<figure><img width="623" height="426" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111011110/636ccc0d9c7e80680e08bbffjpeg.jpg" alt=""/><figcaption>Meeting Daw Aung San Suu Kyi in Yangon in 1998.</figcaption></figure>The 1 February 2021 coup d’état by Myanmar’s military (Tatmadaw), has been widely condemned by all the world’s democratic leaders, human rights activists and genuine <a href="https://www.nepalitimes.com/latest/kathmandu-remembers-aung-san-suu-kyi/" target="_blank" rel="noopener noreferrer">friends of the people of Myanmar</a> around the globe. In an unusual manner for the world’s top diplomat, UN Secretary-General Antonio Guterres has gone so far as to urge the world community to make sure that Myanmar’s military coup fails. 
Like many other world leaders, he urged the military leadership to respect the will of the people of Myanmar as expressed in the 8 November 2020 general elections that gave Aung San Suu Kyi’s National League for Democracy (NLD) Party a resounding 83 % of the popular vote. Guterres called the reversal of those elections “absolutely unacceptable”.
Notwithstanding the Secretary-General’s strong call, the most powerful organ of the UN, the Security Council, issued a mild statement that failed to condemn the coup because of strong objection by China, a veto-wielding member of the Council with significant economic interests in Myanmar. Reflecting the Beijing government’s views, China’s state news agency Xinhua referred to the military coup simply as a “major Cabinet reshuffle”.
Given the potential veto by China and Russia (both permanent members of the Security Council that sell huge quantities of arms to Tatmadaw), it is unlikely that the Council will muster the courage or the unanimity needed to intervene or impose stern sanctions against the military junta.
However, even an indirect condemnation of the coup and a call for restoration of democratic institutions and respect for people’s human rights sends a clear signal of solidarity of the international community to the people of Myanmar to fight for their rights.
Donald Trump’s impact
The ostensible reason for the Tatmadaw’s putsch is their objection to apparent electoral irregularities in the November 2020 elections in which the military-backed Union Solidarity and Development Party (USDP) suffered a humiliating defeat.
Coincidentally, the Tatmadaw’s charges of massive electoral fraud in Myanmar sound very similar to those of the former US President Donald Trump’s discredited claims of similar electoral fraud in the US presidential election. Indeed, the Trump administration’s cuddling of authoritarian regimes may have given some encouragement to the Burmese junta.
The junta was certainly aware that its power grab would be condemned by the new Biden administration in the US, the European Union and other democratic governments, and human rights groups around the world. But knowing it can count on strong support of China and Russia, and tacit approval or acquiescence of its ASEAN neighbors and India too, seems to have given it the confidence that it can afford to withstand the opprobrium by the rest of the world.
The fact that Aung San Suu Kyi’s international stature has greatly diminished in recent years was probably another factor in the military’s calculation to dare to overthrow her.
However, it is difficult to fathom what Tatmadaw’s long-term calculations and strategy are. For an army that is despised by a large majority of the people of Myanmar, because of its decades of oppression and corruption that has gravely retarded the country’s development, it already enjoys a very favorable position under the current power-sharing arrangement with Suu Kyi.
It can appoint 25 percent of the members of parliament. It controls three of the most powerful government ministries in charge of national security. It is allowed to carry out very lucrative business ventures that has made many army generals among the richest people in the country.
The current power-sharing arrangement is such that if the elected government fails, the blame would go largely to its leader Aung San Suu Kyi, but if it succeeds the Tatmadaw too could claim some credit and brag that the Myanmar model of power-sharing works!
It is, therefore, baffling to figure out why the military would give up such a sweet-heart deal in pursuit of an uncertain future knowing that the putsch would push the country into the ranks of a pariah regime once again.
The speculation is that either the Tatmadaw leadership was fearful of the NLD government clipping its current prerogatives by attempting to amend the army-imposed constitution or more likely the top General Min Aung Hlaing’s inflated personal ambitions led him to make this pre-emptive strike.
Outfoxing each other 
A decade ago, Tatmadaw and Aung San Suu Kyi negotiated a power-sharing deal. After Suu Kyi’s NLD Party scored a sweeping victory in the 2015 elections, Myanmar became the democratic darling of the world. It heralded the end of Myanmar’s international isolation, the blossoming of a relatively free media, as well as an explosion of social media.
Young Burmese flocked to the Facebook, Instagram and Twitter, followed by their elders soon afterwards. Tourism started flourishing. Foreign investment, particularly from neighboring ASEAN countries, and especially, China boomed.
International media and NGOs, banned during the military regime, flocked to Myanmar. And UN agencies severely constrained by highly restricted mandate and shortage of funding because of sanctions against the military regime by Western donors got a new lease of life and expanded their operations.
But the euphoria of Myanmar’s transition away from military rule to a seemingly liberal democracy was premature and exaggerated. It was more wishful and hopeful than the ground realities justified.
In the power-sharing deal she entered with Tatmadaw in 2011, Suu Kyi tentatively accepted the 2008 Constitution drafted by the military with a view to perpetuating its dominance on all key issues of “national security” under the garb of a pro-forma electoral democracy.
With her confidence in securing overwhelming election victory, Suu Kyi’s calculation was that she will be able to outfox the Tatmadaw and amend the constitution to weaken or eliminate the military’s power, and strengthen genuine democracy.
But it appears that the Tatmadaw actually outfoxed Suu Kyi. It even got her, a Nobel Peace Prize laureate, to condone the military’s ethnic cleansing and genocidal oppression of the Rohingya Muslims and to cuddle Burman Buddhist xenophobia.
To the consternation of the international community, but continuing adulation of the ethnic Burman population, it turned out that as a politician Suu Kyi and Tatmadaw shared many common Bamar ethno-nationalist sentiments and deeply held prejudices against most non-Bamar ethnic communities, particularly the Rohingya Muslims, questioning their status as equal and patriotic citizens of Myanmar.
Forming and Spurning the Kofi Annan Commission 
Stung by international criticism of Tatmadaw’s brutal oppression of the Rohingyas, and as a face-saving gesture, in 2016 Suu Kyi formed an international Advisory Commission on Rakhine State headed by former UN Secretary-General Kofi Annan to propose measures to ensure the social and economic well-being of both the Buddhist, the Muslim and other ethnic communities in Myanmar’s conflict-ravaged regions.
In my view, this Commission came up with the best possible recommendations and a roadmap for not only Rakhine state but to ensure a sustainable, democratic, prosperous and equitable multi-ethnic future for all of Myanmar. But Suu Kyi essentially cold-shouldered Annan’s recommendations, perhaps fearing that the military would never accept them.
Inspired and disappointed by Suu Kyi
As a senior UNICEF official in the 1990s and 2000s, I had the opportunity to meet and interact with Suu Kyi as well as several senior Burmese military leaders, including the seemingly progressive General Thein Sein when he was the powerful Secretary-1 of the State Peace and Development Committee (SPDC) who later became Prime Minister and the first “elected” “civilian” President of Myanmar. He was the one who negotiated the power sharing deal with Suu Kyi in 2010.
I recall Suu Kyi, being an articulate and inspiring personality. Very strong-minded and stubborn at times, she presented herself as a staunch defender of democracy and human rights in Myanmar and globally. Her advocacy of a Gandhian non-violent civil disobedience and her reputation as a Mandela-like prisoner of conscience over a prolonged period, led to her winning the Nobel Peace Prize in 1991.
But like many of her previous admirers, including her fellow Nobel Prize laureates, I became deeply disappointed by her politically-calculated alliance with the military when she defended the indefensible ethnic cleansing of Myanmar’s Rohingya Muslim community at the International Court of Justice in the Hague.
Although Suu Kyi’s international stature as an icon of democracy and human rights has suffered irredeemably, she continues to be immensely popular domestically. If anybody can potentially tame Myanmar’s powerful Tatmadaw, it still continues to be Aung San Suu Kyi, given both her undiminished domestic popularity and her father General Aung San’s nationalist credentials and legacy.
Thus, despite all her flaws, I believe the international community has no choice but to support the restoration of democratic process in Myanmar led, in the near-term, by Suu Kyi and her NLD party.
The possible ways forward 
However, in the longer term, both the people of Myanmar and the international community ought to internalize three important lessons from the Burmese conundrum of the past six decades: a) not to rely on the leadership of one individual, no matter how charismatic, b) the necessity of delegitimizing the privileged political role of Myanmar’s military, and c) looking beyond the necessary restoration of electoral democracy to a laser-like focus on tackling a range of issues that have perpetuated poverty, inequality and violent conflicts in this immensely resource-rich country that remains one of the poorest in the region.
Nobody believes the military’s promise that it will organize new elections in a year’s time and hand-over power to a newly-elected government. If free and fair elections are held, the military and its puppet party, the USDP, are likely to fare even worse than in the November 2020 general elections.
The junta maybe able to prolong its rule in the short-term by organizing sham elections and increased repression, but the durability of such a regime is questionable. We are already beginning to see the sprouting of a courageous campaign of civil disobedience in various forms, which is only likely to accelerate over time.
We can expect Tatmadaw to unleash harsh repression using all the tools and tricks in the authoritarians’ toolbox, starting with shutting down the internet and the social media. But there is no conceivable scenario under which the Tatmadaw can solve Myanmar’s entrenched problems and endear itself to a restive population.
In this day and age, harsh repression alone cannot ensure political stability. Even the military regime’s backers like China and most of the ASEAN countries that treasure political stability over democratic norms, are likely to abandon their active or tacit support of the junta, once they realize that a regime deeply despised by the populace and incapable of delivering sustainable development cannot ensure lasting stability and tranquility.
It is clear that the military has grossly misjudged the mood of the Burmese youth. Having tasted democracy and an open society during the past decade, Myanmar’s digitally savvy youth, like those of many other countries, are now so well-connected with their counterparts around the world, so well aware of their rights and their potential, so determined to pursue a prosperous future, that they will find many creative ways to outfox the military’s shenanigans.
Among the best proposals for a way forward is a solemn appeal by a wise and thoughtful religious leader, Cardinal Charles Maung Bo, Archbishop of Yangon, President of the Federation of Asian Bishops’ Conference, and a Co-President of Religions for Peace International.
He made a strong case for “demilitarizing Myanmar”, warning even before the latest coup: “History teaches us, diplomats and peacemakers know, that there is never going to be a military solution to a political conflict. Pursuing military solutions leads only to endless war and endless misery”.
Following the coup, the Cardinal issued an urgent message addressed to the people of Myanmar; its civilian leaders, including Aung San Suu Kyi; to the Myanmar military, and the international community.
The message calls for the people to stay calm, avoid violence, but pursue their goals peacefully. The Bishop chastises the military for its empty promises and urges the junta to respect people’s rights as expressed through their elected representatives, writers, activists, and especially Myanmar’s youth. He urges Suu Kyi and the NLD leaders to continue dialogue and with Tatmadaw to overcome the new challenges created by the latest coup.
To the International community, the Bishop cautions how sanctions in the past brought few results, and to avoid measures that risk collapsing the economy and throwing millions into poverty.
I tend to agree with the Bishop that general sanctions are a blunt instrument that hurt ordinary people while the rich and the powerful find many ways to evade them. However, I believe there is room and need for tough but very specifically and narrowly targeted sanctions against the key perpetrators and enforcers of the military putsch and their business interests, while meticulously sparing the ordinary people.
The international community would be wise to follow the Burmese historian Thant Myint-U’s advice to avoid a narrow focus on political change and help ensure the protection of ordinary people’s lives and livelihoods as part of any international action to thwart the military coup.
“Myanmar needs a fresh path to democracy” he says, “Free and fair elections (and respect for the results) are essential. But also essential is the transformation of a society shaped by decades of dictatorship, international isolation, brutal armed conflict, racial and religious discrimination, extreme poverty and widening inequality”.
In a world struggling to recover from the ravages of the COVID pandemic, and many other epochal crises, the plight of the people of Myanmar may not get the full attention it deserves. But let us hope that the sentiments of global solidarity will inspire them to regain their inalienable human rights and dignity.
<a href="http://www.kulgautam.org">Kul Chandra Gautam</a>, a Nepali diplomat, is a former Assistant Secretary-General of the UN and Deputy Executive Director of UNICEF. He is also the author of the recently-published "Global Citizen from Gulmi: My Journey from the Hills of Nepal to the Halls of the United Nations"
By arrangement with Inter Press Service (IPS)

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Post-Coup Myanmar, Aung San Suu Kyi and the Way Forward

<figure><img width="830" height="547" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110101152/636cca2e9c7e80680e08bb53jpeg.jpg" alt=""/><figcaption>Burmese political leader Aung San Suu Kyi when she visited Nepal in 2016. </figcaption></figure>Burma is in the news again with this week’s military coup, and Nepalis who had known Aung San Suu Kyi during visits to Kathmandu are concerned about her safety and of other democracy leaders. <a href="http://archive.nepalitimes.com/news.php?id=17820#.YBuCwDEzbIU">Aung San Suu Kyi</a> first came to Nepal when her mother Khin Kyi was Burmese ambassador to Nepal and India. In a later visit in 1973 with her husband Michael Aris and her infant son Alexander, she stayed at the Dharma Kirti Vihara in Kathmandu for five months. Every time she visited Nepal after that she went to the monastery near Asan which is headed by Guruma Dhammavati. The venerated Buddhist nun remembers Aung San Suu Kyi as a patient and quiet person.“Politics is full of ups and downs, I believe she will soon be released,” says Dhammavati who taught the Burmese leader about Buddhism.Rina Tuladhar at the Dharma Kirti Vihar says Aung San Suu Kyi had a special connection with the monastery and Kathmandu: “She had said during one of our conversations that she turns to the teachings of Guruma Dhammavati when she is going through difficult times. She is going through a difficult time now.” Aung San Suu Kyi went to Lady Sri Ram College in New Delhi and lived in Thimphu and Kathmandu, writing two books about Bhutan and Nepal. Her husband was a scholar of Tibetan Buddhism in the Himalaya.“I always wanted to learn English and when I heard there was an English teacher at the vihara, I joined the class. It was only many years later, when I saw her on tv that I realised she was an important political figure. We called her Maa Suu Kyi,” says Chinikaji Maharjan, who was tutored by Suu Kyi when he was five.There were 20 pupils in the English class, and one of them was Trilochana Tuladhar, who remembers being told that a Burmese teacher had joined the vihara. “But we didn’t know who she was,” she says. Aung San Suu Kyi and President Myint Swe were arrested on 1 February by the army in night-time sweeps in Yangon along with other ministers and members of parliament. There is heavy <a href="https://archive.nepalitimes.com/article/from-nepali-press/Why-is-myanmar,4089">military presence</a> in the capital Naypiydaw and Yangon, and media control has been tightened.Aung San Suu Kyi visited the vihara again in 2016 when she attended the controversial ‘<a href="https://www.nepalitimes.com/editorial/the-new-normal/">Asia-Pacific Summit</a>’ in Kathmandu in 2016 organised by the Korean Unification Church of Sun Myung Moon.  During the visit there was a special gathering at the vihara, where she enquired about her students. “We stood up from our seats so that she could see us from the stage, but because it was a big event, we did not get to speak to her,” Tuladhar recalls.Ever since news came of the military coup in Burma and Suu Kyi’s arrest this week, Guruma Dhammavati has been recalling her days at the vihara. “Her eldest son Alexander was only three months old at the time,” remembers Dhammawati. “Her husband headed to the mountains to conduct a study on the gumba, and Suu Kyi stayed at the vihara with her son.”Born in Cuba, her husband, Michael Aris was a historian and wrote books on Buddhist traditions in the Himalaya. He died in Oxford in 1999, while Suu Kyi was still under house arrest in Yangon. Dhammavati herself visited Aung San Suu Kyi during her trip to Burma with other Buddhist nuns from Nepal in 1992. “She was under house arrest at the time and would spend her time in meditation and reading. We had lunch at her house, and there was a tight military presence,” she says.Aung San Suu Kyi was released in 2010, and her National League for Democracy swept the election five years later. She was also awarded the <a href="https://www.nepalitimes.com/banner/air-brushing-history-by-toppling-statues/">Nobel Peace Prize</a> for her struggle for democracy.But the international respect she had was soon eclipsed by her refusal to speak out against the persecution of the Rohingya. Some 700,000 people from this ethnic group in western Burma have fled to Bangladesh since 2017, with a few thousand even finding their way to <a href="http://archive.nepalitimes.com/blogs/thebrief/2013/04/02/to-burma-from-nepal/">refugee camps</a> in Kathmandu.Burma’s military junta has come under worldwide criticism in the wake of the coup, with only Beijing supporting it at the United Nations this week. The Nepal government has also called for the release of President Myint Swe and Suu Kyi. “This seems like a time of political turmoil the world over,” says her student Trilochana Tuladhar. “Things are not any different in Nepal after Prime Minister Oli dissolved the House.” At the Dharma Kirti Vihara in Kathmandu, Aung San Suu Kyi’s students and teacher are praying for her early release, and for things to return to normal in Burma.Says Guruma Dhammavati: “What makes me sad is that these events keep repeating themselves in countries like ours.”

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Kathmandu remembers Aung San Suu Kyi

<figure><img width="800" height="789" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171148/636937139c7e80680e03fe16jpeg.jpg" alt=""/><figcaption>Diwakar Chettri</figcaption></figure>It does not matter who advised Prime Minister K P Oli about attending the dubious Asia-Pacific Summit in Kathmandu last week organised by the Korean Unification Church of Sun Myung Moon. He should have refused to go.Even if he had been told that other Asian leaders would be attending, just glancing at the invitee list should have made it clear to him that they were ones currently ostracised by the international community: Cambodia’s Hun Sen and Burma's Aung San Suu Kyi.Hun Sen got himself elected again this year in an another staged election, and the former Khmer Rouge guerrilla who has brutally silenced critics is Asia’s longest-ruling prime minister. Aung San Suu Kyi may still retain her Nobel Peace Prize, but she has been stripped of numerous other international awards for her refusal to condemn her government’s ethnic cleansing of the <a href="https://www.nepalitimes.com/here-now/living-on-the-margins/" target="_blank" rel="noopener">Rohingya minority</a> and imprisoning journalists who covered it. Nepal’s entire political leadership, including even President Bidya Devi Bhandari, tarred themselves by hobnobbing with this disreputable evangelical cult that has been known to buy political influence in soft states around the world. Seeing Nepal’s political spectrum on stage with <a href="http://archive.nepalitimes.com/article/nation/Korean-movement-in-Nepal,2962" target="_blank" rel="noopener">Moonie figures</a> was not just shameful, but exposed gullibility and collusion with a shady born again sect.https://youtu.be/0A3PoCal9GoA promotional video (above) made by the Church boasts about how it has the backing of Nepal’s political leadership. It shows clips of UML leader Madhav Kumar Nepal on hand at the Kathmandu airport tarmac to welcome the group’s ‘True Mother’ earlier this month, and other leaders receiving ‘blessings’ from her.      Moon’s Unification Church and Universal Peace Federation (UPF) has nearly 15,000 members and dozens of churches across Nepal. It has also bankrolled various political parties to give its Chairman and head of the Nepal Paribar (Family) Party Ek Nath Dhakal berth as Peace and Reconstruction Minister in successive coalition governments in the past four years. Dhakal has taken Nepal’s top politicians and MPs on frequent and lavish junkets to Korea. The Oli administration has been hapless about getting its timing right even when it makes positive moves. It squandered the PR  advantage of signing the much-vaunted Trade and Transit Treaty with Beijing earlier this year by installing a controversial head of the Nepal Telecommunication Authority on the same day. Headlines about the  appointment overshadowed the geopolitical significance of the China treaty. The government has done little to followup on the treaty, but that is another story we will go into some other time.Prime Minister Oli also announced a bold <a href="https://www.nepalitimes.com/latest/not-just-social-security/" target="_blank" rel="noopener">social security scheme</a> for private sector employees, but the extravagant publicity campaign, in which his face was plastered all over the country, undid any brownie points from it. It will take a long time to undo the damage from the ridicule the government and Oli personally suffered in the mainstream media and social networking sites.Read also: <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/latest/not-just-social-security/" target="_blank" rel="noopener">Not just social security</a>, Josh Glover<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/social-insecurity/" target="_blank" rel="noopener">Social insecurity</a>, Om Astha RaiMany Nepalis would probably have ignored all this nonsense if in the past nine months of assuming office the Nepal Community Party-led government had used its two-thirds majority to perform. Not only has the government not been able to deliver, its accomplishments in just about every sector has been less than underwhelming.Last week, we lamented in this space how the government has managed to spend only <a href="https://www.nepalitimes.com/editorial/communist-capital/" target="_blank" rel="noopener">11% of its outlay for development projects in the first quarter</a>. In the same period, foreign direct investment in Nepal is down 75% from the same period last year, and it is the lowest in three years. Combined, these two trends mean that Nepal is <a href="https://www.nepalitimes.com/banner/roadblocks/" target="_blank" rel="noopener">unlikely to achieve the projected 8% growth target</a>.Successive governments have promised that the pace of development and economic growth will pick up once things get back to 'normal'. The war has been over 12 years, the constitution was promulgated three years ago, elections were over and done with and the three levels of government have been in office for nearly a year. When are we ever going to be 'normal'?Read also: <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/editorial/communist-capital/" target="_blank" rel="noopener">Communist capital</a>, Editorial<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/banner/roadblocks/" target="_blank" rel="noopener">Roadblocks</a>, Ramesh Kumar<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/editorial/republic-of-rape/" target="_blank" rel="noopener">A rape/murder case in Kanchanpur</a> that could easily have been solved with detective work at the local level was bungled with a cover up, and the framing of innocents until it grew into a crisis of national proportions.Such weakness and chronic failure, especially of an elected government with a strong mandate, is not good news for Nepal’s long-suffering people who have waited out two decades of conflict and transition. It also undermines the people’s trust in their elected representatives, and belief in democracy.The response of the prime minister and his spokesman has been a knee-jerk attempt to blame the messenger and lash out at critics in the time-honoured way of all failed leaders. Our unsolicited advice to the prime minister would be to make a list of can-do deliverables and just get them done. The public will give him credit without him having to beg for it. 		
			<h2>10 years ago this week </h2>		
		Ten years ago this week, the Nepali Times edition #428 of 6-11 December, 2008 had the front page headline ‘Red carpet’ alluding to the string of foreign visitors in Kathmandu. An excerpt from the analysis:Since the UN Secretary General Ban ki-Moon in October, there have been four ministers from India, Britain, Denmark and China. The Chinese sent a military delegation and the British their army chief. Most visitors expressed concern about delays in the peace process, army integration and lamented the lack of consensus politics. They urged the Maoist-led government to deliver law and order, prove its commitment to democracy and the free press and ensure industrial security.Some visitors said privately they saw a gap between what the Maoists were saying and what they were doing. There was concern that Nepal, which two years ago was hailed a model country for conflict-transformation, was about to slip back into anarchy. Nepal had a great opportunity after the peace accord to restore stability and be stronger internally. But the country now seems to be going in the other direction. The only way to dissuade foreign meddling is to build consensus during the transition period and to cooperate in the constitution-drafting process. If the Maoists who lead the government can’t do this, opposing geopolitical blocs will start getting jumpy and try to influence political decisions. When that doesn’t work, they will interfere directly.

The new normal

It was 30 years ago this month that investment into ‘Baby Arun’, the 201MW first phase of the run-of-river Arun III project, was brought to a screeching halt when the World Bank officially withdrew its support. This brought about profound and fundamental changes in the way Nepal’s power sector subsequently developed. Nepalis suffered debilitating power outages between 2008-2016 due to shortages attributable to the cancellation. At the same time, the gap left by Baby Arun was filled by private sector investment in ways that were not obvious in 1995. It took 30 years, but in many ways Nepal’s power sector is more healthy today than it has ever been, and likely better than if the project was built as planned. At a projected budget of $1.08 billion, Baby Arun would have cost the equivalent of Nepal’s entire annual government expenditure in 1995. It was to be funded by concessional grants and loans from multilateral and bilateral funders, including the World Bank, Asian Development Bank (ADB), KfW, and investment by the government itself. At the time, Nepal’s total electricity generation capacity was only 230MW, and the trajectory of the power sector changed dramatically following the cancellation. In the past 30 years, $5.4 billion has been invested in the power sector led by private investors, and much of it from domestic banks and pension funds (table, right).  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0.jpg" data-media-id="editor_0" data-image-id="20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0" data-rendition-name="original" width="984" height="521" loading="lazy" alt="30 years after Baby Arun"> </figure>  Nearly 70% of the new megawatts generated were by private independent power producers (IPP) in the past 30 years, while the Nepal Electricity Authority (NEA) and its subsidiary companies added 30% of new capacity. Almost 80% of total debt financing came from domestic banks and employee retirement funds. International assistance for power generation dropped dramatically over this time, accounting for only about 15% of investment. Before 1995 new power projects used to be entirely dependent on foreign aid. Since 1995, 63% of new generation came from 171 small hydropower projects with an average capacity of 12MW, while 4% was from 21 solar photovoltaic and biomass projects developed by local IPPs.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097.jpg" data-media-id="editor_1" data-image-id="20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097" data-rendition-name="original" width="988" height="503" loading="lazy" alt="30 years after Baby Arun"> </figure>  Over three decades, investment in Nepal’s power supply came primarily from new actors that had never before been involved in this sector. The rate of electrification rose from 10% to close to 100% -- sufficient to meet domestic needs during most of the year, and in 2024 made Nepal a net exporter of power to India for the first time in its history. As practically all the new investment in this period went into run-of-river hydro and solar projects, rather than into hydropower reservoirs with seasonal storage, Nepal continues to rely on imports from India during the dry winter months. Surplus electricity generation for export during the monsoon is slated to grow rapidly as another 200 solar and hydro projects are nearing completion of construction, with over 5,000MW of power capacity. Private Power The cancellation of Baby Arun inadvertently accelerated the entry of the private sector into Nepal’s power generation. The government enacted the Electricity Act in 1992 to attract private IPPs and diversify away from total dependence from international aid, but had been struggling for several years to conclude the first agreement with the 60MW Khimti Project. There remained a large gap between the tariff that the government thought was reasonable versus what was demanded by the Norwegian investor Statkraft, and the private sector arms of the World Bank and ADB that were financing the project. The shock of World Bank withdrawal from Baby Arun put tremendous pressure on the government, then led by the UML as it is now. The Bank’s decision to terminate its involvement was ostensibly, at least partially, taken in response to a letter critiquing the project sent by the UML while it was in the opposition.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347.jpg" data-media-id="editor_2" data-image-id="20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347" data-rendition-name="original" width="949" height="446" loading="lazy" alt="30 years after Baby Arun"> <figcaption>BAD NEWS: Newspaper clippings from the early 90s on tender announcement ahead of loan approval (left) and secrecy surrounding environmental assessment (centre) of Arun III before its eventual cancellation in August 1995.</figcaption> </figure>  The government was forced to soften its position and agree to the investors’ terms following the cancellation of Baby Arun. It directed NEA to sign a power purchase agreement (PPA) with Khimti. It was concluded in January 1996, and this was followed by a second PPA in July 1996 with Panda Energy, the American developer of the 45MW Upper Bhotekosi project. The expensive USD-denominated agreements to buy power from two international private producers, with price escalation clauses tied to the New York Consumer Price Index, sent alarm bells ringing. There was worry that the country was heading towards unaffordable tariff rates for the consumer and potential bankruptcy for NEA as a result of inevitable future weakening of the Nepali Rupee. The government had strong-armed NEA into signing these agreements, and realised that concessionary financing terms that Nepal was used to receiving for public sector projects such as Baby Arun and Kali Gandaki A, that included below-market interest rates and 40 years repayment period with a 10 year grace period before starting repayment, were not the norm for private sector investors. Nepal’s status as a less than attractive destination for foreign investment meant that the country had few options but to accept expensive dollar PPAs from international developers with the high commercial interest rates and short repayment periods imposed by their banks because of high investment risks. In the end, the government ended up having to additionally provide a sovereign guarantee in order to close the deal at the insistence of the lenders – committing it to repayment in case NEA defaulted on paying the IPPs. It is reasonable to assume that the extraordinarily high political cost of agreeing to the PPA terms would have meant that no government would have willingly agreed to them in 1995 had it not suffered the trauma of the loss of concessionary-financed public sector projects as large as the Baby Arun. It has taken NEA 25 years to consider offering dollar-denominated PPAs again: to cover the foreign exchange portion of the investment in the 216MW Upper Trisuli-1 and 120MW Rasuwa-Bhotekosi Hydropower projects. It seemed unlikely at the time, but it turned out that the dire situation Nepal found itself in 1995 planted the seed to mobilise investment for affordable power from within the country. Double Whammy After the dual shock of first losing investment in Baby Arun and having to sign expensive power purchase agreements with international IPPs, the first proposal for an alternative strategy to mitigate the risk of foreign currency investment into hydropower projects came from a group of engineers within the Arun III team at NEA. Led by <a href="https://archive.nepalitimes.com/news.php?id=4900">Deputy Director Damber Bahadur Nepali,</a> engineers convinced the leadership that NEA needed to invest in a subsidiary company to build a series of locally-designed and domestically-financed projects that would have lower cost with rupee-denominated PPAs. They registered the Chilime Hydropower Company Limited (CHCL) in October 1995 with 51% shares from NEA, 25% from its employees, and 24% available for the general public, 10% of which was prioritised for local residents at the project site. The 22.1MW project is in Rasuwa on a tributary of the Trisuli, and mobilised debt financing from the Employee Provident Fund, which manages retirement savings for employees of the government, public enterprises, and private sector institutions. CHCL’s experience showed that NEA employees themselves believed that individual hydropower projects with operational independence from NEA could be developed profitably in Nepal by its own engineers -- and they were willing to put their own money on the line. Chilime also demonstrated that there was money in the country, particularly with retirement funds, looking for opportunities for long-term investments. Following completion of Chilime in 2003, CHCL led the formation of three other NEA subsidiary companies that completed construction in 2023 and 2024, producing 168.3MW using fully rupee-tied investment. NEA’s largest subsidiary, the Upper Tamakosi Hydropower Limited, completed construction of its 456MW plant in 2021.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3.jpg" data-media-id="editor_4" data-image-id="20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3" data-rendition-name="original" width="3000" height="1571" loading="lazy" alt="30 Years after Baby Arun"> <figcaption>DAMNED: The $700 million 456MW Upper Tamakosi built entirely with domestic funds before it was destroyed by the September floods last year. </figcaption> </figure>  There were some delays and cost overruns on this run-of-river project, the largest in the country with a final cost of over $700 million -- all of it sourced domestically. The five subsidiary companies launched by NEA have produced almost two times as much new power as NEA has over the past 30 years. Seven other NEA subsidiaries are currently constructing projects to add another 474MW to the national grid. But even more important than NEA subsidiaries have been local IPPs: Nepali companies which have over the past three decades enthusiastically entered the hydropower sector. From a regulatory perspective, the credit for mobilising domestic private investment to engage in power generation goes to Minister of Water Resources Shailaja Acharya, who in 1998 offered a flat feed-in-tariff of Rs4/kWh for hydropower projects under 10MW. This upfront offer removed a major barrier that early developers had faced of having to spend money to carry out a detailed feasibility study before they could even start tariff negotiations with NEA. She had laid the foundation stone of the Chilime project, and proved to be the champion of opening up the sector for domestic IPPs. The guarantee of a PPA with a fixed tariff, irrespective of project specifications, gave small power developers the confidence to apply for survey licenses and invest in feasibility studies so they could directly approach commercial banks and make a case for their project producing required revenue to repay loans. Domestic IPPs started adding power to the national grid in 2002. Their contribution was initially modest, and first projects were small and commercial lenders who took time to be confident about providing debt financing to a sector which had previously not been considered suitable for private sector investment. While the first 10 years were slow, with less than 10MW being added to the grid each year, this increased twenty fold over the following ten years, resulting in the equivalent of a Baby Arun being added by Nepali IPPs to the grid each year. A total of 84 IPPs added 232MW, 328 MW, 454MW, and 400MW of new generation to the grid in 2021-2024 (graph). There was explosive, exponential growth as domestic developers have surged ahead to account for 76% of the new megawatts added to the grid since 2020, compared to 24% by NEA and its subsidiary companies. The megawatts that IPPs are adding have followed the classic ‘hockey stick curve’ with the ‘breakout point’, signaling the rapid growth phase in 2020. Private producers are expected to accelerate new generation in the coming years with 300 solar and hydropower projects adding 11,000MW. Another 166 hydropower and 96 solar projects are currently in the survey stage, and are in line to add another 11,000MW to the construction pipeline. One major challenge is finding financing required for the projects. Domestic investment will no longer be sufficient to finance this ambitious pipeline of renewable energy projects. Project developers as well as NEA and the Electricity Regulatory Commission will have to leverage their substantial experience accumulated through the construction of over 200 projects to attract regional and international investment and hedge the risks of dollar-denominated PPAs. Following the cancellation of Baby Arun, <a href="https://nepalitimes.com/opinion/people-power/decentralising-power-in-nepal">Nepal developed a highly distributed power sector</a>. The national electricity grid is currently supplied with power from a remarkably decentralised array of hundreds of hydropower and solar photovoltaic projects spread across 43 districts and all seven provinces.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b.jpg" data-media-id="editor_6" data-image-id="20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b" data-rendition-name="original" width="1228" height="867" loading="lazy" alt="30 years after Baby Arun"> </figure>  This presents a sharp contrast to the pathway of a few large public sector hydropower projects with a sprinkling of private sector projects that was envisioned as part of NEA’s investment planning when Baby Arun was being considered the front runner for investment. The strategy then was to allow public sector investment in a few large hydropower projects with thermal plants to fill the gap. Knowing what we know now about acceleration of climate change impacts and increased extreme weather events, following this path would have made Nepal’s power sector highly vulnerable. Decentralised generation greatly improves the resilience of Nepal’s power supply as damage to power plants in one part of the country need not affect other areas that have their own generation. Following the investment plan where over two thirds of the country’s power supply would have come from power plants on the Arun River, would have greatly imperiled Nepal’s energy security. All rivers in Nepal are susceptible to flooding from cloudbursts made more frequent by climate change. The Arun River which is fed by glaciers in Tibet is also at risk to glacial lake outburst floods. Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his regular column in Nepali Times on global energy issues relevant to Nepal. <h2>Decentralised and Diversified</h2> In the 30 years since the cancellation of ‘Baby Arun’: Hydropower projects constructed cover capacities ranging from less than 1MW to 456MW and developed by IPPs from across the country with strong local involvement in purchasing equity shares. Renewable energy sources contributed to the generation mix through solar IPPs that further contribute to climate resilience, and cover shortfalls during low rainfall. The government is committed to solar contributing 10% of the power on the grid. Increasing solar beyond this target and providing incentives to project developers to invest in utility-scale battery storage would further improve resilience. BIG ARUN: The 900MW Arun III project under construction since 2018 at Num in Sankhuwasabha (pictured, below) is a separate initiative by a different project developer using a different financing modality. The ‘Baby Arun’ version of Arun III was cancelled in 1995.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb.jpg" data-media-id="editor_7" data-image-id="20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb" data-rendition-name="original" width="1750" height="1312" loading="lazy" alt="30 Years after Baby Arun"> </figure>

30 years after Baby Arun

This is the 72nd episode of Diaspora Diaries, a Nepali Times series in collaboration with Migration Lab providing a platform to share experiences of living, working and studying abroad. My father ran a store and that is where I spent all my time till Grade 6. Doing my homework. Serving customers. I then moved to my maternal grandparents’ house because I used to get along with my cousin who was a year older than me. We did everything together, and were best friends. We took turns studying: I was a night owl, and he was an early riser. Before I went to bed after studying all night, I woke him up. My mother was 44 when I was born, the same year my eldest brother got married. My sister-in-law becoming a part of our family was how my mother referenced my age. I liked making money, and was always a hustler. In Grade 7, I learnt to handle a tractor and helped my brother-in-law to plough, earning Rs10 a day. As I got better, he paid me more. By Grade 9, I was already making Rs500 per day, but had to slow down to prepare for my exams. From an early age I knew I did not want a 9-5 job. There just wasn’t enough money in it. I wanted to get into business, and compared my brother who worked in the post office and what businessmen made. It did not help that my brother was honest, and never took bribes. A friend and I made money selling cheap Chinese phones at a premium to our friends. We blasted music on the phones and pretended that we were giving them a discount. After SLC, I started teaching math and other subjects. I was soon a shareholder in the same school and in the evening I was involved in our family’s floriculture business, growing amaranth and marigold for garlands.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4.jpg" data-media-id="editor_0" data-image-id="20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4" data-rendition-name="original" width="955" height="1314" loading="lazy" alt="Diaspora Diaries 72"> </figure>  It was then that a friend suggested we learn the Korean language. We could be earning significantly higher in Korea for similar efforts. I had no plans to go abroad but he convinced me. I did not know anything about Korea, and was scolded at the language institute when I asked someone to point Korea on the map.&nbsp; It was only there that I learnt you had to pass an exam for the Korean Employment Permit System (EPS), and pay for language classes. After a week, I decided it was not for me and dropped out. But my friend convinced me to give it one more try. I did not prepare much for the exam, and it was no surprise that I failed. But it was just by one mark, and people would pity me for failing “just by one mark”. It was a brand of failure. It hurt my ego. I had to turn things around by taking the exams seriously, and locked myself up to study hard.&nbsp; Even when we had visitors, my wife told them I was not home. If I was not in my room learning Korean, I would be with a group of ten of us test-takers comparing notes and practicing late into the night. The exam was difficult, but this time I passed, the only one in my group who did.&nbsp; As someone who never liked the idea of doing a job, I still had my doubts about going to Korea. It did not help that one of my acquaintances had returned a month after he had left, and he discouraged me from migrating given that I was already making good money in Nepal.&nbsp; But my wife suggested that I give it a shot since I had worked so hard for it. And if it really turned out not to be my cup of tea, I could always return. What did I have to lose, I thought, at least I would get to visit Korea. My job there was in an electrical company that made circuit boards. I worked all day, earned good money. In the evenings, I kept myself busy with my real estate business back in Nepal. I had learnt the tricks of the trade from fellow real estate agents back home, but at the time did not have the capital to invest.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5.jpg" data-media-id="editor_1" data-image-id="20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Diaspora Diaries 72"> </figure>  In Korea, it helped that I had salary records that allowed me to get loans from financial institutions both in Korea and in Nepal. Ultimately, I started earning more from my real estate deals in Nepal than from my job in Korea. This was all thanks to my ability to take loans because of the EPS scheme. My wife has been managing the flower business while I was away. My finances grew stronger over the eight years I was in Korea. I paid off the loans that I had borrowed to buy land. But real estate did not satisfy me entirely. I wondered: what is my brand? What will I be known for? What is my contribution to society? Real estate is for wealth, but that is about it. I needed to sell one piece of land and use the revenue to start a venture. I took classes in business, and returned to Nepal six months ago and got back to my family’s ancestral roots in floriculture. In Nepal too, I am continuing the entrepreneurship training I had started in Korea with the Bridge International. Such exposure helps us reflect on our business such as our branding, vision, and proactive aspects like the importance of strong recordkeeping.&nbsp; I am now working to upgrade and expand my floriculture business. With a friend who is still in Korea I am building a cooling room to increase the shelf-life of flowers and other produce and set up a market in my village where others can sell their produce. Floriculture is our primary business, but it is seasonal and earns good money only during festivals like Tihar.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415.jpg" data-media-id="editor_2" data-image-id="20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415" data-rendition-name="original" width="1280" height="720" loading="lazy" alt="Diaspora Diaries 72"> </figure>  So, I grow tomatoes to ensure year-round earnings. I also am engaged in other businesses like real estate and online shopping. I work round the clock in Nepal — a strong work ethic is something I picked up in Korea.&nbsp; My Korean bosses would work alongside us, that motivated us. I work just as hard in Nepal as I did in Korea. People here often ask me why I am pushing myself so hard. But making garlands comes easy to me, it is work my forebears were involved in. My childhood memories are about plucking flowers with my sister. I have a comparative advantage in this work. It comes naturally to me, it is easy and I enjoy it. And sometimes, if there are too many garlands to make, I can multitask while holding meetings. My fingers just fly. I am good at this job, but my wife is even better and faster.&nbsp; When there is too much load, we can also outsource the work. To be known as the flower guy would be great personal branding. The मखमली guy. Or the सयपत्री guy. I decided to come home for just this with a one-way ticket. “अब पासा: जाँदैन ल्हासा!” &nbsp;

The flower guy

It cannot be a coincidence that after pushing bills to constrict freedom of expression and allow greater <a href="https://nepalitimes.com/news/security-or-espionage">surveillance of citizens</a>, Nepal’s government is now tightening controls on civil society.
In a <a href="https://nepalitimes.com/opinion/guest-editorial/command-and-control">series of recent moves</a> journalists have been sued for contempt of court, imprisoned for YouTube videos, or ordered by courts to desist from investigating corrupt officials.
An amendment to the Print and Publications Act that would hand the power to shut online media to the Chief District Officer (CDO). Another draft Bill would allow a political appointee to head a new Media Council with the power to revoke a journalist’s license. The draft counter-intelligence Bill would let random officials to arbitrarily tap phones, read emails and trail citizens.
Now comes yet another draft Bill that would replace the <a href="https://archive.nepalitimes.com/news.php?id=10675">Social Welfare Council (SWC)</a> with direct government control over registration, regulation, and management of non-governmental organisations, nonprofits and charities. There are more than 54,000 NGOs, 200 international NGOs registered with the SWC.
The draft makes civil society organisations needlessly jump through hoops to carry out work that complements the government in the social sector. Critics say the Bill was drafted without any consultation with <a href="https://nepalitimes.com/opinion/comment/nepal-s-rights-groups-must-step-up-4r4z6ck4">civic groups</a>.
“This Bill’s content is questionable whether it intends to allow for civil society organisations in Nepal a free space to operate,” concludes Dr SP Kalaunee, Country Representative of BlinkNow Foundation and Chair of the Association of International NGOs in Nepal (AIN). “The draft seems oriented towards controling rather than facilitating the work of civil society organisations.”
The Bill will be open for feedback from the public, and integrates the National Directives Act (1961), Association Registration Act (1977), and the Social Welfare Act (1992) and proposes dissolving the SWC and replacing it with a new Social Welfare Department under the Ministry of Women, Children and Senior Citizens.
Non-government groups will now be required to get approval from the Registrar Office, the CDO or the provincial government depending on their area of operation. Those working across provinces will have to get permission from the federal government. &nbsp;
The government says the Bill is intended to vet organisations to see if they are engaged in espionage, violate national security, assist a foreign state, commit treason, cause strife between federal units, or incite communal violence.&nbsp;
CSOs working in Nepal have long called for legislation to better facilitate their work, minimise administrative and bureaucratic red tape which have posed operational challenges. But they are opposed to such drastic control.&nbsp;
Read also: <a href="https://nepalitimes.com/banner/the-crow-and-the-scarecrow">The crow and the scarecrow</a>, Om Astha Rai
The NGO Federation of Nepal also issued a statement this week calling the Bill ‘retrograde and cumbersome’. It added: ‘Most of its provisions are intended to further constrain and control civil society organisations rather than facilitate and strengthen them, and reduce the role of citizen participation … it is an attack on our civil liberties, inclusivity, and transparency, and curtails our <a href="https://archive.nepalitimes.com/news.php?id=5156">democratic values and constitutional rights</a>.’ &nbsp;
<a href="about:blank">Nepal’s graduation</a> from least-developed country status next year may mean less aid for Nepal, and higher interest rates on loans from multilateral creditors. The <a href="https://nepalitimes.com/news/how-usaid-cut-affects-nepal">closure of USAID </a>and reduction in bilateral grants means the work of INGOs will be even more vital – especially to meet its <a href="https://nepalitimes.com/here-now/target-2030-for-maternal-and-newborn-health">SDG targets by 2030</a>.&nbsp;
“We are competing with other countries at a time when the global aid environment is shrinking, so the support we receive is directly dependent on a conducive environment for INGOs to operate and function,” says Kalaunee. “INGOs follow regulations of the nations they operate in, they will not protest or wait around for governments to change their minds or policies.”
Social safety net
Since 1977, the work of non-governmental actors in Nepal has been regulated by the Social Service National Coordination Council (SSNCC) chaired by Queen Aishwarya.
After the <a href="https://nepalitimes.com/banner/one-moment-30-years-ago-today">1990 People’s Movement</a>, King Birendra set up the Social Welfare Council (SWC) as an autonomous body in 1992 through the Social Welfare Act. But since then the SWC has been dogged by controversy and allegations of corruption and extortion.
In 2018, the Commission for the Investigation of Abuse of Authority (CIAA) filed a Rs315 million corruption case against 14 individuals, including the Minister of Women, Children and Social Welfare and SWC chair Badri Prasad Neupane and other officials for violating public procurement laws to rent out three hectares of its property around Bhrikuti Mandap.
Civil society groups have for years called for reforms in the SWC, and a report was drawn up to restructure it before this Bill proposed its dissolution. INGOs in particular will now have to go through the Social Welfare Department and multiple ministries for permissions.
A particularly objectionable provision in the draft stipulates that NGOs must have a Board of Director made up almost entirely of secretaries of various ministries. The NGO Federation has urged the government to take a civil society-friendly approach and not tangle its work in red tape and control. It says the government has no option but to revise the bill in its current form.
“Civil society organisations need an open space to operate, and an autonomous body to oversee them,” says Kalaunee. “Non-government organisations support in the areas prioritised by the government but by definition they cannot be a part of government.”

Big, beautiful Bills

Nepal’s leaders often make grandiose promises that they will turn the country into Switzerland within a decade. We will be lucky if Nepal could even attain the per capita GDP of Swaziland.
Becoming another Switzerland or Singapore is the boastful fantasy of <a href="https://nepalitimes.com/editorial/politics-as-usual">incompetent serial politicians</a> who keep getting themselves elected again and again.&nbsp;
So, what has to change?&nbsp;
It has to be <a href="https://nepalitimes.com/here-now/looking-ahead-to-nepal-s-2027-elections">through elections</a>, but there is spreading distrust of the democratic system bordering on nihilism among Nepalis. The three main parties must have sensed by now that they are doomed if they do not get their act together and inject new untainted blood into tickets in 2027.&nbsp;
One election will not clean up the muck that has accumulated over the past 35 years, but we have to start with the next one. Politics cannot be business as usual any more, voters are fed up with what is on offer.&nbsp;
Over <a href="https://nepalitimes.com/news/push-factors-driving-nepalis-out">one-third of young Nepalis are not even in Nepal</a>, and they are not allowed to cast their ballots. But we saw in 2022 that the diaspora can have an impact on how their folks vote back home, and this trend is bound to increase in 2027. It would finally break the vote banks on which the established parties have relied on to perpetuate misrule.
Nepal needs solutions urgently to address snowballing crises on multiple fronts: social inequity, joblessness and low purchasing power, failing agriculture, breakdown of services, a pandemic of corruption feeding mal-development, low capital formation, environmental woes, and to top it all off — a runaway climate emergency.&nbsp;
Yet, there are bright spots, many of which happened despite political instability: falling poverty rate, improved health and education status, increase in forest cover, conservation successes, growth in hydropower.&nbsp;
Just imagine how much further ahead Nepal would be if it was not plagued with chronic mismanagement, <a href="https://nepalitimes.com/opinion/higher-corruption-in-high-places">corruption and conflict</a>.
It is because of these modest gains that <a href="https://nepalitimes.com/news/not-poor-but-not-rich">Nepal will graduate</a> from a ‘least-developed’ to a ‘developing country’ in November 2026, and transition to middle-income status by 2030 — even though it still has an annual per capita income below the $1,306 threshold.
The driving force for this growth comes almost entirely from remittances which make up 26% of the GDP — the third highest in the world. Inflows officially hit $12.54 billion last year, and nearly 65% of households depend on money <a href="https://nepalitimes.com/editorial/the-new-equaliser">family members send home</a>, spending most of it on basic needs.
A recent discussion at the Institute for Integrated Development Studies (IIDS) titled Diaspora Dialogue: Innovation, Identity and Global Influence looked at leveraging the 4 million Nepalis who live and work abroad to spur investment and growth.
IIDS has been involved since 1979 in policy advocacy to propose sustainable solutions to governments under at least four different political systems. The fact that we are in the state we are in now must mean that not many of the policy priorities the IIDS put forward in the past 40 years have been properly implemented.&nbsp;
For decades, we’ve heard that Nepal’s path to economic growth lies in <a href="https://nepalitimes.com/opinion/people-power/nepal-can-level-up-tourism-with-electricity">hydropower and tourism</a>, but that narrative has to change, noted IIDS Executive Director Biswash Gauchan.&nbsp;
“Forget falling water, forest and forex,” he said. “Nepal has to move to a knowledge economy, boost investment and look beyond our neighbours to the diaspora.”&nbsp;
There is an artificial bubble in real estate and banking due to remittances. Even if Nepal gets 3 million tourists a year and exports most its hydropower it will not be enough to take the annual per capita income to $6,000 by 2050.
A knowledge economy means thinking beyond enrolment rates and basic literacy to quality education relevant to the <a href="https://nepalitimes.com/opinion/investing-in-people">human resources the country needs</a>. This will ensure jobs at home in import-substitution agriculture, value-added manufacturing and export of services.
And that is where global Nepalis come in. Connectivity means the end of geography, and diaspora talent and capital can be harnessed for investment and involvement in innovation to take Nepal into a <a href="https://nepalitimes.com/here-now/smart-ageing-is-nepal-s-next-frontier">digital future</a>.&nbsp;
This needs a paradigm shift away from a rent-seeking state to a ‘whole-of-government’ strategy that can only come from a new crop of competent technocrats with integrity and vision to seize the moment. They have to see migration not as 'brain drain' but as 'brain circulation'.
Those Nepalis exist. In Nepal and all over the world. Swaziland’s anuual per capita income is $4,000 — think we can do it <a href="https://nepalitimes.com/here-now/nepal-in-2050-wk6r5r1j">by 2050</a>?