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

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<ul><li> 1. The Study onTHE IMPACTS OF CORRUPTION ON THE SOCIAL AND ENVIRONMENTAL SUSTAINABILITY IN NEPALStudy Conducted by: Nepal Labour Foundation (NLF) Kathmandu, Nepal Submitted toCNV International - Fairfood InternationalNetherlands January, 2011</li></ul><p> 2. ACKNOWLEDGEMENTThis report on the Impacts of Corruption on the Social and Environmental sustainability inNepal would not have been possible without the support and hard work of institutions and manyindividuals.Nepal Labour Foundation (NLF) would like to extend its sincere thanks to CNV Internationaaland Fairfood International for entrusting this research study to NLF. Likewise, NLF extends itsheartfelt thanks to Tea Estates and their workers (that were taken as sample) for providing theirvaluable time and participating in the process of study. NLF is thankful to all key informants andinstitutions that provided valuable information for this study.The entire research team deserves much appreciation for their dedication and hard work toaccomplish 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 supportprovided for data collection, tabulation and logistic during the field work.Khila Nath DahalPresident, NLFKathmandu, Nepal 3. AcknowledgementsI would like to express my heartfelt thanks to The National Federation of Christian TradeUnions in the Netherlands (CNV) and Fair food International for assigning Nepal LabourFoundation 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 andproviding the information. Mr. Ram Narayan Kurmi and Ms. Leela Dahal, did the hard workshowing much zeal and enthusiasm by visiting so many districts and facilities in a given timeframe 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 courageand strength for me in conducting this study.Mr. Anchan Bhattarai, did the most tremendous task of tabulating the collected data, preparingcharts and analyzing and interpreting the information. Without his skill and labor it was notpossible 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, thePresident and Dr. Khem Raj Bhetuwal, General Secretary of Nepal Labour Foundation and itsexecutive body for assigning me this job. It has given me new insights and experiences indealing with such a critical study of national importance.Keshav Prasad Bhattarai Team Leader The Impacts of Corruption on the Social and EnvironmentalSustainability in Nepal 4. ContentsExecutive Summary1.1 Background of the Study1.2. Corruption in Nepal and Global Experiences1.3. Corruption and Environment Sustainability1.4. Agriculture, the World in 2050 and Environmental Sustainability1.5. High Value Agricultural Products and Export Situation2. Methodology of the Study2.1. Objectives of the Study2.2. Study design and Research Methodology2.3. Tools of Data Collection2.4. Research Sites and Data Analysis2.5. Limitation of Study3. Data Analysis3.01. Involvements in areas of agro products3.02. Level of Channel of Production Respondent had involved3.03. The attractive factors for selecting the business3.04. The most distractive factors in the business3.05. Corrupt Practices Respondent has faced3.06. People responsible in the corrupt practices3.07. Effects of corruption upon people3.08. Good governance and corruption 5. 3.09. Provisions required holding the person involved in corruption3.10. Products mainly exported3.11. Corruption during Export3.12. People engaged in corrupt practice3.13. Mode of Transportation3.14. Use natural resources in any channel of agro products3.15. Measures taken to fulfill social or environmental commitment4.1 Findings of the Study and Recommendations4. 2.ConclusionReferencesAnnexes1. Questionnaires developed for the Cases of Corruption in agricultural export of Nepal2. Companies and facilities visited for data collection and questionnaires administration3. Persons involved in production, processing, and exporting tea, coffee, ginger and essentialoils, consulted by the researcher to fill the questionnaires and interviewed informally to verifydata. 6. Executive SummaryThis study investigates the impact of corruption on the social and environmental sustainability inNepal its nature and practices in Nepalese export trade and measures to control corruption so asto insure social and environmental sustainability.A country suffering a long course of political instability, violence and with weak institutionscannot escape from the curse of corruption. The experiences around the world have alsoconfirmed this. But how has it affected the social and environmental sustainability was ourconcern and this was the concern of present study.The questionnaires were developed as per the assignment of Fairfood International ResearchDepartment. The study was designed by the type of information needed, and availability ofresources.As per the subject of the inquiry, questionnaire and informal interviews were adopted as primarytools of data.The respondents covering almost all geographical regions and involved in various level ofbusiness of Tea, Coffee and Essentials Oil including Ginger, were randomly selected. To verifythe data collected through questionnaires with people involved in this sector and interviewedinformally.Despite of various limitations information collected from the respondents have been classifiedand analyzed by using simple statistical tools like mean, mode, bar diagram, pie chart forillustrating relationship between the variables.The results suggest a significant relationship between corruption, export fluctuations andenvironmental sustainability. It, therefore, paves way for further research by involving thegovernment, businessmen, academic institutions, trade unions as the stake holders. Nepaleseproducts 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, uninterruptedpower supply and enough financial services, supported by long-term policy and programmes forexport promotion. 7. Support of international community can be vital towards the formation of institutionalmechanism and strengthen civil society on their movement against corruption Parliament, themost important political actor can curb corruption by ensuring accountability and transparency inthe 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 thisregard to playA strong and independent judiciary accounts much in each and every national commitmentagainst corruption. Nothing can grow and be sustainable without strong public support. Thisstudy has indicated sufficiently that corruption is not only the result of weak law and ordersituation, but the product of values cherished by individual and society. 8. THE IMPACTS OF CORRUPTION ON THE SOCIAL AND ENVIRONMENTAL SUSTAINABILITY IN NEPAL Chapter OneIntroduction1.1 Background of the StudyNepal mainly is a sustenance agricultural country. Over 75 percent of its population dependsupon agriculture. 77 percent of its total land area is covered with hills and mountains and the restis the plain. About 21 percent land area is under cultivation. The forest, shrub land, grassland andwater cover about 54 percent of land mass. According to the Economic Survey made by theGovernment of Nepal on the year 2009/10 the preliminary contribution of agriculture and forestsector is 33.0 percent of the GDP1. As a share of total agro-crops, food crops comprises about 46percent, cash crops 31 and the others comprise 23 percent.To feed the over growing populations and earn their living Nepali farmers have few alternativesthan to farm in hilly slopes and fragmented plots of land under difficult climatic conditions. Tomake the situation worse mass level migration from hills and mountains to valleys and plainshave spoilt the fertile land and worsened the situation further. This gradually has caused severefood 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 lastthree decades, it is estimated that half of its forest of Nepal has been destroyed due mainly topolitical instability. This has laid tremendous pressures on the fragile ecosystems of themountains followed by mass deforestation leading to landslides and floods threatening the livesand occupation of millions of people living in both Nepal and India.Population pressure, land fragmentation, lack of irrigation and monsoon based farming, andinadequate 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 pressureupon land, agriculture and forest but also created ethnic divisions among people leading to1Economic Survey (2009/10), Ministry of Finance the Government of Nepal 9. political, social and economic instability. To feed its growing population, Nepal has to use all itsland 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 theconvergence of the eastern and western Himalayas. As a result of both this location, and the greatand dramatic altitudinal and climatic variation found within its borders, Nepal is home to atremendous diversity of ecosystems, especially for a country of its size. While the exact numberof ecosystems varies from source to source, the government of Nepal has recognized 118ecosystems 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 itslimited products into international markets. Nepals land-locked location has hindered its exporttrade potential. All these factors are attributed for inability in the production of agro and forestbased products as a significant share of Nepals 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 forNepalese products. To compensate this, Nepal at times has shown trends exporting crude naturalresources e.g. timber, stone, boulders and sand which ultimately have deteriorated theenvironment.1.2. Corruption in Nepal and Global Experiences According to the Corruption Perception Index published by Transparency International (TI) onOctober 26, 2010 Nepal is one of the highly corrupt countries, 146th 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 directimpact of the unstable political situation in the nation. In its 2009 report, Nepal was ranked 143positions 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 havemainly characterized this situation in Nepal. Unfortunately, corruption has not only dominatedgovernance at all levels, but also that an anti-corruption agenda has not become a political andsocial priority of Nepal. Corruption, as a great socio-political and economic evil of Nepalisociety, has been the major obstacles to justice, democracy and overall national development. In 10. a 2003 Global Poll, conducted by the World Bank covering 48 countries, corruption is ranked thefourth critical issue of development after economic growth, poverty reduction and education. (2)This is still relevant for NepalCorruption is said to be a major constraint to the enjoyment of human rights, reducediscrimination and subjugating the poor and marginalized groups. Their powerlessness to raisethe voice for their cause and inability to pay bribes for the enjoyment of their rights createsfurther 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 onetrillion dollar per year. This amount is equivalent to approximately 3 percent of the gross worldproduct. This is just the volume of the bribes but not the impact, which ultimately goes to a muchhigherlevel.One of the pioneers of anti-corruption movement, James D. Wolfensohn, former president of theWorld 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 adisease 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 ethosand mores of a democratic system. Buying votes as well as selling favors and opportunities hasbeen the standard political practices maintained studiously by almost all political parties. Thosewho gain access to political power also bag the most wealth, which resultantly, widens theexisting level of inequality to an intolerable level. This, in consequence, has producedfrustrations among the youths and the common people breeding severe instability and even morecorruption during such instability.The Commission for the Investigation of Abuse of Authority (CIAA) is an authority in Nepalwhich can take actions against all officials including the Prime Minister to ordinary publicservants. The CIAA acts to investigate the corruption and penalize the corrupt so as to promotegood governance, build morale of public servants and raise public confidence on the state. Nepalalso has an anti graft body called as National Vigilance Center several and owns several legalprovisions against corruption. As a signatory of the United Nations Convention againstCorruption (UNCAC), Nepal has recently enacted several acts to qualify with the legislative pre- 11. requisites of UNCAC. However, despite of these institutional arrangements, Nepal is at the topof the index of corrupt countries.One of the renowned political scientists of present time, Samuel P. Huntington mentions thatcorru...</p>

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