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The Nepal Digest Wednesday 22 Feb 95: Falgun 10 2051 BkSm Volume 36 Issue 15
Today's Topics:
Apologies for no headers due to time constraints.
******************************************************************************
* TND Board of Staff *
* ------------------ *
* Editor/Co-ordinator: Rajpal J. Singh a10rjs1@mp.cs.niu.edu *
* SCN Liaison: Rajesh B. Shrestha rshresth@black.clarku.edu *
* Consultant Editor: Padam P. Sharma sharma@plains.nodak.edu *
* TND Archives: Sohan Panta k945184@atlas.kingston.ac.uk *
* Book Reviews Columns: Pratyoush R. Onta ponta@sas.upenn.edu *
* News Correspondent Rajendra P Shrestha rajendra@dartmouth.edu *
* *
* +++++ Food For Thought +++++ *
* *
* "If you don't stand up for something, you will fall for anything" -Dr. MLK *
* "Democracy perishes among the silent crowd" - Sirdar Khalifa *
* *
******************************************************************************
*****************************************************************
Date: February 22, 1995
>From The Editor's Desk:
Dear TND Members:
Welcome to another issue of TND! Our thanks and goodbye to Ashutosh for
taking care of "Discussion Forum" while making TND a thought-provoking platform
to share issues concerning Nepal. TND wishes him good luck in his academic
pursuits. Welcome to our well-known Rajendra P. Shrestha as TND's News
Correspondent. We certainly won't miss worthy news anymore!
To make TND more informative and stimulating, we would like to
hear more views and see more articles from our Nepali women (didi-bahini)
counterpart on TND.
The Nepal Digest (TND) is looking for a volunteer to moderate
"Women's Forum" on TND, preferebly a Nepali woman. The informal
responsibilites will include collecting articles related to
uplifting of Nepali women and encouraging other Nepali women to
freely express their views on TND. The topics are boundry-less ranging
from redefining women's role to supporting fellow-women through various
means.
Please send a note to nepal-request@mp.cs.niu.edu or a10rjs1@mp.cs.niu.edu
with your interest and ideas. Please feel welcome to add your own suggestions
by all means.
Hoping to hear from you soon,
Rajapl J. Singh
Founding Editor/Co-ordinator
The Nepal Digest <nepal-request@mp.cs.niu.edu>
*************************************************************
From: Ashutosh Tiwari <tiwari@husc.harvard.edu>
Subject: An attempt at satire (fwd)
To: nepal@cs.niu.edu
What follows is a piece of satire, or so I hope, published in
Kathmandu's SPOTLIGHT weekly of February 25, 1994 -- about a year ago.
Background: At that time, Krishna Prasad Bhattarai had just lost
'the by-elections to UML's Bidya Bhandari in Kathmandu. And furious, the
"Supreme Leader", Ganesh Man Singh publicly charged that Bhattari had
lost due to the antarghatis (saboteurs within the party). Nepali press
had a field-day, coming up with various serious interpretations of that
word antarghati.
CAUTION: ANTARGHATISM AT WORK (AND PLAY)
(Dedicated to Mimi, for her courage and warmth)
Pure and simple, Bhattarai lost the by-elections because of
antarghatis. So charged Ganesh Man -- showing off his Sanskrit to analyse
the results. How else could one explain the defeat of the former prime
minister? Hear, hear!!
And who's to disagree with the Supremeo -- the leader of all and
master of none? No one, to be sure; lest one be slapped with an antarghati
label for merely having a different opinion. For, as the Supremo
certainly knows, all the bad and unpleasant things in life have simple
and chantable one-word causes: The Ranas. The Panchayat. The Bahuns. The
Communists. And now the Anatarghatis.
But little does the Supreme Leader realize that anatarghatism is a
a finely-honed Nepali skill, a uniquely national talent indeed,
well-documented in this Shangri-La's myths, histories, politics and
development. Just check out the evidences:
In the days of the Mahabharat, that great Iliad-and-Odyssey-combined-
into-one-plus-more epic of the Hindus, Krishna, the God with 1600 wives,
was an antarghati par excellence against his cousins, the Kaurabs.
Krishna, ever on the sly, helped the Pandabs to destroy his elders --
Bhisma and Dronancharya.
And who can forget the Kyaikai's antarghat to put Bharat on the
throne of Ayodhya by sentencing Ram to a 14-year ban-baas? Once in the
jungle, Ram handily crushed both Bali and Ravan, thanks largely to their
antarghati brothers -- Sugrib and Bhivishan.
Medieval Nepal too had its own cast of wily antarghatis. Amsu Verma,
a shrewd Thakuri, usurped his Lordship from the Lichhavis, his in-laws.
Likewise, to be the King of Gorkha, Drabya Shah easily outran
his Ghalay competitors in Liglige by getting them drunk before the
all-Gorkha race.
Why, even the builder of the Modern Nepal, Prithivi
Narayan Shah, erected the heart of his House of Gorkhas with pukka Gorkhali
antarghatism, sometimes mistaken for pragmatism: Attacking the
Newars of Kathmandu on the bacchanalian night of Indra Jatra, he easily
lorded over the six Pradhans of Patan -- the greatest antarghatis in
Patan's history -- and Bhaktapur's Ranjit Malla, in whose palace he had
spent three happy years of his youth.
It was antarghatism that kept Shah's descendants busy with
politicking intrigues. Bhim Sen Thapa, the premier from whom our P.L. Singh
(Kathmandu's current Mayor) has inherited Dharalo and Sundhara, was a
victim to Rajendra Bikram's antarghat. Similarly, tearing away, among
others, the lushest bugiyals of Garhwal from the Nepali soil, that Sugauli
Sandhi still ranks as as THE example of the then bureaucrats' antarghat.
And we all know that Jang Bahadur -- that antarghati's antarghati --
assumed more power soon after staging an innocent meeting that ended with
opponents hacked to death.
Against such colorful historical backdrop, little wonder then that
today anatarghatism is blossming once more alongside Nepal's "infant
democracy". When concerned citizens demand, for example, to have a detailed
debate on Arun III, they can be denounced as antarghatis. Similarly, in the
face of "hamro apaar jal-sampada" -- a patriotic phrase that we have learnt
since Kindergarten -- the NEA basks in an antargti glow by charging us
one of the highest rates on the planet on per unit of
electricity. Yet, who's to stop te sputtering Vikram Tempos, those
smoke-belching rascals that are giving bronchitis to Kathmandu's
"yellow-plated" Pajero-driving Shahebs?
Amidst all this, it is perhaps fitting that Ganesh Man, our UN human
rights award winner, understood his friend Bhattarai's defeat by blaming
not a person -- but by tossing up the cliche of antarghati.
But voters beware: Now widely
used by all political parties, the phrase of antarghatism -- disguised
under the lofty rubric of leadership, sacrifice, democracy, human rights
actually goes like this: "We politicians can never do anything wrong.
If something screws up, it's somebody else's fault. And they are the true
antarghatis."
Yeah, yeah!!
written by ashu, with thanks to Keshab Poudel in Kathmandu for the idea.
*************************************************************************
Date: 19 Feb 95 20:06:38 EST
From: Rajendra.P.Shrestha@Dartmouth.EDU (Rajendra P. Shrestha)
Subject: News2/16-19
To: nepal@cs.niu.edu
February 16
Nepal Meets German Foreign and Aid Ministers
DPA report
The foreign minister of Nepal, Mahav Kumar Nepal, held talks in
Bonn Thursday with Germany's foreign and aid ministers as part of a
five-nation European tour to boost economic ties and aid for his
country.
A meeting with German Foreign Minister Klaus Kinkel concentrated
on the domestic political situation in Nepal, a Bonn foreign ministry
statement said.
Foreign Minister Nepal said the democratic reform process in his
country - begun in 1990 - was continuing with moves to improve human
rights and to liberalize the economy.
He said his government needed aid to help strengthen democracy,
and the constitution in Nepal.
Kinkel said Germany would continue its aid to Nepal and that Bonn
would support Kathmandu in its bid for a cooperation agreement with
the European Union (E.U.).
In talks with Germany's minister for economic cooperation and
development, Carl-Dieter Spranger, Nepal said Kathmandu remained
interested in German help for its planned Arun III power plant
project.
Spranger said Bonn needed more information from Kathmandu on the
project before a decision could be made regarding any German
participation.
"The establishment of market economic and democratic principles is
a basic precondition for successful development cooperation...," said
Spranger, in a statement after his meeting with Nepal.
Nepal is on a 12-day European tour, which includes meetings in
Belgium, Britain, France and Switzerland, as part of a bid to boost
his country's economic ties with Western Europe. dpa lm vc
Tribhuvan University Warns Student Protesters
UPI report
Tribhuvan University warned student protesters Thursday that the
administration ''will take stern action to restore the academic
atmosphere'' if the students do not end the forced closure of the
school. Student supporters of the opposition Nepali Congress party
have closed the university since Sunday and detained university
Vice-chancellor Kamal Joshi in his office. The students have refused
to let Joshi leave the office and have permitted him only limited food
rations. The protesters, who are members of the Nepal Students Union
affiliated with the Nepali Congress party, allege that Joshi changed
the date for student elections without notice. The university denies
the allegations and says elections will be held as scheduled on
Feb. 26. The contest will be between the Nepal Students Union and
another student group supported by the communist government.
February 17
Road Accident kills 5
Excerpts from Xinhua report
Fiver persons were killed and 60 others injured in a road accident
in sunsari district, eastern nepal, thursday. according to local
district police, among the injured, 57 are undergoing treatment at a
local hospital and three others have been taken to silguri, india, for
treatment. the cause of the accident is under investigation.
February 19
Bus Accident Kills 2
Excerpts from AP report
At least two persons were killed and 29 others injured when a
passenger bus plunged 30 feet (10 meters) deep in the
Kathmandu-Pokhara highway, police said Sunday.
Police said the driver lost control of the vehicle and it broke
through the railing of a motor highway near Jogimara, 70 miles (110
kilometers) west of Katmandu.
The injured are being treated in hospitals in Jogimara and
Katmandu. Two of them are in serious condition, police said.
Cabinet Reshuffle Expected
Excerpts from UPI report
Sources close to the ruling UML party say that the party is
preparing for a cabinet reshuffle soon. The reshuffle is expected
anytime after Deputy Prime Minister Madav Nepal returns from a
European tour on Feb. 27. The 15-member cabinet will be expanded to
include a woman and redistribute responsibilities of ministers
overseeing two or more ministries among newcomers, party sources said.
In a move aimed at winning support of civil servants, the communist
government has nullified action against 961 employees imposed by the
Nepali Congress government. The workers had been either warned or had
their promotions frozen for taking part in agitation while the
congress was in power for 3 years, official sources said.
***************************************************************8
From: echo@dolphin.upenn.edu (Elaine A Lander)
Subject: Q about USAID in Surkhet
To: NEPAL@cs.niu.edu
Date: Mon, 20 Feb 1995 11:36:38 -0500 (EST)
Namaste-
I am currently at Penn after living in Nepal (Sept 90- July 93) and am
working on a paper for my bioethics class. I am wondering if anybody
out there has any information on USAIDs malaria eradication programme in
MidWestern Nepal (eg. Surkhet) that went on in the late 60's (I presume).
If you know anything about it or have any anecdotes to relate (or are of
Tharu descent or whatever), please address correspondance to
echo@dolphin.upenn.edu
Thanks in advance for your time and consideration in this matter.
-Elaine Lander
*******************************************************
Date: Tue, 21 Feb 1995 01:49:44 -0500 (EST)
From: Ashutosh Tiwari <tiwari@husc.harvard.edu>
Subject: Needed: E-mail or postal addresses
To: nepal@cs.niu.edu
Could someone please send me the e-mail or the postal addresses of:
Tilak Mahato, and
Richard Bass
Even fax or phone numbers in the USA are fine.
With advanced thanks,
namaste
ashu
*****************************************************************
Date: Tue, 21 Feb 1995 19:26:21 -0700
From: nrb957802@rccvax.ait.ac.th
To: nepal@cs.niu.edu
Subject: new membership
The Editor in Chief
The Nepal Digest
Dear Editor,
I would like to introduce myself that i am a Nepali studying in AIT
I would be a reader member of your electronic bulletin THE NEPAL DIGEST
Please send me The Nepal Digest regularly in my address. Thank you for your
cooperation.
Now I have a poem for TND. Could you publish this poem. I will be happy if
you are kind to me.
With best regard.
Sincerely Yours
shyam Sundar Shrestha
POEM
SADAK
MA SADAK KULCHER MALAI HINDI RAHECHHA MANIS
MA SADAK KULCHER MALAI HINDI RAHECHHA JINIS
MANCHHELAI MAILE BOKNAI PARCHHA KINAKI
YO MERO DAYITYO HO, TARA YANHAN KHAI KE BHANUN
DHERAI THOKLAI BOKNU PAREKO CHHA
DHERAI MANCHHELAI BOKNU PAREKO CHHA
MANCHHEKO ANUHAR MATRA BHAYAKA "MANCHHE"-LAI BOKNU PAREKO CHHA
MA SADAK ..
MANCHHELE MALAI BANAUCHHAN RA BHATKAUCHHAN PANI
MANCHHELE MALAI SURU GARCHHAN RA TUNGYAUNCHHAN PANI
TARA ABIRAL NADI JASTAI BAGNA CHAHANCHHU
TARA MA ABIRAL NADI JASTAI DAUDAN CHAHANCHHU
MALAI TUNGIN MAN LAGDAIN, MALAI BHATKIN MAN LAGDAIN
MALAI TUNGIN MAN LAGDAIN, MALAI BHATKIN MAN LAGDAIN
********************************************************************
Date: Sun, 19 Feb 1995 14:25:00 EST
To: a10rjs1@cs.niu.edu
From: DGURUNG@CLEMSON.EDU
Subject: TIBETIAN RESPONSE TO NEPAL'S DECISION ON MARCH TO LASHA (WTN)
CROSS LISTED FROM WTN
1. Press Statement from New Delhi
February 15, 1995
PRESS STATEMENT
The recent statement issued by the Government of Nepal to stop the
peace march to Lhasa has deeply disappointed the Tibetan people.
Tibetans have great respect to the people and Government of Nepal
for granting asylum to some 20,000 Tibetan refugees. It always is
our sincere desire not to bring disrespect and bad impression upon
the Government of Nepal.
Nevertheless, we believe the Government of Nepal understand that
situation inside Tibet is so grave that the very survival of
Tibetan civilisation is at risk. With lack of support from the
international community, we have no option left but to raise our
own voice before it becomes totally inaudible.
The Government of Nepal's reiteration that "We regard Tibet as a
part of China" has further dampened the spirits of Tibetan people.
Considering the serious situation inside Tibet, we are hoping that
Nepal, once a friendly neighbour, would certainly come out to
rescue the Tibetan civilisation which is on the verge of
extinction.
Further, the statement is in total disregard to the treaty which
was signed between His Majesty's Government and independent Tibet
in March 1856. The article two of the treaty read "Nepal is to
render assistance to Tibet, as far as possible, if she is invaded
by a foreign power".
We, therefore, appeal the government of Nepal that it is time now
she should provide every possible assistance to save Tibet. The
people and government of Nepal cannot remain a mute spectator when
its neighbour, Tibet, is slowly being obliterated from the face of
this earth.
Lobsang Nyandak
Spokesman
TIBETAN PEACE MARCH MOVEMENT
**********************************************************************
Date: Tue, 21 Feb 1995 21:27:10 -0700
From: nrb957802@rccvax.ait.ac.th
To: nepal@cs.niu.edu
Subject: khoj-khabar
I would like to see my sirs Mr. Amulya Ratna Tuladhar and Rajesh Bhakta
Shrestha and friends Shanta Raj Jnawali and Shiva Raj bhatta. My e-mail
# nrb957802.
**********************************************************************
Date: Tue, 21 Feb 1995 09:41:03 -0500
From: rshresth@black.clarku.edu (RaJesh B. Shrestha)
To: nepal@cs.niu.edu
Subject: Information about hotels
Cross-posted from SCN:
---------------------
A recent query:
BBB> Hi,
BBB> I am taking some of my friends to Nepal for a few days and one of them
BBB> is handicap. Can anybody tell me whether hotels in Kathmandu, Pokhara
BBB> etc have elevators. How hard is it for a handicap person to go around in
BBB> Kathmandu, Tiger Tops places like that? Is it possible to rent a
BBB> car or a jeep for a week or one has to rent in daily basis.
BBB> I will be glad to hear any information (plus some other helpful
BBB> suggestions).
BBB> Thanks in advance.
BBB> Bhed Bahadur Bista BBB> e-mail: bbb@shiratori.riec.tohoku.ac.jp
My wife and I were in Nepal last fall, and while neither of us are
physically handicapped we met a wheelchair-bound European woman staying
at our guesthouse, (the Shiva) in Bhaktapur. She was having a good
time. The Shiva doesn't have an elevator (we saw no elevators in Nepal,
though the big hotels perhaps have them), but the staff of strong young
men got her up and down the stairs cheerfully and without difficulty. I
think in general that the lack of facilities for someone like this would
be more than offset by the overwhelmingly friendly and helpful
nature of the people. There also shouldn't be any trouble finding
someone who would be happy to have the job of accompanying you to help
with steps, etc. I would simply ask hotel staff for recomendations.
Regarding driving, renting a car without a driver is not a good idea -
the traffic, parking, etc. is, ah, unusual (but fun if someone else is
driving). We went everywhere too far to walk by cab - the "cabs,"
especially outside Kathmandu, often being simply cars owned by young
men. We had nothing but the most pleasent experiences with such
folks, and found everyone reliable. Prices are of course negotiable,
but shortly you will learn the going rates. Don't haggle too much - you
want to be with happy people, and things in Nepal are inexpensive enough
as it is. (I totally disagree with the theory that one should avoid
"spoiling" people, thereby ruining the cheap prices for others - that's
just another excuse for exploitation. What I did do a couple of times
was bargain down to the lowest price I could, just to find out
what it might be, and then add a big tip.)
Hope this helps - good luck.
Oliver (oliver.seeler@tigerteam.org)
**********************************************************************
Date: Tue, 21 Feb 1995 09:44:32 -0500
To: nepal@cs.niu.edu
Subject: Here is a MOMO recipe!
From: an173960@anon.penet.fi (Silent Do Good)
Recipe for Momo
Before anything else, here is a little etymological background:
Momo: noun, any of several types of meat or vegetable dumplings very
popular in Nepal and Tibet. The plural form is MOMOS, not
to be confused with Momos, the Greek god of censure and mockery. Although,
mighty Momos himself may deign to give you his blessings if you do not
follow my Momo cooking directions properly.
Momo is also affectionately known as Momo-cha. The suffix "-cha"
roughly means "I love this cute little thing from the bottom of my heart."
("-cha" takes the same form in Nepalese as the suffix "-ska" does in
Russian: Matru-ska, Babu-ska.)
I can already see saliva dripping from the corners of your mouth, so,
without further ado, let me give you the recipe:
1) Simple version:
Buy a pound or two of ground meat, and mix it with
a little salt, a lot of spices, and red chilli pepper to your taste.
Make small meatballs, each half the size of a ping-pong ball. (Each meatball
is for one Momo, so make as many as you want.)
Get some Pillsbury dough (if you don't have any Pillsbury dough,
any white flour dough will do), and cut the dough into
small flat circles the size and shape of a regular-sized chocolate chip
cookie.
Put a meatball at the center of one of the cut pieces of dough. Hold
the dough with meatball in it on your left hand, and, using the tips of your
forefinger, thumb, and second finger of your right hand, get hold of (or,
rather, pinch) a small piece of dough at the outer rim.
Don't let go of the pinched part yet. Now, working from outside in,
while exerting a slight pressure on the meatball with your left thumb to push
the meatball in, and at the same time, streching out the outer rim of the
dough a little at a time, start enfolding the meatball with the dough using
the three right hand fingers.
I have always considered folding in the Momo dough an art by itself.
It usually takes a lots of practice before you can do it really well.
In any case case, it really doesn't matter how you do it as long as the
meatball is completely inside the dough. The final product should look like
Charlie Brown with a false toupee.
Now that you have completed the most difficult part, pat yourself
on the back (of course, after wiping your hands off), and congratulate
yourself. Personally, I prefer to drink a little Italian red wine at this
stage.
Ok, I guess you now have lots of small round dough covered meatballs
all over the place. The next thing you need to do is boil about
2 quarts of water in an open pot. Let the water boil for a while, and put
about five or six dumplings in it. Take out the dumplings after the meat
inside is thoroughly cooked (should take around 10 minutes). After you have
taken them out, they are ready for serving. While you are hollering friends
and family members to come and eat, put more uncooked dumplings in boiling
water.
It is better to serve Momo with some vegetabe soup (usually tomato,
with lots of chopped celery, minced onions, and hot sauce). One should
have these dumplings completely submerged in soup to bring out their best
taste. (Just like Matzo balls, ja?) But remember that Momos taste good
only when they are served warm.
2) A little bit more difficult, but more authentic way of making Momo:
Follow the steps in the previous method except that you now
need to add bone marrow in the meat (don't ask me where to get
it!)--like about a quarter pound of bone marrow for two pounds of meat--while
mixing in spices.
Bone marrow is the main thing that gives momo its distinct taste,
just like oregano in pizza.
The second different thing that you need to do, instead of throwing
in dumplings in boiling water, is to put the dumplings (several at a time) in
a vegetable strainer, and put the strainer on top of boiling water--without
the strainer actually touching the boiling water.
Cover the pot tightly, and steam cook the dumplings until they are
well cooked. The idea is to cook the dumplings in steam without letting
them come into contact with boiling water. You might want to put some
vegetable shortening at the bottom of the strainer to avoid it from getting very
sticky, and thus tear up the dumplings when you try to remove them.
Again, put the dumplings in tomato soup, and serve while still hot.
Final comment: The second of the above methods is about 90% closer to the
way they actually make Momo in Nepal. If you are really into making momos,
you should ask some one coming from Nepal to bring you back a multi-layered
momo making pot. I have also seen some people make vegetable Momos.
If you really understood what I wrote, and actually made Momo, please let me
know how it turned out. If I get good feed back I might well decide to
write more recipes. Bon appetit!
Silent-Do-Good
**********************************************************************
Date: Tue, 21 Feb 1995 11:25:22 -0500 (EST)
Subject: Tax Effort and Foreign Assistance (fwd)
From: Neal Cohen <ncohen@usaid.gov>
This is the version of an ECON Internal memo that excludes graphs (the
full file is over 600kb, so it is hard to transmit). We are willing to
snail MAIL copies of the full document. The paper is an outgrowth of
some discussions last week on tax effort and foreign assistance
dependency.
Taxes and Foreign Assistance
Summary
Nepal collects less in taxes (as a percentage of GDP) than any other
country in Asia. Only six countries world-wide have a low tax ratio.
The new Government estimates that the tax effort ratio will reach
nearly 12% this year. It had moved up from 9.2% in fiscal year 1993 to
10.3% last year. At that time it almost met structural adjustment
targets. If the new government meets its target it will exceed the
structural adjustment targets.
Nepal is also one of the six countries (none in Asia) where total
foreign assistance is equal to 70% or more of total government
spending. Foreign assistance to Nepal has been highly erratic; it has
grown by over 50% some years, and fallen in other years.
Implications
Nepal is one of the countries most dependent on foreign assistance to
finance government spending. It appears that foreign assistance budgets
may be reduced in a number of countries (the USA and the European Union
are two, but it appears the UN system and World Bank might also not
have as many resources in the future). At the same time, Nepal has one
of the lowest tax effort indexes in the world.
The combination of these does not bode well for Nepal s ability to
finance current and future development needs. The new Government has
many new spending initiatives that will require substantial resources
in the near future. The need is great for a pro-development tax system
that collects sufficient resources to fund these and reduce dependency
on foreign assistance. Nepal has been fortunate to continue to receive
substantial increases in foreign assistance (both in nominal and real
terms) over the past decades. As we do not know whether, or how soon
foreign assistance budgets for Nepal might be cut, it would be prudent
to seek alternative resources quickly.
Introduction
The previous government had begun a process of tax reform with an end
to increase government s revenue and reduce its dependence on foreign
assistance. The tax reform process was designed to increase elasticity
and buoyancy in Nepal s tax system and reduce reliance on taxes
alleged to be corrupt (often where collections are often based on
negotiation between tax payer and tax assessor). The new government is
discussing whether taxes need to be reformed and what form it ought to
take. This memo does not go into the alternative forms of tax reform,
but rather addresses the issue of tax levels and dependency on foreign
assistance.
Recent articles in the International Herald Tribune (some of which
appeared in local papers) note the possibilities of decreases in the
levels of U.S. assistance (bilateral assistance plus the U.S.
contribution to the UN and multi-lateral development banks), and in
assistance from the European Union. While the problems addressed in
this memo might not occur this year or next, it appears likely they
will happen sometime.
Tax Effort
Tax effort can be defined as the ratio of taxes to GDP (gross domestic
product - the value of goods produced).
Higher or lower tax efforts do not mean a country is more socialistic
or capitalistic, although there is a tendency for socialistic countries
to have higher levels of taxation ceteris paribus. The lack of
correlation between tax effort and economic growth exists because it is
not so much the level of taxation, but how the money is spent that will
affect economic growth.
Nepal Over Time
In 1975 domestic revenue was just over 6% of GDP, for the fiscal year
that ended last summer tax effort in Nepal increased to 10.3%. This was
a major improvement from the 9.2% of fiscal 1992 and reflect the
previous government's efforts to increase domestic revenue collections.
The Nepali Congress government estimated it would increase to 10.5%
this year, the UML government forecasts an increase to 11.7%, the
highest it has ever been in Nepal.
The target under Structural Adjustment was for this ratio to increase
to 10.6% in fy1994 and to 11.2% during the current fiscal year. The
target last year was not met, but the new government s estimates show
it expects to meet the target this year.
Nepal Compared
The latest comparative data we have is for 1991, when Nepal s tax
effort ratio was 9.2%. Within south Asia (and indeed within Asia as a
whole) Nepal has the lowest tax effort index. South Asia has much lower
tax effort values than most other low income countries world-wide,
where the median tax effort index is 26%. In Thailand this ratio is
21%, in both Malaysia and Singapore it is 28%.
The ratio in the USA is 20%, most west European countries have values
in the 30-40% range. For Japan the ratio was 15% in 1991. Sweden,
considered a model by some Nepalese as to a liberal socialist economy,
the index was 44%.
Of the countries reporting 1991 data, only six had lower tax efforts
than Nepal: Yugoslavia, Sierra Leone, Peru, Chad, Madagascar and El
Salvador. Many of these had special circumstances such as civil wars
which prevented the national government from collecting taxes.
The tax effort is important, especially for a developing country, as
government needs resources with which to encourage development. The
lack of government resources limits government from providing the level
of support needed for necessary infrastructure programs (including
maintenance), improved education (funding government s free book
program is difficult) or health services (stocking health clinics with
medicines and doctors). This does not mean that increased taxes will
increase Nepal s development, but the resources would be there for
development purposes.
Were Nepal trying to attract foreign investors, or encourage domestic
investors through low taxes, then a low tax effort index would make
sense. However, as noted in previous memos, Nepal s tax system is not
conducive to private sector development because of its lack of
predictability and transparency.
Donor Assistance
The most important donors in 1993 were, in order, Japan, the World Bank
and the Asian Development Bank. The most important sectors were
agriculture/forestry/fisheries (accounting for 16% of all donor
resources), followed by transport (roads, 14%), and humanitarian aid
and relief (11%).
Donor assistance has been highly variable both in levels and in
sectors. The terms have gradually moved toward increased reliance on
concessional lending, with less reliance on grants.
Importance to Nepal Over Time
We compare the foreign assistance that goes through the budget with
total government spending. We use total government spending as some
foreign assistance is used to pay items included in the regular budget
as well as the development budget (where most foreign assistance is
counted). The foreign assistance included is only that portion that
goes through the government budgetary process. Grant foreign assistance
that is disbursed directly to NGOs or contractors is often not included.
Over the twenty year period dependence on foreign assistance has grown
but been very erratic. It has gone from 38% of government spending in
1981 to 30% in 1983; in 1990 it was 40%, only to fall to 32% by 1992.
Since then it has climbed back to 38% for the fiscal 1994. The Nepali
Congress forecasted that in the current fiscal year it would be 39%,
while UML projects 37%. For the current fiscal year, government s
estimate of foreign assistance is equal to 70% of the development
budget.
There has not been any reduction in dependency on foreign assistance.
Nepal Compared
Using World Bank data for 1991, we divided total ODA (whether
disbursed through the government or not) by total government spending.
Within Asia and south Asia no country is as dependent on foreign
assistance as Nepal. Total foreign assistance equaled 71% of total
government spending in 1991. Bangladesh, the second south Asian country
most dependent on foreign assistance, received assistance equal to 45%
of government spending. The median for south Asia was 32%, while the
median for low-income countries was only 6%.
Only five countries in the world were more dependent on foreign
assistance (in order from the most dependent): Nicaragua, Sierra Leone,
Madagascar, Guinea-Bissau and Malawi. No Asian country was more
dependent than Nepal.
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