WRITTEN QUESTION E-3054/02

by Bart Staes (Verts/ALE) to the Commission

(24 October 2002)

Subject: Commission position on Nepal

Since 1977 the EU has given more than EUR 130 million in assistance to Nepal. On 24 July 2001, Commission President Romano Prodi wished that country's then recently elected Prime Minister, Mr Sher Bahadur Deuba, every success in his new office. Prodi had, by his own account, every confidence that Nepal would, under its new prime minister's leadership and with the help of democratic dialogue, be well placed to make progress in its efforts to secure peace, stability and prosperity. Prodi also, on that occasion, confirmed the European Commission's willingness to establish ever closer links with Nepal.

On 20 August 2002, the Commission issued a press release stating that it had allocated EUR 615 000 in assistance to Nepal, to be used to help reduce tensions in that country. A week later the Nepalese Prime Minister spoke with Commissioner Patten. As for Sher Bahadur Deuba's visit to Brussels, Nepalese human rights activist, Gopal Siwakoti Chintanis has stated that no one in Nepal had heard of it. All that the Nepalese people had known was that their Prime Minister had been in Johannesburg at the Sustainable Development Summit. On 4 October 2002, the Prime Minister and his government were dismissed by the king for failing to organise the elections for the scheduled date of 13 December. King Gyanendra insisted that he was not mounting a coup, but nevertheless postponed the elections indefinitely.

Can Commissioner Patten state what matters he discussed with the former Prime Minister of Nepal, in what atmosphere their conversation was held, and what impression it made on the Commissioner? What practical results came out of that conversation?

Can the Commission provide an assessment of the assistance it has provided to Nepal since 1977, and what practical results it has achieved? Are the results commensurate, in the Commission's view, with the financial outlays involved?

Is the Commission keeping abreast of the most recent developments in Nepal, and in what ways will it consequently adjust its position in relation to that country?

Lastly, the press release stated that future EU assistance would be directed more particularly to the underlying reasons for the conflict in Nepal. What action has the Commission already taken to that end?

Answer given by Mr Patten on behalf of the Commission

(27 November 2002)

In view of the growing instability in Nepal since the killing of the Royal Family (June 2001), the Union has attached increased attention to the political and security situation in the country. The Commission and Member States have stepped up their monitoring of governmental instability, Maoists insurgency activities and army's attempt to keep the situation under control. They have also shown their concern for growing human rights violations and worsening of the economic and social situation.

Prime Minister (PM) Deuba's visit in August 2002 was made against this background. On that occasion, the member of the Commission responsible for External Relations reiterated the Commission's offer to support the elections, expressing at the same time concern for possible extension of the state of emergency. He confirmed the Commission's support to long-term development initiatives to eradicate poverty and to eliminate the root causes of the conflict with Maoists. The atmosphere of the meeting was friendly (first visit of a PM of Nepal to the Commission) and the Commission's willingness to support all efforts to consolidate democracy was made very clear.

Most recent developments such as a non-elected care-taker government, absence of Parliament, absence of elected local representatives and no clear signs of resumption of talks with the Maoists, risks to push the country back to a pre-1990 situation, destroying the results achieved since the instauration of a Constitutional Monarchy.

The Commission will continue its commitment to Nepal and a Commission Delegation Office has been opened in March 2002. Political reporting and close concerted action with Member States represented in Kathmandu continue to take place, in particular in relation to security issues that might jeopardise ongoing and new development activities.

The main focus of past Community development assistance to Nepal was on rural development and poverty alleviation. Community's efforts were concentrated on: (i) irrigation and watershed management, (ii) animal health, (iii) reproductive health, (iv) primary education, (v) refugees, and (vi) institutional and capacity building.

Community aid to Nepal has, on the whole, been successful and has responded to the needs and priorities of Nepal, set out in the various Five-Years-Plans. Experience has taught that successful projects need to be based on an active participation of the local beneficiaries, as well as on a strong management organisation.

In recent years, major Community projects focused on rural development and irrigation have encountered serious problems with Maoists' interference and attacks. As a result of these developments and in order to support progress towards peace and stability in Nepal, the new Community cooperation strategy with Nepal has integrated the issue of conflict mitigation as an important component of its development strategy.

The Commission is currently completing a new Country Strategy Paper for Nepal that will include preventive initiatives, through support to the rule of law, good governance, protection of human rights as well as long term rural development in areas (Mid-Western Region) with strong insurgency presence. In July 2002 the Commission approved an important initiative worth EUR 15 million in favour of rural electrification of (photovoltaic) local communities in areas deprived both of any access to the national grid or to hydroelectric systems.