Multilateral Aid Review: Assessment of the United Nations Industrial Development Organisation

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UNIDO is a specialised agency of the United Nations that promotes industrial

development for poverty reduction, inclusive globalisation and environmental

sustainability. It provides technical support to member states. It has 173

member states with representation in 44 countries.

UNIDO’s mandate aims to promote adherence to international environmental

and social standards and norms that are required by international trading

markets. It assists developing countries to meet these standards. Normative

activities are complemented by programmes that aim to reduce poverty

through development of sustainable industrial activities. Inclusive

globalization and environmental sustainability are priority focus areas, with

UNIDO acting as a global forum to generate and disseminate industry-related

knowledge. UNIDO’s comparative advantage is its assistance to Small and

Medium Enterprises (SMEs), which account for a substantial proportion of

Gross National Index (GNI) in Least Developed Countries (LDCs) and Middle

Income Countries (MICs).

The UNIDO governing body comprises a General Conference (173 Member

States), Industrial Development Board (53 Member States) and a Programme

and Budget Committee (27 Member States). The UK is represented in all

UNIDO China chief likely to face action - acted without permission of UNIDO HQ entering into legal contracts with 3rd parties

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PURNA BASNET

HONG KONG, Aug 21: The headquarters of United Nations Industrial Development Organization (UNIDO) has indicated possible action against chief representative of the UNIDO office in China following the disclosure that UNIDO had not entered into any valid contractual agreement with the Asia Pacific Exchange and Cooperation Foundation (APECF) to undertake development activities in Lumbini, the birthplace of Lord Buddha.

“Disciplinary action may be taken against the chief representative of the UNIDO office in China,” said a source at the UNIDO headquarters on Saturday.

The preparation for action indicates that Hu Yuandong, chief representative of the UNIDO office in China, had reached an agreement with the APECF on providing “institutional assistance” for Lumbini project without first consulting the UNIDO´s Vienna-based headquarters.

Yuandong had reached an agreement with Xiao Wunn, executive vice-chairman of the APECF, on providing technical cooperation for Lumbini Special Development Zone in Nepal on July 15.

But the UNIDO headquarters had clarified that it had not entered any deal as such. “UNIDO has not entered into any valid contractual agreement with the APECF, and therefore is not involved in any activities related to the Lumbini Special Development Zone in Nepal,” said Mikhail Evstafver, UNIDO Advocacy and Communication Coordinator, said in a statement on Friday.

Following the new development, an official from the APECF indicated that the US$ 3 billion project has come to an end. “What we had tried to do is to promote the Lumbini project by coordinating the investors. But the investors have been disappointed as the project was entrapped into a political hostility among various forces in Nepal,” a Beijing-based UNIDO official told Republica.

Meanwhile, the APECF has removed the name of former crown prince Paras Shah from the list of its co-chairmen on its website in English version.

Earlier, Shah was introduced as a co-chairman of the APECF in the website. “He is no longer a vice-chairman of the Foundation. The reason behind that is a political one,” the official said. But the official didn´t clarify whether it was Shah´s voluntary exit.

A Chinese NGO signs secret deal with UNIDO worth $3 Billion to develop Lumbini into a "Buddhist Mecca" (Nepal Maoist inked the secret pact)

SCANDAL AT UNITED NATIONS

Nepal Maoists inked secret pact with Chinese NGO

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By Sudeshna Sarkar,Kathmandu, Aug 9: A controversial deal between a Chinese organisation and a UN agency to develop the birthplace of the Buddha in southern Nepal, that was repudiated by a top official, was actually the outcome of a secret pact with the Himalayan republic's ruling Maoist party.

Though the Maoists, the dominant party in the coalition government, are keeping mum about a proposed $3 billion project to develop Lumbini, the sacredgarden city where the Buddha was born, their own leaders agreed to the deal and also inked it, according to information provided by the Chinese ambassador to Nepal, Yang Houlan, to Nepal's ethnic politicians Tuesday.

As the ambassador Tuesday paid a courtesy call on Mahantha Thakur, chief of the Terai-based Terai Madhes Loktantrik Party, he was asked about the controversy by Hridayesh Tripathi, an influential member of parliament from the party.

The controversy was triggered last month when the Chinese media reported that a Hong Kong-based organisation, the Asia Pacific Exchange and Cooperation Foundation, had signed a $3 billion deal with the UN Industrial Development Organisation to develop Lumbini into a "Buddhist Mecca", complete with an international airline and rail tracks.

The reports were rebutted by the then cultural secretary of Nepal, Modraj Dotel, who said an agreement without the host country's presence was invalid and that Nepal would not allow it to take place.

Lumbini is managed by the Lumbini Development Trust that falls under the culture ministry. The Trust also said it had no knowledge of the deal.

However, the Chinese ambassador told leaders of the Terai party Tuesday that the tourism ministry of the current government had signed a memorandum of understanding with the Foundation.

"The envoy said the finance, foreign and culture ministries were not informed about the MoU, which triggered the controversy," Tripathi told IANS.

"He also said the Foundation was an NGO and its co-chairman was Maoist chief Pushpa Kamal Dahal Prachanda," Tripathi added.

The tourism and civil aviation ministry is headed by Maoist leader Khadga Bahadur Biswokarma.

The revelation indicates that the Maoist leaders were complicit in the deal but kept the government in the dark as well as held their peace when the controversy erupted.

To add to the mystery surrounding the Foundation, Prachanda left for Malaysia Sunday, saying he was attending a conference hosted by it.

However, the Foundation's top officials are currently in Nepal and have already visited Lumbini.

Despite the controversy, they are not ready to abandon the deal.

"The Chinese ambassador said that the Foundation was ready to coordinate with the Nepal government and the master plan for the development of Lumbini drawn up by Japanese architect Kenzo Tange," Tripathi said.

The Nepali politician, who is also member of a parliamentary committee that reviews the progress of pacts, said he had asked parliament chairman Subash Nembang, who heads the body, to call a meeting soon to discuss the controversy.

The Foundation's credibility came under further fire after the discovery that Nepal's deposed playboy crown prince Paras Bikram Shah is also a co-chairman and that its office address in Hong Kong was reportedly a shop.

--IANS