Remarks by Ms. Mieko Nishimizu, Worldbank Vice President, South Asia and NDF Chairperson
Remarks, introducing
Hon. Mahesh Acharya, Minister of Finance,
His Majesty's Government of Nepal
by Mieko Nishimizu, Vice President,
South Asia Region, the World Bank
Heads of Delegation Dinner
April 17, 2000, Paris
Ladies and gentlemen,
Once in a blue moon, in our development work, there comes a moment when we:
put the past behind;
look squarely into the future;
dream what was thought impossible;
choose "a road less travelled by"; and
take that very first step forward.
Time, to suspend disbelief.
Time, to change mindset.
Time to act ... and act differently.
In my 19 years at the World Bank, I have been blessed to witness a few such moments,
and to take a small part in them.
Now, is such a moment for Nepal, and for her development partners.
Frankly, before leaving Washington, I did not expect to say what I just said.
But, I have been listening to Mr. Acharya and his colleagues since yesterday morning,
and reading the government's Country Memorandum,
and listening to the Finance Minister again,
and reading the Country Memorandum, over and over again.
Ladies and gentlemen, this is NOT going to be a Forum,
where donors try to convince the government to reform,
and go home doubting whether we were heard.
This will be a Forum,
where we, the donors, listen -- as deeply as we know how -- to the government's plans for reform,
where we must think actively how we can and must work differently,
and engage openly and spontaneously in a creative dialogue,
with the government and among ourselves...
Minister, may I now invite you to share your thoughts with the development partners?
NEPAL DEVELOPMENT FORUM
Paris, April 18-19, 2000
Opening Remarks
Mieko Nishimizu
Vice President, South Asia Region
The World Bank
Honourable Minister Acharya, members of the Nepali delegation, representatives of Nepal's development partners, ladies and gentlemen:
Welcome, to the very first Nepal Development Forum. It has been four long years since this group last met, here in Paris, as the Nepal Aid Group Meeting. I understand that someone asked, at a preparatory session in Kathmandu, why we now assemble under this new label of Development Forum. I also understand that a member of the Nepali delegation -- who is with us today -- gave a simple, eloquent, answer: It is because this gathering is not just about aid, but about development. Yes, absolutely.
The challenge we share in our partnership with Nepal is to reduce poverty, substantially, in one generation or less. Looking back over the last three decades, Nepal has clearly come a long way toward that goal. I want to emphasize this point, because the strength of our commitment to Nepal tends to make us see the glass half empty from the "outside" instead of half full from the "inside".
Yet still, we must ask: Is the pace of poverty reduction fast enough? Every time I gain a new knowledge about Nepal, I find myself asking this question. And each time, the sense of urgency I feel rises another notch. The number of poor Nepali people has been increasing in recent years. Social tensions have also grown, and now manifest themselves even in a civil unrest -- "terrorist activities" as the Government notes in its Country Memorandum. Surely, these are signs that progress has not been fast enough, and more importantly, fruits of economic growth have not been distributed equitably.
Yes, this gathering is not just about aid, but about development -- with a palpable sense of urgency, if I may add. It is about how the government of Nepal will work differently, aligned totally to reduce poverty and build a prosperous and peaceful nation. It is also about how donors can work differently, individually and collectively as partners, to assist the sovereign people of Nepal secure prosperity and peace within their lifetime.
* * *
Last autumn, I had the privilege of visiting 16 districts of Nepal -- far away from Kathmandu Valley, with three extreme corners of the nation among them. Many Nepali people took their precious time away from harvesting or never-ending household and farming chores, to teach me the reality of poverty in their country.
What is holding you back, I would ask. "Too many governments so fast is no government", said an old Mahendranagar farmer. "Kathmandu is far away", said a Lama village woman north of Simikot in Humla. "Three things hold us back -- #1 corruption, #2 corruption, #3 corruption," said a wise old lady of Ilam whom I shall never forget. Like an ancient poetry, images would change and rhymes vary but the messages remained the same throughout my visit.
When I learned that the Prime Minister, upon taking office last month, made administrative reform and fighting corruption as the key priorities of his Government, I thought of all the people I met on that trip. When I saw, Finance Minister, that your government's Country Memorandum lists "governance, decentralization and civil service reform" high on the reform agenda, I thought of them again.
The Country Memorandum of the government points out many other reforms that are needed. It is a very long list. Practically all the reform measures are desirable ones, but to be honest, not all of them have the same priority. So, in my "glass half full" mindset, I might ask about the priority of specific actions. Indeed, I do hope we can begin to exchange ideas about this topic during this Forum.
But first and foremost, Minister, I want to commend the government for having recognized so explicitly and openly all the hard issues in this document. To come out of the darkness of a denial mode, and to acknowledge politically difficult issues frankly, take integrity and courage. In the South Asia Region or elsewhere, it is rare to witness such a government. Yet, it is the first critical step in capturing the moment and seize the right footing for a better future -- for then and only then one discovers an increasing circle of the like-minded change agents, and gives voice to the silent majority of the poor and the marginalised people. That, by the way, applies just as much to us in the donor community as to Nepal, I dare say.
In particular, I want to refer to the Country Memorandum's analysis of the challenges facing Nepal. It refers to "the present context of poor performance of Nepal's civil service", and stresses that "[a]s an essential element of good governance, the role of a clear, efficient, and result-oriented public administration in ensuring good governance can not be overstated." Minister, how I wished I could return to visit every single Nepali citizen I met last autumn, to show them this Memorandum, so they can spread the word and keep their hope intact.
But, let me make clear an important point: in my travels through Nepal, I have met dedicated and committed change leaders of enormous promise among public servants -- from Village or District Development Committee chairmen, to a doctor in a public hospital or technicians in an irrigation project, all the way to the corridors of the government in Kathmandu including your own Ministry. And my colleagues tell me there are many others, labouring to keep things going or even to turn them around, in an environment that cannot possibly be called "change-enabling". We admire and respect them.
* * *
The Country Memorandum, Minister, has said all the right things about what needs to be done. Even after serious screening of priority, sequencing, time line and readiness for implementation, we can expect that tasks that remain on the list for the immediate and the near future will be formidable. But, when you return to Nepal the day after tomorrow, it will be the time for bold and decisive action.
The coming two days are precious for us -- uninterrupted quality time where leaders of Nepal and the donor community can engage intensively in a dialogue for reform. I suggest that the development partners engage in this dialogue as a group of "true friends" and "honest brokers", calling spade a spade with our characteristic openness and spontaneity. In so doing, I suggest that we adopt a mindset, which views ourselves as privileged "facilitators" of change, for Nepal's change leaders and change agents to take off on a dynamic learning process of social transformation that is development -- of the people, by the people and for the people of Nepal.
At the end of my visit last autumn, I said I met countless women and men -- especially women -- who are discovering the power of self-empowerment, of community mobilization and organization, and of knowledge and learning. They, and others like them, have jump-started that process of sustained social transformation -- grass-roots social mobilization with empowerment, human dignity, and visible shifts in their incomes and quality of life. As I emphasized then in Kathmandu, they are the change agents that will build a nation without poverty. They are the true asset and treasure of Nepal. I believe this Forum can play a historic role in scaling up the impact of these people. It is, to a significant extent, up to us in this very room -- individually and collectively -- to help Nepal make a lasting paradigm shift onto her maximum potential growth path, and to eradicate poverty -- in one generation or less.
NEPAL DEVELOPMENT FORUM
Paris, April 18-19, 2000
Concluding Remarks
Mieko Nishimizu
Vice President, South Asia Region
The World Bank
Honourable Minister Acharya, distinguished members of the Nepali Delegation, representatives of Nepal's Development Partners, ladies and gentlemen:
It has been a stimulating and an unusual Development Forum. It is with a sense of great expectations shared around this table, that I turn to my closing remarks.
Nepal's Development Partners travelled to Paris, anticipating a difficult Forum. We came fully prepared to counsel the Government about the need to face up to tough challenges ahead -- hard reforms required, if Nepal is serious about reducing the scourge of poverty in one generation or less. We came ready to urge the Government to choose "a road less travelled by", zeroing in on the bold actions and taking decisive steps that are needed. We came hoping that we might have a good hearing, but resigned perhaps to an outcome that we would not be listened to.
Instead, we found ourselves asking questions and clarifications, and mostly listening, to Minister Acharya and his Delegation outline a comprehensive reform programme -- the content of which few of us found any disagreements. We found ourselves faced with a tough question the Minister posed: "We are willing and committed to lead the way; are you ready to walk with us?" So, instead, we began to ask ourselves how we can change the way we work in assisting Nepal. We were taken aback by the Government's candid acknowledgement of shortcomings of past development efforts, having created only "a small island of prosperity in the midst of the mainland of poverty" to quote the Minister. We were impressed by the Government's meticulous preparation for this Forum, its appreciation of difficulties that lie ahead, and above all, by Minister Acharya's zest and courage for taking on a daunting challenge.
Our discussions covered a wide range of issues. For now, I will only highlight key themes and messages informally. (Draft official record of the Forum is ready at the end of this session, for you to take home. Please check its accuracy and send us your comments as soon as possible.)
Overall:
There was recognition that, while Nepal over the past three decades has made considerable progress, the pace of poverty reduction has not been fast enough, and the fruits of development have not been distributed equitably. Development Partners shared the Government's concern about rising social discontent and the civil unrest, with a sense of urgency for a fundamental reform for poverty reduction.
Nepal needs a new beginning, to make a paradigm shift to eradicate poverty through a sustained process of social and economic transformation, and this process must begin without delay.
Wide ranging economic and institutional reforms are crucial to bring about this transformation. The Government's leadership in implementing such reforms in a participatory manner, building partnerships and support throughout the Nepali society and especially among the poor and the marginalised people, is critical for success.
Implementation of the reform program, focusing on key priority actions that can be implemented immediately over the next few months, is now called for to convince the people of Nepal that this is the Government that will take the reform agenda beyond rhetorical commitment to make a real difference for their lives.
Finance Minister Acharya outlined a comprehensive agenda of "second generation reforms", the key elements of which include strengthening institutions (particularly the long-awaited Civil Service reforms), improving governance (especially measures aimed at fighting corruption), decentralization, domestic revenue mobilization, improving public expenditure management, financial sector reforms and promoting private sector development, among others. Maintaining law and order, while protecting human rights, to promote both peace and development was also noted as one of the Government's highest priorities. The Minister Acharya stressed the importance of engaging all political parties as well as the civil society in a constructive dialogue for supporting the reform process.
The Government Delegation also outlined a three-pronged poverty alleviation strategy, critical not only for reaching needy and underprivileged target groups, but also for securing broad support among stakeholders in Nepal for the reform program: (i) accelerating economic growth on a sustained basis; (ii) promoting social and infrastructure development; and (iii) establishing a Poverty Alleviation Fund, which the Development Partners were invited to support. The Development Partners offered a number of thoughtful comments and suggestions to be considered in the strategy, and also agreed to discuss further the Poverty Alleviation Fund initiative and its implementation modalities in Kathmandu.
The Development Partners expressed their strong endorsement for the reform agenda, and commended the Government's commitment. Given the wide-ranging nature of the reforms envisaged, the Development Partners counselled the need for prioritizing key actions, emphasizing the critical importance of implementation and of mechanisms for outcome monitoring and evaluation. Minister Acharya informed the Partners that the Government would be monitoring and evaluating the implementation progress routinely, and invited the Development Partners' participation in this process.
The Development Partners strongly endorsed the Government's plan to continue with a participatory reform process, and to bring the poor to the centre of the development process. The Minister emphasized, in particular, that the participatory process of reforms will be an "organic", dynamic, process of learning, where mistakes are expected to fuel learning and successes are to be scaled up strategically.
In order to support such a reform process, the Development Partners agreed that they will adopt the following principles in their work:
Such collaboration would be a learning process for both the Development Partners and the Government;
The Development Partners will steer away from "donor-driven" behaviour and put the government in the "driver's seat"; and
The government will be the manager of donor coordination.
The Development Partners thus look forward to discuss the Foreign Aid Policy being prepared by the Government, and have also committed themselves to review various donor practices with the view to aligning them with the above principles. As such, they agreed to begin and to learn to work as partners in the spirit of "Nepal Comprehensive Development Framework""
I wish to close my remarks on a personal note. Both the Government of Nepal, and the Development Partners, have chosen "a road less travelled by"" A spirit of trust and true friendship that you so amply demonstrated throughout the two days will comfort us as we begin to walk our talk and talk our walk, along what would otherwise be a lonesome path. I am exceedingly proud to be a member of this group, and feet privileged to have chaired this Forum.
Godspeed, and see you next in Kathmandu!
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