May 23, 2006
Nepal Mountain News
One day after making public the white paper on the status of the national economy, finance minister Dr Ram Sharan Mahat disclosed that the government is planning to bring in a massive rural investment plan. Speaking at Reporters Club on today, Dr Mahat said the proposed plan would emphasise employment and income generation in order to revitalise the rural economy. “The plan will focus on reconstruction and rehabilitation of infrastructure as well as economic activities,� he added. Although Dr Mahat didn’t mention when the plan would come into force, he said that the programme will focus on sustaining peace by means of developmental activities.
Dr. Mahat's statement came one day after the Maoist supremo Prachanda, during an interview with local FM in Palpa, urged the government to allocate 50 percent budget for the rural development and to feed Maoist rebels. He also asked the Maoists to create a conducive environment for industrial activities and stop extortion targeting industrialists. "In the current industrial climate, neither domestic nor foreign investors will be willing to invest in new ventures," he said. On the current macroeconomic situation, he said the Nepali economy met with a serious problem due to unproductive spending by the royal government. "Development work has been stalled, giving a blow to the economy," he said. Dr Mahat also reiterated that the government would completely scrap the unnecessary and unproductive expenses of the Royal Palace, and stop recruitment of any security personnel and purchase of military goods. Stating that the country is passing through a critical juncture in its history financially and politically, Dr Mahat urged the private sector and concerned stakeholders to cooperate and act accordingly for revival of the economy. He also urged the Maoists to stop extortion and forced donations in order to create a congenial environment for the peace process. Commenting on the government's effort to seek aid from donors, he said the government is going to hold a meeting with donor communities on Wednesday to get international community's help in development activities. Referring to past expenditures, he said the government would take action against those in the royal government who spent money recklessly, if it is possible to punish them under existing laws.
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Government to Bring Rural Investment Plan
One day after making public the white paper on the status of the national economy, finance minister Dr Ram Sharan Mahat disclosed that the government is planning to bring in a massive rural investment plan. Speaking at Reporters Club on today, Dr Mahat said the proposed plan would emphasise employment and income generation in order to revitalise the rural economy. “The plan will focus on reconstruction and rehabilitation of infrastructure as well as economic activities,� he added. Although Dr Mahat didn’t mention when the plan would come into force, he said that the programme will focus on sustaining peace by means of developmental activities.
Dr. Mahat's statement came one day after the Maoist supremo Prachanda, during an interview with local FM in Palpa, urged the government to allocate 50 percent budget for the rural development and to feed Maoist rebels. He also asked the Maoists to create a conducive environment for industrial activities and stop extortion targeting industrialists. "In the current industrial climate, neither domestic nor foreign investors will be willing to invest in new ventures," he said. On the current macroeconomic situation, he said the Nepali economy met with a serious problem due to unproductive spending by the royal government. "Development work has been stalled, giving a blow to the economy," he said. Dr Mahat also reiterated that the government would completely scrap the unnecessary and unproductive expenses of the Royal Palace, and stop recruitment of any security personnel and purchase of military goods. Stating that the country is passing through a critical juncture in its history financially and politically, Dr Mahat urged the private sector and concerned stakeholders to cooperate and act accordingly for revival of the economy. He also urged the Maoists to stop extortion and forced donations in order to create a congenial environment for the peace process. Commenting on the government's effort to seek aid from donors, he said the government is going to hold a meeting with donor communities on Wednesday to get international community's help in development activities. Referring to past expenditures, he said the government would take action against those in the royal government who spent money recklessly, if it is possible to punish them under existing laws.
Other News
- Cabinet expanded: The Seven Party Alliance (SPA) government has added five ministers and six state ministers to the existing cabinet. The new appointments are from CPN-UML Rajendra Pandey, Minister of Local Development, Pradeep Gyawali Minister of Tourism and Civil Aviation, Mangal Siddhi Manandhar Minister of Education, and from NC-D Narendra Bikram Nembang Minister of Law and Justice, and Deputy Speaker Chitralekha Yadav Minister of Water Resources. Yadav has rejected the post. Among the new Ministers of State are Gopal Rai (NC) Forest and Soil Conservation, Dilendra Prasad Badu (NC) Information and Communication, Manbahadur Biswakarma (NC) Science and Technology, Urmila Aryal (CPN-UML) Women and Children, Dharmaprasad Shah (CPN-UML) Local Administration, Ramesh Lekhak (NC-D) Labour and Transport. As Peoples Front Nepal (PFN) and Nepal Sadbhawana Party-Anandadevi (NSP-A) from the SPA have been left out of the current expansion yet another addition is expected. Earlier the two parties reportedly asked for two ministries each. However, the SPA meeting decided to allot one ministry for 10 parliamentarians. PFN has six MPs while NSP–A has two. Prime Minister Girija Prasad Koirala has kept the portfolios of Defence, Health and Population, and Industry for now. According to sources Koirala will keep the defense portfolio and recommend three other names for the remaining ministries. Meanwhile, Nepal Peasant Workers Party has decided to stay out of the government.
- Prachanda To Head Maoist Talks Team: Maoist chairman Prachanda himself will lead the Maoist talks team. In a statement issued on Saturday, Prachanda said he would participate in the direct talks with the government after his team of three negotiators – headed by Krishna Bahadur Mahara – carried out a preliminary dialogue. In the statement, Prachanda also issued his roadmap for peace that seeks the release of political prisoners, dissolution of parliament and the constitution, and restructuring of the national army. It seeks a round table conference, interim statute and interim regime, and the delimitation of constituencies based on representation of different sections of population. “This has to be followed by dependable supervision of the election to constituent assembly by international agencies,� the statement says, adding the need to reorganize the “Royal� and “Janamukti� army. It also hints at the threat coming from royalists and external reactionaries following the restoration of the parliament. It warns the seven party alliance that if it went against the 12-point pact, the Maoists will lead another revolt against it. Prachanda also lays stress on secularism, right to self-determination and self-governance with special rights to Dalits and women. He calls for revolutionary land reforms, independent national economic policy, strong opposition to foreign interference, scientific and people-friendly education system and employment guarantee.
- Palace wheels: At the height of People’s Movement II, the palace was demanding funds for a special car for the king, worth about Rs 1 million. On 18 April, the Ministry of Finance received a letter from the palace saying that the king needed a mine-proof car to tour the rough roads of the districts. Even after the palace lost its authority following the successful janandolan, palace officials did not stop pressuring the ministry to release the funds. Initially the budget unit was rushing to release the money but it has now kept the request pending. King Birendra used only two cars all his life but this king is demanding new cars left and right at a time when poverty remains a major problem. In the last three years, cars worth about Rs 370 million have been imported for the king’s use, including a Rolls Royce and Jaguar. Many are now wondering what luxury model is on the king’s shopping list today–we should know in a few months.
- German trekker’s body found, sister suspects foul play: German trekker Kristina Kovacevic’s decomposed body has been found in Solukhumbu and flown to Kathmandu on Friday. She will be cremated in Kathmandu and her ashes taken to Germany, said her sister Karoline Stallcup who had been to the Khumbu region to look for her. “A trekking guide came up to me in Namche and told me that he had come across my sister’s body. So I trekked all the way to the spot and found that my sister had fallen off a 200-metre cliff,� Karoline said. Karoline, who had flown to Lukla on May 16, said she suspected foul play in her sister’s death. She said Kristina may have been robbed and pushed down the cliff. “Her belongings — money, credit cards, sleeping bag, shoes — are all missing. All she had were the pants and the shirt she had been wearing. However, I cannot say for sure that she was killed because there is no proof,� she said today. The last time she heard from her 41-year old sister was on March 13. Kristina had sent an e-mail to Karoline from Namche Bazaar. She may have died on March 15, Karoline said. “Now I am waiting for the German government and the German embassy to issue a clearance for my sister’s cremation. Her ashes will have to be sent to Germany through courier.�