NEPALI STUDENT LEADERS WARN OF MORE "AGITATION

UNCLAS SECTION 01 OF 02 KATHMANDU 001542

SIPDIS

LONDON FOR POL/ GURNEY
NSC FOR MILLARD

E.O. 12958: N/A
TAGS: PGOV SOCI NP
SUBJECT: NEPALI STUDENT LEADERS WARN OF MORE "AGITATION
PROGRAMING" IF GOVERNMENT DOES NOT AGREE TO FINAL DEMAND.

REFERENCE: (A) KATHMANDU 00652
(B) KATHMANDU 01220

SUMMARY
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1. In meetings with the Nepali Student Union and the Nepal
National Student's Union-the two largest of Nepal's seven
united student unions-backed by the Nepali Congress (NC)
party and the Communist Party of Nepal-United Marxist
Leninist (CPN-UML) respectively, student leaders said they
intended to close down public schools if their demand of
free education up to grade 10 is not met. Originally, in
April, school lockouts were intended to protest allegedly
excessive tuition rates charged by private schools. The
lockouts were lead by the Maoist student organization, the
All Nepal National Independent Student Union-Revolutionary
(ANNISU-R),in conjunction with the other party-affiliated
student unions. Since then, ANNISU-R has split from the
seven party-affiliated unions, which have brokered a
settlement with private schools and the Government of Nepal
(GON). The student unions have not reiterated this demand
for free education publicly and for over a month have been
holding strategy meetings among themselves to decide on the
best course of action. There are currently no meetings
scheduled between student leaders and government officials.
End Summary.

DESPITE GOVERNMENT CONCESSIONS, STUDENT UNIONS STILL
THREATEN TO SHUT DOWN SCHOOLS
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2. Both the Private and Boarding School Association of
Nepal (PABSON) and the GON met with the student unions and
agreed to most of their demands in early July of 2003 as a
result of forced school closures at the end of June. PABSON
agreed to a price ceiling on tuition, more scholarships for
poor students, and greater teacher accountability. The
government agreed to increase teacher quality and
accountability in public schools as well as student-
demanded curriculum changes at the National University.
Despite these agreements, student leaders insisted they
would demand free education up to grade 10 from the
government and were willing to close public schools to
accomplish their goal.

FREE EDUCATION REMAINS FISCALLY UNATTAINABLE
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3. The Ministry of Education budget for FY 03 is about 16
percent of the total GON budget. Post estimates that to
meet the student union demand of free education up to grade
10 the GON would have to allocate 42 percent of the over-all
national budget to the Ministry of Education.


4. Student unions claim the GON has increased security
spending dramatically while neglecting education. In
actuality, from FY02 to FY03 the security budget increased
only 1.3 percent, and the education budget decreased 0.6
percent. Additionally, at the GON's budget presentation on
July 17, 2003 the Ministry of Finance promised a 10 percent
decrease in the security budget of FY04. This 10 percent
decrease would be held in an emergency fund in case the
ceasefire breaks. In any case, even if the reduction in
security spending were realized, there would still not be
sufficient funds in the budget to provide education to all
students up to grade 10.


5. On, July 17, the Director General of the Department of
Education stated publicly that the Ministry would not have
enough funding to provide free education to grade 10. He
said the government was working on a compromise acceptable
to the student unions, having met all their other demands.

STUDENT LEADERS DISTANCE THEMSELVES FROM VIOLENCE AND
MAOISTS
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6. In meetings with Embassy intern, student unions
distanced themselves from the Maoist student group, the
ANNISU-R, and stated that they currently have no affiliation
with it. (Note. In April 2003, during student-led protests
over petroleum price increases, the ANNISU-R joined the
seven student unions in their agitations. The strikes
resulted in the burning and looting of a National University
building and the shooting by police of one student leader
(Ref A) End Note). Both student groups denied being
involved in the burning or looting of any buildings. While
the student unions disavowed past violent acts, the acting
president of the Nepali Student Union said, "The Nepali
government does not listen; it listens only when people take
to the street. Sometimes you have to burn tires to get
their attention."

STUDENT UNIONS' AFFILIATION WITH POLITICAL PARTIES
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7. While student unions claim to operate independently of
political parties, the UML affiliated student union admitted
that all decisions were cleared through UML party leaders.
The NC affiliated student union admitted that in addition to
clearing action programs and protests through NC party
leaders, they periodically received funding from the NC for
rent and other union related expenses. There is little
effort to conceal this direct partisan association.

COMMENT
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8. The student unions' demands regarding educational
funding continues to represent an attempt to demonstrate
political muscle rather than a true concern for the welfare
of poor students (Ref B). The student unions' scheduled
school lockout in June was moved up a week in order to
coincide with the 5-party protest against government
"regression" and the appointment by the King of Surya
Bahadur Thapa as Prime Minster.


9. While free education until grade 10 is currently an
unrealistic option, there are other important educational
issues that should be addressed at the national level. Only
15.8 percent of current Nepali teachers have adequate
teaching credentials. According to the 2001 national census
only 81 percent of school age children are enrolled in
school and only 60 percent finish grade 5, (the equivalent
of US primary education). Because the political parties
remain outside the government, the parties and their student
unions are able to act with a degree of impunity, making it
possible for them to militate for irresponsible and
unattainable demands on the government.

MALINOWSKI