• Govt adds wealth creation to list of SEZ benefits
  The Indian Express, April 30, 2007

• North South Corridor-Road to Prosperity
  Spotlight, April 27-May 03, 2007

• Speak to the people
  Economic Times, April 14, 2007

• Top trade officials meet in India to revive WTO talks
  Houston Chronicle, April 11, 2007

• WTO Leaders Attempt To Revive Stalled Negotiations In New Delhi Trade Talks
  All Headline News, April 11, 2007

• World Bank Praises Growth, Warns of Inequality
  The Cambodia Daily, April 06, 2007

• Nairobi meeting says aid no cure for poverty
  The East African Weekly, April 02, 2007 

 In Media Archive...

Govt adds wealth creation to list of SEZ benefits
The Indian Express, April 30, 2007
 

By Vikas Dhoot

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North South Corridor-Road to Prosperity
Spotlight, April 27-May 03, 2007

By Keshab Poudel

For Dilli Mahat, 32, a resident of Khalanga district headquarters of Jumla district, one of the main achievements of Jumla-Surkhet road link was to see the apple imported from Kashmir ferried by mini truck in the inaugural trip.

Because of lack of transportation facilities, Jumla's residents are compelled to dump tons of fresh apples produced during July-August season. After looking at the truck carrying apple, Mahat now visualizes that soon the apple grown in the district will reach the market of south and across the border.

We can supply fresh apple to Nepalgunj next year as the road links our village with the rest of country and across the border," said Mahat. “Till a year ago, we had a problem on how to export our surplus apple to Nepalgunj and Surkhet but now it seems that we have to worry on how to compete with the apple exported from India."

Mahat's worry is genuine. Merely linking the road cannot bring prosperity and transform economy of Jumla. What is required now is to exploit the competitive advantages of Jumla and places along the road corridor so that poor people of the region can benefit.

The World Bank's Nepal: Interim Strategy Note argues that high transport cost and lack of connectivity are major impediments to Nepal's development. Despite ecological advantages over southern market, places like Jumla's products have high cost discouraging farmers to grow cash crops.

Situated in northern hills of Nepal, Jumla has many ecological advantages to produce agriculture products that southern plain districts cannot produce.

When the temperature in south rises for rice production, the temperature of Jumla and Kalikot of northern region is suitable to grow the cauliflower and other fresh vegetables.

Road networks have many advantages including exchanging goods along the corridor and outside the corridor. Following the completion of east-west highway, Nepal was integrated but it did not bring any transformation in the lives of people of north where poverty and illiteracy is rampant. Despite the huge ecological advantage to produce competitive agriculture products, only a few northern hilly towns were linked to south.

"The completion of road is major breakthrough in the history of Nepal's road transportation. Following opening of the road, it also opens market access of other parts of the country to the products of Jumla, Kalikot and other nearby districts," said Dr. Jagdish Chandra Pokharel, vice chairman of National Planning Commission (NPC).

With full ecological advantages, 232 kilometers long Surkhet-Jumla road corridor can be a boon for the local population as the climate provides it with the best advantage to compete with outside districts.

According to Human Development Index, Karnali Zone is one of the most backward regions of Nepal. From average income to average life expectancy, it is at the lowest rung. With an aim to benefit poor farmers living in north-south corridor of Surkhet Jumla and Chhinchu-Jajarkot road corridor, CEAPRED has been launching LLP since last year.

Encouraging local marginalised farmers to produce the off-season vegetables along the Dharan-Hille road corridor in eastern Nepal, CEAPRED has already gained experiences on how the road corridor can be used to bring the tremendous change in the livelihoods of poor and marginalized farmers.

Although LLP is in the initial phase of implementation, the people living along the road corridor have shown that this is what they require to transform their livelihood.

"The overall goal of the program is to contribute to sustainable rural poverty reduction in Nepal by operationalizing and piloting the north-south corridor development approach introduced by government's tenth plan," said Dr. Piush Mishra, executive director of CEPARED. "Along with off season vegetables, Surkhet-Jumla corridor also has comparative advantages potential for non timber products. Our efforts are to integrate the corridor with market in south so that farmers in north can enjoy their advantages."

The target beneficiaries of LLP are 5000 rural poor and disadvantaged families including marginal farmers, landless families and women headed households and internally displaced persons located within a reasonable hinter road areas along the road corridor. “The project covers 17 VDCs of three districts comprising of 65 wards. In these areas, the project has revitalized 42 existing groups and 104 new groups have been formed covering 3198 households,” said Dr. Mishra.

Under the economic empowerment program, LLP has identified various sectors. In vegetable production, 1202 households have been involved. According to the project, they have been provided with required inputs to grow fresh vegetables in their kitchen garden.

“A total of 78 goats with 2 male goats have been distributed to seven groups covering 172 households under goat exchange program. Out of seven groups, three groups have been rearing goats in collective manner. One collective pig rearing group, belonging to Janjati women has been formed and three piglets have been distributed on an exchange program. Similarly, 460 poultry birds have been provided to two groups. A total of 46 households have been involved in this program,” said Dr. Mishra.

From providing technical knowledge and capacity of farmers to develop a market to sell their products, the LLP will launch its first program in Kalikot in the coming year by mobilizing the local communities.

“We have started some activities in Surkhet-Jumla road corridor with a north south corridor development approach. In a particular part of the year, Surkhet produces certain commodities what Jumla cannot produce because the temperature of Jumla is much lower and vice versa. If you can develop the production system in such a way that links the opportunities that exist in Jumla to markets of Surkhet and further down to the market of Nepalgunj up to the market of India, then the opportunities that you can tap because of natural capital that exist in Jumla can lead to better growth not only in Jumla but also across the corridor because the products that Jumla can produce can have market along the corridor as well as down the corridor,” said Dr. Hari Krishna Upadhyaya, chairman of CEAPRED.

The newly opened road corridor of Surkhet-Jumla covers Surkhet, Dailekh, Kalikot and Jumla districts. They are among the 10 low income districts of Nepal.

“We are covering districts like Surkhet, Dailekh, Salyan, Jajarkot and Kalikot of mid western development region of newly opened road corridor of Surkhet Jumla and Chhinchu-Jajarkot” said Dr. Mishra.

Fourteen Years of Effort

Following fourteen years long efforts, Jumla and Kalikot, two districts of mid-western region are now linked with the rest of the country. The challenge now is how to make them competitive in the market.

Thanks to the Nepal Army, the road was completed on schedule despite years of conflict in that region. This is not the first north south corridor road which Nepal Army has constructed. Trishuli- Somdang road, Okhaldhunga -Katari road are previous examples. Nepal army is now constructing Beni-Jomsom road.

Traditionally our road networks have been dominated by east west high way. The road which opened up access to wider market - is there but the producers have to compete with each other in the market as all of them were producing similar commodities. In the context of north south economic corridor, what we see as the basic advantage is how the producers within the north south corridor don't have to compete with themselves in particular market because they produce different commodities.

Published by the Asian Development Bank and prepared by late Dr. Harka Gurung, Nepal Regional Strategy for Development draws the conclusion that transport infrastructure determines the future pattern of development. “The north south road linkages have now become more extended than when the concept of growth axes was first mooted and these have been superseded by the East-West high way with considerable change in the arterial route system.”

Some half a dozen cars reached Khalanga on April 13 with the vice chairman of NPC Jagdish Chandra Pokharel. The 232 kilometer long road will also benefit nearby districts of Mugu and Bajura of far western region.

Although 112 kilometer long road was completed in 1997, construction of the rest of the road was delayed because of Maoist conflict and lack of budget. Had the Maoists not attacked Nepal Army's road construction camp in Kalikot, the road would have been completely operational long before.

“In a distance of few kilometers, you can find temperature ranging from tropical and warm in the south to cold temperature in north. This diversity is main advantage of Nepal where one can produce a range of commodities ranging from sub-tropical to warm temperature climate,” said Dr. Upadhyaya.

“By promoting the off season vegetables in Dhankuta, we have already shown that by developing the north south corridor for particular product, we can bring prosperity in Nepal,” said Dr. Upadhyaya.

By replicating CEAPRED success story of off season vegetables production of Dhankuta road corridor, millions of poor people living in the northern hills can make a lot of difference in their livelihood.

As CEAPRED has already initiated programs for the residents of Surkhet-Jumla road corridor, farmers can hope that their ecological and biological diversities will offer them with unique comparative advantages and opportunities to grow a wide range of high-value agricultural and forest products in raising their income and enhancing food security.

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Speak to the people
Economic Times, April 14, 2007

By Pradeep S Mehta

The uproar on SEZs and the like is inter alia, most likely the result of a massive communication failure. Both the government and the investors do not have any strategy to address the information asymmetries, which only compound the problem and thus affect progress.

Here let me share a personal experience. On February 1, 2006, I landed at a rather tense airport in Delhi amidst agitations against the handing over of the airport to a private party. Getting into a taxi, I asked the driver why everyone was protesting against something that might be good for all.

“The sarkar is selling sarkari property to a businessman” was the prompt response. Adding, that soon many will be thrown out of their jobs and that he too may not be able to run his taxi on this lucrative route any longer as the new company will run its own taxi service!

The GMR Group that had won the bid for running the Delhi airport in a public-private partnership would build and operate the new airport with a guaranteed revenue share to the government, I tried explaining to the driver. The property will revert to the state after 30 years. The ownership of the airport will remain that of the nation, i.e. of yours and mine, I added. But he was not too convinced!

Over the past few years, several private airlines flying the Indian skies have led to a phenomenal growth in traffic and cargo. But, the existing infrastructure at our airports is not capable of handling the resulting congestion and saturation.

With an expanded and modern airport at least in Delhi, passengers will be able to move in and out smoothly. This will mean a faster turnaround not only for the industry but also for people like the taxi diver. Apparently, neither the government nor the private developer speak to people about the process. Thus confusion reigns.

A cursory look across, would suggest that weak communication and a lack of public understanding and consensus about reforms have been the key impediments to successful economic reforms in many countries. Major reform failures have resulted from closing eyes to the political, social and cultural context within which the reforms take place and not from a failure to put in place the right policy environment.

The privatisation programme of Senegal came to a halt because of a complete absence of consensus in favour of the reforms. Even industrialised countries are not immune to the negative impact of poor communication strategies. New Zealand’s disaffection with privatisation is a revealing case in point in this context.

Back home, the multi-purpose Narmada Valley project highlights how lack of proper attention, resources, and seriousness to public communication about the benefits significantly impair a reform process. The Narmada dam, which has remained a subject of controversy and protest since the late 1980s, is a good example in this context.

Had the authorities recognised the importance of engaging the affected stakeholders, early in the process, the situation would have been entirely different today.

In the midst of this gloom, the contribution communication can make to reform programmes, brings in the much required ray of hope. The reform process in the telecommunications sector of Malawi is a case in point, where the agitating workers were educated about the objectives and rationale of the reform.

Through concerted efforts to institutionalise dissemination of information and systematic stakeholder consultations, it was ensured that the employees acquired a stake in the process. This led to the success of the telecommunications reform in the country. Labour unrest has often resulted due to workers not being involved in the reform process.

The Delhi airport story is one such illustration. The new company running its own taxi service, existing staff being thrown out of their jobs etc., is the resulting baloney of this opacity and silence.

Another good model followed in ‘speaking to people’ in the reform process comes from the water sector reforms implemented in Zambia. From the beginning of reforms, particular emphasis was put by the government on stakeholder participation to make them aware of reforms and its principles.

Considerable consultation at all levels to sensitise the public on the new legal and institutional framework and the new water management approach led to the success of water sector reforms in the country.

Coming back to the Indian context, of late everyone in the policy matrix is speaking about the need of raising $350 billion or so to finance infrastructure projects to meet with the targets set in the 11th Five Year Plan. Substantial amount of this money will have to come from the private sector, whether as a sole investor or in PPPs mode.

As in the Delhi airport case, PPPs are certainly one way forward to garner scarce capital, but are people properly aware of what this entails? They are not. In any event, people are unable to distinguish between private capital coming in as the sole investor or as a partner.

The Singur agitation over the Tata Motors setting up a factory in West Bengal is a good example. The same goes for SEZs. Rather than speaking to people and ensuring that they get a fair compensation for their acquired land and a long-term return, politicos are more bothered about their vote banks.

Effective communication is crucial and is indeed the missing link in all forms of reform programmes, be it pension reforms, privatisation of a large state-owned enterprise, government decision to do away with subsidies, or introduction of a new tax regime (such as VAT).

By informing the public about the proposed reform, its effects on their lives, on the country’s economy, advance awareness campaigns help build confidence in the proposed measures and create a positive environment so that the reform succeeds.

A closed and secretive process to reform is counter-productive. The key to success is realising the importance of right flow of information and listening to people. In a nutshell, irrespective of the canvas of a reform and its importance to a country’s economy, what is crucial is to: speak to the people!

The author is Secretary General, CUTS International, a leading research, advocacy and networking group and can be reached at psm@cuts.org

This article can also be viewed at: http://economictimes.indiatimes.com/

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Top trade officials meet in India to revive WTO talks
Houston Chronicle, April 11, 2007

By Rajesh Mahapatra

Top trade officials from the United States, the European Union, Brazil and India were making progress as they began talks today to revive treaty negotiations to liberalize global commerce, Brazil's trade and foreign minister said.

The Doha round of talks at the World Trade Organization, named after the capital of Qatar where negotiations began in 2001, have been stalled since last July over rich nations' refusal to significantly cut farm subsidies and by the reluctance of developing nations to grant greater access to their markets.

The two-day meetings between top trade representatives of the four major power brokers within the WTO — the so-called G-4 — are their first formal dialogue since they failed to resolve differences and suspended negotiations in July last year.

Officials have since met several times informally either on the sidelines of international conferences or through bilateral forums.

Participants held closed-door bilateral meetings today before a formal dialogue Thursday, when Japan and Australia are expected to join the negotiations.

"Differences are slowly narrowing down," Brazilian Trade and Foreign Minister Celso Amorin said after talks with European Union Trade Commissioner Peter Mandelson.

Amorin said he expects the group to discuss a timeline to complete the deal which has already missed the initial deadline of December last year.

"It is important that the deal is struck. That we keep in mind it is urgent and we try to resolve the problem," Amorin said.

Mandelson told reporters that he was going into the talks with a positive and flexible approach, but declined to predict any possible outcome.

"(We are) always positive ... always showing flexibility and I would do my best to sustain that position on behalf of the EU," he said ahead of his meeting with United States Trade Representative Susan Schwab.

The participants are expected to seek an agreement on key issues such as agricultural subsidies and tariffs, measures to enhance exports from so-called least-developed countries and concessions for poorer nations wanting to protect some of their domestic industries.

Indian Commerce Minister Kamal Nath said the discussions will help efforts by WTO chief Pascal Lamy and trade diplomats in Geneva to hammer out a new trade accord and further liberalize global commerce.

"From these meetings, inputs will go to chairpersons of various negotiating groups (within WTO) and add momentum to the Geneva process," Nath said.

Last week, Brazilian President Luiz Inacio Lula da Silva said U.S. President George W. Bush told him during a meeting that a WTO deal could come within 30 days.

Most trade analysts, however, remain skeptical about any major outcome at the talks in New Delhi.

"The scene is quite dismal. There seems to be very little meeting ground on some of the major issues," said Pradeep Mehta, head of CUTS International, an Indian trade research group.

Also, there has been growing resentment among other members, who feel that the negotiations are being hijacked by rich countries and emerging powers such as India and Brazil. Some of them have threatened to veto any deal, if it lacks transparency and doesn't address their concerns.

This news item can also be viewed at: http://www.chron.com/

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WTO Leaders Attempt To Revive Stalled Negotiations In New Delhi Trade Talks
All Headline News, April 11, 2007

By Jacob Cherian

After the Doha rounds were stalled last July, negotiations have shifted from Geneva to New Delhi over the course of the next two days, with six members of WTO meeting in the Indian capital to revive trade talks.

India, Brazil, the European Union - referred to as the G3 - have combined in their efforts to offer smaller tariff cuts, whereas, the U.S., Australia, and Japan have restricted themselves to bilateral meetings.

The U.S. is seen as a big player in the negotiations since it has taken a tough stand against pruning its farm subsidies.

Although services are a key area for nations such as India, it will take a back seat in the discussions, where agriculture and industrial tariffs will play out a major role.

"It will not be easy since everyone is playing the waiting game," an Indian negotiator told the Times of India daily.

"We will use our persuasive powers on our home