Thursday, 3 July 2008


Nepal Following China's Economic Path

By Russell Hsiao July 3, 2008
Jamestown China Brief

Two years following the peace agreement that brought an end
to 11 years of Maoist insurgency against government forces
in Nepal, Girija Prasad Koirala, Nepal’s interim prime
minister, has resigned on June 26, paving the way for a
Maoist-led government under Communist Party of Nepal
(Maoist) Chairman Pushpa Kamal Dahal (also known as

In an exclusive interview with Nanfang Daily, a Chinese
newspaper based in Guangdong province, incoming Prime
Minister Prachanda emphasized that Nepal’s backward economy
is the most pressing challenge: “Without economic
development, it will be difficult to maintain social
stability.” Prachanda went on further to chide
Western-style capitalism and praised China’s model of
economic development as one that Nepal will emulate. “We
will build special economic zones like China,” Prachanda
said. “The special economic zones stimulated China’s
economic development, and we want to learn from China.
China’s experience is really helpful for us.” In the
interview, Prachanda emphasized the geographic proximity
between China and Nepal, and the high respect that Nepalese
people have for China and Chinese people. “For Nepal’s
national independence, it is critically important for Nepal
to maintain intimate relations with China” (Nanfang Daily,
June 30).

Wang Hong-wei, a professor at the Institute of Asia-Pacific
Studies in the Chinese Academy of Social Sciences, said in
an interview that “China knows very well that India wants
to turn Nepal into a second Bhutan or Sikkim. Moreover,
Nepal may enter the process of ‘Sikkim-isation’ … But,
China must not let this situation occur.” Wang added: “But
I think the time has not yet come for China to play an
intervening role for that because the feeling of patriotism
is still alive in Nepal” (, June 30). Wang
concluded by saying that “maybe he [Chairman Prachanda]
will come (to China) after becoming the prime minister … I
think he will visit India first and then only China after
becoming the prime minister” (eKantipur, June 30).

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