the impacts of corruption on the social and environmental sustainability in nepal

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The Study on THE IMPACTS OF CORRUPTION ON THE SOCIAL AND ENVIRONMENTAL SUSTAINABILITY IN NEPAL Study Conducted by: Nepal Labour Foundation (NLF) Kathmandu, Nepal Submitted to CNV International - Fairfood International Netherlands

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Page 1: The impacts of corruption on the social and environmental sustainability in nepal

The Study on THE IMPACTS OF CORRUPTION ON THE

SOCIAL AND ENVIRONMENTAL SUSTAINABILITY IN NEPAL

Study Conducted by:Nepal Labour Foundation (NLF)

Kathmandu, Nepal

Submitted to CNV International - Fairfood International

Netherlands

January, 2011

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ACKNOWLEDGEMENT

This report on the Impacts of Corruption on the Social and Environmental sustainability in

Nepal would not have been possible without the support and hard work of institutions and many

individuals.

Nepal Labour Foundation (NLF) would like to extend its sincere thanks to CNV Internationaal

and Fairfood International for entrusting this research study to NLF. Likewise, NLF extends its

heartfelt thanks to Tea Estates and their workers (that were taken as sample) for providing their

valuable time and participating in the process of study. NLF is thankful to all key informants and

institutions that provided valuable information for this study.

The entire research team deserves much appreciation for their dedication and hard work to

accomplish this study. NLF thanks Mr. Keshav Prasad Bhattarai for leading the research, Mr.

Ram Narayan Kurmi and Ms. Leela Dahal for their excellent field work including support

provided for data collection, tabulation and logistic during the field work.

Khila Nath DahalPresident, NLFKathmandu, Nepal

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Acknowledgements

I would like to express my heartfelt thanks to The National Federation of Christian Trade

Unions in the Netherlands (CNV) and Fair food International for assigning Nepal Labour

Foundation this study with financial and technical support.

Similarly I would like to express my sincere thanks to all the facilities and persons (Annexure 2)

who with all their best possible efforts had supported us in filling the questionnaires and

providing the information. Mr. Ram Narayan Kurmi and Ms. Leela Dahal, did the hard work

showing much zeal and enthusiasm by visiting so many districts and facilities in a given time

frame and collecting the data and other needed information.

The enriched knowledge and experiences of Mr. Uddhav Paudel, Dr. Kusum Shakya and Mr.

Rabindra Bhattarai, the NLF associated researchers has been a continuous source of courage

and strength for me in conducting this study.

Mr. Anchan Bhattarai, did the most tremendous task of tabulating the collected data, preparing

charts and analyzing and interpreting the information. Without his skill and labor it was not

possible to prepare this study within a desired time frame.

Last but not least, I would like to express my larger part of thanks to Mr. Khila Nath Dahal, the

President and Dr. Khem Raj Bhetuwal, General Secretary of Nepal Labour Foundation and its

executive body for assigning me this job. It has given me new insights and experiences in

dealing with such a critical study of national importance.

Keshav Prasad BhattaraiTeam Leader

The Impacts of Corruption on the Social and Environmental

Sustainability in Nepal

Page 4: The impacts of corruption on the social and environmental sustainability in nepal

Contents

Executive Summary

1.1 Background of the Study

1.2. Corruption in Nepal and Global Experiences

1.3. Corruption and Environment Sustainability

1.4. Agriculture, the World in 2050 and Environmental Sustainability

1.5. High Value Agricultural Products and Export Situation

2. Methodology of the Study

2.1. Objectives of the Study

2.2. Study design and Research Methodology

2.3. Tools of Data Collection

2.4. Research Sites and Data Analysis

2.5. Limitation of Study

3. Data Analysis

3.01. Involvements in areas of agro products

3.02. Level of Channel of Production Respondent had involved

3.03. The attractive factors for selecting the business

3.04. The most distractive factors in the business

3.05. Corrupt Practices Respondent has faced

3.06. People responsible in the corrupt practices

3.07. Effects of corruption upon people

3.08. Good governance and corruption

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3.09. Provisions required holding the person involved in corruption

3.10. Products mainly exported

3.11. Corruption during Export

3.12. People engaged in corrupt practice

3.13. Mode of Transportation

3.14. Use natural resources in any channel of agro products

3.15. Measures taken to fulfill social or environmental commitment

4.1 Findings of the Study and Recommendations

4. 2.Conclusion

References

Annexes

1. Questionnaires developed for the Cases of Corruption in agricultural export of Nepal

2. Companies and facilities visited for data collection and questionnaires administration

3. Persons involved in production, processing, and exporting tea, coffee, ginger and essential

oils, consulted by the researcher to fill the questionnaires and interviewed informally to verify

data.

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Executive Summary

This study investigates the impact of corruption on the social and environmental sustainability in

Nepal its nature and practices in Nepalese export trade and measures to control corruption so as

to insure social and environmental sustainability.

A country suffering a long course of political instability, violence and with weak institutions

cannot escape from the curse of corruption. The experiences around the world have also

confirmed this. But how has it affected the social and environmental sustainability was our

concern and this was the concern of present study.

The questionnaires were developed as per the assignment of Fairfood International Research

Department. The study was designed by the type of information needed, and availability of

resources.

As per the subject of the inquiry, questionnaire and informal interviews were adopted as primary

tools of data.

The respondents covering almost all geographical regions and involved in various level of

business of Tea, Coffee and Essentials Oil including Ginger, were randomly selected. To verify

the data collected through questionnaires with people involved in this sector and interviewed

informally.

Despite of various limitations information collected from the respondents have been classified

and analyzed by using simple statistical tools like mean, mode, bar diagram, pie chart for

illustrating relationship between the variables.

The results suggest a significant relationship between corruption, export fluctuations and

environmental sustainability. It, therefore, paves way for further research by involving the

government, businessmen, academic institutions, trade unions as the stake holders. Nepalese

products should strictly follow the quality standards on each area of production, processing,

packaging, labeling and quality testing in order to prove competitiveness in the global market.

Export oriented special production zone can be developed with proper security, uninterrupted

power supply and enough financial services, supported by long-term policy and programmes for

export promotion.

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Support of international community can be vital towards the formation of institutional

mechanism and strengthen civil society on their movement against corruption Parliament, the

most important political actor can curb corruption by ensuring accountability and transparency in

the decisions of public bodies related with business. Parliamentary oversights through anti-

corruption agencies and empowerment of civil society and media have a most critical role in this

regard to play

A strong and independent judiciary accounts much in each and every national commitment

against corruption. Nothing can grow and be sustainable without strong public support. This

study has indicated sufficiently that corruption is not only the result of weak law and order

situation, but the product of values cherished by individual and society.

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THE IMPACTS OF CORRUPTION ON THE SOCIAL AND ENVIRONMENTAL SUSTAINABILITY IN NEPAL

Chapter OneIntroduction

1.1 Background of the Study

Nepal mainly is a sustenance agricultural country. Over 75 percent of its population depends

upon agriculture. 77 percent of its total land area is covered with hills and mountains and the rest

is the plain. About 21 percent land area is under cultivation. The forest, shrub land, grassland and

water cover about 54 percent of land mass. According to the Economic Survey made by the

Government of Nepal on the year 2009/10 the preliminary contribution of agriculture and forest

sector is 33.0 percent of the GDP1. As a share of total agro-crops, food crops comprises about 46

percent, cash crops 31 and the others comprise 23 percent.

To feed the over growing populations and earn their living Nepali farmers have few alternatives

than to farm in hilly slopes and fragmented plots of land under difficult climatic conditions. To

make the situation worse mass level migration from hills and mountains to valleys and plains

have spoilt the fertile land and worsened the situation further. This gradually has caused severe

food shortage in Nepal. This has changed this country from food exporter to net food importer.

This has put continuous pressure upon the forestland to a vulnerable situation. Within the last

three decades, it is estimated that half of its forest of Nepal has been destroyed due mainly to

political instability. This has laid tremendous pressures on the fragile ecosystems of the

mountains followed by mass deforestation leading to landslides and floods threatening the lives

and occupation of millions of people living in both Nepal and India.

Population pressure, land fragmentation, lack of irrigation and monsoon based farming, and

inadequate financial and technical support are attributed to low but fluctuating yield in farming.

Huge increase in population and mass unemployment have not only put unbearable pressure

upon land, agriculture and forest but also created ethnic divisions among people leading to

1 Economic Survey (2009/10), Ministry of Finance the Government of Nepal

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political, social and economic instability. To feed its growing population, Nepal has to use all its

land resources and much less is available for high value crops.

Nepal belongs to the Pale arctic and Indo-Malayan bio-geographical realms. It is located at the

convergence of the eastern and western Himalayas. As a result of both this location, and the great

and dramatic altitudinal and climatic variation found within its borders, Nepal is home to a

tremendous diversity of ecosystems, especially for a country of its size. While the exact number

of ecosystems varies from source to source, the government of Nepal has recognized 118

ecosystems in Nepal, ranging from tropical monsoon forests to alpine pastures. (1)

This could give Nepal an unmatchable export markets for diverse agro and forest based products.

But it has been left unattended. Further, y Nepal has not been able to make smooth supply of its

limited products into international markets. Nepal’s land-locked location has hindered its export

trade potential. All these factors are attributed for inability in the production of agro and forest

based products as a significant share of Nepal’s export trade.

Absence of product specialization has limited export of agricultural production. Further,

commercialization of agriculture in both India and China has left with very little options for

Nepalese products. To compensate this, Nepal at times has shown trends exporting crude natural

resources e.g. timber, stone, boulders and sand which ultimately have deteriorated the

environment.

1.2. Corruption in Nepal and Global Experiences

 According to the Corruption Perception Index published by Transparency International (TI) on

October 26, 2010 Nepal is one of the highly corrupt countries, 146 th among the 178th surveyed.

The rate of corruption in Nepal has increased in comparison to that of previous year.

While making its report public, the TI has stated the increase in corruption has been a direct

impact of the unstable political situation in the nation. In its 2009 report, Nepal was ranked 143

positions out of 178 countries and back in 2008 it was on 138 positions. 

 TI also observes that political instability, lawlessness, nepotism and lack of accountability have

mainly characterized this situation in Nepal. Unfortunately, corruption has not only dominated

governance at all levels, but also that an anti-corruption agenda has not become a political and

social priority of Nepal. Corruption, as a great socio-political and economic evil of Nepali

society, has been the major obstacles to justice, democracy and overall national development. In

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a 2003 Global Poll, conducted by the World Bank covering 48 countries, corruption is ranked the

fourth critical issue of development after economic growth, poverty reduction and education.(2)

This is still relevant for Nepal

Corruption is said to be a major constraint to the enjoyment of human rights, reduce

discrimination and subjugating the poor and marginalized groups. Their powerlessness to raise

the voice for their cause and inability to pay bribes for the enjoyment of their rights creates

further inequalities and marginalization: a gross violation and betrayal of their human rights.

According to an estimate of World Bank Institute (WBI), worldwide bribery totals at least one

trillion dollar per year. This amount is equivalent to approximately 3 percent of the gross world

product. This is just the volume of the bribes but not the impact, which ultimately goes to a much

higher level.

One of the pioneers of anti-corruption movement, James D. Wolfensohn, former president of the

World Bank (1995-2005) observes that corruption diverts resources from the poor to the rich,

increases the cost of running business, distorts public expenditures and deters foreign investors. (3) His immediate successor, Paul Wolfowitz, in a similar vein, mentions that corruption is a

disease that threatens the hopes of the poor for a better future for themselves and their children (4)

indubitably, corruption in Nepal, especially at the political level, has cruelly violated the ethos

and mores of a democratic system. Buying votes as well as selling favors and opportunities has

been the standard political practices maintained studiously by almost all political parties. Those

who gain access to political power also bag the most wealth, which resultantly, widens the

existing level of inequality to an intolerable level. This, in consequence, has produced

frustrations among the youths and the common people breeding severe instability and even more

corruption during such instability.

The Commission for the Investigation of Abuse of Authority (CIAA) is an authority in Nepal

which can take actions against all officials including the Prime Minister to ordinary public

servants. The CIAA acts to investigate the corruption and penalize the corrupt so as to promote

good governance, build morale of public servants and raise public confidence on the state. Nepal

also has an anti graft body called as National Vigilance Center several and owns several legal

provisions against corruption. As a signatory of the United Nations Convention against

Corruption (UNCAC), Nepal has recently enacted several acts to qualify with the legislative pre-

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requisites of UNCAC. However, despite of these institutional arrangements, Nepal is at the top

of the index of corrupt countries.

One of the renowned political scientists of present time, Samuel P. Huntington mentions that

corruption involved with politics in many societies has become the grand road to wealth-

exchanging political action with immense economic wealth an exchange of political actions.

The amount of wealth that politics help to amass could not be possible with business. (5) He has

also explained that societies having high capacity for corruption also have high capacity for

violence. (6)

And, violence, as we have experienced in our own context, is translated into terrorism in no

time, this or that way.

This, unquestionably, is fairly understood that both corruption and violence serve the same

goal; putting pressures upon the government and system to satisfy their demands in an

illegitimate way. This further weakens the state, its institutions and energizes violence and

terrorism in return. The most detestable thing we have come across these days is that politics

has lost its whole set of essence, ethos and mores. Politics has become a major industry or

business for people in power and again the wealth generated by power would bring more power

and correspondingly more wealth in a cyclic way. Understandably, investment in no industry or

business can give as much wealth in a short time than the investment in politics.

Therefore it is political stability, good policy; a strong and committed leadership can bring

exceptional achievement for any country. A society is judged by its treatment to the weakest

and most vulnerable members. Corruption, violence and environmental destruction live and

work together.

David Nussabaum, the Chief Executive of Transparency International (TI) has rightly remarked

that the corruption has a long history but research and analysis about its cause and effects has

erupted over recent years .(7).

In human history here are innumerable examples of how corruption has played a critical role in

making a state go weaker and weaker and crumble at last on social, political and environmental

grounds. It has long played the organized societies from ancient China and India to modern day

European and American governments. (8) In many parts of the world corruption has made its

successful journey unchallenged, caused development suffer worst, investment discouraged

piteously and poverty go unbounded. Paulo Mauro after the study he made in more than 100

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countries concluded that if a given country is to improve its corruption score by 2.38 points on a

10 point scale, its per capita gross domestic product (GDP) growth would raise by more than half

a percentage point. (9). Similarly, The Global Organization of Parliamentarians against

Corruption (GOPAC) has identified corruption as the greatest threat to the democratic ideal of

self government.

1.3. Corruption and Environment Sustainability

A society sustains if it has the ability and capacity not only to meet the requirements of present

generation but more to the requirements of future generation. When we mean development and

progress it is also the wise and sustainable use of its natural assets available.

Corruption does not only distort development priorities, leads to conflict, violence and chaos. It

undermines social fabric binding people in unity and cooperation for centuries also spoiling the

environment and its sustainability.

Our natural assets comprise of both renewable and non renewal as land, forest, oil, minerals, air,

water etc. How nations and people use these natural assets defines not only the sustainability of

human civilization it also generates conflict, violence and even war among them.

Greed for accumulating more money and grab political power through it and further using the

same power to accumulate more wealth has caused the depletion of invaluable natural resources

worldwide. Developing Countries dependent mainly on natural resources, are suffering mainly

from this vicious cycle.

Obviously, rampant corruption weakens state and social institutions that are responsible protect

nature and environment. The entire protective shields available for the preservation of natural

resources are weakened by corruption. Nepal’s forest resources as well as rare wild life have

been the target of corrupt practices among people in power and authority for long. Cruel

exploitation of stone, boulders, concrete and sand and its export to India, is one but sufficient

example that has been causing Siwalik (Chure) range of mountain crumbling and bringing havoc

in the plains with floods and landslides. If it continues this way the fertile plain land not only in

Nepal but the Gangatic plains of India and Bangladesh will be deserted. The millions of lives

living there will suffer the worst.

Nepal’s bio-diversity has fallen into troubled waters due to rampant human encroachment and

the global warming induced climate change. There is serious concern because the measures to

tackle the damages are nowhere visible. However, Nepal itself can do very little to fight against

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corruption due to its weak institutional capacity. Climate change can bring devastating effects in

the whole Himalayan plains of Nepal, India and even Bangladesh, if things are left unattended.

In this respect, all the countries within the same river system should join hands with Nepal to

tackle the catastrophe. Even a minor change in the temperature is bound to lead not only to the

decimation of many species of flora and fauna but millions of population living in this region.

Nepal has shown and this research has also proved that when a state is weak, it cannot provide

protective shield to environment and people. Only very few people with power and authority

command over the state property and natural assets. People may be denied for their property

rights. Insecure property rights also iampact on natural and environmental assets. Life in water is

threatened and trees are cut prematurely. Natural balance will be affected and climate change

would bring harsher and harsher calamities leading to more environmental disaster. Thus, it

reduces investment in human made capital; but it encourages encroachment on forest and public

land (10).

Thus protecting the environmental assets and improve governance is one of the biggest challenge

of humanity in the 21st century. In the last 60 years, we have made tremendous achievement in

obtaining knowledge, wealth, health and human happiness. But, what we have failed in all these

years is protecting our environment, prolonging the life of earth and sustaining the happiness we

have achieved. Desertification has advanced to an unimaginable level affecting 250 million and

threatening about a billion people living in 110 countries and this figure could double by 2050.

(11). If deforestation continues at the present pace, rainforests will have been eliminated from the

surface of the earth by 2050. (12) If all developing countries follow the same ecological foot

marks of developed countries humanity will need nine more planets to the size of the earth to

meet the needs of the natural resources of the world population. (13). Environmental problems

like climate change would cause large dislocations in ecosystems fundamental to human

societies and economies e.g. complete loss of world’s major rain forest, glaciers in the Andes and

Himalayas and rapid acidification of oceans leading disruption of whole marine ecosystem. This

could extinct more than 50 percent of sea lives. Besides a mere one meter increase in sea level

by the end of this century will threaten the lives of more than 60 million people and 200 billion

in assets in developing countries alone. About 400 million more people could risk hunger and

about 2 billion people may no longer have enough water to meet their basic needs (14)

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No doubt, Climate change has become the most formidable environmental threat of our time

and this according to World Bank President Robert B. Zoellick ‘is one of the most complex

challenges of our century. No country is immune. No country alone can take on the

interconnected challenges posed by climate change, including controversial political decisions,

daunting technological changes and far reaching global consequences.’(15). Again, according to

Zoellick as the planet warms, rainfall patterns shift and extreme events such as droughts, floods

and forest fires become more frequent. Millions of densely populated coastal areas and islands

will lose their homes as the sea level rise. Poor people in Africa, Asia and elsewhere face

prospects of tragic crop failures; reduced agricultural productivity and increased hunger

malnutrition and disease. (16)

Certainly, corruption contributes to the weak enforcement and implementation of environmental

regulations and the violators' laws are left untouched for their crimes against the environment

and harms they inflicted to the people. Corruption makes a country handicapped in using its

natural resources for the larger interest of people and hampers growth and development.

1.4. Agriculture, the World in 2050 and Environmental Sustainability

One third of the land used for cultivation and animal grazing was almost deserted by the end of

last century. During that time only 25 percent of the surface was suitable for rainwater – reliant

agriculture and 35 percent of the productive land in Asia had become desert. In Latin America 73

percent of dry lands in agricultural use suffer from a kind of desertification.(17) According to the

estimate of World Bank - by 2050 the world population could be 9 billion (i.e., about 50 percent

more than today). Similarly, the world income would increase about fourfold (135 trillion

Dollar) by present ratio. The share of low and middle income country in the world income will

be 40 percent to that of 20 percent now. Average per capita income in developing countries

would be US$ 6,300 and more than 65 percent of the population by that time will live in urban

areas. With rising income and population growth the demand for food could double. (18)

To supply food for the increased population by 2050, we need more and high quality foods. But,

sustained agriculture growth cannot be achieved by increasing the land area under cultivation.

Further expansion of agricultural land would cost highly to the environment and bio-diversity.

Therefore, environment friendly, high yielding and sustainable crops farming is the only valid

but responsible answer available to us.

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This means we need an agricultural revolution and a new sustainable agro trade policy that

could ensure our life and safety in the new millennium. Better policy and programs to answer the

problems of land and water degradation, deforestation and air pollution. Nutrient management,

integrated pest management, conservation and policies and institutions that can promote better

practice adapting climate change. (19) But, this cannot be attained without better and responsible

markets for agricultural products. Better trade practices between and among states is another

crucial matter on this regard.

1.5. High Value Agricultural Products and Export Situation

The primitive nature of agro based economy has led widespread unemployment and low yield.

So growing fruits, cash crops and industrial crops have been popular these days. But Nepal does

not have any product specialization. One year Nepal finds a good market for its one kind of

agricultural products but the next year, the market of that particular product is flooded with

products from India and China. Small Nepali farmers and agro businessman are to suffer heavy

losses at the hands of successful and powerful agro- business houses of its immediate

neighbors- India and China.

So there is little consistency on agricultural products for the purpose of exports. To compensate

this Nepal at times have shown trends exporting natural resources e.g. timber, stone, boulders

and sand which ultimately have deteriorated the environment.

Food markets in Nepal are rapidly changing with urbanization and growing number of middle

class population. They are demanding more high value agricultural products. Newer market

opportunities are being open for agro traders. Market liberalization in many countries has also

motivated the producer, processors, retailers and exporters of agricultural traders in Nepal. Since

the last two decades, Nepal has begun to produce some high value agricultural crops in

remarkable volume. During this period the area of land used for growing high value crops e.g.

vegetables, fruits, spices, and other industrial cash crops has increased three fold. More than one

third of cultivable land area (1061379 Hectare) is covered with such crops. This has helped to

improve the living standards of thousands of farmers.

According to the primary estimate of Trade and Export Promotion Center, a government body

related with export promotion in Nepal, in the fiscal year of 2009/2010 the total Nepali export

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was only 14 percent whereas the import was 86 percent. The export when compared with the

previous year has decreased by 11.1 percent and the import was increased by6 29.1 percent.

Total amount of import was Rs.367.61 billion while the export was only Rs.60.95 billion rupees.

The proportion import and export in the year was 1:6.2 while in previous year it was 1:4.2.

During the year 2009/2010 Nepal exported tea with equivalent to Rs.1.20 billion, ginger Rs.460

million, coffee Rs.24.30 million and essential oil Rs.35.9 million.

Nepal’s trade imbalances have been widely increasing year after years. Trade deficit of Nepal in

the year 2009/2010 has increased by 41.5 percent (Rs.314.66 billion). It has made it clear that

Nepal has to expend its valuable foreign reserve to import the daily needs. In the mean time,

export based industries are facing trouble due not only to interrupted power supply and labour

unrest but the more by corruption. As a result employment opportunities are narrowed down. If

Nepal fails to increase its internal production as well as its quality, its political instability and

internal conflict will deteriorate the situation further.

The table given below shows the position of given crops production and export in the year 2008/2009 and 2009/2010

Commodities

Area under Cultivation (in Hectare

production KG Values in NRs.000 Main Districts of production

Main countries for Export

2008/2009 2009/2010 2008/2009 2009/2010Tea 16718 9,195,5179

Kg.85,48,534 1,24,0864 1,195,318 Jhapa, Illam

Panchthar, Terathum, Dhankuta etc.

USA, UK, France, Canada, Japan, Netherlands, India, China, Korea etc

Coffee

1531 88,100 kg. 79,2900

Palpa, Gulmi, Syangja,Kavre etc.

India, Japan, Korea, USA, Canada. Germany etc.

Ginger

15836 26,723,603 30,415,678 403,408 456,014 Illam, Palpa,Morang, Nawalparasi and almost all districts

India, USA

Essential

27,501 16,108 54,928 35,905 Kathmandu, Bara, Parsa,

USA, Canada, China, Japan,

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Oils Dolakha, Sindhupalchowk etc.

UK, Germany, Sweden etc.

Source: Statistical Information on Nepalese Agriculture, Ministry of Agriculture and

Cooperatives- Government of Nepal, December 2009, www.tepc.gov.np and AEC/ FNCCI Nepal,

2009.

Following this introductory chapter, methodology of the study is described in the second

chapter. The third chapter has a detailed data analysis. Findings of the study are given in the

fourth chapter along with recommendation and conclusion.

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Chapter two

2. Methodology of the Study

2.1. Objectives of the Study

The Objectives of the present study is to investigate:

1. The nature and practices of corruption in Nepalese export trade.

2. The impacts of corruption on social and environmental sustainability.

3. The needed measures to control corruption and ensure sustainability.

2.2. Study design and Research Methodology

In order to gather the background information for the study and assess the real situation dozens

of relevant literature were thoroughly reviewed. The questionnaires were developed to gather

information. Research team visited 16 facilities/companies and interviewed 32 persons engaged

in the relevant trade practices (Annexure2). Among the facilities, 20 respondents were selected

randomly to cover the whole cycle of production, processing and exporting.

This study adopts both quantitative and qualitative methods for analyzing and interpretation of

the data collected. Questionnaire and interviews along with observation of enumerators are the

primary source of information.

2.3. Methods of Data Collection

In this study primary information are respondents. The questionnaires were developed, discussed

and pre-tested before finalizing for data collection. The twenty respondents were randomly

selected, covering almost all geographical regions and involved in various level of business of

Tea, Coffee, Essentials Oil and Ginger. They comprise of exporter, trader, producer and

processor. They were the key elements of this study and are the sources of data as well.

Some people who were involved in this sector were interviewed informally to verify the data

collected through questionnaires. The complete list of companies, organizations and persons

from whom data was collected is given in annexure.

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2.4. Research Sites and Data Analysis

Kapilvastu, Syangja, Arghakhanchi and Palpa districts from western Nepal were selected for

Coffee and ginger. Salyan from mid –western region was selected for ginger. Dhankuta,

Morang, Ilam and Jhapa districts were found for tea (Eastern Development Region) and finally

Kathmandu was selected for essential oil from Central Development region. In this way this

research has covered four from the five development region and 10 out of 75 districts of the

country. These sites were selected because of trade related concentration of production and

procession activities. The companies and individual for administering questionnaires and

informal interviews were selected randomly for the availability and accessibility of data needed

for.

All the data and information gathered through questionnaire and interview were checked and

edited for internal consistency. The information is classified and simple statistical tools like

mean, mode, bar diagram, pie chart were used for illustrating relationship between the variables.

2.5. Limitation of Study

The study has several limitations which are given as follows:

The respondents were hesitant to talk on issues like corruption. They did not want to share their

exact trade volume and transaction.

Many people who are engaged in production of coffee, ginger and essential oils produce it as

supplementary crops on their lands. Middlemen and traders collect those products from

individual farmers and bring them to mainly local markets. Absence of institutional set up to

produce, price and export and organized efforts are some other limitations of the study.

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Chapter Three3. Data Analysis

Chart no. 3.01. Involvements in areas of agro products

Total Number of Respondents:-20

012345678

Tea

Cofee

Essential Oils

Ginger

Out of 20 respondents a 40% (08) respondent belongs to tea production, 25% (05) respondents

belong to essentials oil where as only 20% (04) and 15% (03) respondents belong to coffee and

ginger respectively. Majority of the respondents belongs to tea because tea production is famous

in the Nepal and respondents were easily available, whereas in the case of the coffee production

is just a new starts in very few districts.

Page 21: The impacts of corruption on the social and environmental sustainability in nepal

Chart no.3.02

Level of Channel of Production Respondent had involved

Levels of Channel of Production

ProductionProcessingDomestic TradeExport TradeOthers

Out of 20 respondents, majority of the respondents (28%) were involved in both the domestic trade and export trade, whereas (24%) respondents were involved in processing and only (20%) respondents were involved in production.

Page 22: The impacts of corruption on the social and environmental sustainability in nepal

Chart no. 3.03. The attractive factors for selecting the profession

01234567 High Yielding and Profitable

Personal ExperienceSmooth marketabilityOthers

When the respondents were asked on the attractive factors to choose the profession, majority

(35%) of the respondents told that their personal experience encouraged them to choose this

profession, Smooth marketability was the next attractive factors for them with 25% of the

respondents. Some of the respondents 20% told high yield and profitability encouraged them,

where as some 20% told other causes like as easy bank loan, job opportunity, suitable

environment and experts advisory.

Page 23: The impacts of corruption on the social and environmental sustainability in nepal

Chart no. 3.04.

The most distractive factors in the business

Absence of Technical Support and Bank LoanLow Yielding and unfavorable climate Absence Marketability CorruptionOthers (specify)

When the respondents were asked about the most distractive factors seven among the twenty

respondents 35% told that absence of the technical support and lack of loan from banks is the

most distractive factors they had faced. Twenty percent of respondents told that low yielding and

unfavorable climate and absence of marketability were the distractive factors for them. Equal

number of respondents said that it was absence of marketability. But the second most distractive

factor for all the respondents (25 %) was indeed corruption.

Table no:-3.05

Corrupt Practices Respondent has faced(In percentage)

Corrupt Practices Production Processing Trade ExportExtortion 30 50 24 17

Page 24: The impacts of corruption on the social and environmental sustainability in nepal

Favoritism 9 15 28 25Carteling 30 05 17 17Coercive/ forceful Obstruction

17 15 12 25

Embezzlement 5 00 6 00

Others 9 15 12 16

Most of the respondents involved in the production level told that extortion and trade cartel are

the most corrupt practices they faced during their business, followed by the coercive/forceful

obstruction. Favoritism and illegal local tax, various forms of donation and lottery in the name of

the various religious/ cultural practices and lottery are included in the others.

In the case of the processing fifty percent of respondents faced extortion then followed by the

favoritism, coercive and cartel, whereas no one faced the embezzlement problems, where as

various kinds of local tax, donation were mentioned by the respondents.

Majority of the Respondents involved in the local trade faced either favoritism or extortion. Then

other respondents told that cartel, coercion and embezzlement were the problems they faced

during their business. The respondents came under others categories were faced with problems

like, local tax, transport problems and etc.

Likewise equal number of respondents 25% involved in export trade told that favoritism and

coercive activities were the corrupt practices they faced during their business. Similarly, equal

numbers of respondents 17% respondents told that extortion and cartel were the bad practices

they faced during their business. None of the respondents faced embezzlement during the

business The respondents from other category told that, problems in custom and border areas and

donation were the main problems they faced during their business.

Page 25: The impacts of corruption on the social and environmental sustainability in nepal

Chart no: - 3.06. People responsible in the corrupt practices

0

2

4

6

8 Government Officials

Member of Political Parties and their affiliates

Trade Unionist

Middle Man

All

Others (specify)

Data showed that all (government officials, members of political parties, trade unionist and

middle man) actively found engaged in the corrupt practices. This mean that corruption in Nepal

has institutionalized and majority of the respondents (8) told this. Some underground rebels

groups included in the others.

Page 26: The impacts of corruption on the social and environmental sustainability in nepal

Chart no.3.07Effects of Corruption

0

1

2

3

4

5

6

Low Salary/Income or ProfitPoverty/ DeprivationDiscrimination in gender and other AspectsRestrictions on the Access of in-dividual and Community to Natu-ral ResourcesEnvironmental DegradationAllOthers (specify)

Most of the respondents answered that most of the problems with their job was the corrupt

practices. As a result of this they are forced to suffer from poverty, low salary or profit, gender

based discrimination, and restrictions on access to natural resources. Environmental degradation

is the common problems experienced and faced by the respondents. Personal humiliation, lack of

the political support to raise voice against such practice, inferiority complex are mention in the

others category.

Page 27: The impacts of corruption on the social and environmental sustainability in nepal

Table no:-3.08Good governance and corruption

Conditions of Laws Yes No Not Sufficient

Sufficient law against Corruption

00 06 14

Strong Legal and Constitutional mechanism

00 08 12

Implementation of Anti Corruption law in Local level

03 12 05

Organization to support the victims

01 11 08

Others (specify) 00 00 00

Overwhelming majority of the respondents this or that way believed that present legal systems are not competent to control corruption and institutional support mechanism to protect the victims are not sufficient.

Table no:-3.09Provisions required to hold the person involved in corruption

Provisions PercentagesStrong Constitutional Mechanism 15Strong Legal Mechanism 13Strong Political Commitment 08Strong Civil Commitment 05Interfering by the donor agencies 03Capacity building of the organizations working against corruption

08

Transparent procedure 08Making Strong network of the victims 13Banning corrupt organizations in international trade Promoting fair practices

03

Strengthening the Role for international Trade bodies and Trade Unions

03

All 13Others (Specify) 08

Page 28: The impacts of corruption on the social and environmental sustainability in nepal

When researcher asked, what can be done to hold people engaged in corruption accountable?

majority of the respondents argued to amend the present legal system (28% respondents argued

for the strong constitutional and legal provision), and followed by the strong network of the

victims and some respondents argued all options given in the question are essential to check the

corruption, and the respond from other category told that all rights should given to companies to

check the corruption, but they are not clear what short of right they want.

Chart no.3.10

Products mainly exported

012345678910

IndiaChinaSouth Asian Countries other than IndiaAsian Countries (excluding South Asian Countries)European CountriesOthers (if any)

Majority of the respondents export their products to India since it is the nearest neighboring

country. Another large numbers of the respondents export their products in European Countries,

like Germany, Austria, United Kingdom, Belgium and others. Whereas some others respondents

export their products to other Asian countries (except South Asia) were Japan, South Korea and

Gulf Countries. Bangladesh was another South Asian Country except India, where Nepali trader

exports their products. USA is included in others. Most of the respondents were not interested to

answer their amount of business and profit.

Page 29: The impacts of corruption on the social and environmental sustainability in nepal

Chart no.3.11Corruption during Export

02468

1012

YesNoLittle or more is to be given anyway

Majority of the respondent 15 out of 20 ( included both yes and little or more is to be given any

way) agreed that they have been paying bribes in the time of the exporting their goods, only five

respondent told that they were not forced to pay bribes.

Page 30: The impacts of corruption on the social and environmental sustainability in nepal

Chart no.3.12People engaged in corrupt practice

0

1

2

3

4

5

6

7

Police or Border Security ForceCustom OfficersForeign trade syndicatesAll

Another aspect of the corruption is shown by the chart (3.12) Respondent told that all (police and

border security force, custom Officers, foreign trade syndicates) were actively participated in

corrupt practices.

Page 31: The impacts of corruption on the social and environmental sustainability in nepal

Chart no.3.13Mode of Transportation

0123456789

10RoadSeaAirRailAll

Most of the respondents who export their products to India used road, those who export Europe

use Sea and those who export others Asian, North American and South Asian Countries use Air.

Page 32: The impacts of corruption on the social and environmental sustainability in nepal

Chart no.3.14Use natural resources in any channel of agro products

River waterGround waterForest productsSolar energyBio/natural gasNothingAllOthers

Majority of the respondents used forest products (35%), and then ground water (19%), river

water (15%) and bio gas (12%), none of the respondents used solar energy. The respondents

from others used water, form Lake as well as collect rain water.

Table no.3.15Measures taken to fulfill social or environmental commitment

Social Commitment Respondents in percentages

Supporting to open and run Schools, libraries and Health facility to local people

19

Have opened and run schools, libraries and Health and sanitation facility as well as subsidized supply of foods and other consumer goods for the labor engaged in your company

05

Providing drinking water facility and supports 16

Page 33: The impacts of corruption on the social and environmental sustainability in nepal

to local development infrastructures e.g. roads, bridges, communication facilities community houses etc.

Recharging ground water 16

Waste water treatment plant 02

Solid Waste Disposal System 19

Reforestation in public land or Community forest

12

Others (Specify) 00

Nothing 11

Majority of the respondent were involved in the social welfare like as building schools, drinking

water facilities, health post, roads, library and others which shows that they are committed

towards their social responsibility. Like this, respondents are found serious towards the

environmental protection (16%) respondents involved in recharge of ground water, (12%)

respondents were involved in reforestation, (2%) respondents had water treatment plant and

(19%) has solid waste treatment plant and they made organic fertilizer by solid waste, which

show that (49%) respondents directly involved in the environmental protection, only few

respondents (12%) were not serious about their social responsibility, they did nothing.

Page 34: The impacts of corruption on the social and environmental sustainability in nepal

Chapter Four

4.1. Findings of the Study And

Recommendations

The results of this research do suggest a significant relationship between corruption and

environmental sustainability, care needs to be taken while interpretation.

The analyses presented in this paper provide some clues on the relationship between corruption

and environmental sustainability; more qualitative analysis could generate insights that would

help with the interpretation of the national studies

Corruption thrives when government and political parties are weak and inefficient to represent

people with their interests, confidence and enthusiasm. This study has also shown that

corruption has both national and international dimension. It has strong connection with each

other. Therefore, both the national and international community has a tremendous job to do in

this regard. They may effectively build pressures and encourage any country to ratify

international treatise against corruption. The table 3.11 and 3.12 has forced us to make this

conclusion. Nepali export traders have not only to pay bribes to the Nepali officials but also to

foreign officials and trade syndicates.

Nepal needs intensive researches on goods for exports. The government, businessmen, academic

institutions, trade unions and all other stake holders with their own initiations are to be engaged

in researches with bigger as well as smaller and effective research units. More efforts on policy

and program level are to be given to provide Nepali products wider international markets. Global

standards are to be met and continuously maintained strictly as well on areas of production,

processing, packaging, labeling and quality testing.

Similarly, special production zones for export trade are to be developed and export oriented

industrial and business sector are to be provided with special security and other befitting

measures. Up to now only tea sector is found with such zone. Attractive benefits are to be

provided with infrastructural support including uninterrupted power supply, communication and

transport network including short term and long term policy and program support.

Page 35: The impacts of corruption on the social and environmental sustainability in nepal

Nepal alone cannot do this. International community also must feel an urgent need to provide

financial and technical support to a developing country like Nepal in building strong political and

constitutional bodies to make a fight against corruption and ensure smooth passage to their

products. They may also support civil societies working against corruption. Parliament, the most

important political actor can curb corruption by ensuring accountability and transparency.

Parliamentary oversights through anti-corruption agencies and empowerment of civil society and

media have a most critical role in this regard to play. Media in Nepal have shown great efforts in

bringing corruption cases into public, but they are not supported by legal institutions. So soon the

media zeal and commitment against corruption dies or come under the influence of corrupt

people.

A strong and independent judiciary accounts much in each and every national commitment

against corruption.

Nothing can grow and be sustainable without strong public support. So, in the case of combating

corruption, this study has also indicated that it is the public who must come to lead the nation.

With confidence and strong civic actions, they can raise their voice and build effective advocacy

in favor of zero tolerance to corruption at the political level.

Corruption is not only the result of weak law and order situation, but also the result of values

cherished by individual and society. All the respondents involved accepted this as normal and

routine. And this is the most terrible thing. This makes the whole society fall into shatters. So

reforming strengthening good values system and reforming the opposite one through strong

advocacy and campaigning is a basics for fighting corruption.

People and companies engaged in trades related with tea, coffee, ginger and essential oils are

heavily dependent upon natural resources. For example 35 percent of the respondent used forest

resources (table 3.14) but only 12 percent involvement in reforestation makes it clear that we

need much to do in ensuring environmental sustainability. Policy intervention is most needed for

safer waste water and solid waste disposal system to control the contamination of both ground

and river water resource. If strong policy and technical support could be made available to use

solar energy at the processing level, it would help both to protect the forest resources. A country

suffering from power cut almost every time of the year and up to 11 – 18 hours a day in the off

season makes future of all our industry and trade with a bleak.

Page 36: The impacts of corruption on the social and environmental sustainability in nepal

As mentioned above, political instability, lawlessness, nepotism and lack of accountability have

been identified as the overall situation of Nepal. Corruption has dominated governance at all

levels, It has weakened our national will power in such a way that an anti-corruption agenda has

failed to exist as a political and social priority of Nepal. So this has even corrupted the justice,

democracy and overall national economy.

4.2. Conclusion

As anywhere in world, Nepal has also shown that higher levels of corruption lead to lower level

of investment, and growth. It lowers productivity in all sectors whereas agriculture or

manufacturing causes low spending in education health and infrastructure development. (20) This

also produces a more unequal distribution of income, tax evasion at a larger scale undermines

poverty reduction programs and eats up the political legitimacy of whole system, brings political

disaster, strengthens the morale of terrorist organizations and ensures the collapse of whole set of

socio-political and economic system. This obviously will bring havoc in environment because all

the actors cruelly exploit the natural resources available in the country to fund their life and

activities. Political instability is the gravest cause for corruption which further steers for more

instability and loot on natural resources. Even at the level of top government official, the Forest

Ministry Secretary Yubaraj Bhusal, has recently claimed that only in the last seven years Nepal

has cleared 100,000 hectors of forest area due to such political loot. (21)

When trade fails, it is not only the traders responsible for this. The main is policy and politics for

good governance. Making strong demands for good policies and selecting responsible and

credible people is the answer to corruption. When people go to polls probably the most important

measure they themselves can do to change the situation is to vote the right person with a clear

conscience.

Nothing will be impossible and a country is sure to win its bright future if it has right people with

right policies to govern. Nepal can never be an exception. What we need are leaders at all levels

of society and governance -transparent and accountable in their conduct of public affairs.

Yes a nation needs good policies. With good leaders and good policies, we need a good team to

be in control, to run our nation curb corruption and protect environment and as mentioned above,

only electorates and opinion builders can do it much better.

Page 37: The impacts of corruption on the social and environmental sustainability in nepal

References

(1) ARD/ USAID, Tropical Forestry and Bio Diversity (FAA 118 &119) Assessment Report, Nepal, 2006.

(2) Keshav Prasad Bhattarai, The Himalayan times (July 12, 2010)

(3) James D. Wolfensohn, Voice For The World’s Poor- Selected Speeches and Writing, The World Bank,

2005, page 45,50-51.

(4) In the preface of Rick Stapenhurst, Niall Johnston and Ricardo Pellizo (edited) The Role of

Parliament in Curbing Corruption, the World Bank, 2006.

(5) Samuel P. Huntington: Political Order in Changing Societies, Adarsh Books, 2009, page-66.

(6) ibid page - 63.

(7) (Quoted in J. Edgardo Campos and Sanjay Pradhan edited: The Many Faces of Corruption –

Tracking Vulnerabilities at the Sector Level, The World Bank, 2007, page 1.)

(8) ibid.

(9) Rick Stapenhurst, Niall Johnston and Ricardo Pellizo (edited) The Role of Parliament in Curbing

Corruption, The World Bank, 2006, page 14.

(10) World Development Report 2003, page 42.

(11).Federico Mayor in collaboration with Jerôme Bindé , The World Ahead : Our future in the Making,

Zed Books and UNESCO Publishing House,2001, Page 178.

(12). Mayor and Bindé ibid page 154.

(13). Human Development Report 2007/2008 Fighting Climate Change: Human Solidarity in a Divided

World, page 3

(14) World Development Report 2010 – Development and Climate Change, The World Bank, Page 4.

(15) World Development Report 2010 page xiii

(16) Zoellick ibid

(17) Federico Mayor in collaboration with Jerôme Bindé , The World Ahead : Our future in the Making,

Zed Books and UNESCO Publishing House,2001, Page 179.

(18) Responsible Growth for the New Millennium - Integrating Society, Ecology, and the Economy, The

World Bank, 2004, page 1-2)

(19) Responsible Growth for the New Millennium - Integrating Society, Ecology, and the Economy, The

World Bank, 2004, page 9.

(20) Bjørn Lomborg (edited) Solutions to the World’s Biggest Problems – Costs and Benefits, Cambridge

University Press, 2007, page 232.

(21). Nagarik Daily, December 30, 2010

Page 38: The impacts of corruption on the social and environmental sustainability in nepal

Annexes

Annexure 1 1. Questionnaires developed for the Cases of Corruption in agricultural export in NepalQuestions for the person related with particular area of agro- products

Answer Pattern( Give a Tick in box )

Supporting Remarks

1. Name of the agro- products you are engaged in -

Tea

Coffee

Essential Oils

Ginger

Answer Pattern( Give a Tick in box )

Supporting Remarks

2. What level or Channel of production are you involved at?

Production Level

Processing Level

Domestic Trade

Export Trade

Page 39: The impacts of corruption on the social and environmental sustainability in nepal

Answer Pattern( Give a Tick in box )

Supporting Remarks

3. What are the most attractive factors you have been facing with in this particular chain?

High Yielding and Profitable

Favorable to geography and Climate

Suites to your interest

Easy to farm ,harvest, store

Smooth Marketability

Other (please specify)

Answer Pattern( Give a Tick in box )

Supporting Remarks

4. What are the most distractive factors you have been facing with In this particular chain?

Absence of technical know-how and support for production, Processing, storing, bank loan/etc.

Low Yielding & unfavorable climate

Page 40: The impacts of corruption on the social and environmental sustainability in nepal

Absence Marketability

Corruption

5. What kind of Corrupt practices you are facing with and at which level?

(Answer Pattern ( Give a Tick in related box )

Production Processing Marketing/ Exporting

Supporting Remarks

Bribery □ □ □

Extortion □ □ □

Favouritism □ □ □

Carteling □ □ □

Coercive/ forceful Obstruction

□ □ □

Embezzlement □ □ □

6. Who is mainly responsible for such corrupt practices?

(Give a Tick ) Supporting RemarksGovernment Officials □

Member of Political Parties and their affiliates□

Trade Unionists □

Middleman □

Companies buying products from the farmer □

Big farmers and traders □

Others (Please specify) □

Page 41: The impacts of corruption on the social and environmental sustainability in nepal

7. How has it affected you? Give a Tick Supporting Remarks

Low Salaries/ Income or Profit □

Poverty and Deprivation □

Discriminations in Gender or other aspects □

Violation of Land Rights of the individual or local Community

Restrictions on the Access of individual and Community to Natural Resources

Environmental Degradation □

a) Contamination of Water Resources □

b) Air Pollution □

c) Destruction of Forest and wild Life □

d) Others (Please Specify)

8. Please answer the following regarding the existing conditions on good governance and corruption ( Give tick in the proper box) Yes No Not adequate

1. Do we have stronger legal bodies against corruption?

2. Do we have stronger laws against corruption?

3.If the laws against corruption is implemented at the local level?4.If are civic bodies to protect victims of corruption?5.Others ( please specify)

9 .What can be done to hold People engaged in corruption accountable? Give a Tick

Supporting Remarks

Page 42: The impacts of corruption on the social and environmental sustainability in nepal

1.Making constitutional provision against corruption more stronger

2.Making new laws (more strict against corruption)

3.Strong political determination and commitment

4.Strengthening the capacity of anti corruption agencies

5.Forming new unions among people engaged in production, processing and trade channel

6. Strengthening the capacity of traders, trade unions and other civic bodies against corrupt practices.

7. Intervention from Donor Agencies. □

8.Making strong Networks of the Victims □

9.Making Procedure Transparent □

10.Banning corrupt organizations in international trade Promoting fair practices

11. Others

10. Where is your products mainly exported to? How much profit did you earn from your trade in the years mentioned?

Profit Earned from export in the YearsCountries / Regions Answer

Pattern(Give a Tick)

2007/2008 2008/2009 2009/2010

India □

Page 43: The impacts of corruption on the social and environmental sustainability in nepal

China □

South Asian Countries other than India

Asian Countries (excluding South Asian Countries)

Overseas Countries (Please specify the country or countries)

Others if any □

If you have any comments/ remarks please give it here:

11. (a)Are You forced to pay bribe or similar type of money to foreign officials or trade syndicates or networks ( please give a tick in the box

Yes, I have to pay No I do not Any how I have to pay little or more

□ □ □

11,(b)Whom do you have to pay such bribe

Police and border Security Force Custom Officials People/ institutions engaged in foreign trade

□ □ □

(c) Could you please provide some example?

(d). which mode of transportation do you use when you export your goods? By Road By Air By Sea By Train Comments

□ □ □ □

12. What natural resources do you use in any channel of agro products you are engaged in?

Page 44: The impacts of corruption on the social and environmental sustainability in nepal

Give a Tick in the box

Supporting Remarks

Forest Products □

River water □

Ground water □

Solar energy □

Bio Gas/ Natural GasNone of them □

All of them □

13. What measures you have taken for the promotion of your social or environmental commitment and responsibility?

Give a Tick in the box

Supporting Remarks

Supporting to open and run Schools, libraries and Health facility to local people

Have opened and run schools, libraries and Health and sanitation facility as well as subsidized supply of foods and other consumer goods for the labor engaged in your company

Providing drinking water facility and supports to local development infrastructures e.g. roads, bridges, communication facilities community houses etc.

Reforestation in public land or Community forest

Recharging ground water □

Waste water treatment plant □

Solid Waste Disposal System □

Others, please specify □

14. Could you help us to have a look on Eco Audit situation in the production, processing and exporting process of your farm or company?

Page 45: The impacts of corruption on the social and environmental sustainability in nepal

How much you saved? How much you managed?

Number of Trees

Amount Water

Energy Green house gases

liters of waters

Tons of solid waste

Toxic chemicals

Remarks

If You have something more to say please write here:

17. If you have any comment you would like to make:1.2.3.18. Please use additional paper if you need to elaborate your answer and comments

1. Name - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . (optional)2. Age - . . . . . . . . . . . . . . .3. Company -. .. . . . . . . . . .. . . . . 4. Position - . . . . . . . . . . . . . . . . . 5. Job Description - . . . . . . . . . . . . . . . . .6. Experience:7. Motivation that keeps you in this job/ profession:

19. If you want to say more about you, your job, your company and your observation on this area of study you are welcome.

With Thanks

Annexure 2

Companies and facilities visited for data collection and questionnaires administration

Page 46: The impacts of corruption on the social and environmental sustainability in nepal

1. Annapurna Organic Agro Industry, Sandhi Kharka Arghan Khanchi.2. District Cooperative Associations, Tamghas 4, Gulmi.3. Giri Bandhu Tea Estate Pvt. Ltd. Birtamod, Jhapa.4. Ginger Research Program, Ghanawang, Salayan.5. Gorkha Tea Estate Pvt. Ltd. Phikkal, Illam.6. Gurnas Tea Estate, Dhankuta 1, Dhankuta.7. Herbs Production and Processing Co. Ltd. Kathmandu Metropolitan city 35, Kathmandu.8. Highland Coffee Promotion Co.Ltd. Ichangunarayan , Kathmandu9. Himalayan Bio Trade Co. Ltd. Dhapasi, Kathmandu.10. Himalayan Sangrila Tea Pvt.Ltd. Sankhejung 7 - Nepal Tar, Illam11. Himalayan Tea Processing Pvt.Ltd. Sankhejung 3 , Illam12. Kuwapani Tea Plantation, Hile, Dhankuta.13. Nepal Small Tea Producer Pvt. Ltd. Phikkal Illam,14. Ginger Production Cooperatives Association, Limited, Tansen 4, Palpa 15. Siddha Kalika Coffee Production Association, Madan Pokhara ,Palpa.16. Shiva parbati Community Consumer Group,Banganga, Kapilbastu.17. Sankhejung Hill Range Tea State, Sankhejung, Illam.

Annexure 3.Persons involved in production, processing, and exporting tea, coffee, ginger and essential oils, which were consulted by the researcher to fill the questionnaires and interviewed informally to verify data.

1. Mr.Amar Bahadur Rai, Sankhejung 3, Illam.2. Mr.Bashanta Raj Chitrakar, Jadibuti, Kathmandu.3. Mr.Bir Bahadur Basnet,Sankhejung Illam.4. Mr.Bhesh Raj Timilsina, Tansen 4, Palpa.5. Mr.Dadhi Ram Acharya, Sandhikharka 6, Arghankhachi.6. Mr.Dilip Rai,Phikkal 5,Illam.7. Mr. Gopi Dhungana, Panchkhel, Kabhre.8. Mr.Hom Sitaula, Sankhejung 7 - Nepal Tar, Illam9. Mr.Janardan Gauttam, Dhanawang Salyan10. Ms. Kalpana Tamang,Garamani Jhapa.11. Mr.Khagaswar Gauttam, Tamghas, Gulmi12. Mr.Khilendra Gurung, Dhapasi, Kathmandu.13. Krishna Dahal, Hile, Dhankuta14. Krishna G.C, Tansen 4, Palpa15. Krishna Ghimire, Ichangunarayan, Kathmandu16. Ms. Madhu Malla, Banganga 7, Kapilbastu17. Mr.Maheswar Ghimire, Banasthali, Kathmandu.

Page 47: The impacts of corruption on the social and environmental sustainability in nepal

18. Mr.Nabin Karki, Dhankuta.19. Mr.Nadip Gaha Magar,Tansen 4, Palpa20. Mr.Parshuram Acharya, Sandhikharka, Arghakanchi.21. Ms.Punam Rai,Phikkal Illam.22. Mr.Raj Kumar Dahal, Birtamod Jhapa.23. Mr.Ram Prasad Ghimire, Madan Pokhara, Palpa.24. Ms.Renu Ghatri Chhetri, Jadibuti, Kathmandu.25. Mr. Roshan Rai, Sundarpani, Illam26. Ms.Sabitri Rai, Jadibuti, Kathmandu27. Mr. Sameer Dhungel, Putali sadak, Kathmandu.28. Mr.Sanjib Budathoki, Dandagaon, Salyan29. Ms.Shanti Gurung, Sainik Tole, Jhapa30. Mr. Sushil Prasad Rijal, Kanchanbari - Biratnagar, Morang31. Mr.Uttam Pradhan Phikkal, Illam32. Mr.Yubaraj Acharya, Tamghas 4, Gulmi