During the governing UML rally at Darbar Marg last month, Prime Minister K P Oli listed a host of economic woes that had rendered the country “inoperable”. His main concern was rising national debt. He said the country could not afford to take on any more loans. “The treasury is empty while our debt is sky high, revenue and manufacturing are down and smuggling is rampant,” Oli told the rally that created massive traffic jams during rush hour on Friday. “We collected 24% less revenue last year than the one before it.” But just two weeks later, the prime minister was in Beijing to sign a BRI Framework Cooperation Agreement. His coalition partner Nepali Congress (NC) had insisted that the deal should not have loan components. The Chinese did not agree, and the BRI agreement for 10 projects under an ‘aid assistance financing' (read: loans) was signed. Nepal’s public debt to GDP ratio stands at 44%. And even though the figure for China is 83% and Japan 250%, those countries have robust exports and vast reserves. A more telling statistic is that Nepal’s debt has increased 5-fold to Rs2.5 trillion in the last decade. “Indiscriminate borrowing has made us skittish about seeking more loans to finance development,” says economist Keshav Acharya. “But we are not in a position to reject loans for infrastructure.” Nepal’s national debt servicing now exceeds its capital expenditure for development. This year’s budget allocated Rs352 billion for capital expenditure, while Rs367 billion was for loan repayment. Loan repayment will increase, which means less money for development. Nepal had to raise 29% of its annual budget from borrowing because of continuing decline in revenue. Just this year, institutions including the World Bank and the ADB extended long-term low-interest loans worth Rs548 billion in budgetary support. The government has also been propping up the treasury with internal loans because it is at a deficit of Rs86 billion. Another Rs84 billion in internal loans have piled up since July. “We cannot afford to borrow uncontrollably like this, and instead take loans to invest in projects that increase economic output, create jobs, and provide returns,” adds Acharya.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241213041232_8e54cea368c357f4583322ae92649981ac8c4b50fe49b6822a6008cb39936cef.jpg" data-media-id="editor_0" data-image-id="20241213041232_8e54cea368c357f4583322ae92649981ac8c4b50fe49b6822a6008cb39936cef" data-rendition-name="original" width="1285" height="780" loading="lazy" alt="National debt graph NT"></figure>  Falling revenue collection has been exacerbated by a sluggish economy. Ironically, a decreasing import bill also means less revenue from taxes. Last fiscal year, revenue collection fell to Rs1.03 trillion from a target of Rs1.422 trillion. So far this fiscal year, only a quarter of the target has been collected. Corruption, tax evasion and capital flight also take their toll. Two monitoring teams were formed to look into tax evasion in October. The government also reduced the customs duty on gold and silver to reduce smuggling and increase revenue from legal imports. “Around 40% of imports were through informal channels even when we were able to reach our target revenue through customs,” says former Secretary Kewal Bhandari. “Smuggling has obviously become more rampant now.” Meanwhile, demand for consumer goods and real estate transactions remain sluggish, further impacting revenue. Construction and manufacturing are in a recession. The construction sector recorded negative 11.2% slump during the third quarter of the last fiscal year. Wholesale and retail trade decreased by 2.7%. The prime minister must have been briefed on these figures, which is why he sounded the alarm at his rally last month that was supposed to be a political show of strength. His government has no option but to carry out major structural reforms in laws, the tax system, and clean up the administration to ensure financial stability and push growth. The Economic Reform Commission under Finance Secretary Rameshore Khanal is supposed to offer fix-its. But this is not the first time such a Commission has been formed. Earlier recommendations were never implemented. Last year’s High-Level Tax Reform Advisory Committee led by former Finance Secretary Bidyadhar Mallik projected a revenue increase of up to Rs3 trillion annually through tax reforms. Nepal Rastra Bank Governor Maha Prasad Adhikari is proposing a campaign to build 10,000 low-cost housing units in Kathmandu under public-private partnership to kickstart the construction sector. Economist Keshav Acharya believes Nepal’s economy can be steered in a better direction with existing resources through state restructuring and prudent use of government expenditure. He warns, “We will find ourselves in an even bigger soup if we do not carry out a major shake-up to increase revenue, slash expenditure and reduce further loans.”

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Near-debt experience

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

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

One smoggy winter morning in February 2019, Ekta regretted coming to her sculpture class. It was the first day of her period, and the 19-year-old wished she was home, curled up in bed with a hot water bag to soothe her cramps.
Her class was at Kalapremi Ceramic Studio, a dark room on the ground floor of a house in Maharajganj, and Ekta’s teacher was the artist Gopal Das Shrestha ‘Kalapremi’, a noted sculptor.
Two other students were already there, using all their muscle strength to knead the sculpting clay. Ekta, now 24, recalls how Kalapremi asked her if she was feeling all right. She avoided him, as she did not want everyone to know she was menstruating.
Kalapremi repeatedly asked Ekta what was wrong. She finally muttered that she was having her period, after which he grabbed her hand and led her to a partitioned corner of the studio and sat her on a chair. Before she could stop him, he slid his hand under her dress, and started massaging her abdomen.
“I was horrified,” Ekta recalls. “I told him to stop, but he didn’t listen, asking me not to be shy, saying he knew how to relieve my pain. He stopped only after I protested furiously.”&nbsp;
The art tutor then said, “You’re like my daughter. I’m doing it out of love to make you feel better, but you’re so stubborn.”&nbsp;
“Instead of saying sorry he acted like I was the one having crazy thoughts,” remembers Ekta, adding that from April 2016 to August 2020 beginning the time she was 16, the artist sexually abused and harassed her on several occasions. &nbsp;
Now, Ekta and the artist’s other former students are finally sharing their experiences and some are pressing legal charges against him, hoping that others do not have to endure what they did.&nbsp;
Award-winning artist and teacher Gopal Das Shrestha ‘Kalapremi’ (the name means ‘Art Lover’) is known for his ceramic art, sculpture, and contemporary pottery. He was <a href="https://nepalitimes.com/review/the-house-of-kalapremi">profiled in Nepali Times after a collaborative exhibition</a>, ‘Where the Wild Things Are’ at the Siddhartha Art Gallery three years ago.&nbsp;
His pieces, titled Gaalis, featured sculpted female figures with the heads of dogs, sheep, and donkeys (pictured) to depict derogatory terms for women. Some critics said the collection was a satire on feminists.
Kalapremi started his artistic and teaching career in 1983 and over the years taught at Bhanubhakta School, Kathmandu University School of Arts, Lalitkala Campus and at his private Kalapremi Ceramic Studio. He has also lectured at Jeonju University in South Korea and recently at Tabor Academy in the United States.
Seven of Kalapremi’s former students were interviewed for this story. Five female students said he touched them inappropriately in his studio or at Kathmandu University. Two male students said they witnessed him abuse and harass the women. In all cases, the students struggled to recognise the abuse when it occurred, and the lack of reporting systems left them to cope on their own for years.&nbsp;
Earlier this year, students shared a social media post hinting at Kalapremi’s history of abusive behaviour following which more students of the artist reached out sharing similar experiences. Some students spoke of abuse that happened as long as 20 years ago.
Kalapremi, 60, has denied the allegations. He told Nepali Times: “Some years ago, there was a movement encouraging people to hug and kiss. I used to do it purely out of friendship and love. But after seeing posts on social media last year calling out my behaviour, I realised my actions may have hurt some people. I understand now that I should have been more mindful.”
He added: “I am also an auxiliary health worker, so I know the exact points to massage to relieve menstrual pain. It’s not just menstruation, I take anyone who is ill to the hospital.”
Sexual abuse is much more rampant than reported given how difficult it is to prove it in court. The law defines sexual abuse as occuring when someone touches another’s private parts, coerces them into touching theirs, uses vulgar language, shows degrading images, or behaves indecently towards them without consent.&nbsp;
Ekta and her fellow students are consulting lawyer Suneeta Regmi Pokhrel, who says they know that even if the court decides in their favour, it is difficult to survive after speaking up, and influential men defend themselves saying they are being framed.&nbsp;
“They are in a lot of pain and weep when recalling how he abused them,” Regmi Pokhrel told us. “They are angry and have filed a case against him, but they are also terrified. They know he is a powerful man and they have seen how our society treats women who speak up against abusers. Unless people speak up, perpetrators will be emboldened.”
Art and academia in Nepal simply reflect the power imbalances in society where people with intersecting identities experience worse forms of abuse. Theatre actors Raj Kumar Pudasaini, Rajan Khatiwada, and Sunil Pokhrel were called out during the #MeToo movement in the Nepali theatre scene in 2019. Even after the allegations Pokhrel went on to receive national awards, while others continued to work without repercussions.
“If you speak up against abusers, you gradually get sidelined from projects,” explained a theatre artist who wished anonymity fearing professional setbacks. “The theatre scene in Nepal is quite small, you just have to make peace with the perpetrators and work with them if you want to sustain yourself.”&nbsp;
In academia there is a history of faculty members sexually harassing students and getting away with it. After Tribhuvan University (TU) lecturer Krishna Bhattachan was accused of harassing women students, the university said it would follow Nepal’s sexual harassment law and set up a reporting mechanism. But nothing happened to the professor, who had already retired. Instead, he counter-accused the students of 'attacking the indigenous people’s movement with baseless allegations' as <a href="https://kathmandupost.com/letters/2019/01/29/bhattachan-responds">he told the Kathmandu Post in 2019</a>. He continues to be featured as a prominent speaker including at TU.
Other faculty members previously accused of sexual harassment include Jagadish Murti Koirala from TU, Bishnu Prasad Acharya from Ratna Rajya Campus, and Bodha Raj Tripathee from Lalitpur Madhyamik Vidhyalaya. A woman staff member from TU also filed a sexual abuse complaint against Dambar Chemjong from TU.
Prominent figures like <a href="https://nepalitimes.com/news/the-rise-and-fall-of-nims-purja">mountaineer Nims Purja</a> have been <a href="https://www.nytimes.com/2024/05/31/sports/mountaineering-sexual-harassment-abuse-nims-purja.html">accused of sexual assault</a>, and cricketer Sandeep Lamichhane, actor <a href="https://nepalitimes.com/news/celebrity-rape-case-spotlights-nepal-laws">Paul Shah</a>, and former speaker of Parliament <a href="https://nepalitimes.com/news/mahara-arrested">Krishna Bahadur Mahara</a> have been accused of rape, but society-at-large has let off the alleged perpetrators amdist a larger debate about justice for survivors and punishment of perpetrators.&nbsp;
‘Gaushala-26’ is the court name given to the 18-year-old who accused Sandeep Lamichhane, former captain of Nepal’s national cricket team and skipper of Biratnagar Kings in the <a href="https://nepalitimes.com/here-now/here-comes-the-nepal-premier-league">ongoing Nepal Premier League</a>, of rape. She left the country citing society questioning her character affecting her mental health while Lamichhane got an outpouring of support. In May, the Patan High Court overturned a prior verdict that found Lamichhane guilty of rape and had sentenced him to eight years in prison. During the 23-month legal battle to pursue justice, Gaushala-26 faced threats of gang rape and acid attacks.&nbsp;
Exhausted by the struggle, Gaushala-26 sought to “move to a new world” where she could live free without hiding her identity.
Actress Samragyee Rajya Laxmi Shah in an Instagram video now deleted detailed the harassment she faced from a filmmaker during a movie shoot. She did not name any name but veteran actor Bhuwan KC filed a defamation case against Rana, but the court ruled that the charge lacked sufficient evidence.&nbsp;
Former Kathmandu mayor <a href="https://nepalitimes.com/opinion/theytoo">Keshav Sthapit also mocked the #MeToo movement</a>, calling accusations against him by journalists Rashmila Prajapati and Ujjwala Maharjan “a rape of men’s rights”.
Serial Abuse
Back at the Kalapremi Ceramics studio, another former student, 24-year-old Rajiv, says he felt the need to speak out after seeing his female classmates being abused.&nbsp;
“He frequently kissed them on their cheeks,” he told Nepali Times. “Whenever they walked into the studio he flailed his arms like a child asking for a hug. They awkwardly hugged him from the side, but he pulled them closer, held their chin, and kissed their cheeks.”&nbsp;
Rajiv says he also saw Kalapremi pull the women’s bra straps, touch their breasts, and slap their buttocks. The young students would freeze, not knowing how to react, and if they protested, he would say it was “normal in art”. Rajiv, 19 at the time like his classmates, remembers thinking perhaps the well-respected artist was right after all.
Another student, Luna, who took lessons at Kalapremi’s studio from 2020 to 2022 did try to confront the tutor after he made an obscene proposal to her. She recalls: “One day when the other students had left the studio and it was just the two of us, he told me that God had given him special artistic talent and he could transfer those powers to me. But to do that both of us will have to be naked, inside a dark room, and have sex.”
Luna, who was 18 then, was livid and told him she did not want any of his powers, but she says he laughed at her as if he was joking. She did not tell her family about the incident because she thought no one would believe her.&nbsp;
“They were all in awe of this famous artist and felt I should be grateful that to be learning sculpting from him,” she says. “I was scared to be alone with him in case he talked about sex again. My coping mechanism was to be rude so he wouldn’t try to come close to me.”
Seeing how some classmates were standing up to Kalapremi, Ekta too tried to push back against his advances, but she said he found ways to coerce her. Since Ekta, Rajiv, and Luna could not afford Kalapremi’s Rs30,000 monthly fee for lessons, he had offered them all a stipend to assist him in the studio.
“He had spondylosis and took me to his therapy sessions to learn massage techniques, then he often made me and other students massage him,” says Ekta. Whenever she refused, he would feign pain to make her feel sorry for him. “He would insist that I put my hands under his shirt so that I could massage him better,” she adds.
The art tutor often tried to “seduce sympathy” from Ekta by sharing how he had never been loved as a child and was “sexually frustrated” as an adult.&nbsp;
“At 7PM, he would pour himself Signature whiskey and immediately go off again about how he was sex-starved. I didn’t know how to respond. It took me time to realise alcohol was just an excuse to talk about sex,” Ekta says.
If convicted, Kalapremi could face financial penalty and/or a prison sentence of up to three years according to Section 224 of National Penal (Code) Act 2017.&nbsp;
Data suggests that victims of child sexual abuse on average take nearly 24 years to tell someone about their trauma, and some may never disclose it at all.&nbsp;
“In our culture, children are rarely taught about boundaries. They often react, show anger when adults pinch their cheeks. But adults insist they did it out of love, and force the children to accept it,” says Sita Lama, a psychotherapist at Manka Kura. “And even when someone touches them inappropriately they struggle to identify and verbalise it.”
When perpetrators claim to be “acting out of love”, Lama says survivors are likely to perceive it as something safe, rather than recognising it as abuse.&nbsp;
“It may take years for them to realise they were abused,” she explains. "And even when they become aware, the power imbalance with the abuser and the associated shame often prevents survivors from speaking up."
Other former students from the School of Art at Kathmandu University have also come forward years later, saying Kalapremi sexually abused them. As young adults, they felt his behaviour was off but were uncertain if it was inappropriate, illegal, or they did not know how to respond. After having understood that it was indeed abuse, they say they are speaking out now to protect others.&nbsp;
Amina Singh, a visiting faculty member at Kathmandu University, says there is no clause against sexual abuse in contracts of teachers, and there is no formal grievance handling mechanism for the students.&nbsp;
“So the only way students can to deal with sexual abuse is approach someone they trust,” she says.
Eight other former art students of Lalit Kala Campus and Srijana College of Fine Arts of Tribhuvan University and other private art studios in Kathmandu say they were also sexually abused by their art teachers. Three faculty members interviewed from these institutions said they saw the abuse, but felt it was futile to report it given how powerful the teachers were.
In the absence of a formal system, some longtime women artists warned each other about “problematic” artists. They shared &nbsp;a “heads-up” to be more cautious when collaborating with them, and avoided responding to their calls and texts after work hours.
To ensure art institutions are safe for all, galleries, museums, artist studios, and smaller art spaces need to develop policies on sexual harassment. This would include a code of conduct or studio policies that hold the leadership accountable and outline the principles of professional ethics.&nbsp;
Students and employees should inquire about accountability mechanisms for raising concerns, both formally and informally, advocates say.
Three years after Ekta left the ceramics studio, she learnt that Kalapremi had harassed many other women. Still trying to get a footing in the art industry, she attended a workshop in Kathmandu where women artists discussed ways to stay safe in the art sector.&nbsp;
Since it was a close-knit group Ekta opened up about how she felt violated and realised she was not alone, he had been abusing underprivileged students for years, and this was common knowledge among artists in Nepal.
Ekta says that even after she quit, Kalapremi continued sending her text messages like ‘I am thinking of you’, ‘Why have you stopped speaking with me’, or ‘I am waiting for your call’.&nbsp;
But what really forced her to act was when Ekta found out that he was sending similar texts to her younger sister.&nbsp;
“I’ve had enough,” she told us. “He abused me all these years but I won’t let him abuse my sister.” &nbsp;
Ekta, Rajiv and Luna are not the real names of the students.&nbsp;

‘Art Lover’ accused of sexual abuse

It was 8:15 in the evening of 25 March 1968 when everyone in the village of Batulechaur near Pokhara heard a deafening sound like thunder as a bright flashing object hurtled down to land in a field.&nbsp; That field belonged to Kul Timilsina, and the next morning he retrieved a sheet of metal about 2m by 1m and carried it home with the help of a few others, thinking it would be useful for his buffalo shed.&nbsp; Before he died at age 83 three years ago, Timilsina had told photo archivist Sunil Ulak that the black metal sheet was not rectangular and had rounded corners. There are a few witnesses still alive who have a clear recollection of the object that fell from the sky that night.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024120707128_75cc85aac56b9cc4a77366471f058d7b3eb6868776811b0923845c2d0a61f014.jpg" data-media-id="editor_0" data-image-id="2024120707128_75cc85aac56b9cc4a77366471f058d7b3eb6868776811b0923845c2d0a61f014" data-rendition-name="original" width="1170" height="601" loading="lazy" alt="UFO over Pokhara"> <figcaption>The field in Batulechaur belonging to Kul Timilsina where fragments of a flying object fell from the sky in 1968.</figcaption> </figure>  One of them is Timilsina’s wife Gyanu, who was 22 at the time. She had been at home, and remembers hearing the big bang and the sky becoming very bright. “We saw the thing in the field in the morning,” she told us. “It looked like a lid, a covering of some sort. The way it was stuck in the ground, it must have fallen from the sky. We thought we could use it to dry clothes on, and took it home.”&nbsp; Another witness is Kul Narayan Paudel. “I was only eight then. We ran to the field to see what had fallen. It was a four-sided metal sheet. The elders took it away, and I don't know what happened to it.” &nbsp; Ram Bahadur Baniya, a teacher at the local school, says he had heard the sheet had been brought to the school, and later handed over to the Zonal Commissioner at the time, Nanda Prasad Malla. “But that is all hearsay,” he says.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024120707128_0bf207a12063fb8155b3c8d9a00a94887b126380c9e0627527c84cf5e1101f54.jpg" data-media-id="editor_1" data-image-id="2024120707128_0bf207a12063fb8155b3c8d9a00a94887b126380c9e0627527c84cf5e1101f54" data-rendition-name="original" width="1170" height="610" loading="lazy" alt="UFO over Pokhara"> <figcaption>Gyanu Timilsina, wife of Kul Timilsina.</figcaption> </figure>  There are two versions of what happened to Kul Timilsina’s metal sheet. One is that an American Peace Corp Volunteer teaching at the nearby Bindyabasini School took it, and another is that it was handed over to the government. Recently declassified Central Intelligence Agency (CIA) and US State Department documents from the time say that the US Embassy in Kathmandu tracked down the object two years later and had it shipped back to the US. A telegram from the Department of State and Department of Defense tagged as ‘MOON DUST / Space Fragments’ dated 1 March 1972 stated: ‘1. Restored space fragment will be on board Embassy support flight 115 arriving Kathmandu on or about March 10. Fragment is packed in shipping crate (cargo no. 72-33365) marked in care of DAO.&nbsp; 2. State and Defense representatives examined fragments prior to shipment finding restoration acceptable.’  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241207071212_929d903ee06d41baa4f6040e981cd7c7d7bd75cc9c37c9b617d307fc8538d2df.png" data-media-id="editor_2" data-image-id="20241207071212_929d903ee06d41baa4f6040e981cd7c7d7bd75cc9c37c9b617d307fc8538d2df" data-rendition-name="original" width="856" height="568" loading="lazy" alt="UFO over Pokhara"> <figcaption>Declassified CIA documents about the investigation into the object sighted in Pokhara. </figcaption> </figure>  The documents show that the US government, military and intelligence agencies investigated this incident thoroughly when it occurred, and have continued to revisit it ever since, as recently as five years ago. What is even more intriguing is that the object that fell in Pokhara was not the only unidentified space object that fell to earth that year. There were similar sightings of objects falling from the sky in Ladakh, Sikkim and Bhutan between 19 February and 25 March 1968.&nbsp; These mysteries were the subject of a CIA investigation in 1968 titled ‘<a href="https://www.cia.gov/readingroom/docs/CIA-RDP81R00560R000100070007-8.pdf">Sighting of Unidentified Flying Objects in Ladakh, Nepal, Sikkim and Bhutan</a>’, and the report is part of the recent online declassification of 800,000 top-secret documents from the period.&nbsp; &nbsp;Although unidentified flying objects (UFOs) have a connotation now of being alien craft, it could be pieces of satellite, missile, rocket or even aircraft. The CIA report documents six sightings in 1968 and quotes local sources as describing all of them having similar characteristics: bright blue or red streaks in the sky accompanied by loud sounds like lightning and thunder and objects falling to the ground. Aside from the metallic object that was found in Batlechaur, there were other items also found nearby in Tallakot, Tureypasal, Armalakot and Maidan. Whatever the object was, it seems to have disintegrated even before it hit the ground.&nbsp; The CIA report records the first sighting on 19 February 1968 in various parts of Sikkim and Olangchung Gola and Ghunsa in eastern Nepal. The light was said to be ‘long and thin’ and giving out ‘green and red light’. &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241207071212_c3c825027d966a2aedc846970390eebe063957503c7eacc8e01e0517843f9bbb.png" data-media-id="editor_4" data-image-id="20241207071212_c3c825027d966a2aedc846970390eebe063957503c7eacc8e01e0517843f9bbb" data-rendition-name="original" width="892" height="596" loading="lazy" alt="UFO over Pokhara "> </figure>  Two days later on 21 February, a soundless blue object was seen traveling fast across the sky above Thimphu in Bhutan. Then on 4 March there were multiple daytime sightings or white streaks in the sky at Chang La Pass, Fukche and Koyul in Ladakh. There were more sightings in Ladakh on the very day fragments fell near Pokhara on 25 March 1968.&nbsp; After the sightings in Pokhara, rumours started flying in Kathmandu that these were aliens trying to land on Earth, it could be Russian or Chinese spy planes or satellites, and some even say it as a sign from heaven that the end of the world was near. This was at the height of the Cold War. The Russians and Americans were testing their thermonuclear devices as well as intercontinental ballistic missile delivery systems. The Washington-Beijing rapprochement had not yet happened, and China was making quick progress testing atomic bombs. Within two years after its first atomic test, in 1966 China exploded its first hydrogen bomb at the Lop Nur site in Xinjiang, 3,000km to the north from Nepal. After neary six decades, what is still intriguing is that all the sightings within a few months of each other in 1968 were along the Himalayan arc bordering Tibet: from Bhutan, Sikkim Nepal, to Ladakh. The US military intelligence seems to have concluded that this was not a coincidence and there were frequent research trips to the site in Pokhara by American officials in the months after the incident. With the help of the Royal Nepal Army, the region north of Pokhara was thoroughly searched.&nbsp; A confidential memo dated 25 June 1968 by Jerry C Trippy to a ‘Mr Farley’ mentions that the US Air Force’s Foreign Technology Division had decided that the debris could be important because it may be related to a Chinese missile test or a Soviet ‘Vehicle Venik’ rocket.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241207071216_feb5425692dc36b20187de4e4fcc2ce9fd12b6d9e1b8724398e50bcdbf9032fe.jpg" data-media-id="editor_5" data-image-id="20241207071216_feb5425692dc36b20187de4e4fcc2ce9fd12b6d9e1b8724398e50bcdbf9032fe" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="UFO over Pokhara"> </figure>  On 28 August 1968 the US Embassy in Kathmandu sent a letter to Washington DC saying that the object could be of Soviet origin, possibly from when the rocket carrying the ‘Kosmos 208’ satellite re-entered the atmosphere. But why were the fragments falling to earth several weeks apart, and in the same region? No one knows where the metal sheet that Kul Timilsina recovered is now. It was definitely packed in a crate and taken to the US, and although it is rumoured that it was returned that is not very likely. Archivist Sunil Ulak heard from the Timilsina family that CIA officials had returned to the site five years ago. &nbsp; Interest in UFOs peaked in the US in the 1950s, with the Cold War space race and tests of atomic weapons and delivery rockets. CIA and scientists were being sent to investigate sightings, both publicly and privately. Could the Pokhara fragments as well as the sightings in Ladakh and Bhutan actually be alien craft falling to earth? The renewal in interest in space travel in large part due to Elon Musk’s SpaceX, UFOs and sightings are again subjects of public interest.&nbsp; Even 57 years later, even if there was definitive proof about whether the Batlechaur fragment was from a Chinese missile or a soviet rocket, it has not been made public in documents declassified so far. We may never know.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241207071216_b6938795f40731e7657fd6dcbb3cf460a326186a15eb11d4f832f602201ff598.jpg" data-media-id="editor_6" data-image-id="20241207071216_b6938795f40731e7657fd6dcbb3cf460a326186a15eb11d4f832f602201ff598" data-rendition-name="original" width="642" height="320" loading="lazy" alt="UFO over Pokhara"> </figure>  Sunil Ulak speculates if the debris actually came from an American aircraft, perhaps on an intel mission upon China. “Which could explain why they were so thorough in collecting the fragments in Pokhara,” he says. But that still does not explain the multiple sightings weeks apart in 1968.&nbsp; Indeed, US military aircraft were at that time flying frequent night-time missions from air force bases in India to supply weapons to Khampa guerrilla camps in Nepal located north of Pokhara in Mustang. It could very well be that the Chinese shot down one such aircraft. The other sightings could have been contrails of US spy planes, or Chinese anti-aircraft missiles.&nbsp; There were quite a few developments regarding UFOs in 2024. In a US congressional hearing in July, former intelligence officer David Grusch claimed that the government had long been involved in a program to investigate and retrieve non-human craft crashes, and then try to reverse engineer them. However Grusch did not show any evidence.&nbsp; The UAP Disclosure Act of 2024 was signed into law by Joe Biden in December 2023. It plans to oversee the public disclosure of UFO information. However, there is a clause in it that prevents disclosure if it would cause threats to military defense, intelligence operations or foreign relations.&nbsp; It is unlikely that the declassified documents about sightings in the Himalayan will cause any real surprise about definite evidence of alien life even if it was found. It seems humanity will continue, at least for now, to wonder about curious lights in the sky and whether there is anybody out there.&nbsp;

UFO over Pokhara

When Rastriya Swatantra Party (RSP) president Rabi Lamichhane was arrested in October on charges of defrauding depositors of cooperatives, the party’s vice president Swarnim Wagle gifted him Fareed Zakaria’s book, Age of Revolutions.
Since then, Lamichhane has been shunted around from Kathmandu to Pokhara to Chitwan and back to Pokhara to attend police investigations and court proceedings. He was being flown to Birganj via Kathmandu on Buddha Air on Monday. There is another pending case in Janakpur.
Human rights groups and civil society have criticised the government for hounding Lamichhane with inhumane treatment that borders on physical torture. The two parties in the coalition, Nepali Congress (NC) and the UML, see Lamichhane’s RSP as a potentially formidable challenge to their power.
Even if the fraud charges against Lamichhane are true, the Nepali public is increasingly looking at the government’s actions through the police and courts as political vendetta.
Despite all the travelling, sometimes by plane and often by road at night, Lamichhane appears to be in high spirits, waving to supporters who often gather if they know he is going to be driven around. A social media video shows him giving high fives to fellow passengers on a recent flight to Pokhara.&nbsp;
In the past weeks, streets in Pokhara have erupted with parallel protests by Lamichhane’s supporters as well as depositors of cooperatives who lost their savings to the scam.&nbsp;
Although family visits are allowed, prison officials in Pokhara told Nepali Times that not many people visit Lamichhane these days. He added, “When he does get visitors, he asks them to bring him books.”
Lamichhane is currently Nepal’s most high-profile public figure in custody, and highlights the stark difference between how influential prisoners are treated compared to ordinary inmates.
There are six prison cells at Kaski District Police Office’s two-story detention centre, three on each floor. And while authorities pack prisoners into already overcrowded cells, Lamichhane has an entire room on the second floor to himself.&nbsp;
He has also been allowed to call his family every few days. Other prisoners are not permitted phone calls except for emergencies.
Meanwhile, Lamichhane’s former business partner Chhabilal Joshi, an ex-Deputy Inspector General of Police with whom he established his Gorkha Media Network, is in custody under the same charges in the prison cell next to him.
Lamichhane is accused of siphoning off depositors' money to the tv network in which he was part-owner and anchor. &nbsp;
Both Lamichhane and Joshi are able to buy food from the police canteen instead of being served the regular meal like other prisoners. Joshi has also given his statement to authorities in Rupandehi and Kathmandu for his alleged role in the scam. Lamichhane is yet to be presented in Kathmandu for questioning.
While he was in custody at the Kathmandu District Police Complex, Joshi expressed his desire to sleep in a police officer’s office, reportedly assuring authorities that he would not run away and he was entitled to certain facilities as a former officer of the law.
“He seemed to be under the impression that he is still a police officer,” says a source at the Kathmandu District Police. “We made it clear to him that as someone accused of a crime, he was not entitled to special treatment.”
Former ministers Balkrishna Khand and Top Bahadur Rayamajhi, and ex-home secretary Tek Narayan Pandey, who were arrested in connection with the fake refugee scam last year, were similarly housed in the offices of law enforcement officials instead of prison cells. Khand has since been released after six months in jail.
While there is no legal provision to keep high-ranking officials in separate detention centres when they are arrested, authorities granting them special facilities is not uncommon. Law enforcement officials say VIP detainees expect preferential treatment while in police custody.
Among those is former Kosi Province minister Lila Ballav Adhikari, who was arrested from Biratnagar on 10 November over his alleged involvement in human trafficking and brought to Kathmandu. Adhikari had flown to Japan without government approval with three individuals on 29 October to attend a cultural conference, but had been sent back to Nepal from Narita.&nbsp;
His three companions were arrested at Kathmandu airport upon their arrival, but Adhikari was able to exit unscathed from the VIP lounge. Adhikari had resigned as the Kosi Province Minister for Internal Affairs and Law when it became public that his companions had been taken into custody, and was himself arrested shortly after. He has since been cleared by the courts.
Throughout his detention, Adhikari was kept separately from other inmates. Senior Superintendent of Police (SSP) Basant Rajouri, head of the Bhadrakali complex, says that while there is no separate detention area for VIPs, some detainees are kept separately depending on the nature of their crime.
However, sources say that arrangements were made for retired judges and others to visit Adhikari frequently worked at the office of a Deputy Superintendent of Police (DSP) during his time in custody.&nbsp;
“He used to constantly pester the authorities to let him sit outside in the sun, and to be able to use the police officer’s shower area,” added an officer.
Adhikari was released on 25 November after the government prosecutor’s office decided not to charge him in a move that was seen to expose the government’s double standards.
Over at Kathmandu’s Dilli Bazar Prison, former Kist Bank CEO Kamal Gyawali emerges from his prison cell into the courtyard of the prison’s ‘Ka (क)’ block every morning with a thick book in his hands, ready to give his daily sermon.
With his long beard, Gyawali, who is serving a prison sentence for banking fraud, looks the part of a religious guru as he implores his rapt listeners to “walk the right path, abandon bad thoughts and turn to scripture and spirituality”.&nbsp;
Afterward, the attendees gather to discuss politics and current affairs. Inmates at his daily sermons at the prison include other high-profile detainees, including former MP Ichchha Raj Tamang, who is in jail for money laundering and cooperatives fraud, former joint secretary Chudamani Sharma, who was convicted of corruption, as well as NC leader Chandra Bahadur Lama and Krishna Bahadur Upreti of the UML both of whom are on trial for embezzling billions of rupees.
Victims of the cooperatives scam that former lawmaker Tamang was involved in have made trips to the prison and requested visits, but he has refused to meet with any of them.
“Tamang often complains that the state has prevented him from returning the money to the victims by locking him up,” says a police officer at the Dili Bazar jail.
“All you hear every day from the VIP prisoners is that they have been framed,” adds the officer. “No one admits that they were involved in misdeeds.”
But while most high-profile prisoners complain about prison conditions, one exception is former provincial lawmaker Deepak Manange, who is serving a sentence at Dilli Bazar Jail for attempted murder.
“He is the happiest prisoner here,” says a warden. “Unlike the others, he doesn’t claim to have been framed, in fact he doesn’t seem to care that he is in prison.”
Manange is detained in the ‘Kha (ख)’ block of the prison complex, which he renovated at his own expense. The block previously housed female prisoners, but Manange used his influence to transfer them elsewhere. He faces no shortage of visitors, who range from political leaders to people from the underworld.
Along with Manange, other well-known prisoners in this block include Nepal Telecom Managing Director Sunil Poudel, and former executive director of the Surakshan Printing Centre Bikal Poudel, who are serving time for corruption.
Former prisoners at Dilli Bazar prison include ex-ministers Khum Bahadur Khadka and Shyam Sundar Gupta, NC leader Ganesh Lama, Maoist MP Balkrishna Dhungel, Nagarik Unmukti Party leader Resham Chaudhary, as well as former IGs Ramesh Chand Thakuri, Om Bikram Rana, and Hem Bahadur Gurung.
Section 54 of Nepal’s Prison Act assigns each prison’s internal administration the
responsibility of governing its prisoners, which means the more favourable the jail management is, the more comfortable it is for prisoners.
Dilli Bazar prison has been the prison of choice for many high-ranking prisoners, especially those convicted of white collar crimes, due to its more accommodating administrators. The prison, which has the capacity to house 700 inmates, is also less crowded than other jails.
Anuj Bhattarai, spokesperson of the Department of Prison Management, says that there is no legal classification in Nepal for felons to be assigned prisons based on the nature of their crimes.
“That Dilli Bazar Jail has a higher number of prisoners convicted of crimes like corruption is most likely a coincidence,” says Bhattarai. “There is no provision for influential people to be able to choose where they will be incarcerated.”&nbsp;
Translated by Shristi Karki from the Nepali original published in himalkhabar.com

What Nepal’s VIP prisoners do in jail

The Nepal Premier League T20 men’s cricket tournament is a culmination of much progress in the sport in Nepal over the past decade, and a thrilling first step into higher level sports events in the country. Adding to the excitement is the international talent taking part. The tournament features eight teams made up of Nepali and international cricketers, including Shikhar Dhawan, one of India’s greatest ODI batsmen over the 2010s, and an IPL stalwart for the Delhi and Mumbai franchises. Dhawan is playing for the Karnali Yaks at the NPL. Other eminent imports include Kiwi batsman Martin Guptill, Indian-American Unmukt Chand, and Trinidadian fast bowler Anderson Philip. The NPL franchises are named for Nepal’s provinces and cities. Beside the Yaks, there are the Biratnagar Kings, the Chitwan Rhinos, the Janakpur Bolts, the Kathmandu Gurkhas, the Lumbini Lions, the Pokhara Avengers, and the Sudurpaschim Royals. The franchises have a wide variety of backers, including Kantipur Publications behind the Gurkhas, Chitwan Medical College behind the Rhinos, and Himalayan Builders for the Yaks. These entities are paying the international stars salaries rumoured to be in the Rs5 million range ($37,000) for the 21-day contest.&nbsp; The teams will play each other first in a round-robin league, after which the best performers will progress to playoffs. There will be 32 games in total, all to be held at the Tribhuvan University International Cricket Ground in Kirtipur which is being spruced up, including additions of an expanded boundary, digital scoreboard, new sight screens, and practice pitches.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241129041152_9236da646959b888a8635b10bd46b9f9e08f0068ab031a4b8ad736a185288164.jpg" data-media-id="editor_0" data-image-id="20241129041152_9236da646959b888a8635b10bd46b9f9e08f0068ab031a4b8ad736a185288164" data-rendition-name="original" width="1080" height="1080" loading="lazy" alt="NPL"> </figure>  “Holding all the games at the same stadium makes sense logistically for this inaugural season,” says Chhumbi Lama of the Cricket Association of Nepal (CAN). “Future editions will see matches happen across Nepal.”&nbsp; Another benefit of the tournament in future is that it may expedite the completion and upgrades of stadiums across the country, such as Mulpani Cricket Stadium in Kathmandu, the Gautam Buddha International Stadium in Bharatpur, and the Fapla Cricket Ground in Kailali. The main benefit of the tournament is said to be the development of Nepali cricket talent. The rules are also made up to favour this with each 16-player squad having no more than four foreign players. One Nepali ‘marquee’ player was selected by lottery, and others were signed through auctions for as high as Rs1.5 million. “Each team will have the marquee player from the province they represent,” says Lama, although this does not seem to be the case in practice. The 24-year-old leg spinner Sandeep Lamichhane, for example, is captaining the Biratnagar Kings, although he comes from Syangja district in Gandaki Province. “NPL’s goal is to support the development of cricket and our players,” says ex-captain and CAN secretary Paras Khadka. Players who are not usually selected for the national team will have the chance to show their cricketing skills. This has proved very beneficial in similar domestic leagues around the world. The Indian Premier League, for instance, led to the discovery and improvement of players like fast-bowler Jasprit Bumrah and batsman Suryakumar Yadav, who not only have become regular starters for the Indian national team, but also are now some of the top-ranked cricketers in the world, contributing to India being the best team in both T20s and ODIs. Nepal’s excellent run in the T20 World Cup this summer, with stellar performances against The Netherlands, South Africa and Bangladesh showed the world that the country could compete at the highest level in cricket. This has added to the legitimacy of the NPL and also promises longevity through future editions: the titular sponsor of the tournament, Siddhartha Bank, has committed to this role until 2029. Ncell is also involved, as the ‘Powered by’ sponsor, continuing the telecom company’s support for cricket, football, volleyball, golf and paralympic athletes. Another sponsor for the Kathmandu Gurkhas, is Chinese electric vehicle giant BYD. Adding weight to the NPL is that it is being broadcast live on Star Sports, giving it a global audience. Perhaps the eyes on the tournament that will have the added benefit of discouraging match fixing which has been a problem in past attempts to organise cricket leagues in Nepal.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024112905110_d1817c8e82f476c20081dae3ba820c7f7305b8cfb095a97264915c6af50f3d60.jpg" data-media-id="editor_1" data-image-id="2024112905110_d1817c8e82f476c20081dae3ba820c7f7305b8cfb095a97264915c6af50f3d60" data-rendition-name="original" width="1440" height="1080" loading="lazy" alt="Nepal Premier League NT 3"> </figure>  The 2022-23 Nepal T20 league, sold to Indian sports management company Seven3Sports by CAN, saw individual cricketers approached by sports bettors to ‘spot-fix’ by getting out quickly or conceding a lot of runs when bowling. The large sums of money offered to the athletes by fixers is tempting, especially considering that salaries are not only low but sometimes unpaid. This led to an investigation from officials from the International Cricket Council, and cases filed against cricketers by the District Attorney’s Office in Kathmandu. The much wider coverage of this tournament should do better at discouraging corruption. Ticketing partner Khalti reports that tickets for the opening game are quickly selling out. The winning trophy was revealed at a ceremony at Dharara on Saturday. Marquee Players including Lamichhane, Rohit Paudel, Dipendra Singh Airee and Sompal Kami flanked Prime Minister KP Oli as he presented the cup: a large silver piece with an engraving of Mt Everest, topped by a stone from Kala Pattar (pictured).&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241129041152_f37ca66b9e68f28ad9bf1ab6f7dc74314e71345b8b3a02794c62be9357fb08be.jpg" data-media-id="editor_2" data-image-id="20241129041152_f37ca66b9e68f28ad9bf1ab6f7dc74314e71345b8b3a02794c62be9357fb08be" data-rendition-name="original" width="1080" height="720" loading="lazy" alt="Nepal Premier League NPL NT 1"> </figure>  The tournament kicks off at 12:15PM on Saturday 30 November, with a game between the Biratnagar Kings and the Janakpur Bolts. Two games are scheduled almost every day until 16 December, with the first starting at 9:15AM and the second at 1:15PM. Playoffs start on 18 December with teams that end up third and fourth playing first, with the loser eliminated. The first and second play next, with the winner advancing to the final. The loser then plays the winner of the first match for a place in the final. This format, compared to a straight semifinal-final approach, rewards teams for having done better in the group stages, as teams 1 and 2 have multiple chances at reaching the grand finale on 21 December. A team to look out for is the Sudurpaschim Royals which is well-backed, with the most Facebook followers. Captained by popular national team all-rounder Dipendra Singh Airee, the Royals also have batsman Aarif Sheikh, bowler Abinash Bohara and Scottish all-rounder Brandon McMullen in their ranks.

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