--By Sushila Budhathoki
The example of Tilganga Institute of Ophthalmology is enough to explain an enduring partnership between Nepal and Australia. Supported by the Fred Hollows Foundation and AusAID, both from Australia, the institute is earning millions of rupees from the sale of lenses in and out of the country gaining international recognition to Nepal. The institute that has been effectively working on alleviating avoidable blindness is serving more than 350,000 Nepalis every year.
Nepal and Australia are celebrating 53 years of diplomatic relationship in 2013. The diplomatic relation between Nepal and Australia was established on February 15, 1960. In 1986, Australia upgraded its embassy to the Ambassadorial level in Kathmandu which was at the level of Chargé d’ Affaires previously. Nepal established its Embassy in Canberra, the Capital of Australia in March 2007 which was formally inaugurated after 6 months, in the same year.
Australia, one of the richest countries in the Asia Pacific has been enjoying economic expansion over the decades. Australia is the 13th biggest economy in the world according to World Bank’s latest ranking of top 40 countries by GDP. The Economy Watch has forecasted Australia’s economy to grow even quicker from 2011 to 2015. It has expected Australia’s GDP to be US $1.122 trillion in PPP terms by the end of 2015.
Australia was also ranked third in the 2013 Economic Freedom Index by the Heritage Foundation out of 41 countries in the Asia– Pacific region scoring 82.6 in economic freedom. According to the Foundation, the factors that contributed to achieve Australia such enviable score were its independent and impartial judicial system, limited government, efficient regulatory regime and open markets among others. Australia’s secured property rights and reliable enforcement of contracts is highly appreciated worldwide. Labour and Liberal governments have deregulated financial and labour markets and reduced trade barriers since the early 1980s. Julia Gillard, Australia’s current Prime Minster is also the leader of Labour Party.
Australia has been one of the lucrative destinations for students all over the world. A number of Australian universities offering courses at every level in every imaginable field have been the main reason of this trend. According to Department of Foreign Affairs and Trade, Australia, a total of 426,748 (2011) international students were pursuing studies in various Australian Universities. The number of Nepali students in these institutions is also remarkable. Since 2007- 2009, after the liberalized visa regulations, the number of students going Australia saw a continuous growth. Around 900- 1200 Nepali students go to Australia every year.
Development Assistance
Though Australia included Nepal in its development cooperation programme in 1979, the assistance actually started after the establishment of diplomatic relation in 1960. Health, education, forestry, manpower training, rural development, volunteer service, strengthening governance and peace-building have been the Australian government’s cooperation priority areas in Nepal. Nepal signed MoU on Development Cooperation with the government of Australia in 2003.
Australia is assisting Nepal directly and through multilateral mechanism. According to a report by Government of Nepal (March 2012), Australia was the tenth big donor to Nepal in 2010-11. The potential areas for cooperation include trade, investment and tourism.
According to the Australian Government, the objective of Australia’s aid to Nepal is to improve access to key services delivered by an increasingly effective state. Australia provided US $33.5 million in 2012-13 in total development assistance to Nepal, focusing on health, education, water, sanitation and hygiene, strengthening governance and creating jobs. The estimated budget for 2013/14 is US $ 38 million among which the priority programmes for spending are - saving lives (41%), promoting opportunities for all (33%), sustainable economic development (15%), effective governance (9%), humanitarian and disaster response (2%) and general development support (1%).
In 2013, medical equipments worth Rs 994,000 were handed over to Tamakoshi Hospital through the Embassy’s Direct Aid Program 2012-13 to improve the capacity of the hospital’s laboratory. The AusAID has also supported the establishment of the Electoral Education and Information Centre at the Election Commission of Nepal. Australia will continuously work with other donors to help Nepal strengthen government systems, reduce corruption and improve the provision of health, education and infrastructure as mentioned in its report published in June 2012.
Supported by AusAID, the MEDEP (Micro- Enterprise Development Program) in 38 districts has helped create 56,698 micro entrepreneurs. Similarly, Australia’s assistance to the forest sector in Nepal affected positively to the livelihoods of rural people that focused on trial plantings of Australian tree species. The Australian Himalayan Foundation, an Australian non-government organization raises funds to support education and health programmes in Nepal.
Blood-bank Project, T.B. Control Project, Nepal-Australia Forestry Project Phase I, II, III, IV and V, Nepal Vitamin “A” Programme Year I and II are some of the popular Australian projects in Nepal. Some of the running projects include Australian Development Scholarship, Agricultural Research (ACIAR) and Management of Footrot in Small Ruminants (ACIAR) among various others. It is also running a programme on Micro-Enterprise Development through Ministry of Industry, Nepal and UNDP.
Trade, Tourism and Investment
The merchandise trade between Nepal and Australia is not that significant though the trade relation between the countries has a long history. Nepal’s principal export to Australia consists of essential oils, perfumery, cosmetic or toilet preparations, paper and paperboard, carpets and other textile floor coverings, articles of apparel and clothing accessories, works of art, collectors` pieces and antiques.
Similarly, Nepal’s imports from Australia mainly include edible vegetables, oil seeds and oleaginous fruits, miscellaneous grains, seeds and fruit; industrial or medicinal plants, straw and fodder, mineral fuels, mineral, natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, refined petroleum and vegetables.
Australians enjoy travelling to Nepal as shown by the data of Nepal Tourism Board. Australians shared 5.3 per cent share in total tourist’s arrival in Nepal in 2012. During January-May, 8,542 Australians travelled to Nepal. To spread the benefits of tourism more widely, an Australian company, World Expeditions, one of the world’s leading adventure travel companies has been offering trekking holidays in Nepal from east to west with information on climate, trekking routes and other information about Nepal.
According to MoFA, Australia has invested in 34 different industries, service sectors and other fields amounting to Rs 395.22 million creating 974 job opportunities. Australian investors are also interested in hydel projects and on a modest scale aviation industry in Nepal. Involvement of Australian companies in development project works, civil aviation and telecommunication is considered important to increase commercial links between the countries.
‘Business is the Life Blood of Economic Development’
HE Glenn White is Australian Ambassador to Nepal. In an interview with Siromani Dhungana of New Business Age, Ambassador White discusses the bilateral relationship, assistance priorities and business prospect between two countries. Excerpt: How do you evaluate the relationship bond between Nepal and Australia in 53 years of diplomatic relationship? Nepal and Australia share a very warm relationship. Australia has recognized the opportunities and the partnership availability in south Asian countries and I think the relationship is very cordial and warm. In 2003, Nepal and Australia concluded a Memorandum of Understanding (MoU) on Development Cooperation. Can you please provide us the major impacts of the MoU? The MoU provides an overall agreement for how we cooperate on Development Cooperation. Our assistance has significantly increased, more than tripling since 2008 and is currently at $38 million per annum. Australia is in the final steps of developing a Country Strategy for Nepal. We assess the impacts of our program annually through AusAID’s Annual Program Performance Reports. We are most proud to be able to support Nepal’s Governence systems in the strong gains that have been made over the last decade in the health and education sectors, which have seen: i) net enrolment rates and gender parity rates in basic education exceed Millennium Development Goal targets, ii) reduction in maternal and infant mortality rates also achieve MDG targets and has seen Nepal receive international award. Since 1998, we have helped lift over 60,000 Nepalis out of poverty through our provision of micro-enterprise development skills to start their own businesses and create local jobs. Out of total creation, 68 per cent jobs were awarded to women. In 2012, about 28,000 people have received clean water and 21,000 people have access to sanitation facilities due to AusAID’s support. Since 2003, Australia has constructed Nepal’s Electoral Education Information Center and Nepal’s Emergency Operations Center. In 2006, Australia completed it longest running development project anywhere in the world – Australia’s Community Forestry Project which improved forest use and livelihoods. Can you please highlight Australia’s present assistance priorities for Nepal? Australia’s objectives are: to strengthen Government of Nepal service delivery, particularly to poor and traditionally marginalised group and to engage with partners, including the Government of Nepal, to support governance reforms. The major sectors of assistance are: health and education, livelihoods and governance. We also focus on public financial management. A key part of our assistance is also the Australia Awards – post graduate scholarships to study in Australia and our volunteers. How do you see the prospect of export-import business between Nepal and Australia? The trade rate between Nepal and Australia is quite low and we are interested in continuing trade with Nepal. Business is the life blood of economic development and if Nepal can develop its economy it will outgrow the need for aid. Are there possibilities where both countries can tie up for the development of the tourism sector? Nepal is a very scenic place to attract the tourist to come to. It’s been a place that people often dream to visit again and again. Nepal needs to improve safety standards, security and health facilities to provide comfortable and secured environment to the tourists. It seems Australia has been one of the main destinations for Nepali students. How do you see the current trends? We welcome the trend. Australian universities have students from countries like Nepal. These students are doing very useful research projects in Australia which is very beneficial to both Australia and Nepal. There are already a large number of alumni in Nepal and they are growing two forms of networks: university, institution network and business network. Their relation can be used in the future to develop trade and business with Australia. |
