<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914114/636ba5639c7e80680e0736c1jpeg.jpg" alt="" width="765" height="576"/><figcaption></figcaption></figure>When Chinese social media posted photographs last month of engineers surveying the extension of the Tibet Railway, one of the images showed Mt Everest to the south looming over the plateau from the proposed route of the tracks.Suddenly, a promise that Mao Zedong had made to King Birendra back in 1973 to build a railway from Lhasa to Kathmandu looked like it was finally going to happen.Reports suggest the Chinese want to finish the Xiagtse Gyirong (Kerung) extension of the Tibet Railway by 2025 -- although its further extension across the Himalaya to Kathmandu is going to be a <a href="https://www.nepalitimes.com/banner/which-way-will-the-tibet-nepal-railway-go/">much more technically and financially challenging prospect</a>.The railway project was brought up again in 2008, and got a push after the Indian Blockade of 2015 forced the Nepal government to plan alternative trade routes. The trans-Himalayan train was discussed between Prime Minister K P Oli and President Xi Jinping in two meetings in Beijing and Kathmandu last year.In 2017, Nepal also signed a framework agreement on the Belt Road Initiative (BRI) of which the railway project is a part. A feasibility study for the train link from Kerung via Rasuwa to Kathmandu and onward to Pokhara and Lumbini was completed in 2018. But not much else has happened since – largely because of the COVID-19 crisis and political uncertainty in Kathmandu.Most observers agree that despite the lackadaisical attitude on the Nepal side, the Chinese are forging ahead with their BRI strategy in general, and the plan to extend the railway line from Xigatse to Gyirong with the survey of the route.When the first Belt and Road Forum was held in Beijing in May 2017 amidst much fanfare, the much-anticipated conference attracted more than 60 countries which wanted to partner with China on upgrading infrastructure and connectivity.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914114/636ba5669c7e80680e0736c2jpeg.jpg" alt="" width="1500" height="1000"><figcaption>Trucks carrying imported Chinese goods cross over from Kerung to Rasuwagadi, the proposed route for the trans-Himalayan railway under China's Belt Road Initiative. Photo: NABIN BARAL</figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914114/636ba5699c7e80680e0736c3jpeg.jpg" alt="" width="826" height="680"><figcaption></figcaption></figure>Three years later, more than $70 billion worth of project have been completed, while other projects to the tune of $100 billion are ongoing across the world. Despite criticism about lack of transparency, environmental impact and a Chinese ‘debt trap’, for Nepal the attraction is that projects like the trans-Himalayan railway could be an economic and geopolitical game-changer.Initiated by President Xi in 2013 and enshrined in China Constitution in 2017, the BRI is seen as a strategy to diversify China’s infrastructure investment abroad, and to expand its geostrategic space.The focus of the BRI has itself changed over the past four years to encompass not just infrastructure but also a ‘Digital Silk Road’ of connectivity. As more and more Chinese investors and tourists travel abroad, the <a href="https://www.nepalitimes.com/latest/china-builds-digital-and-medical-silk-roads/">Digital Silk Road</a> is already functioning as a new payment gateway involving Chinese digital giants like WeChat and Alipay. By not making grand promotions and sticking to its domestic consumers, these companies have simply followed <a href="https://beltandroad.ventures/beltandroadblog/2018/7/8/where-the-chinese-go-alipay-and-wechat-pay-go">Chinese travelers wherever they go</a> (see map).Nepal initially banned Chinese digital payment giants WeChat and Alipay after loss of revenue from the increasing influx of Chinese visitors into the country.But the government decision to legalise both payment systems to benefit entrepreneurs and facilitate remittances from Nepalis shows China’s growing financial clout. As Nepal aims to lure more Chinese tourists in future, it is clear that Digital Silk Road will become an important artery for e-commerce.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914114/636ba56b9c7e80680e0736c4jpeg.jpg" alt="" width="645" height="427"><figcaption></figcaption></figure>The ‘<a href="https://www.nepalitimes.com/latest/china-builds-digital-and-medical-silk-roads/">Health Silk Road</a>’ is another <a href="https://www.cfr.org/blog/mapping-chinas-health-silk-road">rhetorical extension</a> of the BRI, and a response to the COVID-19 crisis to also boost China’s leadership in bio-technology and medicine. China has used this concept to rebrand the existing BRI by becoming a frontier in health technologies like using <a href="https://asia.nikkei.com/Spotlight/5G-networks/Coronavirus-helps-China-pull-ahead-in-the-5G-race">5G drones to deliver medical assistance</a> in Beijing, and emergency COVID-19 assistance all over the world.China <a href="https://news.cgtn.com/news/2020-07-27/China-to-enhance-cooperation-with-neighboring-countries-over-COVID-19-Stv2SvH9RK/index.html">recently held a joint conference</a> between Nepal, Pakistan and Afghanistan to combat COVID-19 together by building a new health network involving advanced digital connectivity and promoting it under the umbrella of the overall BRI mandate.Although in 2017, there was a flurry of activities in Chinese universities and think-tanks to discuss BRI initiatives, interest in it appears to have become somewhat subdued of late. Partly, it is the fallout of the pandemic, but even before the crisis hit BRI faced criticism in partner countries like Malaysia and Sri Lanka about risky, expensive projects that could be a ‘debt trap’. Large state-owned enterprises and banks started reconsidering how they viewed risks overseas, and advised a slowdown in investment promotion.In China itself, many <a href="https://www.ft.com/content/fb7436d6-b006-11e8-8d14-6f049d06439c?mc_cid=060a04b9b2&amp;mc_eid=f877bd4bdd">netizens were not happy</a> with their country’s eagerness to lend billions of dollars overseas when China itself has not fully lifted its own people from poverty. Managing public opinion in China is a sensitive topic for the leadership, and this could be another reason for large BRI projects not getting as much public exposure as before.However, even though within China the government may be keeping BRI in low profile for now, its activities and projects are up and running, though delayed somewhat this year by the global pandemic. The ongoing survey of the Xigatse-Gyirong railway is an example.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914114/636ba56d9c7e80680e0736c5jpeg.jpg" alt="" width="773" height="309"><figcaption></figcaption></figure>In Nepal, the public discourse on BRI has largely been associated with its geo-political risk, particularly because the MCC is seen as a countervailing American initiative in the global great game between the two world powers.China uses the BRI brand to project not just its strategic need for connectivity, but also as an extension of its soft power. However, in Nepal, the public perception of the BRI will be determined largely by its geopolitical content. For now, the BRI is equated almost solely as being synonymous with a future Gyirong-Kathmandu railway, and there is widespread public support for what many see as a catalyst for Nepal’s future development.But Nepalis may soon realise that the trans-Himalayan train may take decades to materialise, and in the meantime the BRI and its other initiatives are here to stay.Raunab Singh Khatri is a graduate student in Economics at the Yenching Academy of Peking University, Beijing.

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BRI and trans-Himalayan connectivity

<figure><img width="1500" height="826" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141156/636a603d9c7e80680e056e6cjpeg.jpg" alt=""/><figcaption>Illustration: BHANU BHATTARAI</figcaption></figure>Nepal’s leaders are basking in the glory of the state visit by <a href="https://www.nepalitimes.com/banner/what-is-xi-jinpings-big-surprise/">Chinese President Xi Jinping on 12-13 October</a>. This hangover is going to last till at least after Tihar.But sooner or later they (and we) will have to face the gritty reality that neither China or India are going to make Nepal. We have to do it ourselves. The most important message of the Xi visit, as <a href="https://www.nepalitimes.com/opinion/self-reliance-in-nepals-peace-corridor/">Sinologist Bhaskar Koirala</a> argues, is that Nepal should follow China’s example of self-reliance.Read also: <a href="https://www.nepalitimes.com/opinion/self-reliance-in-nepals-peace-corridor/" target="_blank" rel="noopener">Self-reliance in Nepal's peace corridor</a>, Bhaskar Koirala <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/banner/what-is-xi-jinpings-big-surprise/" target="_blank" rel="noopener">What is Xi Jinping's 'Big Surprise'?</a>, Saindra Rai and Irtika Bajracharya<a href="https://www.nepalitimes.com/latest/political-geography-of-india-nepal-china-ties/">Political geography of India-Nepal-China ties,</a> Passang Dorji in Thimphu The Chinese leadership has always been strong on symbolism, keeping a long-term time horizon, building a strategy to attain those goals, and implementing them. This time, too, President Xi timed his state visit to Nepal after an informal summit with Indian Prime Minister Narendra Modi in southern India. His message was that India is too important a trading partner, and China did not wish to jeopardise those ties over Nepal.The visit to Kathmandu may have been brief, but it underscored <a href="https://www.nepalitimes.com/editorial/what-china-really-wants/">China’s national interest</a> to see a stable and independent Himalayan buffer state. Chinese leaders ever since Mao Zedong have <a href="https://www.nepalitimes.com/here-now/elementor-3766/">advised Nepal’s leaders</a> to learn to live with India, and be smart about dealing with the rulers in New Delhi – advice that kings, prime ministers and party leaders in Nepal have not always heeded.Read also: <a href="https://www.nepalitimes.com/editorial/what-china-really-wants/" target="_blank" rel="noopener">What China really wants</a>, EditorialPrime Minister K P Oli pulled out all stops to make this visit happen, and to make it a memorable one for Xi. He micro-managed the arrangements, even getting Sur Sudha to rehearse the music the band would play at the state banquet. The f<a href="https://www.nepalitimes.com/opinion/kathmandu-gets-a-facelift/" target="_blank" rel="noopener">rantic and temporary facelift of Kathmandu streets</a> (only those that the Chinese entourage would drive past) carried its own symbolism: a shameless attempt by Nepali officialdom to hide governance failure, corruption, and neglect that made the capital so squalid.For the Nepal Communist Party (NCP) the visit was a useful way to distract a disillusioned domestic public from its non-performance over the past two-and-half years. The ruling party is being ridiculed for squandering its two-thirds mandate, its inability to rein in wayward officials, for impunity, and failure to provide basic services. Dangling future trains, tunnels and tollroads in front of people is not going to reduce their woes. There has been much scorn in social media telling the government not to sell dreams of railways when it cannot even maintain roads inside Singha Darbar.President Xi came across as a benevolent uncle, and used his state banquet speech to heap admiration on the Nepali people. We probably deserve that praise because Nepalis have been so patient with our feckless leaders for so long.But Xi also went on to chide Nepal quite pointedly on not completing infrastructure projects. Chinese contractors have firsthand experience of this: the on-again-off-again Budi Gandaki and West Seti, being given the run around by corrupt officials, extortion and local opposition in airport, hydropower, irrigation and other schemes. Xi had another bit of advice to the NCP: that Communists should not be greedy. To that, he could have added: they should also not have a lust for power (or other carnal desires).Our leaders at the Megha Malahar Hall of Soaltee Crowne Plaza listened to what Xi said, but we are not sure if they heard him. Or they just heard the  parts they liked: about Nepal now being “land-linked and not land-locked”. The emphasis on connectivity made sense, and although there was agreement on a detailed engineering study of the <a href="https://www.nepalitimes.com/banner/which-way-will-the-tibet-nepal-railway-go/">trans-Himalayan railway</a> and two highway tunnels to Kerung, the financial modalities were not discussed possibly because the Nepali side is by now aware of the ‘debt trap’.Nepal did not even raise the possibility of developing an alternative source of petroleum imports via China to reduce the country’s reliance on India, and there has been no progress on the <a href="http://archive.nepalitimes.com/article/nation/Tibet-train-Nepal,3102">Trade and Transit Treaty</a>. China’s emphasis on developing the Gandaki, Karnali and Kosi Corridors signifies support for stitching Nepal economically along a <a href="https://www.nepalitimes.com/editorial/trilateral-trains/">north-south axis</a>, after past attempts to split it east-west politically.    Of the other exchange of letters <a href="https://www.nepalitimes.com/here-now/nepal-now-has-to-balance-not-just-india-and-china-but-also-the-west/">the most sensitive</a> is the bilateral agreement on Mutual Legal Assistance, which could be a euphemism for (and a precursor to) an Extradition Treaty. Although crime by Chinese nationals in Nepal has increased, the agreement is obviously targeted at the 15,000 Tibetan residents and refugees in Nepal. It is not lost on anyone that the protests in Hong Kong this year were sparked off by a similar attempt at extradition.Nepal can only buttress its bargaining position with its giant neighbours if it builds greater self-esteem stemming from self-reliance. The strategy must be to take advantage of better connectivity for trade, jobs and economic growth.      <h2>10 years ago this week</h2> Ten years ago, President Bidya Devi Bhandari was Defence Minister in the UML-led coalition government. Nepali Times issue #472 of 16-23 October 2009 carried <a href="http://archive.nepalitimes.com/news.php?id=16385#.XaWMPNIza70">this Editorial</a> about her:Trust Bidya Bhandari to transform the most mundane issues of the Defence Ministry into the most pressing concerns of the nation. From the day she took charge, she has constantly ridiculed the Comprehensive Peace Agreement (CPA).Bhandari's claim that the peace agreement, which put arms procurement and new recruitment on hold, is affecting the preparedness of the Nepal Army is not without merit. However, the priority now is to protect the peace and write a new constitution. Strengthening the defence forces is necessary, but it is not the priority.The CPA is a faulty document, but for now, that's all Minister Bhandari has. She'd do well to implement its provisions and move on.<a href="http://archive.nepalitimes.com/issue/472"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141156/636a60409c7e80680e056e6djpeg.jpg" alt="" width="505" height="810"></a>

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Trans-Himalayan Handshake

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171148/636937169c7e80680e03fe17jpeg.jpg" alt="" width="696" height="841"/><figcaption>Bikram Rai</figcaption></figure>Africa marked the <a href="https://www.nepalitimes.com/banner/lest-we-forget/" target="_blank" rel="noopener">end of World War I</a> two weeks after Europe because it took that long to get out the message that the war had ended.Months after the end of World War II, <a href="https://www.nepalitimes.com/opinion/the-time-has-come-for-a-gurkha-peace-corps/" target="_blank" rel="noopener">Gurkha soldiers</a> were still in the jungles of Burma looking out for Japanese troops, unaware that a peace agreement had been signed.When British officers asked them how they found their way back, one of them produced a road map of London. Today, they would use Google Maps.In a recent episode of James Corden’s The Late Late Show, the CBS late night talk show had to make a real effort to explain to younger members in the audience what a 'letter', 'envelope', 'postage stamps' and 'mail boxes' were.<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/india-watching-from-nepal/" target="_blank" rel="noopener">Indian Prime Minister Narendra Modi</a> elaborated on his connectivity strategy in an address to Nepal’s Parliament on his first visit to Nepal in 2014 with the acronym 'HIT' standing for highways, information and transmission lines.This week, the number of people online throughout the world crossed 3.9 billion – more than half the global population. It took 100 years for the first billion people to say 'hello' on a landline phone. In the early 1990s, the only way to get a phone line in Nepal was to pay a hefty bribe or to register a company and to get a landline.In India, the joke in the old days was that 5% of the population had phones, and 95% was waiting for a dial tone. And across the border in India 'ISD, STD' were ubiquitous acronyms because long after Nepal’s telecommunications went digital in the 1990s, India still had analog phones under the ‘Be Indian, Buy Indian’ philosophy. Then it was cyber cafes, and now even those have been replaced by smartphones.In Nepal, the government does not distribute free mobile phones, and there are no donor-funded projects subsidising these devices. Yet everyone, rich or poor, has a phone. On the other hand, the government with donor support has been building toilets and providing free material and training. Yet, many people are still defecating in the open.Read also: <a href="https://archive.nepalitimes.com/regular-columns/half-full/take-advantage-of-Nepal-connectivity-with-India-China,1074" target="_blank" rel="noopener">Banking on Connectivity</a>, Anil ChitrakarNo one runs a literacy program on how to use a smart phone, yet everyone seems to know how to use one. Connectivity is clearly more important for people than <a href="https://www.nepalitimes.com/banner/toilet-trained/" target="_blank" rel="noopener">toilets</a>. There is a willingness to pay for connectivity, but that does not seem to apply for anything else. Nepal currently has full phone coverage and <a href="https://www.nepalitimes.com/banner/how-nepals-media-landscape-is-being-transformed/" target="_blank" rel="noopener">72% have access to the internet</a>.Now that access is less of an issue, the content and what people use connectivity for is up for debate. The Home Ministry blames the rise in rape cases across Nepal on online pornography. E-banking, <a href="https://www.nepalitimes.com/banner/nepals-budding-e-commerce-ecosystem/" target="_blank" rel="noopener">e-commerce</a> and Nepalis reaching family members across the globe on Viber or Skype are all obvious benefits. China’s next great leap forward is to skip credit cards and go straight into the mobile phone payment.The government now wants to provide online services hoping to fight corruption by reducing human contact. People now go online to pay bills, check a recipe, find offices and meeting locations, check on the people they are about to meet, do research, find images and to show off selfies with celebrities.You can listen to a great lecture, read archived articles in far away libraries, video chat and negotiate deals. One wonders how the world even functioned when we were not online. The <a href="http://archive.nepalitimes.com/blogs/kundadixit/2015/05/27/a-month-that-felt-like-a-year/" target="_blank" rel="noopener">earthquake of 2015</a> taught Nepalis to make a shift from a downloading society to an uploading one. We simply do not upload enough, but things are changing due to the social media and the trend of sharing images online.It will be interesting to analyse the data to see how many photos will be uploaded in this week’s weddings. And the results will probably show that just like the global digital divide is narrowing due to mobile connectivity, so is the digital divide within Nepal.Read also: <a href="https://www.nepalitimes.com/banner/how-nepals-media-landscape-is-being-transformed/" target="_blank" rel="noopener">Nepal's changing media landscape</a>Anil Chitrakar is President of Siddharthinc

Anil Chitrakar

Landline to online

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107161116/6369215c9c7e80680e03a0c9jpeg.jpg" alt="" width="1500" height="1046"/><figcaption>Photo: MONIKA DEUPALA</figcaption></figure>Imagine a large warehouse at Biratnagar airport that flies out on cargo planes tons of <a href="https://www.nepalitimes.com/here-now/chiampagne/" target="_blank" rel="noopener">high value tea</a>, <a href="https://nepalitimes.atavist.com/the-kingdom-of-cardamom" target="_blank" rel="noopener">cardamom</a>, nettle fibre products, rice, lentils and expensive aromatic oils and herbs to Bhutan, Bangladesh, Burma and Thailand. Imagine a train station at Mechi Nagar bringing tourists on their way to Tibet and Kathmandu on holiday.The <a href="https://www.nepalitimes.com/banner/bimstec-facelift/" target="_blank" rel="noopener">BIMSTEC Summit</a> last week in Kathmandu got a lot of flak. People complained that it was inappopriate to talk about regional connectivity when Kathmandu’s own roads were in ruins. Yet, the sub-regional grouping’s emphasis on connecting South Asia with Southeast Asia has a lot of potential.The distance between member countries is only in the mind. And even within Nepal it will be Province 1 that can be the gateway to future trade and multi- dimensional cooperation in roads and energy.What dampens this enthusiasm is the language of <a href="https://www.nepalitimes.com/editorial/sorry-state/" target="_blank" rel="noopener">BIMSTEC</a> bureaucrats that are not really actionable but just meant to keep politicians talking, the administration and security agencies baffled, the expensive venues occupied, and in the end nothing tangible ever comes out for the people who were stuck in long traffic jams and had to endure humiliation in the name of VIP security. The document is written by people who have no intention of doing anything, and is signed by Heads of Government whose political lifespan is so ephemeral that they just want to maintain the status quo.This lethal combination keeps our part of the world from growing economically. Let us take the three points in the Kathmandu declaration that talk about establishing the BIMSTEC development fund, the point about continuing to talk about creating a BIMSTEC free trade zone, and ending poverty by 2030.Could not the language in the resolution read: ‘We will create a BIMSTEC free trade zone across the member countries within one year, increasing the volume of trade by X% per year and; Y% of this will go to set up a development fund contributing to ending poverty.’ As the Beatles song goes, ‘You may think I am a dreamer, but I am not the only one…’In the true spirit of <a href="https://archive.nepalitimes.com/regular-columns/Analysis/how-decentralised-is-federalism,776" target="_blank" rel="noopener">devolution and federalism</a>, Province 1 could start working with Bhutan, Bangladesh, the states of Sikkim, West Bengal and Bihar of India to create a free trade zone in food, tourism and energy, without waiting for the central governments. The Chief Minister of Province 1, which is closest to the Bay of Bengal, could take the lead on behalf of Nepal and maybe even host the next <a href="https://archive.nepalitimes.com/article/nation/connecting-Bangladesh-China-India-Nepal,2966" target="_blank" rel="noopener">BIMSTEC</a> meeting there in three years to report back.In a part of the world where a country’s currency used by more than a billion people can be banned a few minutes before midnight, do not tell us we cannot start trading, allocating a percent of the revenue to a development fund and end poverty.Such actionable declarations could also make them much shorter. Could someone also tell us how much the Kathmandu meeting cost? <a href="https://www.nepalitimes.com/opinion/hugging-hogs/" target="_blank" rel="noopener">How much did the fencing around Tin Kune cost?</a> The people of BIMSTEC countries are not impressed by the number of expensive cars that are needed to take politicians from the airport to their hotels and their grand banquets.Why do they need helicopters in the sky to escort motorcades, when the guest could have been in the helicopter. Why do our politicians need a car and security to travel from their suites to meeting venues only 50m away?Nepal desperately needs access to the larger market that BIMSTEC has to offer. Aid will dry up sooner or later, free trade is more tangible and sustainable. It can raise productivity, quality and competitiveness will be the big variables. Industry, businesses and farmers will all have to roll up their sleeves. There could be real opportunity here.Anil Chitrakar is President of Siddharthinc

Actionable Summits

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107141112/636904a49c7e80680e037d34jpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Photo: MONIKA DEUPALA</figcaption></figure>That the fourth <a href="https://archive.nepalitimes.com/article/nation/connecting-Bangladesh-China-India-Nepal,2966">BIMSTEC</a> summit would be declared a “success” was a foregone conclusion because there wasn’t really much expected of the sub-regional economic grouping.The two-day conference concludes on Friday with the signing of a charter on regional cooperation by the leaders of India, Bangladesh, Bhutan, Burma, Nepal and Thailand in Kathmandu. This is the first time after 2015 that Nepal is hosting such a high level summit, and the NCP government sees it as a feather in its cap, pulling all stops to spruce up the capital.“It is an honour for Nepal to host the Summit, and BIMSTEC has great potential, we just need to cooperate on poverty alleviation through closer economic cooperation and connectivity,” Foreign Minister Pradeep Gyawali said.But will Nepal really benefit? The proof of the pudding will be in whether BIMSTEC can go where SAARC has not because of the India-Pakistan rivalry. It also links South Asia to Southeast Asia, and it is now up to member countries to look beyond bilateralism.“We are going step by step, but have made good progress on cooperation, including the energy grid,” BIMSTEC Secretary General Shahidul Islam told Nepali Times. This could be important for Nepal, with its hydropower potential.However, only a day before the Summit, China’s Three Gorges indicated it may pull out of <a href="http://archive.nepalitimes.com/blogs/thebrief/2012/04/02/green-light-to-west-seti/">the long-delayed 750MW West Seti project</a> designed to export surplus power to India.SAARC countries, five of whom are BIMSTEC members, already have a framework agreement on energy cooperation, signed at the Kathmandu Summit in 2014 that should have allowed power trading if there was political will.But India issued its<a href="http://archive.nepalitimes.com/blogs/thebrief/2016/12/09/indian-power/"> energy trade guidelines</a> in 2016, declaring that it will import hydropower from Nepal and Bangladesh only if it is produced by companies that are at least 51% Indian owned. That effectively killed Nepal’s chance of getting the Chinese involved.Ex-Energy Secretary Dwarika Nath Dhungel says: “Regional energy agreements mean nothing unless India revises its cross-border energy trade policy.”In August, Kathmandu and Dhaka signed an MoU to export electricity to Bangladesh. Bangladesh PM Sheikh Hasina made that request during a visit to New Delhi in April 2017, but there was no mention of it in the joint communique. Nepal has never bothered to raise it with India.Nepal aims to generate 15,000MW more electricity in the next 10 years, and could export the surplus to Bangladesh and beyond to Burma and Thailand.There are also fears BIMSTEC may jeopardise Nepal’s relations with China. India has persuaded BIMSTEC members to conduct a  joint military exercise shortly after the summit. Foreign Minister Gyawali clarified Nepal will not join any military alliance, but China and Pakistan are unlikely to be convinced.

Bimstec facelift

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107141112/6369048b9c7e80680e037d2bjpeg.jpg" alt="" width="1400" height="1167"/><figcaption>Diwakar Chettri</figcaption></figure>Now that the leaders of the awkwardly acronymed BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) are in the process of departing from Kathmandu after their fourth Summit, it might be the time for a post-mortem.The greatest achievement for Nepal from the Summit, as far as ordinary citizens of some parts of the capital are concerned, is that at least some of the muddy roads got paved, and the ugly dumping sites got fenced off.By the weekend, Kathmandu will be limping back to the old normal: <a href="http://archive.nepalitimes.com/news.php?id=18124#.W4fFP84zbIU" target="_blank" rel="noopener">traffic jams,</a> decrepit roads, crumbling sidewalks, a grubby jungle of brick and concrete. And people will once more go about their daily lives, resigned to the fact that through feudalism, absolute monarchy, dictatorship or democracy, nothing will really change in this country.No matter how many potholes were hurriedly patched, colourful gates erected, or flags allowed to hang limply above the motorcades, there was no hiding from visitors the rot within. The Thai leader reportedly refused to join the retreat in Gokarna despite the PMO’s prodding because of the poor condition of the road.What a sorry state Nepal has become with its decomposing democracy, eroding rule of law, <a href="http://archive.nepalitimes.com/article/editorial/state-of-impunity,2976" target="_blank" rel="noopener">impunity</a>, <a href="https://www.nepalitimes.com/editorial/gigantism/" target="_blank" rel="noopener">cheap populism</a>, a pandemic of corruption and dilapidated infrastructure. All the more glaring because we have a powerful ruling party with full mandate to fix it all if it wanted to.It might be best to call a moratorium on any future summits or high-level international conferences in Kathmandu until we get our own house in order by cleaning up the city and the politics. No matter how good our hospitality or how far-reaching BIMSTEC resolutions, the state of Nepal will influence the way the Nepali state is treated by our neighbours and the international community.BIMSTEC was set up 20 years ago as an alternative to SAARC, which got ensnared in India-Pakistan acrimony.Read also: <a href="http://archive.nepalitimes.com/regular-columns/GUEST-COLUMN/Boycotting-SAARC-is-not-the-answer,794" target="_blank" rel="noopener">SAARC minus 'X'</a>, Pradumna Rana<a href="http://archive.nepalitimes.com/regular-columns/Analysis/pride-and-prejudice-at-SAARC,394" target="_blank" rel="noopener">Pride and prejudice at SAARC</a>, Kanak DixitThe new sub-regional body tried to ‘look east’ with a focus on trade and connectivity by dropping Pakistan and adding Thailand and Burma, and picking up Bhutan and Nepal along the way. Getting South Asia’s plodding elephants to hobnob with Southeast Asia's sprinting tigers, however, has not been as easy as first envisaged. Even so, linking the northeastern quadrant of South Asia through connectivity, energy grids and trade could be beneficial for all members.Geopolitics, and the deepening polarisation between China and the US-India axis could put a spanner in the works. Beijing’s Belt Road Initiative competes with its emphasis on connectivity. BIMSTEC was India's way of sidelining Pakistan, and the military exercises of its member states in Pune next week is meaningful.There are other sub-regional initiatives besides the Dhaka-headquartered BIMSTEC. One of them is BCIM that evolved out of the Kunming Initiative and brings China’s Yunnan in an economic sphere with Bangladesh, India and Burma.Read also: <a href="https://archive.nepalitimes.com/article/nation/connecting-Bangladesh-China-India-Nepal,2966" target="_blank" rel="noopener">BIMSTEC, BCIM, BBIN</a>, - &amp; 'BCIN', Kanak Dixit<a href="http://archive.nepalitimes.com/regular-columns/by-the-way/reimagining-south-asia,396" target="_blank" rel="noopener">Re-imagining South Asia</a>, Anurag AcharyaWhen politics got in the way, countries in the sub-region tried to find a concrete do-able alternative and set up the BBIN (Bangladesh, Bhutan, India and Nepal) motor vehicle agreement. But even for something as simple as this, it looks like India’s suspicions about vehicles from Bangladesh and Nepal having unhindered passage through its territory, and Bhutan’s reservations about being swamped by Indian trucks has blocked progress.Despite all the effort being put into cross-border regionalism, however, it is in bilateral economic links that there has been most progress. Even on something as logical as a China-Nepal-India trans-Himalayan railroad, the agreements so far are separately between India and Nepal, and Nepal and China.President Xi Jiping has said he wants a quadrilateral deal with India, Nepal and Bangladesh on connectivity, but New Delhi is not ready to play ball. The energy grid agreed to in Kathmandu will be a test to see if BIMSTEC is really different from SAARC.Despite Nepal’s poor image, being a member of any regional or sub-regional grouping, however moribund, is an advantage. There is strength in numbers where there are two hefty neighbours right next door.Read also: <a href="http://archive.nepalitimes.com/regular-columns/On-the-way-up/Different-regionalisms-SAARC,987" target="_blank" rel="noopener">Different regionalisms</a>, Kanak Mani Dixit<a href="http://archive.nepalitimes.com/page/saarc-timeline" target="_blank" rel="noopener">SAARC timeline</a>, Ayesha Shakya<h2>10 years ago this week</h2>The page 1 story in <a href="http://archive.nepalitimes.com/issue/415" target="_blank" rel="noopener">Nepali Times #415</a> (29 August–4 September, 2018) showed how little things have changed in the geopolitics of the region in the past decade. As Kathmandu hosts the BIMSTEC Summit this week, it is a good time to re-read Mallika Aryal’s <a href="http://archive.nepalitimes.com/news.php?id=15161#.W4zX3s4zaUk" target="_blank" rel="noopener">dispatch from New Delhi ten years ago</a>:By ignoring Indian concerns and accepting Beijing’s invitation to the Olympics closing ceremony last week, Prime Minister Pushpa Kamal Dahal set alarm bells ringing here. Indian politicians and foreign policy bureaucrats tried to play down Dahal’s ‘China card’, but the military-intelligence establishment, the opposition BJP and some hawkish commentators have voiced concerns about China’s growing influence in India’s neighborhood.‘Prachanda’s Beijing sojourn merely confirms the subcontinent’s shifting balance of power in China’s favour,’ wrote the Indian Express in an editorial on Tuesday, a view echoed by other influential commentators here. ‘Prachanda’s departure from Nepal’s natural logic for a strong relationship with India can only be understood in the context of Beijing’s new powerplay in South Asia.’<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107141112/6369048e9c7e80680e037d2cjpeg.jpg" alt="" width="509" height="813">

Sorry state

Energy is a critical ingredient for prosperity, and can be a catalyst for deeper regional integration. Energy security is a critical issue for <a href="http://archive.nepalitimes.com/regular-columns/image/Cycling-Kathmandu-Lhasa,396">South Asia</a>, which is home to nearly one-fourth of the world’s population and where economies are growing by an average of nearly 7% each year.But South Asia’s GDP per capita is less than one-third of the global average, and per capita energy consumption is far below the rest of the world, hinting at unmet need in spite of increasing economic growth, industrialisation, an increasing population, and accelerating urbanisation. All of these changes increase the <a href="http://article/nation/nepal-india-thermal-power,3570" data-wplink-url-error="true">demand for electricity</a>.There have been several positive developments in energy cooperation: the 2014 SAARC Framework Agreement on Energy Cooperation and the Power Trade Agreement between India and Nepal. Bilateral frameworks between India and Bangladesh, as well as India and Bhutan, have also been strengthened. Currently, around 2,300MW of power are traded in this BBIN sub-region.These demonstrate win-win benefits for all South Asian countries. For example, Bhutan’s surplus hydropower exports to India account for 25% of its GDP. Bangladesh began importing 500MW of power from India in 2013, helping it reduce load-shedding by 70% and generate annual savings of around $500 million. India also gains by earning revenue from electricity exports.A 2015 World Bank study found that regional electricity cooperation in South Asia could lead to savings of $19 billion per year over the next 25 years. A 2017 study by the USAID-funded South Asia Regional Initiative for Energy Integration (SARI/EI) showed that accelerated power trade between India and Nepal could increase Nepal’s GDP by over $120 billion in the next 30 years.Energy cooperation is therefore not just about increasing integration but also an essential building block for regional prosperity. The US government actively supports regional energy integration in South Asia. We are committed to fostering connections from Central Asia to Southeast Asia, and everywhere in between – through increased physical infrastructure, coordinated regulatory and trade institutions, and human and digital connectivity.<a href="http://archive.nepalitimes.com/regular-columns/image/Chief-of-Indian-Army-Staff-General-Dalbir-Singh-in-Kathmandu,987">Regional integration</a> is not just good for South Asia, it is good for the world, including the United States. A more stable, prosperous, and integrated South Asia is more likely when countries of the region are linked through trade agreements and have greater physical infrastructure connections. Our activities include technical training on power contracts, procurement, regulation, and electricity system modeling as well as physical infrastructure – such as the planned 300 km of electricity transmission lines in MCC’s Nepal Compact.International experience has shown that most cross-border power trade begins with bilateral interactions which provide a foundation for multilateral arrangements and transactions. South Asia is moving along this path, and the next step is to coordinate regional energy regulations and policies by:Building strong and effective regulatory regimesDesigning competitive market pricing mechanismsDeveloping solid contracts and agreementsSetting up dispute resolution mechanisms, andSupporting a technical regional coordination agency to facilitate regional planning and development.The United States looks forward to working with both the public and private sector, as well as multilateral organiations, to em-power South Asia. Pun intended.Alaina B. Teplitz is the United States Ambassador to Nepal. This Guest Editorial is adapted from her speech to the 6th SAARC Business Leaders Conclave in Kathmandu on 17 March.Read also:<a href="https://www.nepalitimes.com/editorial/shared-futures/">Shared futures</a>, EditorialDifferent regionalisms,  Kanak Mani Dixit<a href="http://archive.nepalitimes.com/regular-columns/image/photo-exhibition,402">Forget SAARC</a> ,  Pradumna B Rana<a href="http://archive.nepalitimes.com/regular-columns/image/Cycling-Kathmandu-Lhasa,396">Reimagining South Asia</a>,  Anurag Acharya

Em-powering South Asia

Mention the acronym <a href="http://archive.nepalitimes.com/regular-columns/image/Chief-of-Indian-Army-Staff-General-Dalbir-Singh-in-Kathmandu,987">SAARC</a> and eyes glaze over, people stop reading editorials like these and they turn the page – as some of you probably already have. The South <a href="http://archive.nepalitimes.com/regular-columns/image/photo-exhibition,402">Asian Association for Regional Cooperation</a> has been a regional talk shop ever since it was set up more than 40 years ago, unable to fulfill many of the promises it made about co-prosperity, cooperation, poverty alleviation, energy self-sufficiency, and environmental protection.Unlike ASEAN or the EU, SAARC is hobbled by its asymmetry. One member state has 1,000 times more people than the two smallest countries in the grouping. That gravitational pull, and India’s aversion to multilateralism in dealing with neighbours (combined with a chronic lack of political will among those neighbours to make SAARC work) has hobbled the organisation. There is cynicism about SAARC, even officials from member states publicly poke fun at it. But, like the United Nations, SAARC can only be as effective as its members want it to be.Sub-regional groupings like <a href="http://archive.nepalitimes.com/article/nation/connecting-Bangladesh-China-India-Nepal,2966">BIMSTEC</a> (Bangladesh, India, Sri Lanka, Thailand, Myanmar Economic Cooperation) and the Bay of Bengal Initiative are somewhat more tangible. There are also Track 2 think-tanks and private sector initiatives to get the SAARC juggernaut to roll.The 6th SAARC Business Conclave this week in Kathmandu was one such exercise where, besides the usual lament about unfulfilled aspirations, there was networking and useful sharing of ideas. As in all such SAARC-related events, the elephant in the room was India, and the need to balance its size with its status as an equal member state.However, the dragon in the room was China. How can these economic behemoths be hitched to pull in the same direction, and take South Asia along? So far, Beijing's foray into trade, investment and connectivity in South Asia have been bilateral, but its Belt Road Initiative hopes to go regional with the possible extension of the <a href="http://archive.nepalitimes.com/article/nation/Tibet-train-Nepal,3102">Qinghai-Tibet railway through the Himalayan Range</a>, and across Nepal to India.SAARC has been held hostage by politics, specifically the strained relations between its two biggest members, for far too long. Trade, investment in energy, river sharing and better connectivity within South Asia could help bind the countries more closely, and build on existing bilateral agreements, as US Ambassador Alaina B. Teplitz argues in this week’s <a href="https://www.nepalitimes.com/opinion/guest-editorial/em-powering-south-asia/">Guest Editorial</a>.It is incongruous that intra-SAARC trade constitutes only 5% of the international trade of countries in the region. Of all international investment in the region only 7% is between SAARC members. It is absurd that in this day and age the world’s most deprived region should not be working together to raise the living standard of its people.Read also:<a href="https://www.nepalitimes.com/opinion/guest-editorial/em-powering-south-asia/">Em-powering South Asia,</a> Alaina B. Teplitz<a href="http://archive.nepalitimes.com/regular-columns/image/Chief-of-Indian-Army-Staff-General-Dalbir-Singh-in-Kathmandu,987">Different regionalisms</a>,  Kanak Mani Dixit<a href="http://archive.nepalitimes.com/regular-columns/image/photo-exhibition,402">Forget SAARC</a> ,  Pradumna B Rana<a href="http://archive.nepalitimes.com/regular-columns/image/Cycling-Kathmandu-Lhasa,396">Reimagining South Asia</a> ,  Anurag Acharya