• New Development on Lauda Investigation • Supreme Court Opinion on Citizenship Bill • Integrated Security & nl!u'l!lnI~ml! Longer lasting freshness, longer lasting smile
\ CONTENTS
Page
Letters 3
News Notes 4
Briefs 6
Quale Unquote 7
The export is expected to take a downturn thanks to decline in Off The Record 8 carpet and pashmina and fueled by imposition of counterveiling duty on manimum retail price of Nepalese exports by Indian government and failure to reimburse duty drawback by the COURT VERDICT: Royal Option 9 Nepalese government. Page 16 OBITUARY: Into Thin Air 12
EX- SERVICEMEN: Support Center 13
SECURITY & DEV. PROGRAM: Will The Medication Work'? 14
POSITION POLITICS: Losi ng Steam 21
WORLD BOOK DAY: Fellowship Of Words 25
CIAA : ENDLESS DRAMA BOOK REVIEW 26 Lauda controversy takes a new turn after CIAA takes action against former RNAC chief and board member Page 10 THE BOTTOMLlNE 27
HIGHER EDUCATION PROJECT: Novel Concept 28
PASTIME 29 INTERVIEW: Zeng Xuyong LEISURE 30 The Chinese envoy speak; about Sino-Nepal relations on the eve of the visit by the Chinese premier FORUM: Manohar K. Shrestha 32 Page 22
SPOTLIGHT/MAY 4.2001 SPOTLIGHT EDITOR'S NOTE THE NATIONAL NEWSMAGAZINE Vol. 20, No.42, May 4, 2001 (Baishak 21,2057) hu Rongji, Prime Ministerofthe friendly country in the north is coming to Chief Editor And Publisher Nepal very soon. All parriotic Nepalese are enthusiastically waiting to Madhav Kumar Rimal welcome him with open hearts. It is reliably leamt a large section of the Editor ruling party does not want the government to become over exuberan t and Sarita Rimal not to go out of the way to pamper the distinguished visitor. One need not Zgo very far to understand the reason behind it. But, it will in no way affect the Chinese Managing Editor Keshab Poudel Premier's behavior. We know well and are greatly assured ofthchelp our Chinese friends have always offered us in times of need. The Chinese ambassador in Kathmandu has Associate Editor Bhagirath Yogi minced no words in stressing his cou ntry's unveering support (see the interview inside). Since they don't believe in shallow rhetorics they prefer to maintain a low key. Even Senior Reporter though the visit of the Chinese Prime Minister is taking place after more than a decade, Sanlaya Dhakal relations between two neighbors have been so unblemished that there are no proble Reporter whatsoever that would engross their attention. A couple of agreements on Chin Akshay Sharma Cooperation to Nepal are expected to be signed. We do hope our honored guest is sure to Design and Layout set at rest any concern the Nepalese people might be harboring due to the unstable political Jyoti Singh situation in the country when he meets the Nepalese monarch. We exhort all the twent~ three million Nepalese to accord our Chinese friend a very hearty welcome. Photographer Nishchal Chapagain * * * Two recent eve nts have blackened the already soi led image of Koirala government [0 such Art M.S. Khokna an extent that all the waters in the Koshi will not be able to cleanse it. One, is the Bill to amend the citizenship act which was presented to the Head of the State for his final Legal Advisor approval. 111e hue and cry the bill generated in the counrry forced the King to seek the Advocate Lok Bhakta Rana advice or the Supreme Court. Now, the Supreme Coun has expressed its opinion that the Marketing/Advertisement bill is unconstitutional. Since the Supreme Court had no political axe to grind there could Sarit Rimal (USA) be no ground what soever to doubt the genuine objectivity oftheSupreme Court in arriving Marketing at such a conclusion. The Bill, if it had become the law of the land, would have opened Madan Kaji Basnet the nood gates for aliens to acquire Nepalese citizenship and ultimately the sovereignty Navin Kumar Maharjan of the eountry would have been gravely endangered. Nothing could be more sinister than Madan Raj Poudel the intentions of the Nepali Congress that only to assure their prospects in future elections Editorial Office their lawmakers did not even hesitate, for a moment. to pawn the independence of their GPO Box 7256, Baluwatar, Kathmandu. Tel: (977-1) 423127, Fax: (977-1) 417845 country Granted that the two septuagenarian leaders tried to aSserl their loyalty to t' Chief Editor's: 435594 motherland. But what about other law makers who were born in Nepal"? Has their bl E-mail: [email protected] also turned white? And even more surprising and bewildering has been the behavior of Internet Add: http://www.nepalnews.com/ spotlight the opposition law makers. How could they pertllit the bill to have such an easy passage in the House? Kudos 10 King Birendra and the judges of the Supreme Court for Cover Design safeguarding the integrity of the country. Wordscape Kamal Pokhari, Ph: 410772, Fax: 432872 TIle other event is the ignominious expUlsion of the diplomat of a friendly country. Indeed. Pakistan is an enemy country to India. Is it also an enemy country to Distribution Nepal? Why should have the government of Nepal put the Pakistani diplomat to such a Bazaar International 228 Sanchaya Kosh Bldg. Kathmandu humiliation is beyond one's comprehension. After all. who is running the government G.P.O Box 2480, Ph: 222983 Fax: 229437 here? Is Girija KoiralaPrime MinisterofNepal orChiefMinis(cr orone Indian State? All a-mail : [email protected] proud Nepalese must hang their heads in shame. Indeed. diplomats are turned persOIIG flon Printers: Kishor offset Press (P.) Ltd. grata and expelled. But there are ccrtain diplomatic nonns and conventions that guide p.a. Box 4665, Galkopakha, Thamel, such actions. Why should the Vienna convention have been so blatantly violated? In Kathmandu,Tal: 351 044 (011),351172 (Res.), Fax: 977-1-351172, whose interest? Has the Dean of the diplomatic corps any obligation IOwards the E~mail: [email protected] accredited diplomats? We want answers to all these question. Will any body oblige?
C.D.O. Rcgd. No 151/039-.0 Postal Rcgd. N~ 42/057/58 U.S. Library of Congress Madhav Kumar Rimal Catalogue No. 91·905060 Chief Editor& Publisher
2 SPOTLIGHT/MAY 4. 2001 LETTERS ______
The Root Nepalese people thal he does not have a serious challenger Problem (Koirala Gains Strength Spot The widespread poverty light April 13). Hisopponems. is the root of most of the ills inside and outside the party. the country is faCing today seem helpless in frontofhim. (Goab. Damn Goals Spotlight He effortlessly won hiS war IQ April 27). Be it the Insurgency take possession 01' PM's post or the i !literacy or tht! unem against his main rival Mr. Sher ployment. most or Nepal's Bahadur Deuba. Despite the problem have their roots In deadlock and perplexity III the the economics. Without ad lower- house of the parlia dreSSing this root problem. ment and the challenge posed none of the problems can be by united opposition parties solved. The country', efforts. including UML General Sec therefore. ,huuld be geared at retary and the leader of the resolving it~ economic proh· opposition Madhav Kumar lems if that is done. Ncpale~e Nepal who and other rival will witness a gradual devel leader~ were arrested hecause opmt::nt of the country. The they demonstrated against PM latesl poverty reductjon strat asking for his resignation over egy by the government is a his involvement in Lauda posiuvc move. But the taste Scandal. Though millions of uf the pudding lies III the cat ordinary people do not want ing and withou; lis proper to see him as the Prime Min implementation, the problems ister of Nepal. it is our fate to will persist. see Koirala as PM and there is Shekhar Basllet no alternative to PM Koirala. Naxal So Mr. Koirala is the PM of this poor. underdeveloped country. can understand why politics lished in your last issue has Devolution Is The Key SlIbhash Lohalli in our coumry cannot stabi come as a total surprise to us As suggested by your Kalopool. Kathmandu 'er story on poverty (Goals, Iize.It is no wondenhat Nepali (Spotlight April27). Wecould amn Goals SpOllight April Congress government gives a not have visualized that the Burning Issue free hand to the Indian RAW Bangladeshis were forced to 27), the Si nghdurbar-prescri bed Piracy and infrin gements to meddle in our inrernal af resort to arms to defend their programs is not going to reduce of intellectual property rights poverty in Mugudistricl. A thor fairs. Since they cannot sur national interests. we is a bur~lng issue w?r ldwide. vive without the suppOrt of Nepalese, indeed. have to take ough decentralization and the The arlic1e on music piracy their masters and mentors - lessons from these happening. local demand-driven programs (Haunted By The 111eft Spot the Indian - they shut their The hcgcmonistic attitude of need to be implemented if we light April 19) provided the eyes to the nefarious activi the Indians will always des ta are to reduce poverty. The par information about the situa ties of RAW. We patnotic bilize our politics. The only ticipation of local people in the tion here. It is unfortunme that Nepalese have not only 10 way we can stop is with a na Jevelopment projects would the authorities do not seem understand this but to make tionalistic government. So, we help instill a sense of commit serious aboUl checking sllch our simple Nepalese public have to wait for patriotic poli ment, which would go a long piracics. I f the Silumion per aware of such anti-national ticians la come lO power. way in achieving sustainable sists, there will come a day behavior. Do keep on educat Ani! Shreslha, development. when our creative talents will ing us. We arc with you. Bir Mallalldhar Rakesh Bista stop working completely. Why Patriotic Nepalese Kathmandu Sanepa should they work if some Kathmandu thieves are allowed to copy Eye-opener No Alternative? their works and ga in there Your edilOr's note of Let Nepal Learn It is true that Prime Min from? April 27 (Spotlight) came as The leuer of the Nepalese ister Girija Prasad Koirala, has Govillda Bhattarai an eye-opener to us. Now we students from Bangladesh pub- sought to convince the Thimi
SPOTLIGHT/MA Y 4. 200J 3 - NEWSNOTES
Nurses End Strike verify little morc than 200 families over coun ler- in surgency operations. Whcn one month. The minister said Nepal would police fails to comrol an ;nsurgency. thcn Nearly 200 nurses serving at the Bir. propose to Bhutan the setting up of addi the army is mobilized to suppress the Hospital, the oldest hospital in the coun ti onal teams to expedite the process. The rebellion. But on ly in suc h a case where try, ended their three-day strike late Sun verificat ion process is under way to deter the hands of the army are not ti ed and a day after the hospital management agreed mine the nationality of nearly 100,000 state of emergency is declared in the re to partially fulfilltheir demands for more Bhutanese refugees languishing in camps gion. Rana said the army is already pro· benefits, Nepal Samacharpatra daily re in the eastern Nepal for the last II years. viding security at the district headquant: rs ported. The strike had affected the emer Leadillg dailies report April 27. and can also move in counter-insurgency gency ward and the hospital was not ad operations. It would be much easier for mitting new patients, reports said. A four Preparation For The the army to accomplish its job if parlia member committee formed by the Health ment and police suppOrt ils actions. In our Ministry held talks with the agitating Tenth Plan Under Way case, the amlY is much more powerful nurses, who had gone on strike demand Even before concluding the mid-teml than the (Maoist) rebels. So, if there is any ing a night all owance ofRs 125 per ni ght review of the Ninth Plan, the assault against the army. it will retalia' government has started In such a case, the numbcr of c(l!)ualu preparations [or fomlulating could be much high. Of course. dialogue the Tenth Five Year Plan is the best way to re so lve this contlicl. But (2002-07), a senior official if they (the rebels) don't want to come to said. National PlanningCom the table of negotiati ons. mobilization of mission member Or. Jagdish the anny is a must, sa id Rana. Deshalller, Chandra Pokhrel said the April 22. forthcoming plan would adopt an integrated develop Agriculture Production ment approach like that of the regional development Declines concept. Addressing a talk As against the target of attaining 5 '-_=.. _...JI .. ______.....l program on development percent annual growth in the agriculture Bir Hospital chall enges in Karnali region sector, the average growth of agriculture here Wednesday. Dr. Pokhrel sector in the first three years of the Ninth said the government would accord top Five Year plan (1997-2002) was less than and a health hazard allowance amounting priority to the integrated development of 3 percent, Kantipur daily reported. Ac to 50 percent of their salary, among other the mid-western regi on - the hotbed of cording tothemid-terl11 review orthe plan things. As per the agreement, the hospital the five-year-old Maoist insurgency - in conducted by the National PlanningCo management has agreed LO provide a night the forthcoming period plan. He said the mission (NPC). of the total planned ex allowance of Rs 100 per night to the government had prepared a detailed sur penditure of Rs 21.52 billion during the nurses and constitutea committee to study vey to connect Dolpa district through road plan period. only Rs 7. 16 billion was their other demands. Compiled from re· and was considering a plan to con nect sancti oned during the tirsl three years of ports April 30. remote nonhern districts with China the plan. A UML lawmaker. Dr. Dilli Raj through five points in Tibet. People's rep Khana!. said the poor implemental ion of Nepal-Bhutan resen tati ves from Karnali blamed the gov th e Agriculture Perspective Plan (APP) ernment of neglecting the region and de was the main reason for the dismal perfor Meeting Likely manded morc resources and attention from mance of the agriculture sector. Compiled Foreign Minister Chakra Prasad the central government to avoid any sepa from reports April 29. Bastala has hinted that a mini sterial level ratist or insurgent activities in the region . meeting between Nepal and Bhutan could Compiled from reports. Trust Interested In be held soon to expedite the process of joint verification of the Bhulanese refu 'Army Is Much More Powerful Developing Upper Karnali gees in eastern Nepal. Talking IOfeportcrs A Singapore-based humanitarian trust in his home district oUhapa Saturday, the Than The Insurgents' has showed intere st in developing the 300 minister agreed that at the current pace. it Fotmer chief of army staff, Satchit MW Upper Karnali hydroelectricity would take a long time to complete the Shumshcr JB Rana, has said the Royal project, a leading daily reported Sunday. verification of the refugees. The Joint Nepalese Army. besides carrying out res According to the rcport. a delegation from Verification Team comp:ising officials cue and relief operations, can be mobi the Elysee Frantire Trust based in from Nepal and Bhutan has been able to lized in internal defcnse and internal Singapore but owned by the French is 4 SPOTLIGHT/MAY 4. 2001 l NEWSNOTES arriving in Nepal next fortnight to deposit Indian Embassy component of the MWSP that is designed a su m of Rs 50 million as an authorized to divert 170 million liters of water into capital and start final survey of the project Denies News Report the capital vall ey every day. Leading dai area. The trust has already registered a The Indian embassy in Kathmandu lies report April 25. • public limited company to develop the has categorically denied reports alleging project. Thc trust, which wants to mobi that an ex-Indian Gurkha soldier was ab li ze profits from the project into humani ducted from the embassy premises and Dwarika's Wins Award tarian works in Nepal, has offered a 30 taken 10 Lucknow for further investiga percent share of the project to the state tion. The Kalhmandu Post daily on April Ambica Shrestha, president of owned Nepal Electricity Authority and 25 quoted First Secretary at the Indian Dwarika's Hotel, has been awarded with also intends to hand over the entire opera embassy, Manoj Bharati, as saying that the prestigious heritage award on behalf tions to NEA after 30 years of its commer the news report was false and ridiculous. of her late husband Dwarika Das Shrestha, cial operation. The project is estimated to "We are looking into the circumstances as her family, and the staff of the hotel. cost up to US$ 468 million, officials said. to how and where he (Chhetri) was picked At a special ceremony held in New Ka/ltipur April 29. up and landed up at a Lucknow prison," Delhi on 23rd April, Shrestba was pre said Bharati. He was reacting to a news sented with the award by S.K. Mishra, report rublished in Kantipur daily Tues "'Floriculture Has vice chainnan ofthe Indian National Trust day that quoted a letter reportedly sent by Promising Future Chhetri to his family members in western Nearly 65 percent of the demand for Nepal saying that he was picked up from nowcrs in Nepal, an agricultural country, the Indian embassy in Kathmandu on is met through imports. experts said. Out March 14 this year and was currently of the annual trading of flower worth Rs under investigation for hi s alleged links 70 million, trade of cut flowers alone is with the Pakistani Intelligence Agency, worth an estimated Rs 30 million. There ISI. Chhetri had retired early this year has been phenomenal growth in the num after serving the Indian Army for 22 years. ber of nurseries and flower trade over the Compiled from reports April 25. last seven-eight years, entrepreneurs said. According to Floriculture Association of Melamchi Project Nepal, number of nurseries has reached more than 300 while the number of flower Likely To Be Delayed shops has also reached 33. Gorkhapatra The completion of the much-talked April 30. about Melamchi Water Supply Project (MWSP) is likely to be delayed by one ares Worth year and may be completed by 2007, officials said. Even that could be further Rs. 1 Billion to Be Issued delayed if the security situation in and Half a dozen companies are preparing around Melamchi valley that falls in the Ambica Sbrestha to issue their preferential and ordinary Maoist insurgency affected district of for Art and Cultural Heritage (INTACH) shares worth nearly Rs I billion to thc Sindhupalchok is deteriorated further, said and Naveen Berry, Chairman ofthc South general public, a daily newspaper reported. newly appointed Secretary at the Ministry Asian Travel & Tourism Exchange According to the report. the Securities Ex of Housing and Physical Planning, D. C. (SATTE). change Board (SEBO) is currently study Pyakurel. Earlier, officials had estimated The award was issued jointly by the ing proposals submittcd to it by the Everest the project to be completed by 2006. Mean INTACH and SATTE. This is the first bank Limited, Taragaon Regency Hotels while, donor agencies have reiterated that time this award has been presented in Ltd. Union Financc Company, Nepal De the works on the tunnel component of !.he recognition to work done to promote the velopment Bank, Nepal Bank of Ceylon project would not start until thc govern preservalion and restoration of heritage and Nepal SBI Bank Ltd to go public. Of ment hands over (he management of the ""\\\',,,. \M. "",,,,1£ ~\ ~ :;',,,,m. them, the Taragaon Regency Hotels has Kathmandu valley's drinking water sup Dwarika Das Shrestha was a pioneer proposed to raise up to Rs 446 million from ply to private operators. "Without the in the Iicld of reviving the heritage of the capital market. These companies are private sector in place, there will be no Nepal and passed on his passion for pre issuing their shares at a lime when there are work for tunnel construction," said Arthur serving wood and brici(work to his fam reports of excessive liquidity in the markel Mcintosh, team leader of the Asian De ily. Today the Dwarika's family has grown due to Jack of new opportunities for invest velopment Bank mission that is currently to include over 200 employees who work ment. Kalltipur April 30. in the capital. The 27-km tunnel is the key within the hotel in Kathmandu. •
SPOTLIGHT/MAY 4, 2001 5 dures of 1.380 people belonging to 233 Bhutanese refugee families out of nearly 100.000 refugees languishing in the refugee camps in eastern Nepal for more than last one decade. The JVT started the verification process in late March as agreed upon during the joint ministerial level meeting in Karhmandu late last year. Refugee leaders have expressed dissatisfaction over the slow process of the verification saying that it could take up to six years to complete the verification at the prcsem pace.
THE NEPAL ELECTRICITY AUTHORITY (NEA) ANNOUNC ed last week that it has ended power cuts in the capital valley during daytime due lO improvement in the flow of water. The power cut will also be Slopped in other parts of the country as soon as there is marked Crown Prince Dipendra meets with f.::~~:::~ increase in the flow of snow-fed rivers. the state-owned enterprise said. The NEA had enforced up to eight-hour long load shedding every day Akihito and Empress Michiko since early April this year citing reducing water level at its power SOUTH ASIAN COUNTRIES HAVE FAILED TO REDUCE generation plants. hunger in the region despite the inflow of US$1.8 billion in food aid every year. a new report said. A study conducted by the World Food THE NEPAL LIFE INSURANCE COMPANY (NLIC), WmCH Program (WFP) said South Asia is home to 294 million hungry people, received operating license nearly six months back from the In sur. more than any other region in the world. Though the region is nearly Board-a regulating authority- is going to ::.tan operations from ea~ self-sufficient in food production. the problem lies in management and May. The company, promoted by Vishal Group of Nepal, is the first distribution. said the study entitled "Enabling Development: Food private sector company to get license to operate life insurance services Assistance in South Asia," The study said in South Asia around 99 in the country after a period of about 12 years. So far only two million children below the ageoffiveareunderweight, about 30 million companies. including the state-owned Rast riya Beema Sansthan. have pregnant women suffer from anemia at any given time and about 63 been allowed 10 run life insurance services. million people who are food insecure in a transitory way. Addressing a function here Tuesday. WFP Representative in Kathmandu Douglas THE DAILY CIRCULATION OF PERIODICALS PUBLISHED Casson Couns said the there was a need of greater cooperation among in Nepal is nearly 441,000 and the number of readers is around 1.32 the South Asian nations to overcome hunger through an even distribu million, a latest study said. According to a study conducted by direclOr tIon of food. general at the Department of Information Yuba Raj Pandey, the reader ship compri ses six percent of the total population of the country and SIX PEOPLE DIED ON APRIL 29 WHEN TWO PASSENGER almost 21 percent of the literate population above the age of 14. The buses collided near Bhalumara River along the Mahcndra highway in study said the circulation of periodicals imported from abroad (mainly eastern Nepal. According to Police in Jhapa di stri ct, nearly four dozen India) amounted to almost 20 percent of the circulation of indigenous other passengers were injured, nine of them seriously. The injured publications. The annual consumption of newsprint in the county is persons are being treated in different hospitals. Police said [he accident around 3,600 metric tones. RSS news agency reported quoting the took place while one of the buses was trying to overtake the other. In a study. separate case. at leasl 10 people have diedofkala-azarin the eastern terai district of Siraila. The outbreak of the disease a few days back has THE GOVERNMENT IS TO IMPLEMENT A 20-YEAR ROAD already affected 80 village development committees in the district, program from the beginning of rhe 10th live-year plan (2002-07), reports said. officials said. According to the Department of Roads. the project aims at preparing a 20-year road network program. build roads and bridg TWO LOCAL VILLAGERS KILLED THE OFFICIATING carry out restoration, improvement and reconstruction work and est judge at the Di strict Court in eastern district of Khotang Tuesday li sh road links with areas. The estimated cost of the construction 0 • morning. reports said. According to police. Registrar at the district court proposed 4,200 km of road during the period has been estimated at Rs BuddhidharGhimire was stabbed lodeath by two of his neighbors while 8,000 million. The officials didn't say from where such a huge invest he wason hi s way to office at Andhcri Khola, 30 minutes away from the ment would come from. The total length of roads in Nepal at present is district headquarters. Police later took into custody two youths on the 15.308 km oul of which 4,522 km is blacklopped. suspicion of murdering Ghimire. There were conflicting reports about the motive behind ihe murder. While some said some household matters THE FORTHCOMING BUDGET FOR THE YEAR 2001-02 could have instigated it, others quoted police as saying that the accused would focus on addressing the problem of un employ me m, in streamlin have confessed to being Maoist activists. ing the scattered development projects and poverty alleviation pro grams. "A lot of projects remain incomplete on any given year. In PRESIDENT OF THE FEDERA nON OF NEPALESE CHAM addition. there are aJso a large number of poverty alleviation programs bers of Commerce and Industry (FNCCl) Pradip Kumar Shrestha has that need to be streamlined," said Finance Minister Or. Ram Sharan said the tea sector, which currently employs 22.000 people, is expected Mahat, talking to reporters here Monday. Dr. Mahat said despite overall to provide jobs to close to 80.000 people in future with an estimated Rs sound performance of the economy in the past decade, the fiscal froOl. 7.S billion worth of tea production. From eight million kg in 2001.lhe including government finances, is in deep trouble. With the wage bill production of tea is expected to go up to 13 miHion kg by the year200S. likely to ShOOl over Rs 2 billion, revenue collection needs a boost, he The National Tea Policy unveiled recently aims at doubling the land of said. The minister said preparations forthe upcoming budget were in full tea cultivation to 7.000 hectares within the next five years. Shrestha wa.s swing and that the budget would be presented within next mOlllh. • addressing the' Agro Business Interface200 1- Tea Event"last week that brought together represematives from the world's leading tea producing nations - India. Sri Lanka. Pakistan and Nepal- to discuss issues CONDOLENCE including business opportunities. collaboration and joint ventures. The SPOTLIGHT family expresses hcart-fell condolence al the untimely demise of the mother of our legal advisor Mr. Lok THEJOINT VERIFICA nON TEAM (JVT) COMPRISING OFFI Bhakla Rana cials from NepaJ and Bhutan has so far completed verification proce-
6 SPOTLIGHT/MA Y 4. 201" QUOTE UNQUOTE
"I f everyone is equal before the law, there is no alternative to (arresting) the prime minister." Madhav Kumar Nepal, UML general secretary, in Himalaya Times. * * *
"0urunlty .. With the UMLJust. concerns this movement to oust Prime Ministel Girija Prasad Koirala." p/fl'S resi Narayall Mall Bijukc""e, president _~t;o..., is ofNepal Workers and Peasallts Part)', o ""t'tIo.stto .'live Cl W "I never oppose any agitation.. . » Bamdev Gautam, general secretary a/rhe ePN·Marxist Lellillisr, saY;'lg "is par,y extends critical support to the ongoing agitation organiz.ed by six leftist outfits, ill HimaJaya Times. • * • "Talking about dialogue after mobiliz a state of emergency there. If it is in the ing anny will be like pUlling cart before he UML's movement is the result interest of the majority of the people, we "T the horse." should be ready to sacrifice civilian inde of internal disputes in the Nepali Con Kris/lIla Prasad Bhattarai, former pendence for eight months. That could gress." Prime Mi"ister in Punarjagaran. save this system, consliwljon and the par Hom Nath Dahat, all MP of the • * * liamcnt." ruling party, ill Deshantar. Mamnolrall Bhattarai, youtll leader • • • there is a situation of emergency (in "If a/the Nepali Congress, ill Deshanlar. urgency-hit districts). why not declare * * • "T here is no situation of insecurity here. I will tell thi s to the people back home. " "',",ere to ?GiriJabo..ht4 Slwbha De, poplllar }1/diallllove!ist '?• • CCl'l1'11of,9o I alld Ile ...vspaper colulllnist, saying each of her visits to Nepal. espe cially to Pok/IC/ra alld Nagarkot, is LQuela. refreshing as she gets a cflal1ce to se Q'l1dClI escape pol/utioll. ", Nepal Samacharpatra. * • • "Th e situat. .ion .IS nOl proper for street agitation. There is no guarantee that such agitation remain under contro1.'· Pashupali SiB Ralla, former minister alld generaL secretary of Rastriya Prajaralltra Party. In Prakash • • • SPOTLlGHTIMAY 4, 2001 7 OFF THE RECORD NEA-UML can justify almost everything and ears of CPN they do through a few selected UML general sec- Friendship words based on the theories of retary Madhav [n their nearly month-long Marx, Lenin and Mao. When Kumar Nepal. street agitation, the CPN-UML the six. communist factions that Nembang has to and five left parties have done launched the anti-government brief the boss on all onc commendable thing: an street agitation organized a issues related to the nouncing power blackouts as press conference recently, so Lauda Air deal and a tool ofprotesl. Thanks to last called liberal CPN-UML their legal implica Thursday's half-hour forced leader K.P. Sharma Oli justi tions. During PAC outage, the Nepal Electricity fied acts of vandalism by cit meetings, he has to Authority (NEA) could heave ing how Mao and Lenin estab appease members a sigh of relief. The opposition lished the dictatorship of the not to leak infomla al li ance helped the NEA to proletariat. If our comrades ti on on China South save scarce energy. Whether want a new revolution in a new west air deal that Prime Minister Girija Prasad era, however. they must also involves his party. Koirala will resign under op learn to live in the present. On the streets, position street pressure is nOl Nembang has to en- Gautam: Roaring for Revenge clear. However, if the commu Bhattarai's courage young pro- nist protesters continue to use testers to smash windows of Dev Gautam lost almost all of blackouts to register their Silence car and houses in the name of his allies when the rival CPN grievances, the pressure on the Former prime minister complete liberati on. [n these UML managed to lure away NEA power grid will be eased. Krishna Prasad Bhattarai has multiple roles, Nembang has five left groups from his fold. Through their one-hour street maintained relative silence to proceed with caution. If the An infuriated Gautam is mak blockades to two-hour sit-ins, ever since the last central com UML street agitation fails. it ing desperate mOves (Q woo the communist had 10sI some millee meeting of the Nepali wi ll be major setback for the RPP and other groups on credibility . The blackouts may Congress. But how long can Nembang. After all, it was his the ri ght end of the political hm'c come to redeem them. he keep his mouth shut? Those committee that laid the basis spectrum. Known as thccom For its part, th e NEA should who know Bhattarai can'teven for these months of ir.stability rade with the lion ' s roar, encourage our comrades to begin to predict what he might inside and outside parliament. Gautam is prowling for the pursue th e politics of black have to say next and, obvi chance to pounce al his UML Ou ts more assiduously. ously, are worried. PrimeMin.,. rivals who crowned him as ister Girija Prasad Koirala's Gautam's Goal the king of corruption last Communist supporters are trying to en CPN-ML leader Barn year. courage B hatlarai LO keepquiel Defence for a while. But advisers like Annual SUBSCRIPTION Rate •, Communist ideologues Or. Narayan Khadka and __--. Pradeep Giri have Indhillual InsilIUI;,," l"d"idu.. 1 In_("",,,," their own axe to "'pOIl ,\R. R. 1.tIJO.t.U "'-'h R. :!!iml.l, I\e",,1 'R ~ R. 1·1O"'.' 'R, R_ ~~I.'I.' I",h. ICR,_ loW\lOO 1(' R. 3:0000 11l 8 SPOTLIGHT/MA Y 4. 2001 NATIONAL the court can declare a bill null and void COURT VERDICT before it takes the form of an act. "The court cannot declare a bill null and void until it receives royal assent," said senior Royal Option advocate and Congress sympathizer Mukunda Regmi. The Supreme Court declares the citizenship amend Article 8 and 9 have laid down certain criteria to acquire Nepalese citizenship. ment bill unconstitutional Article 9 (I) of -the constitution says a person who is born after the commence By KESHAB POUDEL lions to the Council of Ministers on mat ment of this constitution and whose father ters of national importance. is acitizen of Nepal at the birth ofthechild fter an exhaustive hearing last This was fourth time in the last 10 shall be a citizen of Nepal by decent. A month, a seven-member full bench years that the King sought the opinion of One of the clauses of the sixth Citi of the Supreme Court this week ruled that the Supreme Court on a constitutional zenship Act amendment bill is to provide . sixth Citizenship Act amendment Bill dispute. From the Dasdhunga Commis citizenship for children on the basis of the was against the spirit of the constitution sion to fhe recommendation for thedisso citizenship of his or her mother. and declared it null and void. The next lution of House of Representatives in 1997 The amendment bill was first passed question: how can the process of declar and the sixth Citizenship AmendmentAct, unanimously by the House of Represent a ing the bill dead formally begin? the justices of apex court have experi tives but the Upper House later refused to While declaring the bill null and void. mented with the process several limes. hold a debate on it. the apex court also submitted to The Nepali Congress the constitutional monarch the .------~ through its majority in the House option of returning it to a joint of Representatives passed the session of the parliament with a bill a second time. As the legis Royal message. lation was introduced as a fi Prominent constitutional law nance bill. the palace was ex yers also see this course as the 1ll::n:1l1I4~ pected to approve it. best available option to the king However, after the bill trig since the bill originated in the gered a national controversy, House of Representatives. Ule King, under Article 88 (5), Under Article 54 (3) of the sent it to the apex court seeking constitution, His Majesty may its opinion on whether,the mea send messages to either or both sure was in accordance with uses of Parliamenl. The House Articles 8 and 9 of the Constitu receiving such message shall, as tion of Kingdom of Nepal 1990. early as possible. consider the According to the 88 (5) of matter mentioned in the message the constitution, if His Majesty and submit its opinion to His "S':'u-p-re-m-e-C-o-u-rt-,-G-iv-e-s-g-u-id-e-l-in-e-----....:JI!!:l.....:..--...1 wishes to have an opinion or Majesty. the Supreme Court on any com- According to Article 71, a bill shall Although the King does not have to plicated legal question of intrepretation become an act after His Majesty grants his follow the court's opinion as it is not of this constitution or of any other law, it assent to it. If the King sees the need for legally binding. it would be inconsistent shall, upon consideration on the ques- further national debate on the issue. he with the principles ofa democratic set up tiOIl, report his Majesty its opinion must send it the house. to ignore it. ' thereon. • The court has mentioned Article 27, Although a section of constitutional The constitution. too, has many which lays down the provision regarding lawyers affiliated with the ruling NepaU mechanisms LO settle disputes in a demo- the role of the constitutional monarch. Congress party criticized the opinion of cratic manner. In the last one decade, the Article 27 (3) of the constitution recog- the court, arguing that it expanded the constitution has exercised itsjudgment on nizes the role of His Majesty to preserve authority of the King, the justices seemed various provisions. and protect the constitution by keeping in to have incorporated in their opinion the By forwarding its lucid opinion to the view the best interests and welfare of the range of options available to the constitu· King on the citizenship issue, the Su- people of Nepal. The court also pointed to lional monarch. preme Court has once again demonstrated Article 43 (2) through which the King The opinion of the court has sparked its maturity in discussing constitutional may make recommendations or admoni- a new round of controversy over whether issues. • SPOTLIGHT/MAY 4. 2001 9 NATIONAL the main opposition party CPN-UML and other left parties, whose street agitation demanding the reSignation of Prime MinisterGirija Prasad Koirala over his alleged involvement in the deal had appeared to have fizzled oul. If the suspects change their statement - after coming out of the police lockup. will the elAA ask for another deposit? Is it going to file its cases soon or will it give politicians and others to manipulate the investigation by drag ging its feet? According to CIAA officials, the deposit was demanded to ensure that the suspects did not flee the country. Under Section 19 (4) of the CIAA Act 1991. the commission may ask deposit and remand from a suspect on two grounds; where there is an adequate reason t believe that a suspect may disappear or ca damage. If suspects do not post the deposit, the commission may order them to be taken into custody. However, in thecaseofShresthaduo. legal experts do not seejustification in deposit sought by the CIM. Did the authorities have RNAC : Controversy-ridden conclusive information that the suspects were planning to flee or did they act on their collec tive hunch? LAUDAAIRDEAL In the case of an organization that is run according to normal business principles, one cannot predict profits or losses. Are the CIAA 's Endless Drama officials capable of assessing it? According to the present setup of the constitution, officials are only penalized when misappropriation and The ClM's action against two fonner RNACofficials poses athreat to established abuse authority is proved, not for mismanage principles of the criminal investigation system and the rights of suspects ment or misjudgment. The CIAA may seek deposit for misappropriation of money from the suspect. but there is no rational to ask for By KESHAB POUDEL proceed to the police lockup? such money in the loss of business dealings. Do the constitution and law permit such Otherwise. the CIAA would have to order t'" actions? Are those expected to guard against arrest of all heads of government corporati y sending two former RNAC officials corruption and abuse of authority themselves that are running losses. B ~uspecled of involvement in Ihecontro· bound by any rules? Is the CIAA accountable In a political process based on the rule of versial Lauda Air deal into police custody to any body for its deeds and misdeeds? This law. the CIAA's actions, though taken under through a late-night decision - after they latest episode has proved once again that,like the taw. raises many questions about its com failed to post Rs 50 million (US$650,OOO) in most other institUlions in Nepal,the CIAA run mitment to the individual freedom ctJld estab security deposit each - the Commission for on an entirely ad hoc basis. lished nonns of criminal investigation system. Investigation of Abuse of AUlhorilY (CIAA) After nearly five months of investigation. If constitutional bodies like the CIAA start to asserted its right to demand any amount of the ClAA demanded security deposits from interpret the law arbitrarily to punish suspects bond in any case. Furthermore, the CIAA's former R NAC executive chairman Hari Bhakta before proving them guilty, the veryessenceof • decision has raised many fundamental issues Shrestha and board memberTinha Lal Shrestha the rule of law will suffer. In a liberal society. relating locriminal investigation and Ihebody's on April 26 in connection with the Lauda Air a suspect has to be given adequate time to ability to conduct a probe impartially, fairly deal. On the same night, the elAA also de plead his case. If someone is put behind bars • and competently. cided to impound the passport of former min arbitrarily, what difference remains between The case has given rise to a host of essen· ister of culture, tourism and civil aviation democratic and autocratic systems? {ial legal question. How and when does the Tarini Duna Chataul. The ClAA officials defend their demand CIAA fix the amount of deposit money? What Nobody knows whethertheseactions rep of deposits from the two suspects. claiming it is the protection available [Q a suspect in case resented the conclusion of the CIAA investi was made in accordance with the existing law its demand astronomical figures arbitrarily? gation on the controversial deal to lease a and the constitution. "After changing their Did the CIAA officials know that no one could wide-bodied aircraft from the Austrian airline r.arlier statements. the suspects showed that be expected Lodeposit such a huge sumat such company. IftheCIAA still has any thing else in they could do anything at the time when the short notice? What was the motive behind the mind, it has remained tight-lipped. Its deci case is filed against them. We asked for the decision that gave the suspects no choice but to sion. however, has given new ammunition to deposits since we had information that they 10 SPOTLIGHT/MAY 4, 2001 NATIONAL might have been planning to flee the country," case when the Supreme Coun upheld the right Chairman Shrestha was suspended from said a source inside the, CIAA. of the individual. In a writ of habeas corpus filed his RNAC position on the recommendation of The CIAA has the constitutional rigbt to by Yogya Muni Banjade, the apex coun then the CIAA on the ground that he could hide or investigate any accused on charges of abuse of declaredadecision ofSpeciaI CourtjudgeDurga destroy evidence. How did the commission authority and corruption. Article 98 (1) of the Das Shrestha illegal and put a fundamental find it fit to accept a statement made be sllch a Constitution of the Kingdom of Nepal 1990 mark on individual freedom. person? What would be the credibility of an says the CIAA may, in accordance with law, Ironically., the ClAA. which has two com investigation based on such statements? conduct or cause to be conducted inquiries missioners who were associated with the panel As the CIAA team visited Vienna. where into. and investigation of, improper conductor that drafted the present constitution. directed the airline has its headquarters, it may have corruption by a person holding any public two suspects to deposit Rs 50 million each, developed some opinion based on that trip. Is office. Even the constitution specifically men knowing full well that it was impossible for there any reason to believe in a statement ofa lions that the actions must in accordance with them to bring that kind of money at such an odd questionable suspect? law. Does the elAA follow the rule oflaw or hour. If other suspects change their statements, has it turned into another despotic institution Drama after the Statements: The Lauda can the CIAA go through a new round of under a democratic liberal constitution. Air deal drama took a new turn after the investigation in all the other cases pending No onequesLions the right oflhe ClAA to Shresthas submitted new statements with the before the ClAA? ''This is a very dangerous up the accused. 'The CIAA has been CIA A pleading that right steps to contain corruption that they were not alone in is rampant in the country. In a corruption case, taking the decision to there needs to be stronger actions against the lease the aircraft. The accused." said advocate Bal Krishna Neupane. elAA. whichwasinthe ''The corrupt mustbe put injail fortheircrime. final stage of preparing When theCIAA establishes guilt, it can seek a its investigation report deposit from any suspect." and filing a case in Theobjection is over the way the decision court. saw the state was taken. The Shrestha duo could have been ments as a way of bol put behind bars through due process. If the stering their case. CIAA wanted to send them into police cus~ Theregistrationof tody. it could have exercised the power avail~ the new statements at able under Section 16 of the ac!. According la the CIAA was itself the section, ClAA can take an accused into mysterio us. Who custody subject to the court's approvaJ. Had the prompted the duo to CIAA had sufficient evidence of wrongdoing changing their earlier against the duo, it would have followed this statements to the procedure. CIAA? Former execu Although the CIAA has already taken five ti vechainnan Shrestha. months to investigate the Lauda Air deal case. who holds a law de~ is yet to file a case in coun against any gree, might have dividual or institution. The hastily taken late known that the new rev~ night decision of the commission has raised elation might be fatal 1..-...""..,...,...... ,. __ questions about its ability and credibility in for them because [hey preparing a final case. would give aclue to !'he --=~~.:..:~::':~~~~~------ After the arrest of the Shrestha duo. the CIAA to start a [unher probe. trend. There must be fixed terms and condi UML and other opposition parties have found a Some suspect that the Shresthas regis tionsof acriminal investigation." said a former ray of hope in their effort to drag Prime Minister tered their new statements under the influence police officer. Koirala into lhe controversy . At a time when the of political rivals of Koirala who want to Whoever eventually wins or loses, Lauda country is under immense political instability embarrass him at a time when the CIAA had Air is gelling publicilY throughout Nepal and because of the Lauda Air deal. pushi ng the case not found sufficient basis to link the prime the world because of me foolishness on the part for further investigation would risk damaging minister. "Why the Shrestha duo filed the of Nepalese officials. The longer the case con~ the political process as a whole. explanation in the CIAA at the final stage of tinues. the greater the chances of new contro~ Instead of investigating and preparing its the investigation is the million-rupee question versies arising. Is this a criminal investigation, case within thepurviewofruleoflaw.theClAA here," said a lawyer. on condition of anonym~ a child's play or a game of cards between seems to bechoosing a more populist approach. ity. "A professional lawyer would never give different political forces and Mafiosi? How WIlen the ClAA, which is obligated by the such advice." long is the CIAA going to wait for suspects to constitution to check abuse of authority by An equally important aspect is the basis change their statements before wrapping up the others, itselfindulged in such a late·night drama, on which ClAA accepted the new statements. case? what would be !.he fate of rule of law in the If the CIAA investigates on the basis of each The action and inaction of the C!AA country. In a democracy. one has to respect the individual changing statements, it would never raises doubts over whether it can retain its rule of law and every institution has to respect be in a position to file a case. Is somebody credibility to conduct impartial and fair inves theimponanceofindividual freedom. TheClAA conspiring to kill the case or is there some tigations protecting the constitutional rights of leadership seems to be ignoring a 21-year-Old political motivation? the individual. • SPOlLlGHT/MA Y 4, 200 I II NATIONAL they discovered him lying still at the bot tom of 200 m crevasse. The legendary Sherpa climber was gone forever -leav ing behind a stack of records. One of the most popular mountain eers in the country, Sherpa made world records by climbing the highest peak in the record time of 16 hours and 56 minutes last year. The year before he had set an other record by spending 21 hours atop the Everest without bottled oxygen. He also holds another record of having climbed the roof of the world twice in a single season. Sherpa's death is an irreparable loss to the mountaineering in Nepal. Aft, Babu Chhiri, only two more Nepali summiteers, esnow leopard' Ang Rita Sherpa and Appa Sherpa hold the feat of climbing the Everest for ten times or more. As Babu Chhiri was still in his youth, he could have made many records but the snowy slopes of Everest got better of him. For a man who had literally sprinted to the Everest lOp, slipping down a crevasse while taking snaps appears a bizarre acci Babu Chhiri (left) with his wife: End of a legend dent. A humble Sherpa from Taksindu in Solukhumbu district, Babu Chhiri is sur OBITUARY vived by his wife and six daughters. Apart from several awards and felicitations, Babu Chhiri was also decorated by Gorkha Into Thin Air Dakshin Bahu by His Majesty the King for his exemplary feats. Nepal loses its record-setting mountaineer in a strike of Babu Chhiri, who himself could I ill fate attend school, had wished to open up a school in hi s native village. He had even approached the authorities to help him set By SANJAYA DHAKAL however, fell into a crevasse. tljs body up the school. was recovered on the Monday morning He started his outstanding career in abu Chhiri knew his mountains. A but could not be brought down to Everet mountaineering at the tender age of 13 B tcn-time Everest summ iteer. his Base Camp due to bad weather, reports years. First, he scaled the Kanchenjunga favorite pastime was taking snaps. On said. peak in 1989. His maiden Everest climb April 29. 2001, Sunday, Babu Chhiri This time he had gone as a part of the was achieved the following year. Sherpa died after he fell into a crevasse Kathmandu Metropolitan Corporation The Prime Minister Girija Prasad while taking snaps of the mountains. He expedition to Everest. Koirala expressed deep sorrow at the de • had gone out of his tent that afternoon La It was not before three hours since he miseofBabu Chhiri Sherpa. In a message pursue two of his greatest passions - left his tent that his COlleagues sensed to his family, PM Koirala expressed con mountains and photos. Unfortunately. his something was wrong. They had thought dolence at the death of one courageous very passions took his life. that he was visit in g other tents nearby and mountaineer. According to officials, the 35-year did not bother about his absence. Meanwhile. the Ministry of Culture, old Sherpa had gone out of his tent at the Belt when the panic set in after he did Tourism and Civil Aviation has decided Everest Base Camp II located some 6500 not return for long, the colleagues went to provide one hundred thousand rupees III above the sea level. without informing out to search him - following the foot as inmlediate relief to the family of Babu his colleagues. to take some snaps. He, prints in the snow. At around midnight, Chhiri Sherpa. • • 12 SPOTLIGHT/MAY 4, 2001 NATIONAL "We also focus on welfare programs." EX-SERVICEMEN Major Chatterji says. "There already is a hospital here in Dharan equipped with medical facilities. We have been sending Support Center medical teams to remote places where many ofthe ex-servicemen live. If further Nepalis retired from the Indian armed forces receive pen treatment is required, they are sent to the Baghdungra Hospital in India." sions and a range of services from an office in Dharan He added: "Last year we provided medical facilities to 35,000 ex-service- BY AKSHAY SHARMA in Dharan the ex-servicemen, an office was opened men and other people. The medical team in Ohankuta under a bilateral agreement. provided medicine worUl Rs 400,000. We In 1960, the task of operating the office have also been providing drinking water he picturesque city ofOharan, about fell on theshouldersofPrabhari Adhikaray. and have launched a school road project. 250 km east of Kathmandu, has Major Chatterji has traversed the hill The children of the servicemen have been .000 people who once served in the trails of eastern Nepa\. "I have visited provided with assistance amounting to Indian armed service. 11le Gurkhas have most of the places ex-servicemen live. between Rs 20,000 and Rs 200.000." been praised for their bravery and the Places like Okhaldhunga, Khadbari, The elderly and widows of service- near-impossible feats they have achieved Tapelejung, Bhojpur, and Solukhumbhu," men also have been receiving special fa- in battlefields around the world. The lat- he said. "Serving these people well and cilities. From 1998. the program has been est instance was the battle at Ti- extended to Salleri, gcrHills, Kargil, when the Gurkha :-----'r.-:;r-:-----~:o:"lI Solukhumbhu and Phidhim. Rines of the Indian army was MajorChatterjihimselfwas praised for its courage. born at a military hospital in Nepalis who have retired Ochradun On July 21, 1967. from the Indian army have been Asked why he chose a career in receiving pension and other ser- the army, he says: "My family vices for nearly four decades. background was the main rea- Major A. K. Chatterji has been in san. My fauler used to a colonel charge of the pension distribution in the Indian army." process since September 2, 2000. The Oharan center has also "The men that have served the been providing drinking water Indian armed forces are being facilitjes to many of the vil- . ven pension and a host of wel- lages these ex-servicemen come e services," he says. "My in- '-______~ .... from. The family of the person- centive is to strengthen Indo- A market in Dharan : Bustling city nel that have served and are Nepal ties," serving the Indian armed forces The program was started in 1960. addressing their problems remains my top have been provided with trainingin com- Ex-servicemen earlier had to go to priority. I have received immense respect puters, sewing and cutting, and typing at Darjeeling. Purniya, Laharisaraya or wherever I have travelled. I have enjoyed subsidized fees. Kumaraghat in India to get their pension. dhedo and gundruk with many of these These people have also been pro- After India and Nepal agreed to process families." vided with such facilities as library, TV, pension distribution more smoothly, it With a view 10 easing the distribution videotapes and other fonns of entenain- was decided that an office should be process, in response to requests from ment. Shops have been opened to offer opened in Nepa\. former soldiers, the office was moved families goods at a fair price. They are • Organized efforts to distribute pen- from Ohankuta to Oharan. "Apart from also provided with telephone facilities sions to retired Nepalese soldiers dates providing valuable help to ex-servicemen, and receive banking service offered by back to 1958. At that time, the program the centerhas also helped to transform the the Nepal SBI Bank. "Seventy-five per- was started with one secretary in Ohankuta beautiful city ofOharan into a more beau- cent of the office staff consist ofNepalis," with three lower division clerks and one tiful one," says One of the city's newspa- says Major Challerji. peon. The first distribution camp was set pers. The Oharan center has proved to be up in 1959, which distributed pensions to The Oharan centerhasorganized vari- lifeline not only toex-servicemen in east- 1,230 former servicemen. ous other activities in Okhaldhunga. ern Nepal but also their wider commu- Following the successofthis project, Bhojpur, Terathum,llam.Oiktel, Khadbari nity. and because of the positive response of and other rural areas. • SPOTLIGHT/MAY 4,2001 13 NATIONAL organizations or soiilarily, as the need be, 10 SECURITY AND DEVELOPMENT PROGRAM disarm the rebels. The government will implement the program in 22 districts in the first phase by allocaling Rs 150 million. Will the Medication Work? Four high level sub-committees including political, publicity. development coordina tion and security, have been constituted to The government is all set to address the problem of insurgency with implement the program. Chief of the army a two-pronged approach. staff. Prajwolla Shumsher ,18 Rana, will head the security sub-committee. The pro gram has not exduded the possibility of By BHAGIRATH VOGI The third largest party in the parlia starting negotiations and bringing the rebels ment, Raslriya Prajalanlra Party (RPP). too within the sphere of the country's constitu declared that the ISDP alone is not adequate tion. fter neglecting the remote northern to resolve the MaoiSt conflict. "There is a Though the mobilization of army to Ahills and plightsofpeople living there need of a greater national consen sus among contain internal insurgency has been final for the last several decades, Nepalese plan all the political parties and rorces in the ized. its implications arc still subject to. ners and politicians are finally focusing on country IQ gel out of the on-going political bate and discussion. "When police fails lv their own backyard. That. too. after a violent impasse," the party said. control an insurgency. rhen the army is mo conflict continued to undermine the ratio As thegovemment is nexing its muscles bilized to suppress the rebellion. But in such nale and authority of the. state for full five years. T he government is finally implement ing what it call!> ' Integrated (Internal) ]Secu nty and Development Program (lSDP)" in the areas most affected by the Maoist in sur g.ency. The IS-page document drafted by the Nal10nal Planning Commission (N PC) to gether with other government agencies aims to carry out development works in those areas under the security cover to be provided by the para-military and military per!>onnel. "The government aims to push security and dcvelopment togcther," said Deputy Pnme Minister and Home Minister Ram Chandra Poudel. "The ISDP basically aJnlS at oringlllg into the mainstream of develop ment people living in the nooks and corners orthe country, Wc need cooperation from all partic!> IQ provide immcdiate relief IQ the people." The opposition partics are. however. skeptical. When a political sub-committee hcaded by Poudel invited 0pposili?n parties A village: A tale of suffering 10 hold discussions regarding the proposed program, left parties including the main op to garner political support to its ambitious a case the hands of the army should not tied poslIion Unified Marxist-Leninist (UML) program, the ISDP has identified key areas and a state of emergency need::- 10 be de hoycotted the ml!cling. They blamed that the to focus on for the development of the dis clared in the region." said Satchit Shulllsher program wa~ only a ploy to mobilize army tricts that remain cut off from the national 1 B Rana. former chief of army staff at the per!>onnellO crush the Maoist rebellion. development endeavors. Royal Nepalese Army. "It would be much The UML. on Its part. termed the pro· Perhaps. the most important aspect of easier for the army to accomplish its job if gram as ambiguous. dircclionless and dubio the proposed program would be rhe mobili rhe parliament amI police support its ac ou~. "The program is superficial and reac zation of army personnel as part of the pro tions." tionary anJ will provide more opportunities gram and coordination among the security According to Rana. III epal, the army for the (ruling) Nepali Congress and the agencies. Afler months' long uncertainly. is much more powerful than the (Maoist) government for corruption," the parry ob King Birendra approved the ISDP submitted rebels. So, if there is any assault against il, it served. "There is no guarantee that (this to him by the government early last month will retaliate. In such a case, the number of autocratic) government would not use the and then. the army started preparing its strat casualties could be much higher. In such a army to dc~troy democracy and suppress the egies to accomplish its job. case, if the armed conflict gets on protracted opposition The army will work. jointly with other as professed by the rebels. the counlry could 14 SPOTLIGHT/MAY 4. 2001 NATIONAL fall into the tfap of a ci vi I war, warn experts. mobilizes the army, under whatever banner. they can even take on the army, if the need be. Others, however, think that the govern it will certainly escalate the confrontation. "The (proposition of the) army mobilization ment and rebels would be able to find a The Maoists [00 would be compelled to is a proof thal the 'people' s war' has reached comm.on ground to end the current spate of upgrade their weaponry and a civil war like new heights. It will also end the political violence amid growing domestic and inter situation could not be avoided," said Padma space for the parliament in this country," said national pressure for the peace talks. Of Ratna Tuladhar, a noted rights activist, who Prachanda, in an interview. course. both the parties want 10 be in a has been trying to broker peace between the Whatever be the rhetoric. try to take on position of strength as and when the talks are government and rebels. th e army in a conventional battle would be a held. Tuladhar insists that rhe government su icidal move for the rebels, say strategic The Maoist rebels mounted devastating should not mobilize the security force until analysts. They could. however. try to engage attacks at isolated poUce posts in femme and unless there is a possibility of a peaceful the army in a guerilla battle and at the same districts, including at Rukumkol and resolution (of the conflict). " In the areas time. enhance pressure against the govern Naumule. early last month killing nearly 70 where there is no presence of the govern ment to pull back its security fo rces. Given policemen. Afterattacks. Maoist leaders said ment, the mobilization of military and para the political stalemate and the stiff opposi theiT party had launched the attacks "to force military forces will certainly invite encoun tion that the Koirala government faces at the the government to meet their demands for [er and the number of casuahies could also moment their job may be much easier than ming an interim government, and con go up," said Tuladhar. what they have said. ening an all-party meeting to amend the Officials, however. claim that they are The determined Prime Minister, en country's constitution." aware a1:<:-ut such a si lU ati on. "The develop thused with strong SUppOfl from the interna The government. on its part, managed ment works would start from limited areas tional community, in a nationwide broad to re-promulgate the ordinance to set up the and will not cover the enti redislrict, to begin cast on April 16 asked the rebels 10 give up Armed Police Force and Regional Adminis with." said Ligal. the NPC vice chairman. arms and join the political mainstream. BUI trators that mainly aim at containing the "The programs would be launched in the there are no indications so far that the rebels Maoist insurgency. The government could areas that arc relatively safe from security would oblige their enemy number one. The not pass these ordinance in the 19th session point of view." road to peace in the Nepali hills is full of due to prolonged boycoH of the parliamen The rebels. on their pan, have not made thorns. And. the implementation of the ISDP tary proceedings by the opposition. Simi their response to the government's ambitious is even more difficult in the success Of fail larly. after some hitches Premier Koirala program as yet. They have, however. tried [0 lire of which hangs the future of the Koirala managed to convince His Majesty in mobi boost the morale of their cadres saying that government. • lizing the army as part of the ISDP. Officials say they have al most com pleted the preparation of the ISDP and are CONVENTION AGAINST RACISM going to implement it immediately. "We will be launching developmelllof infrastruc ture programs such as roads, electrification, Fight For Equality micro-hydro. bridges etc. and implement ....ricultural packages as per the local needs." Asian NGOs raise the issue of cast,e as a major form of , cc-Chairman of NPC Prilhvi Raj Ligal. who chairs the Integrated Developmem Pro discrimination in society gram Management and Coordination sub committce told SPOTLIGHT Tuesday. "We Nearly 200 activists from non-governmental organizations in the Asia Pacific region will also launch drinking water and irriga working to eliminate various forms of discrimination have united to bring discrimination based tion projects by mobilizing local participa 011 caste as the main issue when the. world's governments meet forthe World Conference Against ti on Racism, Racial Discrimination. Xenophobia and Related Intolerance (WCAR). due 10 lake According to Ligal. the lSDP also in place in Durban. South Africa. from 31 August to 7 September. At the end of the three-day (April cludes skill development programs to young 27-29) Asia Pacific NGO Networking Meeting in preparation for the WeAR in Nepal Sunday. men and women in these districts and sup representatives from the Burako caste of Japan and the daJits of India and Nepal shared their porting them for self-employmen t. Simi experiences in trying to gain recognition for the issue of caste in international arenas. While larly. the government would also impart equally important issues such as indigenous peoples. migration. trafticking. religious and them some skills that could become handy national minorities, etc. have been recognized by governments and given international space and for those interested in seeking overseas em attention. caste has always been hidden. "In Indian SOCiety, there are no human rights for the ployment. "The mainjob of the government, 'umouchables'," said Professor Thorat of India. Lower castes are considered lesser human as pan of the ISDP, is to ensure security. beings "but the government does not recognize this problem." added Thorat. According to assign necessary manpower and make the Burako representative Khazuhiro Kawamoto, Japan also has its own problem of caste disc rim i service delivery effective." said Ligal. nation that affects about 3 million Burako people who suffer marginalization, maltreatment and Human rights activist, however, point unequal economic opportunities, among many others. Seeing the dalit situation as neeeling the toward possibility of escalation of violence most immediate help from activists and international community, anthropologist Krishna B. as the governmenl deploys security person Bhatt8chan said if human right activists do not see the dalit as a very serious issue of humanity. nel in the area that are virtually under the there is no authority for them to talk aboU( racism. A number of human rights organizations and dalit activists from Nepal took part i~ the meeting. control of the rebels. " If the government SPOTLIGHT/MAY 4, 2001 15 COVER STORY EXPORT SLOWDOWN Product Of 1 Fading Markets, )' Policy Flaws Despite impressive figures in the first half of this fiscal year, exports in the second half are expected to fall thanks to continuing instability and a shocking decline in the sale of pashmina and carpets abroad. The countervailing duty imposed on the maximum retail price on goods exported from Nepal by the Indian govern ment and the dilly-dallying in the payment of duty drawback t exporters by the Nepalese government are set to enfeeble a sector already plagued by limited markets and products By SANJAYA DHAKAL ports, growth of pul ses (lentils), expan fiscal year. Imports during the same pe sion in the output of processed leathers riod had risen only by 5.1 percent, help and moderate performance by the gar ing bridge the wide gap in the balance of "imesaheadaredifficult." This ment industry had contributed to a rise in trade. is what Ki shore Khanal, a the volume of goods Nepal sold abroad. During fiscal year 199912000, )1 prominent industrialist and The growth was primarily fueled by Nepal's trade deficit stood at around Rs chairman of the Export Promo pashmina, which saw Rs 5 billion worth 64 billion, with imports worth Rs 114 Ttion Committee at the Federation of of exports in the first six months of the billion and exports worth Rs 50 billion. Nepalese Chambers of Commerce and current fiscal year, compared to the Rs 6 The vast gap between exports and Industry (FNCCI), has to say about the billion recorded during the whole of the imports has been adversely affecting the prospects of Nepal 's export industry. previous year. country's economic health. As Nepal Hi s assessment stands in stark con Compared to the same period of the needs foreign currency to purchase de trast to the signs that were so rosy at the previous year, exports grew by 11.5 per velopment goods, construction materi beginning of the current fiscal year. centlo reach around Rs 16,910 million in als, consumer products and raw materi The sudden boom in pashmina ex- the first seven months of the current als, it has to increase its exports. Apart 16 SPOTLIGHT/MAY 4, 2001 COVER STORY cal uncertainty has hit virtually all sec tors of economy. That apart, some very specific prob lems such as the drastic fall in the sale of pashmina and carpets, the Indian government's imposition of Countervailing Dury (CV D) on the Maxi mum Retail Price (MRP) of Nepalese goods and the dilly-dallying by the Nepalese government in the payment of duty drawback to the exporting indus tries are set to halt. if not reverse, the growth curve. Just as suddenly as it rose, pashmina exports are tumbling because of various factors. including the unethical practice by some Nepalese manufacturers who exported sub-standard products and the gradual erosion in demand in the Euro pean markets. In a bid to earn quick money. a handful of exporters tried to kill the goose that laid golden eggs. "As there was no regulation of the from IQurism, selling products abroad is port Promotion Board (EPB) at the Min quality of pashmina, not only Nepalese the only way in which Nepal can earn istry of Industry. Commerce and Sup entrepreneurs but also some spurious foreign currency. plies undenhe chairmanship of the min businessmen from the neighboring coun The major export commodities of ister to look after export-related issues. try exploited the name of Nepal" says the country are ready made garments, "The EPB works toward encourag Khanal. woollen carpets. pashmina. handicrafts, ing the private sector in exporting their While the government failed to check tea-products, herbal products, lentils. and goods, helping them identify and harness such adverse trends, the bigger blame agro-products. among other things. the overseas market, supporting their par lies squarely with the private sector, Among the major items the country im ticipation at the international trade fairs which went lO the extent of exporting ports are mach i nery and parts, fertililers, and in identifying the production of items anything in the name of pashmina. w materials and petroleum products. that can be exported," said Badri Baha "This is thc trouble with us. The • India is Nepal's No. I trade partner, dur Karki, chief officer at the EPB. "The tendency of the private sector here has in terms of both exports and imports. board makes its programs in line with the been to go for the fast buck instead of According to figures for fiscal year 1999/ objectives envisaged by the National developing the industries keeping long 2000,44 percent of Nepal 's exports were Planning Commission (NPC)." The board term gains in view," says Khanal. absorbed by Indian markets, whereas 36 also gives awards 10 LOp exporters every Even entrepreneurs associated with percent of its imports come from that year. the pashmina industry are today bracing country. "In fact, it is the private sector that for a gloomy future. Among the other major trade pan actually takes part in trade," says Naresh Similarly, the carpet sector, whose ners of Nepal are the United States, Ger Chandra Lamichhane, officiating execu growth has been Ouctuating in recent many, United Kingdom, France, China, li ve director of the Trade PromoLion Cen years, has been witnessing a declining Japan, Switzerland. Except with the ter (TPC). "The government's responsi trend. I n the first seven months of the United States and Germany, Nepal has bility is just to create a favorable atmo current fiscal year, carpet exports de trade deficits with most of these coun sphere." The eenter's responsibility is to clined by more than IS percent compared tries . help the private sector by providing train to the same period last year, according to Tocheck this deficit, which is bleed ing and support and to create an infol1l1a TPC officials. ing the economy. the government has lion network. The gannent sector has not been time and again reiterated its priority IQ VVhat VVentVVrong? able to sustain its growth, either. "If there promote G,xport. But there has been more In recent months, the political situa is no drastic change, the garment sector rhetoric than substance in its commit tion in the country has been growing wi ll die," says Udaya Raj Pandey, gen ment. increasingly adverse to trade. Industrial eral secretary of the Garment Associa The government has fonned an Ex- insecurity coupled with growing politi- tion of Nepal (GAN) and managing di- SPOTLIGHT/MAY 4.2001 17 COVER STORY penalizes the industries for existing in Nepal," says Khana!. He predicts that exports to India over the next six months will come down drastically. The commodities that would be most affected include toothpaste, soap, hair oil. biscuits and noodles. "The countervailing duty on maxi mum retail price is affecLing the exports of cosmetics, hair oil and shampoo from our company. Ayurvedic/herbaI prod ucts are not much affected. We w ill lose (0 the tune of ten million rupees a year due to this provision." said T.K. Gupta, managing director of Dabur Nepal, a subsidiary ofDaburlndia. The compar exported goods worth Rs 1.8 billion las, year. Its projected export this year is about Rs 2.3 billion. "If the Indian government is protest ing against spurious industries, their re cent move is going to discourage all A carpet weaver: Struck by limited market industries in Nepal. including genuine rector of Serene Garment Industries. win-win situation for both countries. ones," says Khanal. These are issues that He points to the lack of government Of late, there has been accusations have to be addressed politically. rules that has led to the mushrooming of from certain quarters that some elements Another controversial factor ham industries and the subsequent compro are taking advantage of the treaty, which pering export-oriented industries is non mise on quality as the immediate prob provides industries based in Nepal simi payment of duty drawback by the go v- lem. "Besides, we are also witnessing a lar duty facilities FOREtGN. TRADE COMPOStTION OF NEPAL recession in the United States, which is enjoyed by those F.Y 1997198 TO 1999/2000 the single largest market for Nepalese based in India, for Value in '000 Rs rcadymade garments," says Pandey. peuy gains. These F Y 19911199 The garment sector is also worried concerns have led DIrection F Y 19971911 % in % in F Y 1999/00' 2054155 Total 2055156 Tolal 2056JS1 T""OJal about the impending cancellation of quota the Indian govern ellports ,I provisions, on which it is surviving. Coun ment to take steps to India B,194,400 32. \ 12,530.700 355 22.6\B.7oo tries like the United States are going to curtail certain facili .11 ., revoke the quota system after 2004 in ties. Overseas 17,9B7,216 .56 22.IBO.671 .29 27 ,B27 ,917 5<6 accordance with the provisions of the The recent In TiDel 620,62B 2J 557,701 " 512 As all three major Nepalese export posed to impose Imports items - carpet, garment and pashrnina - countervailing duty India 27,331 ,000 306 32.119.700 34' 40,928,100 356 are passing through a difficult phase, on the maximum re 60,461 ,9 49 prospects for the days ahead appear in tail price of goods Overseas '60 58.262,294 63.3 69,B3B ,040 606 c reasingly dismal. All three items exported from Tibel 1,101 ,B22 " 1.621,396 16 4,IB,9.009 3.' emerged as major expons almost out of Nepa!. "This provi:;. Total 88894,771 '000 92,003,390 1000 114.955149 100,0 the bluc. Neither the government nor the sion is again~t the Trade DefiCit private sector worked out any plan to spirit of the treaty, 10011 lB,53~,600 19,589,000 IB ,309,400 make them sustainable. which provides for a 42,474 ,733 36,OBt ,423 42,010 123 On the Indian front, too, there are level playing field. Overseas some tricky issues that could adversely This has resulted in Tibet Treaty of 1996 was signed, imports from coming higher and NOII! ;- Trade witlllndia for Ihe F Y 19971ge and 1998/99 are revised • Provisionel andexp0rlto India were increasing. Many the cost factor git Trade dall Wllh Tibel, AulDnDmus Region of China havl,! been recorded Ihlough Tatopani Customs on Indian industries came to Nepal to take ting non-competi SOurce:- Trade PromolJOll Centre & Nepal Ra5lra Bank advantage of what was then hailed as a tive for us. In fact. it 18 SPOTLIGHT/MAY 4.2001 COVER STORY COMPARISON OF OVERSEAS EXPORTS OF out of the blue. Nobody bad SOME MAJOR COMMODITIES IN THE prepared a plan to la unch F.Y.1998/99 AND 1999/2000 ( .. pc) these products and nobody is making any effort to estab Commodities lish them as sustainable ex POrt items. "Limited products and limited markets arc the big gest c hall enge before t he ex -14.5 pOrl-oriented industries," 3.5 3.5 1 4 says Lamichhane. Any small 2.562 340 28,509 -86.2 upheaval in one market is 2.365 ·91.5 3.5 enough to bring down the -15.8 whole sector. While garments 431 .1 are heavily dependent on US Wood"n & Bamboo Goods quotas, carpets rely on Ger !I~~~~;~,~~~~p:~al~pe~r~:&:rpaper Products many and pashmina depend on a few European markets. A few years ago, the is sue of child labar severely Total 22,180,871 affected the carpet industry in Nepal. Concerns aboul qualilY arc adversely affect- ernment. As per itscommilrnent, the gov The pri vate sec ernment has to pay back (within a speci tor is getting impa fied time) the duty imposed on raw mate lient over the delay. rials once the exporters prove that the "The government material has been used in manufacturing owes around Rs 220 goods that were exported. Roughly, the million to our com government needs to raise Rs 700 mil pany in duty draw lion to Rs 800 million to reimburse the back. If this situa industries in the form of dUly drawback. tion persists, exports "[t is very unfortunate that the gov units wilJ have to -nmcnt is not taking this issue seriously. close down," says e private sector is crying at the lOp of Gupta. its voice, but the government thinks that Export-oriented it can go on delaying payment," says industries together Khanal. "They should have set aside the with all other units required fund beforehand. Even if they of the economy are d on' t have the necessary cash right now, also facing hard they could release receivables/bonds, ships because of the which the companies could encash from deteriorating law the commercial banks," he says. and-order situation Finance Minister Or. Ram Sharan across the country. Mahat has assured the business commu "Apprehensions are nity that the government would expedite really high," says the payment of duty drawback. "I will Khanal. give more attention la resat ving the prob Unsustainable lem related to dULY drawback system. I Exports have already asked the concerned offi Most experts cials to attend to this problem. I hope we say Nepal's exports will be able to tind some solution to this pick up and die on problem in the near fUlure," Or. Mahat their own. Be it car told SPOTLIGHT (April 6-12) in an in L-~ pets, garmelnts or Export products: terview. pas mma, a I came ______Concerned by the decline h ~ ______ SPOTLIGHT/MA Y 4.2001 19 COVER STORY ing the pashmina business. The garment western region in the total import from toms and duty waivers are given to the sector fears a similar backlash once the overseas stands at 0.02 percent. The share industries located in these zones. There quota provisions are phased out. of mid-western, western and eastern re will be equipment to check the quality of Entrepreneurs emphasize that trade, gions in the import sector is 0.37, 5.05 the goods. product and market diversification are and 13.49 percent. The central region Many feel the time has come for key to sustainable ex pons and want a imports 58.54 percent and the rest- 22.53 Nepal to focus on exporting non-conven collaborative effort to shore up the sec percent - is absorbed by the import of tional goods like herbal products, handi lor. "Let us sit down and draw a plan to petroleum products. crafts and tea. The countl)' enjoys com promote exports. Representatives from What Now? parative advantages in producing these the government, FNCCI and the NPC To make exports sustainable, ex- goods. could forge a 10- year, 15- year program that can be ad PERCENTAGE SHARE OF MAJOR COMMODITIES justed periodically," says IN THE OVERSEAS EXPORTS OF NEPAL Khanal. With the WTO provisions F.Y. 1999/2000 (,~C) loomi ng large, Nepal's export sector has to do a lot of things to survive in the days ahead. S.N Commodities Quantity Value Share "The very first thing we should Unit 1 in '000 Rs. in % do is to develop a strong pro 1 Woolen Carpet 10,404,709 37.4 duction base and backward Sq.m 2,623,784 2 Readymade Garments ·Pcs. 11,082,558 39.8 linkages," says Lamichhane, 46,836,446 193,376 0.7 The private sector is 3 Hides and Goatskin Sq,II. 4,539,806 wary about the legal status of 4 Tea M,T 81 .6 25,722 0 .1 labor issues and bilateraltrea 5 p,ulses(Lentils) M,T 2,365 77,675 0 .3 ties and agreements and their 6 Handicrafts 309,267 1 .1 likely impact in the post 7 SilvetWare & Jewellery 120,318 0.4 WTO days. "We at the Gar 8 Woolen & Pashmina Goods 3,877,965 13.9 ment Association have as 9 Towel ' 415,851 1.5 signed an expert to study all 10 Wooden & Bamboo Goods 24,410 0.1 aspects of the WTO and its 11 Nepalese Paper & Paper Products 203,734 0.7 impact on our industries. The 12 Micro Transformer 55,692 0.2 expen wi 11 prepare a report 13 Miscellaneous 1,036,640 3.8 within three months. We will I. submit the report to the gov Total 27,827,917 100. ernment for necessary ac tion," says Pandey. Regional Disparities perts have proposed the drawing up of "Nepal can produce best-quality Trade. in general, is not spread evenly stringent rules and regulations for qual products like organic tea, aromatic oils across the country. Like the limited prod ity control, long-term planning and prod like menthol and peppermint, among oth uct line and market, limited areas of the uct and market diversification. ers. There is big money to be made in this country are actively engaged in export The concept of Export Processing sector. Even infonnation technology can and import. Zones (EPZs) has also been floated. "The give good results. But we don 't have Apart from planning to promote ex government has allocated Rs 60 million proper policy backing," says Khanal. ports, the government could also do well in the current budget for developing As Nepal's export sector stands at a lo address regional disparities. The share EPZs," says Karki of the Export Promo critical juncture. concened effort from orthe far-western development region in tion Board. both the government as well as the pri Nepal's total overseas exports in 19991 The board has been entrusted with the vate sector is required to develop a sus 2000 was nil. Likewise, the share of mid task of developing the EPZs. It is looking tainable pattern. Whjle the private sector western, western and eastern regions for suitable land near the Inland Container has to forget about petty initial gains in stood at 0.02, 0.03 and 17.20 percent Depots in Biratnagar, Bhairahawa and Bir favor of long-term returns and concen re spectively. The share of the central gunj to develop the zones. trate on quality, the government could region was a whopping 82.75 percent. EPZs are places where 100 percent step in with the necessary policy support. The situation is not very different in export-oriented industries are allowed to That would be an effective prescription the case of imports. The share of far- operate. Many facilities inciudjng cus- for a healthy nalional economy. • 20 SPOTLIGHTIMAY 4, 2001 NATIONAL OPPOSITION POLITICS on Koirala, opposition leaders were even said to have manipulated theCommission of Investigation of Abuse of Authority Losing Steam which is probing the Lauda Air deal. The new statement by two of the accused, former RNAC executive chairman Hari The first phase of the communist agitation has failed to Bhakta Shrestha and former board mem .mohj)jze the common people against Prime Minister Koirala ber Tirtha Lal Shrestha, is said to ha ve been inspired by the prime minister' S op ponents. By KESHAB POUOEL agitation has been able la "expose" Prime Soon after the statement o f the Minister Koirala and theNepali Congress, Shrestha duo, CPN-UML le ader Madhav communist leaders and Congress rebels Kumar Nepal deman ded th e resignation 'thOugh oppos iti on communist par have no opti on to finding a solution to the ties, Rastri ya Prajatantra Party and of Prime Minister Koirala. "The new sLate current political deadlock in the presence ment s prove the in vol ve ment of Prime ~ tions within the govemingNepaJi Con of Koirala. Minister Koi rala in the Lauda Air deal," Agress have made every effort to oust Prime "lf the recen l media trend is any indi declared Nepal at ameetin g of party wo rk Minister Girija Prasad Koirala. he seems cation , it seems that the wind is blowing ers in Patan . to be gaining more co nfidence and against thecommuni sLalliance, including strength. However. the controversy over the the CPN-UML." said a political analyst. Lauda Air deal appears to have bruised Even after a violent agitation and As a las l-di tcheffon to exert pressure the opposition as well. • maneuvering by political opponents witrun the party and outs ide in connec ti on with theLaudaAirdeal. the 78-year-old Koirala has not 10sI his will to govern. In the last EDUCATION legofpolitical career, Koiralahardly seems to be ready to concede to hi s opponent s. As the agitation launched by an alli Uncertain Future ance of six com munist groupi ngs led by the CPN-UML has failed to draw the Although the call for a weeklong strike at private schools by the Maoist common people on the SLrccts, the main opposition party seems to have hurt itself. affiliated student union creates panic, there are some positive signs Despite their claim that the street Although the strike called by the All Nepal Free Students Union (Revolutionary), the student 'w ing of the Nepal Communist Party (Maoists), has rocked the entire private ed ucation system, it also has had certain positive contributions. Uthe union's demands are met. students at private schools may gel the oppOrt u nity to read more about Nepal and its heritage. Barring a few regular books published by Janak EducatlOnal Material Center, mos t ofthe material prescri bed in the pri vate schools are based on the Jndian education system. "As Nepal does not have enough teachers to teach material imported from [ndia, we need to hire foreig n teachers for high salaries. When you pay high sa laries, how can you offer cheap education?" asked a private school Owner on condition of anonymity. After the st ri ke call ed by the union last year, many schools have already started to teach curriculum based on Nepal. "If pri vate school were closed down, Nepal may get more economic benelits. In the private schools, more than 50 percent of the teachers come from foreign coun tri es, including India, and most of the books are imported from India," said SupravatAdhikary, president of Nepal Guardian Associa tion. "The private schools are run like a business crganization in Nepal which increase monthly fees on their own." Although the uni on has reduced the strike period from tw o weeks to one, private PM Koirala : Resilient politician schools operators and parents have not been able to heave a sigh of reli ef. SPOTLIGHT/MAY 4. 200 1 21 INTERVIEW 'China respects Nepal's sovereignty, independence' - ZENG XUYONG Chillese Ambassador to Nepal ZENG XUYONG, Tourism entrepreneurs in Nepal are very who has been serving in this CDllntry for more than much encouraged by China's recent statement three years, spoke to KESHAB POUDEL all establishing Nepal as a tourist destination for various aspects a/bilateral ties all the eye a/the Chinese tourists_ How do you see the potential official visit to Nepal by Chinese Premier Zhu of Chinese tourists coming to Nepal? Rongji. Excerpts from the half-hour interview: A large number of Chinese tourists visit dif ferent Southeast Asian countries. There is quite - China has always been a good friend of good possibility to attract Chinese tourists Nepal and has stood by it in times of need. The Nepal. It will depend upon how Nepalese entre political instability in Nepal at present, abetted preneurs will market Nepal in China and what by some interested external forces, is spelling Nepal could offer to the Chinese tourists. danger to Nepal. How does China view tbe What would he main focus of the Chinese situation? Prime Minister's visit to Nepal and his talks China always wants political stability in Nepal with His Majesty the King, and the Prime and stands for an economically prosperous Nepal. Minister? China believes that stability is necessary for the The Chinese Premier will hold discussions on . economic development of the region. We respect many issues with Nepalese leaders, including bi "-DUring the Nepal's sovereignty and independence. China will lateral economic cooperation,trade, development, visit the two always be a good friend to Nepal. among others. During the visit the two sides will How does China look at the South Asian sign agreements on the economic and technical sides will security problem? cooperation, the construction of the another high szgn agree After the nuclear detonation in 1998, the ways Syaphrubesi-Rasuwa road, setting up a hos ments on the security situation in SOllth Asian region has wors pital for civil servants of Nepal. and establishing ened. There is a possibility of an escalation of a polytechnic institute at Banepa. TheSyaprubesi economic and tensions in the region. China is very much con Rasuwa road is going to be an important project technical cerned about security in South Asia. As a develop for Nepal in terms of increasing bilateral tr" ing country, China needs peace all over the world, relations. cooperation, particularly in neighboring countries. We favor a Is there any possibility of opening more the construc stable South Asia and the countries of the region trading points between the two countries? tion of the must realize the importance of peace. Yes, there is a possibility to do so. As a matter How do you foresee the future of SAARC of additional trading points two in each side are another high in the present context? being opened and agreement to that effect may ways SAARC can bring all the South Asian coun also be signed. tries together. It is important for the region. Be How do you describe the present state of Syaphrubesi cause of some political or other problems between relations between Nepal and China? Rasuwa road, some member states, the SAARC summit could Since China-Nepal diplomatic ties were es setting up a not take place in two years ago. I think the success tablished in 1955, thanks to the great importance ful implementation of SAARC vision will be in attached by state leaders of the two countries and hospital for the interest of the region. the joint effons of the two peoples, China-Nepal civil servants What is the potential for developing Nepal friendly relations and cooperation have been de of Nepal, and China trade further? veloping in a sustained, sound and stable way for The volume of trade between Nepal and almost half a century. There are no questions left establishing a China has increased several folds over the past over from history or disputes existing presently polytechnic few years. It has increased from a mere $70 between China and Nepal. Although great changes million a few years ago to $200 million today. have taken place in international situation and in institute at There is tremendous possibility to expand trade our two countries through the past decades, China Banepa." between two countries. Nepal friendly relationship remains the same. We 22 SPOTLIGHTIMAY 4, 2001 INTERVIEW are satisfied with the development of China-Nepal relations in recent years. To continue consolidating and devel oping the good-neighborly friendship and cooperation with Nepal is a set policy of the Chinese Government. China will consistently be Nepal's good friend and good neighbor. We wish to promote, along with the Nepalese Gov ernment and people, the further devel opment of China-Nepal friendly rela tions and cooperation in the new cen tury. Wbat in your opinion are major obstacles in further devel the bilateral ties? What sn'OUl.Q be done to remove these ob stacles? I don't think there exist major problems or obstacles in further de vel aping bilateral ties between China and Nepal. Both the two Governments and two peoples hope that the bilateral relations could be further promoted, because it conforms to the fundamen tal IOterests of the two peoples and is conducive to peace and stability in the region. But I agree that the bilateral relations. especially the economic and trade relations still have potential and space of funher development. We can expand Agreement will be of great significance to pro exchanges and cooperation in many fields so as to moting bilateral cooperation. promote the comprehensive development of our Does China have security concerns in ood-neighborly partnership. Recently the two Nepal? What are these concerns? Last year, a ntries have signed the MOU on tourism coop senior Chinese leader, Li Peng, was reported as eration, which convinces us that our cooperation saying (during the visit of former Nepalese in tourism is to be further expanded and strength Prime Minister Sher Bahadur Deuba) that ened in the coming years. China does attach importance to relations with Bilateral political ties are good and free of Nepal not only as a neigbbor but for security as problems. But economic ties have not picked well. Does that mean that China's security up yet. Trade and investment are very low. concerns in Nepal have increased? ~ In recent Why? For the purpose of realizing modernization. In recent years, China-Nepal bilateral trade China needs a peaceful international environ years, China has increased rapidly, and investment and joint ment, especially a favorable surrounding environ Nepal bilat ventures have developed steadily. Our economic ment. This is the reason for OUI attaching impor I cooperation and trade have maintained a good tance to maintaining and developing friendly rela eral trade has momentum of development. But in general the tions with neighboring countries. As neighbors increased volumes of trade and investment are still very low with 1400 km's common border, China and Nepal rapidly, and and potential is yet to be tapped. We wish to should maintain good-neighborly friendship and promote the mutual-beneficial cooperation with respect each other's sovereignty, territorial integ investment Nepal in economic and trade fields, including rity and security concern. This is very important andjoint hydropower resources and agriculture technol to both sides. ogy. The concerned departments of the two coun How do you see the rivalry of the regional ventures have tries are discussing to sign the Agreement on powers in South Asia and its implications for developed Avoidance of Double Taxation. The signing the Nepal which shares long borders with China? steadily. \' SPOTLIGHT/MAY 4, 200t 23 INTERVIEW We always advocate that South Asian countries develop friendly relations and coopera tion on the basis of equality and mutual benefit, and solve dis putes peacefully through con sultations. We believe that nuclear arms race in South Asia is unfavorable to peace, stabil· ity and development in the re gion, where Nepal is located. China supports all the efforts favorable to maintaining peace and stability in South Asia. How important do you tbink peace and stability in Nepal is to Cbina? Many of Nepal's friendly countries have expressed concern at the threat to peace and stability in Nepal due to Maoist insur~ gency. Do you share these concerns? on issues of Tibet and Taiwan, which involves As I have said, since China and Nepal are China's sovereignty. close neighbors. the peace and stability in one After a series of exchange of bigh level country is very important to the other. Maoist visits between the two countries in recent problem is an internal issue of Nepal. We noted it months, the Chinese Prime Minister is visiting had affected peace and stability in some districts Nepal next month. What are his agenda? of Nepal. As a friendly neighbor, we neither China and Nepal have kept the tradition of support nor expect violence and riots occur in exchange of high-level visits since the establish '/ Maoist prob- Nepal. We si ncerely hope peace, tranquility and ment of diplomatic ties, which has made signifi stability could be maintained in Nepal. cant contributions to the sustained and smooth lem is an Some countries allege that Nepal is being development of bilateral relations. Soon afler the internal issue used as a base to conduct hostile activities very successful state visit to China by His Majes . against them. Does China also have similar iGng Sirendra, Premier of the State Council oft of Nepal. We ...... complaints? Are you satisfied with Nepal's China His Excellency Zhu Rongji is to pay an noted it had policy and its execution on preventing free official visit to Nepal in the coming May. This is affected Tibet activities? another important visit la Nepal by top Chinese The Dalai Group, supported by some interna leader following Chinese PresidentJiang Zemin 's peace and tional anti-China elements, always conducts po Nepal visit in 1996. Premier Zhu will be the first stability in litical activities aiming at splitting Tibet from Chinese senior leader received by Nepal in the China. They also carried out anti-China activities new century. During the visit, Lhe leaders of the some districts in Nepal, such as ''Tibet Independence" propa two countries will exchange views extensively on of Nepal. As ganda, sabotage and infiltration into Tibel Au further developing bilateral relations, and hold in· a friendly tonomous Region or China. These hostilities are depth discussions on expanding economic and not only against China, but also aimed at under trade ties and promoting exchanges and coopera neighbor, we mining China-Nepal friendship, so it is unfavor tion between Tibet Autonomous Region of Chin a neither sup able to Nepal as well. The Nepalese Government and Nepal, and will sign a few related agreements. recognizes that Tibet is an integral part of China's Of course, the two sides will also exchange views port nor ex territory, and has expli citly and repeatedly ex on international and regional issues of mutual pect violence pressed that nobody will be permitted to conduct interest. It is convinced that the visit will promote and riots activities harmful to China's interests on the soil the further consolidation and development of of Nepal. We highly appreciate lhe consistent China-Nepal good-neighborJy partnership in the occur In "One China" stand of lhe Nepalese Government new century and will be another milestone in the Nepal. " and people, as well as their firm support to China history of bilateral relations. • 24 SPOTLIGHTIMAY 4, 2001 NATIONAL WORLD BOOK DAY MINISTER MAJGAIYA Fellowship Of Words RESIGNS The British Council organizes an event to celebrate the Koirala sacrifices 'most clean' pleasures of reading minister under pressure from By AKSHAY SHARMA Kanak Dixit picked up the rhythm to the corrupt coterie readoullhe "Atma-Britanta ofB.P. Koirala". ~ e pleasures of reading are coveted by He recited in Nepali B.P. Koirala's recol By A CORRESPONDENT .I. all. A dismal or good picture painted lection of how he was approached on Janu by words cannot be easily swept out of ary 28, 1948 by Basanta Shamsher Jang Instead of co-ha biting with the newly '$ imagination. As onc obsessed reader Bahadur Rana for help in a plot to lob hand appointed secretary, Minister for Water • s it in a simpler fonn, "A book is my best grenades imo Singh Durbar where the Ranas Resources Baldev Sharma Majgaiya companion." were scheduled La gather for a meeting. chose to quit the ministerial post - a The Briti sh Council organized a read On that day, Koirala had been at Ma rare example in Nepalese politics. In no ingevem to mark World Book Day on April hatma Gandhi's place from lOin the morn unclear tenns, Majgaiya - who repre 29. It was centered on the pleasures of ing to 4 in the afternoon. The first thing sents Dang-2 constitu ency, told Prime reading or being read to of works of others. Gandhi asked Koirala was about hi s health. Minister GP Koirala that he would not The readers were to share according to their He remembers sitting in a rai lway station in work with Lokman Singh Karki, who choices. adrizzling rain two days later with grenades was recently promoted to his ministry, GrctaRana'stwo . -- - - - perspectives on read given his 'tainted past record.' One oflhe ing were the voice and ADVERTISEMENT . clean faces' in the Koirala cabinet, the celebrity. She read Majgaiya was said to be discontent with aloud, "If you can't ·TARIFF undue pressure from some members of read you don' t know Koirala's kitchen cabinet. about contracep He saw Karki 's appointment as the ti ves:' It was an anec last straw on the camel's back, sources dote from a true story SPOTLIGHT close to him said. Karki was implicated and it ended with the THE NATlONALNEWSMACAZINE in a gold smuggling case while he was at lines, "So get caught _ the Finance Ministry four years back, ing ." Color Black & White bUl was given a clean chit by the court Dr Banira later. He joined civi l service as under chose the flower as Front Cover ln ~idl' R, I h.ODO()() secretary 16 years back as per a direct her oratory. She read: Back C"vcr R,. 20.000.00 royal order. "We only smell the Back Cover Inside Rs. 16.000.00 The resignation by Majgaiya, who fragrance of the f1ow has spent 28 years in close association ersbut wepluckthem. Any Page Inside with Koirala, may not immediately dis But the bees know turb the power balance within the ruling how to treat them Full Page R, 12.O{XUX) right."· 8.000.00 party but, analysts say, it could expose Half Page R, ".000 00 ) .000 00 Ambica Shrestha the 'corrupt coterie' that is said to have Quarter Page Rs 4.00000 said Jane AUSlen was J.()OO .OO got the premier under its total grip.• Speciall'ull-ouI the best writer she had Min~mum Fl)Ur -pag\! encouf.1tered. adding: h ~5.000 . 00 30.000.00 'Td like to read her in his hands as the rad io an nounced that works again and Gandhi had been assassinated. Koirala felt again. She wrote For details, contact: the whole world had collapsed. about the condition of Tulsi Diwas went on to recite Laxmi the women in those SPOTLIGHT Prasad Devkota's "Lunatic". Readings by days." She chose THE NATIONAL NEWSMAGAZINE Ashesh Malla, Barbara Adams, Man jushree Chapter 55 of Thapa, and Kunda Dixit followed. Later, a Austen's 'Emma" to GPO Box : 7256, Baluwatar discussion to commemorate World Book read out aloud. Ph : 977 - I) 423127. Kathmandu Day was moderated by Greta Ran.. • SPOTLIGHT/MAY 4, 2001 25 REVIEW tion of men and women in the democratic BOOK process. They conclude that women's panicipa tion in the political process is negligible Gender And Democracy compared to men's. "Women's lives have been dramatically changed in recent years. A compendium of candid discussions on a com There is tremendous improvement in their conditions, as more and more women are plex issue getting education, entering the labor market and have access to health care facilities. By KESHAB POUDEL discussions take place, the same set of faces However, gender inequality still persists," are seen making Lhe presemations. It seems write Pokharel and Mishra. allowing the restoration of mUltiparty thal only a select group of intellectuals has Indira Shallna explains the history of F democracy, many new jargons have acquired enough expertise on the matter. women and their contributi ons in the con appeared in social and intellectual discus In an effort to generate more infonned texl of development in Nepal. Sharrna ho"!.s sions at various levels. From women's em debate on gender issues, the Central Depart the views thm Nepal has been able to m' powennent to social justice, from racial ment of Home Science-Women's Studies advances in gender scnsitization. discrimination {Q gender issues and from Program ofPadma Kanya Multiple Campus Advocate Sapana Malla Pradhan dis good governance to corruption. Nepalese organized a talk program with support from cusses the issue of women's inheritance intellectuals have debated all aspects of the the Friedrich Ebert Stiftung. This book. an rights. She explains the legal and other lapses issues involved. What changes have these outcome of the seminar, includes articles in dividing equal property among men and disclIssions brought to society? That re presented by various scholars on the legal, women. Kapil Sluestha deals with the hu mains to be seen. social , cultural, economic and democralic man and political rightsof women. Or. Meena Gender perspective is one of the hOlly perspectives of gender issues. Acharyas article. "Gender Equality and debated issues of Nepalese society today. "When we talk about gender, weshould Democracy: TheEconornic Aspect", analy But only a rew people understand what the first demystify a popular misconception that ses the constitutional rights of women and discussions are all about. This may be one of it is about women only and that it has nothing their participation in the area of gender. the reasons why whenever gender-related to do with men. As gender is socially con Gender issues are too complex and structed, it is indeed equally important for varied to beencapsulated in a single volume. both women and men," said Laxmi Keshari Nevertheless, this book should be able to Manandhar, head of the department. encourage a more open and candid debate on Gender perspec Although the articles incorporated in a subject Nepal will find itself discussing for the book deal with all aspects of gender a long whi'll!" • tive is one of the issues, the discussions pro- r::-:::-:-=-::-:-::::-::-:-::-::-.,...,:-:---:~.,...,~~~---...., ceed mostly from a theoreti- MANAKAMANA CABLE CA cal perspective rather than hotly debated is from the experiences and ex periments 10 Nepal. Most of sues of Nepalese the authors are well-known personalities in the seminar society today. But circuit, including Kapil Shrestha, Dr. Meena Acharya, Since the 17th Century. only a few people KrishnaB. Bhaltachan, Durga Manakarnsns temple has Ghimire, Sapana Malla been 'Widely venerated understand what Pradhan and Yubaraj becaue of the belief that ManakatDsns Devi Fulfills Sangraula. Along with old all vvishes. the discussions are hands, authors like Bindu Today. instead of the Pokharel, Mira Mishra, 4 to 5 hour arduous trek" all about. Harinder Thapaliya. Indira Manakatnana is now " Sharrna, Soni Joshi and Yasso accessible in just lO IDinutes by Kanta Bhaltachan (Gauchan) Gender and Democracy ill Nepal Manakatnans Cable Car. have also made impressive Edited by Laxmi Keshari ManalldllOr and contributions. Krislma B. Bhauochan Published by Central Departmenl of Home In their article "Gender Every ~assenger Insured Upto 5ciellce- Women 's 5wdies Program, Padma and Democracy in Nepal", ~ ';:~C;_-c::>";<>-. Kaltyo Multiple Campus Bindu Pokharel and Mira Prices. NOl disclosed, Pages. 230 Mishra discuss the panicipa- Nual. Nagpokhan, Kalhmandu, Hepal. PtIone: 414890, 434825, 43<1648 Fax: 977·1-43<1515. emai!: chl~"''''k . com np. SliIboo 064-600014 26 SPOTUGHTIMAY 4.200] THE BOTTOM LINE By M.S.KHOKNA This is a killiTl/J burden but wy dreams are ros!I (( TRANSITION His Majesty the King, as per A,;vard. for their contribution ment of Japan, on behal the recommendation of the Ju to humour and satire, by the of the people and the govern dicial Council and in accor Bhairab Award Trust. ment of Nepal, by the dance with the Constitution Ministry of Forest and Soil APPOINTED: Additional of the Kingdom of Nepal Gopal Rajbhandari, of Conservation, as a friendly judges Gauri Bahadur 1990. the Rotary Club of gesture. Karki, Ram Prasad Khanal Kathmandu, with the interna and Rajendra Prasad AWARDED: Artistes tional Rotary Service Above PASSED AWAY: Swami Rajbhandari, as the appel Basundhara Bhusal and Self Award. Satchidananda Bishud late court judges at the Krishna Murari Gautam, dhadev, a spi ritual and reli Jumla, Surkhet and Dipayal better known as Chatyang GIFTED: A pair of rhinos, to gious campaigner, at the age Appellate Courts, by Master, with the Bhairab the people and the govern- of83. • SPOTLIGHT/MAY 4,2001 27 EDUCATION management. The personal records of HIGHER EDUCATION PROJECT teachers and academic records of each student registered at the TU are now stored in the computer. "We have devel Novel Concepts oped a rich information system. Anyone can avail of this facility. We can provide The World Bank-funded project establishes an informa virtually every information regarding tion management system at the Tribhuvan University the university now," Bajracharya said. Bajracharya expects that, with the EMIS in place, the university will now By SANJAYA DHAKAL school level and the PCL is in the pro be able to deliver better quality of edu cess of being phased out. cation and proper academic environ "There arc only a dozen countries in ment. "I refuse to buy the claims from s the six-year HIgher Ed. ucation the world that have a I 6-year education some quarters that the TU products are A Project draws to an end. project system. while 146 countries have al inferior in quality. If that was the Caf officials claim they have been success ready adopted a 17-year system. In fact, then why do you find so many of 0 ful in revamping the education structure I I countries have even started a 18-year products gctting acccss to reputable uni and setting up an effectjvc information system by all ocating four years to the versities around the world?" he asked. system. bachelor's level." said Purush Ratna He hopes TU products under the 17- During its tenure, the project intro Bajracharya. coordinator of the project. year education system. who are set to duced sweeping changes in the academk That apart, the project has launched complete their education from this year, structure by bringing up the concept of theEducation Management Information will be much better in terms of quality. three-years' bachelor studies followed System (EM IS) in the TU by introduc The Higher Education Project was by two years' post-graduate curriculum. ing computers in the management of the launched in 1994 with the objective to Earlier, Nepal followed a 16-year university and campuses affiliated to it. revamp the higher education at the uni education system with 10 years of Project officIals claim they have already versity and set in motion changes that school-level and six years of campus computerized the woole examination would usher in better academic environ le ve l studies - compri sing a two-year system and result slaristics. "We are in a ment. "The project brought a new aca Proficiency Certificate Level (PCL). position to put any result on the web demic revolution in the country with two-year bachelor and two-year si te ," said Bajracharya. new courses, new curriculum, trained master's level. Now the government The EMIS has also created a pool of manpower and better physical facili has included classes II and 12 at the necessa ry database for use in academic ties. ,. The World Bank provided loan as sistance worth US$20 million for project. The Nepalese government chipped in with additi onal 20 percent of matching fund. The projcct is going to expire in next two rnonths. According to the Planning Division at the TU, there are 127.355 students at the university campuses in total (in 29561 57)-including 33, 179 femalestudents. There are 6 I campuses under the TU and another 277 campuses are affiliated to the university. Around 56,000 students are studying at the certificate level while 53,000 and 16,000 are studying at the bachelor's and master's levels rcspecti vely. Faculty-wise, the maximum concentration is in the hu manilies, wilh around 52,000 students. The faculties offorestry and law, with 3'Jo and 4,036 students respectively, seem to be attracting fewcr students. • 28 SPOTLIGHT/MA Y 4, 200l PASTIME Nepal's Non-Isolationist Foreign Policy Now In Town BOOK Y.N. Khanall2000 Rs.500.00 The Anthropology of Buddhism and Hinduism Weberian Themes Origins and Migrations: Kinship, Mythology D.N. Gellner/2001 Rs. 1132.00 and Ethnic Identity Among the Mewahang Rai of East Nepal Atmabrittanta : Late LiCe Recollections Martin Gaenszlel2(x)() Rs.650.00 B.P. Koiralal2001 Rs.400.00 Resunga The Mountain of the Horned Sage Gender and Democracy in Nepal Philippe Ramirezl2000 Rs.425.00 L.K . Manandhar/K.B. Bhattachanl2001 Rs.200.00 Some Aspects of Value Orientation: A Study of Kathmandu Spring: The People's Movement of 1990 the Adults in Nepal and India Kiyoko Ogural2001 Rs.325.00 N.P. Upadhyayl2001 Rs.640.00 Land-Registration: In Nepalese Perspective A Step Towards Victim Justice System • ShreSlhall999 Rs.150.00 Nepalese Perspective S.K. Shresthal2001 Rs.400.00 Land and Social Change In East Nepal Lionel Caplan/2000 Rs. 325.00 The Throne of Stone l .P. Crossl2000 Rs.550.00 Nepal In Political Crisis R.K. Vaidyal2001 Rs.651.00 (Source,' Hima/oyoll Book Celller, Bagh 80::ar. Kathmalldu, Ph : 242085) Video (English) The Tailor Of Panama Blow TQ/Jlcats Say It Isn't So Along Came A Spider Russian Maha • Mexican Exit Wounds "Do not yearn for Disappering Acts 300 Milestograce Land physical joy and, Albela by so doing, dis- Jodi No 1 Chori Chori Cbupke Chupke card the more per Rahul manent joy of in One2Ka4 Kasoor ner calm and con- Chhupa Rustam tentment. " Mohabatein Raju Cha Cha Hadh - SATHYA SAl BABA (Source,' Super SUlr Videu. New Road) SPOTLIGHT/MAY 4, 2001 29 LEISURE OVERBOARD~ ______~~~~~~ '0 "H:lIO" Or f.RSO NA I.. I rl~I~N(;IALfMBL[MS" AND MY f.WNGS Of JOB BIlRN -otff.. MR. BOFFO n ERNIE [UNEI1f t. /PJE ,.rl ! /.DV/: ,.rl 30 SPOTLlGIITI.\·lAY .. , 2001 LEISURE CROSSWORD BRIDGE NORTs.A8 H Y Q J 109 • A J e 3 • K 7 2 WEST EMf • J 7 4: • Q 10 5 3 2 Y 64:31 • K Q 105 .-• 9872 ••• • J 1093 SOIITH •YAK87S K 9 6 • •AQ6S Vulnenble: Both Dealer: South South Weal North East ..... SW ..... I. H' ' ...... Pau ' .... •• Pau .. ' Pau ,,. All"", .. ·Contrnl-showing.' bids ACROSS DOWN I. High.f1yeronce hindered by literary dean 2. It may be served with Roquefort, ini "To be brave in misfortune is to be (8) tially, and wine (4) worthy of manhood; to be wise in 6. Politician takes time off to admit blunder 3. Comic papcrengages wartime hero with about working model (6) evidence of debts (9) misfortune is to conquer fate," 9. Fabric originally worn in church but ul· 4. Non-professional male song-writer? (6) AGN£S R£PPLl£R limately at home (10) 5. Play with sacred book at first? The man, 10. Philosopher set up fo r the daily grind? I swear, isn't all there! (5.10) When adversity strikes. it may not be enough (4) 6. Moved clobber (8) to seek a quick Band-Aid soluti on, Often, 11 . White horses may accompany us during 7. Game doctor observed before a dance (5) more thought is required to tind the surest way such a journey (12) 8. Dressing down, being highspirited (10) to success. 13. Venetian merchant supplying game (4) 12. Soldiers in company race to state cer Visualizing an easy road to 13 tricks, 14. Frantically seek a man. one of the same emony (10) South wins dummy's diamond ace and Jeads a denomination (8) 15. Theatre music. an outstanding example trump. East's discard straighlens South' s back, 17. Frenchman in baulefield that's adjoining (9) and South must reconsider his prospects. How ancient city (8) 16. Smooth colonel finally entering main can he overcome the unexpected develop Old writer's materi SPOTLIGHT/MAY 4. 2001 31 FORUM How Efficient Is The Stock Market? By DR. MANOHAR K. SHRESTHA basic strategy of regulatory authorities like the Securities Board inside infonnation, is made public to ensure rational and co m~leti'- 1 1( ~c~: u) and Nepal Stock Exchange (NEPSE) is to make the stock tive behavior of the stock market under strong fonn of as competitive and effi cient as possible. From 1976. auempts efficiency. In our stock market, the play on IO side information been made to develop the stock market in the country. How come to public noli ce as in the case oflhe block saleofNABIL actual efforts slaned wi th the promulgation of the Securities chip shares. IT",n"" ';" n Act in 1983, which was subjected to frequent amend- But mi suse ofioside information is prohibited by In" m"OV .."nnSl of the Securities Exchange Act and the regulating authorities The stock market transactions took place on open-cry system make no advance notice of how there is the use of inside information. th e basis of ask-bid price in the trading Ooorduring 1993-94. This 1n the recent stock market turmoil, many investors areoftheopinion was the beginning of the induction of a co mpetiti ve stock market that due to lack of access to inside information. many of them have th ro ugh the network of financial intermediaries such as had to suffer from unexpected downward price movements. 27 individual me mber broker firms, four dealers and two market dealing of shares of many other blue chips are burning example 'm,h,,, Market capitalization has reached Rs.43 123.333 million, trading on inside iofonnation. Irepre:se,ntillg 11. 88 percent ofGDP, which isreally a good achieve- The fundamental question is: why does a stock market tend to be inefficient and imperfect in a country like ours. Tt may be mainly Continued financial reforms with an attitude of self·reliance because of the fa ilure to maintain any level of market efficiency . the setling up of SEBO created a very conduci ve environm ent This is the reason fo r the present unfavorable incidence of stock a competitive slOck markel. But some degree of market imper price downturn, which has had a severe impact on the financial Ifccti,)n, was found 10 dominate the operations of the stock market. fortunes of the in vestors. The rate of market value loss to investors 'R,p' e' rnnn 10 thi s background, we can ascertain whether the stock is morc th an Rs 12 to Rs 20 million approximately. III 1,~ e Dal is efficient or not, depending on the nature, level and In Nepal's stock market, it is very di fficult to ascertain whether Ist'IOd:ard of information disclosure made available to the investing stock price reflects all the past information about the li sted compa· 'rn ~n"onit y both big and small. nies' performance. The current dubious and hazardous movement of In fact, there have been unusual events in the stock market The stock prices has no sound fundamenlal backin g of analysis and nuclualing stock market prices at the Nepal Stock Exchange re lationship tothe past results revealed in limited available financial the direct outcome of an inefficient market beh"avi or resulting statements. It is because the stock price has crossed the boundary of severe de fi ciency of information di sclosure leading to earl y th e calculated dividend yield , net worth and price eaming multiples. in 1993-94. That was fo llowed by a mild crash in subsequent However, in some blue chip scrips. past infonnation has randomly Again, a turning point came in 1998·2000, underscored by a guided the rise in investor's confidence to pay higher price. as can reaction of bullish trend. Now Ihere is a continuum of earl y be in the scrips of joint-venture banks especially the share of Nepal of bearish mood of lhe market. The past prices have no impact Bangladesh Bank, finance and in surance companies. current prices, since prices move randomly. Thus. it is important But the present tunnoil in the Nepal Stock Exchange has understand the basic concept and implication of effi cient market a drastic fall in NEPSE index from 560 to 373, making i and hypotheses. The general conclu sion is 111at, in practice. suffer huge losses. And thi s is mainly due to deficiency in pUIDt,,:tYI I",~,· ",;op movemenl cannot be predicted and determined so easily. available informati on under semi·strong form of market efilciencyl According to the efficient market theory. stock price reflects all on one hand and acti ve inside trading of private in formation contents to show proper consistency in price moments. targeted companies under strong form of market efficiency on market e ffici ency is measured against three levelsofinforma· other. First. it consists of a weak form of efficiency under which the lnvestorscomplain that this is nOI alimc for market prices to assumption is that stock prices refl ect all information con· when all fundamental signals are strong enough to mai ntain Ih,'nricel in th e past sequences of stock price and trading volume data. level, as is the case with blue chip share of Nepal Bangladesh stock market is not efficient enough since all the li sted compa· Nepal Grindlays Bank, Nepal SBr etc. Thus, investors co,n CI 'U Qf,U ni es do nol make past information available 10 shareholders. that there had been fou l play using in side information. The re;lcti.on Then comes the semi-strong form of market efficiency based is based 00 the assumption of strong form of market efficiency. the assumption th at slock prices refl ect all the publicly available intervention of the Securities Board in coordin ation with . nfonnation about the companies. In this case, too, many li sted Stock Exchange to investigate the events with a view to pn)tecting IcclmlDarli e'ldo not produce annual reports or financial statements that the investors would be appropriate. For this. a committee is fn~p" very crucial for investors to analyze and judge the perfonnance come up with suggestion to improve the stock market to follow the companies, Out of 100 li sted companies, only 40-70 comp. path of efficient market behavior. This makes it possible 10 produce annual report. adequate disclosure of all past, publicly available infonnation Lastly, a strong form of market efficiency exists if stock prices help investors gain access to inside infonnation. • all information that is known about a company, even that is nOI avai lable to the public. Private infonnation, often called (D r. Shrestlla is a professor at Tribhuvall Ulliversity) 32 SPOTLIGHT/MAY 4, 2001 THE KHUKRI IS THE FAMOUS NATIONAL WEAPON OF THE GORKHA SOLDIERS OF NEPAL. 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