Nepal can benefit from regional economic integration
Ekantipur Report
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As the peace process process and an end to Nepal’s protracted political instability inches toward a conclusion, the United States has begun renewing its engagement with Nepal. The Peace Corps volunteers are returning after an absence of seven years, the two countries have signed a Trade and Investment Framework Agreement (TIFA) and American diplomats report that private investors in American are showing increasing interest in Nepal. Sanjay Neupane spoke to US Assistant Secretary of State for South and Central Asia, Robert O Blake in Washington DC about continuing placement of Maoists in the terrorist list, the Tibetan refugee issue, and the recall of Ambassador Scott H DeLisi. Excerpts:
Do you think continued placement of the UCPN (Maoist) on the terrorist list has limited the effectiveness of US efforts in the peace process, especially in the early days?
The United States placed the Maoists on two different terrorist lists that we have, because of the actions that they took during the conflict from 1996 to 2006, including actions they took against some employees of the American embassy in Kathmandu. Since then I think we have been quite encouraged by some of the steps that the Maoists have taken, particularly those they have taken to support the peace process. We hope that they will continue to do that and we also hope that the Maoists will renounce for once and all violence and terrorism. And I think those will help great deal in the consideration of whether to take them off the lists. This is a process that is already under way to consider removing Maoists from the list. So the Maoists continued support for the peace process and again any public statements they can make about renouncing violence and terrorism would be extremely helpful in expediting that process.
Nepal is in a fix over the issue of Tibetan refugees—caught between China and Western countries.
We have always appreciated the efforts that the government of Nepal has made to facilitate the transit of Tibetan refugees through Nepal. And we don’t see any contradiction with a one china policy. United States has its own one-China policy and yet we continue to engage constructively with our friends in China. Going forward, we hope that Nepal will continue to facilitate the transit of Tibetan refugees. And also that Nepal will take a hard look at regularising the status of the longer term Tibetan refugees that has been there, in some cases for 50 years, to ensure that they too enjoy full rights that are accorded to Nepali citizens. I think that would also be an important priority to point to.
In light of signing of the US-Nepal Trade and Investment Framework Agreement (TIFA), have you seen any new interests emerging among US investors in Nepal, particularly in hydropower, IT and tourism?
I think there is a modest new interest, but I wouldn’t want exaggerate that. I think more needs to be done in Nepal to put in place the kind of attractive investment environment that American companies would like to see. Nepal still is relatively a small country and the peace process has not been completed. There is still a number of internal challenges like corruption and as you said access to power
and things like that. That still makes it very difficult to do business for Americans or other companies. We have already taken some steps by for example facilitating delegations to meet with the American Chamber of Commerce in India. Because we believe in many cases the US companies already based in South Asia who would be the first to take a look at the opportunities in Nepal.
Nepal’s Prime Minister Baburam Bhattarai recently said that Nepal wants to be the bridge between the two neighbouring giant nations, India and China. How do you foresee the possibility of Nepal reaping benefits from the two economies?
I think that is a very apt analogy. United States is very focused now on the opportunities that are offered by regional integration across the entire region. We also see important emerging integrating opportunities to the east from India through Bangladesh, and through Burma and in South East Asia. As a result both of the important steps India and Bangladesh are taking to improve their relations, but because of the internal change taking place in Burma, Nepal I think is well situated to benefit from these important macroeconomic changes that are taking place. And as you said Nepal can benefit not only from the east west trade flow but from north south ones; between India and China.
The first ever Nepal caucus has been formed in the US Congress. And Peace Corps volunteers are returning to Nepal after seven years. Nepal has been nominated as an eligible country into Millennium Challenge Corporation. Do these facts signal renewed interest of the US in Nepal?
I would say there has always been an interest on part of the United States to help Nepal and the help the people of Nepal. As you say the Peace Corps, for example, has had long and proud history in Nepal. We are very pleased that they are returning to Nepal reflecting some of the more recent positive trends and the end of fighting. But the Peace Corps is a very good example of how those kind of people to people programmes have generated a very strong and enthusiastic group of friends for Nepal here in the United States. I am always struck that the group of former Peace Corps volunteers who have served in Nepal, are among the most enthusiastic of all the Peace Corps volunteers anywhere in the world. They still all have very fun memories of the time they spent in Nepal. I think that speaks a lot to the hospitality of your country and friendliness of your people. Some of the programmes you mentioned like the Millennium Challenge Corporations, our more recent programmes have been undertaken in response to the positive steps that the government of Bhattarai has taken with respect to the peace process.
Why has US President Barack Obama decided to nominate US ambassador to Nepal Scott H DeLisi to Uganda before his tenure has been completed?
First of all, let me say we are very proud of everything that Ambassador DeLisi has done in Nepal. He has been a superb ambassador and superb representative of the American people and American government in Nepal. But his departure and nomination for new job as ambassador to Uganda is nothing out of the ordinary. Our diplomats frequently change jobs like that. I am sure that we will nominate an equally capable person to replace him so that the people and the government of Nepal should have no concerns about that.
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