IT application to boost aircraft safety

The European Aviation Safety Agency (EASA) has welcomed the Civil Aviation Authority of Nepal (CAAN) to be part of the Safety Oversight Facilitated Integration Application (SOFIA), a new EASA IT application that will enable CAAN to reorganise its processes and streamline its technical tasks.
An EASA team is performing the first kick-off mission during April 25-27. More implementation sessions will follow during the course of 2012.
The SOFIA in its initial version includes in full or part the safety oversight management as described in the International Civil Aviation Organisation (ICAO) annexes for the safety concerns linked to personnel licensing, operation of aircraft, aircraft nationality and registration marks and airworthiness of aircraft.
A module for examination results, aircraft inspections and reporting, as well as an elaborate work flow system, alert and tracking system are also part of the SOFIA application that enables a feasible solution to support a partner authority and/or an agency to streamline and automate its safety oversight processes, in order to become more effective and efficient.
Since its introduction SOFIA generated a lot of interest from various organisations from different parts of world. Indeed, it continues to be an appealing project for many authorities, as numerous new requests for information and wishes for implementation are continuously being received on a regular basis by EASA.
CAAN has recently joined the programme and belongs next to CAA Sri Lanka to one of the first South Asian civil aviation authorities that have entered into a close working relationship with the European Aviation Safety Agency to enable a successful implementation.

Infrastructure bottleneck hits trade with China

Experts have suggested the government to strengthen necessary infrastructure like roads and transport arrangements, customs capacity, container yards, quarantine facilities and better technology to boost exports to China.
Apart from supporting the increased production of identified export-potential products, the government must reduce administrative delays ––arbitrary, non-transparent, discretionary and vague policies at the China border, said former senior economic adviser of the Ministry of Finance Tula Raj Basyal presenting the findings of the Nepal-China Trade Study at the Public-Private Dialogue organised by South Asia Watch on Trade Economics and Environment (SAWTEE), in association with the Ministry of Commerce and Supplies, and Nepal Economy, Agriculture and Trade (NEAT) Activity/USAID, here today.
The government's target to increase exports and reduce deficit flopped miserably, he said, adding that Nepal’s export to China has deteriorated at an alarming rate during the past decade. "The government needs to take urgent steps to reverse the trend."
Despite a huge potential of the large Chinese market, the domestic private sector has been unable to reap benefits due to the lack of quality products and less contacts, cooperation and collaboration, he added.
The report also features Nepal’s top potential products to China, critical trade barriers and supply-side bottlenecks.
Speaking on the occasion, executive chairman of SAWTEE Dr Posh Raj Pandey said that Nepal has not been able to capitalise on China’s growing influence in the global economy by strengthening Nepal’s trade with China. "Lack of information and knowledge about trade related matters has also been a key challenge," he said, adding that Nepal's widening trade deficit with China needs to be bridged by improving trade capacity.
Meanwhile, former Nepali ambassador to China Tanka Karki attributed the low export to China to 'behind-the-border' factors like massive labour outflow and capital flight. "Buddhism-related goods like statuettes and wooden handicraft products have an extremely high potential in China, besides other products like flowers and fruits," he said, adding that the proposed railway extension to Nepal border from Shigatse holds immense potential for improving Nepal’s future export performance with China. "Though Chinese tourist arrivals have been encouraging in the last two years, Nepal should also focus on attracting foreign direct investment from China," he suggested.
Similarly, joint-secretary at the Ministry of Commerce and Supplies Naindra Prasad Upadhyaya argued that besides products exhibiting a positive trend in Nepal’s exports to China, special attention should be given to agriculture and primary products like poultry and meat products that are losing the market in China due to its strict quarantine requirements.
"Accreditation and upgrading of the present lab facilities is key to solving the current problem," he said, suggesting a diversification of the export basket according to China’s market demand.
"The trade deficit with China is exacerbated by Nepal’s import of high-value goods and export of low-value goods," said vice president of Nepal-China Chamber of Commerce and Industry Pancha Ratna Shakya. "Air-connectivity, besides road connectivity, is equally important, especially with regards to exporting high value-added goods to China," he added.
China's share in Nepal's international export stood at 1.4 per cent and import stood at 11.7 per cent in fiscal year 2010-11.
Between 2003-04 and 2010-11, Nepal's average annual growth rate of trade deficit stood at 21.9 per cent — export growth at 2.6 per cent and import growth at 16.4 per cent — in global trade compared to a growth of 27.1 per cent — export decline at 12.9 per cent and import growth at 23 per cent — with China.

Demand-supply gap in labour market hits enterprises

Over 1,000 Nepali youth leave the country everyday in search of greener pastures and local enterprises are finding it difficult to hire skilled and semi-skilled manpower to expand their businesses.
"There is a rising demand for both low and medium skilled workers in the market but medium and micro enterprises have failed to attract the youth due to low salaries — less than Rs 6,000 — and also due to its seasonal nature," according to 'Labour Market Demand and Supply Survey 2012' conducted in three districts –– Ramechhap, Dolakha and Dang.
"The number of youth wanting to join jobs after completing their training is increasing in recent days," it said, adding that a very few –– around 12 per cent –– enter the job market after the training but over 50 per cent want to take additional training. "Around 75 per cent of the interviewees did not have any idea about who provides training at the local level."
However, the survey stated that over one million people have benefitted from the vocational training conducted outside the formal education system.
Around 50 per cent of micro enterprises said that they could not get skilled manpower and over 35 per cent said they could not find local employees.
"There is a gap between employers and unemployed youths," said Chudamani Bhattarai of the Federation of Nepal Cottage and Small Industries. "Lack of information on labour demand and supply, counselling and placement system has a negative impact," he said, adding that service-based enterprises have low demand for employment but production-based enterprises have a huge demand and they are facing problems like quality control and market networking.
The economy is afloat due to remittance sent by the youth from the Gulf and Malaysia but the economic crisis in those labour markets — like in 2008 — could hit the economy hard as the country is currently receiving remittance which is almost equal to the budget.
In the first eight months of the current fiscal year, the country received remittance worth Rs 225 billion. If the current growth continues, the country will receive remittance almost equal to its budget that stands at Rs 384.90 billion for the current fiscal year.
Lack of employment generation back home and remittance-fuelled consumption is not only hurting enterprises but also the overall economy that is plagued by the 'Dutch syndrome' and "the only way out is to create jobs for the 300,000 youth who enter the job market every year," said chief executive of Rural Microfinance Development Centre Shanker Man Singh.
"The country should promote microfinance to reach out to the poorest of the poor and generate employment at the local level and save the economy. Access to finance will help them lift their living standard," he said, adding that the centre is ready to pour in more resources to generate employment.
However, the survey revealed that over 50 per cent of the households spent their loans on consumption and very less was used to start or expand businesses. "And agriculture is still the major source of income for over 60 per cent of the households," it added.
The survey was conducted among youth aged between 15 and 40 by the Federation of Nepal Cottage and Small Industries (FNCSI) in collaboration with PlaNet Finance under the Yuwaccess Project.

ADB Assistance to Developing Asia Tops $21.7 billion in 2011

The Asian Development Bank (ADB) approved $21.72 billion in financing operations last year, a 14.5 per cent increase on ADB’s previous year’s financing, according to its 2011 Annual Report, released ahead of the organisation’s 45th Annual Meeting of the Board of Governors, to be held on May 2-5 in Manila, Philippines.
"Poverty reduction remains the greatest challenge for developing Asia and the Pacific,” ADB President Haruhiko Kuroda said. “Although significant progress has been made in reducing income poverty, large pockets of deprivation remain, and disparities within and across countries continue to grow.”
Nearly 1.8 billion Asians live on less than $2 a day. Low-income countries are struggling to sustain economic growth and reduce poverty, and a substantial proportion of the region’s poor today live in middle-income countries.
To make the process of economic expansion more conducive to reducing poverty, ADB focuses on three primary strategic agendas: inclusive growth, environmentally sustainable growth, and regional integration. ADB supports its developing member countries in pursuing these strategies with all the instruments at its disposal – from project finance and technical assistance to knowledge products and policy dialogue.
Of the financing total, $14.02 billion came from ADB’s ordinary capital resources and Special Funds, and $7.69 billion from cofinancing partners. Official cofinancing increased by 13.2 per cent to $3.5 billion, while commercial cofinancing grew sharply from $2.3 billion in 2010 to $4.2 billion in 2011.

Supporting rural artisans to promote employment

The Japan Social Development Fund has agreed to provide a grant of $2.6 million to Poverty Alleviation Fund (PAF) to enhance the opportunities and share of poor rural artisans in the crafts and cultural market.
"The innovative project aims at addressing a root cause of unrest and distress by enabling the beneficiaries to access sustainable livelihoods by strengthening their traditional skills and make inroads into mainstream markets," vice chairman of Poverty Alleviation Fund Janak Raj Joshi said at a project launching ceremony here today.
The project will be initiating a chain reaction for the development of ancillary micro industries — natural dyeing units, metal workers and minor forest produce and generate employment to complement and support the establishment of artisan clusters.
"The pilot project will test a new model for improving the livelihoods of the most vulnerable communities in politically sensitive and lagging regions that depend on the craft sector for their livelihoods," he added.
The project will be implemented in nine districts — Myagdi, Gorkha, Tehrathum, Rupandehi, Dhanusha, Lalitput, Bajura, Dailekh, and Kapilbastu — and seeks to improve the livelihood of the internally displaced, landless and vulnerable communities, poor women and differently abled, whose lives depend in the cultural industry.
The World Bank is the administrator of the grant fund while the fund is the implementing agency of the project.
Japan Social Development Fund is an official development assistance programme administered by the World Bank on behalf of the government of Japan.
The four-year-long scheme 'Making Markets Work for Conflict Affected in Nepal' intends to bring opportunities for 8,000 beneficiaries, who are, despite being highly skilled, forced to migrate to the urban centers as laborers and un-skilled workers.
The project has four components — Cluster Development and Capacity Building, Community Cluster Fund, Marketing and Promotion and Project management, Monitoring and Evaluation, and Knowledge Management.
"Through this initiative, we are pleased to work in promoting and support the empowerment and participation of women, vulnerable groups and young people in the economic and social life of their communities and provide employment opportunities at the local level," said Japanese ambassador to Nepal Kunio Takahashi addressing the launching programme.
Senior Economist at the World Bank and Task Team leader of Poverty Alleviation Fund project Dr Gayatri Acharya, on the occasion, said that the grant would focus on the most disadvantaged and conflict affected districts where there is high youth unemployment but traditional skills that can be supported. "The model, if successful, would have a 'demonstration effect' and could be scaled up through the fund," she added.
By partnering with and tapping into the increased market awareness of successful non-governmental organisations and artisans, the project aims to change the generally low design variety and low quality features of the local craft market into one that rural communities can rely on for higher earnings and recognition of their traditional skills.
National Planning Commission secretary Yub Raj Bhusal, chief representative from Japan International Cooperation Agency (JICA) Mithuwoshi Kawasaki and the fund's executive director Raj Babu Shrestha also highlighted different aspects of the initiatives in the programme.

ADB assures continued support

The Asian Development Bank (ADB) has appreciated Nepal’s serious efforts and recent progress towards concluding the peace and constitution drafting process that could be the stepping stone for the economic development.
"The conclusion of the challenging peace and political transition process will pave the way for the government to focus closely on its economic development and reform agendas to put Nepal on a much faster and sustainable growth path," Asian Development Bank vice president of operations Zhao Xiaoyu said, while returning from his two-day visit to the country today.
Raising the living standard of the country’s very diverse population is critical to establish lasting peace and stability, and ADB stands ready to support the government," he added during the meeting with Prime Minister Dr Baburam Bhattarai today at the premier's office.
Zhao also appreciated the steady and fast progress in reducing poverty in the recent years. He expressed optimism that Nepal would meet a majority of the Millennium Development Goals (MDGs) by 2015 including those on poverty, education, access to clean water supply, and child and maternal mortality. He also expressed ADB’s commitment to working closely with the Nepal and other stakeholders in helping to further reduce poverty and promote inclusive growth for all Nepalis.
Zhao also sought active participation of the government in formulating ADB’s new Country Partnership Strategy (2013–2017) for Nepal. "ADB would seek to respond to Nepal's critical development needs, emerging opportunities, and priorities," he said. "In this context," he emphasised the need to urgently address infrastructure deficits of power, transport, and water, by establishing enabling policy environment, building capacities, and exploring innovative approaches such as public private partnership.
"It will stimulate private sector investments, and create much needed employment opportunities," he said, underscoring the need for inclusive and sustainable growth for the diverse population.
"It is key to expedite implementation of ongoing projects by strengthening institutional capacities and systems, to demonstrate effective aid utilisation and draw increased assistance from development partners including ADB," Zhao added.
He also introduced ADB’s new director general for South Asia Juan Miranda to the government. Miranda assumed office in April. He oversees the operations of seven divisions within the Department – transport, energy, urban services, financial sector, social development and social services, agriculture and agribusiness and climate change. Prior to this, Miranda was the director general for Central and West Asia Department. He has a long standing experience in project and corporate finance, with an emphasis on infrastructure, selected public services, and utilities.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive and environmentally sustainable economic growth and regional integration.
Established in 1966, it is owned by 67 members – 48 from the region. In 2011, ADB approvals including cofinancing totaled $21.7 billion.