sohan Sunder Shrestha, said the govern­ government would explore other altema­ ment would encourage villagers to con­ Li ves ifthe current session of the pari iament struct and use low-cost, affordable la­ failed to pass those ordinances. He did not trines. He said such alrines could be con­ elahorate. The government had decided to structed ata per-unit cost of nearly US$30. set up the Armed Police Force and appoint Compiled from reports March 23. regional administrators as a way of con­ taining the five-year-old Maoist insurgency. Fire Controlled In Compiled from reports March 24. Sagarmatha Park Sanitation Campaign The forest flIe that engulfed a huge area of forest in the Sagarmatha national Launched park, at the foothills of . To mark World Water Day (March has been brought under control. Officials 22), the government announced a five­ said their efforts to put out the fire suc­ Oli year nalional sanitation campaign. The ceeded after a week's effort. No major

4 SPOTLIGHT/MARCH 30. 2001 NEWSNOTES opposition UML, agreed Thursday to to function as the entire opposition launch a joint nationwide protest pro­ remained absent. Analysts say if the gram to force Prime Minister Girija government could persuade the NSP Prasad Koirala to resign. The rightist to be present in the House, it could Raslriya Prajatantra Party, which had pass the bills, as the ruling party enjoys joined hands with the communists in the a majority in the lower house of parlia­ parliament in demanding the prime ment. Compiled/rom reports March 24. minister's resignation, however, said it would nol take part in the street pro­ tests. UML leader K.P. Oli said the Maoists Call 'Bandh' protest programs would not be affected The underground Communist Party even if the RPP did not join. "We had of Nepal (Maoist) has called a nation­ successfully launched the people's move­ wide shutdown strike on April 6 as part menl (in 1990) even in their absence," of its agitation against the G.P. Koirala­ Oli said. The RPP was formed after the led government. In a statement, the ovement. Compiled from reports chairman of the party, Comrade arch 24. Prachanada. accused the government of Siogh ignoring his party's recent proposal to Utility Offices form an interim government by includ­ cultural proximity. TheNSPsaid it could ing all the major political forces in the To Open On Sunday help the government to run parliament if country. The Maoist proposal has been The government has decided to open its demands were met. NSP lawmakers seen here as their desire to take part in public utility offices, including drinking were boycotting the House for the last parliamentary politics. albeit with some water supply, electricity, telecommuni­ few days after the speaker included the reservations. Compiled from reports cations, and financial offices and banks bills on the agenda. The House has failed March 22. • from 10 a.m. to 5 p.m. Sunday to Friday effective April 14, 2001 , RSS news agency reported. A decision to this effect has been taken with a view to reduce growing vehicular movement in at one particular time and render services to tbe people in a smooth manner, the Ministry of Infor­ mation and Communications said. The overnment had enforced a two-day weekend in all government offices in the capital valley since mid-August last year. Compiled from reports March 22. NSP Wants Amendments To Ordinances Nepal Sadbhavana Party (NSP) has said it could support the ordinances on Armed Police Force (APF) and Local Administration amendment Act if some amendments were made. During a press meel organized here Thursday, President Help Nepal Network, an organization of Nepalese living abroad, and ofNSP Gajendra Narayan Singh said the power delegated to the regional adminis­ Ahwan Samuha,jointly organized the first phase of Hepatitis B Vacci­ trators by the proposed bills could be nation Program at Chabahil recently. All the volunteers of Help Nepal misused to suppress the opposition. He Network Nepal took vaccines themselves and with the money they had also demanded that the five development raised they offered free vaccinations to 20 people. Perhaps, this is the regions of the country be re-demarcated first program of its kind in Nepal. on the basis of their geographical and

SPOTI..IGHT/MARCH 30, 2001 5 BRIEFS

OPPOSITION LEADERS HAVE URGED THE GOVERNMENT to formulate new development and investment programs keeping in view of Nepal's specific socio-economic conditions. Addressing the National Symposium on Trade and Investment organized here by the Institute for Development Studies (Fids) Tuesday, leader of the main opposition UML Madhav Nepal alleged that foreign investors were withdrawing their investment from NepaJ and asked the government to clarify its policy in order to attract foreign investment. Former prime minister and Rastriya Prajalantra Party leader alleged that the government was encouraging short-term investment rather than long~term sustainable industrial investment. Nepal Rastra Bank Governor Dipendra Purush Dhakal said thegovemment had given high priority to reforming the management of two of the largest commercial banks in thecountry. as financial sector reforms aloneeould raise the national GDP growth by 2 percent.

THE GOVERNMENT HAS INTRODUCED DOTS (DIRECTLY Observed Treatment Short Course) for the treatment of TB patients· Jatra festival all 75 districts of the kingdom. two years ahead of schedule. government had planned to introduce DOTS by 2003, but the THE SECURITIES BOARD OF NEPAL (SBN) HAS PREPARED TB Center was able to expand the program all over the country well new issue guidelines to manage better the only capital market in the before the target. More than 200 DOTS Centers and 640 suh-centers country. Talking to reporters here Thursday, chainnan of the board have been providing free services to TB patients all over the country, Damber Dhungcl said the organization had prepared the new guidelines officials said. Minister of State for Health Tirtha Ram Dangol said the with a view to simplifying the process of issue and making it morc government has been providing drugs free of cost for the treatment of transparenL The new guidelines, which will come into effect from the TB and leprosy patients all over the kingdom. Up to 11,000 people NcpaleseNcw Year (April 14, 200 I), bar companies from issuing shares reportedly die every year in Nepal due to tuberculosis. unless they havea track: record of onc year. Financial institutions, which arc legally bound to do so. and organizations promoted by domestic or THE LALlTPUR APPELLATE COURT HAS ORDERED THE foreign companies in profit at lease for two years are exempt from the main accused in Letter of Credit (LC) seam, Ananda Kumar Agrawal, new rules. The companies issuing shares are required to make public and three others to post a combined bail ofRs 257 million. In response lheircapilai slrUcturcand tloat their shares within two months ofthedate to a case filed by the Commission for Investigation of Abuse of they get permission from the board. Dhungel said the board had given Authority (CIAA), a division bench comprising justices Min Bahadur permission to over 30 companies to float shares worth Rs 1.34 billion Rayamahji and Ram Prasad Khanal issued the order last Wednesday. between 1998 and 2000. during which more than 167,000 investors The court also directed that lhe total bail amount be sought from entered the market. Shrikrishna Shrestha, the then general manager, and Mahendra Bhakta Pradhananga, chief executive at the Rastriya Banijya Bank, Baneswore THE MAOIST REBELS HAVE ASKED THE PEOPLE IN THE branch, if the accused did not post the bail. According to the Cl AA. all remote northern district of Dolpa to kill all their dogs. Kantipur the accused remain at large. daily reported. The rebels have pasted hand-written notices in the villages, asking people to kill their dogs immediately or face conse­ A CONSORTIUM OF THREE FOREIGN CONSTRUCTION quences. Some people have already executed their orders out of companies. which bagged the lucrative works contract for the Middle fear. Deputy Superintendent of Police in the district. Dipak Marsyangdi Hydroelectric Project (MMHP). signed a memorandum of Thapa. said the rebels might have issued the order as part of their understanding with Nepal Electricity Authority (NEA) Thursday. The strategy to avoid police at the time of their assaults. Dogs would consortium has agreed to finish the job at its earlier quoted price and bark at the rebels passing through the area in the night. thus making complete the civil works construction by August 2004. the stipulated police aware of an imminent threat. The rebels had mounted a timeframe. "We signed the MoU with the consortium," a senior official devastating attack at Dunai, district headquarters of Do ipa, in Septem­ ofNEA said. "They have agreed to finish the project on time and at the ber last year ki lling 14 policemen and looling millions of rupees from quoted price." Earlier. reports had said the consortium,led by Dywidag a local bank. of Germany, was pressuring the government 10 increase the contract amount by up to Rs400 million. Theconsortium had bagged the contract THE US GOVERNMENT HAS PLEDGED TO PROVIDE AS­ two months ago by quoting a price of Rs 6.20 billion. sistance of up to $100 million to the Nepalese government over the next five years, officials said. According to the Finance Ministry. the THE NEPAL-THAI COMMUNITY IS TO CONSTRUCT funding strategy was unveiled during the second Ncpal-USAID pro­ Pashupatinath temple and a NepaJi school in Thailand, a press release gram consultations meeting held here Tuesday. The programs under issued by the Royal Nepalese Embassy in Bangkok said. The decision implementation with the US assistance cover agriCUlture. forestry. came after the seven-day Bhagawat Mahapuran Mahayagya organized irrigation. family planning and health. women's empowerment and by Nepal-Thai Community in Thailand on the occasion ofMahashi varatri. hydropower development. The new country assistance strategy for for the resident NepaJis in Thailand, which concluded recently. A total 200 1-05 is to lay emphasis on the important sectors like health, natural of 2 million Thai baht was collected through the erfon of Acharya Tulsi resources management. hydropowerdevelopment and democracy and Ram Kandcl, president ofYedic Youth Council, Nepal and also secre­ governance. It is expected that funding levels in these areas would be tary of the World Hindu Federation, Nepal, who was in 111ailand to in the tunc of approximately US$ 20 million each year for the next five organize the Mahayagya. The cost of the temple and the school is years. officials said. estimated at around Rs 5 million.

6 SPOTLIGHT/MARCH 30,2001 QUOTE UNQUOTE

"I have already told my friend (UML general secretary) that their approach is wrong.' ,former prime minister, in Ghatana Ra Bichar. * * *

"He is never open. He does nol talk in delail. JUSI says vague thinks like 'leave it, let's go unitedly'." Madhav KumQl' Nepal, leader of the mainopposin"onQnd UMLgellera[sec­ retmy, asked whether he had talked to Prime Minister on the present crisis, in Kantipur. • * •

"Girijababu is still my main leader." JayaPrakash Gupta, Nepa/i COllgress MP who recently resigned from the position of agriculture and coopera­ Idiot tives minister, dismissing claims that he was abatulolling the prime minister 10 join the Deuba camp. ill Bimarsha. • • • intelligence agency, in Jana Aastha. "W hy should J become an ISI agent? I industrialistsand businessmen should , 'All have no business beconting closer 10 Paki­ • * * welcome this move. At least there won't be stan. In facl,I once said that Pakistan Inter­ "Anybody who defies the appeal will be any smuggling now." national Airlines should stop its flights to severely punished by the People's Govem­ Mahesh Aclwrya, Minister for De­ Kathmandu." menl according lO the people's decision." tense, 011 the mobilization of amlY at Jamim Shah, chief of the Spacetime A notice pasted by Maoists in Kalikot. major custom POiIllS, in HimaJaya Network, emphatically dismissing alle­ asking the local people to kill their Times. gations that he is an agent of PakistaJl; dogs, after the canines' barks alened '" * * police, in The Kathmandu Post. • * * ''TheAsianFoolbalIConfederation(AFC) breached the law oflhe land by constiluting a separate committee." Geela {lana, presidelll ofthe National SpansCollllcil-recognizedadhoccolII­ mittee of the All Nepal Football Asso­ ciation, accusing the AFC of dividing the football association ill Nepal. ill Chhalfal. • • • "There is everything. Mostly. you gel respecl and money if you work hard there." Prem RajaMalwt, Nepalifolksillger­ lumed-reSfQllrluzt mallager ill the US, who left the countl)' four years ago. when asked what is so special about the United States. in Gbatana Ra Sichar. • • •

SPOTLIGHT/MARCH 30, 2001 7 OFF THE RECORD

Bhattarai's Poudel's Wish in breaking institutions. What­ ever organization she has As House of Representa­ Buggy joined, Rana has almost im­ tives Speaker Tara Nath Nepalese politicians have mediately split itright through Ranabhat is showing no will­ different preferences when it the middle, After setting up ingness to force opposition comes to travelling. Some like an ad hoc All Nepal Football MPs to join tile house, his pre­ to trudge new heights and trek Association and the throwing decessor - Deputy Prime long distances, while others the sport into chaos, Rana has Minister Ram love a long journey in their Chandra Poudel - backyard. Former prime min­ is bragging about ister Krishna Prasad Bhattarai the heavy-handed - who is often described by tactics he used to that oxymoron, 'saint-leader' pass the bill on lo­ - seems to like that good old cal governance. human louch. For someone As a fanner com­ who has spent almost all of munist, Poudel his political life carrying his seems to be aware trademark umbrella, B hattarai of the strategy of .,...... leader Sonia Gandhi is fol- communislopposi­ lowing us, All Nepalis lion in a better way should be proud of our Lhan the pure Con­ ways," Nepal told party gress cadre workers last week. To be Ranabhat is, frank, there is nothing wrong in the UML-Iedopposition's Rana's way of pressuring the gov­ Rana : Split personality ernment, especially when Record the same sel of procedures . Geeta Rana, principal of I now managed to split the Pub- are being copied in the Galaxy Boarding School, lic and Boarding School Or- world's largest democracy, seems to have a speCIal skill ganization Nepal. •

Ranabhat's Tactic Speaker of the House ofRepresentativesTaranath must have found it uplifting Ranabhat is busy organizing to have been carried along in all-party meetings on finding a buggy, Since the 17 th Century. ways of restoring order in par­ Msnaksrnana tcznple has liament. However, he knows been. ~dely venerated. that nothing will change as long becaue of1:b.e belief that Nepal's IN[... >alauna~ Devi FulfilIs as he wishes to run parliament all wishes. Innovative Idea in the way he likes, Ranabhat's Today. instead of the CPN-UMLleaderMadhav stand stems from Prime Minis­ 4 to 5 hour arduous trek. Kumar Nepal is very happy ter Girija Prasad Koirala's fail­ Manakamans is no'W accessible in just 10 these days, 111e leader of the ure to support him in his quest lDinutes by main opposition party has a to win a seat on the Congress Il\U.... L1alDllBEUl Cable Car. special reason to rejoice. His central committee. Until much-demonised parliamen­ KoiraJa takes proper initiatives tary strategy and tactics are be­ to compensate Ranabhat for Ulat ing emulated in other parts of glaring lapse, there is no reason the region. "Who says we are for the speaker to try Lo being undemocratic in parlia­ straighten out things where he NaxaI. NagpoktLatl. Kalhmandu. Ne1>3I. PIlone: 43-4690. 4~. 434648. Fax: 9n·1-434515 ema~ : chitwanC=wIinlI.eom.np. SIaIion 064~ ment when 's Congress is the boss,

8 SPOTLIGHT/MARCH 30, 2001 NATIONAL

'This European perspecti ve is also evident HISTORY in many paintings by other well known anists, and rubumen prints that document important sites and prominent individuals in NepaJ during 's ruJe," Upadhaya. Sikh Sway Sikhism WIDt founded by Guru Nanak (\469-1539) 500 years ago in what is now known as the Punjab region divided between The culture and traditions of the Sikh kingdom influ­ India and Pakistan. Breaking from the caste system of the Hindu faith. he laught his disciples enced Nepal's court and squares that God is the Truth and that all people are equal in the eyes of the Almighty. By AKSHAY SHARMA Sikh ism is explained through paintings The faith he founded emphasizes the val­ and book illustrations. notably the illustrations ues or democracy, tolerance. equality, courage of the Janam Sakhi manuscript that recount the and sel f-reliance. he beginning of the nineteenth century I ife of Guru Nanak:, considered the first Guru by Almost 200 years later, in April 1699, T saw the emergence of Bhimsen Thapa Sikhs. The Ten Gurus - particularly the Tenth Guru Gobind Singh (1675-1708) initiated five from the vortex of political intrigue and inSlabil· Guru, Gobind Singh - and other exalted court­ of his fol lowers to create the sacred brotherhood ity. Thapa's 3 1·year rule and his contributions iers and religious figures are the subjects of a called Ihe Khalsa, completing the work of Guru Nepalese nationhood remain a subject of number of paintings. Nanak. tense discussion to this day. "Nepalese architecture and thought seems Declaring himself the last in the line of "Hewasc!ear·headedenoughtosaveNepal to have been greatly affected by the strong Sikh Gurus. he ordained the Sikh scriptures, cal led from British coloniali sm, "writes Chiuaranjan kingdom," suggesls Pratik Upadhaya. another the Guru Granth Sahib. to be the everlasting Nepali in his book "B himsen Thapa", "He was history student Guru. To ensureequalilY for all IndividuaJs and the first person in Asia to raise the voice of The numerous omately decorated weap- eradicate caste. Guru Gobind Singh asked that cooperation in the continent:' all men adopt the su mame Singh and all women TIlapa's life was one of contrasts. "[No] the surname Kaur. Greek tragedy has presented a more dramatic He also prescribed the incorporation of catastrophe than his fearful cnd," P.B. Land five outward symbols for the initiates of the wrote. Less known perhaps is the influence the Khalsa-uncut hair.lhecomb, the steel bangle. powerful Sikh kingdom exerted m the art and under shorts and the kirpan (a small sword). traditions of Nepal during Thapa's rule. The Sikh empIre had reached new heights The outward visual symbols established in April 180 I. when Ranjit Singh (1780-1839) by the Khalsa have identified Sikhs around the was proc lai med the first Sikh Maharaja of the world. The artistic traditions of the Punjab un· Punjab (Land of the Five Rivers) in Lahore. der Sikh rule are rooted in Ihe interrelationship which lies 111 present-day Pakistan, among Sikh. Hindu and Islamic traditions. In His cosmopolitan court held a powerful addition, most of the architecture in Nepal dur· Sikh state. and was a scene of glinering bril­ ing Thapa's period seems to have been influ­ liance. which dazzled European visitors, some enced by the SIkh tradition. of whom came to live at Lahore and innueneed '!he temples that are clustered around its artistic and military life. '1"his had a gre.'ll Thapathah and the Dharahara, which was re­ impact on Nepal then." says Upadhaya. built arter the 1934 earthquake to half its size. The Sikh coun synchronized some Mughal seems to reflecl Sikh architecture:' says Sameer and Hindu pattems, using the Persian language. Pradhan. a student of history, employing weaponry as a ~Igni ficant element of ll1cse monuments reflect the cosmopoli· ons and armor on exhibition in Chauni convey court costume. and commissiomng paintings by lan and egalitarian atmosphere of the Nepruese a striking sense of the extravagance of the mid- well-known Indian and westem artists, which coun during Thapa's rule. This period saw a 19th century Nepalese court. may have affected the court of Nepal as well. nounshing of architecture in the Nepalesecourt. Among the military objects included in Some words from the language u~ed in the Sikh Rich textiles of extremely high quality were museum from that era incJudeanenamcledgoId court may have inOuenccd Nepali, some lin­ produced. medal set with emeralds and diamonds; a turban guistssay. Thedynamican.islic movement Ranjit A large number of objects at the museum helmet; a sword hill ofjade inlaid with precious Singh assembled for hiS court continued to in Chauni reveal the outstanding Nepal's cul­ stones; a full set of armour; and intricately lhrive after his death in 1839. lasling through tuml achievements in the early 19th century. carved pistols and a matchlock musket. manu­ several wars and the annexation of the Punjab Maharaja Ranjit Singh. feared as [he "Lion factured In accordance with the latest European by the British. ofthe Punjab". led the Sikh empire to its height technology, with inlaid leaping figures and cast During the same period. Bhimsen Thapa's during his rule from 1801 to 1839. His influ­ animal head finials. rule was plagued by one disaster after another. cnce on Ncpalese cultural habits seemed pre­ The woven silks. carpets and printed cot­ "bigger in thei r destructl ve power than [he 1934 dominant, according to historians. Some of the tons of Punjab arc extraordinarily diverse in earthquake," in the words of onc author. tinest pieces from the court of Ranjit Singh­ character - the towels made for the Hindu Many monuments to his creativity remain including the Maharaja's famous octagonal courts in Indian and Ihehighly refined CarpelS of 10 this day, but the temtory of Nepal of that era Golden Throne. hand·crafted by a Muslim arti­ Lahore seems to have been available 10 the has shrunk. Thapa's own end came in tragic san in pure gold, drawingon Hindu forms-are courtiers of Nepal. The renowned Kashmir circumstances, having ended his own life in among the artistic highlights of Ihe era. pashmina shawls were the most important tex­ prison, according to most accounts. Manyofthe "With ils tiled palaces and gardens of tiles produced during the Sikh kingdom. Greatly problems Nepal faces today arc similar to those Lahore." writes anOlher historian. "Lahore be­ prized at the court and by visitors. these shawls of Thapa's era. This is probably why rhe man came lhe center of cultural and artistic activity. are known to have been as famous in Nepal then and hi s limes are being dissected and inter· drawing the eli tes of almost every country." as they are today. preted so diligently by so many today. •

SPOTLI GHT/MARCH 30, 2001 9 SPECIAL REPORT

Advocates Anup Raj Sharma, Bal Ram K.C, CONSTITUTIONAL DEBATE Prakash Wasli, Sambhu Thapa and Sushil Panta pleaded for the ClAA. Many are surprised lo see the country's Question Of Jurisdiction two major constitutional bodies locking horns over a currency that is not legal tender The Supreme Court's decision on the role and independence of the Attorney in Nepal. Should the highest constitutional bodies be spending time fighting on some­ General's Office will have a major bearing on the future thing so obscure? The lawyers are debating that point as well. In (WO separate cases - one related to By KESHAB POUDEL abuse of authority and encroaches on the the legal opinion and prosccutorial decision rights of others, a controversy of far-reach­ tendered by the allorney-general, and the ing proportions is inevitable. second related to the government attorney ner the citizenship issue. the Su­ The CIAA embroiled itself in a major of Kapilvastu district- the CIAA interfered A preme Court has completed hearing controversy when it asked the rationality. with the right orthe government attorney to arguments on the case that has pilted the intention and merit of legal opinion ten­ decide the legal status of the case on th Atlorney-GeneraJ's Office agai nst the Com­ dered by the attorney generaJ - country's basis of merit. mission of Investigation of Abuse of Au­ top legal officer who has the constitutional Fonner attorney-general Sthapit. while thority. Altention is nowfocused on how right and obligation to defend every institu­ pleading thecase in the court, was citing the the apex court will settle an issue that will tion and official of the state. including the statement made by British Attorney-Gen­ eral Sir John SCOll in 1792: "I protest against that doctrine. that the attorney general of England is bound to prosecute, because some Olher set of men choose to recom­ mend it to him to prosecute, he disapprov­ ing of that prosecution. He has it in his power to choose whether he will or nOl. and he will act according to his sense of duties. My conscience must direct me. your judge­ ment shall nOI direct me:' This citation was being quoted for a Supreme Court in 21st-century NepaJ in a case involving kingdom's attorney general' s opinion. What a pitiful situation'! It shows where the legal scholarship of Nepal stands. The live member special bench include chief justice Keshab Prasad Upadhyaya, Justices Laxman Aryal, Kedar Nath Up­ adhyaya. Krishna Jung Rayamajhi and Govinda Shrestha. Can a police officia.l question a man Framers of the constitution: Process under slrain who needs to have eligibility for appoint­ ment as a judge of the Supreme Court? determine the fate of the constitutional pro­ CIAA. This was something unusual and The rationale behind such qualification is cess in Nepal. unheard of in any common law jurisdiction. that the attorney-general be qualified to sit The way the case is settled will have a The verdict of the court is expected to as ajudgeofthe SupremcCoun is to ensure significant impact on the structure and func­ give a clear line to the attorney-general and that the official representing the govern­ tioning of the constitutional organs. The government attorneys on their right to exer­ ment al the highest level is on a par with decision could prove to be a major step cise and fulfil their obligations and perform those lO whom he addresses his legal argu­ towards clearing ambiguities about the role their functions independently, impartially ments, and so Ulat he is able to command of constitutional bodies. In this case, the and fearlessly. respect. CIAA. knowingly or otherwise. is respon­ During four days of hearing, promi­ As chief legal adviser. the attorney­ sible for creating the constitutional dead­ nentconstitutionallawyer and senior advo­ general is the person responsible for advis­ lock. cate Ganesh Raj Sharma and Motikazi ing the government on legal issues, recom­ When a constitutional body like the Sthapit, Allorney-General Badri Bahadur mending proposed lines of conduct in rela­ CIAA oversteps its prime responsibility to Karki and advocate Harihar Dahal pleaded tion to legal matters, and pursuing claims investigate cases related la corruption and on behalf of the Allomey-General's Office. and counter claims on behalf of the govern-

10 SPOTLIGHT/MARCH 30. 2001 SPECIAL REPORT

ment in civil. criminal and administrative CIAA has the constitutional right to inves­ cases. tigate any issue when it suspects corruption The unnecessary intervention by the and irregularities. In the Sunil Maskey IC CIAA created a stale of confrontation with Rs 500 banknote case, the opinion tendered the Attorney-General's Office. The CIA A by the attorney-general was against the law," is now hiring private lawyers to defend its said advocate Wasti. "Should the ClAA case. If the ClAA cannot rely on govern­ encourage corruption in the name of privi­ ment attorneys who take the oath of se­ lege?" crecy, how can it trust private lawyers who Nepal Rastra Bank has banned the may have conflicts of interest? transaction of Indian Rs 500 bank notes in Some of the lawyers who are defend­ the country following notification received ing the Royal Nepal Airlines management from the Indian centra1 bank. "How can in the Lauda Air deal, which is being inves­ Nepal'sattorney-generallegalize Indian Rs tigated by the CIAA, pleaded on behalf of 500 notes which do not have more than the CIAA in this case. A mattcr of great paper value in the country after the notifica­ . Icrest is how the CIAA is going to avoid tion from the central bank of In dia?" asked nfliet of interest of private lawyers who advocate Oahal arguing in front of the might be defending one case filed by the bench. Sthapit: In defense of AG CIAA and fighting another on behalf of the In corruption cases, attorneys are not CIAA. immune, The recent case of an attorney of taken in the name of the constitution, he is "How long can the CIAA go from door Lalitpur Appellate Court. Lekhanath Pou­ constituti onall y obl iged to fight this cause." to door searching for a lawyer? IL cannot del, who resigned following his involve­ Interestingly, Sthapit, ignore the attorney-general who served a~ in consulting ment 1n a bribery case, shows that govern­ attorney-genera the l for just five years,defended cases and opinion as constitutional prac­ ment attorneys are not immune from the the independence of the Attorney-General's tices guarantee its role to tender the opin­ rule of law. If they go againstthe law, they Oftice, while K.C .. who retired after almost ions on any legal and constitutional issue," should be punished. In the IC 500 case, the three decades with the institution, opposed said seniQr advocate Sharma, before the CIAA,however, asked for clarifications on it. special bench of Supreme Court. HIf the the rationality of the legal opinion tendered "The attorney-general is also a public CIAA asks questions on the constitutional by the attorney-general. official and his opinions, lOO, come under and legal opinions tendered by country's "In a dispute between the Reserve Bank the purview or the CIM. When an aLLor­ first law officers, every lawyer will have to of India and Nepal Raslra Bank attomey­ ney-general tenders an illegal opinion can faH prey to Ihe CIAA nexltime," general is being questioned ill defending he be considered immune to the actions The private lawyers hired by theCJAA Nepal Rastra Bank's decision to ban circu­ arising therefrom?" 8'!'kcd K.C. defended the right of CIA A 10 question the lation of Indian Rs 500 banknotes," said The CIAA has the right to investigate atlomey-general. "As a conslitutional body senior advocate Sharma on the last day of corruption cases but the constitution trusts set up to contain corruption, the ClAA can hearing. the attorney-general for legal matters and nlerrogale any official, including the attor­ While performing their duties, attor­ other disputes. ''The constitution guaran­ ney-general," said advocate Bal Ram K.C, neys around the world gel functional immu­ tees the independence of the anorney-gen­ who resigned as a senior government attor­ nity. Attorneys and other officials. includ­ eral and its final decision on whether to go ney following a dispute with Attorney-Gen­ ing those of the CIAA, are given immunity for particular case," said Sthapit. "He is the eral Karki. to maintain their independence. "When­ lawyer of the judiciary, executive and leg­ "Article 98 of the Constitution of the ever attorneys commit an offense, they islature. The opinion expressed by the at­ clearly gives the right to should be punished. However, they should torney-general is final unless the court says the CIAA to investigate anybody holding never be questioned for the opinion they otherwise. " public office, except any official in relation deliver. While performing their professional In the last I 0 years, questions concern­ 10 whom this constitution itself separately duties, no one can question the merit of the ing the rights and independence of constitu­ provides for such action, and any official opinion." said Sthapit. This simple ques­ tional bodies have appeared before the court prosecuted under the Army Act," said K.C. tion seems to be totally ignored by the time and again . This time, too. a new debate Whenever constitutional bodies feel ClAA. .. has been raised on how uncomfortable important the inde­ or unclear on any point of a In every country, the attorney-general pendence of the first law officer of Ihe slate question of law, they are supposed to seek is known as a first legal officer and his legal is to maintain judicial independence the government lawyers' and ullimately and the opinions are always respected until they rule attorney-general's of law when theCIAA can question the opinion. When such bod­ come under the scrutiny of the Supreme legal opinion. prosecutorial decisions, ad­ ies contest the opinion tendered by the at­ Court. "If an incumbent attorney-general visory opinion and legal representation of torney-general. how could they expect to cannot protect the power and the interest of the attorney-general. seek opinion for themselves next time? independence of his organ ization and team, "No institution orthe state can raise in "The attomey-general's opinion is not he has no moral right to continue in hi s court questions on prosecutorial decisions, immune from the scrutiny of law and the position," Karki pleaded. ·'By the very oath advisory opinions and legal representation

SPOTLIGHT/MARCH 30, 2001 I1 NATIONAL of the attorney-general. By the very nature of these functions. no other organ has the BHUTANESE REFUGEES capability, quality and expertise. on these matters of professional integrity and deci­ sion-making process," said Shanna, citing Waiting For Results international cases. On behalf of the state and government. No sooner than the JVT started the verification pro­ the allorney-gencral is the only institution that has been envisaged or conceived by the cess, questions are raised about its outcome constitution as the sole institution fully equipped and wholl y responsible for pros­ ecution functions. Attorney General is a By BHAGIRATH YOGI Bhutanese refugees. The refugees were transported from their lawyer of legislature with a power to adress camp near Birtamod in Jhapa district to the the parliamentary session and friend of the hat a bizarre coincidence? Aita JVT office at Damak in the same district Mon­ court. W Singh Magar, the first Bhutanese day. Eight more families. including women "Since the issue over the role and duty refugee interviewed by the Joint Verification and children. however. had to wait the who o[thcCIAA and attorney-general isa major Team comprising Nepalese and Bhutanese day waiting for their turn. constitutional importance. all friends of the orficials at Damak., in the eastern district of Nepalese and Bhutanese officials ha court should hand over Written Note to the Jhapa, Monday found later that the person agreed 10 launch thejoint venfication process court." ordered Chief Justice Keshab Prasad interviewing him was non other than the man during the 10th round of ministerial level who had ordered him to leave his homeland talks in Kathmandu last December. iThe veri­ Upadhyaya. at the concluding session of more than a decade back. "( could gather by fication procedure is in line with the Tenns the discussion. looking at the expulsion order that he (Or. of Reference agreed between Nepal and Likewise, the constitution gives inves­ Sonam Tsering, director at the Home Minis­ Bhutan during the 10th round of talks." offi­ tigative authority to the CIAA regarding try of Bhutan) was the same official who had cials said. corruption and misuse of authority and the handed out the order," said Magar, aftercom­ As part of the verification process, mem­ attorney-general as the final authority to ing out of the JVT office. ''They asked me bers of the JVT ask the head of refugee fami­ take fina l decision whether to file a case or why I bad to leave Bhutan and I explained lies to fill up a form. The refugee family­ nol in court. In criminal cases, the attorney­ them the conditions under which I was forced members above 25 years of age are required to to leave." till up a separate form technically called "at­ general has the sole discretion over whether Against its own ex.pectations. the JVT tached proforma." to institute certain types of prosecution based could interview only two people on the very Interestingly. not only the time frame of on police first day the verification process kicked off. the entire proce::.s i~ uncertain. Officials say investigation in accordance with After a fortnight of homework. the JVT com­ the results of the exercise will be announced Schedule I of the Public Prosecution Act prising five officials from Nepal and Bhutan only after nearly 99.000 refugees in the camps 1992 (sometimes also referred to in English each decided to launch the verification process are verified. as the Government Cases Act). and over from Khudunabari Camp - one of the seven There are 98. 817 Bhutancse refugees whether to pursue certain cases through the camps accommodating above 12,000 living in seven refugee camps. according lO courts which have been investigated and prepared by other authorities under special status (such as the Revenue Department in relations to tax cases. or the Special Police Department in relation major corruption inquiries). The power given by Anicle 110(2) 01" the constilUlIon has been del­ egated in accordance with Article 110(5) under the terms of an official notice to ::.ubordinate officials working in District Oftlces of the Attorney-General' s Office in each of the 75 districts:' according to the book "Commentary on the Nepalese Con­ stitution," written by Dr.Surya Dhungel, Bipin Adhikary and B.P. Bhadary. Following the completion of the final hearing on the case. the court's decision will go along way in detennining institu­ tional credibility and limit future encroach­ ments on jurisdictions. The court's deci­ sion is also expected to check the rising despotism in the nature of the CIAA. • Refugees: Wailing to be verified

12 SPOTLIGHT/MARCH 30. 2001 NATIONAL

official statistics. Out of a total of 15,032 refugee families in all camps. Beldangi I. 11 REFUGEE VERIFICATION and Extension Camp together hold 7,533 fami­ lies. Timai Camp has 1,377 families. GoJdhap Camp 1,349 famities, Khudunabari camp 1,963 A Fishy Affair families and Sanischare Camp has 2,714 families. There is no transparency in the whole process The JVT has agreed that the official documents issued by the Bhutanese govern­ ment. such as Bhutanese citizenship certifi­ By RAKESH CHHETRI Commiuee (JMLC) for funher discussions. cates. land ownership certificales. document BhUlan is bound to make complications during relmed to government/civil services. scholar­ the verification process. We are aware that ship to the students. birth and marriage regis­ he Joint Verification Team (JVT) has Bhutan is not willing 10 take back more than tration certificates, passports, trade license. T said it will be able to interview only ten 10,000 refugees and this attitude of Bhutan recei pIS of voluntary laborcontribution, scbool refugee families per day. This means that to makes the refugees more suspicious. registration documents would be the ba­ interview J 5.032 famWcs. the NT wJil take Since the JMLC comprises ministers. it sis of verification in identifying Bhutanese 1.503 days or four years. Add holidays, it might will lead to further delay. Bhutan's intransi­ citizens from non-Bhutanese. if any, among take five years. gence is going to create more problems~ it might refugees. The JVT will not disclose the result of the create complication for over 50 percent of refu· "By interviewing 10 families a day it interview on a daily basis, The result of veri fica­ gees by rejecting the documents or by oilier could take up to five years to complete the verification process." said Rakesh Chhelri, a [ion will bcannouncedonly after the completion means. If JVT is to place the problems of 50 % Bhutancse human rights activist "Moreover. of the entire verification process. This means of refugees before the JMLC. one can imagine the whole verification process seems as fishy thaL the refugees who had completed their inter· the volume of work and amount of delays. It is and suspicious." (See box) view with the Joint Vcnfication Team will not nOl possible for the ministers (0 sit for a mara­ Refugee leaders had initiaUy welcomed be told whether sthe ha~ qualifioo as Bhutanese thon meeting for three or four moths at a time to the decision to launch the verification process or not. So slhe will not know herlhis status until sort out the problems of over 50 percent refu­ temling it as a "breakthrough." Breakthrough the end of the verification process. There is no gees. it was in the sense that Bhutan had finally transparency in the whole exercise. The JVT Furthermore, the unstable political situa­ agreed to sit for the joint verification process learn is trying to keep the whole process tion in Nepalese politics is gomg to create more after dosing Ncpal for several years. The first under secrecy, thereby curtailing the right problems. TIlis means that rhe JMLC will take batch of 60 Bhutanese refugees entered Nepal to freedom ofinfonnation, as set in the Nepalese another [ouror five years of lime over and above in December 1990. In the following two years. Constitution. When something is held in se­ thc lime taken by JVT for cht!ckmg the docu­ the numbers rose to around 100,000 in seven crecy, there will be enough ground for suspi­ UNHCR-managcd camps i n J hapa and Morang ments. Who knows. the whole process will districts of eastern Nepal. cion. rebound to unknown rounds ofJMLC in future. It was only in 1993 that both Nepal and This suspicion and fear is compounded by That means refugees will not know their status Bhutan agreed to catcgorize the refugees into the non-inclusion of a third party or rerugee in another tcn years. What would be the future four cmegories: Bonafide Bhutanese who representation. This is a matter of gravecont."em of refugees and their children, if after ten years have been forcibly evicted. Bhutanese who for Bhutane~e refugees as it directly concerns to they are declared as non-Bhutanese? It is better have emigrated. Non Bhutanese, and their right 10 go home. live with dignity and to declare the result of Status of refugees on hutanese who have committed crimes. BUI honor. How could only two parties. the NT daily basis. the consequent differences in the positions of decide the fate of 20 percent population of MoreovertheJVT is not going to deal wjlh Nepal and Bhutan and heavy criticism from Bhutan? What is the guarantee of the NT the resettlement of other communities from the refugee community Itsclftook seven more providingjusrice to the Bhutanese refugees, the nonh and east in the lands of refugees in south­ years for the two parties to come to a common victims of persecution of a government. which ern Bhutan. If [he resettlement is not Slopped. agreeable point. is a party to the JVT? For the interest, security Thanks to increasing internmional pres­ where will the refugees go? sure, Bhutan agreed to hold the verification and mental health of the refugees, lhe result of The whole verification process. since the process to satisfy itself whether all the refu­ the interview must be made public on the same interviewed refugee Will not be aware of his gees are genuine one. Earlier. Bhutanese offi­ day. status and has to wait for 5-10 years. seems as cials are blaming that even non-Bhutanese are The JVTs mandate is to check the docu­ fishy and suspicious. There is no transparency. laking ~helter in the refugee camps. ments of refugees. If there are complications, Refugee leaders claim that almost all of controversies, doubt etc. ariSing during the veri· (Mr. C"helr; is the exe{:ttti~'e director ()f th.e the refugees have some sorts of documents to fication process. then theJVTis 10 forward such Cenler for Protecttml ofMinorities and Against prove lhcirnationality. But it is yet nOt clear if complications to the Joint Mmisterial Level Racism and Discrimination in Bhutan) • the Dragon kingdom would accept to take back all of its citizens residing in southern Bhutan who were forced to flee the country Bhutanese refugee leaders and human the refugees will go on fading. The lengthy after it introduced the "discriminatory" Citi­ rights groups have been demanding involve­ process of the verification and lack of commit­ zenship Act 1985. The Act required anyone mentofa third party-in this case, the UNHCR ment on part of the Bhutanese government to claiming to be a Bhutanese to have the land tax - in the verification process to settle disputes, lake back all the refugees identified its receipt of 1958. The 1988 census of Bhutan if any, that could arise during the course of citizens raise questions about the entire exer­ labeled those found without the document as verification. But bmh the governments haven't cise. Given the past track record. few would non-nationals and, al legedly evicted them forc­ responded to such demands as yet. wonder if the entire process turned into a fiasco ibly. As the time passes, the optimism among any time soon. •

SPOTLIGHT/MARCH 30, 200! 13 NATIONAL

ment. "The is like the LEADERSHIP father of the family. All of us understand what the primary responsibility of the father is." Drought Of Ideas He says there can be no justification for the current failure to perform. "If we seek to A country immensely proud of its outstanding leaders and thinkers put the blame on politicians. then there are ways of bringing them back on track - of the past is desperately searching for their modem equivalents there is the CIAA (Commission for lnvesti­ gationof Abuse of Authority), the court, the By AKSHAY SHARMA The older generation held forth with all police. Why don 'tlhose in government work "i their eloquence, cheered by a widening au­ to combat the disease that is plaguing the spectre is haunting the country to­ dience, stimulated by hundreds of alert com­ nation?" A day - the spectre of leaderlessness. petitors. liberated by the decline of dogma. The country takes immense pride in an "We have no strong leaders - like lung spurred by the vanity of print. Writers older generation of people whose ideolo­ Bahadur or Bhimscn Thapa - at a lime launched upon the inky sea a flotilla of gies and philosophies have shaped t when the country needs them most," says letters. pamphlets, diatribes, essays, mem­ Nepalese identity. Then comes the ne Arun Kumar l oshi of lawalakhel. The sa­ oirs. histories, novels, drama, poems, the­ logical question: When will leaders of such gacity and strength of leaders and thinkers ologies and philosophies. calibre emerge again? • of the past laid the basis fora modem Nepal. However, now that seems to have been At a lime when Nepalis arc in dire need of the exception of the Nepalese age of en­ consolidating their gains, there is collective lightenment. "Leaders and thinkers of such FORESTRY yearning for a ''Lrue leader" who could deal calibre seem la emerge only once in a very the country's troubles in the true spirit of long while," says an analyst. The political For Improving public service. liberalization of the last decade was ex­ The gradual opening up of Nepal from pected to unleash a new wave of moral and isolation to modernity saw a proi.iferation of intellectual creativity that would give much­ Livelihood new ideas and broader perspectives. "The needed momentum to the polity. Instead, a The British government has agreed to expansion of the middle class, the spread of sense of fecbleness has gripped the overall provide a grant assistance of about Rs 1.96 education and the gathering of intellect in national atmosphere. billion to the Nepalese governmem for tbe Nepal were generating an audience eager To be sure, literature and the media implementation of the Livelihoods and For­ for books. And a swann of authors rose up have flourished in many ways. They finally estry Program (LFP) in the program districts. tosaturale this demand," says Ravi Ghimire broke through all the chains of censorship, The LFP will work in the seven hill districts of ofChabahil. "In this new atmosphere.think­ swept away all resistance and transformed Koshi and zones that were covered by lhe NepaJ-UK community forestry project ers and authors attained a status rarely ac­ the mind and faith of the country. Never in and area-based activity will be extended IOta corded to them." literature has there been such subtle Wilt additional four hill dlstncts in the mid-western • such dedicated pleasantry, such coarse buf­ region, the Finance Mimstry saJd. The purpose foonery. such lethal ridicule unleashed by of the LFP is to enhance the assets of rural sharply pointed, sometimes poisoned, usu­ communities through more equitable, efficient ally nameless. pens. and suslamable use of forest resources. The IQ-year program, beginning this year, When we see country after country will address the goal of reduction of vulnerability and government after government brought' and improvement of livelihood of poor rural down by the mighty pen, we can only be people In Nepal. The LFP will impact directly awed by the powerof the message to trans­ on poverty e1iminalion by increasing the live­ form society. However, the facilitators of lihood opponunilit!:-i from and increasing se­ the free flow of information have not been curity of access to forest resources to approxi­ able to put the transactions in this great mately 300.000 hou,ehold, In 4,000 forest user groups. Fjnance Secretary Dr. Birnal marketplace of ideas to the nation's service Koirala and British Ambassador [0 Nepal in the desired sense. Ronald Nash here !'otlgned a letter of exchange "We have not again seen thinker-poli­ to this effect last week. According to Keshav ticians with the calibre of RP. Koirala and Kandel. chief of the foreign aId division at the Subama Shamsher w hose quest for life, MlOjStry of Forest and Sot! Conservation, the liberty and the pursuit of happiness lit the Brittshassistanct;! is targeted to create enabling spark that created the ," environment for poor fanners in accordance said Chi ring Sherpa. a youth leader who with the prionty given by [he Nepalese gov­ ernment towards poverty alleviation. "The supports the governing party. program will focus on building up (he assets Arun puts the blame for the country's and capital of the poor people and engage them problems at the doorsteps of the govern- to deal with their vulnerability," he said . •

14 SPOTLIGHT/MARCH 30. 2001 r TOURISM

TOURISM INDUSTRY to limp on. With the advent of the new millennium, frequent new jolls have all but destroyed what was once regarded as Struck By Politics the Himalayan kingdom's most lucrative industry. Hopes of stability in the Despite the c urrent respite, the tour­ hotel industry are dashed by ism sector may be rocked by new prob­ the announcement of new political protests lems at any time, as trade union groups have already decided to legally challenge the government By KESHAB decision's to bring the POUOEL fairs in India," said Tek Bahadur Dangi, hotel and restaurant sector under the Es­ director of marketing and promotion at sential Services Act. oteliers and restaurant owners the Nepal Tourism Board. "We have al­ "It seems that Nepa!"s tourism sec­ at Nagarkol have seen an unusu­ ready started H marketing programs in vari­ tor has become a target of a well-planned ally low number of tourists turning out ous Indian cities, including Mumbai, conspiracy," said a tourism entrepreneur. ring the first half of this year. The Delhi, Madras and Bangalore." '·Although every political party knows yllic hill resort, 25 km cast of the A day after hotel workers suspended how important the tourism sector is to the Kathmandu, has remained a popular at­ their strike and people began expecting country and hotel workers understand its traction for LOurisls who want to see the some nonnalcy in the tourism sector, the significance for sunrise. their personal develop­ ment, why are they promoting The hotel-owners such ac­ are particularly tivities?" worried by the decline in Indian tourist The hoteliers lost the first round of arrivals, especially since it is this group the battle at the Lalitpur Appellate Court, that fills the vacuum during the off sea­ which declined to issue an interim order son. After the hijacking of an Indian to prevent strikes in hotels. Because of Airlines plane in December 1999, the the court decision. the hotel industry was Indian and Nepalese government agreed closed down fQr a day. la introduce an identification system for ··Wedon 't feel secure yet, but forthe air travellers as part of tighter security lime being, disturbances have been measures. Air travellers from India and averted," said Madhav Om Shrestha, ex­ Nepal have to show either a voter ID ecutive secretary of Hotel Association card, passport. citizenship certificate or Nepal. ,. The workers will also under­ any document establishing their identifi­ stand the challenges cation. faced by us.'· The trade union workers, however, That stipulation has hit businesses in see the government' s decision to invoke places like Nagarkol real hard ·'Business the Essential Services Act as unfair and at hotels and reSL:'1urants is much below are holding consultations before mount­ expectations," said a restaurant owner in ing a challenge in court. "The the resorl. "This time of the year nonnally government's decision is against the ver­ used to be full of honeymooning Indian dict of the court. which has establi shed couples, who spent as much as foreign Tourists in town: Uncertainty continues the right of tourists." workers organize strikes." said Bishnu Rimal. joiot coordinator of The ban imposed by New Delhi on country confronted another potential the hotel workers' the j oint agitation com­ carrying oflndian Rs 500 banknotes to source of instability. The announcement millee. "We will challenge the Nepal and Bhutan has also discouraged of a Nepal Bandh by the student wing of government's decision." Indian tourists from visiting this country. theCPN-ML and Themo r , Thedecision nths of March and April con­ has forced many Indian tour­ (Maoists) and the political agitation stitute the main tourist season and any ists to carry bundles of Indian Rs 100 launched by the main opposition party agitation notes launched by the country's ma­ • 10 visil in Nepal. With all these new CPN-UML and four other communist jor political parties wil l disrupt the entire inconveniences, many Indians feel they parties have cast a new round of uncer­ industry. Ironically, political parties, have better destinations on offer outside tainty over the upcoming tourism sea­ which tirelessly claim to be the saviour South Asia. son. of the poor, are playing agame to destroy Nepal's tourism officials are in a After the restoration of democracy, a sector that is one of the largest damage-contra) mode. ··We are organiz­ sources Nepal's tourism industry has faced sev­ ofjobs ing various and roreign currency in one of the types of tourism promotion eral rounds of instability but has managed world 's poorest countries. •

SPOTLIGHT/MARCH 30.2001 15 COVER STORY NBL&RBB Banking On Reforms

After last year's damning revelations by the international auditing agency KPMG Barents Group about their state of financial disarray, the two old war-horses of Nepal's financial sector - Nepal Bank: Limited and Rastriya Banijya Bank - are facing fresh reform attempts. The latest prescription: leasing their management on contract to foreign experts. Although there is stiff opposition to this proposal- which also has a Swadeshi-V s.-Videshi dimension, there seems to be no other viable alternative. Moreover, with the kind of losses these banks are accumulating, can the country afford to continue with a few patch-up efforts?

By SANJAYA DHAKAL pare for a showdown with the government lional auditing agency, KPMG Barents Group, against the proposed management contract. which went so far as to tenn the two banks s officials at the central bank were Every time there is a talk of reforming "technically insolvent", caused a political and working in full speed in their plans these two giant banks, it causes a stann in the financial uproar in the country, with everybody to lease the management of two country. Whether it was the implementation of c1amoring for some concrete move to prevent government-controlled banks to for­ IherecommendationsoftheCommercial Banks them from hitting rock bottom. eign experts, the employees of the Problem Anal ysisand Strategy Study (CBPASS) Although there is a consensus among all Rastriya Banijya Bank (RBB) were in 1988 or demands IO clean up irregularities political parties, employees' unions, authorities Araising slogan s in the streets on Monday against reported to run rife in the institutions, each and board of directors of the banks on the need what they cal led a "sell-out". move has met with lremcndous pressure from to reform these two institutions, the differences Their counterparts at Nepal Bank Limited several quarters. of opinion become sharp when it comes to the (N BL). too, are rolling up their sleeves to pre- Last year's report by a reputed interna- nature of the remedy.

16 SPOTLIGHT/MARCH 30, 2001 COVER STORY

try." said Prof. Dr. Biswombhar ?yakurel, a fonner member of the board of directors of the NBL, who now serves as executivechainnan of the Nepal Industrial Development Corporation. At present, the two banks are in a serious financial problem. According to the KPMG report, their combined losses are somewhere between Rs 15 billion to Rs 30 billion - which represent 4.5 to 8.5 percent of the GDP of Nepal. Says ?yakurel: "Although the deposit collection of these banks rose by 15 percent in the last nine months, the credit flow rose only by 9 percent. ascompared to 14 percent in previous year. This is not a healthy sign." But top officials of the banks downplay the situation. "We do not have operating losses. The problem we have is in loan recovery," said Dahal. The bad debt of the RBB amountsto Rs 910 million in principal and over Rs 3 billion in cumulative interests. "As ours is a big bank. it will not bedifficult for us to sail overthe present losses," Dahal said. Rajendra Klletan, a leading industrialist Employees in a bank: Ready for refono" and a member of the NEL board of directors, believes that the bank is not m the serious situa­ Naturally, the current government move management will be able to turn around the tion many are projccting. ''1l1C NBL is not in big [0 lease the management of the banks to foreign· banks' financial situation by bringing with them problem. We still have one miUion customers. ers is meeting fierce opposition from employ­ required skills and technological know-how in 6,000 employees and five to six thousand share­ ees, opposition parties and a section of bank loan recovery, credit flows, human resource holders. Because of certain top officials and officials themselves. management and investment. vested interest groups. the bank has landed in the However, Nepal Raslra Bank (NRB) -the "In the present scenario. there is no alter­ current situation. If action is taken against them cenlIaI bank - and the Finance Ministry seem native to improving the performance of these inclividuaUy, the bank will break even within a resolute in pushing ahead with their agenda. banks other than handing over their manage­ shol1 span of time." he said. (See box). The World Bank has agreed to provide around ment on contract:' NRB Governor Dipendra The NBL also suffers from accumulated Rs 1.5 billion in loan to cover the expenses of Purush Dhakal told SPOTLIGHT. "The bad debts. It has bad-debts running in billions of leasing the banks' management. coumry's Gross Domestic Product could regis­ rupees resulling from defaults by some big Last April, then Finance Minister Mahesh ter a growth of an additional 2 percent by business houses. f ~ charya had promised at the Nepal Develop­ carrying out financial-sector reforms alone." According to reports obtained by SPOT­ ~ ent Forum - a consortium of foreign donors - Agrees Punya Prasad Dahal, executive LIGHT, some of the major defaulters of the in Paris to start the second phase of economic chairman of the RBB. "If we could use their NBL include Biswas Gannents. Bluebird. East· reforms. tn the financial sector. among others expertise toour benefit. this could prove good," em Sugar Mill~, the Golchha Organization. things, Acharya had proposed the restructuring said Dahal (See box). Hyatt Regency,Jyoti Spinning Mill. Mt. Everest of the RBB and the NBL with improved man­ State or The Banks Brewery, Oriental HOlels, Phulbari Resort, Sil­ agement. branch rationalization, improved su· Why is the financial situation of the two ver Fibre Textile and the Shangrila Group. pervision mechanisms, and privatization of the commercial banks so important forthecountry? 'Why Management Contract? government~owned banks and non~bank finan· The answer lies in their size. volumcand arcaof This is the million·dollarqucstlon. Every­ cia! institutions in the medium term (that is. operation. Between them, the two banks mobi­ body says the banks are ready for refonns but within 24 months). lize nearly half of the Rs 145 billion deposits in few agree on the mode. As all previous efforts Following Acharya's pledge, the govern· the country's banking system, They have lent have binen the dust, the managemem contract mcnt published a nmice in The Economist maga­ 55 percent of the total lending of Rs 91 billion has come as the latest alternati ve. zine in September. 2000 inviting international from the banking sector. Similarly, of the total As far as the NBL is concerned. the gov­ I bidding for awarding the contract for manage­ bank branches in the country. 86 percent belong ernment even diluted its majority share 10 give ment of the two banks. At present. the central to these two. They operate ninety-three percent 59 percent of the bank's share to the private! bank is short~lisring the bidders in close coop­ of bank branches in ruraJ areas. public sector. But because of continued politi­ eration with the bank officials. In lhe caseofthe The RBB alone contributes 25 pcrcem to cal intervention, unchecked irregularities and NBL, the NRB has already short-listed four the total deposit collection and 30.1 percent to weak management. the bank is still reeling candidates- Price Watcrhouse(1ndia), Ernest the total credit flow. under pressure. Young (Sri Lanka) and two others including Given their ubiquitous presence. they are Take. for instance. the case of Sher Baha­ Development Partnership from United King­ literally the mainstay of the Nepalese banking durThapa, a former top official of the bank, who dom. sector. "Any serious damage to these banks can had to resign following allegations of having The government believes that the foreign invite a financial sector meltdown in the coun- given loans amounting to billions of rupees to

SPOTLIGHT/MARCH 30,2001 17 COVER STORY different panies, including the Bi swas Gar­ 'The boards of these banks had had enough Or, Puspa Raj Rajkamicar,aformerdeputy ment. in an irregular way. When the bank's opportunity to clear up the mess. Besides, there governor of the NRB, also believes tbat man­ Watu tried lO take action against him, even the is an international traclitionofgiving bank man­ agement contract could be useful to an extent. majority of the board members, including agement on lease on technical service agree­ ''If there is a guarantee of sovereignty to the representatives from the government and ment (TSA) at times of negative indicators," bank's board of directors, bringing in foreign the NRB. opposed me move under the influence said Or, Pyakurel. management for technical consultation is OK," from lOp ruling party politicians. Handing over the management ofthe bank he said. "I put special stress on sovereignty of As all the lighter means of reforming the on contract for a specific period to foreign the board of directors because it is they who are banks have apparently fallen flat. there is a experts, many say, will improve their function­ ullimately accountable to the shareholders." strong opinion in ravar of giving tbeir manage­ ing. "This can inject the custom of corporate Opponents: Swadeshi-Vs.-Videshi : ment on Jease. governance in them." said Pyakurel. Some still believe that Nepalese manage- There Are Positive Sides Of Management Contract' - PUNY A PRASAD PRASAD DAHAL is the executive they will work in coordination with us. I take No. We have blll',;rli''''" ofl he Raslr;ya Ballijya Ballk (RBB), that positively, as it could help us perform closed only eight former indusl1)' secretary and veteran bu­ better. HopefuUy. these people would beknowl­ branches because Daha/ spoke ID SANJAYA edgeabJeabout the ways to improve our condi­ \')1'lAKAlL ,ab,,,,, the s;rualion afthe RBB and tion. They could also help us in better manage some places, we have \1«, i,,,u' n{'/",,,;,.. I'I<. bank's management in our human resources and train them as welL If merged the branches. ~n""" " N £rcerpts: we could use their expertise for our benefit, But this is not inten­ this could prove good. I do not deny that there tionaJ. We are aware What is the overall financial situation could be some negative aspects of this. But that the RBB has cer­ the Rastriya 8anijya Bank? looking from this perspective, we can take tain obligations to the Auditing work of the last fisca1 year advantage of their expertise. people. In fact. gov­ is going on. During the previous Wbat is the current status of the man­ ernment banks like the year, the situation of the bank was not agement·contract process? The bank was in loss. We do not have The whole thing is being done by the banking among the people. Besides, we pp<:rating loss. The problem we have is in Nepal Rastra Bank (NRB). We have sent three have problems of loan recovery in rural recovery. But we are making provisions members from our board. who are studying the In general. the people are aware of their compensate for the losses. Apart from that, matter together with the NRB officials. gations to return loan. The private comnner'ci,,)1 reason to lose hope. As ours is a big What internal reforms is the RBB in~ banks are centered in cities and have a halndl'ull it will not be difficult for us to sail over troducing following the report by KPMG, of branches. We have 2oo-plus branches. presem losses. which termed the bank as technicaUy insol~ service is, therefore. required more in How much of bad debts do you have? vent? areas. Because of our easy access, thecornmon! In principal our bad debt is above Rs 91 0 We are trying to develop our human re­ man prefers us to other banks. but its cumulative interest amounts sources. We have formulated guidelines on What are the immediate challenges Rs 3 billion. extending loans. Alarecentmeetingin Pokhara, fore the RBB? What are your views regarding the bank executives asked managers of local One is loan recovery , The existing or leasing out the RBD on manage~ branches to voice their problems and present are more tilted towards the customers. ~,,1i," I contract? Will it solve the existing recommendations to improve the RBB's ser­ when I was in Ministry of Industry (as probllems? vice. The local managers reported an improve­ secretary). we used 10 stress the need Nobody should believe that the manage­ men! in loan recovery. After the KPMG report, in favor of the people. The company act, contract would bring a magical solu­ there was speCUlation that our deposit collec­ drafted, is heaVily tilted towards people. . We definitely are in short supply of the tion would decline. But nothing like that has I understand that these laws are hampering '11 and technical expertise needed la oper­ happened. On the contrary, our deposits have banks. If you take a loan, you must pay it bank in today's competiti ve age. Earlier. dOUb led. We have categorized customers into You cannot escape that responsibility, was no competit ion and the consumers prime, good and satisfactory in order to extend sides, we see thm some customers go to no choice but to come to us. Because of loans. Earlier. we used to invest as much as 93 court and seek stay orders when they have service-delivery and weak information percent of our deposits. But with the current pay back the loan. Although, that is not today we need knowledge, expertise high deposit collection. we are findjng prob­ problem. it becomes cumbersome for us experience. That is where the TSA (Tech­ lems in locating more areas for investment. fight cases in court to get back our I Service Agreement) or management Around Rs 10 billion of our collection is cur­ Another problem is human resource m,,"aJ~e-1 comes in. What I have understood is rently locked in dollar and treasury bill invest­ memo We regularly face problems in transfer-I about eight people with such expertise ment. ring our employees. That apart, there is come from outside and help us in our The RBO has closed down some of its carrot-and-stick approach to deal with I don't know the overa11 procedures branches in rural areas. Why did you do ployees. We hope the new management which they will function. My guess is that? Won't it affect tbe people? solve these problems.

18 SPOTLIGHT/MARCH 30. 2001 COVER STORY

ment experts are capable of resol vi ng the present assured that the technical-service agreement Each of the two banks employs around crisis. They point that no real efforts at reforms with those panies would bein the overall inter­ 6.CK)O people and has hundreds of branches. have been undertaken in the past. est of the employees and the bank, doubts still Even the board has joined the employees union "If you cnd political intervention in the persist. in opposing the cutling down ofjobs. iSchemes bank's internal affairs. ensure autonomy, ap~ The precise modalities under which (he like golden handshake and voluntary retirement point responsihleand accountable management, foreign parties will take over the banks' man­ should be introduced. So far as the sacking of check irregularities and take action against cor· agementare stiH unclear. Who will the manage­ employees is concerned. wc are 0pQOsed to that rupl officials, there is still big room for rescuing ment be accountable to, what will be their The NRB, too, has said that would not happen." the bank from present mess," said Premal responsibilities and will they be penalized if said Khetan. Khanal, general secretary of the Nepal Bank they do not fulfiU them? "If they arc allowed to cut down lhe jobs Employees' Association. '''The big business "It would be better if such managemeni and roll back the branches, what will be the houses are responsible for the 80 percent of the could be tied up with the profit of the bank. That meaning of thi s whole reform. You cannot say bank's dues of 10 billion rupees. Why doesn't could be a good motivation," said Or. you have improved a bank by bringing down its the government take action against them?" Rajkarnicar. size. Anybody can do that, you don't need to If foreign management is the answer. other Meanwhile, there was a fresh controversy spend billions of rupees and invite foreigners to say, then the government might as well hand regarding the NRB's latest move that could do that." said Premal Khanal. "If the country r the management of every loss-making increase the cost of handing over the manage­ wants to go ahead in industrialization, we need irution to foreigners. ment by as much as Rs500 miUion.ln its March more involvement of the bank. more branches "The employees at the NBL have had and more employees, The NBL has not opened more than six decades of experience in banking. a si ngle Dew branch in rural area in the last ten 111ey are the ones running the show at most of years." the joint venture banks. So you cannot say that The NBL has 160 branches, which have the bank lacks experience at this point." said a been serving three million people in the country. senior NBL official. '''The NB L is still in sound condition. We have30 Others are more vehement. Dr. Dilli Raj billion rupees in tOlal deposit and 27 billion Khanal. UML MP and an economist. is tooth rupees in total lending. We don't need to hand and nail against the present bid to hand over the overourmanagemem to foreigners," said Khanal. banks' management 10 foreigners. ''This is a No Escape : classic case of tiling antacid 10 CUTe your head­ If everything goes as planned, the govern­ ache," he said. Khanal's party's chief (Madhav ment could hand over the management of the Kumar Nepal) even goes so far as 10 accuse that two banks to roreign experts before the end of the move to hand over the banks' management this year. "We will not reverse our decision (to is aimed at protecting the loan defaulters, lease the management}," NR B Governor Dhakal Dr. Khanal asserts that the problems en­ said. countered by the banks should be looked into a Even as the debate is taking on Swadeshi­ case-by-case basis. He says problems like bad V S.-Yideshi di mension, everybody is clear about debt, high ratio of non-performing assets, re- one thing. Twoofthccountry's oldest banks are (~ap italization , weak management and pol itical in acritical condition. They have been subjected . J1lervention should be tackled on their own to exploitation by politicians and vested interest merits. ''Taking a loan of one and a halfbiUion groups for too long. There i ~ no escape from rupees for handing over the management is reforming them. outrageous." Governor Dhakal : Tough nut to crack Theonly question is whether the proposed But he. too, believes that technical guid­ management contract will deliver rhe' goods. ancemaybesought from foreign parties. "In my 27 issue. the leading daily Kantipur published a Experts say it isan international practiceto lease encounters with World Bank and IMF officials. newsreport saying that the central bank, under bank's management 10 outsiders for specific I found them positive on simply giving these pressure from the World Bank, was amending period subject to certain conditions, and the banks technical guidance. Handing over the its request for proposal to the leasing parties in same could be justifiable here, too. whole management is nothing but ludicrous." this regard, As far as the questions of modalities and The employees' unions of both banks say Moreover, there arealso uncertainties over accountability arc concerned, once you have the prescription will not work. ''The problem whether such management would cut down agreed on the basic agenda, the rest, as they say. will not be solved by the management contract," jobs and restructure branches. The NRB gover­ is mere details. But again, officials al the j said Mani RaLna Shreslha, secretary at the RBB nor has given assurances that the government Finance Ministry. central bank and even donors employees' union. Saying 40 percent of the will not allow jobs to be cut. However, many could do well to clanfy these things beforehand RBB 's bad debts was borne by about 100 big wonder how the management is supposed to to prevent unwarranted controversies to cloud parties, he said the government should have clear up the mess if it cannol prune "over­ the whole reform process. Any delay on their applied the right remedy. staffed" banks. part to clear the air wi ll lend credence to the Modalities And Accountability : Bringing a toothless tiger will once again views of opponents. There still is much confusion regardingthe fai l to keep the jackals at bay, they say. "Raising The well-being of the two banks is in the authority and legal status of the foreign man­ politically-motivated slogans to appease em­ best interest of the country. Curing these ailing agementlhat takes over the bank. Although the ployees will not work anymore. Hard decisions institutions will have a healthy effect on the central bank and the Finance Ministry have are required." said Dr. Pyakurel. whole national t!conomy. •

SPOTLIGHTIMARCH 3D, 200t 19 COVER STORY 'The Main Problem Is Some Big Houses Are Not Paying Their Dues' - RAJENDRA KHET AN

RAJENDRA KHETAN, (l prominent industrial­ correct the problems. triangular relationship between the ist, is a board member ofrhe Nepal Batik Limited Thereissomeconfusionregard- top bank officials. politicians and (NBL), in which the Khelan Group has about 10 ing the accountability of the party business houses. which is damaging percent of shares. He spoke to SANJAYA that leases the bank's management. these two banks. This triangle must DIlAKAL about ,he problems faced by the Besides, what would be the modus be broken. Action must be taken country 's oldest bank and issues JlIrrotmding the operandi of such management? agamst these businessmen and offi- fJl"oposal to contraCI foreigners to manage the Thccurrent process of reform has cials. The board of directors and the orgallizatioll. Excerpts: taken speed because international do- employees of these two banks will nor agencies have called for its need supporttheNRBandthegovernment There have been many attempts to re­ and have even agreed to fund it. Be- in this direction. rorm banks in the past. Now comes this man­ cause the majority of the NBL's share There are concerns that once agement contract proposal. Do you think this is with the public now, there was in- theforeignmanagementtakesov will set things right? deed confusion regarding the authority it wiU start pruningtheover-s . In fact. from the institutional and profes­ of such management. This led to differ- __111:. __ ""11 i.m.'1itution.On theotherhand,NRB sional perspective. this is the first attempt to ences in the decisions of the NRB and the NBL officials have indicated that this would not :lctually refonn the bank. There are no differences board of directors. But as everybody was clear happen. In this situation, how is the manage- of opinion about the need to reform our banks - all about the need fo r reforms, in principle, we de- ment supposed to clear up the mess? the four: NBL. Rastriya Banijya Bank (RSS), cidedtomoveonandnothaggleaboutthemodali- The labor laws of Nepal do not allow such Agriculture Development Bank and Nepal Indus­ ties for long. So, I do thlnk this reform will take sacking. As the employees union is also against trial Development Corporation. The only contro­ place. However, there still are some unanswered the move, it could even affect the reform process. versy in the proposed management contract is the questions regarding the modalities. Schemes like 'golden handshake' and voluntary decision to introduce foreign expenise. Many What is the main problem of the NBL? retirement should be introduced. So far as the have questioned this. maintaining that the exper­ Why did it slide so much? sacking of employees is concerned, we are op- tise is available within the country. There could be There are many problems at the NBL. This posed 10 Ihat. The NRB, too. has clearly said that many reasons for thi s. Maybe because fundi ng for is a traditional bank, which lacks many modem would not happen. the whole process (of awarding the management facilities. But the main problem today comes from Previous schemes to downsize the NBL on lease) is coming from outside, they are bring­ the fact a handful of "big houses" have not paid seemed to have backfired, because it got rid of ing the expertise from abroad. This is the only their loans. Even if the 20 big hou ses pay back the best employees. What can be done this contention. Otherwise, there are no differences. their dues in time, the NBL will. at least. break time? Everybody agrees there is a need 10 reform the even. This is clear. j even raised thls point at That is because we should be clear on our banks. parliament's Public Accounts Committee (PAC), refonn agenda. Specific programs could be intro- What were the obstacles to previous at­ which is asking for details. However. as there is a duced to replace unwanted employees through tempts at reforming the banks? provision that bars us from providing details of scientific schemes. I still think that there was no real refonn our financial position without the consent of the How is the true picture of the NBL at attempt in the past. Some committees did give NRB. I could notdo so. I have written to the NRB present? reports. but there was neilher an institutional seeking its apPfQval. but the central bank has not The bank is not in big problem as such. We observation nor an institutional implementation responded. This has led 10 a suspicion whether the sti ll have one milli on customers. 6,OOOemployecs of their recommendations. To a great extent, the NRB is giving protection to these big houses. This and five thousand to six thousand shareholders. board of directors of the two banks, its manage­ matter must be resolved quickly. Becauseof certain top officials and vesled interest ment and the officials at the Nepal Rastra Bank, How are the legal provisions for loan groups. the bank has landed in the current situa- and concerned agencies are responsible for this recovery? tion.lf action is taken agamst them individually, situation. It is sad to note that when. in the past. The legal provisions are weak. Wearesitting the bank will break even. international agencies had pointed to the prob­ on laws that were enacted three or four decades There are al1egations that the latest re- lems of the banks and Ihe need 10 refonn them, back. Better acts governing the financial sector. form effort is aimed at pushing the real prob- NRB officials did not take immediate measures. including the NRB, debt management, commer- lems under the rug again. What do you sa)'? The government even sold its majority cial banks, agricultural banks and so on, are re- This is not true. In fact, the present attempt shares in the NBL to induct private sector-led quired. Moreover, there is st ill no transparency. seems genuinely in the interest of Nepalese people. management. Why couldn't this lead to better The central bank does not involve the private The only poim of contention is whether the man- management? sector in the process of reform. We businessmen agemenl should he given to Nepalis or foreigners. There is a question now that in the name of from the private sector had proposed to the NRB Though we are sti U clear that Nepalese manage- privatization the government has betrayed us. governor to take the private sectorinloconfidence ment, too, could have delivered the goods, now we Whi le privatizing thebank. thegovernment should and consider our viewpoints. However, we have don't have the time. We must immediately go for have sold majority share and the management to not had any positive indications so far. some refonns. The vested interest business houses one group. However. it only di luted its con trolling To what extent is political intervention have indeed sought support from officials at the share to 41 percent and gave the majority share to damaging Ihe NBL? NRB and Finance Ministry regardi ng loan recov- the public without clearly specifying under whom n,ere is political intervention. Otherwise, ery.ln the last one and a half years, there have been the management would be. The situation is such there would not have been such big credit flows 10 four changes in the chainnan of the NBL board. that the majority of the board was able to choose these houses. If you talk about the NBL and the This has created instability. Although the majority the management. Becausethe board was not united, RBB. a few officials at the top arc fully respon- share is in public hands, we have to welcome the the mandate of the management never became sible for these bad debts. These officials enjoy chairman nominated by the government. WereaUy clear. leading to poor performance. Therefore, poli lical support. The political parties are also thinkthatifthegovemmentnominatescapableand instead of pointing fingers, it would be wiser to supponing these bad debtors. So there is this honest people. the bank can move ahead. •

20 SPOTLIGHT/MARCH 30. 2001 NATIONAL

rivers and lakes nowing through the large ENVIRONMENT urban areas is deteriorated. TIle rivers are also major places for urban solid waste disposal and industrial effluents. Under Threat The report said air quality, particu­ larly in the large urban areas of Nepal, has A new report calls for government commitment to deteriorated. Due to air pollution, the num­ ber of people suffering from respiratory meet the threats the country's environment is facing diseases has gone up over the past few years. By BHAGIRATH YOGI In eastern Nepal, the forest area decreased Oflicials do agree. "Sustainable de­ as a result of construction of Bhutanese velopmentand preservation of the natural refugee camps in and around the forests. environment have become challenges for Uring his brief visit to Nepal this Nepal has been providingshelterto nearly today's Nepal," said Dr. Govinda Raj week, executive director of the 100,000 Bhutanese refugees for the last Bbalta, Secretary at the Mirustry ofPopu­ irobi-based United Nations Environ­ I J years on humanitarian grounds. The lation and Environment. ~ment Program Klaus Topfer was spell­ Though known worldwide for snow­ report further said that landsljdes, soil bound by the natural vistas of the Hima­ erosion, and floods have occurred as a topped and forest-clad mountains, all is layan kingdom. But he was equally wor­ result of the clearing of forests, particu­ not well with Nepal's mountain environ­ ried about the fast-degrading environment larly in the hills. ment. "The towering ridges are holding in in this country. "There is a need for pro­ The report quoted studies saying that a brown cloud of pollution over South tecting Lhe environment and promoting Asia. Many forest area are disappearing. sustainable dcvelopmclll without harm- Water is becoming increasingly polluted. ing the conditions for harmony between In shon, this beautiful mountain environ­ people and nature," said Topfer, launch­ ment is in danger," said 1. Gabriel ing the State of the Environment (SoEJ Campbell, director-general at the Report for Nepal, 2001, Monday. Kathmandu-based International Cenler for Poverty is th e most toxic clemenl in Integrated Moulltain Development the environment and warned of the envi­ (lCIMOD). ronmental dangers from western-style Led by Dr. Bandana Kayastha­ consumerism and globali zation. Pradhan, the repon was prepared by a Referring to research data, Mr. Topfer team of professionals and experts both said out of nearly 7.000 spoken languages from Nepal and abroad. The report is the in the world, a third of them in Asia, and fist of seven national repons focusing on _ lore than 2,500 were in danger of imme­ two Asia-Pacific s ubregions. namely diate extinction. '"Maintaining biological South Asia (Bangladesh, Bhutan, diversity is strongly linked with preserva­ Maldives, Nepal and Sri Lanka) and the tion of indigenous knowledge and lan- Greater Mekong subreglOns (Laos and guage," he said. Vietnam). The SoE report. prepared by the The repon Said that environmental Nepalese government in association with conditions in Nepal are deteriorating, de­ the UNEP. ICIMOD, SACEP and spite several policy measures undertaken NORAD, discusses live key environmen­ A forest: For conservation by the Nepalese government. The rapid tal issues in Nepal, namely forest deple­ and uncontrolled growth of population tion, soil degradation. solid waste man­ 60 to 80 percent of the total annual soil and poormanagemenland useoftheavail­ agement, water quality and air pollution. loss from cultivated terraces occurs dur­ able resources are the major reasons for ., "Forest depletion is one of the major ing the pre-monsoon season. The report the deterioration. The reason for these is environmental issues in the country," said said urbanization in Nepal is character­ the inadequacy of capital and human re­ the report. It said the forest area of Nepal ized by haphazard and unplanned urban sources and lack of public awareness. has declined to 29 percent of the total land growth, inviting many environmental "For sustainable development of the en vi­ area in 1994 from 38 percent of the total problems such as air pollution, water pol­ ronment, strong commitment on the part land area in 1979. The agricultural area lution, and solid waste. of the government 10 implement increased by nearly 600,000 hectares over The report further said major towns programmes that are appropriate and en­ the last onedecadeending in 1995, mainly and cities in the hills have acute problems courage existing programmes is required," due la the encroachment on forest areas. of water availability. The waterquality of the report concluded. •

SPOTLlGHT/MARCH 30,2001 21 INTERVIEW 'It's Sad To Be Making Fun Of Leaders We Once Respected So Much' - HARI BANSHA ACHARYA

COllledian HARI BANSHA ACHARYA is riding lampoon the then establishment by exposing their high OH the success a/theftlm "Tan Ta Sara; Bigris dishonesty and fraud. The people rose up, threw out Ni Bad,-;" and stage drama "Shalik". The chubby the Panchayat system, and ushered in the present halfof the MaHa duo· the single lIIost popuiarcomic democratic one. In fact, we also had been demanding group a/the country - Har; Bansha has appeared in change in the political establishment through our numerous tele-serials and feature films along with dramas back then. After nearly II years under the his parmer Madan KrislllJQ Shrestha. Theirfilms and present system, we find the very leaders, on wh .-. stage-dramas are knownfor their biting satire on the we had so much faith in the past, failing to deliver political and social establishment. AcharYQ spoke goods and responsible for the dire state of the coun­ with SANJAYA DHAKAL about his recent SIlC' try. It is really unfonunatcthat in such a short time we cesses and plans at his residence in Ghattekulo last were compelled 10 make fun of the very leaders we week. Excerpts: respected. We, personally, feel sad to sec this day. "Shalik" was first shown on stage for 12 days in How do you reflect on the thumping success August last year. This time. too. we showed it for of "Tan Ta Sarai Bigris Ni Badri"? nine days. Still we find people requesting for more I am quite satisfied with the success of" .. Badri" shows, which we will do in the near future. film. Ilis an experimental ftlm. This film isa mixture You have been exposing the prevalent anoma~ of laughter and tears, and it sends a strong message lies ofthe political and social scene for long through against the prevalent exploitation of women in this your comedy shows and tele-serials. How do you male-dominated society. We tried very hard to make fmd the present situation of the country? it an entertaining film. You can also call this film a We havespilled all ou~ feelings through "Shalik". commercial onc. We have indeed mixed some for­ Everybody in the country is concerned about the mula. but not to the extent of compromising with the present situation. The only exception could be the basic theme. But the film is not free of weaknesses. ones whoareplundering the country's resources. We Even the films made in Bombay or Hollywood are are all hoping that the country would improve, it not perfect, so it is only natural that there would be would prosper, and violence would stop so that some problems with our film. ldidseethis film in the Nepal will become a peaceful country. theater along with other audiences. I was happy to From stage artiste to singer to actor, you have see them enjoy it. The film does not focus on comedy played different roles in life. How could you be alone. Some scenes are full of women's sentiments successful in all three areas? that bring tears to one's eyes, too. I credit the film's These all works are associated with the Nepalese It is really success to the support of my colleagues, general culture, performing art and creativity. When you audience and the media. Shortly, the film is celebrat­ perform on stage, you have to sing and write the unfortunate ing the silver jubilee. scripts, too. So, Ido not find itdifficult to be involved that in such a Do you plan to come up with more films like in all those roles you mentioned. In fact, I have short time we " ... Badri"? multiple interests and therefore. I am happy to be There are no immediate plans. But I am thinking doing so many things. Thankfully, I have been suc­ were com­ about this. I am exploring some scripts in my mind cessful in these roles till now. If something happens pelled to make right now. Once I decide on a particular script and and I fail to satisfy my audience then maybe I will once I get a favorable environment, I will definitely drop doing many things. But I will continue to do all fun of the very come up with more films. Besides, this is what I am these things as long as I am appreciated. leaders we supposed to do, isn' tit? How would you assess the situation of per­ Your recent stage-drama "Shalik" with forming artistes in the country? respected. We, Madan Krishna Shrestba has been critically ac­ The economic situation of the country is very personally, claimed. What is this drama about? bad. Industries and business are slowing down. BU1, The stage-drama "Shalik" is a satirical depic­ on the other hand, there are hopeful signs on the feel sad to see tion of the four-decade-Iong political bchavior in the sector of film and performing arts. The film industry this day. country. During the Panchayat days, we used to is moving well. In the beginning when we entered

22 SPOTLIGHT/MARCH 30. 2001 INTERVIEW

this sector, the situation was very bad and no one could imagine la make a living out of art. However, the professionalism in the art sector has really flour­ ished in the last few years. For those who work hard, this sector offers a bright future, indeed. Lately, there has been a string of overseas stage shows by Nepalese artistes, How fruitful are such shows? We have also done a lot of stage shows abroad. I, myself, have travelled to 22123 countries around the world in this connection. We generally show our programs to entertain the Nepalese living abroad - the people who have gone there in search of employ­ men!. There is an inaccurale view that we make lots of money by showing programs abroad. That is not sn Mastof the Nepalese working abroad do not earn bly much. The average income of Nepalese, be it hereorabroad, is lower than Lhatearned by foreign­ ers. We have to go by air, stay in hotels and there are many other expenses. And we lag our stage-tickets Well, when the script of the ' .. Badri' was IInal­ with the average income of our audience. Therefore, ized, MaHa Sanchar (the official company of .he it is not for money that we perform abroad. It's comedian-duo) expressed unwillingness to produce hecause we gel the chance to travel. Regarding iL Outsiders produced it and so Madandai did not play money. we can make more by staging a program in the film. There are no hard feelings on either side. inside Nepal. In facl. there could be the chance of In fact., we believe that each of us should have cenain earning more and helping our tourism if Nepalese degree of personal freedom. I must also give him the artistes could come up with programs that would freedom to do as he likes and he. '00, has been giving attract foreigners. too. me that. There is no conLroversy in this. MaHa tele-serials like "Lalpurja" and When and how did you enter the field of "Pandhra Gate" have been very successful. But comedy? And we tag the group has stopped making tele-serials in the Ijoined this field thirty years ago. Ever since my our stage­ recent past. When are you coming on TV again? school days, I used to engage in mimicry. r mimicked tickets with We do make programs for television. 1 accept my teachers and made my friends laugh. I regularly there has been agap at present. This is because we wish took part in cultural programs where I was appreci­ the average that after making big effons to produce a program, we ated. Later I participated in Gaijatra festival programs. income of our Uld like to be compensated reasonably. So far, we I wrote my own script'i and gave a solo performance I uld not make any financial gain by producing tele­ in the festival for four years in succession - each time audience. serials. Take for instance the "Pandhra Gate" serial­ I was awarded with the gold medal. As the time passed Therefore, it is we lost Rs 645 in the end- although it was loved by all. by. I became increasingly involved and here I am. Likewise. wc gained - after deducting other costs - a How do you spend time when you are not not for money mere Rs 1,800 by making "'·. Yes, we did making others laugh? that we per­ make some profit by producing sponsored telefilms I read books. write and compose songs. I meet like "Raat" and "Kantipur", but otherwise. it is hard lO friends and take my family out. form abroad. even recover the investment Maybe we could gilln if How difficult is it to make somebody laugh? Tt's because we appeared regularly on television. But it is not It is both easy and difficult. If you work hard. you possible for us to be concentrated in a si ngle medium can make people laugh or cry. we get the and we cannot ovcrlook our commitments on stage How satisfied are you? chance to and in films. Besides, when we make programs. we I am very satisfied. The biggest property I have is travel. Re­ have to focus on the technical quality as well. In this the affection of my audience. I treasure their respect age of cable television, you have to compete with Zee and love. I am sure I could not have been as satisfied garding TV and all. This needs big investment. Despite all this, as I am now had I not joined this profession. money, we can we do feel that we have to make telefilms time to time What would you have become had you not as per the wishes of our audience. ended up as a comedian? make more by You always make films, stage programs and Really,ldon'tknow.1 was involved in this sector staging a tele-films with your partner Madan Krishna so early that I did not have any alternatives. I don't Shrestha. He was conspicuous by his absence in know .. maybe I would have ended up as a hoodlum or program in­ u .. 8adri". Why is that? even a politician. • side Nepal.

SPOTLIGHT/MARCH 30. 2001 23 NATIONAL

NATIONAL POLITICS Fractured Opposition RPP's decision to separate itself from the UML-led street agitation brings a new turn in political deadlock

By KESHAB POUDEL agreement over the street agitation against Prime Minister Giirija Prasad PM Koiral. (left) with opposition leader: On collision cour.e he decision of the Rastriya Praja­ Koirala announced by the T tantra Party (RPP)- the third larg­ main opposition party has turned a united The RPP's sudden policy shift has est group in parliament - to walk out of opposition struggle into an all-commu- not come as a surprise in political eiret, _ the opposition alliance expressing dis- ni5t protest. especially at a time when Kathman~ based western and other diplomats have been pushing a series of steps to bring the GIRIJA PRASAD KOIRALA political and constitutional process back on track. Man Of Strength The latest turn of events may pro­ videa sigh ofreJiefto beleaguered Prime Prime Minister Girija Prasad KoiraIa knows how to Minister Girija Prasad Koirala, who is facing the most serious crisis in his five­ confront the politics of agitation decade-long political career. Butthe task of bringing back [he communist parties By KESHAB POUDEL into the parliamentary process remains daunting. For Girija Pras.d Koirala, responding to political agitation seems come ., second Although the RPP still holds the nature. From the beginning orhis political career, Koirala has passed through a sea of view that prime minister has no alterna­ political turmoil. tive but to resign, its decision not to join Prime Minister Koirala has proved that he is a genwne player of Nepalese politics the communist-led street agitation shows

\Who knows how to outsmart his rivals and break stalemates. This lime 1 too. Koirala has that the party has "slightly" softened its been able to break the RPP's alliance with the communists. stand against Koirala. Despite the efforts of his opponents witlun the party and outside to oust him, Koirala Interestingly, when the RPP has outmancuvercd all his colleagues and rivals in the political survival race. alienated itself frolll the communist Koirala himselfhas set a record in the party by contesting all elections in a party that all iance, the terai-based Nepal Sadbhvana has traditionally chosen its leadership by consensus. Koirala contested the elections of Party, which supported the government parliamentary party leadership and party president with his student, former prime for the first 35 days of the winter session mmister Sher Bah.dur Deuba. He did everything to bring his party to power and hiS of parliament, has finally supported tireless campaigning and whirlwind national tours arc still recalled with awe. Although the opposition move to bOyCOll the he is 76, Koirala is neither looks tired nor seems to be ID need of rest. house. His destiny still lies with Congress politics. DIScarding his daughter Sujata "We will not support any und Koirala's claim to the Koirala mantle, the prime minister has promoted his nephew, emocratic and unconstitutional steps of Praka.>h, elder son or the late B.P. Koirala. main opposition CPN-UML in cluding After he won the central committee membership in lhe elections held in Pokhara street agitation. Being an alternative earHer this year, B.P:s son was appointed as a minister. democratic party, we cannot go against On the last leg of his political career, Prime Mmister Koirala is still fighting a constitutional process. To launch a political battle With his communist opponents and his intra-party challengers, including street agitation in ex isting scenario former prime minister Krishna Prasad Bhattarai and his supporters. will benefit the extreme left and extreme But a prominent Koirala hallmark has been never .,a1low his opponents lo have right," said Rabindra Nath Sharma, their way. This time, opposition parties have gone to the extent of stalling the House of one of the prominent leader of the Representatives for more than 40 days to press for his resignation. So far, Koirala's RPP. insistence on upholding the parliamentary process has worked well for him. • Even after distancing itself from the

24 SPOTLIGHT/MARCH 30, 200t NATIONAL

street agitalion, the RPP continues to support opposition moves to stall the WATER RESOURCES STRATEGY proceedings of parliament. "It was tbe Nepali Congress that promoted the communists in Nepal by Rhetoric Vs. Reality launching a joint agitation with them in 1990 and including them in the lastelec­ The government finally begins a serious debate on tion government," said MP and RPP leader Sharma, countering the charges ways of utilizing the country's water resources that his party is promoting the commu­ By KESHAB POUOEL Strategy. nists. "Agriculture is one of the major sectors Withdrawal of the RPP from the oes Nepal have the potential to exploit of economic development, and we must de­ opposition alliance seems to have put the D its vast water resources for national velop a plan to utilize the water resources to main opposition CPN-UML inadilenuna development. "Oefinhely,"saywaterresourccs eradicate poverty," said Rameshananda over whether to continue the streelagita- experts. Then why are things moving at snail's Vaidya, member of the National Planning . Although CPN-UML leaders assert pace? Commission. I al Ihe people will support their agita­ Nepal wastes more than 220 billion cubic Everyone is talking about Nepal's im­ tion, there are few signs of imminent meters water each year. U' the country could mense potential in hydropowerdevelopmcnt. popular enthusiasm. lap even a fraction of that, the benefits would but no one has seriously pondered how the Even western friends of the CPN­ beincaJcuJable. But the reality remainssordid. availability of cheap natural gas in the region UML have already requesled party lead­ More than 90 percent of agriculture land still depends on the monsoon rain ers to follow the democratic process and and less than 20 percent of the popula­ uphold parliamentary norms. tion has access to safe drinking water. In a situation where it is facing pres­ Hydropower generation is meager and sure from all quarters, the CPN-UML is barely 15 percent of the popUlation has said 10 be considering to withdraw its access to electricity. agitation program if can find a face­ Nepal started utilizing its water saving way of doing that. Publicly, how­ resources about a century ago. Even ever, CPN-UML leaders are still express­ before that ri verso lakes and ponds were ing support for the street agitation. being used to irrigate land and meet "We have already requested the household needs through traditionall~~..;...... =~~[i~~~~ main opposition party to play the role methods that were sustainable. The of a responsible opposition as we are in country's first hydroJX)wer plant was buiJt during the Rana regime. A big dam: Use of water resources no position to support any move that , ill destablize the whole political pro­ Why have Nepalese leaders al­ I lowed themselves to waste so much lime? could change Nepal's strengths. cess," a senior western diplomat told Simply because they do not have a concrete SPOTLIGHT on condition of anonym­ In tenns of utilization of water in agricul­ strategy to utilize thecountry' s water resources. ture. Nepal's perfonnance is equally unsatis­ ity. "Nepal needs [Q have a strategy that will factory. Nepal has dozens of major snow-fed Understanding the importance of guide the economic development of the coun· rivers, but agriculture still depends heaviJy on western support for their survival, CPN­ try well into the future. Where do we want to the monsoon rain. UML leaders, too, are trying to persuade utilize the water?" asked Deputy Prime Min· This is for the first time in the last five western friends that they don't want to isler Ram Chandra Poudel. decades that the Ministry of Water Resources undermine the constitutional process. Following the restoration of democracy. has realized the need to develop a long·tenn "Street agitation is also a parl of the Nepal realized the need to produce hydro­ plan for the utilization of water resources. democratic process. II is the people who electricity for export to lndia, but no export­ Prepared by Water Resources Commis­ will decide the fate of the government oriented hydro-power plant has been built. sion. the Water Resources Strategy covers and iLs leader," said powerful UML leader Because of serious policy lapses, US energy programs and activities over the short, me­ K.P. Sharma Oli. "How can we support a giant Enron dropped its proposal to develop dium and long-term spread over a 45-year the Karnali Chisapani electricity prime minister who is involved in a COT­ project to sell timeframe. ruption scandal." to India. Although an Australian Company "It is getting loo late for Nepal to forrnu· Snow-View has the license 10 build the West­ Oli's ebullience notwithstanding, it late a water resources strategy for economic Seli. the project is yet to take off because of is increasingly becoming clear that the development," said Baldev Shanna Majgaiya, problems related to the market. Minister of Water Resources_ opposition leaders are searching for a Amid this flood of problems in water For any strategy 10 work. however, NepaJ face-saving fonnula to end the current resources utilization, a discussion was taking must identify core areas of priority and work political deadlock. • place on a comprehensive Water Resources on them on a sustained basis. •

SPOTLIGHT/MARCH 30. 200 I 25 REVIEW

study deals with core issues in good gover­ BOOK nance such as Slate viability and sover­ eignty, structureof government, transfer of power and electoral arrangements, man­ District Democracy agement of power, government effective­ ness, among others. The NepaJi version of a book on good governance aims at educating Sponsored by the Enabling State Pro­ grammed of British government's Depart­ a wider population on a key underpinning of the people's polity ment for International Development, the assessment was aimed at recording the By A CORRESPONDENT east and Kanchanpur in the west. viewpoints of the a broad cross-section of The study, among the first of its kind, the people in the district capitals and vil­ ood governance is one of the catch highlights many important components of lages regarding the governance situati on at G phrases of Nepal's contemporary good governance and exami nes its chal­ both the national and local levels. As the democratic discourse. Non-govemmenLal lenges and potentials in the two districts. findings were initially published targef-­ organizations in particular have been mak­ Originally published in EngLish, the foreign readers, access to the vital info ing efforts to analyze perspectives of good book has been translated into Nepali with tion was limited, RDF/Nepa\'s commend­ governance to establish whether the fruits the aim of reaching a wider audience across able effort to translate the book into Nepali of political liberalisation have actually per­ the country. Onc of the important parts of would help a large number of people un­ colated to the people. the book is that it is based on an exploratory derstand issues and achievements in the With theaim of analyzinggoodgover­ assessment of local-level perspective on area of governance a1 the district level. nance at the local level, the Rural Develop­ the situation of governance in Nepal. "We are proud to say that a large ment FundlNepal (RDFlNepal), a non-gov­ The book can be expected to help number of organ i zalions have already made ernmental organization working to pro­ Nepali rcaders to compare the problems of requests for the translated version of the mote decentralization, has made a case governance in the central and districts level. book," said Krishna Man Pradhan, presi­ study of two districts - Panchthar in the In the last decade, various attempts dent of the RDFlNcpal. "We are planning have been made to ana lyze governance in to send copies to all District Development the central level. but this is the flrst time a Committees." • Affliction Of Abuse A collection of articles on the prevalence of torture in South Asia makes a strong case for ending the mistreatment of detainees

Based on a report c(lnsisting of papers presented at a SOllth AS18n seminar on the prevention orlOrlUre, this book highlights various aspects or torture and other problems faced by detainees in the region. Organiled by the Nepal Law Society in association wtth the Center on the Prevention of Torture. Geneva, Switzerland. and in cooperation with fhe Swiss Agency for Development and Cooperation, and the Royal Norwegian and Australian embas­ sies, the seminar included cogent papers on torture and human rights. Torture is widely pracliced In the region. Suspects are often tortured before they arc produced in court. Despite a ban on the use of third-degree methods in Interrogation. it is widely pracllced in South Asia. The book does a commendable job in bringing into sharper focus the widespread use of torture in the region and makes a strong case for building public opinion against the phenomenon. Some of the seminar papers highlight the experiences of Sri Lanka, Perspectives From Panchthar and Pakistan, India, Bangladesh and Nepal. Kanchanpur Districts (Nepali Translation) The compilation of opinions expressed during the interactions among lawyer, Edited by Bihari Krishna Shrestha Published by Rural Development police officers judges, and medical doctors, public prosecutors, police officers and Foundation\Nepal human rights experts provides an additional perspective of the grim human rights Price: Undisclosed. Pages: 123 situation in the region.

26 SPOTLIGHT/MARCH 30, 2001 THE BOTTOM LINE

By M.S.KHOKNA

Third time lucky ?

FORMED: The organizing Ghosh, Shanta Pokhrel and suffering a heart attack. TRANSITION committee for the Firth National Kanta Poudel as members of Games, under the chainnanship the Fund Management Commit­ LEFT: A 36-member Nepal Po­ of Education and Spons Minis­ tee of the Himalaya-Princep lice learn led by Superintendent APPOINTED: Kashi Raj ter Amod Prasad Upadbyaya. Scholarship Fund, by the meet­ of Police Dr. Megh Bahadur Dahal, spokesman at the Su­ ing of the committee held by its Gurung, for East Timor upon preme Court, as secretary at the FELICITATED: Bharat chairman Subhadra Prasain. the request of the United Na­ ludicial Council, by His Maj­ DuUa Koirala, senior journal­ tions. esty the King, on the recom­ ist, by the Federation of Nepalese RETURNED: Yagya Nidhi mendation of Judicial Council. lournalists (FNJ)/Gorkhapatra Dahal, the littcrateur, after suc­ A two-member investigation Chapter, for his contribution to cessfully undergoing kidney team, led by Commissioner at ARRIVED: Dr. K1ausTopfer, the sector. transplantation at Chennai, In­ the Commission for Investiga­ execulivedirectorofthe United dia. tion of Abuse of Authority Nations Environment Program NOMINATED: Gh.t.raj (CIAA) Basudev Lamichhane. (UNEP) and assistant secretary­ Bhattarai, Hiranya Bhojpure, HOSPITALIZED: Koili Devi, for Vienna, last week to probe general of the United Nations. Ganesh Rasik, Dr. , senior singer, at Tribhuvan Uni­ into alleged irregularities in the on a four-day visit to Nepal. Rajendra Koirala, Manjari versity Teaching Hospital, after Lauda Air deal. •

SPOTLIGHT/MARCH 30, 200t 27 VIEW POINT The Prospect Of Bowling Alleys In Kathmandu

The hustle and bustle ofKathmandu city has robbed our life of was the major reason for their lack of interest in the game. rest and relaxation. Hence, the temptation for the people to However, 65 percent of the respondents - both visitors as explore new sources of entertainment is nothing unusual. well as non visitors - fell that the game has good future, People today are looking for leisure activities and any new 25 percent disagreed and thought that the game wouldn't attraction blended with vigor and energy, helps them to over­ succeed in Nepalesecontext while 10 percent had no opinion to come their physical strain and mental distress. With the advent express. of bowling alleys in Kathmandu, people have started hoping During the interview with the managers of bowling alleys, that this sport would help them to ease their restlessness and it was stated that the game not only a mere source of entertain­ boredom. ment, but it also developed concentration and competi. _ Bowling ha a long and rich history and today it is one of the skills. They also admitted that the advertisement and pro~ most popular sports in the world. It is one of those games in tion ofthe game have been inadequate and a lot more effort was which one does not have to be an athlete or go on a restricted needed to acquaint the people with the game and to popularize trai ning program. Nor it is necessary to have stamina to endure it. vigorous physical exercise. The game of bowling involves the The response of the people was also taken through FM rolling of special kind of balls which weigh from 6to 16 pounds station and the Internet. A live program wa aired n Radio down a wooden or synthetic land with the aim of knocking Sagarrnatha 102.4 to analyze theirthoughts. Most of the callers down pins which lie at a distance of 60 ft. felt that the average people couldn't afford to enjoy the game, In Kathmandu bowling has started to make its mark in the as the rate per game is very high. Some callers expressed that field of entertainment and recreation. Although the game has the time spent in these clubs was a waste and was unproductive. taken quite some time to gain popularity, but it has started to At the same time, some admitted that the future of bowling roll all over the city. People are thronging the centers to bowl alleys in Kathmandu is limited due to the lack of awareness and to know more about the game. There are five bowling alleys amongst the people, whereas the rale per game and the fre­ in Kathmandu today. quency of their visits also seemed to have a very significant Being a new field of entertainment in the valley, we the relationship. MBA I st semester students of decided After a detailed survey, we have come up with certain to conduct a research on "Prospects and Scope of Bowling recommendation to improve upon thccxistingpractices adopted Alleys in Kathmandu" in panial fulfillment of our course of by the managers and owners of these bowling alleys. To make Research Methodology. people fully aware of these alleys, more cmphasis should The objective of our research was to know the extent of given to the promotional aspect of it. Similarly, as the rate per popularity of the game among the people,the willingness ofthc game is very high, it would be beneficial to, both the owners people to spend on these bowling alleys and whether it would and the customers, if a new kind of scheme is introduced, which be successful in Nepalese context. In this regard, we have done enables the visitors to play the game at a very nominal rate, eg, a literature survey of various magazines,journals and publica­ providing term membership, ID card. nominal package plan, tions. Out of the total 150 respondents, 75 were categorized as for the visitors. The Nepal Sports Council should also take the visitors and 75 as non-visitors. When the questionnaires were injtiative for the development of thi s sport as it has been doing administered it was found that most of the people visiting these for the other games. Finally, the government should promote centers were in the 18-25 years age group. Most of them the sports by reducing the taxes levied on the import of the preferred to visit regularly with friends and families. The equipment in order to make it possible for the owners to reduce amount spent by them on every visit ranged from a maximum the price charged by them. of Rs 2,000 and minimum of Rs 200. In the highly stressful world of today, span seems to be the Out of the total 75 visitors, 85.71 percent fell that the only medium to get rid of tensions. Bowling, being a new purpose of their vi sit was mainly for fun. 40.25 percent of the source of entertainment in the valley, can easily draw crowds people visited these alleys on weekends, 5.19 percent of the if people give it a try without any prejudice, and, in fact, the people preferred to visit on weekdays while the rest couldn't taste only develops after some repeated trials. • specify the exact time and period of their visit. Out of the 75 non-visitors, 50.18 percent of the people seemed to have some (Based onjoifll-research by Anish Dixit, Kuldip Karki, Pragya idea about the game but didn't know the places where there KC, Shailaja Khadka and Varsha Gyawali, students DJ were being offered. Some of the respondents' stated that price Kathmandu University, School of Management)

28 SPOTLIGHT/MARCH 30. 2001 PASTIME

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ACROSS DOWN SPOTLIGHT I. Give up attempt to encourage purchase I. They're connected with heads and tails of balhroom accessories? (5,2,3,5) (3-4) THE NATIONAL NEWSMAGAZINE 9. Male is emhraJled by cheap fortune- 2. Car moves on wheels (5) telling (9) 3. Showing signs of boiling game and fish 10. Form of words in wedding response (9) keeping onc married? (5) 4. Cracked? They may be (4) 11. Useful skills when facing some tennis? 5. Punch satisfying worker in the sun? (8) (6) 6. Endless attempts to capture British group CEvery Priaay 12. Light-hearted promise of original NHS? such as the Iceni (5) (8) 7. Coll ection will have Govemmem affi- 13. Register whalfs wrong about swi lling ciaJ paying a visit (4-5) gin (4,2) 8. Composer and essayist turning up on 15. Make further changes to study ofimpar- time? (7) tiality ? (8) 14. Protects the front and rear of train (6,3) 18. Trumpet soloist? (8) 16. Party manager concealing a split (2, 1.6) Sycophant backing allyfs party - good 17. Something to be filled in by academic or (6) graduate (3,5) 21. Left-winger to change measure during 18. Ennui, to do with onset of depression in recession (3,5) period of success? (7) 23. Flap or pad in dress (6) 20. Shake a leg and try a lot (7) 26. Rich man pretends to be out? (5) 22. Expedition cheats over odd parts of trek 27. Restricted, with article blocking open- (5) "Praise the Name of the ing - sorry (9) 24. Need to catch up? Last few batsmen will 28. Note redesigned vehicle beginning to bag runs (5) Lord, the most High tyho lead in rightl y famous motor-race (5,5 ,5) 25. Gemstone in ring given by friend (4) hath created and com­ pletely formed His crea­ tures and who determineth them to vari­

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SPOTLIGHT/MARCH 30, 2001 3 1 FORUM Women In Nepal's Socio-Economic Development By JOHN ADAMS Much attention has been devoted to the very real problems and challenges faced by a financial system mat is not functioning very well. What financial sector reform Nepal's poor urban and rural women. It is overdue to take a serious look at women seeks to achieve is to stabilize Ihe banking system. IQimprove its functioning in the in business. finance, and the professions who have succeeded in what is largely a economy. and to design the system to serve the needs of the public. The financial male-dominated world. First, I want to comment on the status of professional sector also includes the stock exchange. insurance companies. finance companies. women in Nepal 's labor force. Second, I want to introduce readers to the cooperatives. some NGOs, and even informal moneylenders. government's efforts. with donor assistance, to achieve financial sector refonns The chief aim offillanciru sector reform is to change the role of government and the reconstruction of the legal framework for business. Third. r want to from one of ownership and management of financial institutions, to onc in which speculate on what these changes in financial and corporate governance will mean the government is the rcgulalor of a largely private financial seclOr. What are the for the women who are playing leading roles in Nepal 's socio-cconomic develop­ main components of financial scclorreform in Nepa1? First. the Nepal Rastra Bunk ment. Professional Women in Nepal's Labor Force We are f0l1unate to have needs to be separated rram the Ministry of Finance and given autonomy 10 manage several recent studies of women in Nepal's labor force that give us a fairly clear the money supply and to supervise mosl financial institutions. In turn. this requires picture. Because Nepal is predominantly an agricultural country. about 90 percent banks and OIher institutions to prepare transparent and honest financial statements of all women work in farming and in their rum.! households. Some 9 percent work and submit them in a timely m::mner. The World Bank and IMF have worked with in shops, food and tourist services. handicrafts and manufacturing. and as clerical the government to prepare. legislation lhat wilJ creale an independent NRB and it workers. The other main feature of Nepal's labor force is that, particularly outside is now pending in parliament. Second, othersupportmg laws will be prepared and agriculture. women areseverely underrepresented in the workplace relative to their pushed through parliament in its nex:t sessions. These include a new law for~i:" numbers; in other words, their participation rate is low, because ofhiSloric cultural and other financial institutions and anew company law. These taws will setlhe bias against women working outside lhe home. In passing. we may note that a poor for such things as the responsibility of board members. capital requireme , country can ill-afford to lose theeconomiccontributions one-half its population can protection of shareholder rights, and accounting and audi ting standards. A bank­ make. A rising rate of female participation in the labor force will be a strong signal ruplcy law is being prepared as well. as are others. Implementing and enforcing the that Nepal's economy and society are advancing. new laws will require a slrongjudiciary and wider knowledge among lawyers::md The focus of this anicle is on the remaining 1 percent of the female workforce judges about contract and commercial law. Thus. the ADB is going 10 help the that is employed in the professions such as medicine. accounting, teachers, Inw. Supreme Court. the legal profession createaJudicial Training Academy, and other management. banking. and finance. In urban areas. professional women comprise donors will be providing training for practicing lawyers. one out of every 12 female wo rkers. These numbers are small. only some 30.000 The refom} proc~s is complex and depends on many interlocking adm.inis­ in all. mostly in the cilies. but are rising slowly . There are very few professional and trative. ownership. and legal changes. In 3 to 5 years, the ways in which banks and managerial women in the rurallabor force. Overall. there are four times as many non-bank companies do business will be profoundly changed. Two other pans of men as women in these top-end jobs. which is an indicator of lhe strength of the refonn process need to be mentioned. These are strengthening the Nepal SlOck discrimination. When we look at the social characteristics of professional women Exchange and the Securities Board so they can handle increasi ng numbers of listed in Nepal's labor force, there is some tendency for caste background to play a role. finns and ensure compliance with adequate accounting and auditing standards so but what seems most important is the closely related level of education. This means that the public has adequate infonn.ltion about companies listed on the exchange. that the choices a woman and her family make about education can greatly or that are offering new shares to the public. influence whal kind of job and income she obtains when shcenters the workforce. TheADB and other donors are interested in bringing Nepal's accounting and At any socio~economic level, a girl will benefit from schooling and have the auditing standards in line with international standards. Thus. the Institute of potential for upward economic mobility. With alitemcy ratcin Nepal of only about Chartered AccountantsorNepal (lCAN) is to become an aUlOnomous professional 30 percent for women. clearly there is much room for women to benefit from society with broad powers of self-governance and responsibility to bring busi­ schooling and on-the-job lmining. nesses into line with accounting. auditing. and disclosure standards. Pushpa Shrestha has done a study of educated women in urban Nepal. What Impact of Financial and Corporate Govemance Reforms What do these is interesting is that it shows that how well women succeed in Nepal's laber force reforrm mean for Nepal and women working in the financial and business sectors, is shaped by thesUlne factors lhat opemte in other nations. even rich ones. Education a.nd in government or private NGOs? We know f ram other country experiences that leads to high-wage jobs in trade, commerce, the professions, management. and a solid. well-functioning financial system will help people. and NepaL save m~~ services. Women with one or two children below the age of five are less likely to and invest more, With strong financial intennediation. we have estimated t~ !I be working. The better are the education of parents and husbands, the more likely Nepal can addas much as 2 percentage poinls 10 its annual growth rate; for example. ~ are women to work. When a husband has a positive anitude towards his wife's if Nepal is now growing at 4 percent per year, then Nepal would grow at 6 percent working. she has a higher likelihood of labor force involvement. Women from per year. which is a huge increase. This would add no less than $100.000.000 per wealthier fUlnilies work mainly for self-expression and independence, while year to Nepal's family incomes. In addition there would be strong employmem women from poorer families are driven more by economic necessity. effects which in turn would reduct! poverty. Since much ofNepal's poverty centers Unfortunately, a bad workplaceenvironment in which men react inappropri­ on rur'.ti and working class women. large number of them should find themselves ate ly to women who are their equals or superiors in rank is a negative element for at least a little better off. professional and managerial women. On the whole. with allowance for Nepal's With respect to professional women and women in business. there would also 10w-incOlne status and social restraints on women working, Nepal's professional be positive benefits. Now, access to credit 10 start a business oropen a professional women work in a labor-force environment much like that anywhere. What this pmctice is largely barred for women who lack independent property or collateral means, most critically. is that personal and family choices are capable of shaping and who are not in the male-dominated networks of friendship or reputation. a woman's panicipation in the labor force. the type of work she does. the income Modem banking practices would help level the playing field. We wouldexpcct the she cams, and the satisfaction she derives from being a contributing memberofthe overall quality of banking services to expand in such fields as checking accounts. larger society. PrafessionaJ women. with family support beforeand after marriage. tmde finance. pensions. and investments. Ideally.lIlorecareerpaths would reopen have considerable control over their economic lives. in finance, accounting, and law . Male patriarchal domination of finance and Corporate and Financial Governance in Nepal Nepal's government, with the busint:ss will not end ovemight. but the impacts of refonl1 shou ld push in the assistance of the Asian Development Bank. the International Monetary Fund. the direction of more room and responsibilities for women. Many women have amply World Bank. and other donors, has recently begun a comprehensive pragnun of demonstrated that even in today's unequal world. it is possible for them to move financ ial sectorroform. Together, Nepal Bank Limited, RastriyaBanijya Bank. the ahead. Modernizing Nepal's banking system must include speeding up tasks such Nepal Industrial Development Corporation, and the Agricultural Development as clearing checks. opening up credit card services. drawing in reports from bank Bank hold well over half of the deposits in the country. Each of these major bmnches. creating business and individual credil ratings, and streamlining e­ components of the banking system is publicly owned or dominated: each is commerce. For this reason, theADB is developing adesign for an infonnation and insolvent: and if they were private banks. they would have to declare bankruptcy communications superhighway that would rank among the best in the developing and go out of business. with damage to their depositors and employees. world. • Nepal needs a strong financial secLorto meet the needs ofils citizens, farmers. and businesspersons: in addition. with the ex;pansion Of the South Asian regional This imic!e is based on remarks /IIade by John Adamso;t.()j tlte Unh'ersily 0 economy. and the spreading forces of globalization. Nepal cannot continue 10 have Virginia 's Celller For SOIIfIl Asia" Studies. ar a workshfJp law //Iom"

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