Integrating Environmental Considerations into the Economic Decision-Making Process
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IV. MULTILATERAL AGREEMENTS AND DOMESTIC POLICY

[ IV-A | IV-B ]

A. Multilateral agreements to which Nepal is a party

The interrelationship between development and environment has recently received a great deal of attention in the international community. Since the early 1960s, the international community has taken many important steps towards establishing an international moral and legal framework, and standards and norms for sustainable development in the forms of treaties, Conventions and agreements. Nepal is a party to about 20 such international instruments of global significance. A Nepalese delegation, led by the Prime Minister, participated in the biggest ever international conference on environment and development, the United Nations Conference on Environment and Development held in Rio De Janeiro in June 1992, and committed Nepal to the "Rio Declaration on Environment and Development". Among the international instruments to which Nepal is a party, those with the most immediate relevance are: (a) the Convention on Wetlands of International Importance Especially of Waterfowl Habitat, 1971; (b) the Convention Concerning the Protection of World Cultural and Natural Heritage, 1972; (c) the Convention on International Trade in Endangered Species of Wild Fauna and Flora, (CITES), 1973; (d) the Convention on Biological Diversity, 1992; and (e) the Convention on Climate Change, 1992. While Nepal is already a party to some Conventions which are not of immediate relevance, it is not yet a party to some immediately relevant Conventions such as the Bonn Convention on Conservation of Migratory Species of Wild Animals, 1979. The Bonn Convention is very important for the conservation of biodiversity, in which Nepal is very rich by virtue of its unique physical diversities. Likewise, Nepal is not yet a party to the Convention Concerning the Protection of Workers Against Occupational Hazards in the Working Environment Due to Air Pollution, Noise and Vibration, 1977, which is not only important for industrial pollution control but also for ensuring the welfare of the workers.

Each international instrument carries with it certain specified obligations on the part of the signatory countries in the form of incorporating, or at least reflecting, such obligations in its national legislation or policy formulation. The sense of such obligation is very well reflected both in the NCS of 1988, and NEPAP of 1993, urging the government to take necessary legislative measures. However, in practice, it appears that those obligations continue to be ignored or in the shadows, so much so that it is hard to get information on a specific Convention from the government agency which is directly concerned with its implementation. While implementation of international instruments is weak, their incorporation into domestic policy formulation is possible only when an appropriate and effective mechanism for the same is in place. Until recently, no such mechanism existed or worked. Even ratification of some Conventions appears to have been guided by ad hoc decisions. However, that is unavoidable when different sectoral agencies act on their own, within their own limited perspective, in the absence of any coordinating central agency such as the Environment Protection Council or the Ministry of Population and Environment. The contents of some of the environmentally-related Conventions, such as the Convention on Biological Diversity, are so comprehensive that they cannot be implemented by a single government agency, however competent. Taking that into account, the NCS of 1988 stated that the single sectoral approach of government departments towards resource conservation was not conducive to maintaining biodiversity, as a comprehensive approach was required that integrated the management of all resource sectors.

As far as the trade-related agreements are concerned, Nepal is not yet a member of the World Trade Organization, nor is it a party to other such agreements. However, Nepal has signed bilateral trade agreements with 17 countries, mostly based on the most favoured nation principle. Nepal is also a signatory to the recently introduced South Asian Association Preferential Trading Agreement (SAPTA) within the framework of the South Asian Association for Regional Cooperation (SAARC). SAPTA is designed to expand intraregional trade through preferential tariffs among its members. Nepal, like other SAARC member countries, has agreed to provide preferential tariffs on a number of specified items to all its members. Such items, now numbering 226 in total among all members, account for a negligible fraction of total intraregional trade which itself is at present very small. Likewise, Nepal, as a land-locked and least developed country, is committed to a number of United Nations Resolutions and also is signatory to the Convention on the Law of the Sea. As a land-locked and least developed country, all those Resolutions and Conventions have great significance for Nepal.

Likewise, Nepal is not yet a full member of the International Organization for Standardization (ISO) which provides guidance on the development and implementation of environment management systems (EMS) and principles applicable to any interested organization, irrespective of its size and type. However, as a "corresponding member" without any participation in the actual decision-making process, Nepal receives details of all ISO information and decisions of ISO on a regular basis. While NBSM has already developed general and specific effluent discharge standards for five different industries, it has not yet been possible for either NBSM or any other government agency to formulate EMS suitable to the Nepalese context and introduce them to any organization, industrial or otherwise.

By using the valuable inputs from ISO series and other publications, it will be worthwhile on the part of the Ministry of Population and Environment to prepare a manual, explaining in simple terms the importance and implications of EMS, its primary guidelines, principles and mechanisms, and to present it at a seminar/workshop representing the private sector, NGOs and government representatives. The relatively new concept of EMS is something which needs to be built into the overall organization and management framework as a tool for balancing economic and environmental interests. That is possible only upon the appreciation, realization and awareness of the importance of EMS by government and non-government organizations, especially those whose actions and activities have some environmental impact and implications. The Ministry of Population and Environment could, therefore, initiate a programme through an appropriate NGO for the familiarization and promotion of awareness of EMS, especially in the private sector. If need be, some technical support either from ISO (if available) or from other donor agencies could be solicited for gradual implementation of EMS more by self-realization and inducement than by regulation and direction.

Fiscal and trade policies are the two primary mechanisms through which Nepal implements the necessary provisions of the various trade-related agreements. As part of the liberalization process, Nepal has already implemented far-reaching fiscal and trade reforms to stimulate trade and industry on a competitive basis. While the reform measures so far implemented are generally in the right direction, more reforms are needed to make the liberalization process effective. A liberal and open economic policy will pay off only when the economy is competitive. Nepalese industries are now finding it hard to compete with imported goods as a result of unauthorized large-scale trade across the long open border with India (even when the Indian manufactured goods are grossly undervalued at the border customs offices). The continuing policy of free and unlimited conversion of the Nepalese and Indian currencies at the officially fixed exchange rate is also facilitating such unauthorized trade.

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