Fourth Non-Resident Nepali (NRN) Global Conference October 13-15, A Report

Fourth Non-Resident Nepali (NRN) Global Conference October 13-15, 2009 A Report KATHMANDU December 2009

Table of Content Titles Page No. Conference Partners 3 Report Summary 4 6 Day I Report (Inauguration Session) 7-25 Day II Report 26-44 Day III (Valedictory Session) 45-54 Newly Elected NRNA ICC (2009-11) List 55-56 4 th NRN Global Conference Report Page 2

Partners of 4 th NRN Global Conference PLATINUM PARTNERS GOLD PARTNERS SILVER PARTNERS 4 th NRN Global Conference Report Page 3

SUMMARY The Fourth Non-Resident Nepali Global conference was held on 13 15 October 2009. 747 registered participants from 47 countries participated in the conference. On top of that the government officials, representative of the political parties, civil society organizations and Federation of Nepalese Chambers of Commerce and Industry and few NRNs from other countries also took part in the conference. The total number of participants was well above 800. During the inauguration there were more than 500 additional guests. The conference was well covered in the national media with the broad sheets publishing not only news of the various programs associated with the conference, but also features and opinion articles by noted writers and opinion makers. The government was closely involved in the program. The Council of Ministers of the Government of Nepal had formed a special high level organizing committee with Deputy Prime Minister and Minister of Foreign Affairs Sujata Koirala as the convener. The committee included Advisor to the Prime Minister, National Planning Commission member, Advisor to the Foreign Ministry, secretaries of various ministries, President of NRNA, Spokesperson of the NRNA, representative of Nepal Rastra Bank, FNCCI President and Senior Vice President, heads/presidents of private sector organizations of Nepal and many others. The NRNA secretariat took the burden of the conference secretariat. Before the conference many social programs and other events were organized. The NRN participants were invited to the social programs including lunch and dinners organized by the political parties and other organizations. The NRNA delegation met the top leaders of the political parties and government including Prime Minister Mr. Nepal, CA Chairperson Mr. Nembang, Former Prime Ministers Mr. GP Koirala, Mr. PK Dahal (Prachanda), President of CPN UML Mr. JN Khanal, President of MJF Mr. U. Yadav, MJF (Loktantrik) Mr. BK Gachhedar, RPP President Mr. PS Rana etc. In those meetings the NRN delegation reiterated their position on issues like the constitution making, dual nationality, need for appropriate changes in the NRN legislation etc. The leaders extended best wishes for the NRN conference and reiterated their positive outlook to the concerns raised by the NRNs. The conference itself was organized over three days. The theme of the conference was Peaceful and Prosperous Nepal A common Dream of Ours. The discussion and deliberations were centered around this theme. The inauguration and the first day proceedings were held in Nepal Army Officer's Club Auditorium at Tundikhel. And the programs of the next two days were held in hotel Soaltee Crowne Plaza, Tahachal Kathmandu. The chief guest of the Inaugural Program was Rt. Hon. President of Nepal Dr. Ram Baran Yadav. In his inaugural address the President spoke very warmly about the love of the NRNs toward the Nation. He strongly reiterated the view that the prosperity of the various communities and regions of Nepal was very much interlinked. He urged the NRN community to devote their energy and strength in cementing the bond among the various communities and preserving the nature/environment of the country. He expressed fear that the global climate change and deforestation in the Chure range was turning Nepal into desert like condition. 4 th NRN Global Conference Report Page 4

Delivering her welcome address, the convener of the organizing Committee, Deputy Prime and Foreign Minister Sujata Koirala outlined the program and policy of the government with regard to NRNs. She made a number of commitments of the government including the pledge to issue the NRN cards to the NRNs by January 2010. She also highlighted the potentials of the NRNs in transforming Nepal s economy and the society and called on them to bring back to the motherland some of the knowledge, skills and resources acquired outside Delivering a sentimental address the NRNA president Dr Upendra Mahato said that the wealth of a single individual did not mean anything when the country was not prosperous. Recalling the experience of being treated badly in the international airports just because the person concerned is holding a Nepali Passport, he said that the NRNs would like to see the country prosperous within their lifetime. He also reiterated that the dual citizenship puts on obligations on the Nepalis who acquire a foreign passport towards the motherland and called on the government and the Constituent Assembly to address the issue of dual citizenship. Delivering his vote of thanks FNCCI President Mr. Kush Kumar Joshi called on the NRNs to work together with the Nepali business for transformation of the economy. He was of the view that the government should create the environment whereby the NRNs and the Nepali Private sector could work together under the Public Private Partnership. The inaugural ceremony was very colorful with a small choreography with kids in different ethnic costumes singing a song written around the theme Peaceful and Prosperous Nepal - A Common Dream of Ours. The musical presentation arranged by Madhurima Nepal really touched the sentiments of the delegates and the guests and was highly appreciated. The closing session of the conference was organized with Right Honorable Prime Minister Mr. Madhav Kumar Nepal as chief guest. In his address, the Prime Minister reiterated the government s commitment to facilitate NRNs involvement in the social and economic life of the country. Referring to the bond of the people with the motherland he called on the NRNs to use the existing provisions created by the government. In the valedictory session the newly elected President Mr. Hirachan repeated his commitment to continue with the good works initiated by his predecessor. He also called the NRNs to look at the collective interests and not in the individual interest. Speaking on the occasion, NRNA Outgoing President Dr. Mahato called on all to extend similar cooperation to the new NRNA leadership as extended during his tenure. In his speech he told that no NRN had a right to comment on what is transpiring in Nepal if they are not doing something good to the country. The vote of thanks was delivered by Mr. Suraj Vaidya, Senior vice President of FNCCI. The Kathmandu declaration was read out by NRNA Spokesperson and signed by Deputy Prime Minister, NRNA President and FNCCI President during this session. The partners were also felicitated at this session. A number of plenary and parallel sessions were organized to discuss various issues pertaining to the theme. There was a session on foreign employment where the speakers and participants reiterated the need to act together to resolve the issues related to it. There was total agreement that the Foreign Employment had contributed in sustaining the 4 th NRN Global Conference Report Page 5

economy, but creation of employment opportunities was crucial for ensuring the prosperity of the country. The speakers called for channeling the resources and skills gained in the foreign employment to productive use in the economy. There was a discussion on the numerous problems faced by the migrants from Nepal. There was unanimity of the view that stakeholders needed to act together to make the migration less stressful. There were sessions on economic diplomacy and the opportunities for trade and investment in the country. In these sessions, the discussions centered on what was needed to be done to attract NRN investment in sufficient quantity. The participants and speakers reiterated the need to make the rules and procedures and overall climate investment friendly. There was the unanimity of the view that the NRNs could play major role in promoting Nepal s economic interests. The government and the Nepali community needed to work in tandem to safeguard Nepal s interests. There were a few star sessions in the conference. One of them was on the constitutional process. In this session leaders of main political parties namely Jhala Nath Khanal of CPN UML, Sushil Koirala of Nepali Congress, Dr. Baburam Bhattarai of UCPN Maoists, and Upendra Yadav of MJF reiterated their commitments to complete the constitution drafting process in time. All the leaders had very warm words towards Nepal. There were number of other session which generated considerable interests. One of them was the session where the leaders from various walks of life clarified their views on the prosperous Nepal. There were sessions on few personalities who by their exemplary work had made contribution in effecting change in the society. There was also a session on the positive effects brought out by those who after spending some time outside returned to Nepal and used their knowledge and skills acquired outside in various projects and organizations in Nepal. Apart from the interaction sessions, there were presentations from the NCCs on what they have been doing and what sort of issues were in the forefront among the Nepali communities in different countries. Apart from these sessions of the conference the NRNA also had its general body meeting. The General Body Meeting of the NRNA apart from approving the reports of the General Secretary and the treasurer also made some amendment to the NRNA constitution. The last official work carried out during the conference was the election of the Office bearers and the ICC members. The General Body meeting unanimously elected Mr. Dev Man Hirachan as NRNA President. For the posts of Vice Presidents, Secretary and Regional Coordinators and Deputy Coordinators election were held. The entire process went very smoothly. An Election Commission headed by NRNA Advisor and President of Nepal Bar Association oversaw the election process. After conference too a number of post conference activities were organized. These activities included the inauguration of a road, interaction on how the NRNs could be useful in ensuring the success to the Nepal tourism year, foreign employment issue etc. The Newly elected President also made courtesy calls on the Prime Minister, chairperson of the CA, Leaders of political parties and others. The more detailed session wise report of the conference is given below. 4 th NRN Global Conference Report Page 6

DAY I Date: 13 October, 2009, Tuesday Venue: Army Officers Club, Bhadrakali INAUGURAL SESSION Chief Guest President - Dr Ram Baran Yadav Program: National Anthem Musical Welcome Welcome Address by Deputy Prime Minister and Foreign Minister Sujata Koirala Welcome Speech by NRNA President Dr Upendra Mahato Inaugural Address by President Dr Ram Baran Yadav Vote of Thanks by FNCCI President Kush Kumar Joshi Master of Ceremony: Dhirendra Premarshi The program started with the respected guests taking the seat followed by a small musical welcome and the singing of National Anthem by. The musical welcome and the national anthem was managed by Madhurima Nepal working under direction of Pradeep Bomjan. President Dr. Ram Baran Yadav inaugurated the three-day conference with the motto 'Peaceful and Prosperous Nepal - Common Dream of Ours. "A peaceful and prosperous Nepal is a dream we all have cherished," Dr. Yadav said in his inaugural address. "The Nepalese living at home as well as those staying abroad need to join hands to translate this dream into a reality." Dr. Yadav noted that Nepal was not a poor but a very resourceful country, but it lagged behind in absence of a loktantrik polity. "We can attain progress if we move ahead adopting democratic norms and values", he noted. He said the country was now in the process of drafting a new constitution to formalize the federal republican system and asked the NRNs to hold consultations with the politicians, civil society leaders, professionals and intellectuals to make sure that it is inclusive in the true sense and it comes in time. Stating that all the Nepalese living in any part of Nepal or any country abroad were first Nepalese, he requested everybody to keep intact the national unity. "Let's be effortful to give elixir to the nation, not the poison." 4 th NRN Global Conference Report Page 7

Appreciating NRN investment in education, health, infrastructure, and hydropower sectors, Dr. Yadav appealed to them to sensitize the issue of environment protection and take steps to mitigate the impacts of climate change. "You bring your knowledge, skills, capital and good intention; we will invest our time and energy. Let's work together to develop the nation" he told the gathering. Sujata Koirala, Deputy Prime Minister and Minister for Foreign Affairs, in her welcome address said the knowledge and skills acquired by NRNs would assist in Nepal's development. Koirala mentioned that the government had already brought the NRN Act and necessary regulations to address the concerns of the NRNs and informed preparations were under way to issue identity cards to NRNs from January 2010. "The government will take an appropriate decision in regard to the demand of dual citizenship," she said. She said the government would push ahead the work of constituting an Advisory Board to best avail of NRN knowledge, skills and capital. Similarly, a Foreign Employment Promotion Board will be set up for efficient management of this sector. Koirala hoped the conference would be instrumental in achieving the goals of economic diplomacy. Dr. Upendra Mahato, President of Non-Resident Nepali Association (NRNA), appealed to the NRNs to do their best to translate the dream of peaceful and prosperous Nepal into a reality. "We have to understand that only Nepalese can build a peaceful and prosperous Nepal. So I request you to assist the upcoming leadership to in its campaign to build a peaceful and prosperous Nepal." He asked the government to create a favorable environment for the NRNs to bring in their knowledge, skills and capital for the development of the nation. Kush Kumar Joshi, President of the Federation of Nepalese Chambers of Commerce and Industry, asked the government to swiftly address the concerns of NRNs to attract them to Nepal's development. 4 th NRN Global Conference Report Page 8

SESSION 1: Foreign Employment, Migration and Remittance: Challenges and Opportunities in the Face Of Global Financial Crisis Chair: Hon. Minister for Labour and Transport Management Mohammad Aftab Alam In Dias: 1. Mr Sarat Dash, Chief of Mission, International Organization of Migration 2. Mr Mohan Krishna Sapkota, Director General, Foreign Employment Board, Government of Nepal 3. Dr Aasif Ali Siddiqui, NRN-UAE 4. Mr Tekendra Dewan, BGWS and NRN-UK 5. Mr Tilak Ranabhat, President, Nepal Association of Foreign Employment Agencies 6. Mr Radhesh Pant, Chief Executive Officer, Kumari Bank 7. Mr Pradeep Jung Pandey, FNCCI, Vice-President 8. Ms Usha Sharma, Women Representative, NRNA On the back of ongoing global financial downturn and its adverse impact on Nepal s foreign employment sector, an interaction on Foreign Employment, Migration and Remittance: Challenges and Opportunities in the face of Global Financial Crisis, was organized on Tuesday, the first day s first session of Fourth NRN Global Conference. In a bid to seek measures to minimize the impact of financial meltdown in overseas jobs and seek role of NRNs in respective labor destinations to deal with the crisis, the interaction was participated in by representatives from NRN, the government, banking sector and International Organization of Migration, foreign employment agencies. On the occasion, the participants sought more cooperation from NRNs for better management and expansion of the overseas employment sector and proper streamlining the flow of remittance that makes up over 20 percent of the total GDP of Nepal. They also asked NRNs to contribute more on exploring new job opportunities and protecting the rights of Nepali migrants in the recipient countries. Eight personalities made their presentation on different topics ranging from safe migration, proper use of remittance and role of NRNs in promoting jobs for Nepali youths abroad. The main points of the presentation of the resource persons are given below 4 th NRN Global Conference Report Page 9

Sarat Dash, Chief of Mission of the International Organization of Migration Mainly temporary jobs holders, less experienced and unskilled workers have been affected by the economic slowdown with women and men working in construction and manufacturing sector being badly affected. Foreign workers living in the US, the UK, Spain, Ireland, the United Arab Emirates (UAE) and Korea are hard hit by financial gloom. Over 45 percent of the total foreign workforce is expected to be laid-off in the UAE by the end of 2009, added Dash. NRNs should make more contribution in exploring out new labor destinations and also lobby for the welfare of Nepali workers, especially given that as the over 700,000 Nepali are working in the Gulf region where as Bangladesh and Indian state of Kerala have been sending over 80 percent and 90 percent of their overseas workers to the region respectively. Nepali Diaspora should uphold the contribution of Nepalese for the development of host countries and also work in close cooperation with Nepali diplomatic missions to ensure rights and safety of Nepali migrants. Although ongoing financial crisis has severely impacted workers from other exporting countries, only 214 Nepalese are reported to have been laid-off so far due to the global economic slowdown. Nepali Diaspora must also engage with the host countries government to lobby for the better protection of rights of Nepali workers and safe return of those who are in trouble in foreign land, said Dash. He also asked NRNs to remain vigilant over the change in policy regarding migrant workers and their rights and initiate dialogue with stakeholders to channelize remittance. Dash further added Migrant workers were facing retrenchment, less wage, reduction in working hours, discrimination and xenophobia in labor destinations due to the financial crisis. Mohan Krishna Sapkota, Director General of Department of Foreign Employment Issues of Safe Migration and Foreign Employment Dealing with problems of Nepali workers in trouble is getting more complicated as half of around three million Nepali migrants have moved out in different labor destinations without formally informing the appropriate government authorities and they have been subjected to different mistreatments in overseas destinations. The number of Nepalese workers working abroad after giving prior information to the government was around 14,32,000. Open border, lack of training, insufficient diplomatic missions in labor destinations, paucity of government resource are some of the key factors negatively affecting the foreign employment sector in Nepal. The government has a policy to discourage women workers to work as domestic workers in different Gulf countries and Malaysia due to insecurity there for the domestic workers. 4 th NRN Global Conference Report Page 10

The major factors driving Nepalese to overseas destinations were poverty, lack of education and employment opportunities, unfavorable economic condition and internal conflict in the country prompted Nepali youths to seek for foreign jobs. The labor diplomacy through the involvement of NRNs, rescue program for migrants, promotion of labor market, regular policy feed back to the government, continuous lobby for new jobs for Nepalis, proper use of remittance to generate employment, skill training for job aspirants before leaving for overseas jobs and rescue shelters for those returning after facing different problems in host countries was the need of the day. Dr. Asif Ali Siddiqui, NRN from United Arab Emirates (UAE) Remittance contributed significantly in bringing down poverty to 31 percent in 2003/04 from 42 percent recorded in 1995/96. Nepali workers are getting opportunity to develop their skills in foreign destinations. So, I would say migration of workers is not braindrain, it is brain-gain, Siddiqui said. There was a need to develop skilled workers in the country through vocational trainings to ensure better job opportunity in labor destinations. According to conservative estimates around 75 percent of Nepali overseas workers are unskilled, 20 percent semi-skilled and only 5 percent are skilled. Nepal has marvelous opportunity to take economic benefit from China that has been developing as manufacturing hub where as India, the southern neighbor- is the center of technological development. NRNs should invest in the sector of health, education, traveltourism, financial institutions, agriculture and energy mainly hydropower. Tilak Ranabhat, President, Nepal Association of Foreign Employment Agencies The NRNA should not undermine the role of Nepali manpower agencies in exploring overseas job opportunities to Nepali youths. The government introduced bond worth Rs 7 billion targeting workers in Malaysia, the UAE, Qatar and Saudi Arabia, has been a total failure. It is impractical for the overseas workers who are busy in their duty, to subscribe the bond. Radhesh Pant, Chief Executive Officer, Kumari Bank There was the need to utilize the ever growing remittance in income and employment generating sectors. Though the remittance is as much as 21 percent of total GDP, the hard earned money from Nepali overseas workers hasn t been invested in the sector that would boost economic activities in our country, said Pant. Of the total remittance, only 30-40 percent goes to rural parts of the country. 4 th NRN Global Conference Report Page 11

The remittance had contributed in improving public health and education in rural household besides increasing liquidity in the market. Pradeep Jung Pandey, Vice-President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) There was the need to boost internal economic activities to generate employment opportunities rather than continuing with excessive dependence on the remittance. The political parties were using workers to fulfill political interest and excessive unionization in the name of labor rights is hampering the economic growth. Adverse industrial climate, perennial power shortage and unionization are the major causes to cripple the industrial sector rendering the contribution of this sector to drop of less than 6 percent from over 20 percent over a decade. He also urged the government to create investment friendly environment to lure NRNs investment. Usha Sharma, Women Representative of NRNA The government should come up with skill development programs to avoid troubles to women in labor destinations in the absence of skills. Not all women in overseas destination are in dire problems. Many have done very well and living respected life and using their working skills and expertise. Tekendra Dal Dewan NRN from UK Nepal government should extend support to the Gorkha soldiers who are fighting for their legal rights for equal pension at par with their British counterparts. Many Ex Gurkhas are migrating to UK as the UK government is providing them the residency right selling their properties in Nepal. We are losing their connection with Nepal. The dual citizenship could be a vehicle to maintain their links with Nepal Mohammad Aftab Alam, Minister for Labor and Transport Management NRNs should support Nepal government in its effort to explore new destinations for Nepali youths. There was an urgent need to utilize remittance in a productive way so that further employment can be generated within the country. 4 th NRN Global Conference Report Page 12

SESSION 2: Economic Diplomacy: How NRNs can Contribute Moderation: Mr. Sharda Jung Thapa, NRNA Advisor In the Dias: 1. Mr. Gyan Chandra Acharya, Secretary, Ministry of Foreign Affairs 2. Dr. Yuba Raj Khatiwada, National Planning Commission, Vice-Chairman 3. Dr. Prakash Chandra Lohani, joint President (Nepal Janshakti Party) 4. Dr. Dilli Raj Khanal, UCPN (Maoists) 5. Mr. Shesh Ghale, NRN Australia 6. Mr. Bhaban Bhatta, NRN Japan Gyan Chandra Acharya, Secretary, Ministry of Foreign Affairs The economic content in diplomacy has been a common feature in today's diplomacy. The diplomacy earlier focused on security, war and territorial gain was the main feature of diplomacy in the 19 th century and early 20 th century and such diplomacy gave more priority to government to government relation. Now, people centric diplomacy has got primacy and economic content is getting into focus in every country's diplomatic initiatives. The development of information and communication technologies that enhanced interactions among people of diverse country gave background for people-centric diplomacy. Ensuring wellbeing of own people has become the primary goal of foreign policy of every country. That's why; the economic content in diplomacy is getting more priority than before although security related issues remain at the forefronts. There is a need for effective economic diplomacy for making Nepal prosperous and stable. Our foreign policy focuses on three basic areas: firstly, protection of country's sovereignty and territorial integrity, secondly, Nepal's conduct as per the guiding principles of international laws and charters and the Nepal's participation in major international groupings such as Non-aliened Movement and thirdly, promotion of economic and social interests of Nepal and Nepali identity. These three policies are mutually intertwined. Economic diplomacy is essential to meet the objective of third goal. Our economic diplomacy has five key ingredients: expanding Nepal trade, attracting foreign investment, receiving more foreign aid in a just way, promoting foreign employment for more benefit to Nepal and Nepalese and promoting Nepali tourism. Regarding trade expansion, our diplomacy remains focused on expanding Nepal's exports, diversifying trade and exports, reducing trade deficit and getting easier market access in other country. We should use both bilateral and multilateral forums such as World Trade Organization for this cause. Given Nepal's low base of savings, we need to attract more foreign investment in Nepal. Development aid is also important part of our diplomacy as our development activities are basically dependent on foreign aid now. It is 4 th NRN Global Conference Report Page 13

natural to make overseas employment as a major foreign policy goal as remittance has become the main source of foreign exchange reserve of the country. Protection of our labor force abroad, solving their problems, protecting their rights, enhancing their skills so that they could get well-paid jobs and sending the Nepali labor force to better paying countries are priorities for us. As tourism is also a big source of foreign exchange earnings of the country and this industry is providing huge employment in the country, we have put tourism promotion as our priority in economic diplomacy. We have identified that the National Planning Commission, sectoral ministries and apex bodies of private sector are the key institutions that deal with economic diplomacy. There are our embassies under foreign ministry which interact with the host government and private sector of that country for achieving the above goal. The Nepali missions abroad do have the jobs to promote Nepali products, assist Nepalese to visit the host country, help Nepalese participate in trade fairs there and to mobilize Nepali Diaspora. However Nepal has a limited resource to do all these things. We have managed seed money of around Rs. 40 million for all the embassies. They can spend the limited money in program specific areas in coordination with other institutions such as Nepal Tourism Board, Foreign Employment Board for economic diplomacy. Nepali Diaspora can also support the government in promoting Nepal's economic interests because they are people who maintain people level network. They can coordinate with embassies for the promotion of Nepali goods and services. They can provide correct information about Nepal, popularize Nepali goods and culture and ask foreign friends to visit Nepal. They can themselves invest in Nepal as well. We see NRNs as natural promoter of Nepal. Yuba Raj Khatiwada, Vice-Chairman, National Planning Commission The NRNs can help in promoting Nepal's economic interests by connecting the private sectors of foreign country with Nepal and encouraging them to invest in Nepal. Given the expanded linkage with society of the host country, they can work to promote Nepali products and culture and ask the foreign friends to visit Nepal. Their higher interest to the works of Nepali mission abroad may too compel Nepali embassies to do more. The political appointees for ambassadors normally lack knowledge on economic diplomacy and the NRNs can push them to work in the areas of promoting economic diplomacy. They can ask embassy people what they did to promote Nepal's trade, where they had displayed Nepali products and where the posters of Nepal Tourism Board had been hanged in the embassy. The next job of NRNs could be to help Nepali embassies to connect the private sector of the host country. They can ask for increasing more attaché who look after economic affairs instead of military attaché. They can inquire about the staffing of the embassy and call for more representatives who look after economic affairs. 4 th NRN Global Conference Report Page 14

Another important thing the NRN should do is to initiate campaign to save our Himalayas which is melting and is threat to Nepal's ecology. The melting of ice means the Himalaya loses its beauty and it may cause devastating impact on the country's water resources. The NRNs should work for goodwill ambassador of 'Save Himalaya' campaign. Regarding the NRN's effort to open investment fund, the government is ready to provide necessary support. Dr. Prakash Chandra Lohani, Co President Rastriya Janasakti Party and Former Minister of Finance and Foreign Affairs Economic diplomacy is a part of broader national interest. Nepal's constitution has defined the country's national interest. Achieving prosperity of its people is one of the main national interests of the country. The economic diplomacy is one of the measures to attain this goal. International diplomacy was practiced on the basis of ideology throughout the cold war until 1990. With the fall of Soviet Union in 1990, the questions about the existence of ideology have been raised. The current diplomacy is guided by putting functioning free market and democracy at center stage in most of the country. Even China as a communist country has adopted free market economy and has been pushing for freer market in the world. Where do we stand in this context of ideological convergence? The government has failed to make conducive environment for reducing the transactions cost although we have adopted free market economy. That's why; we have failed to attract more investment for both domestic and foreign investment in the country. It is the era of competition; foreign countries don't help Nepal just for the sake of enhancing friendship. The unified approach of the government and private sector is essential for creating such environment. The government has to make human and physical infrastructure ready and the private sector should invest capital. However, in today's world, capital also flows to place where it could be used in more productive ways. There is a need to do hard efforts to attract foreign capital. That's why, economic diplomacy is crucial to attract capital. But, our foreign ministry seems to have done little in this direction. It is because of the fact that it deals everything in a single basket and the specific issues that serves the country's economic interests don't get primacy against others. Economy is still getting less priority in our foreign relations. Dr Dilli Raj Khanal, Economist, UCPN Maoist Nepal's exports have gone down and the country has failed to attract foreign direct investment and technology to a significant level. NRNs can help in this regard. They have talent, resources and network across the globe and their contribution in this regard is important. The role of Non-Resident Indians (NRIs) is highly appreciated in India for bring revolution in the area of information technology. Now, India exports IT products worth billions of dollars. NRIs came to India seeing opportunities for them and they helped in IT miracle. Even the developed countries have 4 th NRN Global Conference Report Page 15

benefited from their non-resident people through creation of more trade opportunity for their expatriates, promoting tourism through them and with cultural effects. In the context of Nepal, lot of things can be done by involving the NRNs in Nepal's development efforts. I propose create a body at the highest level body involving the government, FNCCI and NRNs to define the role of each stakeholder in attracting more human and capital investment. How NRNs can help Nepal to ensuring market access to Nepali products and what are the other areas the NRNs can help Nepal given their extensive network abroad should be sought But the government must make friendly industrial environment to attract NRN's investment as well as foreign investment will not work. Shesh Ghale, PNO/NRN, Australia First of all, I would like to ask if the Non-Resident Nepalis (NRNs) are accepted as part of Nepal's socio-economic development. If yes, how can they support Nepal's socioeconomic development? I think they can become part of Nepal's socio-economic development. They support their families home with remittance, they can consume goods here as tourists and encourage others to travel to Nepal. If the NRNs return to their country of origin, it is a brain gain resulting from brain drain. Not only that they also bring new ways of thinking with their exposure to diverse cultures across the globe they can also encourage foreigners to invest in Nepal. The NRNs can themselves invest in Nepal both individually and collectively. They have already been involved in businesses here individually but they are also seeking to invest here collectively through an investment fund. They are involved in various philanthropic activities here. However, for investing in Nepal does have some constraints such as political instability, bureaucratic hurdles, bad business practices, lack of integrity and transparency on the part of businesses and government. The country has a FDI related Act which is focused much on manufacturing industry. That's there should be change incorporating more other areas including services. Despite these constraints, why should NRNs invest in Nepal? Because, the NRNs have more tolerance because of diverse experiences abroad, Nepal is a country with huge growth potential and its corporate tax is relatively low which we cannot ask to lower it further. Are these sufficient prerequisites for the investment in Nepal? We are not only Nepalese but also global citizens and we can invest in other various countries offering lucrative incentives as well. But, Nepal's advantage is that it gives us good feeling because it is our motherland. As increasing numbers of NRNs are seeking to contribute Nepal's development, I suggest for establishing a Ministry to deal on NRN issue. There are already such ministry in India and China and why can't it be established in Nepal? 4 th NRN Global Conference Report Page 16

Bhawan Bhatta, President NRN NCC Japan While talking about economic diplomacy, the question arises who is the real economic diplomat? To find out the answer of this question we need to look into the evolution of economic diplomacy. First of all, there was trade diplomacy followed by economic diplomacy and the final phase of it is Diaspora diplomacy. The NRNs represent Nepali Diaspora. They are the force which can connect Nepal with the host country. So, the NRNs should be made diplomats of Diaspora diplomacy. The NRNs who are willing to help Nepal in its economic diplomacy and who are competent with social, economic and academic background should be appointed Diaspora diplomat. As a prerequisite to become a Diaspora diplomat, a person should have good relations with the government officials, politicians, private sector and people at large of the host country. He or she should be the person whose call to make investment in Nepal is well heard. He or she should be able to provide correct information about the geography of Nepal to the people of host country. He or she should have knowledge about Nepali government's policies and laws and should always be updated with information about Nepal. Before starting the job of a diaspora diplomat, he or she should be provided certain professional training. Most important thing is that such NRNs should get recognition of Diaspora diplomats. Floor suggestions: There should be a formalized way of utilizing the NRNs in economic diplomacy, The NRNs should be appointed as honorary consuls of Nepal The NRNs should develop themselves as lobby group for the sake of promoting Nepal's economic interests. 4 th NRN Global Conference Report Page 17

SESSION 3: Opportunities for Investment and Trade in Nepal Moderator: Krishna Hari Banskota, Revenue Secretary, Ministry of Finance In the Dias: 1. Mr Purusottam Ojha, Secretary, Ministry of Trade 2. Mr Sanjeeb Subba, NRN Thailand 3. Mr Gyanendra Lal Pradhan, FNCCI 4. Mr Nugal Anand Vaidya, FNCCI/FCAN Purusottam Ojha, Secretary, Ministry of Trade 1. Importance of investment on Nepalese economy in recent changing political scenario: Nepal is in transitional period the expectations of the people are very high even unlimited. But main objective of it is to uplift the living standard of poor people. Until we can provide sufficient food, better education and dwellings to the people, the changes in political system mean nothing. So economic development should be in focus. 2. Trade: Nepal introduced open and liberal economic policy in the 1990s. In 1992 Nepal launched new trade policy, Foreign Investment, Industrial and BOOT policies. In 1996, Nepal and India signed a new trade treaty. In this period Nepal developed trade related infrastructure like Inland container depot, IT park etc. Now Nepal is contemplating to announce policies. As a supporter of free trade Nepal became a member of WTO and BIMSTEC in 2004. We know Nepal has to reduce transit cost to compete with outside world. We are looking for new transit points in addition to traditional points. In recent years Nepal s trade performance is not satisfactory. Another cause of trade imbalance is world recession. Nepal s carpet export declined 40 percent. But import increases day by day. Our current export amounts 60 to 62 billion rupees which is sufficient to cover the import vehicles and Petroleum products only. Agro and food items export is growing, but Nepal is facing food deficit. So investment in agro sector has potential. This year export to India has improved. In 2007 export to India was around Rs 14.4 billion, in 2008 it went up by 15% to Rs 16.8 billion. Export to third country increased by 24%. After the trade treaty with India in 1996 trade dependency with India has increased by 18%. After 1996, Nepal s trade ratio with India and other countries are in huge deficit. 4. Investment situation: The Gap between National saving and investment is wide. Domestic saving is not sufficient for investment. Saving and investment level both are in decreasing trend. Level of FDI is also the lowest in south Asia. India is the largest investor followed by China. 5. Role of NRNs: only Nepali can make Nepal. The NRNs know Nepal by heart. In the current critical economic condition Nepal is seeking support from the NRNs. NRNs have many choices in the field of investment. There are small scale industries, one village one product, quality improvement of Nepalese products, infrastructure development, 4 th NRN Global Conference Report Page 18

marketing of Nepalese product in world market, organizing buyer seller meeting, trade fair, business meeting, lobbing, Tourism, IT, health, education Where the NRNs can and should contribute. Sanjeev Subba, NRN, Thailand Nepal spends lots of money for education abroad but does not invest sufficient within country. Nepal s 37% population is under 25 but only 3.5% of GDP is invested in education sector. More students are going abroad for study. That s why money and brain both are draining from Nepal to other country. It is true that it contributes on high remittance flow to the country but is also associated with high social cost. To protect money flow to third country and generate skilled youth manpower NRN can invest in this sector. Short Term Goal: It is learnt that more than 200 NRNs are associated with globally renowned universities. We can tie up with them and invite them for investment. We can request them for volunteer service in Nepalese universities. Medium Term Goal: For better skill development of Nepali workers who desire to work abroad, there is large scope of investment in training centers. Vocational Training centers are today most necessary. We can arrange finance from NRNs and also the returnees who have the experience of working abroad. They can also act as trainers. For that Nepalese chambers of commerce, Universities, Banker association might be partners. The organisation must be free from political influence. At least 600 Nepalese are leaving Nepal to foreign countries for work every day, so there is huge opportunity for investment in this area. For that concept NRN can play important role and manpower companies may be partner. The leading role of Nepal government is essential. CTEVT produces 7 8 thousands students per year, 2 lakh Nepalese are going to foreign countries every year for work. Most of them for unskilled and semi skilled work in gulf counties and Malaysia. Long Term Goal: Nepal needs a large scale university. To establish the university FNCCI can play major role. Krishna Hari Banskota: Secretary, MOF (intervening in the discussion) Nepal s total budget for fiscal year 2066-67 is Rs. 285 billion. Government allocated 64 billion for education which was 17% of total budget. 91% children go to school. 4 th NRN Global Conference Report Page 19

Gyanendra Lal Pradhan, FNCCI Nepal is facing load shedding problem at present. I say it is investment opportunity for investors. There are different choices of investment. As an investor of Hydropower I always say that if you love Nepal, come to invest in Nepal especially in Hydropower. Once you invest in this sector, the benefit goes to generations. Most of the NRNs are interested in real estate business. Nepal s total population is 300 million; demand of power is 2 lakh MW. Nepal government s target is to install 10,000 mw capacity within 7 years. It is true that hydropower is not garment, carpet and nor ghee so it does not give returns in short period. Once it starts to give return it will be continued. This is only one that kind of sector that investor should not be worried for marketing, competition. Nepal electricity authority buys all the generated power. According to the data of FNCCI, Nepal lost Rs 5 billion due to load shedding last year. Hydropower is that strong technology which is not changed in short period. It is the base of rural development. Nugal Anand Vaidya, FNCCI/FCAN Kathmandu- Terai Fast Track highway may help Nepal as a trade center of India and China. Total 90 km long this highway begins from Khokana, Lalitpur to Hetauda Pathaliya. Total cost for the highway is estimated US $ 80 Million. Nepal Government called a bid last year and 3 foreign companies participated in the bid. The mega project is a project of national prestige of Nepal. To reduce project cost Nepalese investment is needed. Krishna Hari Banskota, Secretary, MOF Nepalese investment policy is suitable for Nepali investors. Government has introduced investment friendly policy and will continue to do so. There is no intention to harass investors. Government is ready to launch investment friendly labour policy, phase out the syndicate system. Nepal government is always ready to put red carpet for investors. So government gave permission to establish infrastructure development bank, reinsurance facilities etc. The custom department will not tax on recycle. 90% goods are not checked in custom. 1.5% of export services tax has already been phased out. So I want to assure you that investment in Nepal is secure. 4 th NRN Global Conference Report Page 20

SESSION 4: My Vision: Prosperous Nepal Moderator: Mr. Bijay Paudel, Presenter- Kantipur TV In Dias: 1. Mr. Barsha Man Pun (Ananta), Leader UCPN (Maoist) 2. Mr. Madan Krishna Shrestha, Famous Artiste 3. Ms. Ram Kumari Jhakri, president ANNFSU 4. Mr. Gagan Thapa, CA member, Nepali Congress 5. Mr. CK Lal, Political Analyst 6. Mr. Rajendra Khetan, Entrepreneur & CA Member, NCP Barsha Man Pun (Ananta), Leader UCPN (Maoist) I would like to thank you all for being here. As we always have been talking about peaceful and prosperous Nepal and we have always believed in it and we are working for it. That is why we passed through the decades of conflict, and now if we don t have a common consensus and continue with the same political instability, we cannot achieve the goal what we have been longing for all these years to have a new and prosperous Nepal. To have a new prosperous Nepal, we should strengthen the politics first and then the economy. Until and unless we settle the politics and come up in a common goal, we cannot have the dream of having a prosperous economy. To foster an economic boom we have to have peace and political commitment. All of the dreams that we have can be achieved only with a strong and common political will, which is a must to all of the leaders of New Nepal. Whichever parties we belong to we are not far from being selfish and self centered. We are practicing the same age old leg pulling dirty game. I hereby, request to you all of the NRN s to come up with suggestions and build up a pressure group that will pressurize all the leaders and politicians of the country to move away from the dirty games that they were playing in the past. If we settle the political issues then only can we think of creating economic prosperity. Madan Krishna Shrestha, Renowned Artiste There are many familiar faces in this conference. I met many of them here and abroad also. I can recall them with the faces but couldn t figure out where. I request you all if we happen to meet please don t ask where we met. The other day I met a guy and he came to me all excited and said hello Madan dai how are you? Do you know me? I knew that I met this guy before. He wanted to know whether I could recall where I met him or not. I answered him that yeah, we met in Japan. But unfortunately, he told me that we met each other in Damauli. 4 th NRN Global Conference Report Page 21

I am very happy today to participate in such a conference. This morning I was about to go to the hospital for the checkup for my back pain but when I watched Honorable President addressing this conference, I forgot my back pain and glued to the TV wondering why our other politicians can t have such feeling. These days there s no point in watching news. I don t see a reason to watch. News is meant to keep us updated on the happening around us but the only thing that we see everyday is the misunderstanding, the same agenda for months and months. Sometimes, after watching the news I feel not updated but back dated! Our honorable president Mr. Ram Baran Yadav spoke out straight today morning. During many of my interviews my journalist friends often ask me who is your favorite politician? I used to wonder whom to mention. Ganeshman, BP Koirala are long gone and if I look at the politicians today, I feel perplexed about them. One day I feel like we can count on this leader, he is a good guy, the next day he becomes a big joke. Some politicians are always like an angry man, I see them angry all the time, I wonder why can t they have a cheerful and smiling face? But now if journalists ask me who my favorite leader from today I with no hesitation can proudly name our president. It takes a lot to have the feeling of giving away. His words I don t want any of the votes if you are voting someone because he is a Madhesi or Pahadi" really touched me. We are not in a stage where we fight with each other about being Madhesi or belong to a sect with more power than the other. We should remain a united nation. The time is not for blaming each others. We should be united as a Nepali from Himal to Terai and Mechi to Mahakali. Have any of the current leaders said anything as such? Our leaders are very proud to divide the existing harmony between the communities, divide the people and become a leader of a group not of a country. Why can t they have a vision of being the leader of the united society, the leader of the whole nation? Aren t the examples of the many countries enough worth depicting? What an ethnic divide could bring to a nation? I and Haribansha used to get lots of invitations from Europe, America and Japan to host programs before the CA election. We decided to postpone all our programs abroad and do something for the CA election even though no one did ask. We went to the respective people and asked them whether we could do anything to make the CA election happen and we did a lot of awareness campaigns as you might have noticed. But to our utter surprise the election postponed many times. I don t think your urge for dual citizenship will materialize anytime soon, don t expect it. You know how the bureaucracy is! Its such slow that you have to push it all by yourself from a table to another with so many unnecessary hassles. How can you trust them that they would provide citizenship? When all the developed countries are welcoming the talented younger generation by giving them visas and a lot of other facilities. Our leaders are not paying any heed to them when they are eager to come back to their country to give back to the society the experience and money they earned abroad. I wonder what these politicians think. 4 th NRN Global Conference Report Page 22