Nepal

Political Development:

Drafting of Constitution:

1. Initially, the constituent Assembly and the political parties had assigned only two days for obtaining people’s feed back on the draft constitution were allotted for this enormous task. But as many as 184,674 people participated in feedback exercise. Due to obstacles created by some parties dissatisfied with the constitution writing process, collecting public feedback was not satisfactory in some parts of Madhes. For example, the signatories to the 16-point deal had rejected the idea of directly-elected President or Prime Minister. But a majority of people supported it.

2. On the basis of suggestions received from the people, the four major parties decided to consider seven main constitutional issues relating to directly elected heads of government and the state, rights of dalits and women, citizenship, religion, electoral provisions for local bodies, demarcation of federal units, and judiciary. These were flagged for reconsideration on the basis of the report prepared by the Committee on Citizen Relations and Public Opinion Collection which submitted its report to the Constituent Assembly Chairman Subas Nembang, on July 27.

3. Three major parties agreed to discuss the issues report both in CA and at the political level simultaneously. CPN-UML and UCPN (Maoist) supported the idea of directly elected executive head as demanded during the consultation process. Nepali Congress, however, argued in favour of parliamentary system. On religion, parties agreed in principle to replace ‘secularism’ with other words or phrases though they have not yet decided one acceptable to all. There were no basic differences between them over including more rights of Dalits and Women. On citizenship, discussions were progress to substitute “father and mother” with “father or mother” in Article 12(a) of the draft constitution. A large number of people had demanded direct election of the Village Development Committee chairperson and the ward chiefs as against nomination of these representatives. There was massive support for delineation of federal units before promulgation of the constitution. On judiciary, there was support for reappointment of the Chief Justice when the new constitution comes into force.

4. The Constituent Assembly, on July 29, sent the report of the committee on Citizen Relations and Public Opinion Collection to the Constitutional Political Dialogue and Consensus Committee (CPDCC). The CPDCC, on July 30, formed a five-member high-level special committee comprising top leaders of four major political parties to review the draft by incorporating the feedback given by people. It will hold consultations with the leaders of parties within and outside the CA and concerned experts before finalizing the report. During the CPDCC meeting CPN-UML Chairman KP Sharma Oli said that the new constitution should be promulgated by August 17. Four Madhes-based dissident parties namely Federal Socialist Forum-Nepal, Tarai Madhes Democratic Party, Sadbhawana Party and Tarai Madhes Sadbhawana Party, boycotted the CPDCC meeting after putting forth their views. The CA has given the CPDCC four days to prepare the report. However, CPDCC Chairman Baburam Bhattarai has demanded ‘a few more days’ to prepare the consensus report.

5. Four major parties-Nepali Congress, CPN-UML, UCPN (Maoist) and Madhesi Janadhikar Forum Loktantrik, started consultations with the disgruntled parties to arrive at an acceptable consensus before promulgating the new constitution. Tarai Madhes Loktantrik Party Chairman Mahanta Thakur expressed his dissatisfaction with the major parties for not considering their concerns on demarcation of provinces and women’s right to grant citizenship to their children. The leaders of major parties assured him that the constitution would be promulgated incorporating views of the disgruntled parties, other agitating groups and the public.

Protests and Strikes against Draft Constitution:

6. The Madhesi front called for Madhes bund, on July 21, in an attempt to prevent the Constituent Assembly members from collecting public feedback on the draft constitution. The front had been staging protest rallies in all districts of Tarai disrupting Public feedback programme. Protestors burnt the copies of the draft constitution and hurled petrol bombs at vehicles.

7. Supporters of ‘Hindu nation’ enforced a shutdown in three districts of Central and Western Nepal, on July 29, protesting secularism in the constitution. After the four major parties signed a 16-point deal, on June 8, the RPP-N had intensified protests demanding that Nepal be reinstated a Hindu nation in the new constitution. A group of Nepali Congress leaders, led by Khum Bahadur Khadka, launched separate campaign for a Hindu nation. Meanwhile, the Netra Bikram Chand ‘Biplav’-led CPN-Maoist, a break away faction of the UCPN(Maoist) enforced a nationwide general strike against the India-China Lipublek deal and also the draft constitution. Normal life was affected due to general strike by the Maoist party, on July 24.

Heads of Constitutional Bodies Demand Greater Autonomy:

8. Heads of various constitutional bodies, on July 29, urged leaders of major parties not to place the constitutional bodies under parliamentary oversight, as proposed in the draft constitution. Chiefs of Supreme Court, Commission for Investigation of Abuse of Authority, National Human Rights Commission, Election Commission and Public Service Commission met with the top leaders of four major parties and appealed for greater autonomy to the constitutional bodies. Chief Justice Kalyan Shreshtha suggested scrapping of the proposed constitutional court. Instead, he advised setting up a separate constitutional bench in the Supreme Court.

MoFA Suggested Mentioning Neighborhood Policy:

9. The Ministry of Foreign Affairs has suggested that a special mention be made on the country’s neighbourhood policy in the new constitution. MoFA suggested a specific mentionto the effect that the ‘country shall pursue its relations with neighbours based on sovereign equality and reciprocity, but the country shall not align one neighbour against another’. Minister for Foreign Affairs Maherdra Bahadur Pandey added, “As our neighbours have special emphasis on their relations with Nepal, we have also suggested special emphasis on our relations with them.” The minister also stated that the country’s foreign policy should be aligned with the national security policy ‘as these are interrelated’.

Internal Developments:

Kaski, Myagdi Landslides Claim 33 Lives:

10. Landslides and floods triggered by incessant rains since 30th July claimed lives of at least 33 persons in Kaski and Myagdi districts, leaving 20 persons injured and many missing. The rain-triggered landslides also blocked Pokhara-Baglung highway at a number of places, causing obstruction of vehicular traffic.

Temple Bans Mass Animal Slaughter:

11. In a victory for activists, Nepali temple authorities said, on July 28, that they would end century-old Hindu tradition of mass animal slaughter that attracted hundreds of thousands of worshippers. The festival, held once in every five years, saw hordes of devotees from Nepal and India flock to a temple in the Himalayan nation’s southern plains to sacrifice thousands of animals in the hope of appeasing the Hindu Goddess of power, Gadhimai.

External Relations:

Foreign Firms to be inducted in Nepal Airlines Management:

12. Nepal Airlines Corporation (NAC) plans to invite proposal from foreign firms as management partner in a bid to improve its performance and to better manage the existing operations. Request for Proposal will be floated in two-three weeks. Ram Hari Sharma, spokesperson of NAC, said the management contract would be valid for two years. The Corporation plans to hand over management of key deportments like finance, operation, human resource and engineering to the partner. Two Global companies, Airbus and Lufthansa Consulting have showed interest in coming aboard. Lufthansa Consulting and German Aviation Capital had in March this year submitted proposals to the Prime Minister’s office to provide consultancy and management services to improve the performance of NAC and enhance its operational efficiency.

China Ready to Work with India:

13. China and Nepal, on July 23, signed two pacts for post-disaster reconstruction of Nepal, setting up priority projects for the next five years. According to the visiting Chinese Deputy International Trade Representative and Assistant Minister for Commerce, Zhang Xiangchen, Chinese priorities for Nepal’s include infrastructure development, improvement of people’s livelihood after earth quake, restoration of cultural relics, capacity building for disaster prevention and mitigation, medical and health co-operation and maintenance of projects built with Chinese assistance. Zhang told media that in this process China would strengthen co-ordination with India, international community and relevant donor countries and remain open towards appropriate forums of international community. In an example of trilateral co-operation between Nepal, India and China, he presented the Civil Service Hospital which was built by China while most of its health professionals were trained in India.

India Advised Deuba to Respect Statute Feedback:

14. External Affairs Minister of India Sushma Swaraj, on July 30, in a meeting with visiting former prime minister and senior Nepali Congress leader Sher Bahadur Deuba in New Delhi, urged Nepal’s political parties to incorporate all issues and concerns raised by the people in the new constitution. She pledged India’s support to assist Nepal in its aspirations to become a stable and prosperous country. While thanking India for all its support, Deuba said that as per the latest agreement, parties would give constitution its final shape by mid-August.

Bhutan

Internal Developments:

Minister Sacked:

1. Prime Minister recommended the sacking of Foreign Minister Rinzin Dorje following a corruption case against him, though he had been acquitted in the case by a court. Cabinet’s recommendation was submitted to king Jigme Khesar Namgyal Wangchak. Home Minister Damebo Dorji would now be shifted to foreign ministry, while Dawa Gyeltshen, MP would be the new Home Minister. The case relates to the Lakhang Karpo conservation project scam in which the Haa district court had on June 23, acquitted Rinzin Dorje of the charges of abuse of powers and embezzlement of public property,. However, on July 7, the Attorney General submitted an appeal against the judgment.

External Relations:

Fourth Ministerial Meeting of SAARC Held at Thimpu:

2. At the two-day fourth ministerial meeting of SAARC at Thimpu on July 29, India’s Minister of State of Rural Development Sudershan Bhagat offered New Delhi’s readiness to share its knowledge and technology in renewable energy sectors with its neighbours. He proposed a concept note on sharing experience on renewable energy for the development of wind, solar as well as hydropower generation. Ministerial delegations from all SAARC member states offered to share their experiences on renewable energy sectors with the rest of SAARC countries to reduce energy scarcity in the region. Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka attended the meeting which endorsed the proposal of setting up SAARC handicraft development centers, for which all member states have to allocate land and develop a sustainability report. The project is aimed at evolving common standards, market promotion, training and design centers in each of the eight SAARC countries. It also approved a proposal on urban poverty alleviation and slum up gradation in the SAARC region.

Bhutan and Bangladesh Discuss Removal of Non-Tariff Barriers:

3. Bangladesh’s levying five per cent duty on gypsum imported from Bhutan was one of the main issues for discussion in the first meeting of customs officials of Bhutan and Bangladesh in Thimpu, on July 27. Under the bilateral trade agreement between the two countries, gypsum falls under the exempted category. The Bhutanese delegation requested Bangladesh delegation to address the matter on priority. The bilateral trade agreement allows 90 products from Bangladesh and 18 from Bhutan duty free access. The meeting also discussed removal of barriers that impede the bilateral trade. Bhutanese official said that with differing interpretation of rules and regulations, a lot of non-tariff barriers to trade came to play. The meeting also discussed sharing of data on import and export of goods between the two countries.

President Abdul Kalam’s Death Mourned:

4. On the Command of His Majesty the king, National Flag was flown at halt mast as Bhutan joined the people of India in mourning the sudden demise of India’s 11th President APJ Abdul Kalam, on July 27. A thousand butter lamps were offered at the kunery (congregation hall) of Transmichhodzong, on July 28. Prime Minister, while condoling the death of Abdul Kalam, said that he was deeply saddened to hear of his death. Dr Kalam was a leader, greatly admired by all people, especially youth of India who referred to him as the people’s President, he added.

Punatshangchhu Hydropower Project Cost Revised:

5. Indian government has revised cost estimate of the 1,200 Megawatt Punatshangchhu hydropower project at NU 93.7 billion excluding interest accumulated during construction. While Bhutan is yet to receive official confirmation, officials said that it would be cleared within a few days. For the last seven months, the project has not received any funds from India as the new cost was at yet to be approved. While this has not hampered the construction of major components of the project like the dam, it affected other non-critical areas, where the project has not made payments to contractors. The project is being built with 40 per cent grant and 60 per cent loan from the government of India and is to be completed by 2019.

Tashi Air to Resume Kathmandu Flights from August:

6. Private airline, Tashi will resume its flights to Kathmandu from mid August. The airline had suspended flights to Nepal following the April earthquake. Besides, the airline is also planning to connect to New Delhi from September 16. Tashi Air CEO Phala Dorji said that Tashi Air would concentrate on providing better services both in the air and on the ground.

World Bank Sanctions USD 20M Credit:

7. To strengthen investment climate and fiscal balance, World Bank has sanctioned a USD 20M development policy credit to Bhutan. Development policy credit is a policy-based loan with a grace period of 5 years and 25 years of repayment with 1.25 per cent interest and service charge of 0.75 per cent per annum. The credit has three components, the result of which is expected to achieve by 2017.

Chinese Ambassador Meets PM:

8. Ambassador of People’s Republic of China, Le Yucheng, called on Prime Minister, Lyonchhen Tshering Tobgay, on July 17. Prime Minister welcoming the ambassador on his first visit to Bhutan said that such high level visits provide an opportunity for Bhutan and China to exchange views on issues of mutual interest. The Ambassador expressed satisfaction over the cordial relations between the two countries and applauded Bhutan’s development paradigm of Gross National Happiness. They discussed areas of possible collaboration on tourism with emphasis on promoting people to people contact, student exchanges and trade.