Maoist, UML mend fences

CPN (Maoist) and Unified Marxist Leninist (UML) have agreed to give a "final shape" to the Army Integration Special Committee (AISC) at the earliest by persuading Nepali Congress (NC) to participate in it.

A meeting between the senior leaders of the two coalition partners at the Prime Minister's Residence in Baluwatar Sunday also reached an agreement to appoint former UML general secretary Madhav Kumar Nepal as the coordinator of the High Level Coordination Committee formed to advise the government on running its affairs.

Maoist leader Mohan Vaidya told a local radio station that there has also been agreement to immediately set up Land Reform Commission and State Restructuring Commission.

He said that there was discussion on kick starting the army integration at the earliest after giving a final shape to AISC.

There was also agreement to do away with the misunderstanding and animosity that exists between the two parties including the increase in clashes between the youth forces of the two parties, it has been learnt.

Chinese military delegation arrives in Kathmandu

A delegation of senior Chinese military officials led by its deputy chief arrived in Kathmandu, Saturday.

The delegation coming close on the heels of the visit by Chinese foreign minister Yang Jeichi will hold talks with Nepalese officials on military cooperation and security, say reports.

The officials of the two countries have described the visit as routine exchange. However, an agreement on military cooperation is likely during the visit.

The 10-member delegation is led by Lieutenant General Ma Xiaotian and includes four Major generals of the Chinese People's Liberation Army (PLA).

"An agreement could be signed about the military aid of Rs 100 million announced during (my) China visit," Defense Minister Ram Bahadur Thapa 'Badal' told Kantipur daily.

Earlier, during his visit to Nepal, Chinese FM Jeichi had promised China's support in strengthening Nepal's security.

"The government is there for name only. It is powerless to take decisions. It is powerless due to foreign imperial powers."

A senior Minister and a Maoist leader Dev Gurung has said that 'imperialists' are controlling the government.

Despite communists being in power, the government is dancing to the tunes of the imperialists, said Minister for Law, Justice and CA Affairs Dev Gurung.

Speaking in Lamjung, Friday, Gurung said, "The government is there for name only. It is powerless to take decisions. It is powerless due to foreign imperial powers."

He did not identify the foreign countries whom he accused of running the show.

"Everything is dictated by foreigners including petty matters like formulating laws," he said.

He accused that some parties were aiding the imperialists who he claimed wanted to disintegrate the country.

"We are still in the mentality of launching movement for the liberation of the country and its people," he added.

US ambassador calls on Prime Minister Prachanda

US ambassador to Nepal Nancy J. Powell called on Prime Minister Prachanda at latter's office in Singha Durbar on Thursday.

US ambassador is also known to have informed the Prime Minister about the cancellation of the Nepal visit of Richard Boucher, US Assistant Secretary of State for South and Central Asia.

Boucher, who would be the senior most US official to visit Nepal since the formation of Maoist-led government, was to arrive in Kathmandu next Tuesday.

Reports quoting sources at the Ministry of Foreign Affairs said the US embassy has informed them about the suspension of the visit, but no reason has been given.

China to provide Rs 1.2 billion aid this year

The visiting Chinese Foreign Minister Yang Jiechi signed an agreement to provide Rs 1.2 billion aid to Nepal this year.

Foreign Minister Upendra Yadav and his Chinese counterpart Jiechi Jiechi signed an understanding with Foreign Minister Upendra Yadav at Shital Niwas, Wednesday, agreeing to help Nepal in economic development efforts.

"The Chinese side has shown willingness to help in road development, bringing railway line up to Nepal border, increasing scholarship quota for Nepali students for education, encouraging Chinese tourists to visit Nepal and to provide necessary training and equipment to strengthen Nepal's security," Foreign Minister Yadav told reporters.

He said that Chinese government has agreed to provide Rs 1.2 billion aid to Nepal this year.

Yadav added that Chinese side also showed interest in the peace, prosperity and nation-building process in Nepal.The Chinese Foreign Minister made brief statement before the press saying that Chinese government will continue to give as much aid as possible to Nepal.

Developed countries should reorient their aid structure: Dr Bhattarai

Finance Minister Dr Baburam Bhattarai has appealed the developed countries to readjust the structure of their aid in order to promote self-sustained development of undeveloped countries, reports said.

While addressing the UN Conference on Development Financing in Doha, Qatar, Dr Bhattarai said,” Foreign assistance should be gravitated towards promoting production, in come and employment in a way that the will eventually result in a decline of the financial dependence of undeveloped countries on developed ones.”

Dr Bhattarai also asked the US and Europe to adopt concrete measures to shield the underdeveloped from the current global financial meltdown.

He also opined that the financial breakdown should be looked upon as an opportunity to create new world order which upholds the value of equality and justice.

The finance minister also made it a point to relate that the Maoist-led government has attached topmost priority to the economic growth of Nepal with social justice.

Political Economy Research our sister site says The "Washington Consensus" - stabilise, privatise and liberalise - is dead. Long live the new pragmatism. That is the message of "the growth report" released in May 2008 by the commission on growth and development chaired by the Nobel laureate, Michael Spence.

No single recipe will secure sustained and rapid economic growth in poor countries, it argues. Governments have to choose from a variety of ingredients. Yet only governments can do so. They "are sometimes clumsy and sometimes errant", but "active, pragmatic governments" are indispensable.

This pragmatism is one of the two principal contributions of this report. The other is its focus on growth itself. This is not to suggest that growth alone matters. But without it sustained improvements in human welfare are impossible: one cannot redistribute nothing. The report forces us to refocus attention on this overriding goal.

The great majority of the commission's members are policymakers from developing countries. Naturally, they are interested in learning from the few countries (13, in fact) that have managed growth of 7 per cent a year, or more, for at least 25 years. They have come to two broad conclusions: first, fast and sustained growth "requires a long-term commitment by a country's political leaders"; second, it depends on sustained engagement with the global economy, as a source of both knowledge and demand.

Beyond this, the report identifies a number of ingredients in the growth pie. No country, it notes, has sustained rapid growth without high rates of public investment in infrastructure, education and health. Furthermore, growth means profound structural change. Policy must allow this to happen, while doing what it can to protect people.

The commission also emphasises that "growth strategies cannot succeed without a commitment to equality of opportunity" and action against extreme inequality of outcomes. Meanwhile, the inclination to leave the environment aside at the early stages is a huge mistake.

(Source: Gang of 8)

Political Economy Research says it is time for the people of the world to demand socialise, especially for utilities like water, equalise as growth just for the rich does not help the poor, and democratise has self interested comprador elites have usurped the political process.

So let Socialise, Equalise, Democratise and bury Stabilise,Privatise and Liberalise the theology of the last third of the 20th Century.

Finance Minister Bhattarai urges World Bank to be more flexible towards Nepal

Finance Minister Dr Baburam Bhattarai has on Sunday urged the World Bank (WB) to exhibit flexibility while framing its country assistance strategy (CAS) for Nepal.

According to reports, Dr Bhattarai made the appeal to this effect during his talks with the WBʼs Senior Vice President Justin Lin on the sidelines of the UN Conference on Development Financing, which kicked off in Doha, Qatar on November 29

He also asked Lin to scale up budgetary support to Nepal for effectively eradicating poverty, reducing inequality and integrating peace into development.

On the other hand, Lin advised Dr Bhattarai to be more focused on creating an amenable industrial environment in order to expedite growth of the agricultural sector, attract foreign direct investment and spur public private partnership.

Lin also expressed commitment that the WB will continue to reinforce the socio-economic endeavours of Nepal.

Heads of state or government, ministers and representatives from the civil society and the business community are attending the four-day conference which is gravitated towards mobilization of domestic and internal resources for development.

Chinese assistance to Nepal increased

Source : TGW

The government of China has increased its annual grant assistance to Nepal from 88 million of Nepali currency to 1 billion.

Sources at the Ministry of Foreign Affairs have it that during the forthcoming visit of the Chinese Foreign Minister to Nepal, an agreement would be signed between the two sides agreeing to increase the said assistance.

The Chinese Foreign Minister Mr. Yang Jiechi is arriving Nepal on December 2, 2008 at the invitation of Nepal’s Foreign Minister Upendra Yadav.

Reports add, “The grant assistance will be spent on various Chinese funded development projects in Nepal”.

“It is also expected that the Nepali side will raise the issue of Chinese soft-loan or financial assistance for the Upper Trishuli Hydro Electric Project”, reports conclude

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Maoists determined to establish people’s republic: Mahara

Minister for Information and Communications Krishna Bahadur Mahara on Thursday said that his party is firmly determined to propel the country towards the path of people’s republic.

Minister for Information and Communication Krishna Bahadur Mahara
According to media reports, Mahara, who is also a senior leader of the CPN (Maoist), made the remark while talking to journalists at a programme held in Pokhara.

He further stated, “The recent decision of our national-level cadres’ meet to adopt ‘People’s Federal Democratic National Republic’ is based on the strategic appraisal of the country’s prevailing realities.”

He, however, was quick to add that the Maoists are not against the notion of competitive politics. “But, we, in no way, will succumb to the parliamentary system,” Mahara further remarked.

Mahara also disclosed that efforts are being made to incorporate the Nepali Congress, the main opposition, in a special committee for army integration