Butwal, Apr.20:New traffic rules coupled with people’s growing attraction towards taxies have posed uncertainty to the future of more than five thousand rickshaw-pullers in this town.
The traffic police have introduced a compulsory license system for the rickshaw pullers saying that the step was taken to control the rising road accidents.
The new provision of license was introduced to curb the road accidents and to make the rickshaw puller more responsible, the traffic police sources say.
Similarly, the Butwal Municipality has stopped the registration of new rickshaws citing that the excessive growth of the vehicles has caused road congestion.
The new registration was stopped since number of rickshaws is comparatively greater than their users in the town, the Municipalities sources say.
The rickshaw pullers say that the growing tendency of the public to use taxies and tempos (three wheelers) has worsened the situation adversely affecting the only source of their livelihood. This caused a great reduction in their income, they say.
“My earning has come down from 150 rupees in the past to less than 50 rupees now,” says Phirta Kewat of Motipur in Kapilvastu district.
There are 30 taxies and 20 tempos operating in the locality.
Kathmandu, Apr. 20:Finance Minister Mahesh Acharya has said that the programme of comprehensive economic, organisational and policy reform announced by His Majesty’s Government is not meant just for bringing in foreign investment but also for mobilising internal means and resources, encouraging investment and making wise use of capital and technology so as to build the basis for development in the country.
Finance Minister Acharya, who returned to the capital today after participating in the Nepal Development Forum meeting in the French capital Paris, said there is ample scope for bringing foreign investment to Nepal if reliable economic structures and mechanisms for development could be put in place through mobilisation of internal means and resources and streamlining to facilitate the development process.
He said this reform program has been advanced by hmg for the development of Nepal and upliftment of the Nepalese people. Our need today is to strengthen institutional structures, control corruption, reform the financial sector and make optimum use of means and resources, he added.
He said it will be a great help in the effective implementation of the reform program if there is political stability in the country and awareness and support among the responsible political parties.
In answer to a question, he said the Nepalese people, civil society and responsible political parties should exercise sensitivity towards the development of Nepal and the upliftment of the people.
Mr Acharya said the reform program is not complete in itself but requires further refinement, additional input and new policy-wise reform.
He said a direct assault on poverty in Nepal cannot be made without rising above minimum levels of savings, investment and economic growth rate.
He observed that in his concluding remarks at the Nepal Development Forum meeting in Paris, he said at this critical juncture of economic reform and development Nepal’s friends are prepared to support her and her people more actively and intensively.
National Planning Commission vice chairman Prithviraj Ligal said the meeting had agreed on giving the government responsibility as the main player and for coordinating among donors.
Kathmandu, Apr. 20:Donor nations and agencies are to provide cooperation worth one billion dollar during the period of one year for the development endeavours of Nepal.
At the meeting of the Nepal Development Forum which concluded in Paris yesterday, the representatives of the donor agencies and nations expressed commitment to increase the sum of assistance if progress of institutional and policy reforms and also the utilisation of cooperation money was intensified.
If hmg is able to effectively implement the documents of the reforms of the economic, institutional and policy measures, International Development Association (ida) alone will provide over 400 million dollars to Nepal.
The document adopted by the council of Ministers has covered all the points raised in the assistance strategy prepared by the World Bank.
The documents for reforms was presented at the Nepal Development Forum held in Paris, the capital of France from April 17 to 19.
Minister for Finance Mahesh Acharya said that he was able to make the representatives of the donor agencies and nations agree in principle to the topics of the documents for reforms at the Paris meeting.
He said, “At the Paris meeting this time, we did not strive for the approval of projects and bring in dollars. Instead, we presented ourselves somewhat in a different fashion than in the past. We held discussions with the donor nations and agencies on the policy formulated by hmg in connection with economic stability, development, poverty alleviation and good governance and tried to win their confidence.”
Mr. Acharya said that the reform programme had been initiated for the development of Nepal and uplift of Nepali and if internal means and resources could be mobilised and reform programmes implemented effectively, more and more of foreign aid could be mobilised.
The assistance strategy prepared by the World Bank states that if the economic management was improved, revenue increased, money spent productively, and effectiveness of civil services was increased, specially institutional services enhanced, then ida would provide credit from 200 to 350 million dollars.
Similarly, this year also, efforts aimed to ensure economic management and expedite the pace of state operation could not gain stability, government’s inaction and the deteriorating law and order situation continued to exist and the loan to be provided by the ida will reach us $150 million.
Minister Acharya said commitment made by His Majesty’s Government to donor countries and agencies for social development and poverty alleviation, the reform agenda passed by the council of Ministers and the commitment made for its implementation has offered promises for Nepal’s development and upliftment.
Public revenue is not in a position to sustain development, dependence on internal as well as external loans is emerging as a fiscal management challenge and it is our compulsion to depend on foreign means and resources for the next few years, he said and spoke of the need for us all to be serious for intensifying development works.
The Nepalese economy is now beset with a host of problems and it is because of political instability, corruption, misuse of government resources, weak fiscal sector and slackness in public revenue, he further said.
Talking to journalists after the Paris meeting, World Bank’s representative for Nepal Hans Rothenbuhler said Nepal would not have to worry for aid if it strengthens its institutional capacity.
According to World Bank, export of electricity would help Nepal earn a huge income on a long-term basis and agriculture is the only alternative to alleviate poverty.
Mr Rothenbuhler also spoke of the need to create a conducive atmosphere for the private sector to expedite Nepal’s development.
The documents for reforms was presented at the Nepal Development Forum held in Paris, the capital of France from April 17 to 19.
Minister for Finance Mahesh Acharya said that he was able to make the representatives of the donor agencies and nations agree in principle to the topics of the documents for reforms at the paris meeting.
He said, “at the Paris meeting this time, we did not strive for the approval of projects and bring in dollars. Instead, we presented ourselves somewhat in a different fashion than in the past. We held discussions with the donor nations and agencies on the policy formulated by hmg in connection with economic stability, development, poverty alleviation and good governance and tried to win their confidence.”
Mr. Acharya said that the reform programme had been initiated for the development of Nepal and uplift of Nepali and if internal means and resources could be mobilised and reform programmes implemented effectively, more and more of foreign aid could be mobilised.
The assistance strategy prepared by the World Bank states that if the economic management was improved, revenue increased, money spent productively, and effectiveness of civil services was increased, specially institutional services enhanced, then ida would provide credit from 200 to 350 million dollars.
Similarly, this year also, efforts aimed to ensure economic management and expedite the pace of state operation could not gain stability, government’s inaction and the deteriorating law and order situation continued to exist and the loan to be provided by the ida will reach us $150 million.
Minister Acharya said commitment made by His Majesty’s Government to donor countries and agencies for social development and poverty alleviation, the reform agenda passed by the council of Ministers and the commitment made for its implementation has offered promises for Nepal’s development and upliftment.
Public revenue is not in a position to sustain development, dependence on internal as well as external loans is emerging as a fiscal management challenge and it is our compulsion to depend on foreign means and resources for the next few years, he said and spoke of the need for us all to be serious for intensifying development works.
The Nepalese economy is now beset with a host of problems and it is because of political instability, corruption, misuse of government resources, weak fiscal sector and slackness in public revenue, he further said.
Talking to journalists after the Paris meeting, World Bank’s representative for Nepal Hans Rothenbuhler said Nepal would not have to worry for aid if it strengthens its institutional capacity.
According to World Bank, export of electricity would help Nepal earn a huge income on a long-term basis and agriculture is the only alternative to alleviate poverty.
Mr Rothenbuhler also spoke of the need to create a conducive atmosphere for the private sector to expedite Nepal’s development.
Nuwakot, Apr. 20:Sahila Tamang, 12, of Lachyang Village Development Committee leaves for the jungle with the cock’s crow to collect fodder and firewood. Immediately after his return home, he again leaves his home to graze his cattle and goats.
Similar is the fate of the majority of the children in Nuwakot. About sixty per cent school-age kids are forced to stay away from the light of education. They have no idea of what a school is like. Asked why does not he go to the school, Sahila said, “Who will collect fodder and graze the cattle?”
Charimaya of the same VDC left school completing class III. Responding to a question on why she left the school, 15-year-old Charimaya said, “It is not proper for a girl of marriageable age to attend school.” Charimaya who believes that she is matured enough for marriage is totally unknown of the frequent child rights workshops and seminars in the cities.
This is not only the case in the remote villages. The presence of the student is very thin even in Mahalaxmi Primary School and B. P. Memorial Primary School located in Bidur Municipality. Although the enrolment touches 200 in class I and II in B. P. Memorial Primary School, the number drops down to 15-20 by class V. The presence of the children from the lower class and the ethnic communities is almost nil.
“The guardians here are not aware that children should be sent to school,” Bageshwori Secondary School (BSS)’s headmaster Lal Bahadur Kunwar said. “However the situation is changing gradually. The parents these days feel proud if their wards have completed primary education before joining the household and farm chores.”
The figures provided by the District Education Office shows that out of 95,939 children below 10, only 38,526 have been attending schools.
“Lack of awareness among the people, indifference of the people’s representatives, lack of contact and co-ordination between the teachers and the guardians, and the inconvenient location of the schools are the main reasons behind poor literacy,” BSS management committee Chairman Aan Bahadur Pyakurel said.
United Lower Secondary School’s headmaster Indra Bahadur Pandit too said that lack of awareness was the major factor behind the dismal educational scenario. “People still marry off their daughters before she completes 15. They have a misconception that they will have difficulty in finding a good suitor if she is provided higher education.”
Inconvenient location of schools is another aspect of the problem, he added.
The guardians here engage their daughters in the household business from their childhood, as they believe that the daughters’ prime duty is to take charge of the house and satisfy their in-laws once they are married.
Kathmandu, Apr.20:British Secretary of State for Foreign and Commonwealth Affairs Robin Cook arrived here by a special aircraft RAF VC-10 for a two-day official visit today.
“It’s been very enthusiastic to visit Nepal because our (Nepal and Britain’s) relations have been very strong and long,” Cook told reporters after he was received by Foreign Minister Chakra Prasad Banstola at the VVIP Bay of Tribhuvan International Airport this evening.
Cook said that the highlight of his visit would be his audience with His Majesty the King and have meeting with Prime Minister Girija Prasad Koirala and the Foreign Minister Banstola on a full working agenda.
“I hope to visit the British Gurkha’s Nepal camp tomorrow. Gurkhas have been the central part in the British relations with Nepal. They have been the central part of the British Army. They serve with great distinction. Most recently they were the part of the team that served in East Timor to help bring peace and security in that troubled area.”
The British Foreign Secretary said that he wanted to express his appreciation on the Gurkha soldiers’ contribution and also to highlight the new pension award for Gurkha soldiers. “All Gurkha pensions have now at least doubled.”
“I also want to see for my self and applaud the multiparty democracy system that has been created here in Nepal,” he said adding, “That democratic process makes Nepal a firm partner with us in development.”
Cook reminded that Britain is the second largest bilateral aid donor to Nepal. He said that he will be visiting a number of projects here and he would be reporting on the success of Nepal-British joint work.
The visiting British Secretary of State for Foreign and Commonwealth Affairs, after arriving at the British Embassy here this evening, opened the new office of Nepal-Britain Chamber of Commerce and Industry. Unveiling the plaque to inaugurate the new office, Cook said “we can now work together even more closely to multiply the trading opportunities for our two countries. This will build on the work you have already started; promoting British wool in Nepalese carpet manufacturing and knitwear; displaying UK products and services at the recent Himalayan Expo 2000, with specific and successful opportunities for British business; and forging new and dynamic initiatives in IT and other areas.”
He further said: We hope that as trade develops and prosperity grows trade will transcend aid as the basis for the country’s development as we move together into the new millennium.”
He is scheduled to lay the foundation stone of the new British Council building here tomorrow.
Cook is the first British Secretary of State for Foreign and Commonwealth Affairs to visit Nepal. “It’s a general, bilateral and a goodwill visit” Foreign Minister Banstola said just before receiving Cook at the TIA this evening. “The visit is an opportunity in getting to know each other better on the entire gamut of international relations.”
Cook will leave for the UK at 22:15 tomorrow evening.
RSS adds: British Secretary of Foreign Affairs Robin Cook’s official visit beginning today is expected to add a new dimension to the bilateral friendly relations and promote bilateral trade and investment.
President of the Nepal-Britain Chamber of Commerce and Industry Rajendra Khetan has expressed confidence that the first-ever visit by a British Foreign Secretary will contribute to ensuring economic development of Nepal.
Stating that successful privatization of public undertakings of Britain may prove important in the context of Nepal also, Mr. Khetan noted that talks between the Secretary of Foreign Affairs and those from the business community will be important.
The visit by the British Foreign Secretary will significantly contribute to importing British technology and raw materials for exporting finished products and increasing the number of British tourists in Nepal, he said and spoke of the need to form a joint economic council in the private sector to promote bilateral trade.
Observing that the first-ever visit by a British Foreign Secretary after the establishment of diplomatic relations in 1816 A.D. is of course positive and the visit has come at a time when the Labour Party has responded our economic activities such as promoting trade and investment rather than achieving only economic assistance.
Trade between Nepal and Britain has been increasing in recent years.
In fiscal year 1997/98, Nepal exported goods worth Rs. 318.160 million to Britain, while during the same period Nepal imported goods worth Rs. 312.640 million from Britain.
Nepal exports ready-made garments, carpets, and woolen and handicraft goods to Britain, while it imports machinery parts, electricals goods, aircraft spare parts, muslin, medicines, scientific tools and goods made of good and silver.
At present, eight industries are in operation under Nepal-English joint venture.
The number of British tourists is also increasing in recent years. In 1997, a total of 2,998 British tourists had visited Nepal, while the number rose to 35,497 in the following year.
During his visit to India, British Secretary of Foreign Affairs Cook had said trade relations with Nepal will be expanded on the basis of partnership.
The 200 year old relations between the two countries has been cordial at the people’s level and recruitment of Gurkha soldiers has contributed to further promoting it.
Kathmandu, Apr. 19: The budget which His Majesty’s Government is going to present next month should not be populist like the election manifesto but it should be directed towards the overall development of the national economy and promotion of investment.
This view was expressed by some of the eminent industrialists and businessmen of the country at the face-to-face programme organised by the Reporters’ Club Nepal here on Tuesday.
The objective of the face-to-face programme was to deliberate on the structure and the nature of the budget for fiscal year 2000/2001 and the future economic policies to be adopted by the government.
Speaking on the occasion, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Pradeep Kumar Shrestha stressed that the next budget should be development-oriented rather than revenue-oriented.
He said since the policies and programmes of His Majesty’s Government as reflected in the budget have an important role in the economic development of the country, the economic policies and programmes of the government should be such that they encourage more investment from the business and industry sector, they are sustainable and focused on consolidation of the national economy.
Stating the budget formulated by a stable government would certainly be different from the one formulated by an unstable government, he expressed the hope the budget for the fiscal year 2000/2001 would surely introduce some new economic programmes which are sustainable.
The FNCCI president said the South Asia Federation Games (SAF-G) tax was still being taken from businessmen even though it has been six months since the eighth SAF Games have been held. He urged the government to stop taking the SAF-G tax.
President of the Chaudhari group of industries Binod Kumar Chaudhari said the national economy has deteriorated since the past few years because of the myopic view held by some persons who equate personal benefit to party welfare and the party welfare to national welfare.
Rather than being just like a party’s election manifesto, the next budget should be such that it should revive the national economy, expedite national development and promote and protect the domestic industries like the Pashmina industry, he said.
Effective implementation of policies and programmes counts more than their mere formulation, Mr. Chaudhari added.
Youth industrialist Diwakar Golchha of the Golchha Organisation said the national tourism industry was badly affected by the present bitterness in Nepal-India relations after the hijacking of the Indian Airlines flight last year.
He said the economic policies and programmes of the government in the next year’s budget should be geared for Nepal’s membership of the World Trade Organisation (WTO) and the South Asian Free Trading Arrangement (SAFTA).
Stressing an economic policy that is suitable for effective implementation and that is informative too, Mr. Golchha said rather than taking a wait-and -see approach after the introduction of the new policies and programmes, the government should properly monitor it and reevaluate its effectiveness.
Former president of Nepal Chamber of Commerce Mahesh Lal Pradhan underlined the need for the industrialisation of the agriculture, tourism and water resources sectors.
He expressed the view that this would not only raise the national economy but would also help in employment promotion.
Newly-elected president of Nepal Chamber of Commerce Rajeshkaji Shrestha pointed out the need for conducive investment climate in the country.
He said the government should reduce dependence on foreign loans and simplify the present tax regime.
Kathmandu, Apr. l9: Foreign Minister Chakra Prasad Bastola returned here today after leading the Nepalese delegation to the 56th meeting of the Human Rights Commission held in Geneva, Switzerland, the l3th ministerial level meeting of the Non Aligned Movement held in Cartegena, Colombia and the first South Summit Conference of the Group of 77 developing countries in Havana, Cuba.
Talking to journalists at Tribhuvan International Airport, Foreign Minister Bastola said that during the meeting of foreign ministers of Non Aligned countries held in Cartegena, views were exchanged on international and regional matters, and extensive discussions held on taking the Non Aligned Movement forward in the days ahead.
Pointing out that serious exchanges of views took place on whether or not the non aligned movement is needed now that the cold war has ended and if it is needed how it should be taken forward, he said the meeting focused for the most part on turning the Non Aligned Movement towards the economic development of developing countries.
During his visit, Foreign Minister Bastola held informal bilateral talks on various aspects of the promotion of regional interests with the Foreign Ministers of India, Bhutan, Bangladesh and other countries.
He also said the visit to Nepal by British Foreign Secretary Robin Cook starting tomorrow will help further deepen the harmonious relations that have existed between the two countries since years back and discussions will be held on matters of bilateral interest.
Discussions are also likely to be held during Mr Cook’s visit on bilateral cooperation in Nepal’s economic development, the construction of roads and bridges in Eastern Nepal, the rights and interests of former Gurkha troops and facilities for them.
Stating that informal talks were held with the Foreign Minister of Bhutan on resolving the problem of Bhutanese refugees, he said he put it to his Bhutanese counterpart that formal talks should be held at political level and the Bhutanese side also showed interest in resolving the refugee problem.
In his meetings with Foreign Ministers of saarc countries extensive discussions were held on ways to remove the obstacles in the way of saarc activities, he said adding that everyone was of the view that such obstacles should be done away with.
Kathmandu, Apr. 19: Secretary of State for Foreign Affairs Robin Cook’s official visit to Nepal beginning tomorrow is expected to further consolidating bilateral relations subsisting between the two countries.
Mr Cook is the first Secretary of State for Foreign Affairs to make an official visit to Nepal at the invitation of his Nepalese counterpart.
Britain is the second largest bilateral donor country. In 1998-99, dfid of Britain made an investment of 17.2 million Sterling Pound.
The fund has promised to make investment in the same ratio in the current fiscal year. It established an office in Nepal to identify and resolve problems leading to poverty.
Dfid programmes are focussed on good governance, human development and improving quality of life of the village people.
The fund also launched a programme aimed at building a civic society with more powers in 1997 which will run till October this year.
The dfid is also working through the Finance Ministry for consolidating the fiscal management system of His Majesty’s Government. Under the comprehensive strategic management process, the project is assisting in budget formulation and keeping annual accounts.
The fund is also cooperating in the process for transfering ownership and management of government enterprises to the private sector through the four-year privatization project.
It has also been helping in making Nepal Police service more honourable and reliable.
In the health sector, it has launched the district health project, safe motherhood project and a project started with the partnership of the United Nations Population Fund (unfp).
Similarly, in the education sector, the fund has been assisting in secondary education project, teacher volunteer service and Community Literacy Project, etc.
The fund has also assisted in seed production project, hilly area agriculture research proejct, Nepal-Uk Community Forest Project, Bridge Construction and Improvement Project, Eastern Regional Road Improvement Project and the Road Improvement Project, etc.
Butwal, Apr. 19: Deputy Prime Minister and Minister for Local Development Ram Chandra Poudel has said that the rights to resources as provided by the Local Self-Governance Act to develop the municipalities as an autonomous body should not be made an issue of victory or defeat and implemented in courageous manner.
Deputy Prime Minister Poudel was inaugurating the fourth general meeting of the Nepal Municipalities Association at Siddharthanagar today.
Local Self-Governance Act has been introduced to develop the local bodies as an autonomous body keeping in mind that real meaning of democracy is good governance, he said, adding that effort on the part of all concerned is necessary to further empower the local bodies and make them effective by correcting mistakes, if any, in the Local Self-Governance Act.
Mr Poudel noted that the people’s representatives should provide maximum services to the people and handle the budget transparently in order to empower the municipalities.
As the management aspect of the local bodies were not efficient, some of the powers had to be reserved at the centre, he added.
The Deputy Prime Minister said that the attempts being made few elements to subvert democracy under the pretext of revolution should be foiled unitedly.
Cpn-uml central member and mp Rajendra Pandey said that there was inconsistencies within the Local Self-Governance Act. It had reduced the resources of the municipalities, he added.
Cpn-uml central member Tanka Karki said that Local Self-Governance Act was not in consonance with the democratic culture.
Various speakers including vice-chairman of Rupandehi district development committee Ram Chandra Dhakal and Sidharthanagar Municipality mayor Sagar Pratap Rana expressed their views at the function chaired by president of Nepal Municipalities Association Dormani Poudel.
Altogether 254 representatives from 58 municipalities are attending the two-day meeting.
Kathmandu, Apr.19: Minister for Finance Mahesh Acharya has said that the proposals concerning economic reforms, institutional and policy reforms of the state machinery, the development of private sector presented at the meeting of the Nepal Development Forum had been praised by the donor agencies and countries.
In a direct video press conference organised from Kathmandu by Nepal Economic Journalists Society with the technical cooperation of the World Bank after the conclusion of the Paris meeting, Finance Minister Acharya said that reforms would speed up the pace of development and help in facing the challenges of poverty alleviation.
He expressed the confidence that the Paris meeting would prove to be a milestone in accelerating the pace of economic development.
Referring to issues such as the need for Poverty Alleviation Fund, basic matters pertaining to law and order and human rights, decentralisation, prevention of corruption and good governance raised by the donor countries and agencies at the meeting, Mr Acharya said that the present government is extremely sensitive on development, law and order, human rights and other relevant issues.
Mr Acharya spoke of the need to commercialise agriculture and increase investment in the social sector in order to fulfill the basic needs of the people.
In response to a question, the Finance Minister made it clear that the present government is committed to toning up the administration and improving the election system.
World Bank’s country director for Nepal Hans Rothenbuhler said donor agencies and countries are closely watching how Nepal implements measures aimed to rectify the economy.
Nepal would not have to worry for aid if Nepal could build its institutional capacity while at the same time implement the policy reforms in a scientific manner, he noted. Meanwhile, Nepal’s development partners reaffirmed their resolve to assist Nepal in addressing the challenges of poverty reduction and economic growth in line with performance on accelerated policy and institutional reforms.
The level of assistance in 2000-2001 will range from the current levels up to us $ 1,250 million.
The development partners emphasized that the levels of assistance will reflect progress in policy and institutional reforms and improvement in aid effectiveness.
This is stated in a press release issued by the World Bank after the conclusion of the two-day meeting of the Nepal Development Forum in Paris today.
Finance Minister Mahesh Acharya informed the Development Forum that the government would establish a mechanism to regularly monitor progress and outcomes on the reform and poverty reduction agenda and invite the development partners to share the findings of the reviews.
The reform agenda is not designed to muster donor support in the first place, it is fundamentally designed to drastically improve our institutions, change the quality of life of our people and enhance human dignity, he further said.
The development partners commended the serious commitment articulated by His Majesty’s Government to drive forward a comprehensive agenda of institutional and policy reforms.
Sharing the government’s sense of urgency, the development partners advised that the actions envisaged in the government’s reform agenda would call for enduring political will, building broad consensus and deeper partnerships with civil society and the private sector to sharpen the focus on poverty reduction.
The forum also agreed that the policy thrusts and public expenditure allocations to support the government’s reform and poverty reduction agenda should be reflected in the next budget.
On the occasion, World Bank vice president Ms. Mieko Nishimizu commended the Nepalese government for having recognized so explicitly and openly all the hard issues.
The representatives of the Asian Development Bank, European Commission, International Agriculture Development Fund, International Monetary Fund, Kuwait Economic Development Fund, Organization for Economic Cooperation and Development, Saudi Development Fund, the Undp and World Bank and those from Australia, Canada, Denmark, Finland, Germany, France, Italy, Japan, the Netherlands, Norway, Switzerland, England and America had participated in the meeting. Rss
Earlier, Minister for Finance Mahesh Acharya, addressing the Nepal Development Forum meeting in Paris Tuesday, spoke at length on the various measures taken by the present Nepali Congress government for implementing a programme of economic reform, bringing corruption under control and eradicating poverty.
Mr Acharya said the government strongly feels that its reform process should focus on materialising the scope of a sound state for sustained growth and tangible progress in poverty reduction.
Minister for Finance Acharya said the ineffectiveness of the development efforts of the past was mainly the result of excluding ordinary people from the development mainstream.
Due to such exclusion, people did not feel that they are an essential ingredient of the development process. Our main efforts therefore, is to rejuvenate the process to make people the centre-piece of development endeavour. For this we have no choices other than to implement policy reforms with greater focus, priority and commitment, he said .
Stating that good governance is the collateral for both domestic and foreign investors as is good economic performance, he said as part of the civil service reform to enhance good governance, the government has already reduced the number of ministries.
The government has also decided to follow specified guidelines in making political appointments to the top positions of the public enterprises, he added.
The reforms undertaken during the early 1990s created, to some extent, an enabling environment for private sector development, he said. In fact, encouraging results in economic growth and microeconomics had then begun to surface. The momentum, however, could not be sustained due to the instability in government that infused differing development priorities, during the previous parliament’s tenure.
He said the government is now preparing a new package of second generation of reform measures in order to revitalise the earlier efforts and introduce further policy steps deemed necessary to achieve development goals.
The government is attempting to build consensus on major issues of development and national importance, he remarked adding, to this end, a cabinet committee is negotiating with opposition political parties and measures to address the development problem are also being discussed with major political parties.
Pointing out that implementation of liberal policies alone was not sufficient to bring desired changes in the economy, he said lack of leadership and ownership in development activities by the government and people of Nepal, lack of focus on use of resources, and less attention to important aspects like governance, corruption and institutional capacity were other reasons for poor economic performance in the past.
The budget formulation process needs to be overhauled, and the absorptive capacity of the public sector has always been weak, as reflected by the level of resource use each year, he added.
In order to address these issues, the government will announce a foreign aid policy shortly, he said adding that the policy while adressing the issues relating to utilisation of foreign aid will also help enhance returns on public investment.
Earlier, vice president of the World Bank South Asia Region Mieko Nishimizu said that the challenge the bank shares in partnership with Nepal is to reduce poverty substantially, in one generation or less, according to the Ministry of Finance.
The number of poor Nepali people has been increasing in recent years and social unrest has also grown, he said adding, these are signs that progress has not been fast enough, and more importantly, fruits of economic growth have not been distributed equitably.
Speaking at a banquet hosted in Paris earlier, Minister for Finance Acharya said the growing expectations of the people following the restoration of democracy could not be matched with government plans and policy due to a host of institutional and structural impediments.
There is a need for substantial changes in administration, extensive improvements in financial sectors and creation of a congenial atmosphere for the private sector he said.
Reform programmes of the government should be sustained in order to consolidate the consensus being developed among the political parties and growing people’s participation in developmental work, he further said.