Joint Donor Statement for Nepal Development Forum 2004


                          Kathmandu, 4 May 2004


On 19 November 2003, in the Donor Statement accompanying the WB Board
discussion on the CAS/PRSC, we put on record our support for Nepal's
development strategy set out in the PRSP. We wish to re-emphasise the
importance we attach to the implementation of Government's poverty
reduction strategy. This is essential for external development assistance
programmes to fully benefit poor people and excluded groups in Nepal.


At the same time, we made it clear that a full-fledged, long-term
development partnership with Nepal was contingent on the restoration of
democracy and the peace process, and on immediate steps being taken to
improve the human rights situation. With this statement we wish reiterate
that failure to address these issues will severely undermine the prospects
for our development partnership to further develop and fully materialise.
  1.      For us to integrate our development assistance and align our
    support with the PRSP, THE DEMOCRATIC PROCESS needs to be reactivated
    beginning with a representative government and a Prime Minister
    enjoying the confidence of the political parties and the King.
    Representative democratic institutions and people's participation at
    central and local level are key elements of the development
    partnership
  2.      The on-going ARMED CONFLICT stands in the way of genuine and
    sustainable economic and social development. The conflict has created
    an atmosphere of fear and insecurity for the vast majority of Nepalese
    people. Resolution of the grievances that have given rise to the
    conflict can only be attained once the violence has ended. An
    immediate ceasefire, accompanied by a Code of Conduct and effective
    independent monitoring is required. This should be followed by full
    negotiations without preconditions or talks about talks should seek to
    establish the confidence necessary for such negotiations to proceed
    and the good intent of both sides. In our view, negotiations should
    take place before elections. We encourage all parties to explore every
    possibility and modality in this respect ? including the UN Secretary
    General's offer of support.
  3.      Promotion and protection of HUMAN RIGHTS is imperative. Human
    rights are the pillar on which inclusive, open and democratic
    societies are built. In a climate of impunity without enforced respect
    for human rights neither freedom nor development can flourish. They
    are thus the foundation for the development partnership in Nepal. We
    welcome the Government's Human Rights Commitment of 26 March 2004 and
    the Chairman's Statement of 21 April 2004 in Geneva and urge their
    rapid implementation. We strongly appeal to the CPN-Maoists to
    renounce violence and call upon them to commit to respect the human
    rights of all people. We also call on both parties to allow unhindered
    monitoring with international support as an early confidence building
    measure.


We support Nepal's development efforts and wish to continue to do so.
However for these efforts to fully benefit the Nepalese people and for us
to continue and reaffirm our commitment, there is an urgent need for the
political powers in Nepal to take immediate steps to resolve the untenable
political situation.


     Canada, Denmark, European Commission, Finland, France, Germany,


         the Netherlands, Norway, Switzerland and United Kingdom