Bihar shares a 600km open border with Nepal. Right along the Tarai, there are linguistic, cultural and family ties binding the two sides together. In some places the border cuts right through households and farmlands.
Unlike what happened in Uttar Pradesh where the BJP was soundly defeated in the 2024 elections by the INDIA alliance, in Bihar’s election this month the National Democratic Alliance (NDA) that brought the BJP together with the Janata Dal (United) secured 200 of the 243 seats in the state assembly.
In Nepal, we make fun of politicians who want to become prime minister for the sixth time. But Nitish Kumar took his oath of office last week for the tenth time as chief minister in 20 years.
Also unlike Uttar Pradesh, the vote was not polarised along religious lines, signalling a deep transformation of Bihari society and the rising political consciousness of its voters.
The most important change must be the massive participation of women voters. Women did not merely make this election decisive, but altered its very character. A polyphonic social configuration emerged from this election that has broken away from entrenched caste-based vote banks of the past.
In 2006 during his previous tenure as chief minister, Nitish Kumar gave half the representation in local political units to women. Many people ridiculed it at first because there was a tendency for male politicians to bring in their wives to fill the quota.
Even if a woman won, in practice the husband called the shots. But over time competent women leaders emerged at the grassroots.&nbsp;
Just before this election, the Chief Minister Women Employment Campaign provided INR10,000 as the first instalment to 12 million potential women entrepreneurs. Once they start their own enterprises they get INR210,000.&nbsp;
Bicycles were distributed to girl students to improve their mobility, and sense of independence. Such schemes are helping to increase women’s leadership and self-reliance. Bihar’s youth and women are driving change.
Nitish Kumar also used federal investment to improve roads, bridges, electricity supply and irrigation across Bihar (“बिज्ली, सडक, पानी”). The transformation is dramatic for those of us who remember the time when roads on the Indian side of the border were much worse than the highways in Nepal.
CRONY POLITICS
Most of this change is in Patna and the main cities, but nearly 90% of Biharis live in villages. And despite these visible changes, Nitish Kumar has failed to bring about an improvement in the quality of education and healthcare. He has also used patronage with cronies to ensure his political longevity.
With 140 million people, Bihar makes up one-tenth of India’s population. But it is still the poorest state in India with an annual per capita income of $900 — one fourth of the country’s national average. Its main industry, just like in Nepal, is the export of manual labour to richer states in India and to the Gulf.
Bihar has had a chronic problem with kidnapping, and this affects Nepal because many criminals seek refuge on our side of the border.
There is a long tradition of rewarding not only corrupt politicians but also their criminal cronies. The criminalisation of politics and politicisation of crime has sustained Bihar’s economy.&nbsp;
The direct impact of this has always been on the state’s development. As <a href="http://xn--bihars%20economy%20has%20two%20special%20characteristics-xn09a.xn--%20first,%20bihars%20development%20is%20halted%20and,%20despite%20having%20potential,%20it%20lags%20other%20states-wn37e.%20second,%20one%20aspect%20of%20its%20backwardness%20is%20also%20that%20the%20people%20of%20bihar%20have%20lost%20hope%20that%20their%20state%20can%20rise%20in%20comparison%20with%20others%20-%20something%20the%20nitish%20kumar%20leadership%20has%20not%20been%20able%20to%20revive%20in%20the%20last%20twenty%20years.xn--%20here,%20the%20political%20business%20of%20sushashan%20(good%20governance)%20has%20flourished%20a%20lot,%20yet%20it%20remains%20trapped%20in%20the%20same%20fate%20of%20ruktapur-w459iof./" target="_blank">Shekhar Gupta of The Print</a> wrote this month in his column National Interest, one in ten Indians is ‘living a sub-sub-Saharan Africa quality of life’.
A culture of looting has been institutionalised, and the word ‘dacoit’ has entered the English lexicon. Nitish Kumar did crack down on crime, but the kidnapping mafia simply moved to a safer and more lucrative business to become contractors.&nbsp;
Large infrastructure projects are built with federal grants, but the budget is skimmed with politicians and their cronies dividing up the spoils. This must sound familiar to us in Nepal.
Bihar’s economy has grown, but it started out at a low base and the other states of India, especially in the south, have grown much faster — so the gap is widening. The very word ‘Bihar’ within India is synonymous with ‘poverty’ and ‘backwardness’.
This is ironic because Bihar is also where democracy was born, where Gandhi launched his satyagraha against the exploitation of indigo workers, where politicians like Jayaprakash Narayan made upliftment of the poorest his agenda.&nbsp;
The Buddha may have been born in Lumbini, but he preached and attained enlightenment in Bihar. Maoist Naxalites rose up against oppression by zamindars in rural Bihar.&nbsp;
Biharis are obsessed with politics, and the mediasphere is full of opinion and debate about various parties and candidates. But somehow politics has not delivered development.
Bihar’s economy has two special characteristics that are similar to Nepal. First, despite huge potential in terms of natural and human resources and the demographic dividend, development has lagged behind.
Second, Biharis, especially the youth, have lost hope that their state can rise up and catch up with the rest of India. The fact that a ten-time chief minister is back after being 20 years in politics provides even less prospect.&nbsp;
Bihar’s railway network is still more or less what the British left in 1947, and the joke there is that trains stop even at non-scheduled stations if passengers demand. Such stations even have a name: रुक्तापुर. &nbsp;
The train of Bihar’s development also keeps making unscheduled stops at रुक्तापुर.
Chandrakishore is a Birganj-based political commentator who writes this column BORDERLINES in Nepali Times. @kishore_chandra

Chandra Kishore

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Borderlines

Bihar’s elections and Nepal

America’s role in international aid has been turned upside down since January, with institutions shuttered, policies upended, and funding slashed. It is now unclear what lies ahead for American policy, the international aid system, or the world’s poorest. All we know is that a massive gap needs to be filled.
The situation is urgent. The World Bank recently<a href="https://openknowledge.worldbank.org/server/api/core/bitstreams/35bb4b31-e9b0-4a1e-8c6c-df4336558673/content" target="_blank"> </a><a href="https://blogs.worldbank.org/en/opendata/september-2025-global-poverty-update-from-the-world-bank--new-da" target="_blank">revised</a> up its estimate of people living in extreme poverty (on less than $3 per day) to 831 million – about 10% of the global population. Over half of the world’s extreme poor now live in fragile, conflict-affected states, and this <a href="https://press.un.org/en/2025/sgsm22692.doc.htm" target="_blank">figure</a> is predicted to rise to two-thirds in the next five years. Nearly <a href="https://www.worldbank.org/en/news/press-release/2025/06/27/fragile-and-conflict-affected-situations-intertwined-crises-multiple-vulnerabilities" target="_blank">40%</a> of these countries’ populations already live on less than $3 per day, compared to 6% in other developing economies.
The International Rescue Committee (IRC) ran the numbers to determine which countries are most in need of aid. We came up with a list of 13, typified by Sudan, home to the world’s largest humanitarian crisis. While 29% of the world’s extreme poor live in these hardest-hit countries, only 9% of international aid is allocated to them, implying a $35 billion funding<a href="https://www3.compareyourcountry.org/states-of-fragility/donor/0/" target="_blank"> gap</a>.
Since Russia’s full-scale invasion of Ukraine in 2022, Ukraine has become the biggest global aid recipient. Moreover, European countries are increasingly spending funds classified as ‘overseas aid’ on refugee integration at home. These outlays now account for around 14% of the total global aid bill, about the same as is spent on <a href="https://data.one.org/analysis/official-development-assistance" target="_blank">humanitarian aid</a>.
So, even without US funding cuts, there would be a need for fresh thinking about how the aid sector works. First, we should focus grant aid – which accounts for more than <a href="https://ourworldindata.org/grapher/foreign-aid-given-as-grants-and-concessional-loans?stackMode=relative" target="_blank">90%</a> of the global aid budget (the rest being concessional loans) – on the poorest people in the poorest places. That means addressing the mismatch between the approximately 50% of the extreme poor who live in fragile and conflict-affected states, and the 25% of the global aid budget that goes to those countries.
Second, we need to devote resources to evidence-based, proven, cost-effective programming, like the community-based vaccine drive the IRC has pioneered in eastern Africa, where we delivered over<a href="https://www.rescue.org/press-release/world-health-summit-gathers-berlin-gavi-and-ircs-reach-consortium-deliver-20-million" target="_blank"> 20 million doses for $2 each</a>. We have also proposed a simplified protocol for treating moderate and severe acute malnutrition. In our study involving<a href="https://www.mdpi.com/2072-6643/14/22/4923" target="_blank"> 27,800</a> acutely malnourished kids in Mali, we achieved cost savings of around<a href="https://www.rescue.org/eu/article/why-do-most-children-affected-acute-malnutrition-go-untreated" target="_blank"> 20%</a>. But scaling up these approaches will require a change of mindset from donors, so that their efforts aggregate results, rather than diluting them.
Third, we need more innovation in programs, finance, and delivery. For example, the IRC is currently using AI to cut the diagnosis time for monkeypox in Africa from two weeks to five minutes, and we have also shown how the technology can help achieve impressive learning outcomes for kids whose education is interrupted by conflict and disaster.
Of course, innovation requires new commitments of capital. Disaster-risk financing, for example parametric insurance that pays out as soon as triggers are hit for rainfall, establishes predictable and fast flows of support. But we also need to bring <a href="https://www.rescue.org/sites/default/files/2025-05/New%20Era%20for%20Aid%20-%20FINAL%20DRAFT_0.pdf" target="_blank">debt swaps</a> into the humanitarian arena. These approaches have already been used to fund environmental improvement projects worth <a href="https://www.weforum.org/stories/2024/04/climate-finance-debt-nature-swap/" target="_blank">$1.7 billion</a> in seven countries.
Fourth, we need accountability for outcomes, rather than for inputs, in order to cut bureaucracy, increase flexibility, promote value for money, and drive innovation. Governments and international institutions should follow the example of Sweden, which holds us accountable for the outcomes we achieve. What matters is educational attainment, not the number of teachers trained, and the number of healthy newborns, not the number of neonatal health consultations.
Fifth, we need to align the aid burden with the composition of the global economy. The United States accounts for 25% of global income, but its share of national income devoted to foreign aid is only <a href="https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/06/development-co-operation-profiles_02ffa45c/united-states_99d860e7/884f742e-en.pdf" target="_blank">0.22%</a>, a figure set to decrease after the recent cuts. Still, in a February<a href="https://www.brookings.edu/events/what-americans-think-about-foreign-assistance/" target="_blank"> poll</a>, around 89% of Americans said that 1% of the federal budget should go to overseas aid. Since that is close to the actual figure, maintaining such funding could be a unifying mission for America and Americans.
Today,<a href="https://www.rescue.org/article/malnutrition-irc-helps-children-who-are-affected" target="_blank"> 80%</a> of acutely malnourished children in conflict zones are not treated,<a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC11673922/" target="_blank"> 60%</a> of maternal deaths in childbirth occur in fragile states, and <a href="https://news.un.org/en/story/2025/07/1165417" target="_blank">85 million</a> kids in these countries are out of school. Effective international aid is the answer to these challenges, not the problem. Humanity has more resources to do good than at any time in its history, so it is up to us to use them wisely. Setting aside 1% of a federal budget is not excessive. The money can be put to good use, and it is in America’s own interest to do so. The sooner it happens, the better. © Project Syndicate 
David Miliband, a former British foreign secretary, is President and CEO of the International Rescue Committee.

Opinion

The future of international aid

How China and India address climate change and reduce greenhouse gas emissions will have a significant impact on the planet's future, given their growing economic and demographic weight.
China and India are among the top emitters; recent estimates put their shares at roughly 33.9% and 7.5% respectively. Climate cooperation between the two neighbouring Asian giants will not only be mutually beneficial but also have the significant effect in blunting impacts of climate change in the region.&nbsp;
However, for such a cooperative agenda to materialise and sustain, there must be a discursive reconstruction of the issue of climate change, which transcends realist preoccupations with strategic advantage, relative power, and enduring rivalry. Drawing from the constructivist school in International Relations, this article presents the merits of such an approach and how it may be realised.
Driven by shared vulnerabilities to climate change, China and India initiated a cautious but promising climate diplomacy in 2009 by signing the Agreement on Cooperation in Addressing Climate Change. The agreement established the China–India Working Group on Climate Change to deliberate on domestic policy measures and international climate negotiations through secretary-level meetings.&nbsp;
The agreement facilitated collaborative scientific engagement including meteorological data sharing and joint research on climate change. A 2015 joint statement by Xi and Modi acknowledged the climate agreement as "mutually beneficial and contributes to the global efforts to address Climate Change".&nbsp;
However, the nascent China–India climate diplomacy was short-lived as it was incumbent upon favourable geopolitical conditions. As border tensions escalated from 2017, bilateral climate engagement stalled and has yet to resume.
CIVILISATIONAL THREAT
For climate diplomacy to be sustainable and effective, it needs to be insulated from the vagaries of everyday geopolitics. Climate change must be constructed as a collective threat, the redress of which requires placing it above the constraints of narrow geopolitical common sense.
China and India can facilitate such a reconstruction of the climate question by drawing upon their shared conception of themselves as civilisational states. Their political thought, moral order, and legitimacy are grounded in longstanding philosophical traditions such as Confucianism and Dharmic pluralism—broadly encompassing Hindu, Buddhist, Jain, and related traditions, respectively, under which the state is viewed as a custodian of civilisation, not just a modern bureaucratic apparatus.&nbsp;
In contrast, the post-Westphalian modern nation-state, which holds sovereignty and territorial integrity as the foundation of the modern international order, has promoted the idea of homogeneous nationhood characterised by bounded identities, actively ‘othering’ those outside its territorial boundaries. This has made universal cooperation on even the most pressing transnational issues such as climate change, difficult, if not improbable.
China and India, too, disregarding their civilisational characteristics, behave like post-Westphalian nation-states in their relations with each other, placing strategic competitiveness, territorial integrity, and relative advantage above all else. Climate cooperation has been a casualty of this disregard for civilisational values.
China and India could found a strong, enduring, and effective climate cooperation if they were to position themselves first as civilisational states, with unique ways of governance, complex histories, and value systems informed by principles such as Tianxia—'all under heaven’ and Vasudhaiva Kutumbakam—'the world is one family’. These values encompass holism and interconnectedness of all beings on the planet, transcending the narrow Eurocentric categories of bounded nationhood, territorial sovereignty, borders, and relative power.&nbsp;
Such a worldview would enable them to perceive issues like climate change for what they are—a shared threat to both (and humanity), which needs to be addressed in concert, setting aside constraints imposed by strategic dictates.
Of course, framing China or India as civilisational states can translate into competing moral or cultural claims to leadership aimed at justifying hierarchical regional orders. The leaders of both states have invoked civilisational identity to legitimise power claims and expansionist ambitions, as seen in Xi Jinping’s ‘national rejuvenation’ based on civilisational pride, and in Modi’s ‘Vishwa Guru’ narrative embedded in cultural nationalism.
However, in the face of an overarching transnational threat such as climate change, with adequate political will and foresight, China and India could choose to consciously construct their civilisational heritage and beliefs as a responsibility toward the planet and humanity. The Chinese concept of ‘Tianxia’ can be interpreted as an ecological cosmopolitanism, while India’s ‘vasudhaiva kutumbakam’ offers a parallel ideal for global ecological stewardship.
Thus, climate change must be constructed as a civilisational threat for China and India. It is not merely an ecological, socio‑economic, political, or security threat; it also imperils their civilisational cores. Both must recognise climate change for the potential it has to eliminate their long-held civilisational heritage, complex history, diverse knowledge and value systems, and unique worldviews.&nbsp;
The need is to perceive this collective problem from a shared civilisational standpoint, which is far older and more complex than that of modern nation-states. This reframing can seed norms that promote resilient and enduring climate cooperation to take root.
REVITALISED CLIMATE COOPERATION
Reframing climate change as a civilisational threat is pivotal for several reasons. Firstly, it redefines precarity—the impending impacts of climate change are not only limited to existing socio-ecological and economic aspects of the society as we know it. It threatens the very traditional, socio-historical, and cultural roots of these civilisations.&nbsp;
Secondly, this reconstruction of climate change augments urgency—there is an urgent need to muster all efforts to address the crisis, including cooperation with neighbouring states, especially those with shared historical and civilisational narratives. Thirdly, it places responsibility on leaders not only to protect the current and future generations, but also safeguard the rich past from obliteration.&nbsp;
Fourthly, such a reconceptualisation of climate change elevates the climate agenda above everyday geopolitics, making room for lasting cooperative mechanisms and policies that could withstand strategic shifts. Further, this understanding of climate change justifies and necessitates closer cooperation and privileges de-politicised cooperation insulated from day‑to‑day geopolitical fluctuations.
A discursive reconstruction of climate change can pave the way for a resilient climate cooperation between China and India that is multi-dimensional and holistic. Politically, the two can negotiate an all-weather climate cooperation framework by revisiting their 2009 agreement, situating it on a normative foundation of shared civilisational risk, and anchoring it in a clause that insulates climate collaboration from geopolitical fluctuations.&nbsp;
This would ensure a steady exchange of resources, knowledge, and technology despite geopolitical uncertainties; spur green growth and resilient development; and help them attain global climate leadership amid inconsistent US leadership. Such a cooperative framework could become a template for regional and even global cooperation on climate change.&nbsp;
Economically, the two can innovate a green trade agreement with built-in structural safeguards against bilateral or regional political tensions.&nbsp;
Such an agreement would prioritise environmental sustainability, decarbonisation, and clean energy, facilitating commerce on electric vehicles (EVs), battery production, smart grids, renewable energy technologies, and energy-saving technologies. They can become global climate leaders by 'doing' through innovation and sharing clean technologies, energy, and critical minerals, without being hindered by strategic competition.&nbsp;
Furthermore, China and India can coordinate their stands at international climate negotiations, continue to champion the interests of developing countries and small island developing states including on climate finance and loss and damage, and leverage their growing economies to demand accountability and responsibility from developed countries.
The two countries can also look to engage in the climate security domain, where they can promote resilience and sustainability in military infrastructure, equipment, deployment, humanitarian assistance and disaster relief (HA/DR) by sharing information, knowledge, technology, best practices, and ecological vulnerability data. They can institute bold trust-building exercises such as joint disaster simulations in the Himalayas, for instance; and invest in collaborative climate security research and development for mutual gains.&nbsp;
The role of civil society and non-state actors in a civilisational climate change-based cooperation will be enormous. Track-two diplomacy, which brings together diverse civil society groups, including local activists, youth and women's groups, scientists, and students, can facilitate a free exchange of ideas, knowledge, and best practices informed by lived experiences.&nbsp;
University consortia, collaborative research programs, and academic events such as conferences, symposia, and workshops on climate-related topics can be fruitful in deepening regional knowledge, methodologies, and strategies.
Thus, basing climate cooperation on deeper civilisational values and identity holds the promise of an enduring, resilient, and effective climate engagement between China and India. Drawing on their unique civilisational positions, rather than the dominant modern nation-state considerations, would enable China and India to actualise a robust, stable, ongoing, mutually beneficial fight against climate change.&nbsp;
The prospects of such a cooperative endeavour, which will foster the revival of the idea of ‘Chindia’—the imagined joint rise of China and India, are within reach.
Robert Mizo is Assistant Professor of Political Science and International Relations at the University of Delhi and holds a PhD in Climate Policy studies. He is currently a Research Fellow at the Toda Peace Institute, Tokyo
This article was issued by the Toda Peace Institute and has been republished from the original with permission.

Reconstructing the China–India climate diplomacy

You do not have to be a climate expert or atmospheric pandit to claim that Nepal is not pulling its weight on the grand narratives of the Anthropocene. As a heavily populated ‘country-on-an-incline’ from the Tarai to the Himalaya, Nepal is a thermometer of global warming.&nbsp; Its people are human witnesses to environmental and climate breakdown, but remain mute observers to the unfolding crises. Nepal should be leading the pack at the COP30 climate conference in Belém, backed by science and lived experience. But it is doubtful that two of the most crucial climate-related subjects central to the culture, economies and human wellbeing in the Himalaya and South Asia will be discussed at the summit that started this week in Brazil.&nbsp; The first topic that should be raised at COP is Black Carbon or the South Asian Brown Cloud, made up of tiny suspended particles in the air. This is not just a transboundary health hazard, there is now enough science to make the case that Himalayan snowmelt is accelerated significantly by the albedo effect that makes ice melt faster because of reduced reflectivity. But Kathmandu has not been able to make governments near and far listen. In 2014, I wrote a short piece published in Outlook magazine explaining why India’s Prime Minister Modi looking northward from a SAARC Summit retreat in Dhulikhel was unable to see the Jugal Himal range barely 30km away. His view was obscured by the pollution layer arriving from as far away as Lahore with substantial contribution from the Delhi region. That summit itself was an opportunity for Nepal to inform the Indian and Pakistani prime ministers that much of the haze, smog, dust and soot that settles on our slopes was generated in Sindh, Punjab, Punjab, Haryana, Western UP and Delhi NCR, carried by prevailing westerly winds up to the Himalaya. The forest fires within Nepal as well as Kathmandu Valley’s pollution contribute to the haze, but the shroud that suffocates the region through autumn, winter and spring is mostly transnational. Last year, these anthropogenic fine aerosols actually curled over the Bay of Bengal and invaded the airspace of Sri Lanka and Maldives.&nbsp; Even as the soot particles accelerate glacial melt and impact everything from infrastructure to public health, the most visible effect is on tourism. Nepal’s economic future is based on tourism, and much of this relies on being able to see the snow mountains. Why should travellers go to Pokhara if they cannot see the Annapurnas?&nbsp; Hoteliers in Nagarkot have started a campaign: ‘Visit Nagarkot 2025: More than Sunrise and Sunset’. While clever, the slogan is a response to the acclaimed Himalayan vista from Everest to the Annapurnas from the hill station, now obscured by the brown curtain of haze for most of the year. As the bellwether country of South Asia when it comes to the climate crisis, Nepal must build diplomatic confidence to reach out to the governments of Pakistan and India even in their present state of antagonism. Kathmandu must launch ‘haze diplomacy’ for its own sake and for the region.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113001132_16c9941da7b31c1d4683c06dc0f8a572803240701270606848851f915140329c.jpg" data-media-id="editor_0" data-image-id="20251113001132_16c9941da7b31c1d4683c06dc0f8a572803240701270606848851f915140329c" data-rendition-name="original" width="1005" height="695" loading="lazy" alt="permafrost"> </figure>  IMPERMANENT FROST&nbsp; Permafrost is understood mostly as a phenomenon of the Arctic, Antarctica, Siberia and Alaska. Mountains elsewhere did not figure, though it was natural for the ground to freeze all year round at high altitudes.&nbsp; In the Himalaya, besides the snowfields and glaciers, frozen moisture binds rocks and stabilises slopes. But global warming is melting the permafrost that used to cement mountain flanks, including boulders, sand and scree slopes. Some of the debris (गेग्रान) did tumble down, but much of it remained entombed on high, thanks to permafrost. Pokhara Valley and the Seti River reaching all the way up to the base of the Annapurnas, is the best place to observe this dance of geology between gravity and the mountain range. Rubble from the collapse about <a href="https://nepalitimes.com/here-now/remembering-the-seti-disaster">700 years ago of paleo-Annapurna IV </a>created the sediment field on which Pokhara is situated today. However, much of the debris from the crumbled mountain is still lodged up on and around Annapurna IV, but the binding is loosening with the warming earth. A <a href="https://www.icimod.org/event/analysing-permafrost-in-the-hindu-kush-himalaya-using-open-access-tools/">2024 report by the International Centre for Integrated Mountain Development (ICIMOD)</a> indicates that global warming is thawing the permafrost across High Asia. Among the unintended consequences of climate breakdown is that mountains and moraines are collapsing, with <a href="https://www.icimod.org/press-release/everest-region-a-hotspot-of-cryosphere-linked-hazards-icimods-new-study-on-nepals-2024-thame-flood-confirms/">cascading impact</a> that includes glacial lake outburst floods, reduced groundwater recharge as well as winter flow in the Ganga, Indus and Brahmaputra. No one has calculated the total volume of rubble locked in by permafrost across the Himalaya. Despite the increased risk, there is accelerated construction of highways, hydropower projects, housing and tourism infrastructure across the Himalaya. While the COP conferences discuss rising oceans and receding glaciers (without doing much about it), Himalayan permafrost has been melting unremarked. In their path-breaking September 2024 <a href="https://nepalitimes.com/multimedia/the-not-so-permanent-frost">article in Nepali Times</a>, Wilfried Haeberli and Alton C Byers argued that the extreme events of the past few years that led to mountain and moraine collapses, unleashing destructive debris flows downstream, were the result of melting permafrost. Haeberli and Byers suggest that the avalanches and floods including those of <a href="https://archive.nepalitimes.com/article/nation/Anatom-of-a-Himalayan-tsunami,1330">Seti (2012)</a>, <a href="https://www.icimod.org/article/understanding-the-chamoli-flood-cause-process-impacts-and-context-of-rapid-infrastructure-development/">Chamoli (2021)</a>, Birendra Tal (2023), <a href="https://www.sciencedirect.com/science/article/pii/S2772883825000251">Sikkim (2023)</a>, <a href="https://nepalitimes.com/news/climate-breakdown-linked-to-thame-flood">Thame (2024)</a>, <a href="https://himat.org/publication/byers-rockfall-induced-2019/">Barun (2017)</a> and <a href="https://nepalitimes.com/banner/drones-to-the-rescue-in-melamchi">Melamchi (2021)</a> were the result of the thawing of frozen ground. They say that the collapse of the lateral moraine on the <a href="https://nepalitimes.com/news/sikkim-flood-is-warning-to-nepal">South Lhonak glacial lake</a> in Sikkim on 4 October 2023 that swept away more than 100 people, destroyed the $1 billion Chungthang Dam as well as houses, roads and farms far downstream, was also caused by cloudburst on a lateral moraine that had lost its permafrost adhesive. There will be permafrost sceptics, as there have been climate change deniers. But it is time to wake up to the reality that the Himalayan peaks are no longer the immutable sentinels as regarded by humanity since prehistoric times.&nbsp; Modern society has pumped so much greenhouse gas into the atmosphere that now even the mountains are giving up. And we have not even begun to think about the bacteria and viruses locked away in the permafrost up the slope.&nbsp; Loss of permafrost adds to the cumulative impact of climate breakdown, including extreme weather events, drought and cloudbursts, heat waves in the plains affecting lives and livelihoods, creating mass migration, social unrest, and upending politics and geopolitics. The government and polity of Nepal have a duty to themselves and the larger humanity to wake up to the climate breakdown. The Sagarmatha Sambaad conclave organised by the Government in May failed to emerge as a pulpit for global warming and associated ills. Our political class, bureaucracy and academia should make up for lost opportunities to rise to the occasion and take the lead.&nbsp; Kanak Mani Dixit is writer, commentator and founding editor of Himal Southasian.

Guest Editorial

Climate of tragedy and apathy

Traditional donors have sharply scaled back their aid commitments to developing countries over the past year. Some, like the United States, have virtually eliminated their aid programs. According to the Organisation for Economic Co-operation and Development (OECD), official development assistance (ODA) from member countries <a href="https://www.oecd.org/en/about/news/press-releases/2025/04/official-development-assistance-2024-figures.html" target="_blank">declined by 7.1%</a> in 2024, its first annual drop in six years. This trend was not limited to a few major donors. Of the 33 members of the OECD’s Development Assistance Committee (DAC), 22 slashed their aid budgets, and only four countries met the United Nations’ target of allocating 0.7% of gross national income to ODA. The outlook for the coming year offers little hope for improvement, as major DAC donors have announced additional cuts. Most notably, US President Donald Trump’s administration has suspended most foreign aid and dismantled the Agency for International Development (USAID), which dispersed most US government aid dollars. Meanwhile, the United Kingdom plans to <a href="https://www.bbc.com/news/articles/clyrkkv4gd7o" target="_blank">reduce aid spending</a> from 0.5% of GNI to 0.3% by 2027. Similar retrenchment across Europe and North America is reshaping international assistance, disrupting humanitarian and climate-related programs, and creating financing gaps in critical sectors such as health, education, and clean energy. In our 2017 book <a href="https://www.cambridge.org/core/books/going-beyond-aid/B48F59C6D8D2790D403A1A0C44B37612" target="_blank">Going Beyond Aid</a>, we urged developing-country governments to reduce their dependence on foreign aid, not only because it was becoming an unreliable source of funding, but also because other, better ways of financing development were becoming more available. That message is more urgent than ever. As reliance on aid becomes untenable, the international community must mobilise a broader array of financing sources to advance green and sustainable growth. This includes national development banks, industrial investment funds, sovereign wealth funds, and institutional investment in public markets, as well as innovative mechanisms such as debt swaps and public-private partnerships (PPPs). These tools can unlock domestic resources, attract long-term investors, and create synergies between public goals and private capital. Equity investment offers a promising avenue for engaging non-traditional development partners while reducing developing countries’ dependence on debt. Government investment funds, public and private financial institutions, and other private actors can participate by taking equity stakes in public enterprises, financing infrastructure projects, or joining PPPs. Such participation not only alleviates debt burdens but also improves the performance and management of public assets. As government-funded, mission-driven institutions, public development banks (PDBs) have the potential to provide patient capital for green and sustainable investment in emerging and developing economies (EMDEs). Building on the <a href="http://www.dfidatabase.pku.edu.cn/index.htm" target="_blank">pioneering database</a> of public development and financial institutions created by the Institute of New Structural Economics at Peking University, future research can identify effective ways to harness these institutions to fuel low-carbon growth. Responding to growing demand from the economies of the Global South, development partners have increasingly adopted an “entire value chain” approach to the green transition in recent years. This strategy facilitates transfers of low-carbon technologies, diffusion of digital innovations (including trade in services), and industrial modernisation, enabling countries included in China’s Belt and Road Initiative (BRI) to accelerate their shift toward sustainable development. Empirical research supports this approach. An analysis covering 139 countries <a href="https://ember-energy.org/latest-insights/the-first-evidence-of-a-take-off-in-solar-in-africa/" target="_blank">finds</a> that, following policy directives to incorporate green and low-carbon principles into the BRI, carbon intensity (CO₂ emissions per unit of GDP) among participating countries declined significantly between 2013 and 2022. These findings are consistent with another <a href="https://ember-energy.org/latest-insights/the-first-evidence-of-a-take-off-in-solar-in-africa/" target="_blank">recent study</a> showing how China’s solar-energy expansion has helped transform Africa’s power sector. Investment in infrastructure and industrial development can also generate positive spillover effects. Evidence from Sub-Saharan Africa <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/jors.70023" target="_blank">shows</a> that the presence of at least one Chinese-financed infrastructure project in a second-order administrative region (comparable to a municipality) is associated with a 5% increase in nighttime luminosity – a widely used proxy for economic activity. Neighbouring regions experienced a 10-15% rise in luminosity, indicating that the benefits of such projects extend well beyond the immediate investment site.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251104131124_1a11d248a89b0785bc7d7f1d9f721e7e7a2563cbd579c3c672a0900220c19171.jpg" data-media-id="editor_7" data-image-id="20251104131124_1a11d248a89b0785bc7d7f1d9f721e7e7a2563cbd579c3c672a0900220c19171" data-rendition-name="original" width="720" height="405" loading="lazy" alt="development aid and China"></figure>  These outcomes underscore the critical role of infrastructure investment, particularly in energy and transportation projects. By improving electricity access, affordability, and connectivity, they reduce energy poverty, bolster public services, and stimulate economic activity in underserved areas. To meet the evolving challenges of development finance, both traditional and non-traditional donors and creditors should move beyond aid and adopt multidimensional strategies that combine trade, investment, infrastructure, green technology, and digital connectivity, including fintech solutions, to support EMDEs. Importantly, such collaborations should be viewed as a mutual learning process in which partners assume complementary roles and shared responsibilities. To be sure, there have been missteps along the way. China’s financing of coal-fired power plants before 2021, for example, had slowed reduction in CO₂ emissions. But these outcomes, once recognised as policy errors, can help strengthen accountability and foster self-correcting mechanisms within the international development ecosystem. Through ongoing learning and adaptation, global partners can build a more resilient, inclusive, and sustainable framework for development finance. © <a href="https://www.project-syndicate.org/">Project Syndicate</a> Justin Yifu Lin, a former World Bank chief economist and Senior VP, is the honorary dean of the National School of Development and director of the Institute of New Structural Economics at Peking University. Yan Wang is Senior Academic Researcher at Boston University’s Global Development Policy Center.

Development finance must shift away from aid

Imagine a high-end fair trade tea brand from Nepal that has done everything right, with ethical sourcing practices and international certifications. It has built a loyal base of socially conscious, premium customers in an export market and focuses on quality over quantity. Then one day, a government in the export market introduces a new ‘listing criteria’ that requires exporting a certain amount of tea to at least three countries in the past five years. But this was never a numbers game, it was about a niche market of socially responsible tea lovers.&nbsp; Suddenly, fair trade tea companies are restricted from exporting tea to that country.&nbsp; Pretty unfair for the company, for consumers, for the tea sector. More importantly, for tea farmers and families benefiting from fair standards. The overseas labour industry is facing a similar risk as recruiters, including those that have adopted ethical standards, may soon be barred from finding workers for Malaysia.&nbsp; On 27 October, the Malaysian Ministry of Foreign Affairs sent letters to five countries including Nepal, Bangladesh, Burma, Pakistan and India to ‘rationalise the number of licensed private recruitment agencies permitted to facilitate recruitment and placement of workers to Malaysia’.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251030141040_050274dddc6cf10224b0ad9283eec7b3bc3c0acd650543a808a8ea473ecf40db.jpg" data-media-id="editor_0" data-image-id="20251030141040_050274dddc6cf10224b0ad9283eec7b3bc3c0acd650543a808a8ea473ecf40db" data-rendition-name="original" width="961" height="1135" loading="lazy" alt="Malaysia recruitment"> </figure>  The letter includes 10 criteria for private recruiting agencies including at least five years of operating experience, deployment of 3,000 workers in the past three years of operation, &nbsp;experience sending workers to at least three countries, a 10,000 sq m office maintained for three years, valid licenses and good conduct certificates, five employer testimonials, and operating their own training and accommodation centres. Two conditions stand out as potentially harmful to Nepal’s ethical recruitment movement. First, although the letter cites a minimum of 3,000 workers, it says three years in the heading and five in the body text. A big enough difference to affect a significant number of recruiters from making the cut, but problematic regardless.&nbsp; Second, the requirement to send workers to at least three countries disproportionately impacts responsible recruiters in Nepal and elsewhere. Turning the selection of workers into a numbers game is dehumanising. Responsible &nbsp;recruiters deprioritise volume, focus on quality of jobs even when business sustainability comes under threat as ethical opportunities that do not require workers to pay any feed and ensure greater transparency are difficult to come by. Sending workers is further impacted by a series of external shocks. For example, in the Malaysian context Nepal banned emigration to Malaysia for two years followed by the Covid pandemic, and then Malaysia’s decision to stop the intake of foreign workers for the last two years.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251030141040_b1b88b3ae2e94c6bc077529ac6f2a4e380a385ee9a22219edfed25067c9d25a1.jpg" data-media-id="editor_1" data-image-id="20251030141040_b1b88b3ae2e94c6bc077529ac6f2a4e380a385ee9a22219edfed25067c9d25a1" data-rendition-name="original" width="595" height="841" loading="lazy" alt="Malaysia recruitment"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251030141040_2cf252908d18aaf09c875002eef2d92ab45897a56b560addd2dc02311725c8a7.jpg" data-media-id="editor_2" data-image-id="20251030141040_2cf252908d18aaf09c875002eef2d92ab45897a56b560addd2dc02311725c8a7" data-rendition-name="original" width="590" height="238" loading="lazy" alt="Malaysia recruitment"> </figure>  Many ethical recruiters have focused on Malaysia because it is a more common labour market for responsible recruitment than other destinations like the Gulf. There is no credible justification to why responsible recruiters well regarded by scores of Malaysia-based multinational companies and with decades of experience should be ‘disqualified’ for not diversifying. Finding jobs for Nepalis in new markets is difficult given fierce competition, challenges &nbsp;identifying companies which follow the employer-pays principle, lack of networks and shortcomings in marketing strategies. These factors hit responsible recruiters harder because profit-motivated employers are often unwilling to cover the costs and fees associated with workers’ recruitment.&nbsp; “The volume of deployment does not determine a recruiter’s capability or the quality of services provided,” says Sujit Shrestha of the Nepal Association of Foreign Employment Agencies (NAFEA). Nepal recently scrapped the licensing renewal requirement that mandated sending at least 100 workers a year as it was impractical. The new Malaysian criteria is similar in nature, he added. The ball is now in Nepal’s court at a time when the interim government does not even have designated heads in the Foreign Ministry and the Ministry of Labour, Employment Employment and Social Security. When rumours about the Malaysian action started circulating, NAFEA had raised the issue, but was assured that this was not an attempt to set up a syndicate.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251030141044_83c8a174ef116603f747d1cd254c4d353e8b855a41fb99feec54e701f5fc4c3f.jpg" data-media-id="editor_3" data-image-id="20251030141044_83c8a174ef116603f747d1cd254c4d353e8b855a41fb99feec54e701f5fc4c3f" data-rendition-name="original" width="3456" height="5184" loading="lazy" alt="Malaysia recruitment"> </figure>  How will governments and recruiters in other origin countries now respond? There is precedence from Bangladesh. Dhaka-based journalist at the Daily Star, Porimol Palma who says, “Earlier, the Malaysian authorities had selected 101 Bangladeshi recruiters unilaterally, despite Bangladesh’s call for a syndicate-free recruitment mechanism.” Between 2022-2024, 450,000 Bangladeshis were recruited under this system with workers paying between $4,500 and $6,000, even though the legal limit was $750. Palma attributes part of the high fees workers had to pay were for commissions or bribes to recruitment syndicates. Adrian Pereira heads the North South Initiative in Malaysia says: “The criteria seems a bit fishy, as they do not appear to address the actual problems in the the recruitment of foreign workers. Some of the criteria seem to encourage a system of monopoly or syndicate rather than a rights-based approach. Every government has the right to set criteria for recruiters, but conventions and ILO (International Labour Organization) standards on recruitment exist. It looks like we’re back to square one.”&nbsp; Whether migrant origin countries including Bangladesh and Nepal accept the terms sent without reservations or push back in good faith remains to be seen. In an ideal world, a collective stance should put workers’ needs and welfare at the centre. How rational is the proposed ‘rationalising strategy’? What aspects of it are promising to curb recruitment abuse and what merits serious reconsideration?&nbsp; Even if the move from the Malaysian side is well-intentioned to address rampant malpractices migrant workers face, Nepal should deliberate on the conditions set, the collateral damage especially on the responsible actors and small but capable recruiters. Alternate options that might serve everyone better before rushing to respond with a chosen list by 15 November. If the proposal is accepted, how would it be done in a transparent and accountable way? It is noteworthy that Indonesia was not listed even though it has the most workers in Malaysia among the 16 countries that send migrants to Malaysia.&nbsp; The Responsible Business Alliance (RBA), the ILO, the International Organization for Migration (IOM), and certification programs like On the Level (OTL) also need to use their leverage to ensure that recruiters, including those they have trained or certified on ethical recruitment principles, are not penalised.&nbsp; This is more than just about protecting the ethical recruitment movement, but raising even more basic questions: Who can legally be a recruiter in Nepal? There are already obligations like hefty security deposit and minimum office requirements. But requirements to have building facilities with ‘accommodations’ or ‘testing centres’ are not among them. There are 1,150 plus players in Nepal’s recruitment sector, with a few hundred engaged in the Malaysian market. A unilateral selection criteria could risk foul play, or lead to unintended, unfavourable consequences. To be sure, overseas recruitment in Nepal is known for ‘settings’, corruption, dog-eat-dog competition, and collusion. The profiteering is out of control, often at the expense of workers. But the solution does not lie in stifling the industry with criteria like deployment volume, building worker accommodations or expanding office floors.&nbsp; The focus should instead be on enforcing rules and laws in both countries that govern the industry, and the Malaysian labour agreement that has not been renewed since October 2023.&nbsp; Meddling in the industry in ways that harms fair competition and ethical actors means workers suffer. The only issue that should be taking precedence is: how will Malaysia’s 10-point criteria and planned arrangement affect migrant workers? We have seen how for identical Malaysia-based jobs, one worker might pay zero while another pays up to Rs400,000, depending on the employer and recruiter. It is unclear if the 10-point selection criteria rewards the responsible employers and recruiters.&nbsp; As a longstanding host country for Nepali migrants, Malaysia deserves credit for nurturing the small but growing ethical recruitment industry here. Export-oriented companies in Malaysia need responsible recruitment partners and have mentored recruiters to strengthen their practices and move away from worker-paid models.&nbsp; The business case for ethical recruitment standards has led many recruiters in Nepal to pivot with many now in various stages of transition from traditional to hybrid or purely ethical practices. This progress needs to be acknowledged and built upon.&nbsp; Large, well-networked recruiters with large physical assets and high volume of workers seem to be the winners of Malaysia’s 10-point criteria after two years of waiting for the Malaysian market to reopen. Responsible recruiters endure long periods of minimal or no deployments that threatens their survival. The letter now sitting on the desk of the interim government in Nepal deepens the concern: rather than just failing to recognise or reward responsible recruiters, does the international recruitment market actually punish them? Upasana Khadka heads Migration Lab, a social enterprise aimed at making migration outcomes better for workers and their families. Labour Mobility is a regular column in Nepali Times.

Upasana Khadka

Labour Mobility

Who gets to recruit for Malaysia?

<a href="https://myrepublica.nagariknetwork.com/news/dhm-forecasts-above-average-rainfall-and-temperatures-for-2025-monsoon-28-10.html">This year, </a>Madhes Province received less rainfall than was forecast by the &nbsp;Department of Hydrology and Meteorology (DHM), reducing groundwater recharge of shallow aquifers which are the lifeline for domestic use and irrigation.&nbsp; The crisis was serious enough for the government to officially declare a drought emergency during the monsoon, with the province declared a '<a href="https://kathmandupost.com/national/2025/07/23/cabinet-declares-madhesh-province-a-disaster-crisis-zone?">disaster-hit zone</a>' in July.&nbsp; The monsoon scarcity hit farmers hardest, a majority of whom depend on rainfall for agriculture. Data from Dhanusa’s <a href="https://add.madhesh.gov.np/noticefiles/%E0%A4%A7%E0%A4%BE%E0%A4%A8-%E0%A4%B0%E0%A5%8B%E0%A4%AA%E0%A4%BE%E0%A4%87%E0%A4%95%E0%A5%8B-%E0%A4%B5%E0%A4%BF%E0%A4%B5%E0%A4%B0%E0%A4%A3-%E0%A5%A4-1752227917.pdf">Agriculture Development Directorate</a> shows that only 33% paddy plantation was completed by mid July, in comparison to <a href="https://kathmandupost.com/money/2024/07/31/fastest-transplantation-rate-sows-hope-for-bumper-paddy-harvest?">92% planting the same time last year</a>. Only 49% of agricultural land in Nepal is irrigated — farmers in the rest of the arable land rely on rainfall, private wells and groundwater extraction. During the dry seasons and droughts, water insufficient groundwater recharge worsens the water crisis.&nbsp; Nearly 88% of households depend on groundwater in Madhes Province which has about 100,780 shallow tube wells and 60,660 deep tube wells. But in recent times, the tube wells and hand pumps have dried up every year.&nbsp; This shortage disproportionately impacts low income families and small-scale farmers, who have no other alternative to irrigate their land. And because paddy accounts for up to 7% of Nepal’s economy, Madhes’ water crisis is not confined to within the province, but has serious implications on the national economy.&nbsp; Underground water Groundwater extraction for irrigation began in the <a href="https://jvs-nwp.org.np/wp-content/uploads/2018/09/Water-Nepal-A-historical-Perspective.pdf">1970s, </a>shallow and deep tube wells for irrigation were introduced with support from development partners. By the 2021 agriculture census, <a href="https://agricensusnepal.gov.np/upload_file/files/post/1731650149_1221316497_Agriculture%20Census%202021_District%20Summary%20Report_by%20Province.pdf">groundwater irrigated land had increased </a>to 41.7%, up from &nbsp;<a href="https://agricensusnepal.gov.np/upload_file/files/post/1694250757_1312300734_National%20Sample%20Census%20of%20Agriculture%202021_22%20(National%20Report).indd.pdf">29.8% in 2011.</a>&nbsp; A lack of strong policies and regulation to monitor unchecked extraction has meant that with the exception of some parts of Kathmandu Valley, domestic users, subsistence and commercial farmers, restaurants, hotels and industries across Nepal can draw any quantity of groundwater from desired depths and location. While the dependence on drilling for water has risen due to limited expansion of surface water infrastructure, there has been little attention to groundwater recharge. This competing use of groundwater threatens the fundamental right to drinking water.&nbsp; The ecologically sensitive Chure and Bhawar watershed play a crucial role in groundwater recharge. However, deforestation and indiscriminate riverbed mining has severely reduced its recharge potential over the years. In addition, widespread monoculture plantation of fast-growing non-native eucalyptus trees, replacing native sissoo and sal trees has compounded the crisis. Eucalyptus, a water intensive species indigenous to Australia, was introduced in the Bhawar region in 1978 for supplying wood. The Tarai’s recurring water crisis is not only climatic. Years of fragmented planning, inadequate budget allocation for groundwater management, as well as limited intra- and inter-government policies and coordination have contributed to the disaster just as much as droughts and floods caused by changing weather patterns. The United Nations said decades ago disasters are not natural, and they occur when we fail to prepare.&nbsp; Groundwater management is <a href="https://www.opmcm.gov.np/download/%e0%a4%86%e0%a4%af%e0%a5%8b%e0%a4%9c%e0%a4%a8%e0%a4%be-%e0%a4%b5%e0%a4%b0%e0%a5%8d%e0%a4%97%e0%a5%80%e0%a4%95%e0%a4%b0%e0%a4%a3%e0%a4%95%e0%a5%8b-%e0%a4%86%e0%a4%a7%e0%a4%be%e0%a4%b0-%e0%a4%a4/?wpdmdl=8990&amp;refresh=683b8df54ffef1748733429">the shared responsibility of federal, provincial and local</a> governments, but there is a lack of <a href="https://www.iwmi.org/blogs/stakeholders-in-nepal-work-together-to-enhance-collective-action-for-municipal-groundwater-management/">integrated planning, &nbsp;budgeting, data sharing</a>, and collective action for groundwater extraction and recharge.&nbsp; Sustainable groundwater use in the plains requires inclusive and equitable practices that combine water science-informed interventions with a long-term cross-disciplinary approach.&nbsp; Groundwater is mainly available either in shallow unconfined aquifers that are close to the surface and directly linked to rainfall and rivers, and deep confined aquifers between semi permeable or impermeable ground layers. Locating and mapping such aquifers would help us find what depth they lie at, how much water they hold, what we can do to recharge them and how much time recharging would take—enabling sustainable use of groundwater. Construction of surface water projects such as the Sun Kosi Marine Diversion Multipurpose Project, which serves a dual purpose of expanding irrigation and recharging groundwater, must be expedited.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251027071020_a9442084bc412998d3e7417cf0d057cae8a2b98f5e47ac1a8cc0630612ff2a55.jpg" data-media-id="editor_9" data-image-id="20251027071020_a9442084bc412998d3e7417cf0d057cae8a2b98f5e47ac1a8cc0630612ff2a55" data-rendition-name="original" width="1778" height="1000" loading="lazy" alt="Mitigating the Madhes water crisis NT"> <figcaption>Photo: ONION FILMS / IWMI</figcaption> </figure>  Such infrastructure have a conjunctive use recognised by the National Irrigation Master Plan 2019 and the National Irrigation Policy 2023, wherein farmers can rely on canals for irrigation during monsoon and groundwater during dry seasons.&nbsp; Nature-based solutions such as rainwater harvesting, managed aquifer recharge techniques, restoration of wetlands and retention ponds, and floodwater reservoirs, particularly in ecologically sensitive regions like the Chure Bhaban, should be explored. &nbsp; The management of green water — the water stored in soil and vegetation — is equally as critical as that of blue water (rivers, canals, and groundwater). Green water is lost through evapotranspiration, which contributes to nearly half of the rainfall on land. Deforestation, soil degradation, poor land use practices, and loss of wetlands contribute to the disruption of the evapotranspiration cycle, affecting rainfall patterns and groundwater recharge. Solutions Rising temperatures compound this situation by increasing evapotranspiration. Soil water conservation, vegetation cover, wetland restoration, and nature friendly land use practices must therefore be prioritised. Water-efficient technologies and practices including drip irrigation use of sprinklers, mulching, and soil fertility improvement should be scaled up.&nbsp; At the same time, we must promote irrigation techniques and technologies along with crop choices and cropping patterns that give more yield per drop of water so that food production and water conservation go hand in hand. &nbsp; The government provides subsidised electricity for irrigation starting at Rs2.3/unit, some local governments are even supplying power for free. While such subsidies support farmers and increase productivity, &nbsp;it also poses serious risk of over extraction of groundwater.&nbsp; Flat subsidies in electricity or solar irrigation must be replaced by targeted subsidies in order to balance domestic and agricultural needs with ecological conservation. The 2015 <a href="https://kvwsmb.gov.np/public/uploads/board_act_&amp;_rules/rule-1.pdf">directive for groundwater licensing</a> developed per the Drinking Water Management Board Act 2006 for Kathmandu valley prohibits groundwater extraction from shallow aquifers for commercial and industrial uses. The directive also has provisions for licensing, and renewals, and mandates for license holders to contribute to groundwater recharge. The Madhes needs similar context-specific policies to address its groundwater crisis and safeguard water rights. Shallow aquifers in the region should be prioritised for domestic use while <a href="https://link.springer.com/chapter/10.1007/978-981-10-3889-1_11">deep aquifers, which are still underutilised, should be tapped</a> in a sustainable manner for commercial, industrial and large scale irrigation and drinking water projects.&nbsp; While <a href="https://www.frontiersin.org/journals/human-dynamics/articles/10.3389/fhumd.2023.1181734/full">technical solutions</a> are important, they are not enough to solve Madhes’ water crisis. Nepal’s Constitution and the Local Governance Operation Act 2017 empower local governments for water management in their constituencies. But beyond the letter of the law, local units require community tailored groundwater policies, regular groundwater monitoring and up-to-date data, and investment in local recharge initiatives such as retention ponds, restoration of wetlands, and rainwater harvesting. Coordination between all three tiers of government is crucial, particularly among agencies that pertain to drinking water, water resources, irrigation, agriculture, land use, environment, climate change, and urban development. &nbsp; Heeding indigenous knowledge will be crucial to understanding the water crisis in Madhes and initiating solutions that will fit the context and needs of the region. Local engagement in groundwater monitoring can help to create self -aware, accountable, cost effective and participatory groundwater management practices.&nbsp; To ensure water security in Madhes, we thus need inclusive governance, coherent policies, active engagement of citizens, integration of local and indigenous knowledge and a principle of equity that puts people at the centre. &nbsp; Sumitra KC, a policy and governance researcher in natural resources management, is the National Researcher at the International Water Management Institute (IWMI), Nepal. Manohara Khadka, PhD, an expert in natural resources management, gender equality, and social inclusion, is the Country Representative of IWMI, Nepal.

Mitigating the Madhes water crisis

Public anxiety about immigration has become a powerful political currency across many liberal democracies. In Australia, as elsewhere, legitimate concerns about housing and economic fairness can be, and increasingly are exploited by anti-democratic actors who frame migration not as a policy issue but as a cultural threat.&nbsp;
When these narratives move from online spaces to public rallies, they do more than divide opinion; they erode the social trust and pluralism on which democracy depends. Understanding how populist and far-right movements weaponise migration debates is crucial to recognising the early challenging signs of liberal democracy.
Immigration has become one of the most politically charged issues in Australia, not only because of the numbers but because of its entanglement with cost-of-living pressures, housing shortages, and rent spikes.&nbsp;
The latest Household, Income and Labour Dynamics in Australia (HILDA) <a href="https://www.unimelb.edu.au/newsroom/news/2025/september/how-we-live-latest-hilda-data-gives-insight-into-a-changing-australia">data</a> shows rising household financial stress as Australian households spending more on rent and income tax. These changes likely reflect a mix of economic and policy factors but create a lot of room for people to hold inaccurate and occasionally contradictory attitudes on these issues.&nbsp;
While net overseas migration has started to decline from its post-pandemic peak, public concern remains high, amplified by populist rhetoric. Some surveys have <a href="https://www.theguardian.com/australia-news/2025/feb/04/australians-want-less-migration-but-oppose-cutting-international-student-numbers-study-finds">revealed</a> a nuanced picture: most Australians want lower migration overall but oppose cutting international student numbers, and support targeted skilled migration to address workforce gaps.&nbsp;
As former Home Affairs Minister Clare O’Neil <a href="https://minister.homeaffairs.gov.au/ClareONeil/Pages/how-australia-broke-its-migration-system.aspx">argued</a> in 2023, Australia’s migration system is “broken and un-strategic”, not delivering for business, for migrants, or for the larger population. This is a situation that frustrates both sides of the debate and makes immigration an easy political flashpoint.
The recent <a href="https://marchforaustralia.org/">March for Australia</a> rallies turned these anxieties into street-level mobilisation. Tens of thousands <a href="https://www.bbc.com/news/articles/czjmre371l1o">protested</a> at what they called ‘mass immigration’, while far-right groups seized the opportunity to inject xenophobic slogans and calls for ‘remigration’ into the public space. These demonstrations were not only about visa caps or housing and jobs; they became performances of who is entitled to belong.&nbsp;
When immigration is framed not as a policy question but as a cultural test of Australianness, it risks shrinking the demos, the very community that democracy is meant to represent.
What made the March for Australia so striking was not only its size but its composition. Recent investigative reporting <a href="https://www.theage.com.au/politics/victoria/don-t-mention-hitler-and-you-re-sweet-the-great-march-for-australia-deception-20250909-p5mtlc.html">revealed</a> that neo-Nazi groups were not merely present at the March for Australia rallies but played a role in covertly organising them. They amplified messaging online, coordinated attendance, and sought to mask their involvement to broaden appeal.&nbsp;
This highlights that democratic erosion is rarely spontaneous; it requires actors who deliberately exploit social grievances, mistrust, and polarisation to mobilise anger for their anti-democratic ends. The banners reading ‘<a href="https://www.theguardian.com/commentisfree/2025/sep/01/how-do-i-feel-safe-after-march-for-australia-anti-immigration-protest-ntwnfb">Stop Immigration</a>’ revealed that public hostility towards migrants, <a href="https://www.afr.com/politics/federal/pressure-mounts-for-price-to-apologise-to-indian-australians-20250908-p5mt7x">particularly</a> from the Indo-Pacific, is growing.
For many migrants, these displays are more than conceptual debates about white national identity. They are experienced emotionally. Writing shortly after the rallies, Melbourne-based writer Jafrin Kabir <a href="https://www.theguardian.com/commentisfree/2025/sep/01/how-do-i-feel-safe-after-march-for-australia-anti-immigration-protest-ntwnfb">reflected</a> that she had never felt so foreign on Australian soil. She pays taxes and inflated rents, contributes skills in the national interest, cheers for the Tillies and calls Melbourne “home”, yet suddenly felt unsafe because of the origin and colour of her skin.&nbsp;
Similarly, Chinese national interviewed by media outlet <a href="https://www.scmp.com/news/china/diplomacy/article/3325127/i-feel-insecure-chinese-nationals-australia-blindsided-anti-immigration-marches">reported</a> cancelling weekend plans and feeling “blindsided” by the scale of the marches.
Scapegoating migrants especially in times of economic stress is an age-old phenomenon and is not just limited to Australia. Across the democratic world, from the United States to the UK and parts of Europe, hostility toward migrants and minorities has become a route for anti-democratic forces. Populist actors often <a href="https://www.theguardian.com/australia-news/2025/mar/27/peter-dutton-keeps-blaming-migration-for-the-housing-crisis-but-can-it-really-be-that-simple">use</a> cultural anxiety and demographic change to justify illiberal and undemocratic measures, claiming to restore order while actually dismantling checks and balances.
By analysing democratic decay, scholars like Lydia Khalil at the Lowy Institute, <a href="https://interactives.lowyinstitute.org/features/democratic-erosion/">argue</a> that democracies rarely break down at once. Instead, they incrementally weaken through vicious cycles: declining trust in institutions, entrenched division based on hate, the normalisation of political violence, and the bit by bit removal of norms and guardrails.&nbsp;
Though some of the conditions are present in Australia to be exploited by anti-democratic actors, for example, almost two-thirds of Australians believe their leaders intentionally mislead them, according to the <a href="https://www.edelman.com/au/trust/2025/trust-barometer">2025 Edelman Trust Barometer</a>, &nbsp;but their presence is not determinative.
Australia’s democratic guardrails remain strong: independent courts, transparent elections run by the AEC, and a free press continue to hold power to account. Federalism and active civil society further diffuse power and create space for contestation.&nbsp;
But if public trust continues to erode and social divisions deepen, these safeguards will come under strain. Early recognition and action are crucial to ensure that today’s street-level hostilities do not translate into institutional regression.
Preventing such outcome requires a socially embedded understanding of migration, an understanding that goes beyond simplistic optimistic and pessimistic views. Policy makers should go beyond Push-Pull models, functionalist and neoclassical and historical-structural theories.&nbsp;
Consulting the work done by <a href="https://www.guilford.com/books/The-Age-of-Migration/Haas-Castles-Miller/9781462542895#:~:text=International%20Population%20Movements%20in%20the%20Modern%20World,-Hein%20de%20Haas">Hein de Haas</a> et-el, migration should be conceptualised as an intrinsic part of broader processes of development, social transformation and globalisation rather than a 'problem to be solved'. We need more nuanced views that have an eye for the complexity of migration processes and the diversity of its causes and impacts.
Sohail Akhtar is a Melbourne- based researcher focusing on governance, public policy, and migration. He contributes to Lowy Institute Sydney.
This article was issued by the Toda Peace Institute and is being republished from <a href="https://toda.org/global-outlook/2025/is-street-level-hostility-a-challenge-to-liberal-democracy-reflections-from-australia.html">the original</a> with their permission.

Is street-level hostility a challenge to liberal democracy?

There was a time when journalism stood as the last wall between power and the people. Facts were sacred, truth was slow but solid, and credibility was the journalist’s only currency.&nbsp;
But today, that wall is collapsing—not because of censorship or corporate control alone, but because of the seductive lure of social media monetisation.
Even seasoned journalists from respected media houses are now opening their own YouTube channels, TikTok accounts, Facebook pages, X (formerly Twitter) feeds, and Instagram reels to earn directly from clicks and views.&nbsp;
Others write paid newsletters on Substack, record sponsored podcasts on Spotify, or stream “news commentary” on Twitch and LinkedIn Live. The platforms may differ, but the logic is the same: attention equals income.
And to earn attention, one must perform.
In this economy of algorithms, the truth alone is not enough—it must be dramatic. A headline must provoke, a thumbnail must shock, and a caption must trigger emotion. Journalism has turned into theatre, where facts compete with feelings for visibility.
When every click means money, the line between journalism and entertainment evaporates. Subtlety dies. Complexity vanishes. Sensation rules. A small dispute becomes a ‘national scandal’, a harmless rumour becomes ‘breaking news’, and the private pain of individuals becomes public spectacle. The more outrage it provokes, the higher the revenue.
Even responsible journalists—those who once double-checked every fact—are now caught in this trap. They post multiple short videos a day, often with half-verified claims, provocative thumbnails, and exaggerated titles. They pick up anything that ‘performs well’—from celebrity gossip to moral outrage—because everything now has content value.
This transformation is not only embarrassing for journalism; it is dangerous for democracy.
Social media platforms like YouTube, TikTok, Facebook, Instagram, X, and Threads do not reward truth—they reward engagement. The algorithms favour emotional content, not ethical content. Outrage spreads faster than reason. As a result, public discourse is shaped not by facts but by friction.
What happens when the nation’s journalists start competing with influencers for attention? When the same person who once reported corruption stories now makes reaction videos for income? The profession loses its dignity, and the audience loses its trust.
It is not that journalists suddenly became unethical—it is that the system has turned them unethical. Platforms pay for popularity, not integrity. Those who play by the rules of truth struggle to survive; those who play by the rules of virality thrive.
This is how the soul of journalism is being auctioned—one click at a time.
Should truth depend on algorithms designed to exploit emotion and outrage?
Can democracy survive when facts are filtered through the logic of monetisation?
If journalism becomes just another hustle for followers and income, the cost will not be limited to credibility—it will be the collapse of civic understanding.
Media houses, journalists, and audiences alike must reclaim journalism from this marketplace of noise. Let news return to its true purpose: to inform, not to inflame. To reveal, not to perform.
Because once we trade truth for entertainment, we won’t just lose journalism—we’ll lose our ability to tell the difference between reality and the show.
Sunil Babu Pant is Executive Director, &nbsp;Mayako Pahichan and founder of Blue Diamond society.

When truth becomes clickbait

The United Nations turned 80 this year. What should have been a moment of pride and celebration at the high-level session of the UN General Assembly in September 2025 turned instead into an occasion of bitter irony.
At the UN Headquarters in New York—fittingly located in the host country that once helped found and champion the organisation—the loudest fireworks came not from commemoration but condemnation.&nbsp;
The President of the United States, boasting that he had “ended seven wars in seven months while the UN did nothing,” derided the very purpose of the institution. He dismissed climate change as a hoax, renounced the Sustainable Development Goals, and mocked multilateralism as an obsolete bureaucracy.
That outburst was shocking, but not surprising. The UN has long been an easy target for populist politicians. Yet even as it endures ridicule and neglect, the truth remains: if the UN did not exist, the world would have to create it again.
An Imperfect but Indispensable Institution
The UN’s failures are glaring and often heartbreaking. As the wars in Ukraine and Gaza rage on—each aided and abetted by two Permanent Members of its Security Council—the organisation looks helpless, capable only of issuing pleas and providing meager humanitarian aid.&nbsp;
Its impotence is evident again in Haiti’s gang warfare, Myanmar’s and Sudan’s military atrocities, Afghanistan’s gender apartheid, and North Korea’s saber-rattling, just to name a few.&nbsp;
It is easy to blame “the UN,” but the real culprits are its Member States—especially the five veto-wielding powers of the Security Council, who too often place narrow national interests above global security. Many others strangle the UN with grand resolutions and lofty mandates but fail to fund them.
Hiding behind sovereignty, many governments oppress their citizens, foster corruption, and neglect their global commitments. Meanwhile, the richest nations, capable of lifting millions from poverty, pour trillions of dollars into their militaries.
Still, despite its flaws and frustrations, humanity cannot afford to abandon the United Nations. The challenges of our time— poverty, climate change, pandemics, terrorism, cybercrime, and mass displacement—are “problems without passports.” No nation, however powerful, can solve them alone. Only collective action through a multilateral system can address the interconnected crises that define the 21st century.
For smaller or poorer nations, the UN is an amplifier of voice and leverage. Acting together, they can negotiate more fairly with the powerful. For big and powerful nations, the UN provides legitimacy and a framework for cooperation that unilateral action can never achieve.
The UN, for all its imperfections, remains a mirror of our world: it reflects both our aspirations and our divisions. Its hypocrisy is our hypocrisy; its failures are our failures. Resolutions without resolve and promises without action are the true reasons for its ineffectiveness.
Yet amid the cynicism, it is worth recalling that the UN and its agencies have earned 14 Nobel Peace Prizes—more than any other institution in history. That is no small testament to its contributions to peacekeeping, humanitarian relief, human rights, and development.&nbsp;
But it cannot rest on past laurels. If the UN is to remain relevant, it must transform itself to meet the demands of a rapidly changing world.
Time for Tough Love and Real Reform
UN Secretary-General António Guterres has launched the UN@80 Initiative to sharpen the system’s impact and reaffirm its purpose. A recent system-wide Mandate Implementation Review uncovered a staggering reality: over 30% of mandates created since 1990 are still active, and 86% have no sunset clause. Many require the Secretariat and specialized agencies to carry them out “within existing resources”—an impossible task.
Hundreds of overlapping resolutions and reports clog the UN’s machinery, sustained by bureaucratic inertia and Member States’ appetite for endless paperwork. Too many meetings produce too little action.
Technology now offers a way out. Artificial intelligence can consolidate and streamline reporting, freeing up resources for real work. Likewise, the frequency of governing board meetings—three times a year for agencies like UNDP, UNICEF, UNFPA, UN Women, and WFP—could be reduced without sacrificing accountability.
Facing financial crisis, political hostility from major donors, and a proliferation of unfunded mandates, the UN has no choice but to rationalize its structure. Some agencies will have to merge or move their operations from costly headquarters in New York and Europe to lower-cost locations in Africa, Asia, and the Middle East.
UNICEF has already taken the lead with its “Future Focus Initiative,” with plans to cut headquarters budgets by 25% and relocate 70% of its staff to more affordable hubs such as Bangkok, Nairobi, or Istanbul. Such moves can reduce expenses, bring the organisation closer to the field, and align it better with the realities of today’s world.
At the same time, the UN must take advantage of the tremendous growth in professional capacity within developing countries. Many of these nations now produce highly qualified experts who can serve effectively—and at lower cost—than expatriates from the Global North.&nbsp;
UNICEF pioneered this decades ago by hiring national professionals in its field offices. Expanding this practice system-wide would not only save money but also strengthen local ownership and credibility.
These are sensible, short-term measures. But they only scratch the surface. The real test of leadership lies in tackling the deep structural reforms that have eluded the UN for decades.
The Hard Reforms: Power, Accountability, and Money
Democratizing the UN: The UN’s mission is to promote peace, democracy, development and human rights—but its own structure remains profoundly undemocratic. The Security Council’s five permanent members hold veto power that can paralyze action even in the face of genocide or aggression.
That provision might have made sense in 1945, but it is indefensible in 2025. Yet changing it requires the consent of those same five powers. Only enlightened leadership in those countries and sustained public pressure globally can bring about reform.
Democratisation must also extend to how the UN’s top leaders are chosen. The Secretary-General and heads of major agencies are still selected through opaque bargains among powerful nations. These posts are often “reserved” for certain nationalities rather than awarded on merit. The UN must move toward a transparent, merit-based system if it hopes to regain credibility.
Reviving the “Responsibility to Protect”: Too many regimes hide behind the shield of sovereignty to oppress their own people. The world leaders agreed at the UN Millennium Summit in 2005 that when a government fails to protect its citizens—or worse, becomes their tormentor—the international community has a Responsibility to Protect (R2P). The 2024 Pact for the Futurereaffirmed that principle.
But R2P has rarely been applied because powerful nations invoke it selectively—protecting their allies and condemning their rivals. True leadership would mean upholding R2P universally, without double standards.
Disarmament and Development: The UN was founded to prevent war. Yet worldwide military spending now exceeds $2.7 trillion a year—nearly $7.5 billion every day. NATO countries are expanding their defense budgets even as social spending shrinks and commitments to the poor are cut.
This is moral madness. Humanity needs fewer weapons and more investment in sustainable development. Redirecting even a fraction of global military spending toward the Sustainable Development Goals would do more to secure peace than all the bombs in the world.
Fixing the UN’s Finances: Money and power often speak louder than moral authority at the UN. The United States contributes about a quarter of the UN’s regular budget—and uses that leverage to exert disproportionate influence. Other large donors do the same.
In 1985, Swedish Prime Minister Olof Palme proposed a simple remedy: no single country should pay—or be allowed to pay—more than 10% of the UN’s budget. That would reduce dependence on any one donor while requiring modest increases from others. Ironically, Washington opposed it, fearing it might lose influence.
Reviving that proposal today could help depoliticise UN financing and make it more sustainable. The UN should also expand partnerships with private philanthropy, foundations, and innovative sources such as taxes on global financial transactions or the use of the global commons. Such mechanisms could liberate the organisation from the recurring hostage drama of budget threats and withheld dues.
A Hopeful Horizon
History rarely moves in straight lines. Progress often comes two steps forward and one step back. Today, the post-World War II international order is fraying, and populist nationalism is resurgent. But in the long arc of human history, the movement toward global cooperation is irreversible.
We are slowly—but surely—evolving from primitive tribalism to modern nationalism and onward toward shared global solidarity. Multilateralism may be under siege, but it will rise again, reimagined and renewed, because our interdependence leaves no alternative.
I take hope from the energy and courage of Generation Z across the world—from Nepal and Bangladesh to Kenya, Indonesia, Morocco, and beyond. Young people are challenging corruption, inequality, and authoritarianism, and they see themselves increasingly as global citizens, connected through technology and united by shared aspirations rather than divided by borders or dogma.
If we can offer these young citizens opportunity and justice instead of inequality and despair, we will see the dawn of a more cooperative, humane, and equitable world. That, in turn, will breathe new life into the United Nations—still imperfect, still indispensable, and still humanity’s best hope for promoting peace and prosperity.
Republished under an arrangement with Inter Press Service (IPS).

Kul Chandra Gautam

Quo Vadis UN @80?

With Saturday's deadline on Malaysia’s announcement of new criteria for selecting private recruiting agencies for migrant workers having lapsed, Nepal and Bangladesh have rejected the conditions.
The Malaysian move three weeks ago came in the aftermath of deadly GenZ riots in September, when Nepal’s interim government does not have designated heads in the Foreign Ministry and the Labour Ministry.
Interim Prime Minister Sushila Karki instructed the Labour Ministry to examine the implications of the standards and recommend appropriate steps to address them, but it has said it cannot send Nepali workers to Malaysia based on those criteria.
“In line with Nepal’s foreign employment policy and regulations, we are currently unable to accept or implement the proposed criteria,” says Pitambar Ghimire, spokesperson at the Ministry of Labor, Employment and Social Security in Kathmandu.
In response to the government’s request for their opinion on the Malaysian stipulation, the Nepal Association of Foreign Employment Agencies (NAFEA) has also flatly rejected the criteria, saying it could create a harmful syndicate and restrict fair competition, violate Nepal’s Constitution and laws, and increase recruitment fees that workers must pay.
On 25 October, the Malaysian Ministry of Foreign Affairs sent letters to the governments of Nepal, Bangladesh, Burma, Pakistan and India with 10 criteria meant to ‘rationalise the number of licensed private recruitment agencies permitted to facilitate recruitment and placement of workers to Malaysia’.
The proposed criteria include: at least five years of operating experience, deployment of 3,000 workers in the past three years of operation, experience sending workers to at least three countries, valid licenses and good conduct certificates, five employer testimonials, operating their own training and accommodation centres, and even a requirement for the staffing agency to have a 10,000 sq m office maintained for three years.
“We have communicated our views to the Ministry of Foreign Affairs, and have proposed discussing various labour related matters with our Malaysian counterparts diplomatically through bilateral dialogue and negotiations including renewal of the Nepal-Malaysia labour agreement,” Pitamber Ghimire said.
NAFEA has urged the government to prevent this measure from moving forward using diplomatic channels, and has held &nbsp;several gatherings and press conferences opposing the proposal since the Malaysian letter was received three weeks ago.
“We have taken commitment letters from members that they will not be engaged in activities related to the syndicate,” said Sujit Shrestha of NAFEA. “And if they break the commitment, they will face consequences including the revocation of their NAFEA membership. These letters also send a strong message to the government that this is irrevocably and collectively rejected by the industry.”
Bangladesh has also not accepted the proposal despite the 15 November deadline to send a list of recruiters that meet the criteria. That in itself would have been an impossible task to complete to begin with even if the government had accepted the proposal.&nbsp;
According to media reports, Bangladesh has sent a letter to the Malaysian government requesting that three of the proposed criteria be relaxed. This includes flexibility regarding the requirements for a 10,000 sq ft office, a dedicated training center, and the condition of having deployed 3,000 workers in the last five years. Despite the official request to Malaysian authorities, the Bangladeshi Government has also been collecting applications from recruiters who meet Malaysia’s proposed criteria, raising confusions about the contradictory stance.&nbsp;
Just like NAFEA, the recruitment association in Bangladesh, the Bangladesh Association of International Recruiting Agencies (BAIRA) has also outright rejected the proposal including in a letter to the Bangladeshi government, calling the criteria ‘unprecedented and exclusionary, unreasonable, discriminatory and syndicate-driven &nbsp;that would effectively disqualify 99% of legitimate agencies from participation’.&nbsp;
Now that the ball is back in Malaysia’s court and the proposal has not gained much support from two of the major origin countries, it will be interesting to see how they respond.

Nepal, Bangladesh reject Malaysian conditions

Nepal’s September protests and regime change created two major unexpected costs that Prime Minister Sushila Karki’s interim government is scrambling to deal with: reconstruction of destroyed government buildings, and holding elections on 5 March.
The buck stops at the desk of economist and former bureaucrat Minister of Finance Rameshore Khanal about where and how to spend limited resources.
“Rameshore-ji is a fresh face and the right person for the role. He is capable and interested, and he knows the system,” says Kalpana Khanal of the Policy Research Institute (PRI).
But Minister Khanal has to grapple not just with the immediate budgeting needs for elections and reconstruction, but also initiate longer term measures to restore investor confidence badly dented by arson and vandalism of 9 September, and mend the economy.
Immediately after taking office, he had set up a three-member task force to cut programs and free up budget to meet immediate expenses.
“We have to hold elections and we have to reconstruct. Both need money, and they are equal priorities for us,” said Ministry of Finance spokesperson Tanka Prasad Pandey. “It is important to find these funds internally, and not look to aid from abroad.”
But Minister Khanal flew into heavy flak last week for his decision to restore investor confidence by giving a strategic capital gains tax break to Nepal’s only foreign private equity fund.
The Mauritius-based Dolma Impact Fund has invested venture capital into Nepal’s hydropower, construction and biotech sectors as well as solar farms and hospitals. It said in a statement that its capital gains are only taxable in Mauritius as per its double-taxation avoidance agreement with Nepal, which predates and overrides the Income Tax Act of 2002 subsequent to the Treaty Act 1990.
“When you have investors from all over the world, you have to choose a domicile and Mauritius is probably the most popular for development finance institutions due to strong governance, AML, and treaties with developing countries like Nepal,” Tim Dolma Investment told Nepali Times on the phone from London.
He added: “Last June we applied for the government to uphold its treaty with Mauritius which under all country laws including Nepal treaty act supersedes any disagreement with domestic laws. But there were delays. It was when the new government decided to uphold the treaty that the whole hoo-hah started.”
Leaks to the media possibly by bureaucrats fearful of being hauled over the coals by the CIAA has set financial circles abuzz for the past week. The Internal Revenue Office refused to grant the exemption, citing the 2002 Act.
Prime Minister Sushila Karki asked Chief Secretary Eaknarayan Aryal for clarification, and learnt that the Cabinet’s decision was not official since it was not recorded in the minutes.
“We were raising a fund that could have brought $1 billion in for energy and we had to stop it due to the reputational damage to Nepal by not upholding an international treaty,” said Gocher.
Gocher added: “Under Nepal’s Treaty Act, if there is ever disagreement between an international treaty and domestic law, then international treaty takes precedence so it is crystal clear and the way international treaties are dealt with all over the world.”
Some experts worry that gifting the fund such perks can set a dangerous precedent and a loss in tax revenue. Professor and economist Pushkar Bajracharya says: “The most important thing is to have a consistent policy about tax cuts and not do it piece-by-piece. Besides, the evidence just isn’t strong that tax cuts lead to higher investment, or more jobs.”
Others hark back to the capital gains dispute of the sale of Ncell ownership, which went to the Supreme Court and all the way to the international tribunal in The Hague.
Khanal has said privately that he is responding to the damage to Nepal’s investment climate from the dramatic visuals beamed worldwide of an international hotel chain and government buildings set ablaze in September. Western embassies are also said to be lobbying to allow Dolma tax exemption and smooth profit repatriation.
There are tradeoffs. Private equity funds like Dolma could funnel foreign funds more efficiently towards successful Nepali companies than the government, which is slowed down by many layers of bureaucracy. The downstream multiplier effect of such investments would outweigh taxes to the government since much of it is misused and wasted.
For example, the government is not taxing income in FY 25/26 generated by the US-funded $697 million Millennium Challenge Corporation (MCC) projects to build transmission lines and upgrade highways.
Strategic tax exemptions do provide incentives to investors, to make sure these projects are carried out effectively, which in turn helps Nepal’s development which has been affected by corruption and mismanagement.
The main demand of the GenZ protests that led to the downfall of the government coalition two months ago was to control corruption and make government more efficient so there is investment and job creation. The interim government seems to be responding to that sentiment.
The Dolma issue has distracted from the larger and longer-term need to reform the country’s financial systems and streamline public expenditure. How to reduce corruption and spur development is going to be the main agenda for elections, and the criteria by which voters will select candidates and parties.
TASKED FORCE
Shortly after Rameshore Khanal was appointed he set up a three member task force made up of the heads of Budget and Program, Foreign Aid, and Revenue Management Divisions. The team sent through the budget culling items DOGE-style — projects deemed ‘inadequately prepared,’ ‘fragmented,’ or ‘included through political pressure.’
Khanal hoped to save up to Rs100 billion by cutting all projects less than Rs30 million. However, such a slash and burn method would hurt rural and remote area projects for health and education more, and much bigger corruption-ridden infrastructure projects would be unscathed.&nbsp;
Says Bajracharya, “There are thousands, maybe hundreds of thousands of low-return programs in the budget that are there because of political or personal influence. But the criteria for cutting them needs to be properly defined. Doing it arbitrarily is unacceptable.”&nbsp;
Kalpana Khanal of the Policy Research Institute was involved in the taskforce, and explains: “The decision to mobilise internal funds is a pragmatic move to fund elections and reconstruction.”
However, she also singles out the massively-funded Ministry of Physical Infrastructure and Transport as being particularly problematic: “Time and cost overruns are historically the norm, and many are ‘vote bank’ projects that are politically motivated rather than done for return on investment.”
For example, politicians use their influence to build roads to their home districts to secure popularity even if the funds would have been better spent elsewhere.
“Another problem is the amount of funds that are transferred randomly for things that outside the budget,” continues Khanal.
Bajracharya adds, “While reconstruction and elections are big financial commitments, Nepal could easily find the funds. Cancelling low impact programs is a good move by the ministry of finance, and another option could have been to raise customs or taxes by a few percent. The main problem is that a huge amount of funds are lost to corruption.”
Kalpana Khanal and Dilli Raj Khanal co-authored a technical report last year titled Improving Public Expenditure System in Nepal: Critical Areas of Reform which did a forensic examination of such wasteful projects.
The conclusion: recommendation to have stricter accountability measures in place to check the actual use of funds and merit-based appointments in the National Planning Commission, Ministry of Finance, and the CIAA.
The technocrats in Prime Minister Karki’s cabinet resonate with the latter point. Nepal is so entrenched in the ‘afno manche’ culture of nepotism and connections that it has become the norm.
The report also refers to the well-known off-budget ‘re-allocations’ of big outlays during the seventh and first months of the fiscal year that undermine in-built check and balance. Almost a quarter of the budget is spent in the last month, which results in low quality and low impact work.
The authors call for reward and punishment systems to prevent these practices. The CIAA could also be supercharged to build transparency into the digital Line Ministry Budget Information System, instead of being an agency for political vendetta.

Nepal needs to use its money better

At the opening plenary of COP30, which stands for the convolutedly named 30th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), in Belém on Tuesday, Nepal brought up the threats to the Himalayan watershed. Nepal’s delegate Rajendra Prasad Mishra, Secretary at the Ministry of Foreign Affairs, also spoke on behalf of Bhutan and Bangladesh after the three countries formally called for tripling grant-based adaptation financing from 2015 levels to at least $120 billion per year by 2030, and to ensure a more simplified, scaled-up access to finance their National Determined Contributions (NDCs) to reduce emissions and adapt to climate impacts. “Bhutan has already graduated from Least Developed Country (LDC) status, while Bangladesh and Nepal are in the process of graduation,” said Mishra. “Graduation reflects development progress, but does not reduce our climate vulnerability nor the scale of support required to safeguard development gains.” The Loss &amp; Damage Fund is also finally coming into effect, so countries can now apply for $5-20 million to make up for damage from climate impact. But claiming damage and linking disasters to climate breakdown has not been an easy process. “When a 200MW hydropower plant is destroyed by a glacial flood, it is a big loss for Nepal’s GDP. Every megawatt costs us $20 million to build,” says energy entrepreneur Kushal Gurung. “Our lobbying should be top-notch, and hydropower can make a good case for us.” Belém marks the tenth anniversary of the Paris Agreement that brought the world together to pledge to keep global average temperature to ‘well below’ 2°C above pre-industrial levels and limit it to 1.5°C.&nbsp; COP has also returned to Brazil after 30 years of the Rio Conference in 1995. Since then there have been numerous summits, which have been criticised for being just hot air and being hosted by fossil-fuel exporting countries like UAE and Uzbekistan. Belém was selected because it is a gateway to the Amazon, but Brazil has now also become a major oil producer after new offshore finds. A recent report shows that compared to 2019, the world is set to reduce its emissions by 12% in 2035 if countries are to implement their Nationally Determined Contributions even though the figure needs to go up to 40% to meet temperature targets. There has been progress. Before the Paris Agreement the world was on a path for 4°C increase during this century, and this has now come down to 2.5°C because of the clean energy transition. But a lot more needs to be done to meet the Paris 1.5°C target. “This progress is proof that multilateralism is working, it is delivering,” Manjeet Dhakal of the Climate Analytics South Asia told us from Belém. “Having said that, it is simply not enough. Emissions need to go down much further, and a lot of it is tied to developed countries providing climate finance to do so.” Many developing countries have adopted ‘conditional NDCs’ which means their emission reduction targets cannot be met without international climate finance. In its third NDC, Nepal set a target of a 17.1% reduction in net greenhouse gas emissions and 26.8% by 2035. But achieving that has a price tag of &nbsp;$73.74 billion, with much of it from international climate finance. UNDERFINANCED However, the climate for climate finance is getting worse. The United States has exited from the Paris Agreement for the second time under President Trump, and there are cutbacks in foreign aid by European funders. Even so, the EU has committed to reducing its emissions by 90% in the next 15 years, 85% of which will be domestic emission cuts. The silver lining in all this is that the leadership in climate action is increasingly being taken by Nepal’s neighbours China and India with both investing heavily in renewable energy. China is the world leader in solar panels, wind turbines and electric vehicles, and Nepal has already taken strategic advantage of this.&nbsp; With expensive hydropower plants increasingly at risk from glacial lake outburst floods, experts say Nepal must diversify its energy mix and invest in solar power which has 10 times more potential than hydropower at 432 gigawatts with over 300 days of sunshine a year. Solar farms can also power pump storage, which are cheaper and quicker to build.&nbsp; China has drastically reduced the cost of photovoltaic cells, making such schemes more feasible. Nepal just needs to ease up its restrictive domestic energy policies, boost investment and resist geopolitical pressure on electricity generation. “First, we need to increase the cap on solar energy from 10% to 30%, and next, the bidding process should be made easier, or just have the first past the post system like that for hydropower,” says Kushal Gurung. The disadvantage of solar power is that it generates only daytime energy, but this can be solved with grid-scale battery storage or pump storage. But first, the government needs to fix the rate for solar purchase so that entrepreneurs are incentivised. “This is not happening because our government officials and engineers are comfortable dealing with hydropower, and are not just updated about the latest advances,” says Gurung. “As a result, we have no clear policies when it comes to solar.” Hydropower has become one of the biggest industries in Nepal with an installed capacity of over 3,400MW and the government’s target is to produce 28,500MW in the next ten years. But the recent climate disasters have made it clear that relying only on hydropower alone is too risky. The Nepal-Tibet glacial flood in July destroyed and damaged four hydropower plants and substations along the Bhote Kosi, and last September’s floods slashed the country’s total generation by half. Nepal now needs to build on the widespread adoption of battery-powered vehicles by extending it to electric public transport and for household appliances like stoves, rice cookers and refrigerators. Not only would this reduce Nepal’s per capita carbon footprint, but it would also reduce the country’s annual Rs300 billion petroleum import bill. At global platforms like UNFCCC, it is easy even for individual developed countries to get lost without an alliance. Now that Nepal is graduating from LDC status, it needs to have strong partners with a common goal to move forward in international negotiations. Says Kushal Gurung: “We won’t have privilege that came with LDC status anymore, which means climate finance will be even more limited. But there are a few things we can urgently do on our own like regulating the carbon credit market.”&nbsp; This article is brought to you by <a href="https://nepalitimes.com/" target="_blank">Nepali Times</a>, in collaboration with <a href="https://inpsjapan.com/en/" target="_blank">INPS Japan</a> and <a href="https://sgi-peace.org/" target="_blank">Soka Gakkai International</a>, in consultative status with UN ECOSOC.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251118101116_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_3" data-image-id="20251118101116_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="Nepali Times SDG"> </figure>

Global warning bell in Belém

As people move out of Nepal’s trans-Himalayan districts, their faiths migrate with them to the cities and all over the world. The ancient animist faith of Bon Po predates the advent of Buddhism in Tibet, and its last remaining priests and devotees are found in villages like Lubra in Mustang and Samling in Dolpo. But as those villages empty out, Bon centres can now be found as far afield as Kathmandu, New York and Tokyo. The first Triten Norbutse Monastery was founded in Tibet in the 14th century by the Bon Master Shen Nyima Gyaltsen. Its monastery in Nepal is below the forested hills of Ichangu on the western outskirts of Kathmandu.&nbsp; Many are surprised to hear that there is a Bon centre in Kathmandu, and that it is located so close to Swayambhu. This Triten monastery was established by Yongzin Tenzin Namdak Rinpoche only 40 years ago to cater to adherents of the faith who lived in the capital. True to its reverence for nature, the shrine is verdant, with plants and flowers amidst a contrasting backdrop of Kathmandu’s ugly urban sprawl below. The monastery practices Bon culture and passes on teachings to students as well, who after completing 15 years of study graduate to become ‘Gese’.&nbsp; It is believed that Bon Po was brought to Nepal from Tibet by Tonpa Shenrab Miwoche. Over the centuries, Bon and Buddhism have become syncretic in Dolpo and Mustang, despite the differences in their belief systems. Followers worship nature and consider the human body, speech and mind as jewels. The human body is said to be composed of five elements: earth, water, fire, air, and the cosmos.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111148_ce5d50db6757c4f5a7259c10d2879ee5f5b7b990e987bf3734378ba464afc9d5.jpg" data-media-id="editor_0" data-image-id="20251113111148_ce5d50db6757c4f5a7259c10d2879ee5f5b7b990e987bf3734378ba464afc9d5" data-rendition-name="original" width="5712" height="4284" loading="lazy" alt="The Bon Po way of life NT"> </figure>  The Bon faith was much more widespread during the reigns of Nyathi Chenpo, the first king of Tibet to Namri Srongchen, the 32nd king. But it was after King Srongchen Gompo that Buddhism started making inroads on the plateau, and spread also in the Himalayan rimlands. There are also Bon followers in Humla, Jumla, Baglung, Mugu, Kaski and Chitwan, as well as in the United States and 50 other countries, indicating the movement of people within Nepal and outside.&nbsp; The Bon religion believes in reincarnation and that everything, including positive and negative thoughts are a result of past life karma. Buddhism focuses more on attaining Nirvana, a state of no suffering, where the subject is released from all his/her karmas. Bon has also inducted some Tantric practices and rituals, some of which are in parts similar, yet still different from Buddhism.&nbsp; “In Buddhist culture, circumambulation of shrines is clockwise, but in Bon culture, circumambulation is in an anticlockwise direction,” explains Chhiring Lama of Triten Norbutse Monastery. “The main Bon mantra is Om Ma Tri Mu Ye Sa Le Du, while followers of Buddhism chant Om Mani Padme Hum. Buddhism emphasises enlightenment by meditation and moral behaviour, while Bon beliefs centre on nature and ancestor worship, and placating the spirits. In religious texts, it is mentioned that there were 1,008 Buddhas throughout time. Tonpa Shenrab is believed to be the 8th Buddha, and Bon practitioners are guided by his teachings contained in 140 sacred writings known as Kangyur and 300 more scriptures known as Katen.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111152_9813ce72805941af4b3bfb3c80c7e45ffc8aca4f2612eb967e84204f3a28bc07.jpg" data-media-id="editor_1" data-image-id="20251113111152_9813ce72805941af4b3bfb3c80c7e45ffc8aca4f2612eb967e84204f3a28bc07" data-rendition-name="original" width="4032" height="3024" loading="lazy" alt="The Bon Po way of life NT"> </figure>  “We worship nature and its elements and the prayer flags contain religious texts and when the wind blows through it we consider it a prayer,” says Chhiring Lama. “We also worship ponds for the water and consider fire as a sacred element as well. We also consider snakes sacred, therefore worship ponds, considering them as the place of residence.” The interdependence between human beings and nature is clearly depicted through such traditions and practices which carry relevance today as the planet faces the crisis of climate breakdown.&nbsp; Important gods worshiped include Satrig Ersang, Shenlha Okar, Sangpo Bumtri, and Tonpa Shenrab Miwoche. But what is similar to Buddhism is an offering known as ‘torma’, a cone shaped ritual offering made from flour dough. Many Bon faithful are vegetarian, or abstain from meat during festivals.&nbsp; Over time, the rise of Buddhism in Tibet and beyond overshadowed Bon, pushing many of its practices to the margins. Yet, the tradition continues to live on, carried by those who see in it a deep connection to nature, the spirit world, and the roots of Tibetan culture.&nbsp; In many ways, the endurance of Bon is a reminder that even the quietest faiths hold timeless truths, waiting to be remembered and valued. Followers of Bon today are far fewer, and the knowledge about its traditions is not as widespread.&nbsp; “As time goes on, people adopt rituals and cultures that are more convenient to their daily lives,” says Chhiring Lama. “But that means forgetting or leaving behind one’s indigenous and ancestral roots.”