Sunday, 28 June 2015

2015 Off the Wall Newsletter 7






Off the Wall Newsletter April 2015

With Dragker Ri 6793m in the background and Dragnag Ri 6801m in the distance, trekkers head up the snowfield towards Tesi Lapcha 5755m, the pass linking Rolwaling to Khumbu.

Another trekking season gets off to a bad start On Wednesday 4th March a Turkish Airlines flight from Istanbul carrying 238 people skidded off the runway at the Nepal International Airport, Kathmandu. According to reports in the local press at the time this was as a result of 15 tons of aviation fuel in one wing tank unbalancing the aircraft on the slippery runway.
The plane had been circling for 30 minutes before it was given permission to land in poor weather, the accident occurred during the plane’s second attempt at touching down. Passengers evacuated the aircraft via the emergency chutes, there were no reported casualties. Heavy rain over the previous two days had left the runway in a very slippery state. The final resting place of the aircraft resulted in its port wing encroaching onto runway space thus reducing the serviceable runway length to 5,000 feet, this subsequently resulted in the closure of the main and only runway and effectively Nepal.
The delay in removing the Airbus 330 was due to the lack of emergency equipment and heavy lifting gear in Nepal.  On Nepal's request, a Super Hercules aircraft was despatched from Kalina, India and reached Kathmandu on Thursday 5th with 25 technical personnel and a 7.5-tonne Damaged Aircraft Recovery Kit (DARK). The Indian team is the only one of its kind in south-east Asia. At least 27 international carriers operate over 80 International flights into Kathmandu daily, many of these would have been bringing in tourists for the beginning of the season. By Saturday the 7th March over 50,000 international passengers had been stranded with 280 international flights cancelled. Domestic flights were not disrupted.


The lack of a suitable aviation tug resulted in a normal heavy road haulage tractor (lorry minus its trailer) being commandeered so that the plane could sit on the trailer coupling bed and be towed away.  The airport was finally opened for international flights late on Saturday 7th March, a great relief for the estimated 21,000 passengers stranded in Kathmandu.
This was a very lucky escape for all concerned, and despite the fact that the area was covered in fire retardant foam extremely quickly, it does beg the question how ready is Nepal for a major incident?

Do you believe what you read in the papers?
This headline appeared in the Himalayan Times on the 17th February.

There is a real difference between what happens in Nepal, what the media reports and the reality, and what potential trekkers and tourists perceive. As if Nepal is not suffering enough from incidents that could be held as being beyond the control of man there are as many equal actions that could be avoided.  On the 17th March the political parties called a general strike for April, in fact several general strikes and some of a multi day duration. Why; because there is no progress in agreeing the general principles of the constitution (now overdue by nearly 10 years). I won’t (or can’t) go into all the details involved here but suffice to say that there will always be winners and losers and in this case those in power will always be the winners and the rest ...the losers. ‘Tourism’ is a big money spinner in Nepal, it might not figure highly in the general figures banded about in GDP terms, however it is certainly the oil that keeps those people living in the middle hill districts alive and operational. The strike was called on the 7th April and there was intense negative political comment on social media. However, the ‘bandha’ was lifted for the following planned two days. Did someone see sense?
How much more do the powerful leaders in Nepal need to do to shoot themselves in their own ‘tourism foot’? Nepal needs to wake up to the fact that not only are there other mountain destinations outside of Nepal but that there are real ‘adventure’ destinations around the world. There are many agencies in Nepal ‘crying’ over the lack of tourists this season; but they need to look at their national leaders and political activists and ask ‘What are you doing to us and why?’ They also need to look at what they are doing to themselves. As a result of the avalanche on Everest last season one company had over 250 Nepali staff working for them, sadly none of them were able to set foot on the mountain. Despite the fact that the agency had received full payment from the clients, which was not refunded, the Nepali staff did not received their salary on the basis that they did not complete their contract. Those staff, allegedly, all resigned from that particular company. Nepali operators are taking over the business rankings previously held by international operators offering credible Everest Expedition support at lower prices than the non-Nepali operators. Nepali companies are offering Everest in the $25K-35K range while non-Nepali from $40K to $65K range. However, there is a huge difference in what you get for your bucks, in many cases it is not what you might read on the tin - buyers beware. With the Nepal and Tibet governments controlling much of the costs today with permit fees and set requirements for wages, insurance, the treatment of Sherpas, cooks and porters a base price has been effectively established, any organisation offering less than that will have to be making a saving from other directions, from the standard of support, logistics and equipment or in the reduction in their staffing costs and numbers, I guess it certainly won’t be coming out of their own profit jar.

Everest 2015
Another recent announcement was that a ‘new’ route had been planned to avoid the danger spots of the Ice Fall. In fact the route is similar to that used a couple of decades ago and simply puts into effect a better risk assessment. The line will now follow to the right of the ice fall nearer to Nuptse, finally exiting slightly right of a middle point at the top. However, the guides are not happy as this will add several hours to their time in the ice fall despite the fact that is will be a safer line. The route will be technically harder with at least one section involving four vertical ladders tied together. The route had over the years moved to the left as the terrain is easier going and thus faster for both clients with less mountaineering experience and guides who sometimes pass through the ice fall several times a day.
Interestingly, the Swiss put ropes on the Matterhorn when and for what purpose?!
Since the report of the 17th February the Nepal Government has announced that the permits issued in 2014 would be valid up to 2019. Insurance cover for the Nepalese climbers has now been increased and now ranges as follows: Sirdar 15 lakh, High Altitude Worker 15 lakh, Liaison Officer 12 lakh, cook 10 lakh, kitchen helper 8 lakh, porters 6 lakh, medical coverage 3 lakh, rescue coverage 10 lakh (rescue is per team). A lakh is approximately US$1,000.
It was reported in the Himalayan Times 31st March that David Breashears, the film director behind the first Everest IMAX film and a key mountaineer involved in the rescue attempts on Everest in the 1996 tragedy, when many people were caught up high by an unexpected storm, is at Base Camp to ‘support’ the Sagarmatha Pollution Control Committee (SPCC) in the fixing of the route through the Ice Fall by providing his aerial photographs of the area.
There are reportedly 287 foreigners who have Everest permits plus 300 Sherpas; 22 expeditions form Nepal and 7 from Tibet. 2015 is on track for 500 to 600 Everest summits, about the same as in previous years.
By the 3rd April it was stated that the route had been pushed up to Camp 1.
Amongst those on the ‘list’ are a team from the India Army and a team of 15 British Gurkhas. The Indian climbing team will consist of 34 members who will split into two groups, one plans to collect more than 8,800 lbs. of non-biodegradable garbage and equipment that's been discarded by climbers while the other group makes a summit bid. For the ‘record breakers’ Matt Moniz and Willie Benegas plan a ski descent of the Lhotse Couloir, the Spaniard Killan Jornet is going to attempt a speed ascent without supplementary oxygen while Kenton Cool, Rupert Jones-Warner and Ralf Dujmovits are planning to set other new records on Everest. German climbers David Göttler and Daniel Bartschalong along with the Canadian Raphael Slawinski are attempting a new route on the mountain. Source http://www.dw.de
It was reported on the 7th April that 15 patients including 11 foreigners were airlifted from EBC back to Kathmandu suffering from altitude symptoms while more than 150 were being treated by the Himalayan Rescue Association health clinics at Base Camp and at Pheriche. The weather is not seasonal with snow still falling in Base Camp and on the mountain. The Everest media hype has already started; check-out the BBC World Service, plus at least 3 international TV stations are based in EBC.
I guess we’ll only know the full story after it’s happened.

Zanskar
I know it’s not Nepal but I had mentioned in our previous newsletter that we were going .. and we did!
Zanskar is a remote area of NW India and in winter it’s pretty cold, -30°C, cold enough to freeze even the fastest flowing rivers, and the Zanskar River is one such river. Traditionally the locals used this frozen river as the main trading route to get their produce, butter, to Leh when all other options were closed during the winter months. Now the ‘Frozen River Trek’ has caught the imagination of many people who trek along it ever January and February.
At an altitude of around 3500m it does not pose too great a problem, but, the surrounding hills can reach 4700m thus keeping this river gorge almost totally in the shade during the winter. Camping in sub-zero temperatures is a skill and a skill worth brushing up on before you go!
The course of the river often changes as the ice builds up and sometimes the route takes you along rocky ledges to avoid the water. However, it is worth considering that unlike ‘normal’ trekking this terrain offers little friction, a slip at best could be a bit painful, the ice is rock hard, as a medium option you could get cold and wet, but you certainly don’t want to be going into the river, it does not take too much imagination to realise the potential of that ‘wrong move’.
The essentials; a good sleeping bag, a good layering system (clothes) and the ability to develop the Zanskar Shuffle within the first few days of the trek. Walking in local ‘wellies’, the best footwear for the job, is pleasantly easy, getting them to go in the right direction on the mirror smooth ice is a different matter. Yak Tracks are worth considering if you find maintaining balance difficult while skating. A good combination of activities, if you have limited time, is to complete a shorter 7 day Zanskar River trek and then to do a short, higher altitude trek where you see more of the local life-style. These treks can be completed using ‘home-stay’ self catering style accommodation in the winter.
It’s difficult to get the views into perspective. Having spent so long in Nepal, all the Zanskar mountains, under their winter blankets of snow, appear to be much higher than the actually are.
A great time was had by all and we are definitely going to add this trek to our list for the next winter season. If you are interested then please drop me a line.  

Is Nepal waking up to the resentment felt over corruption?
On April 2nd it was reported that the Commission for Investigation of Abuse of Authority was taking 52 people to court on corruption charges amounting to 790million NRs. (approx 7,900,000 US$) The list includes the Government Secretaries for the Forestry Commission and for the Law Commission and the suspended head of the Nepal Tourism Board. 

Anniversary Time
All of Nepal’s 8000m peaks were climbed between 1950 and 1960, Annapurna 1950, Everest 1953, Cho Oyu 1954, Kangchenjunga and Makalu 1955, Lhotse and Manaslu 1956 and Dhaulagiri 1960 so 2015 is the 60th Anniversary of the first ascent of both Kangchenjunga and Makalu. Each mountain tended to get known by the nationality of the first ascent expedition, for example Annapurna was climbed by Maurice Hertzog and Louis Lachenal thus it’s ‘French’, the expedition to Everest was British, however, Ed Hillary came from New Zealand while Tenzing Sherpa from Nepal. 

Kangchenjung is the only 8000m peak to have a British first ascent, the climbers, George Band and Joe Brown. The interesting point is that Kanchenjunga is more ‘British’ than you would think.


The old hill of Darjeeling was granted to the British in 1835 by the Raja of Sikkim, this was ultimately used as the stepping off point for many of the early expeditions to the Kangchenjunga area, a long time before it was considered a mountaineering objective. Up to 1852 it was thought that ‘Kangch’ was the highest mountain in the world.
1945 Darjeeling Himalayan Railway

Kangchenjunga’s place in history is unique as it is one of the very few big mountains to have attracted so much attention outside the realms of actual mountaineering. It could well have been the first big mountain over 8500m to attract visitors, as it is by far the most visible and in the early 1800s the most accessible. By the mid nineteenth century it was possible to make a one-week journey from Calcutta travelling by train to Siliguri and then onward by gharry (a cart) after 1879, the last part of the journey was made possible
travelling on the narrow-gauge ‘toy railway’ right into Darjeeling. From the central square, The Mall, and on a clear day the views of Kangchenjunga, only seventy-two kilometres away, are breath-taking. Situated at the eastern end of the Nepalese Himalayan range, Kangchenjunga, like other mountains in that remote district receive the full force of the monsoon weather drifting up from the Bay of Bengal, when mountain and monsoon meet the developing clouds often obscure the great bulk of mountains.Under certain circumstances the prevailing conditions seem to separate the summits from mother earth giving Kangchenjunga the appearance of an ethereal realm. This romantic concept has placed Kangchenjunga at the very heart of work produced by many of the early travel writers, poets and explorers who so often remarked on its qualities and as being the ‘residence of the Deity’. It became the inspiration for artists, writers and photographers from all genres and from the early twentieth century some representation or reference to Kangchenjunga is held in their archives.
Those involved in the early botanical exploration of the area were the likes of George Bogle (UK) 1774, Thomas Hardwick (UK) 1796, Francis Buchanan (UK) 1807-14, Joseph Hooker (UK) 1848-49 and Douglas Freshfield (UK) 1899. They would travel through India by train then after 1879 by the ‘toy train’ up to Darjeeling, all British built or at least British designed railway technology.
In 1951 a small expedition led by Gilmour Lewis and then in 1954 by John Kempe set out in an attempt to explore the upper Yalung Glacier with the aim of finding a route that ‘might go’ in readiness for the expedition due to leave England in 1955. They did indeed find a likely line and this was successfully climbed in 1955, it was the line that both Sir Douglas Freshfield and Aleister Crowley (UK) had identified many years previously, a broad white mantle of snow that lays across the front face of Kangchenjunga at around 7500m.
On the basis of the favourable reports submitted by Lewis and Kempe to Sir John Hunt both the Alpine Club and the Royal Geographical Society decided sponsored the 1955 British Kangchenjunga Expedition.  Permission was first required from the Sikkim so in 1955, the expedition leader, Charles Evans, made a special journey to discuss the situation with the Dewan (Sikkim’s equivalent to the Prime Minister) representing the Sikkim Durbar. An Agreement was established that permitted the British expedition to attempt the mountain providing that any summit bid would stop short of the actual summit. Should a boot be placed on the very pinnacle of Kangchenjunga it would be viewed as an act of deliberate desecration. The observance of this Agreement was respected by all subsequent mountaineers until relatively recently. The British nine-man expedition left Darjeeling on the 14th March 1955 and made their way into the Yalung Glacier. After many weeks of toil, some bad weather and difficult terrain George Band and Joe Brown reached the summit on the 25th May, closely followed by Norman Hardie and Tony Streather on the 26th May for the second ascent.
George Band commented that on his expeditions they never allowed Nepali high altitude workers to move through the difficult terrain without a member of the climbing team escorting them up and back down again.

What a different scenario to the commercial Everest expeditions of today.

Makalu, however, is a completely different story. Tucked out the way in a remote corner of Nepal Makalu seemed to escape the close scrutiny of the mountaineers and explorers of the day. In 1954 William Siri led an American team into the Makalu Barun National Park, not only was this the first expedition to Makalu but it was the first American expedition to the Himalaya. Their choice of route had many objective dangers and the expedition had to be abandoned at 7100m.
It is a reflection of the times that Terray, in his book ‘Conquistadors of the Useless’ states that, while considering future mountaineering objectives, ‘two possibilities remained, either the fourth highest mountain in the world, Lhotse, or the fifth, Makalu. The first, Lhotse, is no more than a southern outlier of Everest, and three-quarters of the route had already been done [by the Swiss and British]. The element of exploration would therefore largely be lacking. Makalu, by contrast, was a magnificent isolated peak in the heart of a wild region.’ What a contrast to the thinking behind the expeditions of today and the commercial situation on Everest, little sense of exploration there.
The French settled for Makalu and requested permission from the Nepalese government for their 1954 expedition, however, this prompted a response to the effect that the American expedition had already been granted a permit for that year. The French, on reflection, felt that the Americans would have little success on their chosen route as it posed several technically difficult sections, and not without considerable danger, they would wait until 1955.
However, in October of 1954, the French sent a reconnaissance expedition to the Makalu area during the course of which  they made the first ascents of the subsidiary summit of Kangchungtse with the leading pair of climbers of  Jean Franco, Lionel Terray, being supported by Gyaltsen Norbu and Pa Norbu, a few days later they climbed Chomo Lonzo this time Jean Couzy accompanied Terry. The French were well prepared in terms of their improved equipment. However, the long approach march presented them with many obstacles at the height of the monsoon and many detours had to be undertaken to enable the safe crossing of swollen rivers. After nearly a month Base Camp was established at the foot of the west face with the intention of following a subsidiary ridge to join with north-north west ridge and then onto Makalu’s north face. After several ‘acclimatisation’ climbs the expedition team quickly established three camps to 21,000ft. Terray, Franco and two sherpas reached the summit of Makalu II. It was then decided to climb Chomo Lonzo so as to get a better view, of the so far unseen, north face of Makalu. With sufficient knowledge of the complete route the expedition returned to France.
In 1955, armed with the modified, tried and tested, equipment and the details of their intended route the expedition made rapid progress and with surprisingly little difficulty reached the summit of Makalu on 15th May with Terray and Jean Couzy in the lead team, Franco, G. Magnone and Gyaltsen Norbu summitted the next day, followed by Bouvier, S. Coupe, Leroux and A. Vialatte. The expedition accomplished its objectives so efficiently that it led Terray to write ‘Victory must be bought, the price, suffering and effort, and without the clemency of the weather combined with the progress of technique had sold us this one too cheaply. I had got their not only without having to fight but almost without fatigue. After the expedition Jean Franco prophetically announced that ‘As the Himalaya are yielding up their last eight-thousanders, the Golden Age will only last a few more years. Ascents of lesser known summits by routes of extreme difficulty, however, hazardous will begin.

Funding Nepal
The UK Minister for International Development, Desmond Swayne, visited Nepal in February to discuss the future of UK development support, including how to build on more than 100 million pounds committed by the UK for the financial year 2015/16. Nepal and the UK have a long standing relationship of nearly 200 years. The UK is looking at how to support Nepal in its efforts to graduate from the position of one the least developed country in the world by 2022.
A report submitted by Thomas Bell to the International Development Committee echoes the majority of feelings here in Nepal. There are several interesting issues being raised with regard to foreign aid and the misappropriation of funds. The enquiry into DFID’s programme in Nepal appears later in this Newsletter under the title ‘Politics Again’. However, on Facebook one comment posted by Raj Gyawali seems to echo the sentiment of many Nepalese against aid agencies.
Well done Tom Bell - how can we help in the process? A bit fed up of how AID AGENCIES have:
1. Created a parallel governance system of committees which is leading to the public being complacent about the need of a proper government - hence there is no pressure on the Constituent Assembly to complete the constitution and bring the country on a proper road of progress
2. The waste of ‘development money’ in well meaning but poorly strategised projects - it could have been done so much better - In tourism in particular, TRPAP and GHT are classic examples, as you rightly point out!

Exchange Rate
In Thamel today 144/-NRs to the £1

Finally A tale of Caution
There are good and bad trekking Agents in Kathmandu, there are honest ones and there are ones they will try to make the extra buck out of you. Do your research well, get references from other people who might have been to Nepal, who might they suggest.
A group recently visited Nepal, they obtained the appropriate quote for their first Nepal Experience along with recommendations. However, they then went and booked a hotel on line, organised their trip on line and basically took the advice provided, but, then using that made their own arrangements. Sadly it did not turn out well.
Let the people with experience do the job of organising, just make sure all parties involved understand each other’s expectations and be honest with each other.

Is this what it’s all come down to over the last 62 years?!
If you want to know about misappropriation of finances read on.                                   

Politics Again
Report submitted by Thomas Bell:-
 1.              I have over ten years experience of working in Nepal; as a journalist (for the Daily Telegraph and the Economist), and latterly as a consultant on Nepali politics. I am also the author of a recent book on the social and political history of the capital, entitled Kathmandu (ISBN 9788184005783). This book contains a chapter on the poor performance of international development efforts in Nepal over the past six decades, which has attracted considerable attention among the international community in Nepal since it appeared in September. A relevant excerpt was published in the local media here:

 2.              I believe that the interest my views have attracted partly reflects the very widespread skepticism that exists in this country as to the efficacy and appropriateness of much donor aid. This skepticism is by no means limited to DFID, which may in certain respects be better than some of its counterparts, but neither by any means does it exclude DFID. Such skeptical views are commonplace among the public, and are also frequently expressed in private by the staff of donor agencies, including DFID. I offer the following points in the belief that only by recognising the deep problems in Nepal's development efforts to date can we expect better in future. These points are made partly in response to your committee’s recent hearing with the DFID minister Desmond Swayne.

The record of foreign aid and the significance of corruption in the Nepali system
3.              It is of course true, and has often been remarked upon for decades, that corruption is prevalent in Nepal. However there is a big difference in understanding this as an obstacle to better governance, or as the very raison d’ĂȘtre of government. If one says, “Oh, too many people are hired in the government because they are someone’s cousin” this seems to be something that one can work around. If one understands that the purpose of the state in Nepal is to extract resources for the enrichment of individuals and the sustenance of political and business networks, and therefore for the maintenance of those networks in power, then this leads to rather different conclusions about the efficacy of pouring in development money in search of growth and good governance. Government in Nepal has always been and remains an essentially extractive enterprise. For example, a health ministry with 73% absenteeism among civil servants is not in fact an institution whose purpose is to provide health care, whatever its name. Congratulating one’s self on the strength of one’s contacts in such a ministry, and believing this will soon start paying dividends, is a version of the illusion which has characterised six decades of (for the most part) failed aid delivery.
4.               If I may recommend one fairly short publication which describes this political economy it would be “Impunity and Political Accountability in Nepal” by Aditya Adhikari and Bhaskar Gautam with Surabhi Pudasaini and Bhadra Sharma, published last year by the Asia Foundation here:
http://asiafoundation.org/publications/pdf/1333. This gives an essential description of the context in which aid interventions take place.
 5.              I believe that it is mistaken to think that the government “doesn’t understand” or “needs educating”. In fact they have been receiving similar development messages for years and are quite adept at repeating them to give encouragement to donors. Rather, the government is very successful at what it does, which is advancing the interests of its members, their clients and core constituencies at the expense of the wider population. This is shown by the fact that (despite bitter competition at the top) many senior politicians and officials have very long running and secure careers. In short, the current model is ‘sustainable’ - not withstanding failed service delivery and enduring poverty. One of the things that helps to make it sustainable is that it is in effect underwritten by the indulgence and enduring optimism of the donor community.
6.              Take the example of tourism, which your committee has discussed. It is not because officials “don’t understand” its potential usefulness to others that the national airline is in chaos, or that the airport is only semi-functional, with 4 hour waits to retrieve luggage and stray dogs on the runway causing flights to abort landings. Rather, those in power have served their short-term needs by bleeding the national airline dry and treating the airport as a cash cow for the sale of offices and customs fraud. (By the way, DFID’s Great Himalayan Trail project which you discussed - worth around £2m so far, I believe, and implemented by SNV - was said by those who worked on it to be such a waste of money, with so little to show, that even they were shocked.)
 7.              You saw the lamentable standard of the local health posts, which DFID is supporting, on your visit. Despite aid, this has been the case for decades. Improvements in health statistics almost certainly come about primarily through urbanisation and people’s improved access to private services thanks to remittances. Similarly, one might question whether the recent very large hydro-power investments come about primarily through DFID’s support to the Investment Board, as they are understandably keen to proclaim, or largely thanks to circumstances relating to India and its relations with Nepal. I think one must be rather skeptical of the way in which credit is claimed for certain outcomes. In my experience, those familiar with almost any project or programme in the Nepali development sector commonly say (at least in private) that it falls far short of the claims which are made for it by its sponsors or implementing agencies. People sincerely praising a project of which they have knowledge - ‘off the record’ as it were - are relatively rare to meet. This includes many of DFID’s activities.
8.              I think Nepal’s experience of development aid is now too long, and too consistently disappointing, for it to reasonable to readily believe that while most of what happened in the past didn’t work well enough, the latest iteration of these schemes is somehow markedly different. Little of what is being done now is without precedent in the past, and there is little reason to think that more foreign aid will bring the change that is sought. The hopes of international policy makers are repeatedly reposed in renewed recognition of the ‘problem of corruption’, for example, and mechanisms such as user groups and local committees - which are not new and have repeatedly failed to bring accountability, due to the nature of power in these communities. On the contrary, such local committees are often packed by political appointees for the purpose of capturing resources. Nepal is not poor and badly governed for want of foreign aid money, technical advice or government ‘capacity building’.
9.              Nepal is poor because of public corruption of the sorts described above, and the ‘mafia’-like behaviour of politically backed cartels and other similarly exploitative, value destroying and anti-competitive practices in the private sector. For example, transport cartels raise costs and also pollute Kathmandu with filthy exhausts, despite the law, with impunity. Cartels and ‘syndicates’ also exist in other key sectors including drinking water supply, food wholesale and energy supply. Of particular long term concern are the widely reported and politically backed ‘mafias’ corrupting the education system, for example through the licensing of sub-standard medical schools. Another particularly egregious area in which such practices exist is in the ‘manpower industry’ - sending migrant labourers abroad. Often this is extremely exploitative, but enjoys powerful political backing. Given that the migrants’ remittances are the backbone of the economy (contributing around 25pc of GDP), and also the principal reason for recent gains in poverty reduction in Nepal, supporting reform of this sector to protect workers and help them earn more, while investing their earnings to better long term benefit, should be a big issue for DFID.
 Rather than focusing on ‘fragility’, it should be recognized that Nepal is trapped in a ‘sub-optimal equilibrium’
10.              At the heart of these issues - in so far as they relate to the development sector - are two sets of incentives, which go against what I believe is generally taken to be the desirable logic of policy making.
11.              On the one hand, development agencies wish to increase their budgets (DFID’s recently doubled in Nepal, and others’ are also rising). Thus, at a time of weak governance during the current political ‘transition’, aid has significantly increased even as the capacity to spend it effectively does not exist. It is well known that the government has long failed to spend its full development budget every year. (Only around three quarters of the development budget [capital as opposed to recurrent expenditure] has been spent in recent years, up from about half a decade ago.) Much government spending is routinely deferred to the very end of the financial year, in what is widely understood to be a strategy to escape scrutiny. Nevertheless, development aid continues to increase. The development agencies themselves also typically have large sums remaining at the end of each year (DFID being a case in point), which they then scramble to spend before next year’s (increased) budget arrives. Their need is to disburse their funds, and they are therefore widely recognised in Nepal to be reluctant to withdraw from corrupt or underperforming projects and programmes.
 12.              I think the ICAI is absolutely right to say that DFID does not appear to have a fully developed strategy for dealing with the fact of corruption as it exists, and that it is reluctant to take action in cases where it comes to light, partly so as not to upset its relationships (and therefore, presumably, its ability to disburse more money). For example, DFID refused to acknowledge corruption in the use of local development block grants until I exposed it in the Economist a few years ago (http://www.economist.com/blogs/banyan/2011/05/aid-and-corruption-nepal).  However the ICAI was quite wrong to suggest that petty bribery is the main way in which corruption harms to poor. As I hope is clear from what I have written, it is grand corruption which robs the poor of services and livelihoods, and indeed of hope for their future.
13.              Meanwhile, the government knows very well that development money will continue to flow regardless of the enduring failure to deliver results. The period of increased aid revenues during the peace process has coincided with a large increase in perceived corruption, as measured by Transparency International. Enduring corruption and the failure to deliver domestic growth undermines democracy, ensures continuing under-development, forces workers to go abroad and contributes to episodic political crises by excluding the majority from access to power and resources. However, remittances and the reliable supply of aid help to make this stagnation sustainable and, beneath the crises, in a sense relatively stable. Nepal is trapped in this situation, and aid programmes which don’t deliver genuine reform contribute to sustaining it. ‘Genuine reform’ would mean undermining business cartels and syndicates, for example, and tackling the politically backed ‘mafias’ which seek to profit though the corruption of the (private as well as public) health and education systems.
 14.              It’s important to note that the strong expectation that aid will continue at current levels means that donors have relatively little ability to influence the government to do things that they may not wish to do. It frequently appears that the government will play along with the donors’ agenda provided that it comes at no real cost to the status-quo. When the status-quo is threatened by a perceived ‘international agenda’ (eg for the ‘social inclusion’ of ‘marginalised groups’) the government reacts strongly against that, as DFID experienced in 2012. The agencies (DFID being a case in point) then retreat, so as not to upset their relationships.
15.              I think that funding NGOs as an alternative to working through the government is in fact no alternative. Many NGOs are also corrupt. Clearly the country needs a better government, which should be supported. In practice this may be something of a moot point, however, since many NGOs are controlled by the same or similar people and sections of society as hold sway in politics and public administration.
 Supporting change
16.              To help Nepal escape this trap development agencies including DFID need to change the incentives created by the aid economy. It should be recognised that an underperforming programme or project has not merely failed to deliver its stated objective, it has also paid for something else with that money (usually the empowerment and enrichment of corrupt people, deeper inequality, weakened public accountability, loss of faith in the system, etc). Rather than simply throwing money at the wall in the hope that some of it will stick, less aid might actually be more beneficial - if a much higher proportion of it constituted really good programmes and projects. In areas that are underperforming I believe DFID and others should be much more willing to withdraw, and to say clearly and publicly why they are doing so. Evidence of corruption should be given to the police, and that should be publicised (this never happens now). Where appropriate, people should be fired (again, this is startlingly rare). Above all, there should be strong demands to deliver measurable progress in uprooting the cartels, ‘syndicates’ and ‘mafias’ which seek to profit by further undermining the dysfunctional health and education sectors, which exploit migrant workers, increase transport costs, and so on.
 17.              In conclusion, the problem is political: there should be strong, public, transparent, discomforting pressure for reform. This would go against powerful and deeply entrenched political interests, but if DFID is not attracting opposition from such quarters it probably isn’t supporting real change. This implies a fundamentally different manner of working for agencies such as DFID, which measure their success by the scale of their disbursements and attempt to avoid riling the government. Ever more free money - with the usual bromides about how it will work this time - is the very opposite of what Nepal needs. The willingness to spend less money, if properly explained, and especially if coordinated with other donors, could actually increase DFID’s political leverage (and public credibility) in Nepal. Public credibility would especially be increased if action were taken to clean up the very well funded but underperforming wider development industry - a powerful vested interest in itself - where it is widely perceived that corruption is rife and incomes are not justified by performance (see paragraphs 7 and 8 above). Implementing such as approach would require courage and determination, and a stronger ability to analyse and manage the country’s social and political situation than is currently in evidence.
The scandal in public education
Him and Her in Zanskar
 18.              On the matter of areas in which multilateral organisations supported by DFID are working but where things are not going well, I would point especially to education (funded by the EU and others). The rate of failure here - only 13% of government school students who enrolled ten years earlier left school with a basic qualification (the School Leaving Certificate) in 2014 - is an unconscionable scandal condemning a generation of children to a life of futility. There is profound corruption in the public education sector, as exposed on a weekly basis in the newspapers and well known to all for many years. Donors must be seen to publicly and transparently take responsibility and take action where they are mired in such a mess. If their sense of embarrassment and bureaucratic expediency is given sway, how can it be expected that the Government of Nepal will behave differently?
I hope you find some interest in these ideas. There are of course many better qualified than me to advance this kind of analysis, or other similar analyses. I believe such views are quite common now. For example, only today this article appeared in The Kathmandu Post: http://www.ekantipur.com/2015/03/18/opinion/democracy-in-crisis/402953.html
This edition of our Newsletter is slightly heavier than normal. However, I think this report is worthy of inclusion in its entirety so that readers are fully informed of the underlying situation within Nepal with regard to foreign aid and its usefulness.
I hope that spring turns into summer with all the best of what those seasons bring.. for our Australian friends I guess that is autumn in to winter!
The very best to all





April 2015

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