If it is October, it must be Dasain in Kathmandu. And it must be time for Surya Nepal Jazzmandu. This year, the 17th edition of the Kathmandu Jazz Festival returns with artists from all over the globe performing in the city.International bands like Tropic Green, RSxT, Adrian Crookston &amp; Palouse Forro, Paul Tynan &amp; Jake Hanlon and Faby Medina, as well as The Blue Fret, Cadenza Collective and Jooni from Nepal will be performing from 17-23 October in different venues in Kathmandu Valley.Jazz has come a long way from the African American communities on the cobbled streets of New Orleans in the late 19th century to different corners of the globe. It has evolved into latin jazz, gypsy jazz, Afro-Cuban jazz, and even Nepali jazz. But even though the blues and swing-inspired art form has branched out, improvisation -- the essence of jazz -- is still its heart and soul. Read also: <a href="https://www.nepalitimes.com/here-now/kathmandu-and-all-that-jazz/" target="_blank" rel="noopener">Kathmandu, and all that jazz …</a>, Sewa Bhattarai“In Nepal, jazz has influenced and inspired lot of Nepalis into listening, learning and playing jazz. Surya Nepal Jazzmandu has promoted jazz in Nepal and has brought renowned world class musicians to audiences in Kathmandu” says Samir Chettri, an organiser of the festival and band member of Cadenza Collective.The Collective with its eclectic Afro-Funk tunes, Nepali lyrics and jazz undertones have defined the diverse identity of Nepali jazz since its inception almost two decades ago. With the bass, keyboard, bansuri and sarangi. The Blue Fret band has also created its own jazz sound, combining the swing and blues roots of jazz with the traditional spin of Nepali instruments.Read also: <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/jazzing-up-in-kathmandu,3316" target="_blank" rel="noopener">Jazz it up in 'Mandu</a>, Sahina ShresthaJooni, a quintet composed of artists from Nepal and around the world, embodies the sound of modern jazz and traditional Nepali music, giving life to a diversity of sounds and rhythms. The variety of international and national artists this year will add music to the streets and halls of Kathmandu between the holidays, sprinkling their melodious magic.Says Chettri: “Having musicians from different parts of the world brings cultural interaction and diversity. The fusion of Nepali classical music with jazz has also been one of the biggest highlights of the festival. The festival itself is a very inspiring and unique experience for visiting artists, Nepali musicians as well as the audience.” Read also: <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/sounds-of-west-africa-julia-sarr-quartet,3977" target="_blank" rel="noopener">West African Soul</a> <h2>Paul Tynan and Jake Hanlon, Canada</h2> Trumpeter Paul Tynan and guitarist Jake Hanlon are a dynamic jazz duo from Canada. Having played together for more than 10 years, they have developed a rare musical chemistry that is ever present through their fluid improvisations during performances.“Improvisation is the heart and soul of jazz. It’s where the art lives in jazz music.  As a jazz musician improvisation means creating new music in the moment while being mindful of the surrounding sonic environment and what the other musicians are contributing to that by reacting and interacting. It’s a lot like a deep verbal conversation in many ways.”   <img width="500" height="419" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141152/636a5f2b9c7e80680e056e0ejpeg.jpg" alt=""/><h2>Faby Medina, France</h2> <img width="500" height="419" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141152/636a5f2d9c7e80680e056e0fjpeg.jpg" alt="">Faby Medina is a captivating singer-songwriter who released her debut album Following Love in 2017.Her songs are deeply personal, upbeat, occasionally influenced by her Caribbean background and touched with soul, swing and pop. She will be backed by Frank Herrgott (keyboard), Bruno Schorp (bass) and Julie Saury (drums).“Ella Fitzgerald! The first time I heard her voice, I was in shock. Her swing, her scat, her humour, her joy! I just fell in love! My Caribbean roots has also influenced my sound. It helps me to sing with my body. My parents come from Guadeloupe and it’s very important to dance out there! Everyone is comfortable with their body.” <h2>The Blue Fret</h2> Led by the musical Suman Thapa, this Nepali band combines the traditional sound of the bansuri and sarangi with western tones and both English and Nepali lyrics. Its much anticipated debut album Jiri Blues was released in 2018.“When music came through, it was hard to separate the western and eastern style, and the genres we experimented with. But the music incorporated all the elements and it worked. The versatility of the musicians, and the open mindedness to play what feels and sounds good has been crucial to executing this.” <img width="500" height="419" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141152/636a5f2f9c7e80680e056e10jpeg.jpg" alt=""><h2>Jooni Collective</h2> <img width="500" height="419" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141152/636a5f319c7e80680e056e11jpeg.jpg" alt="">Jooni Collective is the musical project of pianist and composer Abhisek Bhadra and vocalist Maria Fajardo. Now a quintet with Alessio Cazzetta on the guitar, Rajat Rai on the bass and Kiran Shahi on the drums, its music is a reflection of the diverse backgrounds and experiences of members.“Nepali music is a very rich tradition with a lot of variations. But the reason why most traditional Nepali music forms, specially Nepali classical music and jazz does work well together is that both forms of music are deeply rooted within the concept of Improvisation. Same is the case for jazz and most folk traditions. Whether or not it blends seamless together or not simply relies on the artist’s intentions and methods to achieve it.” <h2>Adrian Crookston &amp; Palouse Forro, USA</h2> Palouse Forró’s music isn’t exactly ‘jazz’. Forró is a genre, dance, rhythm, that originates in the northeast of Brazil. The sound is inspired by the language of jazz and improvisation through the percussion and accordion. Much of its style is influenced by premier jazz accordion players like Dominguinhos and Sivuca who got their start with Forró.“For me, Jazz is an incredible innovation and gift given to the world primarily by Black Americans. Now, people all over the world are innovating in Jazz, it’s happening right here right now in Kathmandu and has been for a while by Nepalis too!” <img width="500" height="419" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141152/636a5f329c7e80680e056e12jpeg.jpg" alt=""><h2>Tropic Green, Singapore</h2> <img width="1400" height="788" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141152/636a5f349c7e80680e056e13jpeg.jpg" alt="">Tropic Green is an 8 piece jazz band based in Singapore and composed of musicians from Singapore, Venezuela, USA and Cuba. Its music is composed and arranged by pianist Susan Harmer. According to Harmer, 5 horns give the band its unique sound, adding harmonic and textural richness to their music.“Jazz musicians are unashamed borrowers -- there is no single element that is uniquely jazz. Jazz borrows harmonies, rhythms and the element of improvisation from all global genres. It is this universal richness, where no single performance of a tune is alike that is recognized as being jazz.” <h2>Eastern Classical</h2> <img width="1400" height="417" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141152/636a5f379c7e80680e056e14jpeg.jpg" alt="">Vocalist Manmohan Thapaliya Sharma has performed across Nepal and India and has recorded two albums Kahile Gham Kahile Chayaand Shanti Sutra. Flautist Dhan Bahadur Gurung honed his skills in a workshop with the legendary Hariprasad Chaurasia, and received accolades for his work. Gandharva, a travelling traditional Nepali band, has taken its music across the villages of Nepal, keeping folk music alive with classic medleys and local instruments. The late Rabindra Lal Shrestha was a maestro of classical Nepali music. His compositions, teachings and tabla-playing skills have left a lasting impression on younger musicians. His son Bijay Shrestha is performing at Surya Nepal Jazzmandu to pay tribute to his father who remains an inspiration to a new generation of tabla players.“Our classical Nepali music and traditional songs are a part of our identity, history and culture. It is our duty to preserve it. But it can only be preserved and promoted through the collaborative efforts of the government, media, fine arts education and programs like Jazzmandu.”  <h2>Cadenza Collective</h2> <img width="1400" height="707" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141152/636a5f399c7e80680e056e15jpeg.jpg" alt="">Cadenza Collective, Nepal’s first jazz band, seamlessly blends Jazz, Afro-funk and Nepali folk music with an eclectic, energetic sound. It not only pioneered jazz in Nepal but also experimented with it to create a completely unique form of jazz.“Jazz has got better and has come a long way in Nepal, it has become a household word alongside other music genres. Besides guitar, bass, keyboard and drums, we have young musicians picking up horns (trombone, trumpet, and saxophone etc.) and quite a few jazz bands in the scene. It's looking good but we got to keep on pushing further <h2>RSxT, Germany</h2> <img width="1400" height="787" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141152/636a5f3c9c7e80680e056e16jpeg.jpg" alt="">RSxT breaks through genre barriers by seamlessly blending jazz, electronic music, soul, pop and hip-hop. The ‘x’ in RSxT (Roman Schuler X Trio) stands for ‘unknown and the extraordinary’ and ‘for the crossing of Boundaries and directions’. As it constantly remixes its own music, you will never truly know what to expect but you can always look forward to an exciting and dynamic performance.“Jazz for us is not only a genre, but more the permission to be free while expressing ourselves. I love combining the lyrical power of the piano with grooving beats. Hip Hop, Soul and Electronic are styles that have this groove, and also have the space for keyboard sounds of all kinds. I love all this styles and that is why I want to play them, bring them together and mix genres. I'm not afraid to break boundaries.”“Although we are all educated jazz musicians, Jazz for us is not only a genre, but more the permission to be free while expressing ourselves. I love combining the lyrical power of the piano with grooving beats. Hip Hop, Soul and Electronic are styles that have this groove, and also have the space for keyboard sounds of all kinds. To most simply answer is: I love all this styles and that’s why I want to play them, bring them together and mix genres. I'm not afraid to break boundaries.” <h2>Surya Nepal Jazzmandu 2019</h2> CONCERT FOR YOUNG STUDENTS12-1:30pm, 17 October Alliance Française, Jhamsikhel By invitation only Jazzmandu kicks off with a free concert playing great music for young minds. The Concert for School Students continues Jazzmandu’s long tradition of promoting music education and cross-cultural understanding. Interested schools and individual students can request invitations by writing to info@jazzmandu.org. Seating is limited. Gates open at 11.30 am, please be seated by 11.50 am. GROOVIN AT UPSTAIRS7-9pm, 17 October Jazz Upstairs, Lazimpat Ticket: Rs600Cadenza Collective gather new and old friends for an explosive jam at the heart of Jazz in Nepal, Jazz Upstairs! Gates open at 6 pm. Seating is limited. VALLEY JAMS7-9pm, 18 October Ticket: Rs600Moksh, Jhamsikhel – Tropic Green  Jazz Upstairs, Lazimpat – Paul Tynan &amp; Jake Hanlon / Palouse Forro  House of Music, Thamel – RSxT  Manny’s Eatery and Tapas Bar, Jawalakhel – Faby Medina Gates open at 6 pm and close at 7 pm. Seating is limited. JAZZ BAZAAR2:30-10pm, 19 October Gokarna Forest Resort Ticket: Rs1400Get away from the hustle and bustle of Kathmandu and be surrounded by the lush, serene Gokarna Forest Resort and great music. Gates open at 1.30 pm and close at 7 pm. Seating is limited. A ticket does not guarantee a seat. No outside food or beverages allowed. No pets allowed. Free shuttle buses to Gokarna will depart every hour from 1 pm to 4 pm from outside Hotel Marco Polo in Kamal Pokhari, and will stop for pick-ups outside the Hyatt Regency gate in Boudha. Return shuttles will be available between 10 pm and 11 pm, with drop-offs at Boudha and Kamal Pokhari. SOUNDS OF LATIN JAZZ7-9pm, 20 October Dhokaima, Patan Ticket: Rs1600Experience the sounds of authentic Afro-Caribbean and Brazilian Jazz. Gates open at 6 pm and close at 8 pm. Seating is limited. JAZZMANDU MASTERCLASSES11am-1:30pm, 22 October Kathmandu Jazz Conservatory, Jhamsikhel  –Vocal &amp; Instrumental Workshops Free Entry The Jazzmandu master classes are an opportunity for music students &amp; jazz enthusiasts to interact with visiting musicians, share their experiences and stories and learn techniques and tips on various instruments and vocals. Seating is limited and not guaranteed. JAZZ AT THE TEMPLE HOUSE6:30-8:30pm, 22 October Kantipur Temple House, Thamel Ticket: Rs1600An evening of Nepali classical music fused with Jazz in a rich and soulful ambience. International musicians share their musical ideas and energies with Nepal’s top classical musicians and Cadenza Collective at the fabulous Kantipur Temple House. Gates open at 5.30 pm and close at 7pm. Please be seated by 5.45 pm. Seating is limited. JAZZMANDU FINALE5:30-10pm, 23 October Hotel Yak &amp; Yeti, Durbar Marg Ticket: Rs1400The Finale BIG JAM! Musicians from different bands come together on one stage to light up the festivities creating a high-energy, improvised musical treat. Gates open at 4.30 pm and close at 8pm. Seating is limited.

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Jazz returns to the 'Mandu

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141116/636a57049c7e80680e0547b9jpeg.jpg" alt="" width="4032" height="3024"/><figcaption>The Druk Air fleet at home in Paro airport</figcaption></figure>Our flight arrived 45 minutes early. "Only in Bhutan, never in Nepal," grinned a retired army general shouldering his golf clubs and duty free at Kathmandu airport, heading for a weekend on the golf course.On landing in the unique traditional Paro airport, the mountain air fizzed and buzzed with excited tourists snapping selfies and Bhutanese rejoicing on return. Having admired the white Himalayan giants from afar, passengers shared palpable relief at the safe descent with farmhouses, fields and rocky crags flashing by just beyond our wingtips.The Druk Air dragons coil confidently on the orange yellow aircraft tails, and helpful women in colourful kira stamp us into the country from behind fragrant wood desks. Outside, men dressed in gho and knee socks take trouble to assist those caught out by the early arrival to link up with their drivers. Ah yes, the familiar magic of Bhutan is already weaving its spell.I have been here many times, but am still hopelessly susceptible to the enchantment. When Bhutan first opened to tourism in 1974 it was not long before I had a chance to visit with our client, Lindblad Travel. The Swedish visionary entrepreneur, Lars-Eric Lindblad, represented Bhutan from a corner of his New York office draped in prayer flags and woven cloth, and first advised His then-Majesty on the ‘high value, low volume’ model of tourism.Although I only got to Paro and Thimphu on that first visit, from the tortuous roads we spotted otters playing on the riverbanks, and I was captivated by the royal pageantry, ubiquitous archery, claret-clad monks and intense potency of the fortress dzong.Read also: <a href="https://www.nepalitimes.com/opinion/so-far-so-good/adventurers-in-a-vanishing-land/" target="_blank" rel="noopener">Adventures in a vanishing land</a>, Lisa Choegyal<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141116/636a57079c7e80680e0547bajpeg.jpg" alt="" width="1632" height="1224"><figcaption> </figcaption></figure>I have helped with tourism, movies and events in Bhutan on a number of occasions. In 1992, Bernardo Bertolucci strutted the stone flagged courtyards of the massive Paro Dzong, directing with flair and flailing arms the feature film Little Buddha, more ambitious and elaborate than ever again attempted in that holy precinct.Special permissions were needed from the royal government for such an unusual invasion, and my quest graduated from officials in the rows of humble wooden sheds that housed the civil service, to the carpeted offices and corner stairways in the main seat of government in Thimphu, the Tashichho Dzong 'fortress of the glorious religion'.Ravens called and pigeons circled as we negotiated the guards and stepped through the huge doorways into the grey stone precincts, our Bhutanese escorts adjusting their raw silk sashes of formal respect. Sloping walls glowered above us to the painted eaves and massive roofs, and the quarters of the ruling monarch were indicated to us with due deference through the next courtyard. When the rare permission was granted, with typical charm the Foreign Minister hosted us to a celebratory dinner, sitting on carpeted benches and eating red rice, cheese and chillies off small carved tables.A decade later we were back to prepare a national ecotourism strategy, consulting for the tourism authority under the unforgiving eye and dishevelled goh of veteran Thuji Nadik, never one to suffer fools. With our WWF clients we trekked into the back blocks of Bumthang, through flowering rhododendron forests, remote palace strongholds and rural villages, staying in richly decorated houses with sparse impoverished interiors.Read also: <a href="https://www.nepalitimes.com/opinion/so-far-so-good/infectious-enthusiasm-for-travel/" target="_blank" rel="noopener">Infectious enthusiasm for travel</a>, Lisa Choegyal<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141116/636a570b9c7e80680e0547bbjpeg.jpg" alt="" width="640" height="480"><figcaption> </figcaption></figure>We happened to be in Thimphu on 9/11, watching the New York drama unfold on a flickering screen in our favourite Yeedzin Guesthouse. The King called every American in the country to personally condole them and the monk body dedicated days of prayers to those lost in the Twin Towers. By a twist of fate, I stayed in that same guesthouse room last month, little changed since 2001, with familiar erratic service, creaking wood floors and wobbly taps, but now dwarfed by international brand hotels -- a six-lane bypass runs alongside Thimphu’s old archery ground.Read also: <a href="https://www.nepalitimes.com/opinion/recreating-tiger-tops-in-the-tropics/" target="_blank" rel="noopener">Recreating Tiger Tops in the tropics</a>, Lisa Choegyal<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141116/636a570c9c7e80680e0547bcjpeg.jpg" alt="" width="640" height="853"><figcaption> </figcaption></figure>For Thuji and his team we returned several times with the ADB, working on Buddhist circuits and ecotourism. Driving to Mongar and Trashigang in the far east with our Nepali aviation colleagues, we inspected existing and proposed airports, trekking up hilltops to assess feasibility and enjoy the flowers, forest and mountain scenery.Near Trongsa we were rewarded with golden langurs leisurely crossing the road and, in the marshy valley of Phobjica, the sacred black-necked cranes honoured us with their elegant disdain. Communications in those days were so difficult that the Civil Aviation director in Paro was surprised when we reported that Yonphula airstrip, close to the Arunachal Pradesh border, had been recently resurfaced.During a job with the Norwegians, checking out tourism and environmental implications of a proposed hydropower master plan, we indulged in fly-fishing for trout in the pristine rivers. Strictly catch and release, the rules permit fishing only when out of eye-sight of any religious monument, dzong, chorten or stupa. One of Bhutan’s less likely exports is hand-tied flies for the world’s recreational fly-fishers.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141116/636a570f9c7e80680e0547bdjpeg.jpg" alt="" width="640" height="480"><figcaption> </figcaption></figure>Bhutan is the first country in the world to become carbon negative: its forests absorb more carbon than its inhabitants burn. But although much admired as an astute national policy, Bhutan’s uniquely-managed, pre-paid tourism with its tiny population of some 800,000 people and gross national happiness brand is hard, probably impossible, to replicate elsewhere. Amongst our recommendations was to evolve the tourism strategy to ‘high value, low impact’, using financial mechanisms to control visitors at sustainable levels, nurturing the cultural ‘Bhutan style’ for visitors. And to find ways that more tourism benefits can stick in the countryside, something at which Nepal has been far more successful.Bhutan these days is on the move. Lofty electricity pylons march across the country, competing with the hosts of fluttering prayer flags that clamber up the steep ridges above the valley floors. Construction sites have come to characterise the creeping city perimeters of Paro and Thimphu as Bhutanese crowd in from the countryside, and pressure from Indian tourists threatens Bhutan’s grip on its carefully crafted tourism objectives.New hotels and apartment blocks faithfully reflect the carved and painted vernacular architecture of this last Himalayan eyrie, but new roads scar the hillsides and laden trucks grind their way up from India. The swarm of smart imported SUVs have to watch out for horses and mules grazing unfettered along the roadside, avoid the dogs supine in the sunshine, and steer around cows sleeping on the warm tarmac.But some things never change in this blessed kingdom. They still proudly wear their glamorous national garb, blithely manage their dependence on India,<a href="https://www.nepalitimes.com/opinion/who-stands-with-bhutanese-refugees-in-nepal/" target="_blank" rel="noopener"> ignore the thorny issue of refugees</a>, and zealously guard their traditions, navigating the cultural clash of ancient and modern. The Bhutanese must be the only nation on earth who so genuinely and universally adore and revere their royal family. Inspirational they are too, and I for one am happy to be bewitched by Bhutan.Read also: <a href="https://www.nepalitimes.com/opinion/so-far-so-good/the-kathmandu-crowd/" target="_blank" rel="noopener">The Kathmandu Crowd</a>, Lisa Choegyal

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Bhutan is on the move

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>?

eastern

Jazz returns to the 'Mandu

Bhutan is on the move

30 years after Baby Arun

The flower guy

Big, beautiful Bills

Size does not matter