Political Development:

Constitution Drafting:

1. Nepal, particularly the Tarai area, has been kept hostage with demonstration, strikes and shutdowns called by different political parties over the demarcation of federal provinces. Different political parties called strikes in different parts of the country pressing their respective demands. A nationwide strike on July 16 jointly enforced by Mohan Baidya-led CPN-Maoist, Federalist Socialist Forum Nepal and some Madhesi parties was just another in a series against six-province federalism model proposed by the main parties. Police arrested at least 117 parsons from across the nation for enforcing the Nepal bandh.

2. In view of these, the Constitution Drafting Committee (CDC) failed to finalise the new constitution within the deadline of July 17. The top leaders of the four major political parties could not find an agreed position even though they agreed in principle to redraw the boundaries of federal provinces. UCPN(M) proposed to create one more province, but the NC and UML do not want more provinces.

3. As protests intensified, the parties agreed to resume the constitution writing process only after holding further talks with the disgruntled parties and communities. This means that the schedule of passing the new constitution on 27 August is unlikely to be met. However, NC leaders are hopeful of taking disgruntled parties on board in couple of days. Madhes-based parties, Janjatis and Tharu’s have rejected the six-province federalism model saying it will not reflect their identity. They announced an indefinite general strike in the Tarai from August 18. In the western plains districts, the Tharuhat struggle committee has been on war path. In the east, Janjatis are up in arms demanding an ethnic based province. Violent protests continue in Karnali region, where the locals are demanding an autonomous Karnali province.

4. In spite of continuing protests and strikes, the four major parties, while expressing their unwavering commitment to six-province model said, on Aug 13, that genuine local demands on delineation would be addressed while finalising the new constitution’s promulgation within the next couple of weeks. Constituent Assembly Chairman Subas Nembang said that the new statute would be out by August – end if every thing went as planned.

5. The Special Committee under the Political Dialogue and consensus committee is preparing to start negotiations with the disgruntled groups. According to a top leader, the demand for an undivided Mid West could be resolved by making Banke the headquarters of the province; Karnali could be made an autonomous region and Tharuhat demand by splitting Kailali district to have an undivided far West. Meanwhile, addressing Parliament, Prime Minister Sushil Koirala, UCPN(Maoist) Chairman Pushpa Kamal Dahal, CPN-UML Chief KP Oli and Madhesi Janadhikar Forum-Loktantrik Chairman Bijaya Kumar Gahhadar said that the constitution drafting process would not stop at any cost. Urging the Madhes-based parties to join the dialogue by withdrawing their protests, Koirala warned of legal measures if their agitation turned anarchic. UML Chairman Oli asserted that efforts of some extremist forces to derail the statute drafting process.

Muslims Support Demand for Hindu State:

6. Amjad Ali, Chairman of Rapti Muslim Samaj said that the growing influence of Christianity among followers of the Hindu faith, has been noticed even in the Muslim community and supported the demand to declare Nepal a Hindu state would also protect his own faith. Although his assertion received mixed reactions from his own community, he was adamant that only the proclamation of a Hindu state can protect his religion from the growing influence of Christianity. Some other Muslim leaders also opine that missionaries have been trying to lure Muslims into the fold of Christianity by offering employment, development and various other benefits.

Bill on Private Security Agencies:

7. A Bill titled Private Security Business Act 2015on Private Security Service Business was presented in the Parliament on operations of private security agencies to make them responsible and effective. Though private security agencies have been operating in the country, there was no law to regulate their operations. According to Section 18 of the proposed bill, the uniform and insignia will be fixed by a Central Regulation Office; no private agency will be allowed to use the colour of uniform and insignia that resemble insignia used by Nepali Army, Nepal Police and Armed Police Force personnel.

Cabinet Recommends Lt. Gen Chhetri as New COAS

8. The Council of Ministers, on Aug 13, recommended to President Ram Baran Yadav to appoint Lieutenant General Rajendra Chhetrias the new Chief of Army Staff. The appointment would be effective from September 10, when incumbent COAS Gaurav SJB Rana’s three years’ stint ends. Lt. Gen. Chhetri assumed responsibility as acting chief of the army on August 10 after General Rana proceeded on customary one month leave, prior to his retirement,

External Relations:

Indian Envoy Suggests Road Shows to Attract Investment:

9. Indian Ambassador to Nepal Ranjit Rae, on August 10, urged the government and the private sectors to organise road shows in different parts of India to promote among Indian investors areas for investment in Nepal. Rae’s suggestion came in an interaction jointly organised by the Investment Board Nepal and Nepal-India Chamber of Commerce and Industry. India is the largest investors in Nepal. In the last fiscal year alone, Nepal, received foreign direct investment commitment worth Rs. 34.71 from India. This contribution made up 51.59 per cent to the total FDI commitment received by the country. Nepal needs huge investments in different projects to provide basic public services, enhance living standard of people and put the country on a higher trajectory of economic growth.

Former Nepalese PM Had Handed Over Lipu-Lekh To India:

10. According to former Indian Army Major General Ashok Mehta, the disputed Lipu Lekh was resolved by the then Prime Minister of Nepal Chandra Shumser Rana. Addressing a function in Kathmandu, on August 13, Mehta argued that there was no point in planting flags in Lipu Lekh or creating disputes over the issue already settled. He added that he was in possession of the map PM Rana had handed over to the British government. He claimed that the map clearly showed that the disputed area did not fall in Nepali territory. He added Nepal and India need to be resolve all such disputes through diplomatic channels.

Bhutan

Internal Developments:

Royal Bhutan Helicopter Services Office Inaugurated:

1. Prime Minister Tshering Tobgay on August 10, inaugurated the office for Royal Bhutan Helicopter Services Limited. Speaking at the ceremony, the Prime Minister said that besides being of great use during emergencies, the helicopter service will also be used for tourism and even the government activities. The state-owned enterprise will start its operation from November 11, 2015, coinciding with the 60th Birth Anniversary of His Majesty the Fourth Druk Gyalpo. They are expected to receive the first helicopter on November 3 and the second by mid next year.

India’s 69^th Independence Day Celebrated:

2. The Indian community in Bhutan Celebrated India’s 69th Independence Day at the Indian Embassy on August 15. His Majesty’s representative, the Gyalpo Zirpor, cabinet ministers, foreign secretary, chief of protocol and senior government officials attended the celebration. Indian Ambassador to Bhutan, Gautam Bambawale, read out President of India’s address to the nation. The celebration ended with a musical concert in the evening which was attended by members of the royal family, members of parliament, and senior government officials.

External Relation:

Bhutan-Norway Friendship Association Launched:

3. Bhutan-Norway Friendship Association was launched on August 10 in Thimpu in the presence of Foreign Minister Damchoe Dorji and the Norwegian Ambassador to Bhutan, Eivind Homme. The association aims to foster people-to-people contact and promote friendship and harmony between the people of Bhutan and Norway. It plans to promote values of democracy, equality, justice and freedom, and strive for international peace and arrange seminars and cultural programmes in Bhutan and Norway.

Australian Funds For Training Rural Women:

4. Rural Education and Development (READ) Bhutan plans to train 90 women in three districts in tailoring and product design this year through Australian government’s Direct Aid Programme which has approved AUD 21,575 (roughly NU 1.05 million) for the project to empower rural women by creating sustainable livelihood opportunities. Handing over the cheque to the READ Bhutan Director, Australian Ambassador Suckling said that everyone would benefit from women’s full participation in economic activities. Australia’s assistance for this project is in addition to another three projects recently funded by the Australian Government through its Direct Aid Programme.

Japan Donates Equipment Worth NU 10M to Bhutan:

5. Japanese government, through Japan International Co-operation Agency (JICA), gave tools and equipment worth NU 10M to Bhutan Telecom. The equipment, about 80 of them, includes OTDR used for fiber cable inspection and trouble diagnosis and road cutter machine, among others. These will be used for the Pilot Project in Jakar, Bumthang and for training programme in Thimpu. The project will start from September this year.