Nepal Monitor: The National Online Journal

This page will udate Nepal Monitor readers on the official pronoucements by Premier Madhav Kumar Nepal while on his ongoing India visit (Aug 18-22, 2009). Updates will be posted on a rolling basis:

Address to a business interaction programme in Mimbai

Leading businessmen and industrialists from India and Nepal,
Ladies and gentlemen,

Let me first express my sincere thanks to you all for organizing this interaction programme in Mumbai, the business and financial centre of India. While Nepal is going through a political transition, all actors in Nepal associated with this transition believe that an economic transformation is fundamental in order for the political transformation to attain desired sustainability. Economic agenda is, therefore, very important to us. We wish to promote this agenda both in domestic and international forums. India is a close neighbor, good friend and a major economic partner. Therefore, I really value this occasion to interact with business leaders as it gives me an opportunity to share my thoughts on business and investment prospects in Nepal, and also to hear from you.

Dear Friends,
I have to come India on an official goodwill visit to further develop mutual trust, confidence and understanding with a view to taking our relations to a new height . I am fully satisfied with my talks with His Excellency Prime Minister Dr. Manamohan Singh and leaders of various parties . I am convinced that the visit has been very successful in further promoting our bilateral ties for our mutual benefit . I also had oppurtunity to interact with captions of Indian industry and commerce in New Delhi.

Nepal attaches great importance to its trade with India. India has been the single largest trading partner of Nepal. We have seen a significant increment in export to India following the arrangements made especially after the Treaty of Trade in 1996. But the situation is reversing in the recent years. Both Nepal and India are working towards further liberalizing their respective international trade. The revision of the Treaty of Trade would provide a strong basis for promoting the trade and economic linkages by harmonizing the efforts on trade facilitation measures.
Nepal has given due importance to the task of encorporating trade into development agenda. For that the Government of Nepal acknowledges and acclaims the role of the private sector as an engine of growth. For that reason, our development agenda anticipates collective and collaborative efforts by the government and private sector.

Our private sector has readied itself to assume a meaningful place in the overall task of nation building. Not only has it proven a reliable partner to our government, its role and partnership has transcended the Nepalese border. They are promoting collaboration with their counterparts in India for advancing trade and investment relations. Let me express my confidence that the Joint Task Force set up by the FNCCI and the CII has come up with practical recommendations in promoting cooperation in various areas of economic activities. Here I would like to urge the business communities on both sides to forge further partnership to exchange trade data, information on business opportunities as well as on transport and trade logistics in order to smoothen the flow of trade. I assure that the Government of Nepal will facilitate any initiative taken by the private sector in promoting trade and investment complementarities between our two countries.

The Government of Nepal has placed industrial development as the critical component in its economic and social transformations. The New “Industrial Policy” of Nepal would be a comprehensive but implementable instrument expected to be effective in attracting the foreign investment by eliminating double taxation, promoting transfer of technology, enhancing productivity and competitiveness of industrial sector. Special attention would be given to the areas of competitive advantage and comparative benefits, development and operationalization of special economic zones, strengthening of the industrial governance and promoting collaboration with all. Nepal has already framed the strategic and structural set-up for institutionalizing a high-powered and functional “Board of Investment”. The Board will facilitate effective delivery of integrated services required for reinforcing substantive investments resulting from the dynamics of global opportunity.

The world has noted a substantive rise in the Indian capabilities to invest. Last year, it is reported, the outflow of Indian foreign direct investment was larger than the inflow of total foreign direct investment in India. Some of the Indian companies have already become global players to reckon with and Indian investors have put their imprint on some sectors globally. India is already the largest foreign investor in Nepal. The efforts made by the Government of Nepal to further liberalize the industrial policy and investment regime, various institutional and strategic reforms made in that connection, as well as the growing Indian capabilities to make foreign investment all encourage us to call the Indian business and industrial community for more investment in Nepal.

Now that we are moving ahead with peace process and rebuilding and reconstruction, my government's objective is to speed up growth and alleviaet poverty. For that we are determined to utilize the current atmosphere of peace to its fullest. The reconstruction of the damaged facilties and building of infrastructure and hydro-power developmen are our declared priorities. This is a great opportunity to the private sector. Another important area for foreign investment is the tourism sector. I need not reiterate here the potentials of Nepal as a preffered tourist destination. With peace and stability the number of the tourists has already started growing in Nepal. We would like to attract more Indian investment in that sector while also attracting more Indian tourists into Nepal. There are many more areas where you can invest. Agro-processing, IT, light manufacturing, finance services, health, education are some other areas of possible investment in Nepal.

My governmet will make every effort needed in order to to create an atmosphare that is conducive for promoting Indian direct investment in Nepal. I am always willing to listen to your suggestions. Similarly we also expect that the days ahead will witness more trade facilitation measures giving boost to bilateral trade between our two countries. The Government of Nepal will not shy away from the role of a facilitator to unleash the innate creativity and entrepreneurship of the people, a role generally expected from it. We remain committed to provide necessary securities including repatriation of capital and profit earned by the investors in Nepal.
Thank you!

Remarks by the Rt. Hon. Prime Minister Mr. Madhav Kumar Nepal at a business interaction programme (Mumbai August 21, 2009)

####

Address at IIC

Chairperson
President of the India International Center Prof. M.G.K. Menon
Distinguished Guests
Ladies and Gentlemen,

1. I feel honoured and privileged to have the opportunity to attend this talk program organized by the India International Center (IIC), an established name as a premier non-official organization both in India and abroad. I am particularly delighted to know that over the years the Center has been actively engaged in encouraging and promoting intellectual and cultural activities throughout India. I would like to take this opportunity to convey my grateful thanks to the President of the Center for his kind invitation to me to speak before this distinguished assembly of intellectuals, professionals and friends of Nepal.

2. Nepal and India are closest neighbours and friends. Our bilateral relations have always been marked by mutual respect, goodwill, understanding and cooperation. If for a while we step beyond the traditional bounds of official relations and tread into the realm of people to people relations, the closeness and cordiality that exists between our two peoples becomes all the more evident. Both our societies derive their fundamental social norms and values from a common pool of ancient wisdom and cultural heritage whose timelessness has been universally recognized. As the proud inheritors of one of the enlightened and ancient civilizations known to mankind, our two countries have much in common. These shared commonalities and the deep sense of social affinity subsisting between our two peoples since time immemorial need to be nurtured and consolidated further for our mutual benefit in the days ahead.

3. The excellent relationship between Nepal and India, which is deeply rooted in historical ties, needs to be elevated to a higher plane to reflect the current realities and expectations of our two countries. The cooperation between our two countries still remains untapped to the full. Our relations have been marked by mutual trust and understanding, and mutual cooperation and benefit. As we move ahead towards consolidating peace and making the country inclusive under a new republican framework, we see great opportunities for further nourishing our relationship. We all know that in a globalised world, peace and stability or their absence, in one country affects the other. It is therefore in the interest of all that we work together with more vigor and in partnership to promote sustainable peace and long term development of all countries and especially of the countries in our own neighborhood. It is with this view in mind that I am committed to transform our relationship into a comprehensive partnership and higher level of cooperation based on fundamental principles of international relations and mutual benefit and visionary outlook in the days ahead.
4. As a close neighbour, friend and well-wisher, Nepal is always happy to see India making progress in all fields. We have been particularly impressed by the pace of economic growth achieved, the extent and scope of scientific and technological progress made, and the remarkable level of socio-economic development registered by India in recent years. Today, the Indian economy registers a consistent growth rate of about 8 per cent, one of the highest in the world. This is indeed a great achievement which would not have been possible without creating the necessary socio-economic condition by developing human resources, physical infrastructure and a committed leadership. While we admire this spectacular achievement made by India, we hope that as the largest economy in South Asia this will have its spillover effects on the rest of the countries in the region and help them uplift themselves from the quagmire of poverty and underdevelopment.

5. South Asia boasts of historic linkages, common culture and social norms and faces common challenges. Regional cooperation of a higher order is indispensable to promote long term peace and stability and to advance economic prosperity in South Asia. We hold a common vision that working together through SAARC and BIMSTEC, we can visibly contribute to bring about perceptible change in the lives of the common people. We should therefore accelerate the scope and pace of regional cooperation to realize our common goals for the benefit of our people.
6. I am glad to note that India has withstood the current global and financial crises with great fortitude and has been able to minimize its negative impact with clear policy interventions. It has maintained its high growth rate with low inflation. It has reinforced that the developing economies in general and economies of the countries like India in particular are now major players in the international economic arena. This robust advancement despite adverse international economic environment is another new phenomenon of the present times, which will have long term implications in international relations in the days ahead.

7. I would like note that you have distinguished yourself with steadfast commitment to democratic ideals over the decades as the largest democracy in the world and by your continued social and economic progress. You have shown to the world how democracy and development could be successively strengthened to promote overall progress and prosperity of the people. This is yet another contribution of India to the international community.

8. We in Nepal are currently in the midst of a great transition. The Nepalese people fought a decisive struggle against autocracy and established Nepal as a republic. The country has been declared a Federal Democratic Republic and restructuring of the State is in process. A number of thematic Committees in the Constituent Assembly are at work in their respective fields. While remaining committed to consolidate the achievements of the past People’s Movement, we have three major tasks at hand:
(i) taking the on-going peace process to a positive conclusion
(ii) writing a new democratic constitution within the stipulated time-frame, and
(iii) meeting the rising aspirations of the Nepali people.

9. The Government of Nepal is seriously engaged in fulfilling these responsibilities by building political consensus among the political parties through the democratic process of consultations and dialogue. It has been my Government’s constant endeavour to promote the culture of mutual trust and understanding in the spirit of consensus and cooperation among the major political parties in matters of national importance and concern. I must say that we have to keep up with this endeavour in the interest of maintaining peace, stability and the general well-being of the common people of Nepal.

10. We appreciate the sympathy and support that we have been receiving from our neighbours and friends in the international community for our development efforts and for the peace and well-being of our people. At this crucial juncture, I see even a closer linkage between sustainability of peace and rapid economic development. In fact, they reinforce each other. The transition time is always a time of great expectations and volatility. Popular aspirations for progress in political field have to be matched by equal progress in their daily lives. This is so especially because people suffered a lot in the last one decade of our internal conflict. In order to make up for the lost decade and catch up with the rest, we need a substantial enhancement of international cooperation and solidarity. With the friendly support from the international community, my Government is committed to shoulder this duty with a great sense of responsibility. It is in this perspective that we would like to open a new vista of relationship in a most cooperative and forward looking manner in all areas of our interactions in the days ahead. There is much that we can do together, and my government is committed to playing its full part in attaining these common objectives.

11. As always, the Government and people of India deserve our deep appreciation and grateful thanks for the generous support and assistance provided to Nepal. I am happy to note that there exists among our two peoples a profound reservoir of goodwill and respect towards each other in our respective countries. This deep-rooted sense of fellow-feeling and good-neighborliness among our two peoples binds our two countries together in an ever tightening bond of friendship and cooperation.

12. Rapid development supported by a sustainable rate of economic growth is the only way to alleviate the plight of the majority of our people struggling to graduate from the depth of poverty and underdevelopment. As a country with resource constraints and a number of other structural weaknesses including the disadvantages of being a land-locked one, Nepal has special needs to be taken care of at this particular juncture. We seek the valued support of our friendly countries in promoting foreign investment in Nepal in areas where there exist clear prospects for such investment. Hydropower development, infrastructure building, tourism, agro processing and manufacturing are some of the most promising areas for foreign investment. I would like to invite Indian investors to take advantage of this great opportunity that Nepal offers next door.

13. In conclusion, this Center is a living embodiment of the values and visions upheld and inspired by the great minds of India such as Dr. Sarvepalli Radhakrishnan and Pandit Jawahar Lal Nehru, the one a philosopher President of international reputation, and the other a great Statesman Prime Minister of India at the very crucial and formative time of making its ‘tryst with destiny’. ‘This International Center’, Pandit Nehru had prophetically observed at the inauguration ceremony, will, of course, not change the nature of the world, but it will help in the process, which is very essential today’. And, the Center has, indeed, been helping ‘the process’ in its own way. By working incessantly to promote better understanding between and among cultures around the world, the Center has been playing an important role in promoting peace, stability and human well-being across the world. Peace, we all know, is indivisible. In a rapidly globalizing and interdependent world, this is more so than at any time in human history. The fragility of peace, therefore, remains a matter of utmost concern for everyone today. Therefore, concerted efforts at all levels are needed to establish and sustain peace throughout the world.

14. With these thoughts, I would like to once again thank the India International Center for giving this opportunity to me. I wish this organization a very bright and fruitful future. I thank you all for your precious time and patience.

Thank you.

Speech by the Rt. Hon. Prime Minister Madhav Kumar Nepal at the India International Center (IIC), New Delhi (August 20, 2009)

####

Address at the Banquet hosted by Indian PM

His Excellency Prime Minister Dr. Manmohan Singh,
Madame Singh,
Honorable Ministers,
Distinguished guests,
Ladies and Gentlemen,

Let me begin by saying how profoundly I am touched by utmost cordiality, with which I and members of my delegation have been received in New Delhi since our arrival here. I express my gratitude for your invitation to visit India and for the generous words of welcome expressed to me and my country this evening. I have always admired the exuberance of warmth and profound goodwill here. I have brought with me greetings and similar feelings from the people of Nepal to the friendly people of India.

I would like to reiterate here that Nepal and India have enjoyed close and cordial relations since ancient times. They have been enriched by age old bonds of civilization, geography and culture. This long standing tradition has been reinforced by successive consolidation of intense and diverse interactions that touch upon various aspects of our lives. As a consequence, the deep reservoir of goodwill has generated admiration, respect and understanding between us. Mutual respect for sovereignty, independence and territorial integrity has further underpinned our engagement. People to people relations have added a profound and important dimension to our relationship. These deep rooted relationships constantly prod us to work together for the betterment of the lives of our two peoples through consolidation and promotion of all mutually beneficial activities.

My visit here is therefore not only to cherish our long standing and excellent state of relationship, but also to open a new vista of opportunity to erect a magnificent structure on the foundation of sustainable peace and inclusive development in Nepal. There is an unprecedented opportunity in Nepal now, when we see the burgeoning of a new spirit of the time and a great renaissance after a decade of bloody conflict and devastation.

Excellency,
We are deeply impressed by your consistent adherence to the democratic ideals and rapid growth and development. We are glad to see India with its great civilizational history, marching ahead steadily and gaining due recognition and status in international arena. It is also a measure of your maturity and pragmatic approach that you have successfully weathered the current global economic and financial crisis with least adverse effects. There are lessons to be learned by all.

Nepalese people have repeatedly made historic struggles to institutionalize democracy in the country. For our people, it has been a long and arduous walk to freedom and democracy. At last, we are arriving at our destination. The ultimate desire of our people is an everlasting peace, progress and prosperity within a democratic framework. Following the Constituent Assembly elections and the declaration of a federal democratic republic, the country is now blazing a new trail towards meeting the long held aspirations of our people. We have all agreed that there is a need for a far reaching transformation in political as well as economic and social fields in Nepal. We are committed to writing the constitution within the stipulated time frame and bringing the peace process to a successful conclusion. Similarly, a higher level of economic and commercial interactions, investment in infrastructure and development of mega projects have become imperative to accelerate the rate of economic growth and bring positive change in the lives of the people and thus reinforce the process of transformation in Nepal. We deeply appreciate the goodwill, support and cooperation extended by the international community in all our defining moments. India has always been at the forefront in extending support for a meaningful and positive conclusion of this nationally driven peace process. May I express our sincere appreciation for generous assistance India has provided over the decades and also for its consistent support and cooperation for a stable, peaceful, democratic and prosperous Nepal. I am confident that our cooperation to promote mutual benefit, especially at a time when we are going through a momentous change, will grow further in the years to come.

Excellency,
You have been rightly portrayed as an architect of India’s rapid economic growth, inclusive development and enhanced international status. Democracy and development have thrived together in India. India has gained new heights in the comity of nations under a sagacious and visionary leadership. In this globalised age of twenty first century and the rising economic status of India, we sincerely look forward to a more robust economic engagement with India in all fields for our mutual benefit. The new age of interdependence calls for intensification of cooperation in all mutually beneficial areas. India can ensure that as the most vibrant and largest economy of South Asia, Nepal could get maximum economic advantage from its phenomenon growth. Our engagements can be also enhanced with further consolidation of regional cooperation through SAARC and BIMSTEC. A robust and comprehensive regional cooperation does not only contribute to promote economic opportunities for all, it will also strengthen trust and understanding leading towards mutual prosperity. We are confident that we have found in you a sympathetic and reliable partner in progress. I sincerely believe that it would be continued vigorously in the days ahead.

With these words, ladies and gentlemen, let me propose a toast to:
Everlasting friendship between Nepal and India
Continued progress and prosperity of the people of our two countries and
For personal health and happiness of HE Prime Minster and Madame Manmohan Singh

Thank you.

Speech by Rt.Hon. Prime Minister Madhav Kumar Nepal Prime Minister of Nepal at the state banquet hosted in his honor by H.E. Dr. Manmohan Singh, Prime Minister of India New Delhi, 19 August 2009

####

Address to the Indian business community

Mr. Chairman,
Ministers,
Distinguished office bearers of FICCI, CII and ASSOCHAM
Leading Businessmen and captains of Industry
Ladies and Gentlemen,

I am happy to be here among the captains of industry and eminent personalities of the Indian business community. I am here not because I have to be here as part of the routine program. I am here because I wish to interact with you so that I can lift up the economic face of the nation. On this occasion, I would therefore like to express my profound appreciation to the CII and FICCI and assocham for organizing this program and providing me with an opportunity to share my views on the prospect of greater and deeper economic interactions between Nepal and India.
In the first decade of the 21st century, globalization has brought about an accelerated flow of goods, services and people across the borders. Against the backdrop of unprecedented progress in science and technology, revolutions in information and communications and the patterns of production and business, economic relationship has now taken a pride of place in the overall relationship between nations. This is so because it is an important means to deliver fruits of progress to the people. The inevitable role of private sector and business community in promoting relationship between nations is now an established norm in international relations.

Distinguished business leaders,
There is no need to reiterate that Nepal and India have been enjoying an excellent relationship based on mutual trust, good will and understanding. Because of geographical proximity and extensive economic linkages followed by cultural affinity and wider level of people to people relations, India has been our major development, trade, investment and economic partner. Our share of exports and imports is very high with India. A substantially high portion of foreign investment in Nepal comes from India. The generous assistance received from India has played a vital role in our development endeavors. Thus we cherish a long history of diverse and deep economic interactions between our two countries. Private sectors and business communities of both the countries have played a significant role in consolidating and strengthening our relations over the decades. But we feel that what we have today does not reflect our full potentials. There are many areas which remain untapped. The Government is therefore eager and committed to invite the Indian investors to come and invest in Nepal.

Ladies and Gentlemen,
Let me stress here that general political and overall environment in Nepal is improving with concomitant progress in the peace process in Nepal. The new constitution and success of the peace process will begin a new era in Nepal. We are not only talking about political change of historic proportion, we call for comprehensive transformation in Nepal. I believe that we can sustain peace and stability in the country only with rapid and inclusive development and social progress. Considering the large number of young, unemployed and restive population, we must ensure high level of and speedy development in all fields. That is a clear commitment of this government. We will therefore do our best to ensure security and peaceful environment in the country by building consensus and cooperation among all the parties including those in the opposition. We have already come out with a new security plan, which we are committed to implement. We believe that it is in the larger national interests to accelerate progress and share the fruits of development with all. The Nepalese people who have gone through the violent conflict for a decade deserve better and we are alive to their aspirations.

It is the priority of my government to push forward the peace process, write constitution in time and ensure effective delivery of services to the people to let them enjoy the peace dividend. In this world of twenty first century, economic growth and inclusive development alone can sustain peace and stability in the country.
It is in this context we would like to invite Indian industrialists and businessmen to Nepal. There are great opportunities as we are focusing ourselves on rebuilding and reconstruction. We also have to catch up with the rest of the world for the lost decade. You know about the opportunities better than us. Just To name a few, opportunities in hydropower, road, bridges, infrastructure, construction materials, tourism industry, agro processing, education, health and finance services are there for all to see. My government is ready and will be very responsive to all your suggestions. We are for an enhanced level of foreign investment. I am committed to establish a high level investment board to clear all big projects and quickly provide as much facilities as possible and help you operationalise your projects at the earliest. The Prime Minister’s office will follow up and coordinate to make sure that you feel at home, your obstacles are removed and you get a high level of attention from the Government. I will personally make sure that foreign investment is given due priority by all the sectoral ministries to ensure its smoother operation. I will also have a high level political committee established to give necessary boost to the foreign investment in Nepal. We know that in ensuring your business we will simultaneously promote our own economic development and progress. We are committed to doing that as early as possible.

This is more urgent when we see that the countries in our neighborhood have made tremendous achievements in recent years in all spheres such as science and technology, trade and commerce, agriculture and information technology. India’s continuously high economic growth rate despite the current global financial and economic crisis is a proof that Indian economy has matured and thus has placed itself among the major emerging global economic power. I admire and congratulate Indian government and people in general and Indian private sector and businessmen in particular for their dedication and astounding achievement. Nepal and Nepalese people look forward to a closer and intensive collaboration with such a vibrant economy to ensure a win-win situation for all of us. It is only natural that as the closest neighbors we are looking forward to positive spillover effects from economically resurgent India.

Despite our long and intense economic relations, ever growing trade deficit remains a matter of concern to Nepal. While we are for larger volume of trade between our two countries we would like o make sure that it is made sustainable. Therefore, more trade facilitation measures, removal of non tariff and para tariff measures, enhancement of our supply side capacity through greater investment In Nepal would go a long way towards reducing trade deficit. In this connection we hope that with the effective implementation of the revised trade treaty and its successive consolidation in the coming years, we would be able to further promote trade in a mutually beneficial manner.

Ladies and Gentlemen,
Recognizing the importance of foreign trade and investment in our development process, Nepal has adopted an investment friendly and liberal trade policy. Promoting foreign direct investment is our priority. Accordingly, the Government has opened up almost all sectors for foreign investment. Procedures for investment have been simplified and repatriation of profit is guaranteed by law. Government is fully committed to provide necessary security for investments. Furthermore, the diversity of natural resources, variable climate zones, socio-cultural similarities and very cordial relations both at the government and people’s level are other incentives from which Indian investors can derive due benefits in Nepal. This is perhaps an important dimension of our relations and something which one cannot find easily elsewhere. It is for these reasons that I would like to take this opportunity to encourage you to invest in Nepal.

Cordial relationship between the business communities of the two countries plays an important role in deepening overall economic relations between us. I am glad that there exist institutional mechanisms to further consolidate them. I will greatly appreciate your valuable suggestions to further improve business environment and promote Indian investment in Nepal. Finally, I would like stress here that I am hopeful that Nepalese and Indian business community could make significant contributions to the socio economic enhancement through their joint efforts by promoting investment, tourism, trade and other mutually beneficial activities in the days ahead. In doing that you will have the most sympathetic hearing from me and my government.

Thank you.

Remarks by the Right Hon. Prime Minister of Nepal at a program organized by FICCI and CII New Delhi, August 19, 2009.

####

Address to the Nepal Democracy Solidarity Group

Hon. Mr. D. P. Tripathi, President of Nepal Democracy Solidarity Group and
Leader of the Nationalist Congress Party,
Hon. Members of Parliament,
Distinguished Friends,
Dear senior political leaders
Colleagues, ladies and gentlemen,
I am pleased to attend the program hosted by the Nepal Democracy Solidarity Group. People in Nepal deeply appreciate the moral support extended by the Group in the establishment of Democracy, Civil liberties and republican order in our country. Let me take this opportunity to pay our tributes to late Mr. Harkissan Singh Surjeet who first led this Group and played an important role in giving positive momentum to our struggle. I also thank CPI leader AB Bardan.

You all know that Nepal is currently going through a very important phase in its modern history. We are now in transition to a post conflict phase from a decade long internal conflict. It was possible because we all agreed that in today’s world, arms conflict will not solve any problem. So in Nepal too we chose the path of peace and cooperation and decided not to allow the language of guns to prevail. All the political parties of Nepal, including the Maoist party, have decided to agree on the future course that Nepal has to take through the interim constitution. That common understanding for beginning a new era in our political, economic and social fields brought all of us together. In November 2006, the Government of Nepal and the Communist Party of Nepal (Maoist) signed a Comprehensive Peace Accord finally bringing the decade-long armed conflict to an end.

You all know that in April 2008, Nepalese people voted for the Constituent Assembly. For the first time in the history of Nepal, the people got the opportunity to frame the Constitution themselves through their elected representatives. Elections to our Constituent Assembly were held under a mixed proportional representation system. That ensured that our Assembly is the most inclusive represented body. All marginalized groups are present in the Assembly and one third of its members are women. The first meeting of the Assembly declared Nepal a Federal Democratic Republic, and subsequently elected the first President and the First Vice President of Nepal.

Today the Constituent Assembly is busy writing the new constitution for the country. May I also inform you all that an extensive nation-wide consultation had recently been undertaken whereby our people gave direct inputs to the members of the Constituent Assembly. This exercise has further ensured the broadest possible participation of our people in the constitution drafting process.

The task before us is formidable. Nevertheless, when we look back to the last three years following the popular movement in Nepal which made the current changes possible, we have come a long way. But we know that we still have a longer way to go. We have to make substantial progress in institutionalizing peace and putting on ground the fundamentals of the Federal Democratic Republic of Nepal that is consistent with the popular aspirations of the Nepalese people. We hope to accomplish the task of making a new constitution within the stipulated time period.
In writing the new constitution, we all have agreed that the state in Nepal needs restructuring along federal principles that are most suitable to our own needs and circumstances. This restructuring is necessary in order to ensure mainstreaming of all marginalized groups. Similarly, Nepal is firmly committed to the principles of democracy such as multiparty competition, free, fair and periodic elections, individual liberty, freedoms of peaceful assembly and expression, human rights and the rule of law. Having undergone several political upheavals, the nation has now fully embraced the fundamental principles of democracy, not only in building a just society, but also in creating a conducive environment for economic development and lasting peace and stability. Here, may I submit to my friends, notwithstanding their historic significance, the new constitution and restructuring of the state are of fundamental importance to ensure peace, stability and progress in Nepal on a sustainable basis. Therefore my priority is to take forward the peace process to a positive conclusion with support, cooperation and unity among all the political parties. We have to do it together with all. And the constitution writing exercise should be completed within the stipulated time. The government and people in Nepal do not expect the transition to be long and difficult. People want to get over with the peace process as early as possible so that they can really concentrate on consolidating democracy, stability and progress.

We are delighted to note that the path of the home-grown peace process that we are charting today in Nepal has received wide support and cooperation from India and the international community. We thank all our international partners for the support and understanding. I believe that any political transformation is meaningful only when it is accompanied by economic and social transformation for the better. We have accorded high importance to the task of speedy and inclusive economic development. Here I would like to thank the people and the government of India for their support for our peace process and for building development infrastructure in Nepal over the decades. I hope that this cooperation will be scaled up and further strengthened in the days ahead in tune with current expectations and aspirations of the people of Nepal. We are all aware that in today’s globalised world, for any nation, peace and stability in the neighborhood are essential.

Nepal and India are very close friends. Our relationship is deeply rooted in our shared social and cultural values, strong ties of people to people relations. This long tradition of friendship has established enduring bonds of mutual empathy, respect and cooperation. We have been working towards further consolidation of this relationship while adhering to the basic principles of mutual respect for sovereignty, independence and territorial integrity of each other. The history of our relationship, the sweeping changes in Nepal, unlimited opportunity in making all round progress in our relationship and ever growing status and progress of India have created a convergence which augurs well for beginning a new era in our relationship. More specifically, the profound transformation that Nepal is going through and the economic progress of historic proportion that India itself is realizing now call for a vigorous promotion of our relationship to a higher plane with built in dynamism and vision. This is only consistent with the new realities of our time and the wider hopes and aspirations of our people. That is precisely the purpose of my visit here and it is with this vision that I would like to take the relationship to a new height with greater understanding, higher level of trust and comprehensive partnership in all possible fields. This will make peace, stability and prosperity a reality and sustainable in Nepal in the years to come.

I would like to thank you for your patient hearing and now I would like to open the floor for your views and interactions.

Address by Rt. Hon. Prime Minister to the Nepal Democracy Solidarity Group New Delhi, August [sic] 2009.

####