Nepal and donors met in an atmosphere of crisis
Press release 133/2004
May 7, 2004
Return to peace and democracy a prerequisite for aid effectiveness
Finland considers that the present situation in Nepal does not allow an increase in aid to the country. Finland expressed its view at the Nepal Development Forum held in Kathmandu on May 5–6, where the Government of Nepal and the country's major donors were represented. The discussions were dominated by Nepal's deepening constitutional crisis and the Maoist conflict, which has now spread to various parts of the country.
The Nepalese government made a strong appeal for continuing external assistance and said that its need for the coming year was 550 million US dollars. However, most donors refrained from clear new pledges, considering that the preconditions for implementing development cooperation programmes have deteriorated in the country. The insurgent Maoist movement in Nepal has accelerated its operations during the past few months, and the security situation has grown worse to the extent that some organizations have had to suspend their operations in certain areas.
On the eve of the Nepal Development Forum, Finland gave, together with nine other donors, a joint statement calling for the formation of a multi-party government, a ceasefire and starting peace negotiations, international monitoring of human rights, and parliamentary and local elections. Furthermore, Finland announced its willingness to do all it can to contribute to resolving the conflict and the constitutional crisis and to restoring democracy.
Finland's bilateral assistance to Nepal was 3.56 million EURO in 2003. Nepal is one of the long-term partner countries of Finland's development cooperation, and it belongs to the group of least developed countries.
Further information: Director Pekka Metso, Unit for Asia and Oceania, tel +358 40 521 0541 (Kathmandu); Director General Päivi Luostarinen, Department for the Americas and Asia, tel +358 09 160 55326, e-mail: [email protected]; or Director Katri Kaarniala, Unit for Development Policy Information, tel +358 9160 56348, e-mail: [email protected].