Nepal Government formation mired by old political legacy
With the election concluded successfully and Nepalīs Chief Justice of Nepal having stated there are no constitutional impediments towards forming a New Nepal government, the UNMIN Electoral Assistance Office in Nepal has officially winded up its activities effective of May 8, 2008, according to Fida Narsallah, the Chief Electoral Advisor. She stated,"I would describe the experience overall as having been extremely successful."
Nepalīs Minister for Information and Communication Krishna Bahadur Mahara, who also doubles up as the spokesperson of the CPN-Maoists, feels there is a definite conspiracy being hatched against his partyīs leadership over who will handle the reins of a new democratic government in Nepal in the near future. The Maoists had officially won the CA Poll with a simple majority but will require two-thirds confidence to form a government. Besides, there are still 26 members of the 601-member CA to be nominated by the council of ministers. The Prime Minister has also to call the first sitting of the CA, which will take at least a month still. It is being discussed in Kathmandu political circles that some of the current cabinet ministers who were doing a good job in the Nepal Government but lost due to the recent Maoist electoral wave, might be re-nominated on the basis of all party concurrence.
Thus, the current political impasse has prolonged for more than three weeks, with no Nepali political fireworks in sight, on whether the Maoists would alternately be willing to accept a government headed by incumbent Prime Minister Girija Prasad Koirala, who despite his earlier republican call, has now decided to stick with the old BPist NC line. This is also described by some of Nepalīs international friends inherently as the twin pillar Multiparty Democracy-Constitutional Monarchy theory. Mr. Koirala who successfully brought Nepalīs Maoists into the main political mainstream, is accepted as a middle road democrat by Nepali political parties; the only problem to his leadership contribution is his old age and frail health. It appears, Mr. Koirala is still willing to try out his leadership if the Maoists trust him to head the next government.
However, a Maoist Minister Dev Gurung has stated recently that since his party has now won the legal mandate to form the next government, CPN-M will form a single party democratic government, if no other Nepali political party decided to come on board. He has also objected to any amendments in the interim constitution that would undermine the Maoist electoral win in the CA Poll allowing NC or UML to lead a government. Mr. Gurung has also stated that the Maoists will not join any future democratic government except one led by them. They have already laid claim to half a dozen major ministries denied them earlier.
While the US is still pondering, India and China have accepted the Maoists victory and willingness to work with them. Recently the Norwegian Government also sent one of its ministers to Kathmandu to gauge the overall development cooperation framework, since Norway is keen on helping Nepal develop its hydro electricity potential. Similarly, Indian Ambassador to Nepal, Rakesh Sood, a well known Indian conflict resolution expert with first hand diplomatic experience in SAARC political systems, recently called on Prime Minister Girija Prasad Koirala in what was seen as a positive Indian gesture, offering to work closely with Nepal in the near future. Mr. Soodīs meeting came at a time when the Nepali political parties have stepped up discussions in forming an all party government, despite NC and UMLīs principled stand. It is known from Nepali media sources that in Mr. Sood's meeting with PM Koirala at Baluwatar, the main discussion focused on the procedure of government formation, its composition, and matters of mutual interest between India and Nepal. It is also learnt that India is keen to solve Nepalīs recurring petroleum crisis, and remove the ban on certain food imports and construction materials.
The Maoists number two leader, Dr. Babu Ram Bhattarai, insists that his party is keen on driving Nepal along a fully democratic highway. Prachanda also specifically mentioned this in his meeting with US Ambassador to Nepal, Nancy Powell and Kathmandu based foreign diplomatic representatives recently.
One of the major concerns about Nepal right now is the state of economy. Although Nepal ploughs in an estimated US$ 1.5 billion to 2 billion in foreign remittance and another US$ 450 million in tourism revenue every year, most of the savings have been paralyzed by the Nepal Governmentīs inability to offer effective interest rates on government floated citizenry bonds. Nepalīs Commercial Banks also have shied away from promoting foreign remittance earnings to support the countryīs hydro electricity (power sector) and industrial infrastructure development. Although inflation was 7.2 percent in the first eight months of the current fiscal year compared to 6.2 percent last year, this could have been lowered given the fact that the majority of Indian goods (as much as 85%) in the Nepali market are highly subsidized by Indian industrial manufacturers. Thus, after the CA Poll 2008, there is a budget deficit of Rs 6.99 billion as government expenditure has grown faster but exports decreased to 2.6 percent. Nepalīs exports to India plunged by 6.9 per cent, since the Nepali industrial production cycle was hugely affected by various bundhs and strikes called by the SPA in the past two years.
Thus amidst the political and economic challenges ahead, the Maoists who have won the CA Poll, need to be more realistic in accelerating discussions on government formation in order to attend to a īsickī economy and political in-fractions that might not look healthy in Nepalīs post-CA Poll period. This will require a fully working Nepal Government in place soon.