Mahat urges donors for more support

January 30, 2002
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January 30, 2002

Kathmandu: Finance Minister Dr. Ram Sharan Mahat has appealed the international community and donor agencies for “extra support” to heal Nepal’s economy reeling under a critical situation now.

“Of course security is our problem. The violence caused by Maoist terrorists in various parts of the country has compelled us to divert our resources to security. That’s why we need support,” said Minister Dr. Mahat while addressing an interaction programme on Nepal Development Forum – Economic Update 2002, here today.

Unless we overcome violence, steady economic development is not possible, Minister Dr. Mahat said adding, “You (international communities) have every right to point out our mistakes. And we are ready to rectify them.”

Minister Mahat further said that the government is well aware of Agriculture Perspective Plan (APP), rural development and research for faster economic growth.

Moreover, Nepal has made substantial improvement in various sectors like irrigation, literacy and health. And the human development index is one of the best in the region, he asserted. However, he admitted that the level of corruption and irregularities is a vital problem. “Hence, to strengthen the Commission for Investigation of Abuse of Authority (CIAA), we will bring out a new Bill in the 21st session of the Parliament,” Minister Mahat informed the gathering.

The minister said that deregulation is the main problem to accelerate economic growth. “The government, in fact, is a facilitator, not a regulator. There are number of examples that the private sectors are doing fine.”

Minister Mahat also appealed all to shun the tendency of accusation and said, “We should have objective towards fulfilment of our common goal.”

Commenting the World Bank’s Economic Update 2002, he expressed the importance of factual information and statistics for better result.

Earlier, World Bank Economist Ahamad Hashan, presenting his paper on “Nepal Development Forum: Economic Update –2002”, said since the last Nepal Development Forum in April 2000, Nepal’s economic growth has slowed down and medium term prospects were somewhat bleak. The effects of the global slowdown starting in the spring of 2001 worsened in the aftermath of the events of September 11, he said.

The development challenge Nepal is facing is formidable, but the ‘twin crises’ of the state of emergency and fiscal difficulties have also made reform imperative.

Sadiq Ahamad, chief economist of South Asia spoke about various factors influencing the Nepalese economy.

Commenting on the views of World Bank experts, Nepalese economists, planners and policy makers categorically pointed out the sectors the Economic Update –2002 has failed to mention. They noted that the WB paper had failed to stress the government’s poverty alleviation strategies. The facts in the paper vary from the national statistics, they noted. Prof Guna Nidhi Sharma pointed out that the paper should have been focused on Nepal’s priority. Anything that go beyond the interest of the country’s priority does not help anybody, he said.

Prof. Suresh Raj Sharma pointed out the need for developing quality human resource. MP Pashupati SJB Rana emphasised on the need of enhancing agriculture productivity.

Dr. Badri Prasad Shrestha, former vice chairman of the National Planning Commission said that WB paper has highlighted some positive aspects of the economy. It should have given the true economic picture of the country, he said. K.Ohashi of World Bank stressed the need for strong commitment for development.