INTERVIEW with OSAMU UNO, Vice-Minister for Foreign Affairs of Japan

Our support is for democracy and stability

Osamu UNO, 61, Vice-Minister for Foreign Affairs of Japan, was in Nepal on a three-day official visit. Son of the late Sosuke UNO, former Prime Minister of Japan, Osamu was once the executive secretary to his father when he was Prime Minister of Japan.  A second time member of the House of Representatives from the Liberal Democratic Party (LDP) of Japan, UNO, is also the director of the Committee on Environment and member of the Special Committee on Prevention of International Terrorism and Japan's Cooperation and Support for Humanitarian Assistance for Reconstruction in Iraq.

During his three-day busy schedule, he called on the leaders of main political parties and signed agreements with the government, among others, on improving the Kathmandu-Bhaktapur road which will be funded by Japan. Before his departure, UNO took out time, on Thursday evening, to speak with Puran P Bista and Kamal Raj Sigdel of The Kathmandu Post on issues concerning Nepal-Japan relations, economic cooperation, and its future policy on changed Nepali context. UNO, who is hopeful about the political development taking place in Nepal, says the future activities of the Maoists will decide whether Japan will continue its support to a Maoist-led government. 

Excerpts:

 

Q: What is the purpose of your visit?

UNO: I have come here as a representative of the Japanese government to congratulate the government of Nepal. The first achievement of Nepal is that it has successfully held the Constituent Assembly elections. And the next one is that a new government is soon going to be formed.

Besides, the next important purpose of my visit is to convey a message that the Japanese support will continue even after the new government is formed.

Today (Friday) afternoon we had an agreement. The government of Japan is supporting Nepal to construct a four-lane road from Kathmandu to Bhaktapur. This would be the first gift of the government of Japan to Nepal after the formation of a new government.

In the first two days of my visit to Nepal, I have met many political leaders, and in each meeting, I have stressed only one thing that Nepal needs stability and a sustainable peace. I have heard that a new president and vice-president would be soon elected. I wish that to happen as early as possible and hope Nepal will soon establish a sustainable peace and stability. This is what I conveyed to Nepali leaders in my meetings.

 

Q: You have spoken of continuing support to Nepal. Does that mean Japan will continue its support even if the Maoists form the next government?

UNO: I believe the new government will be formed following due democratic processes and by the democratically elected CA representatives. Japan will accept the government which is formed democratically by the people's representatives elected through free and fair elections. I have been repeating this in all the meetings with the Nepali leaders that the constitution is such a thing which should be very democratic and even after the formation of new government we need to move ahead democratically. And all should make a collective effort toward that.

 

Q: This means you are satisfied with the Maoist performance. How do you assess the human rights records of the Maoists?

UNO: The problems associated with the Maoists are Nepal's domestic issues. Japan as an external force has no intention to interfere on that. In the future, I hope the Maoists change gradually and embrace democratic values.

 

Q: Does that mean if Japan is not convinced, or if the Maoists don't change, Japanese support to Nepal will be discontinued?

UNO: I cannot say that now without seeing what is going to happen in the days to come. But now, I am returning with a hope that the Maoists will change.

 

Q: Nepal-Japan relations have been very cordial and long one. Until recently both were kingdoms. And the bilateral relations at the level of royal families of both the countries were something very special. How do you assess Nepal's decision to go republic?

UNO: Until Nepal was a kingdom, Nepal-Japan relations were really strong. But after the 2001 royal massacre, a change is discernible on Nepali people's perception about the palace. In the past 5 or 6 years, Nepalis witnessed historic changes. In April 2008, the Nepali people themselves held the historic CA election, which was a big success. Nepal has been moving ahead democratically, and there are people's representatives, so we would like to respect the process.

 

Q: How will Japan support Nepal in the post-conflict days?

Uno: It is not that Japan could say it would support for this or that. After the formation of a new government based on what sorts of demand it makes, Japan will see and decide. The objective of Japan's international economic support is not just to continue it. Its objective is to make the reviving countries self-reliant. This should not be forgotten. For example, Japan's ODA is also directed toward that objective … toward how Nepal's economy can improve.

For instance, with the Japanese support the Kathmandu-Bhaktapur road will be upgraded to a four-lane highway from the current two-double road. This will help people transport products to Kathmandu easily. After the construction of the wider road, the people will not have to face any traffic jam; they could also save fuel and time. This will certainly help develop the economy and benefit the areas.

Q: Nepal and Japan are working on a deal to send industrial trainees to Japan. What progress has been made so far?

UNO: Nepal requested Japan to take in Nepalis as industrial trainees for vocational training in Japan. As one of the well-wishers of this country, Japan also accepted that. The objective is to help capacitate Nepalis who would return to Nepal after completing their vocational training in Japan. Japan has no policy to use these trainees as manpower there. This is also a kind of support to a developing country like Nepal.

 

Q: When will this start?

UNO: Today afternoon we heard that the FNCCI interviewed six women to send them as trainees to textile industries in Japan. So this has already started.

 

Q: Was there no such training in the past?

Uno: No, this one is the first of its kind.

 

Q: Will Japan be able to give trade preference to Nepal? If so, what sorts of items will Nepal export to Japan?

UNO: Japan has not thought about any quota for now. Neither has it decided which product to import from Nepal. You too might have heard about the campaign called "one village one product". But this is also misunderstood. People think that this "one village one product" project is to export products directly to Japan. That is not true. The objective of the project is to exchange products in local markets and help boost the local economy. There is a need for promoting this "one village one product" concept in Nepal at the beginning. Then only can we think of exporting the products in foreign courtiers. This is a suitable campaign for Nepal. So what we suggest is, Nepal should first promote the product in domestic market and then in the international market. That will be better. In the future if this goes on flourishing, we will think of even bigger projects similar to this but it depends also on Nepal and on how it presents itself to Japan.

 

Q: How can Nepal attract FDI from Japan? What type of policy Nepal should take to attract Japanese investors?

Uno: When it comes to trade relations, what is important is peace and stability. Without this nothing can progress. And provided this is achieved, if Nepal likes to develop trade relations with Japan, it has to produce the quality that Japan likes. What is the level or quality of products produced in Japan? Nepal should also try to reach that level and if such things are taken into consideration, Nepal-Japan trade relations could flourish. It is not that Nepal can send anything and Japan accepts them without any hesitation.

 

Q: I mean Nepal has a huge potential for foreign investors. Japanese investors could be interested in investing in different potential sectors, for instance in hydropower, in Nepal. So what could Nepal do to capitalize on this potential?

UNO: Of course, Nepal is rich in water resources. But now there is no such environment to deicide on this because the new government is yet to be formed. Who will look after water resources sector? Once these things are decided, it could be easier to say something on this. But for that, first the government should be stable.

In my meeting with the prime minister also the issue of hydropower dam was raised. But constructing dam for hydropower projects is a very costly business, which is not possible with grant support alone. Loan is an alternative but it is difficult because Nepal will have to return it. So now I cannot say anything about this.

Regarding suggestions on FDI, Japan can never say what you need to do regarding foreign policy. The past experiences show that Japan itself sees the attraction in certain country and goes there to invest. And there are also some examples where the government of the host countries make an appeal to the Japanese government and the Japanese investors may be attracted. So once it is stable and peace is institutionalized, Nepal can send its trade- related people to Japan to show the possibilities and potentials and attract investors.

 

Q: Japan has been world's best producer of renewable energy technologies (RETs). How could Nepal move for technology transfer in the renewable energy sector? There have been some activities in this sector through JICA (Japan International Cooperation Agency), but this seems to be limited to some small-scale projects. Do you see any possibility for any large-scale programs in the energy sector? 

UNO: JICA has both big and small grants in operation. In small grants, JICA is supporting solar panels, micro hydro and other renewable technologies at the local areas. We can also build large-scale renewable energy projects, for instance a big solar energy plant, which could supply power to a large area like Kathmandu. But that demands big investments, which may not meet the criteria of the JICA. Such projects could be done through loan. But when it comes to loan, it will be a problem for Nepal. [July 21, 2008, TKP]

INTERVIEW with French Ambassador to Nepal

'Nepal needs real and deep devolution of powers'

 

We have French ambassador Gilles-Henri Garault as our guest for this week's interview. A few days before Bastille Day, the national day of France which is celebrated on July 14, Puran P Bista and Kamal Raj Sigdel of The Kathmandu Post caught up with him to discuss Nepal-France relations in the changed political context.

Garault, who was special advisor to the French Minister for Foreign Affairs before assuming the current post, is a PhD in history and archaeology. He has served as second counsellor at the French Embassy in Madrid, as counsellor at the cabinet of the speaker of the National Assembly looking after European and international affairs, as deputy director at the Department for Economic and Financial Affairs of the Ministry of Foreign Affairs, special counsellor of the Minister for Civil Service, State Reforms and Territorial Planning and as head of the cabinet of the State Minister for State Reforms. Garault was also an associate professor at the Institute for Political Studies of Paris.

As a diplomat who has also written several books on economics, international relations and history, Garault says Nepal can attract French investment and joint ventures in different potential areas such as hydropower, agro businesses and even waste management. Excerpts:

 

Q: How have Nepal-France relations evolved?

Garault: We have very good relations with Nepal. We have had permanent relations with this country since 1949. We had the first diplomatic mission in 1933. In fact, we are the second country after the United Kingdom to set up diplomatic relations with Nepal.

If you ask about the relations from a political point of view, our relations have been of very low intensity during the last 10 years. We didn't have contacts with very high level people here because of the decade-long Maoist insurgency, the massacre and so forth.

 

Q: In what areas were Nepal-France relations concentrated in the past?

Garault: In the past, that is in the 1960s, we helped the Nepal Army in training. We also provided them with some French helicopters and other vehicles. But after the 2001 royal massacre, nobody understands what is happening; it is like a black hole. So now we are trying to understand; we are trying to improve relations. But if you ask me if we have some very important strategic and geopolitical interest in Nepal, the answer is NO. We don't. We are not Chinese; we are not Indians. We are not British. We have fruitful relations but of low intensity.

 

Q: Will there be any change in France's approach once the Maoists form the government?

Garault: I think there will be no special approach, no real change towards the new government to be formed or led by the Maoists. Maoism is not a disability, it's a political current which won the last CA elections quite free and fair. France respects the choice of the Nepali people. Now the Maoists have to show their political will and competency to improve the condition of Nepal's people, and to handle the government. But why shouldn't they be able to lead and govern this country? I think the CPN (Maoist) is a very structured party and have competent leaders and cadres. France is quite confident, and we will see the concrete results of the new government.

 

Q: What is your analysis of Nepal's underdevelopment? What do you think are the key factors affecting the country's development?

Garault: It is a very interesting question, but difficult to answer in brief. Nepal is suffering from certain handicaps, which explain its poor economic performance. I think the most important factor is the poor level of education and training connected with the demographic issue. The manpower is not skilled enough. The literacy rate is still lower than 50 percent. It is a big challenge if you consider the fast growing population. It also explains why it is so difficult to provide jobs to the 300,000 newcomers arriving each year on the labor market. There is also a problem of rural exodus from the countryside to urban areas due to lack of job opportunities, which finaly gathers jobless people in congested areas. This situation led more than one million Nepalis to leave for other countries in search of jobs.

The second prominent factor is the geographical situation of Nepal, a landlocked country enclosed between two growing giants, China and India. The 10 years of civil war had also a great effect, but I think Nepal can easily and successfully face this situation as Cambodia has done in the last few years.

Lastly, Nepal's underdevelopment is also a result of its competitive positioning. Industries are insufficient and not competitive enough. Poor industries are lowering the progress of Nepal in the international stage. Firms suffer from a serious lack of infrastructure and power. On top of that, they depend on imports for nearly all the raw materials and, above all, petrol. That's why you note this increasing trade gap.

Concerning agriculture, this sector still depends on the weather, which is becoming more and more unstable in the context of global warming. The fragility of agriculture goes along with the inefficiency of agricultural methods and infrastructure leading the sector to absorb 80 percent of the workers while producing only 33 percent of the GDP. Land reform organized in partnership with competent organizations and structured around educational programs could be set up. Also, with reinforced structures of maintaining stocks, Nepal could anticipate and handle more efficiently any food crisis.

 

Q: You have been heading the European Commission in Nepal. How is the EU thinking of carrying out its activities in Nepal in the changing context? What role will it play in Nepal's post-conflict transition?

Garault: I think the changing context of Nepal will not induce the EU to change deeply its strategy in Nepal. Last year, the EU adopted a new country strategy for Nepal for the period 2007-13 with a budget of 120 million euros (US$ 190 million). The priorities are known: education, stability and peace building, trade facilitation and economic capacity building. The action of the EU fits into this framework. Education is certainly the first priority in Nepal. That is why it will account for 60 percent of the allocation. We must improve enrolment, quality and access to education, especially for girls, the poor and minorities.

Concerning the EU's role in the post-conflict transition of Nepal, we have already incorporated all the issues of the post-conflict environment. The EU monitoring mission for the election to the CA, consisting of more than 100 people, was a significant sign of our support for stability and peace building in Nepal. The EU will continue to support the current peace process, political dialogue, social challenges and drastic changes in the political situation. Nepal is undergoing deep political and constitutional changes. The country has conducted the elections successfully, and a new republic has been proclaimed. The peace agreement is on the right track, and the EU will remain the first partner of Nepal. We are confident in the future of this country.   

But the EU's main priority in Nepal is reducing poverty (Nepal is still the poorest country in Asia) by promoting sustainable development and economic growth.

 

Q: Some political parties, for instance the Maoists, are speaking of the French model of federal government. What would that mean in Nepal's context? Would it be a suitable model for us too?

Garault: We heard, indeed, about this interest in the French constitutional model and our political system. And we are happy to know that. But let me give some more details about the French model. It is anything except a federal government. France has been a centralized state for almost 1,500 years. During the last 25 years, we have made several important constitutional changes in order to promote local powers. Now the three levels of local government – municipalities, districts and regions – have been entrusted with important responsibilities like local development, social policy, transport and infrastructure.

But we are still far from a federal model. There is no real autonomy. Our model is, therefore, different from the full-fledged federal systems found in Germany, India and the United States. Constitutional changes were made for the devolution of power. We have a strong central government with a mixed system: presidential, with a president directly elected by the people and assuming real powers; parliamentary, with a national assembly elected by the people, and a prime minister accountable to parliament but, at the same time, politically responsible to the president. This system is quite unique and has promoted, during the last 50 years, political stability and efficiency of the executive.

I don't now if this model is suitable for Nepal. But I am sure that Nepal needs, above all, real and deep devolution of powers, giving more efficiency to the local authorities. The debate on autonomy is just a political and ideological issue. After 250 years of strong centralization, this country needs a strong, efficient and permanent presence of the administration and the state at the local level. France will continue to stand with Nepal in unity and solidarity. They are the main guarantees of progress for Nepal and are very important values.

 

Q: Why is France directing most of its support to Francophone countries instead of underdeveloped countries like Nepal which were not former French colonies? 

Garault: We assumed this choice. As you know, France is one of the top donors in the world, giving out around 9 billion euros (US$ 14 billion) representing 0.45 percent of our GDP in aid. Bilateral aid accounts for 70 percent of our Pubic Aid to Development, and 30 percent goes through European and multilateral channels. Concerning bilateral aid, France has made the choice to concentrate financial assistance to a limited number of countries. The SPZ (Special Priority Zone) includes 55 Least Developed Countries, 43 of which are African. France allocates 70 percent of its bilateral aid to Africa and an additional 12 percent to the Middle East. Only four Asian countries, all former French territories, belong to the SPZ.

Asia gets only 8 percent of French bilateral aid given to Developing Countries. We are thinking enlarging the concentration of our bilateral aid. We don't believe in the efficiency of scattering aid that leads to sprinkling of resources. That is why in 2007 the EU adopted a code of conduct in order to target certain countries and to share the efforts. France is, therefore, targeting more countries in Africa than elsewhere.

However, France is one of the big donors in Nepal. In terms of the EU countries, France is the second biggest benefactor after Germany. Out of every million euros spent by the EU in Nepal, 200,000 euros are given by France.

 

Q: What could be the areas of interest for prospective French investors in Nepal?

Garault: We are arranging a business trip for French companies next October. It was postponed due to the unfavorable political situation in Nepal. We have planned to hold it at the end of July. This could hopefully be a fruitful trip to draw the interest of French investors to Nepal.

We think there are some possibilities for investment in hydropower. This is our first priority in Nepal. We could make a huge investment in Nepal the way we did in Laos and some other countries. In Laos, we have constructed a 1500 MW hydel project, twice as big as the Seti project. We made turbine engines for the Three Gorges dam in China. We have the world's largest electric companies. So it is relatively huge. For instance, France generates 25 percent of Europe's entire electricity supply. We are also thinking of investing in the Himalaya with local partners and buyers.

We are also interested in aeronautics. We sent three small aircraft to Buddha Air. We may have an interest in waste management in Kathmandu.

 

Q: If the government shows an interest in waste management, will French companies come over here?

Garault: We have the best companies in waste management. Some of them are doing waste management in Shanghai and other big Chinese cities. So for us, waste management in Kathmandu is nothing. But the main problem for us is who is going to be our partner? Kathmandu Metropolitan City [KMC] doesn't even exist.

 

Q: Have you had any discussions about this?

Garault: I don't have any information about that. We are preparing a report on garbage management in Kathmandu. We will send that to French companies who are involved in waste management. Maybe one of them will be interested.

But we have a lot of problems here. We have problems of garbage storage and we have a lot of strikes. So we have to change the system completely. Waste management in Kathmandu has been a complete failure. Some tourists I have met say, "Oh my God, how is it possible?"

We are also interested in agro business because we have the most modern agro-based companies, particularly in terms of modernized markets, storage, commercialization and the like.

If you talk of export, Nepal's competitive position is not good. Its exports have been limited to pashmina and handicraft. Nepal must find new products. Items like coffee, tea, medicinal herbs, herbs for perfumes and the like could be the new products to export from Nepal.

Interview with Dr Bhagawan Koirala

'We don't turn away patients because they don't have money'

This week's guest for our Monday Interview is Dr Bhagwan Koirala, 45, executive director and senior consultant cardiac surgeon at Shahid Ganga Lal National Heart Center. He is an acclaimed heart surgeon well known in all South Asia. An MD from Kharkov Medical Institute, Ukraine, Dr Koirala played a key role in bringing the Heart Center to its present enviable position. The hospital has 150 beds and is equipped with all modern technologies to perform major heart operations. It has also been providing free and affordable heart care services, which are otherwise very expensive, to an ever increasing number of poor and deserving patients. In the last year alone, his team at the hospital saw more than 70,000 outpatients, did 1,200 cardiovascular operations and 2,500 cath procedures. There were more than 5,000 in-patient admissions.

 

Dr Koirala spoke to Kamal Raj Sigdel of The Kathmandu Post on different issues ranging from the hospital's welfare schemes to the future of Nepal's public health care system. Excerpts:

 

Q: Where do you see Nepal's public health care system in the next 10 years?

Dr Koirala: There are a number of possible scenarios. It will largely depend on how politics evolves. It seems that social welfare is going to be strengthened. Many state-sponsored health care delivery systems will be established, and similar other social welfare programs launched. In the health sector, I believe that we will have more free access to health care for poor people. There will be some sort of health insurance policy implemented in the next 10 years.

 

Q: What progress will we see in the treatment of heart disease, particularly at this hospital?

Dr Koirala: Progress in this particular field is an evolutionary progress. We now have all the basic infrastructure providing cardiac care in this country. Obviously, it is not enough. We have to improve the quality of service, and we have to expand into different geographical areas of the country, and we also have to go for research and do more training and teaching programs. And I think that is what is going to happen in the next five to 10 years in this institute.

 

Q: What sort of welfare schemes does this hospital offer to poor patients?

Dr Koirala: The government demonstrated appropriate responsibility by supporting this institute to provide free cardiac care to poor children below 15 years of age. This has been in place for the last two years. It has been a highly successful and satisfying program. We've given service to hundreds, if not thousands, of poor children under this scheme. We have also started giving free cardiac treatment to senior citizens over 75 years of age. And we have a rule to provide over 100 free valves to poor patients annually.

 

Q: How do you identify poor and deserving patients? I mean, how transparent is the process of selecting patients for these free services?

Dr Koirala: There is a transparent mechanism for selecting them. There are criteria for selection. There is a committee to look into it. They recommend the names to me. Obviously, the doctors make the initial recommendation, but then there is an administrative mechanism to screen the potential beneficiaries. The selection cannot be done personally, it's all formal applications, formal selection process, formal approval, and it's notified publicly. In general, I have been very satisfied with the selection process.

 

Q: What are you doing to expand these free services?

Dr Koirala: Besides the aforesaid three major welfare schemes, we also provide free patient care for those who cannot pay. For example, 20 percent of the hospital beds have been declared free for poor people. All the costs, including hospital fees and lab services except medicines, are free for patients occupying these beds. Apart from this, the hospital has been making other efforts. And there are groups who raise money for donating to this institute for patients like these because they trust us. A group of 180 managers have each been collecting Rs 1,000 every month for the hospital.

 

Q: Who are they?

Dr Koirala: They are managers and executives of different levels. They volunteered after they saw what we were doing. They call themselves "Sahayog Group".

Q: Are they part of the hospital's mechanism to raise funds?

Dr Koirala: No. They are a group of people who have volunteered to help our patients. We call them whenever some patient is stuck without enough money. There are also other groups who sometimes come to help.

 

Q: What is the trend of patients coming to this hospital for treatment? Do you accept all of them?

Dr Koirala: We do. When we started these welfare schemes, the number of patients, particularly children, coming to us rose suddenly. This is good news. The people know that there is a state system to help them. The number of patients coming from the far west, remote areas and Madhes and Dalit groups rose manifold. And this category constitutes about two-thirds of the beneficiaries who receive this subsidy. That is a great help.

 

Q: Are you handling all these patients?

Dr Koirala: We are struggling to provide services to all those who come to us. We don't want to turn away anybody because of patient volume or money.

 

Q: Have there been cases of patients being turned away for technical reasons or due to lack of certain machines, for instance?

Dr Koirala: No, we don't turn away any patient for such reasons. Also, we don't refuse treatment to patients just because they don't have money. We try to find resources for them.

 

Q: So you have all kinds of facilities to deal with all sorts of heart diseases?

Dr Koirala: We have facilities to deal with most heart diseases. I cannot say "all of them" because that does not happen anywhere in the world. Some American centers do close to all, but not all of them. Most of them do little less than that. Japanese hospitals provide most kinds of services, but not some operations which are done in America. So that is a very relative term.

 

Q: Do you think the quality of this hospital matches international standards?

Dr Koirala: We have to define what we mean by international standards. By and large, we provide most of the services at par with most regional centers. We cannot match the best centers of the world. But we have to look at the regional standard, the South Asian standard rather than American standards. 

 

Q: Of late, private operators have been entering the hospital sector. How do you analyze this?

Dr Koirala: Private institutions are important for health care delivery. But there are many issues which need to be dealt with first. They are about the practice of allowing [medical] institutions [to operate] without an accreditation system, quality control, declaration of their social responsibility and constant monitoring. And obviously, there is a huge problem with the substandard quality of training provided at private institutions. These are serious issues the government has to look into.

 

Q: Do you think there is a need for policy reform in the health sector?

Dr Koirala: That is what we are talking about. There are lots of things which I would rather say to policymakers face-to-face than letting them hear it through the media. But I would like to speak at least one sentence here publicly. I have strong opinions about rationalizing the establishment of new academic institutions. They are big institutions, and that needs to be justified by local needs and the needs of the inhabitants rather than business people's needs or professionals' needs.

 

Q: There are some new ideas that the health sector could be developed as an export-oriented sector where Nepal could have comparative advantages.

Dr Koirala: It is happening by default. It was not planned like it was in Bangladesh, for example, where the government planned to produce more doctors with the intention of exporting them. Medical professionals were not created in Nepal with that goal. There is a huge exodus of medical professionals to foreign countries. Not just doctors, large numbers of nurses are going abroad too.

 

Q: I don't mean exporting health professionals but developing health tourism and the like.

Dr Koirala: That is the key. That would be a good business for us. There is a lot of talk about it now. Americans are spending billions of dollars on medical care abroad. Why can't we get a share of that market? We could if we had good medical services. But it's not just about one thing. The security situation has to improve, and the political situation has to settle down. Then there is the problem of adequate air connections. If we can build good institutions, which is possible, I see a lot of our people coming back over the next five or 10 years. Right now they say that they have no place to work here. Our challenge is to create an environment where they can work. Another thing is that if we can provide services of standard quality and have good networking internationally, we can attract many medical care seekers as they are doing in Thailand, India, Singapore and Malaysia.

 

Q: Health insurance is not very well organized here. Who do you think should do it? Should this be left to the private sector alone?

Dr Koirala: There should be involvement of both the government and the private sector. The state could run health insurance programs for marginalized and poor people. They could have non-governmental organizations organize insurance schemes in which the government pays the premium for the poor.

The private sector is not doing it because they fear that they will suffer massive losses. I agree with them for two reasons. Health care has not reached a level where insurance companies can promise their clients a full range of services. People will pay only if they can get assurances that they will get all the services. Second, there are many cases of malpractice in which patients and medical professionals have been involved. They falsified documents, wrote wrong prescriptions and forged bills. These malpractices have to be stopped.

And we are yet to develop a culture of health insurance. You have to start paying now if you want to secure your health in your old age. At this point in time, there has to be a combination of government and private sector initiatives. (TKP, July 6, 2008)

 

INTERVIEW with Dinesh Bhandari

'More vehicles mean more money for politicians'

Dinesh Bhandari, president of the Federation of Nepal National Transport Entrepreneurs (FNNTE) has been in the transport business for the past 30 years. He has brought three different transport organizations under a single umbrella to provide better services to the public. He claims that federalization of transport entrepreneurs' organizations has improved bus services and prevented operators from being affiliated to any political party.

Bhandari has been pressuring the government to fulfill the demand of the FNNTE to raise fares by up to 35 percent. Bhandari spoke with Puran P Bista and Kamal Raj Sigdel of the Post on the ongoing bus strike that has crippled public transport for the past several days.

Excerpts:

 

 Q: How do you justify the demand for the fare hike? Is it necessary to call a strike to press your case?

Dinesh Bhandari: Let me clarify certain things. A hike in fares was long overdue. Like the latest 25 percent increase in the tariff announced by the government, past increases in the bus fare did not match the growth in oil prices. In 2005, the government raised the fare without the consent of the FNNTE.

When Bharat Mohan Adhikari was finance minister, the government, passengers and transport entrepreneurs had reached an agreement. He had told us we could raise the fare as we saw fit. Our present charges are less than what was agreed with the government and the consumers' organization then. The fares should have been hiked by 20 percent, but it has not happened. The government knows that well, and we are raising the bus fare to meet the cost of operation.

The government agreed to raise the fares of buses plying between the airport and the city by 40 percent. It was not applicable to other buses. Now rumors are afoot that the bus syndicate has seized the power to hike bus fares at will. This is not true. We are calling for a fare hike as per the agreement reached with the previous government.

Since 1999, petroleum prices have doubled; but we have not raised the fare by 100 percent. It is our right to raise the fare by 20 percent in addition to the 25 percent agreed upon earlier. So our demand is that the fare should go up by 45 percent. But we are willing to settle for a 35 percent increase.

Q: Do you agree that market should determine the fares instead of the FNNTE?

  Bhandari: Let us look at other aspects as well. The price of lubricants has gone up by 75 percent. The price of spare parts has shot up by 100 percent. How would it be possible to operate our buses by letting the market fix the ticket prices? Did the government think over these aspects before raising the fare? There are laborers who are underpaid. Students vandalize private vehicles. If we stop bus services in protest, the federation is blamed.

The buses plying on the roads are owned by private parties. The government has not been able to provide bus services to the public. The passengers must understand that and allow the private companies to operate bus services continuously. The buses are owned by more than one person. We have to respect the right of the owners and allow the buses to ply their routes.

Jyoti Bania and others had agreed to raise the fare, but later they changed their stance. These people are affiliated to different political parties. So they change their track according to what their party says, and that has harmed bus services. The government talks of competition, but it cannot provide bus services to the public. Private parties have invested big money, but the government keeps repeating the same thing – competition.

Q: But the syndicate of private bus owners has crippled services.

Bhandari: That is not correct. We have been functioning as per government rules and regulations. Otherwise, why would we have asked the government to raise the bus fare? We could have done it on our own.

What we have been doing is trying to reform the country's transport system. We want to phase out vehicles that are more than 15 years old. Why should obsolete vehicles that pollute and cannot provide good service be allowed on the roads? It takes hours to travel two kilometers in the city due to traffic congestion. Why don't we remove the tempos from the capital city to lighten the traffic? The government does not realize these things because the party leaders do not want to realize the mistakes.

Finally, most vehicles ply profitable routes only. Nobody wants to go to remote places. But the federation has been providing transport services even in the remote hills. Have we been only making money or also providing services?

Q: The permit system could have forced vehicle owners to go to the remote hills because a city permit costs a lost of money.

Bhandari: There are more vehicles than are necessary. The government is allowing in anybody. You just stop importing vehicles for five years, and let us phase out the old ones. The more vehicles there are on the roads, the more money you have to pay for lucrative routes. And the length of the roads has not increased in the past one decade. The government has no vision at all. It has made a mess of every sector. Now it is talking about building a new Nepal.

More vehicles mean more revenue for the government and more money for politicians. That's why there is such disorder in the transport system.

Q: How do politicians make money?

Bhandari: Motor vehicle dealers approach politicians and propose to import a certain number of them. The dealer makes millions of rupees. Part of the profits goes into the pockets of political leaders.  The government did not raise the price of kerosene along with the price of diesel. Why? Because petroleum dealers can sell adulterated diesel and politicians can also get a share of the earnings. There are several examples of how the connection between politicians and petroleum dealers and politicians and vehicle dealers works to make money for all concerned.

Q: Why is it mandatory to obtain the federation's OK before a transport company can be registered?

Bhandari: There are several reasons. One of them is the increasing number of transport companies and vehicles. As I said before, there has to be a system. In Narayani zone alone, there are 4,000 buses. Do you need more vehicles or a better and larger road network?

Q: How are you trying to bring down the rising number of bus accidents? 

Bhandari: Poor roads and lack of maintenance, old vehicles and ignorance of traffic rules are the main causes behind the frequent road accidents. Besides, bus drivers do not get their vehicles repaired and drink while driving. We can identify the problems and urge the government to enforce the regulations strictly. But we are not a regulating or law enforcing agency. How much funds does the government allocate for road maintenance? How many roads does the government repair every year? Has the government ever realized that poor road maintenance and old vehicles are responsible for killing innocent people?

Q: What do you say to student demands that they should get a 50 percent discount on bus fare?

Bhandari: We are ready to accept their demand on the condition that the discount is provided to not more than six passengers of a bus. How can buses give them a 50 percent discount when half of the seats are occupied by students? They must shun violence. They cannot dictate the terms as they have been doing.

INTERVIEW with Thakur Gaire

'They listen to you only when you burn tires'

Thakur Gaire is president of the ANFSU, a UML-affiliated student organization, which is leading the students' protest against the transport fare hike. Gaire has been involved in student politics for the last 20 years. The students are adamant that unless their demands, which include a 50 percent discount on transport fares, are fulfilled, they will not stop their agitation. Gaire spoke to Kamal Raj Sigdel of The Kathmandu Post about the protest program, their demands and a possible solution.

 

Excerpts of the interview:

 

Q: For the last two days, students have been staging fierce protests — burning tires, vandalizing government and private vehicles and disrupting the valley's traffic. Why this rage?

 

Thakur Gaire: We are protesting against the sudden hike in transport fares. Right after the government jacked up petro prices, transport entrepreneurs hiked transport fares unilaterally. This is not acceptable.

 

Q: What are your demands then?

 

Gaire: We have demanded a 50 percent discount for students. Earlier, we had agreed to a 33 percent discount, but that was rarely implemented as the transport entrepreneurs denied students that facility by creating a quota system. So we are also calling for scrapping the quota system, which means that all students with a valid ID should be provided the stated discount. Similarly, we have also asked for creating a system to deter the misuse of student ID cards as we have seen non-students exploiting the facility. We have submitted an eight-point demand including the above to the government.

 

Q: Do you think your demand for a 50 percent discount is justifiable? Can entrepreneurs afford that?

 

Gaire: Yes, that is justifiable because transport entrepreneurs are not going to lose anything. They will be exempted from government taxes in proportion to the discount they provide.

 

Q: How long will this go on? You must find a solution.

 

Gaire: The ANFSU has no intention of creating problems only; we have proposed a solution also.

 

Q: What will you do if your demands are not fulfilled? 

 

Gaire: We've planned a phase-wise protest program including a Nepal bandh. But I wish that we won't have to go to that extent. I don't think our demands will be rejected.

 

Q: What if they don't agree?

 

Gaire: We will not stop until our demands are met. But there are no demands which cannot be fulfilled. Some government officials had whispered to me that we should have asked for a 60 to 65 percent discount, and then bargained them down to 50 percent. But I don't like bargaining because it is a genuine demand. Besides, it's not a new one. The government should not hesitate to give us this facility.

 

Let me state clearly that my role in bringing the country to this stage is many times greater than any minister in the government today. Besides me personally, our organization also contributed much to making the April movement a success. But we have not asked for any ministerial positions or any personal benefits. We are doing this for the welfare of the students. The students were the ones who braved bullets, batons and tear gas to catapult these leaders to the ministerial posts they are enjoying today. So I don't think the government will dither over fulfilling the students' demands.

 

Q: But the students never tried to change their behavior. They seem to believe that they can do anything they like. Why do student unions like yours back them and provoke them to go wild?

 

Gaire: It is because the dictators of the past have irritated them and made them very aggressive. But let us also not forget that it is the same ministers and leaders who pat us on our backs for what we did while fighting against the monarchy. So they cannot vilify us today when the same students are protesting against the present government for their rights.

 

It is sad that a bad precedent has been set. Without burning tires and staging violent street protests, the government does not listen to anyone's demands.

 

Q: Do you justify the acts of vandalism committed by students, for example, the smashing up of the Chief Justice's car at Putali Sadak the other day?

 

Gaire: While I don't say that violence is good and also don't commend the students for wrecking the Chief Justice's car, I also don't criticize them because the Chief Justice should not have taken the road where he knew that ANFSU students were holding a demonstration.

 

Q: Are there other students' unions in this protest?

 

Gaire: No, the ANFSU is the only organization doing the protesting. 

 

Q: Why are you not coordinating with other student unions?

 

Gaire: This is purely an ANFSU program. There is no environment for coordination because the Maoist-affiliated student union has been continuing with its atrocities, intimidation and criminal activities. You can read about their violent acts in the newspapers everyday.

 

The other day at RR Campus, Maoist-affiliated students beat up our friends over a minor reason. What is more disgusting is that when our injured friends were being treated at Model Hospital, Matrika Yadav arrived all of a sudden and misbehaved with them. He manhandled one of our members Sobhiet Dhakal. He even threatened to blow up the hospital. He was in a bad temper when he got there as he had come right after locking up the LDO in the toilet. So I don't see any environment for coordination. Even then, I am inviting them to join us.

 

Q: There are other more distressing issues facing the country today. The nation has been held hostage by political parties wrangling over power. Why are you keeping mum about all this?

 

Gaire: This is really a genuine concern. We agree that the leaders are wasting precious time because of their greed for power. Regarding this subject, we have presented our stand through our seven-point memorandum which includes our clear views on major items on the agenda. What we are saying is that we must have a common understanding on major issues, such as state restructuring, among the student groups at least. This will help us exert pressure on the parties.