EU executive endorses farm aid plan for Africa

from Reuters

Here are some more details on the EU's newly proposed food fund. It is already being welcomed by NGO's that work in Africa. - Kale

By Jeremy Smith

BRUSSELS - The European Commission backed a plan on Friday to give 1 billion euros to farmers in Africa next year to help tackle high food prices and boost output, despite opposition by many EU states.

The EU cash, largely the result of underspending and leeway in the bloc's massive agriculture budget, comprises 750 million euros earmarked for 2008 and the remainder for 2009. This year's amount could be given retrospectively from mid-June.

At least eight EU member countries, including Britain, Sweden and the Netherlands, have questioned the legality of the scheme but have not challenged the merit of the idea.

EU ministers and the European Parliament, which has also voiced doubts about using unspent EU farm funds, will have to agree to the plan before it can enter into force. The Commission would like cash to start flowing in early January 2009.

"There's a fairly broad consensus on the need to act here, given the crisis which is taking place," Commission spokesman Johannes Laitenberger told a daily news briefing.

"In the Commission's opinion, this is the most efficient and most rapid instrument that could be used."

If approved, the money will be channelled to developing countries through international or regional organisations, such as the United Nations and World Food Programme.

Four areas of financial support are envisaged, the main two being to improve access to farming "inputs" like fertilisers and seeds and ways to improve agricultural capacity and production.

But the most difficult debate may come after the summer: how to set eligibility criteria for recipient countries and how much cash will be allocated by country. Those negotiations should be concluded by December, the Commission says.

Criteria are expected to include how much food a country produces to feed itself, its political stability and social vulnerability, its level of food price inflation and reliance on food imports -- including shipments of food aid.

Link to full article. May expire in future.

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EU to improve targeting of Third World food aid

from Reuters Africa

By Jeremy Smith

BRUSSELS - Europe's development and farm chiefs called on Thursday for better-targeted aid to help Third World countries achieve long-term sustainable farming, as a way to feed millions of people while global food prices soar.

While the EU comes under pressure in world trade talks to slash its internal agriculture subsidies, it also faces repeated calls -- as a major humanitarian aid donor and farm producer -- to help developing countries weather the world food crisis.

The EU's executive Commission has suggested a series of short-term measures to boost EU farm production that could be used as food aid and contribute to calming sky-high commodity markets. But long-term solutions are needed too, experts say.

"It is so important that we have short-term solutions on food aid and long-term solutions to make it possible for developing countries to feed their own," EU Agriculture Commissioner Mariann Fischer Boel said.

"It is much better to send them a fishing rod instead of sending fish," she said. "And micro-management in Third World countries is not the way forward. More trade will be part of the solution," she told a conference debating the world food crisis.

Anti-poverty agency Actionaid says developing countries lose 100 billion euros a year in trade, twice as much as they get in aid. To halt this, it says, Europe should remove some of the protectionist elements of its farm policy.

Later this year, EU ministers will negotiate a mini-reform of the bloc's Common Agricultural Policy (CAP) that should phase out safety-net public purchase of commodity stocks at fixed prices, and subsidies still linked to production volumes.

CAP spending amounts to around 44 billion euros a year, some 40 percent of the EU's entire annual budget.

"NO-BRAINER"

The conference was organised by EU president France, which only this week accused EU Trade Commissioner Peter Mandelson of offering too many concessions on agriculture in a bid to secure a deal at the Doha round of world trade talks. Mandelson said he was being undermined at a time when the EU should stand united.

His Commission colleague in charge of development, Louis Michel, said recipient countries would do better to channel donations to their farm sectors, adding that many governments still had to be persuaded to prioritise EU aid for agriculture.

Michel said he also agreed with an idea previously floated by French Agriculture Minister Michel Barnier, hosting the conference, to set up "regional country markets" -- particularly in Africa -- to pool farm resources by jointly managing rivers for irrigation, creating collective grain storage, and so on.

"We should strive to come up with a targeted aid package for a specific region," he told a news conference later.

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Europe bashed for failing aid targets

from EU Observer

The European Union is risking embarrassment on the global stage for falling €75 billion short of its promised target to help the poorest nations by the end of this decade, according to a report by a coalition of anti-poverty groups.

The study to be presented on Thursday (22 May) by leading aid NGOs, such as Oxfam International, ActionAid and CARE International, suggests that figures provided by national capitals in recent years were "distorted and over-flattering," according to the AP news agency.

"The official figures still fail to provide citizens with a true picture of their government's contribution," write the authors of the paper, adding that the EU's member states spent around €8 billion in what aid groups consider to be non-aid items.

The major part of that sum - €5 billion - was not actually spent but written off from the debt of poor countries. Other areas not considered by anti-poverty groups as worth being called "development aid" include payments for housing of refugee applicants in Europe.

France, Germany, Greece, Austria, Italy and Portugal are singled out as the countries with the clearest tendency last year of inflating official figures for assistance.

The activists argue that the only way the 27-strong bloc can avoid losing credibility among its own citizens and developing nations is by signing up to a rigorous annual timetable to meet agreed goals.

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EU in U.S.$247m Global Food Aid

from All Africa

East African Business Week (Kampala)

By Phillip Nabyama

All East African Community (EAC) countries but Rwanda are lined up for a massive food relief programme by the European Commission (EC) on the back drop of a detailed assessment on the levels of food insecurity.

Following the EC assessment, 17 priority countries were selected to benefit from the food programme valued at 160 million euros (US$247,041,201), the biggest annual amount to date.

"Vulnerable people in many of the world's poorest countries are increasingly exposed to natural disasters, conflict and economic pressures that can rapidly lead to situations whereby people go hungry. The European Union has an essential role in providing them with food aid, and in restoring food production," Mr. Louis Michel, the European Commissioner for Development and Humanitarian Aid (ECHO) was quoted in a statement.

Beneficiaries will include refugees, internally displaced people (IDPs) and host communities in areas affected by population displacement. Children and young mothers will be given priority. The EAC countries aside, the global food programme to feed about 18.7 million people will also benefit Sudan, Chad, Somalia Ethiopia DR Congo, Liberia, Zimbabwe and the Sahel Countries. Other countries are Afghanistan, Nepal, Sri Lanka, Colombia, West Bank and Gaza Strip.

According to the Food and Agriculture Organisation (FAO), 854 million people are estimated to face chronic hunger across the globe. UNICEF and Save the Children statistics for May 2006 show that there are about 146 million malnourished children in developing countries and that 5.6 million children die annually due to malnutrition.

Mr. Morten Petersen (pictured left), the head of ECHO in Uganda said that although the programme funds are now available, ECHO and the World Food Programme (WFP) were still finalising on the finer details of the programme for Uganda.

"No food is yet out in the field. The figure will be significantly less since the situation in Northern Uganda is returning to normalcy," Petersen told East African Business Week.

WFP is currently implementing another food decission worth euros3million ($4, 631,980) that ends this March. Through 2007 to date, WFP has implemented food decission worth euros 8 million ($12, 352,060) on behalf of ECHO.

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Study faults EC over awkward aid dispensation

from IPP Media

By Perege Gumbo

A latest research has mentioned the European Commission (EC) as the most inept institution in aid dispensation to poor and developing countries.

The study was undertaken by consultants of Dar based Daima Associate Ltd and was commissioned by UK�s Department for International Development (DFID).

The EC is the executive branch of the European Union responsible for proposing legislation, implementing decisions, upholding the Union`s treaties and the general day-to-day running of the Union.

Presenting the final findings in Dar es Salaam recently, the Director of Daima Associate Ltd Dr. Samuel Nyantahe said that most non governmental organisations (NGOs) and Community Based-Organizations (CBOs) viewed the aid from the European Union as the most bureaucratic, and consequently perceived as generally being ineffective in fighting poverty.

The research was based on the premises of the March 2005 Paris Declaration, which committed developed countries and organisations to continue to increase efforts in harmonisation, alignment and managing aid for results with a set of monitorable actions and indicators.

The overall objective was to help developing nations and poor nations overcome poverty in more meaningful ways.

Subsequent to the Paris Declaration, an agreement was reached that intensive researches be carried out seeking to analyse to what extent donor aid has been effective and what the recipient countries would prefer be done for such aid to be seen as becoming more results oriented.

For one thing, the Declaration commits donor and developing countries to be mutually accountable for development results.

The study covered six countries of South Africa, Zambia, India, Bangladesh, Ghana and Tanzania from where data has come to conclude that recipients of donor aid wanted funds to pass through the United Nation Development Programs (UNDP) and the African Development Bank (ADB) rather than other channels.

In Tanzania, research involved stakeholders such as parliamentarians, government ministers, civil servants, the private sector, and representatives from NGOs and CBOs.

From the results of the study, the UN organizations such as the UNIDO and UNICEF were most preferred because of their emphasis on building capacity needed by the recipients and for being in line with most government policies Nyantahe said.

One of the criteria for measuring the effectiveness of aid was governance which seems to exert important influence on disbursement preferences.

Under this criterion, the overall responses were that Africa Development Bank (AfDB) was rated poorly for the most of the 15 effectiveness indicators.

However, despite, AfDB poor rating, respondents in three of the four African Countries studied preferred it over the European Commission and the World Bank as disbursement channels for aid.

The study had also come to discover that recipient stakeholders perceptions on aid effectiveness differ from the donors understanding.

For instance, bilateral donors would place more emphasis on outputs and outcomes while recipient stakeholders appeared to be much more interested in ownership and governance.

In the upshot, it has become unquestionable that ownership of the development process was critical to aid effectiveness, while taking into account aid recipient`s perceptions was even more critical while assessing the overall effectiveness of donor assistance to poor countries.

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EU Plans European Microcredit Fund For Developing Nations-AFP

from Nasdaq

BRUSSELS (AFP)--The European Commission Monday unveiled plans for a new fund to encourage microcredit or small loans popular in the developing countries, in Europe.

E.U. Regional Policy Commissioner Danuta Huebner said the new fund would have about EUR10 million-EUR15 million to be used to "finance the loan activities of non-bank microcredit financial institutions."

The money, which would come from contributions from the European Investment Bank and other sources, would be managed by a new body whose staff would also provide expertise to microcredit lenders.

The initiative aims to make credit more easily available to small companies and unemployed or inactive people looking to set up a business, who are often overlooked by traditional banks.

"Microcredit is a highly effective way to develop new businesses or to help the unemployed back into the mainstream economy through self-employment or micro-enterprise development," Huebner said.

The Commission estimated that there was EUR6.1 billion of pent-up demand in Europe for microcredit, with such loans typically averaging EUR7,700 in the European Union.

Microcredit has been in the spotlight recently since Muhammed Yunus, an economist from Bangladesh, won the Nobel Peace Prize last year for pioneering such lending through his Grameen Bank.

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EU Takes Poverty Alleviation Route to End Decades-Old Conflict

from All Africa

The Nation (Nairobi)

NEWS
2 November 2007
Posted to the web 1 November 2007

By Kennedy Masibo
Nairobi

The conflict between the Njemps and the Pokot communities in the larger Baringo District might soon be over.

This follows the putting in place of a new strategy to promote peace in the area.

Some Sh21,580,994 has been donated by the European Union (EU) towards programmes that will reduce conflict arising from use of natural resources.


More than 40 people have so far been killed in incidents related to cattle rustling and other criminal activities.

Several members of the Njemps community have fled their homes for fear of attacks.

The EU, through the Community Development Trust Fund (CDTF), has given the money to Ruko Conservation Group that comprises members of the two communities.

Mr Joseph Ruhiu of CDTF said the programmes introduced in the area would be joint ventures of the Government and the EU. The focus will be poverty alleviation.

Mr Ruhiu said the conflict revolved around pasture. This could be addressed if the communities were involved in income generating activities.

Hides and skins

Income generating activities include sale of hides and skins, bee-keeping and creation of a common conservancy.

"The communities will be expected to contribute towards promotion of local tourism," he said.

They will also be expected to promote peace by using various natural resources in the area.

Mr Ruhiu said the initiative would promote peaceful coexistence. Also to be promoted are socio-economic activities.

The group in charge of the initiative will be mandated to give priority to any project considered viable.

The Baringo county council has also endorsed the project and will support it.

The Baringo East district commissioner, Mr Mutuka Mwenga, welcomed the initiative.

The programme will also address the causes of siltation in Lake Baringo and tackle water management.

Reverse the trend

According to the study, the Lake Baringo neighbourhood is degraded and the conservation group will have the opportunity to reverse the trend.

Overgrazing in the areas next to the lake has led to the siltation.

Mr Ruhiu was confident that after the three-year project was concluded, there would be harmony as various economic ventures would have taken off.

He said young men, who used to engage in cattle rustling and criminal acts, would be involved in wildlife protection and other gainful ventures.

One of the burning issues, according to him, was the high rate of literacy. Ninety eight per cent of the population is illiterate.

The issue, Mr Ruhiu said, had to be addressed.

With frequent interaction of the members of the two communities, harmonious working relation will be cemented.

Mr Ruhiu said such initiatives should be applied in other areas with similar conflicts.

The Baringo branch of the Kenya National Union of Teachers is supportive of the initiative and wants to be incorporated in it.

Branch executive secretary Charles Kamuren said that teachers played a crucial role in peace building.

Frequent raids

"They know parents and their children. Therefore, they can influence behavioural and attitude change," he said.

Mr Kamuren said during the raids, particularly in Makutani and Marigat divisions, a number of schools are closed.

The initiative should involve teachers, he said, noting that already Knut had started a peace-building process.

Mr Kamuren said students and pupils on a number of occasions were requested to write essays on the cause of insecurity and the remedies.

He said students were also taught about retrogressive cultures that should be discarded.

The students are then used as peace ambassadors in the village and deliver peace messages.

The Knut official said that for the various programmes to succeed and be sustained, the officials appointed to various committees should be transparent and effective.

He suggested that leadership should be given to the youths, who have a vision to sustain peace and enhance development.

Decisive action

Mr Thomas Lentangule, a lawyer from Njemps community, says there have been many raids in the past two years.

"At one time, eight primary schools were closed and houses of innocent people destroyed," he said.

He claimed that 1,000 head of cattle had so far been stolen from the Njemps.

The cattle rustling, he said, had affected the economic activities of the people and disrupted their livelihoods.

Mr Lentangule blamed the Government for not taking decisive action when such attacks happen.

"Sometimes the security personnel are deployed for a short time and when normalcy returns, they are withdrawn only for the raiders to strike again."

He also blamed some retrogressive cultures among the conflicting communities, for encouraging cattle rustling.

Creation of conservancy

The lawyer appealed to the Government to disarm warriors in the two communities.

He called for the creation of conservancy such as the one in Laikipia that will encourage ecotourism.

Outgoing Baringo East MP and assistant minister Asman Kamama welcomed the initiative by the EU.

He said more well-wishers should support the initiative, taking into account that the two communities live in abject poverty.

Mr Kamama said that in the last five years, more boreholes had been dug for the pastoralists.

Members of the Pokot and Njemps communities during a peace-building function.

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EU Bolsters Anti-Poverty Campaign

from All Africa

New Era (Windhoek)

NEWS

By Petronella Sibeene
Windhoek

Four civic organisations working towards alleviating rural poverty in Namibia yesterday received financial support to the tune of N$25 million from the European Commission.

The funds form part of the N$143 million of the Rural Poverty Reduction Programme funded by the European Commission through the National Planning Commission (NPC).

The Namibia National Farmers' Union received about N$9.2 million.

The funds, according to the Programme Coordinator, Oloff Manjanu, will be used for the Hoodia Commercialisation and Poverty Reduction project.

hoodia is a succulent plant that grows in the Kalahari Desert in Southern Africa. One of its species, Hoodia Gorgonii had its appetite suppressant elements isolated in 1977 as P57 and is made into dietary pills that are in high demand in the US and Europe.

The project, to take place in the Hardap and Karas regions is regarded as the first phase of a national project by which hoodia will be commercialised and developed into as new industry for the country. Some of the funds will be channeled towards other initiatives related to the indigenous plant task team as well as the succulent cultivation project together with the hoodia working group.

"We want to maximise production and involve community members so that they can also benefit," said Manjanu.

Another beneficiary of the EU funds was the Rural People's Institute for Social Empowerment in Namibia (RISE Namibia), which promotes rural micro-finance institutions. RISE received about N$3.8 million.

RISE will use the funds to expand its savings and credit sssociations programme aimed at creating a viable member-owned financial institution to serve the needs of the rural population.

The Namibian Development Trust received about N$5.6 million and according to the director of NDT, Ronny Dempers, the funds were received at an opportune time when the organisation with the rest of the world intensify campaigns under the banner, the global call against poverty.

The fourth beneficiary, Integrated Development and Nature Conservation received N$6.2 million. The organisation operates in the Caprivi and Kunene regions. It secures wildlife outside parks resulting in increased tourism in these two regions.

"The money will enable the conservancies to become sustainable. It will cover running costs and contribute to rural poverty reduction," said project manager, Colin Nott.

European Commission Ambassador to Namibia, Elizabeth Pape, said the financing is aimed at stimulating rural activities hence improve the livelihood of the rural masses. She urged beneficiaries to use the funds for their intended purpose adding that the money comes from taxpayers in the EU countries as such, the EU office in Namibia is expected to give feedback or account for the funds.

Acting Permanent Secretary at the National Planning Commission (NPC), Sylvester Mbangu, on behalf of the Director General Helmut Angula, expressed gratitude towards the EC and their role in fighting poverty in Namibia.

He said the success of the projects will represent part of an emerging new relationship between Namibia and the civic organisations in tackling developmental issues.

"Government recognises that civic organisations play a vital role in providing links to local communities and therefore it is to be hoped that these projects will strengthen the partnership," said Mbangu.

Since independence, poverty reduction and income inequalities have been the main thrust of Government and yet more still remains to be done.

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EU to increase trade support

from Africast

DAR ES SALAAM, October 04 -- The European Union (EU) will increase trade assistance to developing countries by Sh95 billion in the next three years.

European Commission top officials said in Dar es Salaam that countries in Sub-Saharan Africa, most of who are negotiating a new trade regime with the EU under the Economic Partnership Agreements (EPAs), will receive most of the funds.

"These funds are used to help develop the capacity to trade in partner countries by providing training and technical assistance, supporting private sector development, meeting health and safety standards for export, and facilitating regional market building," says a statement released by EC offices in Nairobi.

"In 2006, the continent received around 40 per cent of the total EC Trade Related Assistance (TRA), which amounted to Sh89.3 billion ( 940 million)," indicated the statement.

The announcement comes barely three months before the EU and a block of the African Caribbean and Pacific (ACP) countries sign a trade pact to replace the Cotonou agreement that ends in December.

The Cotonou agreement provides ACP countries, including Kenya, duty and quota free market access to the EU market.

Some WTO members had contested the Cotonou agreement saying it gave special treatment to some countries.

Kenya is negotiating EPAs under the South and East Africa (ESA) group of countries, most of them members of the Common Market for East and Southern Africa (Comesa).

"The Commission has provided TRA to Africa since the beginning of its development cooperation, and its engagement is solid and increasing," the statement says.

In addition, the EU (Commission and Member States) supports the development of infrastructure in Africa for around Sh190 billion per year and has launched a EU Infrastructure Partnership for Africa to develop interconnectivity.

The commission has pledged to set up an Infrastructure Trust fund with the European Investment Bank later this month.

"In its initial phase, the Trust fund will receive grants for  87 million from the EC and Member States, while the EIB agreed to mobilise up to  250 million in loans," says the Commission.

On the proposed Aid for Trade, EC says it is an essential vehicle to enhance regional integration and trade between developing countries.

It can help attract investment and build economic growth and poverty reduction.

"In the case of sub-Saharan region, the EC is also committed to support the aid for trade needs arising from the Economic Partnership Agreements," it says.

The EU attended a two-day WTO review of trade related assistance meeting for the African region in Dar es Salaam.

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EU Gives Sh 1.7bn to Fight Poverty in Coastal Areas

from All Africa

Business Daily (Nairobi)

NEWS

By Allan Odhiambo

Coastal communities and five neighbouring countries are to benefit from a Sh1.7 billion initiative by the European Union aimed at sustainable use of marine and coastal resources.

The environmental project offers the communities an opportunity to protect and develop habitats, while exploiting them to alleviate poverty through fishing, tourism and other income generation activities.

Though tourism and fisheries have been the backbone of economies along the coastal strip, activities such as indiscriminate fishing, mangrove cutting and quarrying threaten the environment.

The initiative to stem the slump will be coordinated by the Indian Ocean Commission (IOC) through a special vehicle dubbed the Regional Programme for the Sustainable Management of the Coastal Zones of the Indian Ocean (ReCoMap). "We targeted communities that are directly affected by the state of resources.

We want them to come up with ideas on how best the resources would be improved and managed to better their livelihoods," Mr Patrick Kimani, who heads the Kenyan chapter of the initiative, told Business Daily.

He said the key objective of the programme is to contribute to the reduction of poverty through improved conservation and sustainable management of natural resources. Mauritius, Comoros, Madagascar, Tanzania and Somalia are also part of the programme that is projected to run over the next five years.

It also has the backing of the East Africa Community (EAC), the Common Market for Eastern and Southern Africa (Comesa) and the Inter Governmental Authority on Development (IGAD).

Through ReCoMap, the National Environmental Management Authority (Nema) is expected to develop and possibly adopt a national integrated coastal zone management plan (ICZM).

"We are looking up to assistance through the programme to come with a comprehensive plan that would guide future management of resources in the coastal zone," Ms Caroline Anyango of Nema said.

According to the blueprint of the initiative, populations in the coastal areas are required to enter into formal clusters such as Community Based Organisations (CBOs), Non-Governmental Organisations (NGOs) or local authorities through which they would select projects they would wish to implement.

"We shall begin receiving the notes on the concept the communities wish to pursue beginning November, after which we shall call for full project proposals for evaluation and advice," Mr Kimani said.

Successful projects would each attract funding of between Sh930,000 and Sh9.3million depending on the scope of work. " The funding structure is that the programme would meet 95 per cent of the implementation cost while communities would provide the rest in cash or kind," Mr Shafick Osman, a communication officer with ReCoMap, told Business Daily.

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Annan Tells EU to Help Continent End Poverty

from All Africa

East African Standard (Nairobi)
NEWS
Nairobi

Africa needs a Marshall Plan anchored on a rejuvenated agricultural sector to rescue the continent from poverty and steer it to economic prosperity.

Former United Nations Secretary General, Mr Kofi Annan, urged European Union leaders to shift aid policy towards supplementing efforts by the African Union to spur agricultural development to end the cycle of poverty.

"Sustainably improving agriculture for Africa's small scale farmers and entrepreneurs is essential for short and long term economic progress," Annan said yesterday during the opening of the 29th Assilah International Cultural Festival in Morocco. Foreign Affairs minister, Mr Raphael Tuju, was among high ranking Government officials representing Africa and Europe.

Presenting a paper on Africa and Europe, "Common Challenges and Commitments of Others", Annan urged EU leaders to walk the talk and actively assist Africa effect fundamental changes in its agricultural sector ahead of the December EU/AU summit in Lisbon, Portugal.

"I hope the EU will make promoting a Green Revolution on this continent an essential part of their vision," he said, noting that the achievement of the Millennium Development Goals was strongly linked to agriculture.

Annan, whose term as UN boss ended early this year, is the chairman of the Alliance for Green Revolution in Africa, an initiative launched last year to sow and nurture agriculture in the continent plagued by hunger.

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EU aid to Africa blocked in "legal and funding delays"

from The Rwanda Information Exchange

European Development Ministers meeting today and tomorrow in Bonn must act immediately to break through "legal and funding delays" and deliver untied and targeted aid to the world's poorest countries, said a coalition of European and International development NGOs working under the Concord Cotonou aid umbrella.

Aid promised by the European Union to African, Caribbean and Pacific (ACP) countries under the European Development Fund (EDF) package is simultaneously being blocked in bureaucracy and made conditional on the signature of unfair trade agreements set to come into force at the end of this year.

"In the state it is in, ACP countries should not expect EU aid to right the wrongs of the unfair trade deals they are asked to sign," said Rein Antonissen, Chair of the Concord Cotonou Aid Group. "Quality aid must not be lost in a legal and financial loophole where the stakes are so high".

Close to one-third of the €9 billion allocated to the 9th EDF was still available at the end of 2005.

And as the European Commission and EU governments continue to assess how to reallocate the unspent sums there is no clear logic on where the money is going and how it is being spent.

In 2000 there was a delay of almost two years between approval and ratification of the Cotonou Agreement between the EU and ACP countries. And now that the EU has expanded to 27 countries there is a serious risk that not one cent will be spent before 2010 when the 10th

European Development Fund is ratified.

"While funds do not leave Brussels in time, money that is unspent by the ACP countries is re-allocated without any clear criteria on how this is done," said Antonissen. "Health, education and rural development priorities are being ignored and it is likely that ACP countries will end up receiving less real aid then they ever did before".

Even though Rwanda, the Democratic Republic of Congo and Mauritius have received substantial extra funding as part of this reallocation process, others such as Uganda, Sudan and Botswana have received none. Senegal, Malawi and Chad have also had money withdrawn from them, even though they have a high commitment rate and their administrations have shown a clear capacity to absorb EU aid effectively.

"The coming years will be of critical importance if we are to see any tangible progress towards meeting the UN's Millennium Development Goals and the chance to reduce extreme poverty by 2015," said Hussaini Abdu, from ActionAid International Regional Governance Coordinator for Africa. "The EU needs to support the rights of Africa's poor to health, education and accountable governance by ensuring delivery on existing commitments to the ownership by African states of their own policy priorities".

Initial findings indicate that 63 out of 77 ACP countries are not to receive funds for health and education as part of the new 10th EDF. Instead, the Commission is seeking to increase

allocations to promoting trade and ‘good governance' focusing on economic liberalisation rather than the eradication of poverty.

"It is inexcusable that the Commission now seems to behaving as if those commitments were never made and is following an agenda that sends the wrong signals about Europe's role in the wider world," added Abdu.

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Friends In Need Friends Indeed

from The Nepal News

Internally, the politicians in power are totally confused about the sense of direction they need to have. However, the most fortunate thing in the present time Nepal is that the western developed countries have shown enormous concern for the Nepalese people providing institutional as well as economic support. At a time when Nepal , which is inevitably headed towards more political crises and mysterious uprisings by various brands and groups, is passing thorough a dangerous phase in its history presenting a gloomy picture, there are some signs of hope as well. For Nepal ’s economic development, the countries of Western Europe and Japan , which have no strategic and economic interest in Nepal – have been sincerely and purposefully providing aid. Despite losing political stability, peace and prospect for fast development, Nepal’s internal institutional capability with reflection of popular opinion and support from developed west generates those hopes

By KESHAB POUDEL

The first European minister to visit Nepal following the successful People’s Movement II was Norwegian Minister for International Development Eric Solheim who came with a package of financial and other supports. He was preceded by Richard Boucher, US Assistant Secretary of State for South and Central Asia .

The next visitor was from Denmark . State Secretary of Ministry of Foreign Affairs Carsten Staur came with the offer for Rs 2 billion assistance for alternative energy, peace process and constituent assembly. Then, European Union’s five member delegation led by Neena Gill arrived in Nepal .

Similarly, Japanese senior vice minister for foreign affairs Yashuhika Shiozaki came to Nepal with further offer for assistance. British government announced increase of financial assistance to Nepal by 10 percent to reach 4.29 billion through DFID.

Likewise, Finland government agreed to provide assistance worth Rs. 1.49 billion for the operation of drinking water and sanitation project.

According to annual budget for 2006/2007, the government is expecting foreign grants of Rs 23.72 billion and loans of Rs.16.9 billion.

Everything seemed to have been destroyed, but there is worldwide concern about troubles and miseries of Nepal when the concept of global village is being practiced even in Nepal and in the community of the countries of the world.

Although internal political scenario of present time Nepal indicates that a dark cloud is looming large over Nepal , this is not the only occurrence. One can also notice a silver lining around the dark clouds over that distant horizon.

” The most fortunate thing in present time Nepal is that the developed countries have enormous concerns for the people of Nepal and their well-being. Therefore, the help and contribution to Nepal in economic as well as institutional support has increased enormously even as, internally, the politicians in power seem disoriented,” said a political analyst.

According to a senior official at the Ministry of Finance, the amount of foreign aid including budgetary support has gone up considerably compared with the previous years. “Some of the donors are even providing budgetary support for us at this juncture,” said Rameshwor Khanal, acting secretary of Ministry of Finance.

” Many conflict-ridden countries in the world don’t have that kind of continual support during their crisis period and in the process of reconstruction and rehabilitation. Nepal is yet a manageable country even amid its crisis,” said the analyst.

Generous Support

According to the Ministry of Finance report on foreign aid, in the fiscal year 2006/07, these countries have offered valuable contribution in terms of budgetary support and other aid. Japanese under the DRF committed more than Rs1.89 billion and Rs 285.721 million under KR 2. British government through DFID committed Rs 1.16 billion. Germany under GTZ committed Rs 1.74 million and through KFW Rs 155.65 million. Denmark has pledged Rs 548.87 million. Netherlands through SNV has committed Rs 48.12 million; Australia Rs 8.15 million, France Rs 37.22 million, Norway Rs 53 million and USAID Rs 7.88 million as budgetary supports.

Along with the budgetary support, these countries have also committed other kinds of aid including turn-key projects. In total Germany has contributed Rs 2.99 billion and Japan provided Rs1.89 billion through DRF, Rs 415 million through JICA and Rs 204.5 million through Japan and Rs 285.7 under KF2. Similarly, DFID provided Rs 1.25 billion, Denmark Rs 859.5 million, European Union Rs 134.22 million, Netherlands (through SNV) Rs 209.015 million and Nordic Development Fund Rs 65.70 million, Switzerland (through Helvetas) Rs 48.056 million and Rs 156.492 million through Swiss Development Cooperation (SDC).

Although they are highly developed in terms of technology, the countries of western Europe and Japan are supporting Nepal in the areas of rural development and other sustainable development.

“Rural development and grass-root level institution building are two important areas where Nepal needs support. Having their early experiences in these areas, these countries can contribute a lot to build the basic institutions,” said Dr. Shankar Sharma, former vice chairman of National Planning Commission (NPC). “Being a small rural based economy, people can benefit from small projects than the big ones. Donors know that.”

With a population of 26 million, Nepal has many challenges for development. From reducing poverty to providing employment opportunities and offering education, Nepal is facing multi-pronged challenges.

Why these countries from western Europe and far east which have no strategic or economic interest in Nepal are so sincerely and purposefully involved in Nepal’s economic development? It is because they see growing economic disparity and challenges.

“Nepal’s economic disparity, like all other underdeveloped world, is a concern of the democratic societies of the west. The ways the priorities are fixed up, one is amazed how these highly industrialized and high tech counties have been emphasizing upon improved traditional technology as well as intermediate technology for the present solution to Nepal’s problems. Some of our politicians and planners are completely ignorant and had neglected that for long. If our planners and politicians are given to choose, they will definitely ask for latest and highly sophisticated technology for even non-productive sectors,” said the analyst.

Even Sweden’s International Development Agency is providing grant to Nepal. There are various other United Nations agencies and INGO also involved in accelerating the development activities.

One of the hopeful signs is that many western industrialized democratic countries are supporting Nepal to overcome the present challenges. Not only Nepal’s two neighbors and regional military juggernauts India and China, there are many western industrialized developed countries and Japan continue to express their commitments for the development of Nepal through their financial contributions.

Compared with the contribution intermediate powers of western world, the contribution made by Nepal’s two immediate neighbors is small. But that too is growing.

“Britain and Denmark are directly helping for budgetary support. Japanese and German aid are focused on infrastructures and rural development but they don’t allocate money for budgetary support,” said a senior official at the Ministry of Finance. “India and China both Nepal’s neighbors are now showing interest to contribute to budgetary support.”

After the royal takeover in February 2005, Denmark withdrew major projects from Nepal. Denmark pulled out from community forestry program, which was one of the successful programs supporting the livelihood of millions of poor people of rural Nepal because of arrogance of then first vice chairman of council of ministers Dr. Tulsi Giri.

Of course, some countries attached certain conditions including the universal values like social inclusion, good governance and rule of law. These conditions sometime supported to derail democratic process of Nepal. In the name of good governance, the government was compelled to draft a draconian law creating an unaccountable anti-graft commission like Commission for Investigation of Abuse of Authority - which was used to destabilize the democratic process.

Hope and Despair

As Nepal’s traditional legitimate institutions have been badly shaken and newly set up institutions are yet to take roots and/or build capability, the crisis often goes out of hand because of confused and directionless leadership.

The recent terai agitation showed how confusion rules the mind of Nepalese leaders. Amid these confusion in minds, anybody can create problem in the country. From Tharu to other indigenous groups and even student wings of political parties can unleash havoc any time.

“If the government does not accept our demand to set up a separate autonomous Tharuwan region in terai, we will paralyze the life of Nepal blocking all transport,” said president of Tharu Kalyankari Sava. “This is a warning as well as suggestion.”

At a time when Janjatis, Dalits, trade unions, transport entrepreneurs, women, farmers and other ethnic, religious and linguistic groups are in a queue to repeat the success by Madhesi Janadhikar Forum (MJF), Nepal’s coming days are definite to be gloomy.

From street to political forum, contradictions and controversies are rampant everywhere. “Nepal is passing through a very difficult phase of its history as it has lost its political stability, peace and prospects for development. Whatever was built up in the recent half century of history in the form of norms and values of political system have been severely damaged,” said the political analyst.

Anarchy Step by Step

To put Nepal into the present unstable and anarchic shape, the political parties took several steps. First they destroyed a workable constitution through a parliamentary proclamation in April, 2006. The proclamation, among others, snatched all the powers of the monarch.

“The constitution, which was promulgated in 1990 after an extraordinary consensus of the popular political forces, with its unchangeable basic structure has been summarily abrogated by a reinstated parliament, which had neither legal nor moral authority to do so. Judiciary including the Supreme Court has been downgraded by an unaccountable executive power,” said the analyst.

To consolidate the power snatched under parliamentary proclamation, Seven Parties Alliance and Maoists (SPAM) prepared an interim constitution cornering entire prerogatives with them. However, less than twenty-four hours after the promulgation of the present interim constitution, a mysterious uprising erupted in the southern belt of Nepal, which was successful to snatch away political concessions of a far reaching negative consequence.

“There is no visible center of power for ultimate decisions but things are happening everyday in a planned and orchestrated manner. People are brought into the street in a violent mood to face any consequence,” said the analyst.

Without any debate in the parliament, leaders of eight parties under the leadership of octogenarian prime minister Girija Prasad Koirala, who is not in good health, announce decisions whenever they feel necessary. Even prime minister Koirala announced the same decision twice in a week.

“But this is not end of the history of Nepal. Nepal still has capability to withstand challenges and onslaughts of time,” said the analyst. “Be it the street or the seat of power, as long as organized interest has free place in society, there remains a hope of ventilation of popular sentiments and public grievances. Though the leaders may not have the decisive power with them and thus succumb to the machinations of invisible centers, they are bound to reflect the organized opinion of their following masses.”

Silver Lining

Every thing appears to have been influenced by an extremly negative pressure for a drastic change without any definite outlook and sense of direction. What Nepal had achieved in its long history of self governance and particularly under a democratic process initiated after great change of 1951, those elements are yet upholding the basis infrastructure and rules of governance. Though disorganized but their contribution to uphold the governance is yet to die. This is not complete break down of state power.

B.P. Koirala in his recent book King, Nationalism and Politics said, “I have learned the inherent strength of Nepal. Let whatever come, Nepal would survive.”

“B.P. Koirala understood the instinct of survival of this country very well. B.P. reached to that conclusion by his long experience in his leading role in the politics of this country. Whether it is King Prithvi Narayan Shah or a commoner B.P. Koirala, both of them have left an inspiring legacy behind them,” said the analyst. “Nepal has institutional support to get the popular opinion reflected though that may not be carried on. In that inherent contradiction of organized political articulation, Nepal has a hope to tackle challenges of present time.”

As the country’s traditional power structures and political institutions are badly shaken and new institutions are yet to evolve, Nepal alone cannot carry out the development programs to meet the aspirations of people and achieve sustainable economic growth. Here the generous aid provided by western industrialized democracies are very much valuable.

Reorganizing the State

Nepal for quite a long time has been living a particular way of life as institution of monarchy was at the center of power. Though eight political parties scrapped all authority, monarchical opinion is overwhelming in Nepal. Even the revolutionary leaders of eight parties often express fear about the revival of the monarchists in Nepal, which indicate how influential the institution is.

“Every body in Nepal has one sentimental attachment with particular way of life and pattern of relationship among citizens and between citizens and state. Many values, norms and discipline have created useful conventions and laws. All of them have come into the melting pot of unexpected and unplanned state of change,” said the analyst.

Nepal is in crisis of reorganization as a nation-state after a great shake up, which has not yet subsided. Nepal has a challenge of reconstruction of its economy, education and various infrastructures of such services.

“It is not only due to the monarchy Nepal remained as a unit but it is due to inherent emotional factors of unity that it lived with the different phases and characters of monarchy till now,” said the analyst.

From regional to geographical and from ethnic to caste and linguistic to religion, there are several facets for the reorganization of the state. In a society based on subsistence agriculture, new challenges of reorganization could add more problems.

What Future Nepal has?

Nepal has been pressured too much by regional conflicts and rivalries. All the time it has shown its vitality as a nation.

One may dislike a strict communist ideology-based party as unjust, irrelevant and outmoded. If one goes close to them, their ideology is just a tag. In fact, they are not much different than others.

Maoists, in the western countries’ view seem to have metamorphosed from red-tagged terrorists to toothless refugees living in UN Charity. Perhaps western democratic governments have slowly and gradually reached to conclusion that theoretically they are terrorists who have now become toothless refugees. The previous logistic support to them seems to have dried up. They now seem to have been replaced by non-ideological based different regional agitators

Even the United States in its recent statement decided to continue to support Nepal even if Maoists join the government.

It is not only a question of economic aid and support to Nepal at its critical phase, there is a very serious challenge this country has to face in terms of maintaining national unity with peace, harmony and stability.

Nepal has lost its previous power composition and is in search of a new shape, which is not very clear to its leaders, elites and common people.

Many countries have passed though similarly difficult transitions. Soon after the end of II world war, there was a difficult period for the industrialized countries of the west to reorganize social, economic and political interests.

After the disintegration of Soviet Union and during the democratic wave of 1990s, some countries reorganized themselves remaining intact while others got disintegrated in the process. Countries like Poland, Hungry and Bulgaria remained intact; while Czechoslovakia and Yugoslavia were disintegrated into several parts.

“Whatever contents of disintegration were injected in the body politic of Nepal, it has yet endured all the hardships and challenges of disintegration because of a long history of emotional integration between regions and communities of this county. Even in this communist dominated Loktantra, the monarchy still has acceptability as one of the factor of integration though it has been left out of power in state authority,” said the analyst.

Despite the recent regional turmoil, political crisis and uncertainty, there are silver lining in the horizon for prosperity and development for Nepal. Thanks to the support of western developed countries, Nepal is not alone when it is walking through difficult transitional period.

“If obstructions are not created from any direction, Nepal has enormous chances to rebuild its economy and infrastructures, popular and accountable government as well as vibrant economy. Whatever deficiencies are in the leadership, friends of Nepal tackle that wisely and skillfully,” said the analyst. “Problem in Nepal may enlarge into a bigger dimension if it is not addressed promptly and properly.”

(Editor’s Note: Nepalis, wherever they live, as well as friends of Nepal around the globe are requested to contribute their views/opinions/recollections etc. on issues concerning present day Nepal to the Guest Column of Nepalnews. Length of the article should not be more than 1,000 words and may be edited for the purpose of clarity and space. Relevant photos as well as photo of the author may also be sent along with the article. Please send your write-ups to editors@mos.com.np)

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