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The popularly elected prime minister resigned his post, due to the refusal of the Royal Army to take part in the conflict.This situation changed dramatically in 2002 when the first session of peace talks failed and the Maoists attacked an army barracks in Dang District in western Nepal.
The government responded to the rebellion by banning provocative statements about the monarchy, imprisoning journalists, and shutting down newspapers accused of siding with the insurgents.
To be effective in this new context, our aid is becoming more innovative and catalytic, leveraging other drivers for development, such as private sector investment and domestic finance.
We are recasting our aid program in light of this new development paradigm.
The Royal Nepal Army was not involved in direct fighting because the conflict was regarded as a matter for the police to sustain control.
Furthermore, controversy grew regarding the army not assisting the police during insurgent attacks in remote areas.
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A strategic framework will guide the re-shaping of Australia’s aid program over coming years.