More than 2.5 million Nepalis left the country just in the last three years to study and work abroad. In the past year alone, <a href="https://nepalitimes.com/news/push-factors-driving-nepalis-out">nearly 900,000 students and migrant workers flew out of Kathmandu airport</a>. These figures do not include those who crossed over to India.&nbsp;
There were, of course, returnees in that period, but it is estimated that up to 16% of Nepal’s population at any given time is outside the country. Most of them are 20-35 years old, which means an estimated q<a href="https://nepalitimes.com/news/nepals-demographic-window-is-closing">uarter of all Nepalis in that age group are abroad</a>.&nbsp;
It is mandatory for students going overseas to get a certificate from the Ministry of Education, and last year alone 112,593 were issued -- nearly double the pre-Covid figure (graph, below).
Before leaving, Nepali students officially exchanged Rs117 billion last year into hard currency to pay for their education costs. The actual figure through unregulated channels is probably higher.
<div class="embed-block"><iframe title="MORE NO OBJECTIONS" aria-label="Column Chart" id="datawrapper-chart-OBL1y" src="https://datawrapper.dwcdn.net/OBL1y/2/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="600" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}(); </script>All graphs: RAMESH KUMAR</div>
<div class="embed-block"><iframe title="$ in, $ out" aria-label="Column Chart" id="datawrapper-chart-gUPnY" src="https://datawrapper.dwcdn.net/gUPnY/4/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="600" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}(); </script></div>
Meanwhile, the 4 million <a href="https://nepalitimes.com/opinion/guest-editorial/the-migration-myth">Nepali migrant workers</a> in Malaysia, Qatar, Saudi Arabia, UAE, Kuwait, Korea, Europe and elsewhere sent back through banking channels Rs1.47 trillion in remittances ($11 billion) last year. Actual figures are higher.
“The great irony is that while poorer Nepalis toil in the Gulf and Malaysia to increase our foreign exchange reserves, middle and upper class families are exchanging a part of that money to pay for college fees, travel and medical care abroad,” points out migration researcher Ganesh Gurung.
The numbers going to Australia and Canada dropped last year because of visa restrictions. But that has been more than made up by a 30% uptick in <a href="https://nepalitimes.com/here-now/nepal-s-hard-working-students-overseas">Nepali students</a> going to the US (11,261) and UK (13,339) compared to last year.
But by far the largest number of students are going to <a href="https://nepalitimes.com/banner/why-nepalis-are-flocking-to-okinawa">Japan</a> (34,731) which is also an increase of 30% over the previous year (map, below). Numbers going to <a href="https://nepalitimes.com/news/yo-man-ta-mero-nepali-ho">South Korea</a> doubled in one year to 6,889.&nbsp;
Nepalis go to 66 countries for higher studies, with <a href="https://nepalitimes.com/here-now/looking-for-the-nepali-dream">Denmark</a>, Finland and France becoming more popular, although the numbers are still much lower than the top six.
Till recently, Nepalis were the third largest number of foreign students in Australia. They were number three also in Canada. Nepalis were among the top ten in the US.
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It is no secret that many young Nepalis leaving on student visas <a href="https://nepalitimes.com/banner/migration-certificate">intend to emigrate permanently</a>.&nbsp;
Countries in the Global North experiencing declining populations know this, but find it a convenient way to allow controlled entry for much-needed workers in the service or tech sectors.
“Many young Nepalis plan to settle in first-world countries eventually, or to return only after 10-20 years,” affirms migration expert Ganesh Gurung.&nbsp;
“Destination countries benefit too, they are getting a new generation of cheap labour without having spent anything on raising or educating them. What’s more, they also earn university fees. It’s a way for them to allow calibrated migration,” he adds.
Nearly half the students coming out of 10+2 schools opt to go <a href="https://archive.nepalitimes.com/regular-columns/Between-the-lines/More-Nepali-students-settle-overseas,528">abroad for higher education</a>, leading to a significant drop in college enrolment across Nepal.&nbsp;
Just like migrant workers are a safety valve that lets the government off the hook from providing jobs at home, students going abroad allows the state to dodge its responsibility to improve higher education quality here.&nbsp;
Indeed, some argue that better universities and colleges in Nepal would not lessen the exodus of young Nepalis, because many of them intend to emigrate for good.&nbsp;
“Yes, student visas have become a means to an end, <a href="https://nepalitimes.com/editorial/hardworking-students">the goal is to work and settle</a>,” says Narottam Aryal of King’s College in Kathmandu. “But more alarming than the figures of students leaving is that we are taking it so casually, calling it normal."&nbsp;
He adds: “Let us not worry about people who will leave anyway, but focus on the students who will stay if Nepal’s higher education is system is redesigned, repurposed and reformed to foster an entrepreneurial mindset so they benefit the country.”&nbsp;
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The method of education in state-run colleges and universities are still stuck in the era of rote learning taught by under-motivated teachers using outdated curricula, regurgitating memorised answers at exam time. The university environment is politicised and there are frequent disruptions with delayed exam results.
One way to change this is twinning with international universities, but for this there has to be a less xenophobic and transparent government machinery that is open to new methods.
“Accreditations, partnerships and exchanges with institutions around the world will open up opportunities for students,” says Aryal. “The government should welcome foreign universities, they will force us to raise the standard of our education.”
Information technology and <a href="https://nepalitimes.com/here-now/grass-is-greener-overseas-for-nepals-doctors">medicine</a> are among the most lucrative options for Nepali students abroad. Institutions of higher learning in Nepal itself could specialise in inter-disciplinary liberal arts, social studies, agriculture and the environment, public health, hospitality, or heritage studies.&nbsp;
Youth are also leaving because there is no guarantee of jobs even when they get a higher degree here. <a href="https://nepalitimes.com/editorial/brain-drain-into-brain-gain">The informal sector</a> is still the biggest employer, and job options in private companies and civil service are limited.&nbsp;
Ganesh Gurung says the education sector must adapt to the changing labour market such that Nepal produces skilled human resources in the areas with high demand like <a href="https://nepalitimes.com/here-now/nursing-grievances-against-the-state">nursing</a>.
He adds, “The focus must be on our strengths. The economy can be revived by making the best use of Nepal’s natural beauty to generate jobs in the hospitality industry, and turn it into a <a href="https://nepalitimes.com/news/go-away">destination for international retirees</a>.”&nbsp;

Sonia Awale

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Brain gain into brain drain

During an event at <a href="https://www.google.com/maps/search/10+Downing+Street?entry=gmail&amp;source=g" target="_blank">10 Downing Street</a> this week to celebrate 100 years of <a href="https://nepalitimes.com/editorial/1923-2023-whsle7yp">Nepal-Britain relations</a>, Prime Minister Rishi Sunak committed to helping Nepal on the matter of the climate crisis. Sunak also pledged to enhance trade, investment and economic relations with Nepal. British envoy to Nepal William O’Connor and Prime Minister Chandra Shamsher signed the <a href="https://nepalitimes.com/news/nepal-britain-mark-centenary-of-1923-treaty">Nepal-Britain Treaty of Friendship on 21 December 1923</a> which formally recognised Nepal as a sovereign country. <a href="https://nepalitimes.com/here-now/the-queen-is-dead-long-live-the-king">Queen Elizabeth II</a>, <a href="https://archive.nepalitimes.com/regular-columns/So-far-so-good/sons-of-the-famous,945">King Charles</a> and <a href="https://archive.nepalitimes.com/article/nation/Gurkhas-dying-for-others,2938">Prince Harry</a> have all visited Nepal multiple times but no British prime minister has ever come to Nepal.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240521110544_a8d35fe97e4a42196220b703d7788d14d7fc92ce2a014221ba4ed72185ab067c.jpg" data-media-id="editor_6" data-image-id="20240521110544_a8d35fe97e4a42196220b703d7788d14d7fc92ce2a014221ba4ed72185ab067c" data-rendition-name="original" width="1024" height="683" loading="lazy" alt="Rishi Sunak commits to help Nepal NT"> <figcaption>British Prime Minister Rishi Sunak commits to helping Nepal with the climate crisis and economy.(Photo: Simon Walker / No 10 Downing Str)Crown copyright. Licensed under the Open Government Licence</figcaption> </figure>  But predating all of this is the recruitment of the Gurkhas in the British Army with a history of over 200 years, and Sunak also acknowledged the role of <a href="https://nepalitimes.com/opinion/the-time-has-come-for-a-gurkha-peace-corps">Nepali soldiers</a> in further strengthening bilateral relations between the two countries, as well as present day Nepali diaspora excelling in various fields in the UK. British Minister of State for Foreign Affairs Ann Marie Trevelyan who was in Nepal in December last year to mark <a href="https://nepalitimes.com/here-now/looking-back-at-the-1923-nepal-britain-treaty">the centenary</a> was also present at the ceremony. She said that Britain will continue to support and expand Nepal's development and economic efforts to help Nepal achieve middle income status. Nepali Ambassador to Britain Gyan Chandra Acharya said that the Treaty of Friendship was important to establish Nepal's presence in the international arena and in promoting international relations. He also expressed gratitude for the cooperation of the British government in the development of Nepal. Members of the Nepali diaspora in the UK, <a href="https://nepalitimes.com/here-now/gurkha-grandparents">ex-Gurkhas</a>, British parliamentarians and high-ranking officials were present at the program organised in collaboration with the Nepal Embassy in London and the Foreign and Commonwealth office.

Sunak pledges more support for Nepal

The third Himal Media Mela 2024 continued on Friday following the keynote speech from Mohamed Nasheed, climate activist, writer/journalist, and former president of the Maldives.&nbsp;
The day-long symposium included four workshops and two panel discussions ranging from possibilities of AI usage in newsrooms to threats faced by investigative journalists in environmental reporting, to climate finance.&nbsp;
In the first session of the day, Naresh Newar gave a workshop on AI in the Newsroom with a presentation about how media practitioners can responsibly use Large Language Models (LLM) and Generative AI to ease their workload.&nbsp;
“One main way AI can lighten the burden of journalists is by using it on small repetitive tasks that could lead to burnout,” said Newar, adding that newsrooms can use AI in such tasks as proofreading, transcription, review, and research.&nbsp;
“However, one must not claim AI-generated content as their own,” cautioned Newar. &nbsp;
The workshop also delved into the rapid advancement of AI technology, as well as its limitations. There was also discussion surrounding the ethics of AI use, and the need for newsrooms to be careful in identifying AI-generated content that might be posed as human-generated media.&nbsp;
Meanwhile, during the workshop on Data Mining to Tell Compelling Stories, data journalists Mohan Mainali and Arun Karki shed light on formulating stories from available data sources, and the importance of interactive data in storytelling.
“A single set of data can generate multiple stories and analyses,” said Arun Karki. “The key is to know how and where to look.”
Sharing his experiences while reporting for a three-part series published in Nepali Times analysing meteorological, hydrological and demographic data from eastern Nepal, Mohan Mainali emphasised on the importance of data visualisation.
“Like the expression, ‘show, don’t tell’ goes—it is the journalist’s responsibility to visualise and present data in the most easily apprehensible way for audiences,” said Mainali. “And although numbers by themselves do not have much to say, visualising those numbers reveals trends.”
The speakers also encouraged journalists to make the most out of open-source and freely available data while reporting on environmental issues, adding that climate-related data are more accessible than most. &nbsp;
“When media is under a financial crisis, data journalism lets journalists form a story without actually having to go to the field,” added Mainali.
Later in the day, water expert Ajaya Dixit during the workshop Media for Early Warning of Disasters discussed how Nepal can move to a disaster-resilient future. He highlighted that Nepal’s policies recognise that it is prone to multi-hazards, and must be prepared for them.
“The media must proactively communicate relevant messages before, during and after disasters, but attributing all environmental issues to climate change is not enough,” he said.
“Furthermore, no disaster is natural,” added Dixit, giving an example of how poorly built houses kill people, not earthquakes themselves. “Media coverage must stop referring to disasters as natural.
“We need to recognise the events within our borders—such as the soot from wildfires that are expediting the melting of the mountains— that contribute to the climate crisis,” remarked Rama Parajuli of the BBC.
Dixit also pointed to the need for collaboration between media practitioners, researchers, and development partners, and that knowledge and information need to be cross-validated.”
“Disaster, hazard, vulnerability, and risk are used interchangeably in Nepal. These terms need to be contextualised, disaggregated, and used appropriately,” he further added. “Reporting has to be based in science.”
The workshop Investigating Climate Finance led by economist Rashtraraj Bhandari of the Asian Development Bank was a crash course into climate finance, as well as jargon journalists must understand while reporting on climate finance.
The economist during his presentation emphasised the need for nations to generate their climate funds.&nbsp;
“Foreign grants and funding are never going to be enough to combat climate crises, and expecting external funding for them is more costly in the long-term— both economically and &nbsp;socially,” said Bhandari, “We as a country must identify what ‘green’ means for us, not what is dictated by grant-giving countries or projects.”
Bhandari also urged the journalists that storytelling should look beyond numbers. “Real stories are the ones that visualise the impact of crises,” he added.
The Media Mela continued into the second half of the day with two panel discussions.&nbsp;
In the session Threats against Environmental Journalists, &nbsp;moderator Bidhya Rai, as well as panellists Ramesh Bhushal and Ramu Sapkota narrated personal experiences in the field while discussing the dangers that Nepali reporters who investigate environmental exploitation and crimes face.&nbsp;
“Our rich natural resources are being exploited by those in power, and is part of our economic activity,” noted moderator Bidhya Rai said during the session’s introductory remarks.&nbsp;
Ramesh Bhushal, Nepal editor of The Third Pole, remarked that environmental journalism had long been attributed to travel and luxury, and simply writing about nature.
“Environmental reporting is political reporting—it involves reporting on corruption, and those exploiting resources for their self-interest,” said &nbsp;“It is thus people-based reporting,” added Bhushal.
Bhushal added that environmental journalists have been under threat from the moment that environmental reporting began in the 70s, soon after the exploitation of natural resources became part of the mainstream discourse globally.
There are not just threats to journalists’ physical safety. The increasing fragility of the environment also means that reporters face the risk of experiencing disasters like landslides and floods while in the field.&nbsp;
“While there is information that can be accessed remotely, one cannot report about the environment entirely from the desk, it has to be done from the field,” said independent journalist Ramu Sapkota.
Journalists also face possibilities of legal repercussions, from local-level leaders to powerful political cronies. And it is not just journalists who risk their safety. The panellists also spoke about how sources become hesitant to communicate with reporters when their lives and safety are threatened.&nbsp;
“The climate of fear in the community is increasing,” said Bhushan.
“Independent journalists and local reporters are under more risk than reporters who have support from and are in communication with their newsrooms,” added Sapkota. &nbsp;
The panellists further discussed how maintaining constant communication with newsrooms, as well as friends, and family can mitigate risks to media practitioners who investigate environmental exploitation.
Also present in the session were Laxmi and Sangam Mahato, the sisters of Dilip Mahato, an activist who was murdered by contractors extracting sand from the Aurahi River in Dhanusha. Dilip had been protesting illegal sand mining in the river and organising the local community to conserve the Chure Hills.&nbsp;
His sisters have continued their brother’s fight to save their river and village from illegal sand mining even as they continue to get threatened by their brother’s killers.&nbsp;
The panelists also spoke about what they called a ‘grey area’ between environmental journalism and environmental activism.
“While we should not be engaging in activism, we should provide information that enables activism,” said Bhushal.
Sapkota agreed. “We need to provide space to and encourage those who want to take up activism.”
Meanwhile, public interest litigator Sanjay Adhikari during the panel Economics of Ecology also touched upon the need for environmental activism. “Environmental activism is not a want for us, it’s a need,” said the lawyer.
Adhikari also spoke about what he called “absurdities” in the plans for the Nijgadh airport, including the scale of the trees cut down to make way for the project, and claims that animals would “retreat into the forest from the runways when planes landed.”&nbsp;
Environmentalist Bhushan Tuladhar, who was also part of the panel, also offered critique of Nepal’s environmental policies while championing electric public transport as a public good— reminding the audience that over half of the households, even in the Kathmandu Valley, do not own private vehicles.&nbsp;
Tuladhar also noted how environmental issues disproportionately affect some communities and groups over others. “Indoor pollution is a major part of air pollution in Nepal that directly affects women and children,” he said.
Tuladhar highlighted the economic and health costs of environmental issues such as pollution, reminding that air pollution costs the world 6% of its GDP —$8.1 trillion— every year, on healthcare costs.&nbsp;
Tuladhar asked: “What would we be willing to pay for an extra 1.2 years of life, which would be possible if the air pollution decreased by only 30%?”

The political economy of environment

Since returning from this year’s World Economic Forum meeting in Davos, I have been asked repeatedly for my biggest takeaways. Among the most widely discussed issues this year was artificial intelligence – especially generative AI (‘GenAI’). With the recent adoption of large language models (ChatGPT) there is much hope – and hype – about what AI could do for productivity and economic growth in the future.
But our world is dominated far more by human stupidity than by artificial intelligence. The proliferation of <a href="https://www.project-syndicate.org/onpoint/megathreats-remain-despite-moderation-of-pandemic-and-other-shocks-by-nouriel-roubini-2023-11">megathreats</a> – each an element in the broader ‘polycrisis’ – confirms that our politics are too dysfunctional, and our policies too misguided, to address even the most serious and obvious risks to our future.
These include climate change, failed states which will make waves of climate refugees even larger, and recurrent virulent pandemics that could be even more economically damaging than Covid-19.&nbsp;
Making matters worse, dangerous geopolitical rivalries are evolving into new cold wars such as between the United States and China, and into potentially explosive hot wars, like those in Ukraine and the West Asia.&nbsp;
Around the world, rising income and wealth inequality, partly driven by hyper-globalisation and labor-saving technologies, have triggered a backlash against liberal democracy, creating opportunities for populist, autocratic, and violent political movements.
Unsustainable levels of private and public debt threaten to precipitate debt and financial crises, and we may yet see a return of inflation and stagflationary negative aggregate supply shocks. The broader trend globally is toward protectionism, de-globalization, de-coupling, and de-dollarisation.
Moreover, the same brave new AI technologies that could contribute to growth and human welfare also have great destructive potential. They are already being used to push disinformation, deepfakes, and election manipulation into hyperdrive, as well as raising fears about permanent technological unemployment and even starker inequality. The rise of autonomous weapons and AI-augmented cyber-warfare is equally ominous.
Blinded by the dazzle of AI, Davos attendees did not focus on most of these megathreats. This came as no surprise. The WEF zeitgeist is, in my experience, a counter-indicator of where the world is really heading. Policymakers and business leaders are there to flog their books and spew platitudes. They represent the conventional wisdom, which is often based on a rear-window view of global and macroeconomic developments.
There is a very good chance that AI will indeed change the world in the coming decades. But the WEF’s focus on GenAI already seems misplaced, considering that the AI technologies and industries of the future will go far beyond these models. Consider, for example, the ongoing revolution in robotics and automation, which will soon lead to the development of robots with human-like features that can learn and multitask the way we do.
Or consider what AI will do for biotech, medicine, and ultimately human health and lifespans. No less intriguing are the developments in quantum computing, which will eventually merge with AI to produce advanced cryptography and cybersecurity applications.
The same long-term perspective also should be applied to climate debates. It is becoming increasingly likely that the problem will not be resolved with renewable energy – which is growing too slowly to make significant difference – or expensive technologies like carbon capture and sequestration and green hydrogen. Instead, we may see a fusion energy revolution, provided that a commercial reactor can be built in the next 15 years.&nbsp;
This abundant source of cheap, clean energy, combined with inexpensive desalination and agro-tech, would allow us to feed the ten billion people who will be living on the planet by the end of this century.
Similarly, the revolution in financial services will not be centered arounddecentralisedblockchains or cryptocurrencies. Rather, it will feature the kind of AI-enabled centralisedfintech that is already improving payment systems, lending and credit allocation, insurance underwriting, and asset management.&nbsp;
Materials science will lead to a revolution in new components, 3D-printing manufacturing, nanotechnologies, and synthetic biology. Space exploration and exploitation will help us save the planet and find ways to create extra-planetary modes of living.
These and many other technologies could change the world for the better, but only if we can manage their negative side effects, and only if they are used to resolve all the megathreats we face. One hopes that artificial intelligence someday will overcome human stupidity. But it will never get the chance if we destroy ourselves first.
©Project Syndicate
Nouriel Roubini, Professor Emeritus of Economics at New York University’s Stern School of Business, is author of <a href="https://www.littlebrown.com/titles/nouriel-roubini/megathreats/9780316284059/">Megathreats: Ten Dangerous Trends That Imperil Our Future, and How to Survive Them</a> (Little, Brown and Company, &nbsp;2022). <a href="https://nourielroubini.com/">NourielRoubini.com</a>

Artificial Intelligence vs Human Stupidity

For Nepalis, the year 2023 was marked by one scandal after another at home, while Nepalis found themselves in the middle of <a href="https://nepalitimes.com/news/nepalis-in-the-russian-army-want-to-quit">active conflict zones</a> across the world both unintentionally and of their own volition.&nbsp;
The year began with Pushpa Kamal Dahal being Prime Minister for the third time with a promise of better governance. Even the opposition UML gave him a vote of confidence. The new <a href="https://nepalitimes.com/banner/for-whom-the-bell-tolls">RSP party’s Rabi Lamichhane</a> was in and out of the Cabinet, and finally decided to stay in the opposition.
Dahal's preoccupation during 2023 was to hold his fragile coalition together, despite having the Nepali Congress (NC) as an ideologically opposite partner. His government was rocked by a <a href="https://nepalitimes.com/news/the-year-of-scandals">slew of corruption scandals </a>that led to the arrests of several senior officials across party lines, but the big fish eventually got away.&nbsp;
Nearly 800 Nepalis were promised entry into the US as fake Bhutanese refugees by government officials and traffickers. Property surrounding the Prime Minister’s residence was parcelled off to private buyers by the real estate mafia. Gold smuggling continues unabated at Kathmandu airport, and <a href="https://nepalitimes.com/here-now/crime-and-or-punishment-in-nepal">none of the kingpins ever get caught</a>.&nbsp;
Malaysian conglomerate <a href="https://nepalitimes.com/news/axiata-may-find-breaking-up-hard-to-do">Axiata exited Nepal</a> after selling its majority stake in Ncell to a Singapore-based Nepali-origin businessman, which experts say would not have been possible without the involvement of top bureaucrats, regulators and politicians.
Despite the finance minister assuring us that the economy is “on the mend”, it <a href="https://nepalitimes.com/editorial/nepals-golden-age">stagnated some more</a> in 2023. Revenue collection was lower than projected, exports are at a record low, and 90,000 workers and students left Nepal in December alone. The government has been slow to promote electric transport even as petroleum import continues to soar.&nbsp;
In March, Dahal’s coalition government introduced the transitional justice amendment bill in the House. But <a href="https://nepalitimes.com/news/nepal-tj-bill-protects-perpetrators-shortchanges-survivors">conflict survivors, victims and human rights groups said it ignored their concerns</a>, the Supreme Court’s directive and flouted international law on war crimes.&nbsp;
The earthquake in western Nepal on 3 November left 153 dead and two months later survivors are living in tents in <a href="https://nepalitimes.com/news/below-zero-at-ground-zero">sub-zero temperatures</a>. The disaster also exposed Nepal’s demographic shift: most fatalities were women from the poorest families since the men have migrated out.&nbsp;
Migration, as Nepali Times has highlighted in <a href="https://nepalitimes.com/editorial/50-diaspora-diaries-in-nepali-times">50 instalments of its Diaspora Diaries</a>, is now the central reality of Nepal. A majority of families have members who have left to work, study, or settle abroad, and Nepal’s economy is propped up by the money they send home. The search for jobs has also led Nepalis to some of the world’s most dangerous regions.&nbsp;
There are said to be at least 700 Nepalis in the Russian Army, families have not heard from many of them, and <a href="https://nepalitimes.com/news/from-frying-pan-into-fire-for-nepalis-in-russian-army">7 have been killed on the Ukraine front</a>. Nepali human traffickers have been supplying mercenaries to Russia by flying them to Moscow on tourist visas. Four Nepalis have been captured by the Ukrainian military. &nbsp;
The Hamas attack on 7 October killed 10 Nepalis who had gone to Israel under the government’s Learn and Earn program, while <a href="https://nepalitimes.com/news/hamas-releases-thais-but-where-is-bipin">Nepali student Bipin Joshi</a>, who was taken hostage, is believed to remain in captivity. Israel’s ongoing brutal bombardment of Gaza has led to the deaths of nearly 21,000 Palestinians, with the US helping Israel to block a UN ceasefire. &nbsp;
<a href="https://nepalitimes.com/opinion/borderlines/burmese-of-nepali-descent-flee-to-thailand">Burmese of Nepali descent</a> have taken refuge in Thailand because of suppression by the military junta which staged a coup in Burma in 2021. Nepalis trafficked by a Chinese organised crime syndicate to work in call centres in Burma also need to be rescued. &nbsp;
UN Secretary-General António Guterres visited Nepal ahead of COP28 in Dubai to draw attention to the climate crisis and the Himalaya, but the summit <a href="https://nepalitimes.com/editorial/unabated-greenwashing-at-cop28">failed to commit </a>to an immediate phase-out of fossil fuels. Nepal’s pledges at COP28 do not correspond to its lack of progress in switching to renewable energy, saving remaining forests and controlling air pollution.&nbsp;

Shristi Karki

More of the same in 2024?

The so-called experts referred to in the article <a href="https://nepalitimes.com/news/business-as-unusual">Business As Unusual</a> in the 22 September issue of Nepali Times by Ramesh Kumar, do not seem to have used their ‘expertise’ in making their observations. Their comments are thus simplistic and mutually contradictory.&nbsp;
If they were using a set of commonly accepted indicators and related verifiable data, their opinion could not be mutually so disparate. I know of no economist in Nepal worth the name who have defined the characteristics specific to Nepal economy and have come up with a theoretically defensible set of prescriptions for investment and economic development in the country.&nbsp;
Many of them masquerade as economists based on having acquired a degree, maybe, a PhD sometime in the past. Others after spending some time in the finance ministry as part of the musical chair of inter-ministry transfers in the bureaucracy.
Like most ‘observers’ in Nepal, these economists too dare to make profound-sounding observations based on what immediately meets their eyes.&nbsp;
For instance, this year they seem to be impressed by the size of the crowd visiting the NADA auto show in Kathmandu to claim that despite the nationwide clamour to the contrary, the economy is not really in a slump.&nbsp;
They are the mob economists who gauge the state of the economy by the size of the shoppers at New Road or Asan Tole.
Nepal's tragedy is that all governments headed by corrupt politicians have spent all their time and energy in defrauding the state and gullible citizens. Examples: massive scams like the <a href="https://nepalitimes.com/editorial/losing-our-moral-compass">Fake Bhutanese Refugee</a> (KPO and SBD governments), <a href="https://nepalitimes.com/here-now/crime-and-or-punishment-in-nepal">Lalita Niwas</a> (MKN and BRB governments) and recent <a href="https://nepalitimes.com/editorial/nepal-gets-gold-medal-for-corruption">gold smuggling</a> (PKD government).
Meanwhile the so-called ‘Planning Commission’ and other think tanks recycle what is already in writing. There is no accountability for their total lack of delivery from their writings.&nbsp;
Even at the cost of modesty, I must state that during my tenure in the government as a karmachari, I have had the distinction of innovating three major policy reforms: the institution of user groups, the <a href="https://nepalitimes.com/from-the-nepali-press/taking-away-forests-from-communities">forest user groups</a> and the mothers' groups and their Female Community Health Volunteers.
Together, these policies changed the face of our nation. &nbsp;As the saying goes, if you don't know where you are going, any road will take you there. That seems to be the fate of our planners, policy makers, self-styled economists and of course, corrupt politicians.
As things stand, as per recent agricultural survey, 62% of households remain in agriculture. A decade earlier in 2011, it was 71% whereas the sector's contribution to national GDP was only 34.3%.&nbsp;
The fact that only 12% farm households have had access to agriculture credit, &nbsp;a prime mover for development, and only 7% to agricultural grants, remains the most lethal of neglect to a sector on which so many people still depend.&nbsp;
This clearly suggests massive deprivation of a vast majority of the country's population through unemployment and underemployment, lack of sufficient land and their vastly unequal distribution.&nbsp;
While 4 million Nepalis plus a vast but unknown number <a href="https://nepalitimes.com/here-now/love-thy-neighbours">working in India</a> have migrated for income and employment, a 2018 survey showed that 900,000 people were actively looking for employment, and nearly 70% of them were in the age bracket between 15-34 years.&nbsp;
While Nepal's industrial sector remains miniscule, the irony is that sunflower, palm and soyabean oils remain the major export items. <a href="https://nepalitimes.com/news/nepal-doesnt-produce-its-2-biggest-export-items">Since none of those oilseeds are produced in Nepal</a>, it only shows that our investment regime remains totally divorced from even the rudimentary rule of economic development — the principle of comparative advantage. &nbsp;
The size of the crowd visiting the NADA auto show, is more the manifestation of the artificial nature of our industrial sector and remains the handiwork of <a href="https://nepalitimes.com/editorial/inconvenient-truths">corrupt and incompetent politicians, bureaucrats and an unscrupulous business community</a> working in cahoots to profit from loopholes.&nbsp;
Indian economist Jayati Ghosh who teaches at MIT, wrote about the impact of inequality in her own country in 2022, ‘The pandemic brought home to us a hard truth. Unequal access to incomes and opportunities does more than create unjust, unhealthy and unhappy societies—it kills people.’&nbsp;
Then, Nobel laureate economists, Abhijit Banerjee and Esthe Duflo wrote in 2020: ‘Although no one knows when the growth locomotive will start in a given country, if and when it does, the poor will be more likely to hop on the train if they are in decent health, can read and write, and can think beyond their immediate circumstances.’
Which kleptocrat politician, bureaucrat, unprincipled economist, or hardcore politician disguised as civil society leader has thought of our problems in these terms?
Bihari Krishna Shrestha is an anthropologist and a former government secretary.
<a href="mailto:biharishrestha@gmail.com" target="_blank">biharishrestha@gmail.com</a>

If you don’t know where you are going, any road will take you there

A Himal Khabar article last week set off a heated debate. Titled ‘Was Nepal better before?’, it showed that despite all the problems of the past four decades, the country had made remarkable socio-economic progress. But in Nepal’s polarised polity, monarchists argued that the country's present ills can be traced to the failure of multi-party democracy since 1990. Mainstream politicians, on the other hand, seemed relieved that things are not as bad as they look.&nbsp; Rabindra Mishra of the RPP tweeted: ‘Improvement at the speed of a turtle is only development for a society that is used to the velocity of a turtle. Development should be viewed holistically. Not just on the basis of some indicators.' Read also: <a href="https://www.nepalitimes.com/news/till-debt-do-us-part">Till debt do us part</a>, Ramesh Kumar  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230630050624_2f88f8c36f0078a413e217577098ee7a4f3f528002b62857275f11aca3c5533a.png" data-media-id="editor_1" data-image-id="20230630050624_2f88f8c36f0078a413e217577098ee7a4f3f528002b62857275f11aca3c5533a" data-rendition-name="original" width="3000" height="1000" loading="lazy" alt="Now and Then NT"> <figcaption>A bus stop in Bhaktapur in June 2023 (left) and the same stop with a trolley bus in 1976 (right). Photos: GOPEN RAI (left), DANIEL W EDWARDS (right)</figcaption> </figure>  Mishra's party is for restoring the monarchy to ensure national unity, stability and development. Former king Gyanendra himself recently said that the country had made great progress during the 30 year Panchayat System, and Nepal could restore its past glory.&nbsp; But there were many others who argued that the partyless Panchayat was feudal and held the country back. Former Maoist ideologue Baburam Bhattarai posted: ‘Was Nepal better back then? Of course not, and it is better now. But it can be better still, and must be made better. Let us be future-oriented, not past-oriented.’&nbsp; A critical look at the past 50 years of development in Nepal tells a mixed story. In 1991, one in every two Nepalis was living below the poverty line. It is down to 15.1%.&nbsp; The Multidimensional Poverty Index (MDPI) based on health, education and quality of life also shows dramatic improvements. MDPI decreased significantly from 59% in 2006 to 17.4% in 2019.&nbsp; Read also: <a href="https://www.nepalitimes.com/here-now/nepal-s-tax-system-widens-rich-poor-gap">Nepal’s tax system widens rich-poor gap</a>, Ramesh Kumar  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230630050628_47d9357bd364d0ca8c41c5261c9ef1d07a75782f25d75f3c975dcfd4b2edf185.png" data-media-id="editor_3" data-image-id="20230630050628_47d9357bd364d0ca8c41c5261c9ef1d07a75782f25d75f3c975dcfd4b2edf185" data-rendition-name="original" width="905" height="868" loading="lazy" alt="Now and then poverty NT"> </figure>  The Panchayat System was scrapped in 1990 after the People’s Movement, and the country replaced its absolute monarchy with a constitutional one. The Maoist conflict lasted from 1996-2006, and Nepal’s 240-year-old monarchy was abolished by the elected Constituent Assembly in 2008.&nbsp; Plotting Nepal’s development indicators on a timeline shows dramatic progress, but correlation does not mean causation. Average life-expectancy could have gone up even if Nepal had retained a constitutional monarchy. And Kathmandu’s rampant urbanisation and air pollution would probably be as bad if we still had a king. Per capita GDP was stagnant during the Panchayat, but started climbing in 1990, and by the time Nepal became a republic in 2008 it went up steeply. &nbsp;Since this was mainly driven by remittances, it would most likely have continued on that trajectory whatever system Nepal adopted after 1990. Per capita income is not an indicator of socio-economic equity, but it is a general measure of the average wealth of citizens. Nepal’s per capita income was $50 in 1960, when the world average was $459. Neighbouring India was at $83 and China was slightly higher at $89. In 1990, Nepal’s per capita climbed to $185, and it has now reached $1,399. What is noteworthy here is that the rate of income growth was very slow in the years before democracy during the Panchayat with an increase of just $94 (at constant 2015 rates) between 1960-90. “The argument that Nepal was better in the past is untrue,” says former Rastra Bank economist Keshav Acharya. “Nepal is behind many other countries for sure, but we have also seen progress in infrastructure, health, education, human development, communication, perhaps just not in public administration.” But, he adds: “The administration did not exploit people back in the Panchayat days, corruption was not as rampant. The opposite is true now with bureaucracy and political leaders apathetic to the people’s needs, widespread laxity and wrongdoing.”&nbsp; Indeed, even though family incomes in Nepal were lower in the second half of the past century, their needs were much less and most people lived in rural areas and were self-sufficient in food. However, Nepal’s progress in infrastructure was slow during the Panchayat. Although Nepal was the second country in Asia to install a hydroelectric plant in 1911 during the Rana regime, by the end of the Panchayat in 1990, Nepal was only generating 227MW.&nbsp; Read also: <a href="https://www.nepalitimes.com/news/nepal-india-power-play">Nepal-India power play</a>, Ramesh Kumar  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230630050632_f101e04317e960dd5872e82a954a8668dc92d9a94345e1652adf8c860948d21b.png" data-media-id="editor_5" data-image-id="20230630050632_f101e04317e960dd5872e82a954a8668dc92d9a94345e1652adf8c860948d21b" data-rendition-name="original" width="1052" height="723" loading="lazy" alt="Now and then electricity NT"> </figure>  It actually took the Electricity Act of 1992 and the advent of domestic and foreign investment in hydropower for generation to take off. Installed capacity has now increased to 2,700MW, and another 3,000MW worth of projects are under construction. Access to drinking water and sanitation has similarly improved. Only 6% of Nepali had access to drinking water in 1960 which increased to 36% in the next three decades. But it has now reached 95%, even though only a quarter of them have access to quality drinking water.&nbsp; The defining factors in measuring progress of any country is average life-expectancy, maternal and child health. In some ways, Nepal achieved dramatic gains in reducing maternal, child and infant mortality rates while significantly improving its immunisation, even though the progress has stalled in the last decade or so.&nbsp; The infant mortality rate is down to 21 per 1,000 births today from nearly 200 in 1960. Maternal mortality is also down from 239 per 100,000 deliveries, down from 850 as recently as 1990. Read also: <a href="https://www.nepalitimes.com/here-now/the-geopolitics-of-nepal-s-water-and-electricity">The geopolitics of Nepal’s water and electricity</a>, Ramesh Kumar  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230630050632_4caae25156a2b7a77aad3752f1390e69ea3966a70f243c96d396adf97807e87c.png" data-media-id="editor_7" data-image-id="20230630050632_4caae25156a2b7a77aad3752f1390e69ea3966a70f243c96d396adf97807e87c" data-rendition-name="original" width="939" height="713" loading="lazy" alt="Now and then drinking water NT"> </figure>  This represents one of the steepest declines in maternal-child mortality of most countries in the world, and is a direct result of improvement in female literacy, better road access for institutional delivery and the work of Female Community Health Workers.&nbsp; In 1971, only 14 out of 100 people in Nepal were literate. In 1990 this was up to 40% and now it is 76%. In 1990, the primary school enrolment rate was 76%, now it is at 97%. But the quality of instruction and the disparity between public and private schools is more prominent than ever before. Back in 1990, there was only one hospital bed for every 9,146 Nepalis. Today, the ratio has improved to 1,821 – even though access and affordability of quality care are still issues. In fact, out-of-pocket medical bills are pushing even middle class Nepalis into poverty. Nepal’s Human Development Index (HDI) last year was 0.602, up from 0.399 in 1990. HDI takes into account several developmental factors including life expectancy, literacy, per capita and quality of life. Increasing the representation of women, Dalits and other communities in socio-political leadership granted by the 2015 Constitution is another sign of socio-economic development in Nepal. Women make up 33% of the MPs and most of the deputy mayors across the country are female, even though many were proportionally elected or represent the quota system. Much needs to be done to achieve inclusion that reflects the true diversity of the country. One could argue that much of this progress would have happened regardless of which governing system was in place. Some consider the current progress to be a natural result of changes in the global economy and politics, technological advancement and contemporary changes. Economic and political analyst Dipak Gyawali thinks that the reason for the improvement in areas such as education, health and poverty is not the change in the system, but the remittances sent by Nepalis abroad.&nbsp; Read also: <a href="https://www.nepalitimes.com/here-now/state-sponsored-economic-crisis-ikcxxmnp">State-sponsored economic crisis</a>, Ramesh Kumar  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230630050632_f12b0216cb12dd4d99e7abb007ae61cc1b88862c67644a49ebb017eb5e34c415.png" data-media-id="editor_9" data-image-id="20230630050632_f12b0216cb12dd4d99e7abb007ae61cc1b88862c67644a49ebb017eb5e34c415" data-rendition-name="original" width="940" height="865" loading="lazy" alt="Now and then Life expectancy NT"> </figure>  “There has been improvement in various sectors due to remittances, which have reached a quarter of the GDP, but political parties have created a false narrative that the improvement is due to the multiparty system,” says Gyawali, who served as Water Resource Minister in 2005. Even so, the contribution of an open society and an open market brought about by democracy cannot be ignored. Foreign employment itself became accessible following the restoration of democracy. During the Panchayat period, passports were difficult for ordinary citizens to get. &nbsp; “During the Panchayat period, those who studied abroad used to return to the country. Now the youth have no faith and hope for the country, it seems that only the youth who cannot go abroad live in Nepal,” says Gyawali. Economist Acharya blames it on self-centeredness of Nepal’s political leadership, saying that the feckless lack of accountability have led the public to believe that there has been no improvement whatsoever in the country, thus giving rise to populist politicians. He adds: “It is not that nothing is happening, but it appears to the public as if the future is hopeless because leaders are not accountable to the people." Statistics confirm that Nepal has made progress, but the pace of economic development has been much slower than in the neighbourhood. Nepal’s per capita income in 1960 was $50 while in then-East Pakistan it was US$85. Today, Bangladesh’s per capita income has reached $2,458. India is at $2,257. And China has outperformed all others from a mere $89 in 1960 to $12,556 today. Read also: <a href="https://www.nepalitimes.com/editorial/institutionalised-inequality">Institutionalised inequality</a>, Editorial

Now and then

In the past few weeks as Nepal faces trying times with falling growth and high inflation, Kathmandu has witnessed numerous seminars, conferences and workshops with the discourse revolving around the economy and investments.&nbsp;
The consensus that Nepal needs foreign direct investments (FDI) to grow was once again repeated, and the familiar litany of reasons about why it has not been able to. Policy advocates and regulators have understood that the lack of urgency is compounded by procedural inconsistencies and added to the already deficient investment environment in the country.
It is a welcome change from what used to be flippantly accepting things as given that there is now a sense of urgency, with procedural inconsistencies and lack of harmonisation between various Acts and regulations openly discussed.&nbsp;
Furthermore, the desire from government stakeholders to learn and attempt to be part of the solution is also beginning to happen. &nbsp;Whatever policy changes have been introduced in the past have been piecemeal and address the few rather than the entire industry, thus leaving dual regulatory approaches aimed at similar players. &nbsp;
To attract FDI in a competitive global market means Nepal has to demonstrate that it is serious about bringing in investments with a more consultative and collaborative approach with investors. &nbsp;A departure from procedural to a result-oriented focus is needed.&nbsp;
Read also: <a href="https://www.nepalitimes.com/editorial/invest-in-investment">Invest in investment</a>
To put issues in perspective, Nepal needs US$20 billion in investments to meet SDG (the UN’s Sustainable Development Goals) targets by 2030. If net-zero decarbonisation targets are to be met by 2045 another US$7 billion will be required annually.&nbsp;
Looking at our investment history and poor government capital expenditure, the gap is long and wide. &nbsp;Last week’s budget showed that in the nine months of this fiscal year, Nepal was able to book a lamentable US$9 million in FDI (equity) investments, a decrease of 98% from the corresponding period last year.&nbsp;
Nepal is in fact the lowest market in South Asia for FDI with 0.3% of the regional average. &nbsp;What is it that we can do to fill the gap?&nbsp;
First: we need to move away from the notion that Nepal only needs large investments. This has proven to be a mistake, and time series data have proven that smaller investments, in aggregate, make a larger impact to economies.&nbsp;
We talk about an ‘enabling environment’ but without the right tools. &nbsp;We place restrictions on interest on debt ceiling (Libor +5.5), without risk premium adjustments, we do not have an active secondary market for bond trading, nor do we have a yield curve, an integral part of the bond market. &nbsp;
Read also: <a href="http://archive.nepalitimes.com/regular-columns/Comment/making-nepal-fdi-friendly,853">Making Nepal FDI friendly</a>, Shyamal K Shrestha
In order to attract green financing, Nepal needs to develop its bond market. Billions of dollars of green climate funds are waiting to be tapped. Sovereign risk rating has been mooted, but to be rated in an adverse economic environment could further deteriorate investment potential due to a lesser than expected rating. &nbsp;
Hedging is another instrument that needs further research on. A commercial bank recently showcased the first risk hedging mechanism for an investment of $8 million. &nbsp;This can be the beginning to expand on its modality. &nbsp;&nbsp;
Subordinated debt instruments have been introduced, but on a special nod basis, this now needs to be institutionalised as it is the most applicable form of investments after equity in a market that has volatile forex reserves.&nbsp;
Viability Gap Funding has yet to be implemented and has been in active discussions for a few years now. &nbsp;This needs to come into effect to encourage solar installations in the country.
Moving forward, to attract FDI, Nepal needs to tap into the funds that are available for the growth of small and medium enterprises (SMEs) and climate change. &nbsp;Alternative investments such as Private Equity Venture Capital (PEVC) have been around in a structured manner in Nepal for nearly a decade now. These funds have blended finance components and have attracted climate funding as well. &nbsp;
Read also: <a href="https://www.nepalitimes.com/from-the-nepali-press/why-there-is-no-foreign-investment-in-nepal">Why there is no foreign investment in Nepal</a>
PEVC is a new asset class and can address the issues of penetrating into SME financing by incorporating environment, social and governance issues into their investment process. &nbsp;SMEs are the backbone of any economy, PEVC comes with the ability not only to scale up the enterprise with risk capital, but with the ability to bring technical know — how to enhance not only the enterprise, but also the entrepreneur. &nbsp;A differentiator from all other forms of financing available till date in Nepal.&nbsp;
Blended finance is a way of de-risking investments especially in frontier markets. <a href="https://bo2.com.np/" target="_blank">Business Oxygen (BO2)</a> is an example of blended finance with subordinated debt investments of IFC (World Bank Group) taking the lead and Climate Investment Funds along with FCDO as co-investors. &nbsp;
On a larger scale, the 216MW Upper Trisuli1 is another example of blended finance with IFC, a Korean consortium and local investments. &nbsp;So far, we see that development finance Institutions have been taking the lead in Nepal as their risk appetite is greater than commercial investors and they are eager to help develop the financial markets. &nbsp;
In order to be sustainable, we need to step on this and attract commercial capital from all over the world. To do this there has to be political will to make that pivot.&nbsp;
The recent budget has tried to address some issues in a cosmetic manner, and once again it lacks the overall approach to the problem. &nbsp;Nepal has outdone many countries in its macro-economic indicators, with sound forex reserves and a stellar history of debt payments to its creditors. This story needs to be propagated along with the drive for change to attract potential investors.&nbsp;
Read also: <a href="https://www.nepalitimes.com/opinion/guest-column/so-you-d-like-to-do-business-in-nepal">So you’d like to do business in Nepal?</a>, Ritu Pradhan Malla

Siddhant Raj Pandey

Alternative investments to attract FDI

First the good news: Nepal Rastra Bank (NRB) says Nepal’s foreign exchange reserves have increased from $9.54 billion in June 2022 to $10.5 billion in February 2023.&nbsp;
This is enough to pay for 9 months and 12 days of imports.&nbsp;
This is a result of a spike in remittances and a ban on the import of luxury items after<a href="https://www.nepalitimes.com/news/nepal-s-remittances-forex-reserves-drop"> reserves fell</a> last year.
The NRB’s Current Macroeconomic and Financial Situation Report of Nepal last week noted that imports went down by almost 20% during the first seven months of the current fiscal year. Remittance inflow is still <a href="https://www.nepalitimes.com/latest/more-remittance-more-than-remittance">Nepal’s economic lifeline </a>and it increased by 16.4% in the past seven months compared to the same period last year as foreign employment permits increased by 57%.
Nepal’s balance of payments has also reached a surplus of Rs132 billion, compared to a loss of about Rs274 billion last year, which could show that the economy is on the mend.&nbsp;
But this is the only silver lining as dark clouds gather on the global economy as bank collapses in US spread to Europe, and within Nepal there is a looming threat of mass defaults and depositors cheated by micro-finance lenders and cooperatives.
Read also:<a href="https://www.nepalitimes.com/editorial/new-year-challenge-to-new-government/"> New year challenge to new government</a>, Editorial
The bad news is that government revenue has plummeted, going down by almost 15% till February as compared to the previous fiscal year. Paradoxically, political uncertainty has meant that the government has been unable to spend much of its allocated development budget. &nbsp;
Revenue has gone down to Rs622 billion and the government incurred a shortfall of Rs150 billion in expenditure this fiscal year. This is in sharp contrast to a consistent increase in government revenue over the past decades.&nbsp;
High interest rates have discouraged investment, <a href="https://www.nepalitimes.com/here-now/kathmandu-s-unreal-real-estate-prices">real estate</a> transactions are half of last year, and the stock market is in a slump. Decreased imports have had a knock-on effect on economic activity.
“The demand for goods and services has decreased because of high interest rates, bringing businesses to a standstill,” says Shekhar Golchha of the Federation of Nepal Chambers of Commerce and Industry (FNCCI). Borrowings have declined, and borrowers unable to pay back loans has gone up. Bank loans to the private sector have only increased by 3.2% this year as compared to a 12.3% increase last fiscal year.
Golchha says a government stimulus package is required to save businesses from recession.&nbsp;
“We need policies to reduce interest rates and facilitate credit,” says Golchha.
Read also:<a href="https://www.nepalitimes.com/editorial/nepals-political-economy/"> Nepal’s political economy</a>, Editorial
Preoccupied with <a href="https://www.nepalitimes.com/news/post-presidential-politics">coalition politics</a>, the government is distracted. And the central bank says fears of a recession are exaggerated.&nbsp;
“Our economy was in a precarious position due to the depletion of foreign reserves last year,” explains Gunakar Bhatta of NRB. “But economic activity is increasing and the economy is on the mend.”
Bhatta argues that monetary expansion and credit extension will only lead to an increase in imports, which will send Nepal’s economy back to square one.&nbsp;
Economist Sujeev Shakya also dispels fears of a crisis. He says the private sector is blaming the government for their own business mismanagement.&nbsp;
”Some businesses are facing problems, but to say that the economy has gone into recession is to spread panic,” Shakya notes.
Former Finance Secretary Rameshore Khanal agrees, saying &nbsp;businessmen may be in trouble because of bad investment decisions in real estate and shares, and subsequently failing to sell those assets.
He cautions: “The NRB should not risk being generous with lending just to get businessmen out of trouble. Doing so will increase our imports as well as inflation.” &nbsp;
Read also: <a href="https://www.nepalitimes.com/banner/now-the-economy-stupid">Now the economy, stupid</a>, Editorial

First, the good news

In the wake of the Covid-19 pandemic, there is renewed attention around the world on 'unpaid care’ work and ‘care economy’. Still, a care economy is not considered a ‘productive’ sector and care work is seen as a ‘non-economic’ activity mainly performed by women. Unpaid care work is therefore excluded from mainstream development, undermining the value of unpaid care services provided within the households. The pandemic underscored the critical importance of care work – paid and unpaid. Care work did not and cannot stop even when everything came to a standstill, the value of skills involved in care work such as empathy, creativity, patience, and resilience are valuable, but usually taken for granted. The World Economic Forum in fact highlights these skills as some of the most important competencies for future business success in an increasingly automated and digitised world. Uncertainty in the labour market and the global economic recession has brought unprecedented uncertainty for women in countries like Nepal, with its gender gap in education, digital skills, and strong sociocultural biases. The pandemic heightened care needs for elderly persons, and health care services required for preventive and curative services, and it made women more vulnerable to violence at home.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230306030352_fc6367bc8ab27a546419035be1211740478eb54a3e9cd27c6cc23b3e62de872c.jpg" data-media-id="editor_0" data-image-id="20230306030352_fc6367bc8ab27a546419035be1211740478eb54a3e9cd27c6cc23b3e62de872c" data-rendition-name="original" width="1280" height="720" loading="lazy" alt="Care economy figure 1"></figure>  The household sphere consists of subsistence productive activities in which goods and services are produced mainly for household consumption, and reproductive activities for the next generation. Most of these activities are invariably performed by women and are unpaid. Essentially, the ‘formal market economy’ cannot function without the foundation work provided by the ‘care economy’ with its social, emotional and physical investment within households. Outside market activities in Nepal consist primarily of migration as a source of income for households. The modern industrial and commercial sector uses reproducible capital and services for profit. Migration provides a safety valve or an outlet for alternate sources of income that people embark upon at times of hardship, or for betterment depending on the pull and push factors. We can estimate the size of the care sector in Nepal’s economy by calculating how much time people allocate for unpaid work within the household. Time use data shows that women participate to a high degree in the subsistence and household care sector spending on average 35.6 hours and 52.1 hours per week respectively. Their contribution in subsistence work is 50.4% and household care is 72% compared to men. Women, on an average spend at least 7.5 hours per day on unpaid care work at home which is 2.5 times higher than men. In addition, Nepali women are increasingly entering the labour market for wages/incomes. Women’s participation has jumped to 45.5 hours and 38.5 hrs. per week in formal and informal sectors respectively, contributing 47.3% and 42.2% share of the work respectively — almost at par with men.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230306030352_b333a26d2ecb990a074203ee64df2c0bb6d31070ef2f51e0c35369b69928f304.jpg" data-media-id="editor_1" data-image-id="20230306030352_b333a26d2ecb990a074203ee64df2c0bb6d31070ef2f51e0c35369b69928f304" data-rendition-name="original" width="1280" height="720" loading="lazy" alt="Care economy table"></figure>  All activities undertaken in the market sphere within the formal and informal sectors, are considered ‘productive' modern industrial sectors that would lead to economic growth with profit and setting in competition in the market and contribute to the country’s GNP. The formal sector constitutes 17% of the total economy that represents market transactions providing a very narrow view of the visible economy, which is the formal market sector. In the informal economy goods and services are marketed, but are not formally registered and go undocumented and unaccounted by official statistics. It makes up 24% of Nepal’s economy and can include professions as diverse as drivers, rickshaw pullers, street vendors, petty businesses, micro and small enterprises, home-based workers. Beyond the informal is the household sector, constituting family farms providing subsistence, and care services providers. Family farm subsistence sector makes up 27 %, and the care sector makes up 32% of Nepal’s economy. Reproductive work is typically excluded from economic analysis considered not important for planning, resource allocation or growth. There is a tendency to view it as a ‘natural’ aspect of women’s roles and as not ‘work’ because it is unpaid. It is important to count the proportion of the population concentration in each of the sectors to see who is counted and excluded in the economy. Labour force data shows that only 16% of Nepal’s population is engaged in the market sphere (6% in formal and 10% in informal), and 84% of Nepalis engage themselves in the family farm and household care spheres. Among these population groups only a small number of women interact in the market sector undertaking formal or informal activities – they constitute less than half of their male counterparts (33% versus 67%). Women are concentrated at the bottom of the economy in the informal and unpaid care sector, but nevertheless provide basic production of goods and services essential for upkeep of families and the economy.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230306030352_087ab2e8035c6aa5e05899699572d8f839a5d4a2013240369f72dc03e291d625.jpg" data-media-id="editor_2" data-image-id="20230306030352_087ab2e8035c6aa5e05899699572d8f839a5d4a2013240369f72dc03e291d625" data-rendition-name="original" width="1280" height="720" loading="lazy" alt="Care economy Pie chart "></figure>  Using wage rates and number of hours worked by women and men are used to estimate formal and informal sectors by gender disaggregation shows that production of goods and services and unpaid care activities of women amount to Rs1.4 trillion and Rs1.3 billion respectively — making up 61% and 80% of women’s contribution respectively to those sectors (see table). The total value of unpaid care and domestic work is estimated to be between 6 % and 17 % of GDP, contributing more to Nepal’s economy than manufacturing. Analysis of three generations of national labour force surveys show potential volume of the care sector in the Nepalese economy which is quite alarming that it has the capacity to support 84% of the population in sustaining their livelihoods. The share of unpaid care work could equal 17% of Nepal’s GDP, which in 2017/8 amounts to Rs515 billion. This is nearly equal to the agricultural sector (21%) and above the industry (13%) in the gross product ranking. There is an opportunity to remove the care economy from a mere familial, social sector and transform it into a formal productive industry with these proposed measures: <ul><li>Formalise the care economy to become a paid sector where the economy can create jobs from currently unpaid activities. Most women in Nepal cannot access the labour market as they are expected to spend their time as homemakers taking care of the children and elderly. Formalisation of the care economy will mean reparation of the labour done by women, which will help in the movement to eliminate gender bias, sharing of care responsibilities and closing gender gap.</li><li>Formalisation of the care economy will require the state to assume the cost of taking care and nursing the most vulnerable people - those who cannot pay the market rates.</li><li>Treat households as family farm enterprises by bringing them under the state planning process and allocation of resources enabling them to fill emerging demand for green economy jobs and green growth.</li><li>Address structural factors built into the macroeconomic framework that systematically excludes women, marginalised groups of population and sectors that constitute the majority and larger part of the society from the development process.</li></ul> Bina Pradhan is a feminist economist with Federation of Business and Professional Women, Nepal. This article is based on larger research on Gender and Macroeconomics in Nepal, 2010/11 as a New Century Scholar.

Nepal's care economy

Nepal’s only international aviation gateway, at Kathmandu airport, will cut night-time operation hours to allow construction of taxiways, and airlines have been told to curtail flights. This is expected to lead to more than normal chaos during the height of peak autumn and spring tourist seasons at an airport that is congested even at the best of times. The airport will close from 10PM to 8AM from 8 November-31 March 2025. The taxiways will now connect to the thresholds at both ends of the runway, making the airport more efficient in handling higher frequencies of landings and takeoffs. The parallel taxiway extension will allow international flights to land every 4 minutes instead of the current every 7 minutes. At present planes have to wait to land until a plane taking off backtracks along the runway.&nbsp; Kathmandu is Nepal’s only airport with international operations, and it has only one runway that is only one way in from the south over the mountains. With the taxiway improvement, the airport will be able to handle 42 aircraft landings and takeoffs per hour — double the current capacity.&nbsp; The Civil Aviation Authority of Nepal (CAAN) has been trying to entice international airlines to also start flying to and from the other two international airports at Pokhara and Bhairawa (Lumbini) by slashing landing and handling charges. But so far only Nepal Airlines operates a weekly flight to Bhairawa from Kuala Lumpur.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241018161016_046569e53d1d66cd445cc66c697c0ef724810aec9f54bdf827481e3cd6b80c32.jpg" data-media-id="editor_0" data-image-id="20241018161016_046569e53d1d66cd445cc66c697c0ef724810aec9f54bdf827481e3cd6b80c32" data-rendition-name="original" width="2356" height="1134" loading="lazy" alt="Kathmandu airport expansion"> <figcaption>Kathmandu Airport Expansion plan with extension of taxiways to the thresholds of runways 02 and 20 that will limit airport operations from 8 November 2024 - 31 March 2025. Areas in blue are existing structures, including the international terminal which in future will be the domestic airport, and the new international terminal near the north end of the runway,</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241018121028_6e17cc2ee87c1b02d78cb54905825b7aa15299b7a00f5eddb01a59579ab85c1a.jpg" data-media-id="editor_1" data-image-id="20241018121028_6e17cc2ee87c1b02d78cb54905825b7aa15299b7a00f5eddb01a59579ab85c1a" data-rendition-name="original" width="1353" height="1328" loading="lazy" alt="Kathmandu airport NT"> </figure>  CAAN has reportedly told international airlines to cut their flight frequency to Kathmandu citing the shorter operation hours and has told budget airlines to shift some of their flights to Pokhara or Bhairawa, or face cuts. Many airlines currently operate regular flights to and from Kathmandu between 10PM and 8AM: Air Arabia to Sharjah, Fly Dubai to Dubai, Jazeera Airways to Kuwait, Cathay Pacific to Hong Kong, Singapore Airlines, several Nepal Airlines flights, and one of four daily flights by Qatar Airways to Doha. Jazeera Airways, FlyDubai, and Thai AirAsia have applied and got permission from CAAN to begin regular flights to Bhairawa’s Gautam Buddha International Airport. Starting 9 November, FlyDubai will start making a stopover in Bhairawa before flying on to Kathmandu. Immigration, customs and security are all fully functional in Bhairawa. In Kathmandu, the next phase of the airport upgrade includes converting the current international terminal for domestic operations, the construction of a new international terminal where the domestic departure area is now, as well as moving the hangars and the Nepal Army Air Wing to the eastern side of the runway. The apron area will also double its parking space for widebody jets. This is part of a Airport Capacity Enhancement Project that was initially funded through a $80 million loan from the Asian Development Bank (ADB), and the entire masterplan is expected to cost $800 million. This project is the latest upgrade to Nepal’s only international airport since it saw its first flight in 1949. The current international and domestic terminals are too small to handle the current annual traffic volume of 8.5 million passengers a year that is growing at 20% a year.

Kathmandu airport to cut flight hours

As Kathmandu becomes more congested and polluted, and with remote online work becoming the norm, many professional Nepalis are planning to retire in Pokhara, or move there.&nbsp; With its stunning mountain panorama, balmy winters and proximity to a profusion of wilderness areas, builders are responding to this demand with new townhouses, housing development and apartments. One such block of flats is the 10-storey <a href="https://sungavaapartment.com/">Sungava Apartment</a> located at Phulbari above the Seti River, near the point where it flows into and under Pokhara. The imposing structure near Manipal Hospital is almost complete, and on a recent visit the site was strewn with huge boulders unearthed while digging the foundation.&nbsp; The Seti brought down these boulders during a gigantic flood that geologists estimate happened 800 years ago when a chunk of Annapurna IV broke off and ploughed into the glacier below. Today, Sungava (means ‘orchid’) sits safely on a high terrace, 100m above the blue-green Seti and commands a view of Dhaulagiri, Annapurna South, Machapuchre, Annapurna III and IV.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024102411104_5f8fc736c86ea3c08d7bef43bb727081d3cc1a2caa55ae2b441717e6044de7e9.jpg" data-media-id="editor_1" data-image-id="2024102411104_5f8fc736c86ea3c08d7bef43bb727081d3cc1a2caa55ae2b441717e6044de7e9" data-rendition-name="original" width="2016" height="1512" loading="lazy" alt="High living below the Himalaya NT"> </figure>  The soil here is conglomerate that has solidified like concrete, and the boulders were extracted by heavy earthmovers. It is intriguing to think that these metamorphic rocks as big as cars, rounded by glacial grinding, were once a part of a much higher Annapurna IV. Even for those with little interest in geology, Sungava is an ideal place to contemplate the tectonic forces that pushed these peaks into the sky to be sculpted into delicate shapes by wind, snow, earthquake and avalanche over millions of years. The view of the Himalayan panorama from Sungava’s many balconies are breathtaking when not obscured by clouds, or the haze that drifts in from across the southern border. On most days, just watching the towering pyramid of Machapuchre (Tamu name: कतासुँ क्लिको) play hide and seek with the clouds is mesmerising. There are rocks aplenty at Phulbari, and it is probably the flowers that grew along the flat terraces e that gave the place its flowery name. The boulders will hopefully be turned into a rock garden while landscaping. An nearby restaurant complex is making the best use of the stones in its design, using flat rocks as outdoor benches and tables. Sungava was designed by the husband-wife architect team of Deepak Sherchan and Jyoti Joshi of <a href="https://thedarkmermaidamarbshrestha.blogspot.com/2013/12/creative-builders-collaborative-cbc.html">Creative Builders Collaborative (CBC)</a>, which also built Heritage Plaza, Indreni Apartment and numerous other projects in Nepal. Sadbhavana retains CBC’s trademark Newari-style masonry and here it borrows from the orange brickwork of the old town of Pokhara, integrating it with modern design elements. A few of those heritage houses are still standing in Ganesh Tole and Ram Krishna Tole in Pokhara’s old quarter.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024102411108_5eb64a4885961b6d30781cefeb1e8a313da313ac5227c7a66b60f0c7d48d6fab.jpg" data-media-id="editor_3" data-image-id="2024102411108_5eb64a4885961b6d30781cefeb1e8a313da313ac5227c7a66b60f0c7d48d6fab" data-rendition-name="original" width="1362" height="595" loading="lazy" alt="High living below the Himalaya NT"> </figure>  About 400m from the apartment past a bend on the river, and down below three tiers of terraces in the canyon is a suspension bridge. Below it, the Seti is still swollen with post-monsoon flow as it tumbles away in a hurry to head down south.&nbsp; Back at the apartment, it is quiet, far away from the hubbub of Lakeside a 15 minute drive away, and in the lap of greenery. There are 52 units at Sungava and it already has a close-knit prospective community of professionals, including doctors, publishers, engineers, and businesspeople from the renewable energy and IT sectors.&nbsp; Some residents say they opted for a second home in Pokhara to make it a ‘base camp’ to explore the Annapurnas with its many hiking trails made newly accessible with new roads. With the NRN citizenship law, overseas Nepalis can now also buy the flats. &nbsp; The floor plans include options for north and south-facing 3-bedroom apartments with verandas, and the facility has underground parking has EV charging, heated pool, sauna and gym. There are still some unsold apartments with panoramic views of the mountains and one can imagine oneself at the kitchen with its huge window, humming a ditty while preparing breakfast: “खाना पकाउँ हिमाल हेरेर...”

High living below the Himalaya

When the United Nations held its Summit of the Future at its headquarters in New York in September, many world leaders, including Nepal’s Prime Minister K P Oli, highlighted the effect of climate breakdown in increasing the frequency and intensity of natural disasters. What did not get as much attention was the long term impact of the climate crisis on food production. In fact, heat stress, weather extremes and the consequences on rain-fed agriculture is already being felt worldwide, undermining the chances of the <a href="https://unstats.un.org/sdgs/">UN’s Sustainable Development Goals (SDGs)</a> being met by 2030.&nbsp; The SDG’s 17 targets commit countries like Nepal to reduce poverty and inequality, end malnutrition, protect the natural environment, and ensure that citizens all enjoy health, justice and prosperity without leaving anyone behind.&nbsp; However, besides the impact of climate breakdown on agricultural production, in Nepal the area under cultivation is impacted by urban expansion, falling productivity and the need for expensive inputs like fertiliser and pesticides.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_626413c5baf4dae407ac9579231b41daeb51510aa636b75aeb7489d94cca6a62.jpg" data-media-id="editor_1" data-image-id="20241019041052_626413c5baf4dae407ac9579231b41daeb51510aa636b75aeb7489d94cca6a62" data-rendition-name="original" width="999" height="1500" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>Kathmandu's urban sprawl is eating into its fertile cultivable lands. Photo: TAYLOR MASON</figcaption> </figure>  Now, a new study led by Nepali researcher Prajal Pradhan at the University of Groningen in The Netherlands looks at how urban agriculture may offer a solution to falling food production and meeting SDG targets. The researchers evaluated 1,450 publications exploring the contributions of urban agriculture with both positive and negative effects, and published their findings in the journal Cells Report Sustainability. Urban agriculture can help achieve 17 SDGs, positively influencing 81 targets. However, it could also undermine 51 goals.&nbsp; Read also: <a href="https://nepalitimes.com/here-now/the-vanishing-land">The vanishing land</a>, Taylor Mason “Urban agriculture offers immense potential for sustainable development, but realising this potential depends crucially on adopting practices that minimise its adverse effects while maximising its benefits,” Pradhan explains. Urban agriculture can substantially enhance urban food security, provide employment to the urban poor, serve as ground water recharge in built-up areas, and preserve open spaces that can serve as safe havens during disasters like earthquakes. However, it also presents problems like the potential health risks from contamination and the need for expensive inputs. &nbsp; “Urban agriculture plays a definitive role in advancing the SDGs, but achieving this requires tailored, context-specific solutions that address the unique challenges of different regions,” says Yuanchao Hu of Wuhan University in China and who is a researcher at the Potsdam Institute for Climate Impact Research. “But it needs equitable access and rigorous management of environmental risks.”&nbsp; Rapid urbanisation is eating into Nepal’s most fertile agricultural land, which means farming in remaining open spaces inside cities can be a viable alternative, especially as food prices rise.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_7b7c9413086226fbdc630d45acf772cfa1ced77a8970b9056ec5ec7e5226fdf8.jpg" data-media-id="editor_3" data-image-id="20241019041052_7b7c9413086226fbdc630d45acf772cfa1ced77a8970b9056ec5ec7e5226fdf8" data-rendition-name="original" width="1500" height="999" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>A vegetable patch in between new houses in Thimi. Photo: TAYLOR MASON</figcaption> </figure>  “The conversion of Nepal’s most fertile land into cities is a severe problem,” Pradhan told Nepali Times. “Crop cultivation, horticulture, agroforestry, beekeeping, livestock rearing, or aquaculture can all be farming activities within and around cities.”&nbsp; The study makes recommendations for sustainable practices that build on the positive aspects of urban agriculture while mitigating the downsides, thereby promoting more resilient cities in future. Research shows that urban agriculture has been helping many countries attain SDG targets by enhancing food security and biodiversity while helping education and preservation of open spaces.&nbsp; Indeed, many farmers from the hinterland who have settled in Kathmandu Valley or other urban areas of the country have been practicing urban agriculture, leasing neighbourhood patches or cultivating roof gardens both out of necessity because of inflation and falling income to grow their own food, and also as a fulfilling hobby. Saurav Dhakal, a sustainability advocate with Story Cycle and now research fellow at the Asian Institute of Technology in Thailand, says there are socio-economic and environmental benefits of urban agriculture. “It provides benefits to all urban dwellers, regardless of their income status,” says Dhakal, “families get fresh food, and there are many other benefits like water retention, heat regulation and biodiversity. These are all public goods, so special government incentives may be needed.” It is not unusual to see vegetable patches and even paddy fields within inner city Kathmandu where an older generation of farmers are using available fertile land and <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/rooftop-gardens-kathmandu,1415">roof gardens to produce fresh, nutritious food </a>to reduce their dependence on food items that have to be bought after being trucked in from large distances.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024101905100_1291ce98dbbb8caed8702ac4b1d469b3e13016d7ecaaf3bfd5f91c974d3c0c77.jpg" data-media-id="editor_5" data-image-id="2024101905100_1291ce98dbbb8caed8702ac4b1d469b3e13016d7ecaaf3bfd5f91c974d3c0c77" data-rendition-name="original" width="1500" height="999" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>An older generation of farmers are using any available fertile land to continue farming but it is getting more and more difficult. Photo: TAYLOR MASON </figcaption> </figure>  Nepal’s urban population grew rapidly from only 3.6% in 1991 to 25% today. There is large outmigration from the mountains to peri-urban areas of the Tarai, to Kathmandu Valley and Pokhara, with many young men then moving abroad for work. Kathmandu Valley’s population has swelled to nearly 3 million, and is growing at 6.5% a year. Dilip Shrestha, 71, used to work for Nepal Food Corporation, so he knew firsthand about inflation, shortages and vegetables with pesticide residue. So, when he designed his new house in Kathmandu, he built a spacious roof where he grows cucumber, ginger, garlic, coriander, onions, tomatoes, chili, beans, okra, pumpkin and lettuce. His family eats healthier, and he has reduced dependence on the market.&nbsp; The co-author of the Cell Reports Sustainability journal article, Daya Raj Subedi who is a PhD candidate at Beijing Forestry University, says urban agriculture also promotes inclusion and psycho-social wellbeing.&nbsp; He says, “A crucial finding of the study is the identification of opportunities and challenges associated with urban agriculture, it can promote sustainable transformation of society.” In Banepa, 55-year-old Bijaya Manandhar in her lifetime has watched the fertile farms of her neighbourhood that used to supply vegetables to Kathmandu, now completely built up with no open space left. The pandemic lockdown prompted her to turn to the family’s <a href="https://nepalitimes.com/banner/rooftop-agriculture-on-the-roof-of-the-world">ancestral livelihood by growing food</a> not on terrace farms, but on the roof terrace. Manandhar is now a part of <a href="https://nepalitimes.com/banner/rooftop-agriculture-on-the-roof-of-the-world%5C%5C">कौसी खेती र करेसाबारी क्रान्ती</a> (Rooftop Farming and Garden Revolution) which has an online membership of 52,000, and awards annual prizes to women who excel in urban agriculture.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_7257f5def8f823f35a799fa6f6825e153f2ffa406ac11325d4fe74049b79e96d.jpg" data-media-id="editor_8" data-image-id="20241019041052_7257f5def8f823f35a799fa6f6825e153f2ffa406ac11325d4fe74049b79e96d" data-rendition-name="original" width="1600" height="736" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>Rooftop farming is gaining popularity as a form of urban agriculture. </figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_beff1a4494ce896dd8fd383ee1f518e5448bcf7ea8bb138255391c7bcb9769ed.jpg" data-media-id="editor_9" data-image-id="20241019041052_beff1a4494ce896dd8fd383ee1f518e5448bcf7ea8bb138255391c7bcb9769ed" data-rendition-name="original" width="4000" height="3000" loading="lazy" alt="urban agriculture in Kathmandu"> </figure>  Pradhan says the challenge now is to upscale such examples of successful urban agricultural practices so they support Neal’s efforts to meet SDG targets. He adds, “Crop cultivation around cities can be protected by land use plans and regulations. Promoting community-based agriculture, including rooftop gardens, requires community engagement and public-private partnerships across the food value chain.”&nbsp; Such support would accelerate the popularity of existing rooftop farming and community gardens in Kathmandu Valley, or kitchen garden initiatives in Pokhara, and building on traditional farming practices that are preserved and integrated into urban settings like in Bhaktapur and Banepa. In Lalitpur, the Women Entrepreneurship Facilitation Center promotes urban farming enhancing both sustainability and empowerment.&nbsp; Another co-author of the report, Yuanchao Hu from China says followup research of the team will aim to identify good practices in local urban agriculture practices. He adds, “There are examples of urban agriculture that optimise sustainability, ensuring that it remains a viable solution for cities globally while countries try to meet SDG targets.” Prajal Pradhan, Daya Raj Subedi, Kshitij Dahal, Yuanchao Hu, Prakriti Gurung, Sijal Pokharel, Sagar Kafle, Biplav Khatri, Sudeeksha Basyal, Monika Gurung, and Aruna Joshi. Urban Agriculture matters for sustainable development. Cell Reports Sustainability, 1:100217, 2024. [DOI: 10.1016/j.crsus.2024.100217] Prajal Pradhan (<a href="mailto:p.pradhan@rug.nl">p.pradhan@rug.nl</a>) This article is brought to you by <a href="https://nepalitimes.com/" target="_blank">Nepali Times</a>, in collaboration with <a href="https://inpsjapan.com/en/" target="_blank">INPS Japan</a> and <a href="https://sgi-peace.org/" target="_blank">Soka Gakkai International</a>, in consultative status with UN ECOSOC.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_14" data-image-id="20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="SDG logo"> </figure>

Back to the land in the cities

The 700-year-old Lakshmi Narasingha temple in Bhaktapur houses a rare half-lion and half-human incarnation of Lord Vishnu carrying the Goddess Lakshmi. The temple was destroyed in the 1934 mega earthquake that killed 10,000 people and destroyed many monuments in Kathmandu Valley. It was rebuilt by a German project in the 1980s, but as a single-storey structure instead of its original two-tier pagoda design.&nbsp; With new findings from in-depth research, Bhaktapur municipality began re-restoring the temple in 2021, preserving its original architecture.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_2fae38cce543ad7b1f6de632feb3e212e08ed1acedd747830e949d7b8e878f18.jpg" data-media-id="editor_0" data-image-id="20241017131016_2fae38cce543ad7b1f6de632feb3e212e08ed1acedd747830e949d7b8e878f18" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="In with the old in Nepal NT"> </figure>  “Our temples and heritage sites hold deep meaning. It is disheartening to witness how often they lose their original elements, whether by design or accident,” explains Kumar Chawal of the Consumer Committee of Bhaktapur. “There is a need to preserve our architecture and protect its historical value for future generations. Otherwise, we risk losing a vital part of our identity.” The Laksmi Narsingha restoration is similar to the Bhai Dega temple in Patan Darbar Square which also collapsed in 1934, but was rebuilt with a Moghul-style dome by the Rana government at the time. Only two months before the 2015 earthquake, heritage conservationists had started to rebuild Bhai Dega as the original three-tier based on early photographs. But priorities shifted when four other temples in the square were brought down by the 7.8M earthquake on 25 April 2015.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_697ea707d9ad163be5de5f2efbf5b70d3cab771adcc22f0fae6bf937c6cb0130.jpg" data-media-id="editor_1" data-image-id="20241017131016_697ea707d9ad163be5de5f2efbf5b70d3cab771adcc22f0fae6bf937c6cb0130" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="In with the old in Nepal NT"> </figure>  This showed how damage to monuments in Kathmandu Valley spanned from one earthquake to the next. Bhai Dega restoration remains half-complete to this day because money for its restoration ran out.&nbsp; Whereas Bhai Dega restoration was done by the Kathmandu Valley Preservation Trust with grants from western embassies and international foundations, in Bhaktapur it is the municipality itself that allocated the Rs30.7 million needed to restore the Lakshmi Narasingha temple. The expected date of completion is early 2025. The municipality and local communities are focusing on two main aspects: preserving the past and promoting localisation. The restoration team has designed a blueprint for the temple by using historical photographs and insights from older generations.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_182882fdc393c99e70d1d0490319e415229563666c4934e3a582426ebf00ca30.jpg" data-media-id="editor_2" data-image-id="20241017131016_182882fdc393c99e70d1d0490319e415229563666c4934e3a582426ebf00ca30" data-rendition-name="original" width="1200" height="560" loading="lazy" alt="In with the old in Nepal NT"> </figure>  “At first, the Lakshmi Narasingha temple had only one entrance, but during the demolition process, we uncovered the foundations of four doors. Now, we are restoring all of them. This is an example of how our ancient structures have changed over time, often without our knowledge,” says Chawal. “Constructing temples is not like building houses. They carry historical and spiritual values, which is why they hold a special place in our hearts,” he adds. By replicating ancient design elements and rebuilding the temple as accurately as possible to its original form, the team has stayed true to Bhaktapur’s soul. But the restoration also revived ancient techniques that were in danger of being forgotten, generating employment for woodcarvers, masons, and contractors. The community of Bhaktapur’s Gahiti neighbourhood near the famous Nyatapola Temple has also set aside specific days for locals to volunteer in the reconstruction work. This has encouraged young people to take pride in ownership of their heritage. Families have also supported the effort by donating funds for bells, the temple pinnacle, and other structural features to the temple.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_db850ec0c084cdbe54f65bee92dad2ad8122d20fd60ec87ec086fbb9d2f72bd6.jpg" data-media-id="editor_3" data-image-id="20241017131016_db850ec0c084cdbe54f65bee92dad2ad8122d20fd60ec87ec086fbb9d2f72bd6" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="In with the old in Nepal NT"> </figure>  “I feel at peace knowing I have contributed my sweat to restoring this temple,” said one volunteer. “It is our duty to preserve our temples and heritage. The Nyatapola area will look magical once this temple is completed.” Community mobilisation is a long-standing tradition in Bhaktapur. In the past, locals have actively participated in the restoration of other temples in the city, such as Bhairav and Nyatapola fostering a strong sense of ownership. This collective engagement has not only been crucial in preserving the city's historical monuments but also in strengthening the bond between local communities and their heritage, says officials at the municipality. While securing funding is essential, and the municipality showed it values heritage conservation, the Lakshmi Narasingha restoration is proof that active involvement and sense of responsibility of the local community is as important, if not more. Local involvement also means that the monuments will be cared for into the future, When locals take ownership of these efforts, the restored monuments are not only protected in the present but are also cared for in the future.