Nepal 2010: The Top 10 News Stories

Nepal Monitor samples the top 10 news stories of 2010. It was the year of the "race process", more than the "peace process."



As the last year of the first decade of the 21st century ends, Nepal Monitor, with research support from the Media Foundation, samples the top 10 news stories that more or less defined the events and issues in Nepal during the year. These stories dominated the headlines and affected our daily lives and our view of the world in Nepal.

These are suggestive and representative of the major stories that thrust the country into spotlight this past year, locally and sometimes globally. These were randomly selected by NM editors, based on their salience in the public domain.

# 1. Peace Process/Race Process
Although in early January discharging of Maoist combatants began, the sense of hope that initially prevailed proved short-lived. The year 2010 will be remembered for a long time as the year in which peace process got a weird twist and became a futile, frustrating "race process" with feuding political parties focused on gaining power and occupying the leadership chair rather than giving the peace process a "logical end", a reference to the sorting out of ideological differences and writing a new republican constitution.

Very little was achieved in deliberating over the writing of the constitution since the election of the Constituent Assembly (CA) in April 2008. Instead, in what was one big news story of the year, on May 29, the CA was extended by another year. Throughout the crises, consensus was the buzzword. However, the Maoists and the coalition partners in the government remained unable to find a common agreement on who should lead the government, more than on the many issues to be specified in the constitution. The Maoists-led general strike (May 2-7) launched to demand prime minister Madhav Kumar Nepal's resignation, and a national unity government in their leadership, along with counter-strikes, was another news that dominated the media, inside and outside the country.

Following PM Nepal's resignation from the post of prime minister on June 30, almost two months after the Maoist-led crippling strike, lawmakers embarked on an action that became the centerpiece of news for the year 2010. With two candidates on the fray, Ram Chandra Poudel of Nepali Congress and Pushpa Kamal Dahal of Unified CPN-Moaist, they tried 16 times to elect a new PM, without success. Because of the lack of support from other parties, chiefly Communist Party of Nepal (United Marxist-Leninist) and a few Terai-based parties, who abstained from voting or remained neutral, none of the candidates garnered the required two-third votes in the CA of 6001. Dahal withdrew his candidacy on September 26, after contesting for the 8th time. Part of the reason was the party's vote buying scandal involving China, made public via the leaking of the infamous Mahara wiretap. Poudel was the sole candidate for the top post and ran the race until the end, i.e. 15th time, until the Supreme Court on December 18 ruled that lawmakers in Parliament could no longer choose to remain neutral or abstain from voting in the election for the prime minister. The deadlock only help lengthen the life of the caretaker government of Mr. Nepal, perhaps the longest such governments, over 6 months, by the end of 2010.

Key contentious issues included the integration of Maoists in the national army, form of governance, nature of federalism, state restructuring, etc. The news about the works of the constitutional committees remained largely unreported, despite the fact that substantial works had been achieved in those committees. A positive indication regarding this issue was the formation of high-level taskforce under the leadership of Dahal, on October 11. By the end of the year, on Dec. 20, the taskforce had resolved 127 of 210 issues concerning the constitution.

Clearly, the biggest news of the year was that the political parties squandered a lot of valuable time in dramatics than in action. A related story in the loss of faith in Nepal's peace process, even within the international community, and the indication that the time was running out for political parties and country's leadership was the fact that the United Nations Mission in Nepal (UNMIN), whose term had been extended for seven times in the past, was pulling out of the country as early as January 2011.

# 2. Economy and Development 
Nepal's overall economy was directly impacted by continuing political instability, lack of progress in constitution building and state-restructuring, etc. The country's economy grew by a low 3.5 per cent. The country's unemployment, already affected by the global recession, remained 46 percent, as compared to 42 per cent in previous years. As one economist, Bishwambher Pyakurel, put it, in Nepal "in Nepal, all three villains namely recession, inflation, and depression are still going strong and hurting macroeconomic fundamentals." The slowdown or contraction was witnessed in agricultural production, mainly rice (11 percent) and paddy (4 percent), directly affecting Nepal's overall GDP. Inflation hovered around 10.5 per cent. During the first four months of FY 2009/10, sugar prices increased by the highest rate of 50.6 percent, compared to the 37.6 percent in the same period the previous year. Nepal exported little and imported more during the year.

The remittance sector brought good news. The formal remittance inflow to Nepal in 2010 reached US $ 3.5 billion, as compared to US$ 2.98 billion in 2009, according World Bank's new report "Migration and Remittance Factbook 2011". In contrast the once-surging real estate sector came almost to a halt largely because of liquidity crunch as well as the new directive by Rastra Bank requiring banks not to issue loans of more than 60 percent of fair market value of the collateral/project to real estate companies. Another sector that continued to perform dismally was the stocks market. The Rastra Bank said in a recent report that NEPSE index had dropped by 31 per cent to 420.30 points in mid-October 2010. The index was at 609.55 in the same period last year. Investor's confidence continued to wane, with fewer investors entering the market as demand for shares decreased substantially.

Despite economic uncertainties and liquidity crunch, the banking sector continued to expand with new banks entering the market. The dismal economy was contrasted with frequent news reports on the banker's hefty monthly salaries, ranging from Rs. 600,000 to 1.5 million. The Rastra Banks move to cap these salaries and benefits of banks' chief executive officers also received critical coverage in the media. Another story that came as a backdrop to the faltering economy was long delay in presenting the national budget in the parliament. The Unified CPN-Moaist was determined to block the budget presentation. The finance minister who was about to present the budge was attacked by some Maoist CA members. On September 20, the budget was presented on presidential ordinance.

Additionally, the budget debacle also hampered development works and tested the patience of foreign donors. Aid commitment during the crisis dropped significantly, almost by US$250 million as compared to the same period the previous year.

# 3. The death of Girija Prasad Koirala 
On March 20, Girija Prasad Koirala, "a man with simple convictions", died at the age of 87. This was definitely the biggest personality story coming out of Nepal in 2010. He fought a long battle with chronic obstructive pulmonary disease. As a member of the Koiralas, Nepal's own Gandhi or Kennedy type clan, Girija Prasad was a founding member of the Nepali Congress party. He became the prime minister of Nepal as many as five times. Although he was widely criticized for tolerating (and even promoting) cronyism and nepotism, he was also considered a shrewd party strategist and skilled organizer and a champion of democracy and pluralism.

Girija's faltering reputation following the 1990s got a facelift after he joined opposition forces, including the underground Maoists, in the people's movement to restore complete democracy in 2006. He was the architect of the ongoing peace process in Nepal. He is widely credited to have brought the Maoists into open, competitive politics as well as a major force in the downfall of the monarchy in Nepal. Girija defined an era of tumultuous change in Nepal, and his death created a major news event of the year.

#4. Internal Democratization of Political Parties 
Amidst the uncertain political/peace process and the economic downturn, there were some positive signs of internal democratization within political parties mainly via electoral contestation and open discussions. This was significant because major parties had not held their conventions for several years, and decisions remained largely hierarchical rather than inclusive and participatory. Both the Nepali Congress and Unified CPN-Maoist held their highest general conventions (the other major party, CPN-UML held its own a year ago, in February), and these events stimulated open debates and discussions, and even dissentions within the party hierarchy.

For example, there was a visible shift in the power base within the NC, with the election of Sushil Koirala as president on September 21. NC's central committee is now seen as more diverse than before. Similarly, the Unified CPN-Maoist organized its sixth plenum in Palungtar of Gorkha, September 21-29. This was the party's first above-the-ground plenium, since it came in the open as an underground party in 2006. The plenum offered a means to voice separate and dissenting voices within the party ranks, with Pushpa Kamal Dahal, Baburam Bhattarai and Mohan Baidhya representing different ideological leanings within the party.

These exercises, also seen in the factional bickering and splitting of parties in the Madhes-based political entities, served to convey to the people the inside dynamics of their political leaders, and thus fostered some measure of transparency and open debate, utterly lacking in Nepal's limping democratic process.

# 5 External Affairs, International Influences 
The year also saw a marked signs of external influences, and in some cases subtle interventions in the affairs of Nepal. The headlines that pervaded the media concerned series of visits to Nepal by Indian high-officials expressly in an attempt to facilitate the faltering peace process. The Indian involvement received sharper focus when in August there ensued a tussle and war of words between the Nepali media and the Indian embassy in Kathmandu.

The whole saga began with the Indian blockage of newsprint belonging to Kantipur, a leading daily from Kathmandu. Soon the embassy began to criticize Nepali media for what it perceived to be critical and biased news coverage of India. The whole episode crystalized in media's critical reports about Real Juice, a beverage by an Indian multi-national. The Nepali media charged the embassy of blocking media advertisements from Indian multi-national companies based in Nepal. At a deeper level, India was also seen as the prime force behind the ruling coalition, and analysts observed that it was determined to keep the Maoists out of power. Because of that its relations with the Maoists strained further.

Another related story concerned China, which continued to send high-level delegations, including military leaders, to Nepal. The Nepali Maoists also were seen developing closer relations with the Chinese establishment, with Pushpa Kamal Dahal and his associates making more frequent visits to China. The Mahara wire tapping incident, which revealed that the Maosits were seeking large amounts of funds to buy votes in Nepal's parliament, brought the China connection to a sharper focus.

Another major external story, concerning Nepal and USA, and potentially an irritant in the bilateral relations of the two countries concerned secret documents. The announcement of releasing some 2,600 unclassified and secret US embassy (Kathmandu) documents by the whistle blower site WIkileaks caused a huge media clamor as well as prompted US ambassador Scott DeLisi to make friendly crisis-communication rounds of Nepali officialdom. The anticipation regarding the yet-to-be-released documents created many headlines.

# 6. Media/ICT
The media, and Information and Communication Technology sector was voted as #6 among the stories of 2010. There were several related stories that dominated the headlines throughout the year.

First, two violent events shocked everyone. On February 7, media entrepreneur Jamim Shah (who started Channel Nepal, the country's first private television channel) was shot dead in broad daylight near Lazimpat, in the heart of Kathmandu. Less than a month later, on March 1. Arun Singhania, proprietor of Janakpur Today and Radio Today, was shot dead in Janakpur by unknown assailants. Both events signaled a shift in violence from journalists to media managers and owners.

Stories of media growth and expansion were other headlines about media. The use of social media, the entry of several new broadcast outlets, radio and television stations in the market, and the advent of direct-to-home television were such stories. The print media continued to thrive, and a daily economic newspaper, the country first, also hit the newsstands.

Another significant news concerned telephony. By 2007 telephone penetration was 8%. By October 2010 mobile penetration in Nepal had reached around 30%, with mobile subscriber numbers having increased tenfold in just three years. Increased competition among service providers, such as Nepal Telecom and NCell, also dominated the headlines. Similarly, the growth of the Internet was another recurring theme in the media. In 2009, Internet penetration was 1.87% of 27 million population. By October 2010, there were 2.46 million Internet users, and the penetration rate stood at 8.76 percent. Another Internet related story concerned the government's efforts at regulating cyber cafes and developing some sort of oversight of the Internet in the interest of public decency and preventing cyber crime.

# 7. Anuradha Koirala
Anuradha Koirala, the social worker, and the founder of Maiti Nepal, a shelter for victims of trafficking and abuse, was declared the CNN Hero of the Year 2010 for "protecting the powerless." Her non-profit Maiti Nepal, started in 1993, fights against women trafficking, and today serves in 29 districts of Nepal, and has a network of supporters and friends across many other countries. So far, it has rescued over 12,000 girls. For the award, Koirala received more than 10,000 nominations from over 100 countries.

Koirala received a check of US$125,000 in award money. She told a local newspaper on receiving the award: "My wish is to shut Maiti Nepal as soon as possible because it will mean that trafficking has been completely stamped out in Nepal. The day I can close down Maiti Nepal will be my happiest day." Not only for the good cause of Koriala, but also in terms of Nepal's international news exposure, her recognition by one of the world's major news channels was a very significant news story on Nepal in 2011.

#8. Royal Aspirations 
Nepal's royalty was formally downed in 2008, but as events of the year showed, it was not fully out. The former king, Gyanendra, made several public appearances, and spoke to media persons, often inviting criticism of his actions from political leaders. His lengthy visit to India earlier during the year, as well as his cultural tours across the country, including the activities and pronouncements of ex-prince Paras, his son, and the charitable campaign launched by his daughter-in-law Himani, attracted considerable media focus.

The topping on these series of media events was none other than the one which involved an argument between Paras and Rubel Chudhary, the son-in-law of foreign minister Sujata Koirala. The drama that followed after the event in Chitwan in which Paras, in a gust of "nationalistic" fervor, shot a bullet in the air to scare Rubel, dominated the headlines as the year came to an end. For the first time in the country's history, a member of the (erstwhile) royal family was held in police custody.

The increased public appearances of the former royal families, specially amid continued political stagnation, were interpreted to be motivated by their desire to return to power. And in deed, leaders of the political parties close to the royals, such as the Rastriya Prajatantra Party, openly called for ex-king's intervention, offering dramatic news values.

# 9. ‎Visit Nepal Year preparations
The last time Nepal organized a Visit Nepal Year was in 1998. The decade-long conflict came a big blow to the tourism industry. As the country struggles to regain peace, it is redoubling its efforts to restore the industry fully. On February 26, 2010, the government formally launched Visit Nepal Year 2011. with a view to drastically increase the number of tourists visiting Nepal. The government plans to increases the total foreign exchange earnings from tourism sector, which now stagnate to 1.5 per cent of GDP.

Throughout the year, stories about the preparations of the campaign were common in the media. In August, the Nepal Tourism Board said that in the preceding 11 months, as many as 412,446 tourists visited Nepal by air. It noted that this was the first instance that the country was in deed heading to recovery since the slump started in 1999. Annual figures in the last eleven years have never been as high. Around 421,243 tourists had visited Nepal by air in 1999. The formal inauguration of the campaign, which undoubtedly will be a major story in 2011, will take place on January 14, 2011 at Dasarath Stadium in Kathmandu.

# 10. Haiti cholera and Nepali Peacekeepers 
This story widely circulated in the international media and for its impact back home, it was damaging to Nepal's image. As many as 1,300 Nepali peacekeepers are stationed in Haiti. The cholera outbreak that began in October 2010 killed over 3000 people in Haiti. Nepali peacekeepers were accused of being the source of the cholera. A study conducted in November by French epidemiologist Professor Renaud Piarroux also linked the virus to Nepali soldiers. The UN cautioned against any unverifiable conclusions, and Nepal condemned the study linking her army to the cholera.

Other major stories, some of which just missed the top 10, included (in no particular order):

• Chief of the Kathmandu Metropolitan Police, Ramesh Kharel, on the path to restore law and order
• Transparency International ranks Nepal as the most corrupt country in South Asia
• Nepal emerges as a Gay Tourism destination
• Suicide of writer Bharat Bhurtel, the author of President's biography
• Nepali women cricket and football teams, won in a few mega international tournaments
• Foreign adoption of Nepali children
• Nepali fashion icon Prabal Gurung emerges in USA
• Manisha Koirala weds Samrat Dahal
• World cyclist Pushkar Shah conquers Mt. Everest
• Film actor Gopal Bhutani dies
• Khagendra Thapa magar enters the Guinness Book of World Records as the shortest man
• Littérateur Govinda Bahadur Malla "Gothale" dies
• Shrikrishna Upadhyay of SAPPROS wins 'Alternative Nobel', the Right Livelihood Award (shares £200,000 with 3 others)
• MDG achieved in child mortality
• CPN-UML leaders on foreign junkets
• Saarc Trade fair in Kathmandu
• Two new bird species found in Nepal
• Tiger convention in Russia
• Bhutanese refugees to third country settlement cross 40,000
• Controversy regarding illegal felling of trees and minster of forest Dipak Bohora
• Charles Sovraj verdict
• Bibek Shah, former secretary to late King Birendra, publishes a memoir regarding the palace massacre
• Machine Readable Passport scandal
• Nepal army recruitment controversy
• Bhaktaman Shrestha abduction, May 2010.
• Air crashes: Agni Air (Near Lukla, 14 killed, Aug 24); Tara Air (in Okhaldhunga, 22 killed, on Dec 15).

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