June 28, 2008
World Food Program to new Nepal government: Food shortages could topple you.
The World Food Program says Nepal's new government could be seriously compromised by food riots unless urgent action is taken to address food shortages.
The UN agency says almost three million people in Nepal's need immediate food assistance, after being hit by crop failures and price rises, and a further four million could join them. Nevertheless, Nepal's government seems to be intent on playing down the crisis.
The food-deficit districts include Accham and Bajura in the far west and Kalikot, Mugu, Dolpa, Humla, Jajarkot, Dailekh and Rukum in the mid-west. Most lack navigable roads and are 500-700km north of the capital. The districts also have the country's highest rates of child malnutrition, according to government health statistics.
Oil crisis shuts country down
JUNE 18
Taxis, buses and cars deserted the streets in the Nepali capital on Wednesday, as hundreds of students burned tires and blocked roads in new protests against a recent hike in fuel prices and transport fares, police said.
Last week, Nepal's state-run oil firm increased petrol and diesel prices by about 25 percent, to cut losses due to a global rise in fuel prices and meet a domestic shortage of fuel.
Transport operators immediately increased fares by 25 to 35 percent for taxis and buses, causing some protests.
But on Wednesday, scores of students took to the streets in Kathmandu, in a fresh demonstration.
"The fuel price increase must be rolled back immediately," said Dipak Bhattarai, president of the Free Students' Union.
Authorities said the fuel price hike was necessary due to the sharp increase in global prices of crude oil.
Bhattarai said the government should at least allow a 50 percent discount in transport fares to students
Students are allowed a 33 percent discount on fares at the moment, but Bhattarai said transport operators do not follow the rules. Nepal imports about 800,000 tons of petroleum products from India annually and owes millions of dollars to the state-run Indian Oil Corporation, the sole supplier of oil.
In January, a similar increase in oil prices was rolled back after countrywide protests crippled life for two days.
JUNE 23
Thousands of passengers were stranded across Nepal on Monday as transport operators locked public buses and other vehicles in garages demanding a 35 percent hike in transport fares after recent increases in fuel prices. Markets, schools and businesses were all shut due to the strike.
"Transport fares have not gone up for the past eight years when fuel prices increased many times," said Saroj Sitaula, a Nepal Transport Entrepreneurs' National Federation official. It is an umbrella body of Nepali owners of buses, taxis and trucks.
"We can't run any vehicles with a mere 25 percent hike in fares," he said.
The pump price of gasoline jumped 25 percent to 100 rupees per liter (US$5.70 per gallon), while diesel shot up 25 percent to 70 rupees a liter (US$3.80 a gallon)
Highways were empty as drivers stayed home at the start of the strike.
JUNE 25
The nationwide indefinite strike by transport entrepreneurs was ended following a pact between the agitating entrepreneurs and the government.
The protracted meeting between the representatives of National Federation of Transport Entrepreneurs and the Ministry of Labor and Transport Management ended late night on Tuesday after the government agreed to let them hike transport fare by 28 percent.
Transport entrepreneurs say that this new fare structure will be in place for two months after which they aim to reach to another agreement through ‘scientific review.’
Meanwhile, the Nepal Petroleum Dealers Association (NPDA) is holding talks with Nepal Oil Corporation, Wednesday, to resolve its demands. The association has announced indefinite stoppage of sales and distribution of petroleum products.
JUNE 26
Life in the Kathmandu Valley came to a standstill yet again as four political parties jointly called for a shutdown to protest the hike in fuel prices. The UML led the shutdown along with three more fringe parties, including an organization of shanty dwellers that made its debut in the April election.
This, then, was the backdrop for major political developments.
KOIRALA steps down
Giving into insurmountable pressure, Nepal's 83-year-old Prime Minister finally cleared the way for a government led by former communist rebels with the announcement of his long-delayed resignation. The Maoists have positioned their leader, Prachanda, to replace him, perhaps as soon as next week. The Maoists are proposing that the first presidential election be held Wednesday, followed by the prime ministerial election Thursday.
After months of wrangling over power sharing, the ruling parties finally agreed that the assembly through simple majority would elect the president and prime minister.
The Maoists hold 220 of the 575 current seats in the assembly and have garnered the support of the third largest party, the Communist Party of Nepal-Unified Marxist Leninist (UML) that has 103 seats.
The former rebels are also banking on the support of the Terai parties, which have nearly 80 seats, and the minor left parties.
While the new premiership is almost a certainty, the first president’s post still remains contentious.
Although Koirala’s Nepali Congress party wants the post for their octogenarian leader, the Maoists have refused it, ostensibly because of Koirala’s advanced age and failing health but actually, to avoid a parallel source of power.
The former guerrillas have a tacit agreement with the UML to concede the post to the latter in exchange for their support in forming the new government. But the UML candidate may trigger widespread public protests.
A senior UML leader, Bamdev Gautam, says his party will field its former chief Madhav Kumar Nepal for the presidency. Nepal suffered a humiliating defeat in the April election, losing from both the capital and the Terai constituency he contested from, an indication that he has lost the public mandate.
In the past, the Maoists had said that the presidential post should go to a non-political person who had played a decisive role in Nepal’s pro-democracy struggles.
They had advocated Ram Raja Prasad Singh, a former guerrilla leader who had taken part in an armed uprising against the absolute rule of deposed king Gyanendra’s father Mahendra.
But Singh’s nomination may be put on hold if the UML wants its pound of flesh.
Both the presidential and prime ministerial elections hinge on the Terai parties, who have halted the assembly’s proceedings since Thursday, demanding an autonomous Madeshi state in the Terai.
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