- The royalty mechanism
- Equity investment: Local share offers in hydropower projects
- Support for local livelihoods: Employment and training
- Investment in community development and local infrastructure (including rural electrification and irrigation/water-related benefits)
- Environmental enhancement activities
Month: June 2016
Freedom of Expression in the U.S. and Nepal: a Comparative Constitutional Analysis
Introduction
I am hardly an expert on U.S. constitutional law (“Con Law,” as we called it in law school). I have studied under several well-respected Con Law professors, I have some friends who are aspiring international Con Law experts, and I read a lot of blog posts written posted by some of the most renowned Con Law experts in the U.S. I am not in the same league as any of these people. As much as I am a novice in U.S. Con Law, I am even more in the dark about Nepal’s Constitution. It is fundamentally a different legal regime and here I will attempt to explain how.
I am not a Nepal-qualified attorney, so my understanding of Nepal’s Constitution can only be incomplete. I suspect, from my conversations with Nepalese lawyers and law students, that as I continue to carefully read Nepal’s Constitution this will inspire me to write other posts as well. I urge my readers to use the comments section below to suggest any necessary corrections or to ask me specific questions. I also encourage healthful debate. If you do not like that I have written about Nepalese laws, then read no further. By reading on, you hereby consent to my right to express myself here (this website’s server is in Texas).
I wrote this post after some instigation by interested legal scholars in Nepal and I thank them for their insistence. I fully intend this post as comparative and not judgmental. It begins with a word on comparing constitutions, then it briefly introduces the concepts of negative and positive rights, examines natural law as part of U.S. constitutional law and positive rights as found in Nepal’s constitution, then it attempts to analyze these two legal philosophies with regard to constitutional protections of the freedom of expression of people in the U.S. and Nepal, and briefly concludes with a word about the enormous changes that are quietly underway in Nepal’s rapidly developing legal system.
The Tailored Suit: Comparative Constitutional Law
When comparing the U.S. Constitution with Nepal’s, we must first accept that one document is not necessarily better than the other. My law school colleague and adjunct professor of law at Howard University in Washington, DC, Waris Hussein, is currently writing a doctoral thesis comparing supreme court judicial review in the U.S., India, and Pakistan. Recently, Waris came to Nepal as a guest of the U.S. State Department to give a several lectures, both in English and Hindi, about Nepal’s new charter. Waris explained the uniqueness of these documents to me in this way: a constitution is like a tailored suit.
Just like people come in all different shapes and sizes (fat, skinny, tall, short, etc.) so do nations come with different needs for its governing document. Ask any tailor, or well-dressed man for that matter, and they will tell you that one size does not fit all. This is not a simple statement about the physical features of a country’s land, but it is a grander statement on the uniqueness of each country in the world. Each has its own needs and must balance the people’s hopes and desires with existing societal norms, military prowess, economic interdependence, and international realities. Pakistan, for example, has had three constitutions. After the first two did not fit, these were sent back for alterations; perhaps even the fabric changed. A well-fitting constitution requires careful measurement, trial-fittings, and—above all—alterations from time to time. Maybe even you have noticed how your pants feel a bit tighter after the holidays are well-celebrated. So it is with countries and their constitutions.
In short, this means that there are no easy answers when it comes to such important documents. There is no constitutional expert in this world, foreign or otherwise, that can present to Nepal an off-the-rack constitution that would fit Nepal perfectly. All the measurements, the very fabric of the constitution, and its alterations must come from the Nepalese people themselves to ensure the best fit. Nepal must try it on. If one arm is too tight, if the buttons do not reach, or if one leg is slightly longer than the other, then alterations must be made. To take this analogy a step further than even my friend Waris, I will add that these alterations must be made while the country is still wearing the suit. If this sounds difficult that is because it is.
Some Background on a Legal Regime that is Familiar to Me
The United States of America is a former colony of the British Empire. Indeed, the American colonies formed part of the imperial holdings of the first British Empire while India, an area much more familiar to Nepal, formed a part of its second. It is out of this context that our own country was born and is best understood. The colonists had serious grievances with the British king and how he was ruling the American colonies. In 1776, these grievances were most articulately expressed in the Declaration of Independence: independence that was successfully defended both during the American Revolutionary War and the War of 1812.
The newly liberated colonists failed in their first attempt to set up a working central government. Each colony became a “state” and essentially governed as an independent country. So upset were these early Americans with the absolute power of the king and so distrustful of centralized power as wielded by their former king, that our first organizing document—the Articles of Confederation—gave almost no power to its central government. It could not raise its own army, it could not raise taxes, and it could not issue currency. It was a disaster.
In 1787, with the mandate of only making some necessary revisions to the Article of Confederation, the Continental Congress instead formulated an entirely new document: the U.S. Constitution. This document contemplated a strong federal government constrained by carefully delineated powers and an internal check and balance system between three different branches of government. The strongest branch was the legislative branch, or Congress, which was split into two houses. The upper house had an equal number of senators from each state (two) and the lower house had a number of representatives from each state according to that state’s proportion of the entire country’s population. That required a census. It could also run a postal service, regulate commerce between the states, raise an army, and make war. The executive branch, a directly-elected president, was given control of the army, foreign affairs, and enforcing the laws made by Congress. Finally, the Constitution vested judicial power in a supreme court. You can read it yourself in the first three articles of Constitution. These are so concise that you can read all three in one sitting.
In 1791, after a national campaign for its support and the inclusion of the first ten amendments, known as the “Bill of Rights,” ensuring the rights of the individual states and the people, enough states ratified the Constitution that it became the supreme law of the land.
AC/DC: Positive or Negative Rights
The United States Constitution is a negative rights charter, whereas Nepal represents a positive rights charter. By negative rights, I mean the Bill of Rights essentially lists what the government cannot do. By positive rights, I mean Nepal’s Constitution affirmatively grants rights to its citizens. Again, one view is not superior to the other. They may even reach similar conclusions despite the different paths they take before arriving there. However, one is more familiar to me as an attorney than the other, so I am biased. By way of illustration let us compare the freedom of expression in the two charters.
The text of U.S. Constitution’s First Amendment regarding free of expression is short:
Congress shall make no law . . . abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.
Here, the Constitution is not bestowing any rights on the people or even powers on the government for that matter. If anything, it seems the Constitution is actually taking power away from the government to legislate in particular areas. But there is more to it than that; it necessarily assumes that the people already have certain rights that are independent of the Constitution. The First Amendment is merely acting as a safeguard against governmental encroachment on preëxisting rights.
This then is what people mean when they talk about First Amendment freedom of expression. Step one in any legal analysis of whether someone’s freedom of speech has been violated is: has there been government action? If the government is not acting, then it is not a First Amendment issue. Has Twitter deleted your anarchist tweets? That sucks, but it is not a First Amendment issue. Twitter is not the government.
Thus the American people are not dependent on the Constitution to give them their rights. Instead they are dependent on the Constitution to constrain the state from taking away rights that they already have. Where then, do the people’s rights come from?
The answer is found in the other seminal document from the founding of the country: the Declaration of Independence:
We hold these Truths to be self-evident, that all Men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness . . .
(emphasis added). This and the reference to the “Laws of Nature” in the previous paragraph give us a pretty good sign of where these rights come from. Black’s Law Dictionary (9th ed.) defines “natural law” as:
A philosophical system of legal and moral principles purportedly deriving from a universalized conception of human nature or divine justice rather than from legislative or judicial action; moral law embodied in principles of right and wrong.
That means the people’s rights come from God. In more secular terms, this means either the laws of nature as best understood by humans or as the unwritten rules, traditions, and customs that humans have developed over time.
Now let us take a look at Nepal’s Constitution on the freedom of expression:
17. Right to freedom:
(1) No person shall be deprived of his or her personal liberty except in accordance with law.
(2) Every citizen shall have the following freedoms:
(a) freedom of opinion and expression,
(b) freedom to assemble peaceably and without arms,
(c) freedom to form political parties,
(d) freedom to form unions and associations,
(e) freedom to move and reside in any part of Nepal,
(f) freedom to practice any profession, carry on any occupation, and establish and operate any industry, trade and business in any part of Nepal.
Section 17 goes on to qualify these freedoms by allowing the parliament to legislate in a way that will prevent the undermining of the sovereignty, territorial integrity, nationality, and independence of Nepal and the harmonious relations of its people.
Section 17(1) is written in the negative. Although it does not expressly mention the government, we can assume it. According to Black’s Law Dictionary (9th ed.), “personal liberty” means “one’s freedom to do as one pleases, limited only by the government’s right to regulate the public health, safety, and welfare.” The text’s qualification, “except in accordance with law,” seems to bear out this meaning. Unlike Section 17(2), it does not use the word “citizen.” The protection against deprivation of personal liberty seems to apply to equally to everyone in Nepal. This is certainly case in the U.S. with regard to personal liberty. The Fourteenth Amendment applies to all persons “without regard to any differences of race, of color, or of nationality.”
By contrast, Section 17(2) is written in the positive. It says “every citizen shall have . . .” (emphasis added). This is “positive law,” defined in Black’s Law Dictionary (9th ed.) as “a system of law promulgated and implemented within a particular political community by political superiors . . . .” But who is the “political superior” here and how did they derive their authority to say which rights Nepali citizens should have?
The answers are that (1) the political superior is the Constituent Assembly and (2) it is the Nepali citizens themselves that granted it the power to decide their rights. This we can see from the Constitution’s Preamble:
We, the Sovereign People of Nepal, . . . Internalizing the people’s sovereign right and right to autonomy and self-rule, . . . Do hereby pass and promulgate this Constitution, through the Constituent Assembly, in order to fulfil the aspirations for sustainable peace, good governance, development and prosperity through the federal, democratic, republican, system of governance.
Thus the Nepalese people, through their Constituent Assembly, enabled the Constitution to grant certain rights to citizens.
Section 17(2) uses the word, “citizen,” when listing their rights It does not mention which rights, whether these rights or others, allowed to non-citizens. It is silent in this regard. It also does not say whether citizens of Nepal have other rights not specifically mentioned here. It is unclear where the margins are.
Contrast this with the language of the U.S. Constitution’s Ninth Amendment:
The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.
The U.S. Bill of Rights is not an exhaustive list of all rights accorded to people in the U.S.
Finding out where the margins is a task left to the courts in Section 128(2): “the Supreme Court shall have the final authority to interpret this Constitution and laws.” This includes other enacted laws as we can see from Section 1 of Nepal’s Constitution: “Any law inconsistent with this Constitution shall, to the extent of such inconsistency, be void.”
Closing Thoughts: Thinking Beyond the Constitution
When asked, most Nepalis that I talk to understand that all of Nepal’s laws are being rewritten so that the laws will conform to the new constitution. Yet I still wonder how many know exactly who is writing their new laws. Perhaps the people think that their Constituent Assembly is busily drafting the statutes. While it is true that the CA or a parliament will eventually have to vote on these laws, the people’s representatives are not writing them. I hope at the very least that they will read them: something that is even lacking in the U.S. Congress at times.
Whenever the laws of the United States stray so far from the founding document that a dispute ends up at the Supreme Court, some justices like to remind us what the document likely originally meant. They offer us an illustration of how the Constitution should be interpreted as protecting the people from the unrestrained power of the central government and not read as increasing the power of the central government until it becomes like a king. Other justices argue instead that the document must be interpreted according to modern societal needs.
It is not a shame to amend a constitution to make it a more inclusive document. The U.S. Constitution has been amended twenty-seven times. Some amendments were necessary for its ratification by the individual states, some amendments repealed earlier amendments, and some amendments were necessary to help advance the vision of equality enshrined in the Declaration of Independence. The Preamble of the U.S. Constitution lays this out as one of its primary goals: “to form a more perfect Union.” The U.S. is far from perfect and it has never claimed to be so. It is our sincere hope as Americans, however, that we have made some significant strides in the right direction.
The Future Battery of South Asia: Nepal Power Investment Summit 2016
There are a lot of people interested in ending load-shedding in Nepal and a lot of people interested in making money in Nepal’s hydropower sector once it gets off the ground. For those uninitiated to the realities of living in Nepal, each part of the Kathmandu valley faces 12-14 hours, sometimes more, without electricity as the National Electricity Authority (NEA) attempts to share the load of this precious resource evenly among the area of the greater metropolitan area. This is what is known as “load-shedding” here. While Nepal currently produces only 840 MW of energy from all sources, it boasts of a potential of at least 40,000 MW from hydropower alone. Neoventure and Nepal’s Energy Development Council organized the “Nepal Power Investment Summit 2016: Nepal—The Future Battery of South Asia.” The event was sponsored by Aggreko, Norwegian Geotechnical Institute (NGI), DFDL Tax and Legal, Nabil Bank, NMB Bank, and the Hydroelectricity Investment and Development Company (HIDCL). There were attendees from China, the U.S., Canada, Bulgaria, Norway, India, Bhutan, Slovenia, Czech Republic, Thailand, Vietnam, France, Austria, the U.K., and elsewhere.
Pre-conference Day
DFDL organized the first workshop of the conference. David Doran, Audray Souche, Robert Fitzgibbons, all of DFDL, and Priyadarshani Sherchan, of Nepal’s Pioneer Law Associates, were the panelists. The DFDL lawyers present various models of hydropower development primarily from the Mekong region, including Laos, Cambodia, Thailand, Vietnam, and Myanmar. Ms. Serchan picked apart Nepal’s 2016 Energy Crisis Policy Paper and the recent Budget 2073 speech. She was aided in this respect by several members of the audience which was filled with lawyers from Neupane Law Associates, Sinha-Verma Law Concern, and a sizable contingent from my own firm: Gandhi & Associates, as well as other specialists and interested parties in hydropower sector, such as the Norwegian Embassy.
The Laos model, which Mr. Doran was to present in more detail on the following day, is particularly interesting. It evolved from an entirely private-sector approach with more than 90 percent of the energy from its early 1990s projects exporting to the Electricity Generating Authority of Thailand (“EGAT“). Today, the Lao PDR is in a position to construct hydropower plants entirely for domestic consumption and no longer grants wholesale exemptions from Laotian laws and provides far fewer other concessions to international developers.
It was also here that I encountered my first of several Odd Hoftun connections. Odd Hoftun, an engineer-missionary who grew up on a hydropower plant in Norway, first came to Nepal in the 1950’s to help UMN build a hospital in Tansen and then dedicated his life to hydropower development in Nepal. In addition to helping to construct three hydropower projects of increasing size (the last was 60 MW), he helped establish the Butwal Power Company, its various spinoffs like the Hydro-Consult, and the Butwal Technical Institute which to this day remains the only apprenticeship-model school for Nepal’s young engineers to learn through hands-on experience. I had recently read his biography published by the Martin Chautari publishing house (which itself was named partly after his son, Martin) shortly before the conference so I was able to recognize his fingerprints and legacy throughout the three days. During the pre-conference workshop, I met Tim Lehane of Gilkes. Mr. Lehane had helped Mr. Hoftun restore and assemble secondhand hydropower parts imported from Norway when hydropower projects had upgraded to newer technology. The original, very serviceable, turbines at the Andhikhola Hydropower Project had first served duty powering Lillehammer before the 1994 Winter Olympics.
Unfortunately, no one from the Government of Nepal showed up for this workshop. This would have added more richness to the interactions with the audience. Throughout the conference there was a noticeable lack of government attendance in the many of the conference’s panels where government officers themselves were not speaking.
Day One
The conference was opened by the Right Honorable Prime Minister K. P. Oli. Her Excellency U.S. Ambassador to Nepal Alaina Teplitz, who recently penned an excellent opinion editorial on Nepal’s economic development, also gave a few words.
During the first panel, the Chairman of the Water Resources and Agricultural Committee of Nepal’s Constituent Assembly Gagan Thapa made an important point about the current state of politics in Nepal. While his own party is currently in opposition, hydropower development is one of the areas that all three of the major parties could agree on and should be vehicle for finding common ground and getting something done.
The first day of the conference was overall very positive, though much of the optimism was sucked out of the room by the last panel of the day which included a Statkraft veteran. Statkraft was finally forced to pull the plug on the USD $1.5 Billion 650 MW Tamakoshi-3 hydropower project after sinking over $12 million into the failed effort. Interestingly, it was not the major earthquakes of last year that forced its withdrawal from the export-oriented project, but the souring of political relations between Nepal and India.
Among the other panelists and presenters of the first day were representatives from the government of Bhutan, which like Nepal is surrounded on three sides by India and the north by tallest mountains in the world and China. Bhutan currently boasts that 99 percent of their people are connected to their national grid (and claims that the ones that aren’t have solar panels). Thought Bhutan has significantly fewer people than Nepal, there are some lessons there to be learned I am sure. The country’s approach is markedly different from Laos, for example, because its official line is that too much international private sector development may affect Bhutan’s Gross National Happiness. Another presenter made deft use of both Nicola Tesla and President Barack Obama quotes.
The first full day of the conference ended in a cocktail party sponsored by Dragon Capital. Dragon Capital has long been interested in Nepal’s clean energy development. One of their latest projects is a complete overhaul of Phnom Penh’s solid waste management. While supporting Cambodia’s in other areas of clean development it was an area they just could not ignore. Like many Asian countries including Nepal, the people litter freely, thoughtlessly throwing their trash wherever and burning it after it piles up too high. Dragon Capital has modernized Phnom Penh’s solid waste management system, replacing the Board of Directors of the management company and hiring a young woman to be its CEO. The new board banished the institutional practice of burning trash, installed GPS units in all of their trucks, and is building an entirely new landfill while taking steps to minimize the ongoing environmental degradation causes by the old ones.
I stuck around long enough to chat with representatives from Bauer and the CEO of InfraCo Asia, a member of the Private Infrastructure Development Group and already involved in providing funds to a couple of projects in Nepal. I also met several Norwegians from companies like the Norwegian Geotechnical Institute and Mulitconsult. I also had a very interesting conversation with the General Manager of Himal Power Limited which manages the Khimti Hydropower Plant with Statkraft.
The absence of local government in Nepal is felt strongly by the major hydropower projects. The Khimti project is a resounding technical success, but not as profitable as perhaps first imagined. Since Nepal has not held any local elections in nearly two decades, major development projects often choose to or end up having to take on added responsibility that would normally be the domain of local governments in many other countries. As part of their corporate social responsibility, the Himal Power Limited (“HPL”) had originally agreed to provide electricity for 1,000 households in the area. They willingly extended this to 9,000 households. HPL also funded local schools and a medical outpost, which is now part of the Dhulikhel Hospital network. When the local Village Development Committees (“VDC”) continued to approach the project with more development concerns, the project decided to create a fund of USD $100,000 a year for the ten closest VDCs (USD $10,000 for each VDC). Representatives from each VDC make up the board which itself chooses which projects to fund.
But this past winter was a particular dry one. When some local villagers ran out of water, they broke into the fencing surrounding the Khimti project and dropped a hose down the 40 meters deep intake shaft and began pumping water out. When HPL approached the Chief District Officer (“CDO”) about about the security breach, government security a right guaranteed to HPL by the Power Development Agreement (“PDA”) signed with the government, the project manager was told no such security would be forthcoming and that HPL should try to find a compromise with the locals. When HPC was finally able to get the Nepal Army, Nepal Police, CDO officers all to sit down together to talk about the security issue collectively, the government officers were only really interested in knowing why the USD $100,000 fund was not routed through them. Eventually, HPL was able to find another source of reliable water for the locals, but at the cost of another USD $50,000. Without a local government in place, the local VDCs effectively became wards of HPL, a private company. Without the benefit of a local government to hold accountable, HPL provides not only its electricity, but also the VDCs basic healthcare, education, and water supply needs. This underscores the importance of resolving Nepal’s federal structure as soon as possible and holding local elections regularly.
Day Two
Day two had its own high-level diplomatic support with Her Excellency Rensje Teerink, the European Union’s Ambassador to Nepal, chairing the talks on renewable sources of energy other than hydropower, such as solar, wind, and biomass.bbIt was during this session that Jimmy Carter’s infamous cardigan even made a cameo. I later ate lunch with the ambassador and representative from the U.S. Government’s Overseas Private Investment Corporation (OPIC), Dragon Capital, and Environmental Resources Management (ERM).
Among the other sessions of the day were representatives of Indian power grid and power trading companies as well as regional players in the power trading sector. The ultimate goal in Nepal is to be in a position to sell excess power during the rainy season and to buy needed power for shortfalls during the dry season when Nepal’s rivers run much lower. Nepal has a long way to go to make this possible, but it would be great to be able to sell beyond India.
The last session was one of the most anticipated by the various suppliers of hydropower machinery and solutions. It was also the most awkward. Various managing directors of various projects in various stages of planning were each given exactly ten minutes to present what seemed to be the culmination of their entire livelihoods. It was clear that many of the presenters, speaking in their third language, were not ready to pare down years of hydropower project experience and preparations into a brisk ten minute walk-through of their pet project’s major opportunities and challenges. Such as it was, they did their best to attract some much-needed funders and suppliers. Each was able to collect several congratulatory handshakes from their peers and handfuls of business cards for their efforts.
Fittingly, the conference closed in darkness. When the NEA closed the program with a vote of thanks to everyone who made the event possible, the conference room experienced one of the NEA’s infamous planned power-cuts: load-shedding. It took over a minute for the back-up diesel generator set to kick on, so the first words of NEA’s closing speech were spoken in the dark and without the benefit of a microphone.