Just as Donald Trump’s overall economic strategy is based on nostalgia for a bygone era, his fossil-fuel-centred energy policies would represent an attempt to reverse history.&nbsp;
He would ultimately fail, but not before doing a great deal of damage to US competitiveness and security, and have an enormous impact on the efforts to combat global climate change.&nbsp;
While Donald Trump lacks a coherent platform, he clearly stands far apart from Vice President Kamala Harris on the issue.<a href="https://www.project-syndicate.org/onpoint/wealth-inequality-billionaires-undue-influence-bad-for-society-by-daron-acemoglu-2024-09#comments" target="_blank"> 
 
</a>Earlier this year, Trump <a href="https://www.budget.senate.gov/chairman/newsroom/press/budget-finance-committees-launch-joint-investigation-into-donald-trumps-quid-pro-quo-offer-to-big-oil-" target="_blank">reportedly</a> requested $1 billion in campaign contributions from fossil-fuel industry executives, promising in turn to roll back environmental regulations, hasten permitting and leasing approvals, and preserve or enhance tax benefits that the oil and gas industry enjoys.
Even if Trump is not an outright climate-change denier, he belongs to a broader school of politicians and commentators who do not think that we need to worry about it.&nbsp;
His vision for ‘Making America Great Again’ is to make the United States an even larger polluter, an even larger producer of fossil fuels, and an even bigger laggard behind Europe and much of the rest of the world.
Both science and technology are working against the fossil-fuel industry. The cost of renewables has plummeted, and under normal circumstances, this would have driven down the price of fossil fuels. But because Russia is such a large supplier of petrochemicals, the war in Ukraine has distorted the market.
If elected, Trump would probably sell out Ukraine, or at least arrange a temporary ceasefire, thus facilitating a greater flow of oil and gas. He also wants to reverse the US Inflation Reduction Act and increase hostilities with China, which produces many of the world’s solar panels and other critical inputs for decarbonisation.&nbsp;
A major slowdown of the green transition in the US is thus a real risk, even before considering the possibility that Trump would further increase the already massive US subsidies for fossil fuels.
Trump’s first term already offered a preview of what an overtly fossil fuel-friendly America would mean for the rest of the world. He endorsed climate-change deniers in Brazil and a host of other countries, and the US withdrew from the Paris climate agreement. In the years thereafter, progress on global climate cooperation clearly slowed.
But eight years after he first assumed office, the economic and security implications of climate change have become much clearer. Europe and Japan seem resolute in their commitments to tax imports from major carbon polluters, and though Trump would probably retaliate for these policies, US allies can take some comfort in the fact that he would have imposed tariffs on them in any case.
Ironically, often-vilified multinationals might play a crucial role in sustaining the green transition. The leaders of these companies recognise the realities of climate change, and they know that they must operate in multiple jurisdictions. If they do not join in the broader green transition, they will lose out now, and even more so in the future.
Even within America, the largest and most important states have already passed legislation pushing firms to decarbonise their operations and reduce carbon footprints. That means large companies operating in multiple states are already pursuing and adopting green technologies and business practices – and for the same reasons that multinationals will.
Yes, there will be aggressive attempts by some fossil-fuel companies to roll back these regulations. But there will also be stronger civil-society efforts, including <a href="https://www.project-syndicate.org/commentary/juliana-vs-us-extraordinary-tactics-to-block-federal-climate-lawsuit-by-joseph-e-stiglitz-2024-03" target="_blank">through the courts</a>, to hold companies accountable for the damage they have wrought.&nbsp;
Smart business leaders will recognise the folly of resisting the inevitable. Even in the oil and gas industry, some companies are already changing their business model to phase down fossil fuels and invest in renewable energy.
Thus, global politics, science, technology, sound corporate management, and the climate itself all weigh against Trump’s love of fossil fuels. Four decades ago, many assumed that tropical countries would bear the brunt of the costs, owing to their already high temperatures.&nbsp;
They indeed are affected, with some facing desertification and others poised to become uninhabitable. But they are hardly alone. The US has already suffered enormous damage, and by the end of the century those losses are estimated to be between <a href="https://epic.uchicago.edu/area-of-focus/climate-change-and-the-us-economic-future/" target="_blank">1-4% of GDP</a> annually.
It makes far more sense to do what we can now to limit this damage than to make the same kinds of repairs year after year. Four decades ago, we thought the cost of combating climate change would be very high. But low-cost renewables and the emergence of other new technologies have changed everything.&nbsp;
The cost of renewable energy is low and falling, and it would be even lower and falling faster with a greater public commitment to the green transition and the investments it requires.
There will be a green transition, the only questions are how fast it will proceed, and how much damage we will incur if it is delayed. Trump will attempt to throw a wrench in the process. He wants the fossil-fuel industry’s support, and the industry will view its campaign contributions as a high-return investment. A Republican-controlled Congress would, of course, do whatever Trump says.
The resulting pro-fossil-fuel environment would facilitate fossil-fuel investments, but since these have long time horizons, many would become stranded assets. American taxpayers thus may wind up paying thrice for the blunder.
In addition to the direct and hidden subsidies during the Trump administration and the direct and hidden compensation for stranded assets sometime in the future, they also will have to deal with the resulting lack of energy and climate security.
Elections always matter, but this one matters more than most. © Project Syndicate
Joseph E. Stiglitz is a Nobel laureate in economics and University Professor at Columbia University, is a former chief economist of the World Bank. He is the author, most recently, of The Road to Freedom: Economics and the Good Society (<a href="https://wwnorton.com/books/9781324074373/about-the-book/product-details" target="_blank">W. W. Norton &amp; Company</a>, <a href="https://www.penguin.co.uk/books/461399/the-road-to-freedom-by-stiglitz-joseph-e/9780241687888" target="_blank">Allen Lane</a>, 2024)

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The climate stakes of the US election

https://youtu.be/RTnxJKo97DIFor many tourists trekking to <a href="https://www.nepalitimes.com/latest/re-measuring-mt-everest/" target="_blank" rel="noopener">Mt Everest</a> Base Camp this autumn, the trip will be an adventure of a lifetime. The thin clear air, stark landscape, and ice-tipped peaks pierce the inky sky providing great Instagram backdrops.However, what is stunning scenery to tourists is for climate scientists an apocalyptic sight. They see dramatic evidence all around of a rapidly warming atmosphere.Visitors returning to the Everest region after 20 years also notice changes: large lakes where there were none, glacial ice replaced by ponds, boulders and sand, the snowline moving up the mountains, and glaciers that have receded and shrunk.Read also:<a href="https://www.nepalitimes.com/opinion/climate-for-change/the-great-himalayan-thaw/" target="_blank" rel="noopener">The great Himalayan thaw</a>, Ajaya Dixit<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171112/63692eea9c7e80680e03c079jpeg.jpg" alt="" width="1400" height="1050"/><figcaption>HIMALAYAN MELTDOWN: The Khumbu Glacier is the highest in the world and receding at 30m/y. It is also shrinking: Base Camp is now 50m lower than when Hillary and Tenzing climbed Mt Everest in 1955. Pics: Kunda Dixit</figcaption></figure>All these features are visible from ground level right from the start of the trek in Lukla. The banks of the Bhote Kosi still bear the scars of the deadly flash flood in 1985 which washed off a long section of the <a href="http://archive.nepalitimes.com/blogs/thebrief/2014/05/19/everest-climbers-continue-in-nepal/" target="_blank" rel="noopener">Everest Trail</a> and the hydropower plant in Thame. It was caused by an avalanche falling into the Dig Tso glacial lake, causing it to top over.Further up near Tengboche, the <a href="https://archive.nepalitimes.com/page/not-out-of-danger-the-big-one" target="_blank" rel="noopener">Imja Khola</a> also bears signs of a huge glacial lake outburst flood that thundered down the western flank of <a href="http://archive.nepalitimes.com/news.php?id=12870#.W7XuTHszbIU" target="_blank" rel="noopener">Ama Dablam</a> in 1977. And below the formidable south face of Lhotse is Imja Tso, a lake 2km long that has formed and grown in the last 30 years. It does not exist on trekking maps from the 1980s. All these lakes were formed and enlarged as a result of global warming melting the ice.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171112/63692eee9c7e80680e03c07ajpeg.jpg" alt="" width="1200" height="990"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171112/63692ef19c7e80680e03c07bjpeg.jpg" alt="" width="1200" height="800"><figcaption> </figcaption></figure>The terminal moraine of the <a href="https://archive.nepalitimes.com/article/Book-Review/The-Everest,428" target="_blank" rel="noopener">Khumbu </a>Glacier looms 400m above Dughla. This is the debris bulldozed down from Mt Everest and surrounding peaks over millions of years, and represents the extent of the glacier’s advance in the last Ice Age. Today, the surface ice on the world’s highest glacier is all but gone due to natural and anthropogenic warming.For an even more dramatic glimpse of how global warming is changing the Himalayan landscape, there is nothing like an aerial perspective. Nepali Times got a chance last week to take these striking images of the terrain below Mt Everest. The barren beauty foretells of a time when this terrain will be stripped of much of what remains of its ice cover.Read also: <a href="https://archive.nepalitimes.com/article/nation/melting-mountains-shake,3073" target="_blank" rel="noopener">When melting mountains shake</a>, Kunda Dixit<a href="https://archive.nepalitimes.com/article/nation/ice-to-water-glacier-lake-outburts-himalayas-nepal,4197" target="_blank" rel="noopener">Ice to water</a>, C Scott Watson<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171112/63692ef49c7e80680e03c07cjpeg.jpg" alt="" width="1400" height="1050"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171112/63692ef79c7e80680e03c07djpeg.jpg" alt="" width="1400" height="1050"><figcaption> </figcaption></figure>The Khumbu Icefall funnels ice from the Western Cwm below Everest, Lhotse and Nuptse to the glacier below. The ice here has receded at an average of 30m/y in the past 20 years, but it has also shrunk vertically, losing up to 50m in thickness. Everest Base Camp was at 5,330m when <a href="http://archive.nepalitimes.com/blogs/thebrief/2018/01/13/commemorating-edmund-hillary/" target="_blank" rel="noopener">Hillary </a>and Tenzing climbed Mt Everest in 1953, today it is at 5,270m.The glacier is also getting flatter: the darker debris makes the ice beneath melt faster near Base Camp, but the thicker layers of boulders and sand further down insulate the ice. Glaciologists say this flatter profile means the ice moves slower, leading to more ponding, and more rapid melting of the ice underneath.The velocity of the glacier is 70m/y at Base Camp, and it slows down to 10m/y further below, but is zero at the terminus situated at 4,900m. This means the ice is decelerating as it is squeezed, and the pressure is being released by the melting of the ice mass.Researchers monitoring the supraglacial ponds say their area has grown by 70% in the past ten years alone. The ponds are fringed by ice cliffs and caves which accelerate the melting. The melted ice has carved an outflow channel through the left lateral moraine, so there is no large glacial lake on the Khumbu like as elsewhere in Nepal.Scientists conclude that the Khumbu Glacier is not about to vanish, and the Icefall is not going to turn into a water fall any time soon. However, the permanent ice catchment of the glacier above 6,000 could start to deplete under the worst-case ‘beyond catastrophic’ scenario of +5°C warming.Read also: <a href="https://archive.nepalitimes.com/article/interview/interview-with-david-molden-icimod,3074" target="_blank" rel="noopener">Nepalis paying price for climate change</a><a href="http://archive.nepalitimes.com/article/editorial/going-green-environment-day,3064" target="_blank" rel="noopener">Climactic change, Editorial</a><h4>Climate Eco Tourism</h4><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171112/63692efa9c7e80680e03c07ejpeg.jpg" alt="" width="1400" height="934">Will more tourists visiting areas threatened by global warming spread awareness and help save the planet, or will the energy they burn contribute to making the earth warmer?Both. Tour operators offer Antarctic cruises, trips to Greenland and the Arctic to observe calving glaciers up close. Many have scientists on board instead of tour guides, and the travel companies say the trips help spread environmental awareness.However, mass tourism also comes with its own enlarged carbon footprint and the very act of visiting the Himalaya to see melting glaciers may contribute to thawing them faster. The carbon emitted by a holiday charter plane to the Maldives, for example, leads to sea level rise that may ultimately submerge the archipelago nation by the end of the century.However, as awareness grows about the effects of global warming in the poles and the ‘Third Pole’ (as the Himalaya is called) there is also increasing interest among the public to see up close the impact of climate change on the mountains. Many trekkers visiting Nepal are eco-conscious and aware that their travel and stay in Nepal comes with a carbon cost.Read also: <a href="http://archive.nepalitimes.com/news.php?id=16562#.W7XuDHszbIU" target="_blank" rel="noopener">Defrosted</a>, Kunda Dixit<a href="https://archive.nepalitimes.com/article/Book-Review/The-Everest,428" target="_blank" rel="noopener">The Everest Industry</a>, Kunda Dixit<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171112/63692efd9c7e80680e03c07fjpeg.jpg" alt="" width="1400" height="1050"><figcaption> </figcaption></figure>As they share their impressions on social media, there is evidence that climate tourism can indeed turn many visitors into environmental activists, or at least convince them to lead less carbon-intensive lifestyles when they get back home.Many environmentally sensitive visitors to Nepal these days calculate their carbon footprint from the aviation fuel per passenger on their flights to Kathmandu and Lukla, in taxi rides, and even the carbon emitted by the LPG gas in lodges along the Everest trail. And they try to offset all that by donating to agencies working on adaptation or mitigation of climate impact.Even so, there are critics of carbon offsetting who say that it is cosmetic and does not address the wasteful consumerism that is at the root of the climate crisis. They say trekkers on Everest hikes who buy carbon offsets are simply washing off their guilt, and shifting the responsibility to do something about global warming on someone else.On balance, however, there is a case to be made for climate eco-tourism creating jobs and benefitting the Nepal economy, ultimately allowing the tourism industry to introduce less carbon intensive technology. Tourists from all over the world can also see for themselves how the people suffering the most from the effects of climate change are the ones least responsible for it.There are websites to calculate your carbon footprint and how to offset the cost to the climate of your tour. There are also trekking agencies and airlines that try to minimise their carbon footprints.<a href="http://www.carbonfootprint.com/" target="_blank" rel="noopener">Carbon Footprint</a><a href="http://www.responsibleadventures.com/" target="_blank" rel="noopener">Responsible Adventures</a>:Mountain Helicopters: 01-4111032<h4>HOW MUCH CO2 DID YOU BURN TO GET HERE?</h4><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171112/63692eff9c7e80680e03c080jpeg.jpg" alt="" width="850" height="314">An economy class roundtrip passenger on a flight from London Heathrow to Lukla via Kathmandu emits 2.9 tons of carbon. The emission can be offset by contributing to verified climate protection projects that do not just contribute to reducing greenhouse gases and creating carbon sinks through forestry, but also for sustainable development.Readers' writePowerful article and photos -- nothing like it. So impressive and informative and depressing. Especially useful, the last sidebar: How Much Carbon Did You Burn to Get Here?- Jon Swan

Kunda Dixit

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On thin ice in the Khumbu

The monsoon has got bad press because Nepal’s tourism operators actively told visitors to avoid <a href="https://nepalitimes.com/opinion/managing-the-monsoon?%2F">the rainy season</a>. It is time to change that. The reason can be found right here in the vast alpine meadows of Central Nepal where this time of year you can walk on velvet grass of pastures abloom with delicate pink, red and yellow flowers as the mist rolls up the valley. There is no sound except the hum of bumble bees. &nbsp;&nbsp; There are dozens of places across high Nepal called Chaurikharka, which means yak pasture. But this particular Chaurikharka in Rukum East located at an altitude of 4,000m stands out for its serene beauty, rustic charm and bucolic setting. There is just the occasional chime of <a href="https://nepalitimes.com/here-now/when-yaks-go-so-does-culture">yak bells</a> in the distance, and the sharp whistle of herders corralling sheep. &nbsp;&nbsp; The grass shoots are so fragile that one hesitates to step on them, the rounded ridges appear and quickly vanish in waves of mist. With the<a href="https://nepalitimes.com/here-now/before-the-next-monsoon"> arrival of monsoon</a>, these meadows are a soothing shade of green dotted with millions of <a href="https://nepalitimes.com/review/the-anatomy-of-a-flower?%2F=">multi-coloured flowers</a>. Until very recently, it took a week or so to hike up to places like Chaurikharka, but with the expansion of the road network even to these far-flung mountains in the lap of Dhaulagiri, they are much more accessible. It is just a three-hour uphill from the Mid-Hill Highway on the border between Baglung and Rukum East.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16.jpg" data-media-id="editor_4" data-image-id="20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Purists would say that such easy access devalues the sanctity of these remote high meadows, but it also means more people will be moved to treasure the experience, appreciate <a href="https://nepalitimes.com/banner/natures-fragile-gift-to-nepal">the value of nature </a>so they can take steps to protect it.&nbsp; To be sure, the <a href="https://nepalitimes.com/here-now/deadly-monsoon-in-nepal-turns-deadlier">monsoon season can be challenging for road travel</a>. The roads are rough even at the best of times, and in the monsoon they become muddy and treacherous, often blocked by<a href="https://nepalitimes.com/news/monsoon-deluge-in-nepal"> landslides</a>. But that could be precisely the kind of adventure that the more intrepid visitors crave. Improved road connectivity has already made Chaurikharka and places like Badimallika &nbsp;and other sacred lakes in the mountains of western Nepal popular with domestic tourists. What is driving this traffic is the urge to go to exotic new places and share videos and selfies on social media. Several of Nepal’s travel vloggers have visited Chaurikharka and popularised the place, enticing followers on TikTok or YouTube to retrace their footsteps. But even as they become more popular, these fragile and once-remote places should be protected from over-tourism.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446.jpg" data-media-id="editor_8" data-image-id="20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446" data-rendition-name="original" width="1083" height="699" loading="lazy" alt="Visit Nepal in the monsoon NT"> </figure>  <h2>INCREASING FOOTFALL</h2> Chaurikharka is located in Bhume Rural Municipality of East Rukum, near the scenic valley of Dhorpatan in Baglung district. Even in the <a href="https://nepalitimes.com/banner/monsoon-culture">middle of the monsoon</a>, there is a steady stream of Nepali hikers trooping to these high pastures – especially during festival days like Saune Sankranti which this year was on 17 July and actually marks the auspicious beginning of the monsoon here. “This year the rains have not been as heavy and there have been some clear mornings when we could see everything from Dhaulagiri to Machapuchre,” says Khageswar Bhandari, who trekked up here from the road. “The flowers, the greenery and the snowy mountain views make this an incredibly unique place.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9.jpg" data-media-id="editor_10" data-image-id="20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9" data-rendition-name="original" width="2048" height="1152" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Chaurikharka is worthwhile to get to in any season, but it has a different charm during the monsoon. Word has spread and because it is now easy to get to from Baglung or even Pokhara, people have been flocking here.&nbsp; “Holidays and Saturdays see the largest crowds, with up to 500 visitors every day,” says ward chair Mankaji Pun of Bhume.&nbsp; There was a time not too long ago when local herders brought sheep, goats, cows, buffaloes, horses, and mules to graze here during the monsoon. Although there are still livestock around, animals have been replaced by visitors taking selfies. Read also: <a href="https://nepalitimes.com/here-now/the-monsoon-and-nature-s-arithmetic">The monsoon, and nature’s arithmetic</a>, Tom Robertson Ward Chair Pun says infrastructure development is his main priority. A foot trail to Chaurikharka was built last year by the Tourism Division Office in Kohalpur, but access via the Raniwas-Koipa road section still remains challenging.&nbsp; “If we get more budget, we can improve the road and facilities to make Chaurikharka the main tourist attraction of this region,” says Bhume Municipality Chair Hom Prakash Shrestha. “After that, we hope to promote Chaurikharka as a top tourist spot.”&nbsp; Economic activity is also picking up with the arrival of visitors, but there seems to be a need to manage the makeshift sheds made of corrugated sheets that spoil the beauty of the place. Tea shops and lodges are also available but facilities are basic. Kuldeep Neupane took a three-day trip from Ghorahi in Dang to visit Chaurikharka recently, and says: “This is an ideal trip to make a quick getaway and let nature recharge your mind and body. And it is much more fun with a tent, to watch the sunrise over the Himalaya or the mist blowing in.”

Visit Nepal in the monsoon

Two weeks ago, Prime Minister KP Sharma Oli announced jubilantly on social media that Nepal had achieved a historic annual growth of 81.8% in exports. He was right. Nepal’s trade did take a great leap forward compared to last year. But the dramatic rise was mainly due to processed soya bean oil.&nbsp; However, Nepal does not produce the edible oil it exports. In fact, the soya and palm oil that make up 44% of total exports are imported from Southeast Asia and South America, and simply re-exported, mostly to India.&nbsp; Under the SAFTA (South Asian Free Trade Area) Agreement, Nepal can export products to India duty-free if it has at least 30% value-added. Nepal’s traders have taken advantage of SAFTA even though the edible oils they export do not reach that value addition threshold. “The 30% value addition requirement is often only on paper,” says former commerce secretary Purushottam Ojha. “It is clear that simply packaging edible oils in Nepal does not fulfil the terms of the trade agreement.” Prime Minister Oli is aware of this, and even called Nepal’s export figures “fake” at an earlier event. The government is relying on other iffy figures to suggest that Nepal’s economy is strong and getting stronger. For example, the value of imports rose by 13.25% in 2024-25 compared to the previous fiscal year.&nbsp; Some of it was due to a jump in electric vehicle imports worth Rs 31.76 billion, but mostly it was because more wholesale soya oil was imported to be re-packaged and sold in India. The very fact that the government boasts about increased imports is an indication of how much it relies on taxing them for revenue. Touting such trade figures cannot be the basis to claim an economic rebound.&nbsp; “A jump in the value of imports can be interpreted as an increase in purchasing power, but it is not evidence of a stronger economy,” says economist Keshav Acharya. “Even though imports have increased, Nepal's domestic production and productive capacity have not improved.” Nepal Rastra Bank's semi-annual economic activity study report shows that industrial production was down in the first six months of the last fiscal year. This despite an increase in the number of new industries registered and investment commitments. Out of the Rs70.2 billion proposed foreign investment, Nepal received only Rs17.9 billion last year.&nbsp; Meanwhile, the rate of capital formation was limited to 24% last year, which is lower than the year before, suggesting that new investment, job creation and economic expansion all declined. If domestic production does not improve in relation to this year’s inflated trade figures, the outflow will put pressure on foreign exchange reserves like it did three years ago. At that time, Nepal borrowed from the IMF under its Extended Credit Facility Program to kickstart the economy.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f.jpg" data-media-id="editor_0" data-image-id="2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f" data-rendition-name="original" width="1633" height="723" loading="lazy" alt="Nepal's bubble economy NT"> <figcaption>Source: NEPAL RASTRA BANK</figcaption> </figure>  The macroeconomy is on firm footing with foreign exchange reserves at a comfortable Rs2,520 billion in May, up 23% from last year. This was largely due to remittances, and partly due to a falling NPR exchange rate. Real estate transactions and the stock market index have also been climbing as a result of government policies to revive the sector.&nbsp; However, former executive director of Nepal Rastra Bank Nar Bahadur Thapa cautions: “This is not organic growth, it is the result of deliberate policy decisions to relax rules on real estate and stock markets transactions.” In reality, the sharp rise in land prices have increased the cost of production, and excessive monetisation of the real estate has become the main source of Nepal’s economic woes. The central bank has announced a slew of new policies, shifting the terms of loan repayment for industrialists and entrepreneurs, reducing interest rates, and injecting more working capital — all designed to inject adrenaline into the real estate and stock market sectors.&nbsp; When he was governor, Mahaprasad Adhikari made several financial reforms during the latter half of his tenure to stimulate the economy, including tightening credit flow.&nbsp; By the last fiscal year, additional financial reforms had resulted in a credit expansion rate of around 8%. As the pace of credit expansion slows, real estate prices have started to fall. This is actually beneficial to the economy, because it lays the foundation for improvements in land-related entrepreneurship, production, and the construction sector. Just because real estate and the stock market transactions increase, it does not indicate an economic turnaround — especially when manufacturing and productive sector continues to languish.&nbsp; “It is foolish to believe that real estate and the stock market have magically revived our economy. Agriculture employs more than half of the population, but it is in decline. Investment in the productive sector has not increased, and job creation has not increased.” Two years ago, Nepal’s industrialists, business leaders, and political leadership predicted a recession amidst a sluggish business, declining market demand, large-scale job loss, and a shrinking real estate and share market.&nbsp; Still, the economy grew by 3.36% in fiscal year 2023/24. In fact, Nepal’s economy has grown nominally over the last two decades even when all sectors of the economy are in decline.&nbsp; Says Keshav Acharya: “The growth in trade, real estate, and the stock market are bubbles. The real economy remains stagnant.”

Nepal’s bubble economy

The final investigation report on the crash of a Saurya Airlines jet on 24 July 2024 at Kathmandu airport has revealed flaws in the carrier’s technical operation procedures, poor monitoring by the Civil Aviation Authority of Nepal (CAAN) and gaps in the airport’s emergency response. Eighteen people including a child were killed, and only the captain survived as the plane plunged seconds after takeoff, crashing within the airport perimeter. This was the latest in a series of aircraft accidents in previous years, and further tarnished Nepal’s already poor aviation safety record and contributed to the country being retained in the EU’s air safety list. &nbsp;&nbsp;&nbsp; The circumstances in the Saurya crash were different from the Yeti Airlines crash in Pokhara in January 2022 that killed all 72 on board, and two Tara Air crashes in February 2016 and May 2022 on approach to Jomsom that together claimed 45 lives. However, all four tragedies were a result of negligence of carriers and crew, failure to follow procedures, regulatory slackness, and overconfidence. The Saurya crash, especially, was a glaring example of how an ailing airline broke its own rules to allow passengers, including non-employees, a joy ride to Pokhara on a maintenance ferry flight. CRASH REPORT The Final Investigation Report prepared by the Aircraft Accident Investigation Commission and released on the first anniversary of the crash last week carried a long list of rules that were ignored or broken, and of regulatory failure. The first mistake was to cram spares, tools and inflammable chemicals needed for the aircraft’s C-Check in Pokhara into the cargo hold flouting its own ground handling procedures.&nbsp; There was no check-in of passengers, some of whom were not even employees – even though regulations say only flight and maintenance crew should be on board a maintenance positioning flight. Many brought their own luggage into the plane and stored it unsecured in the cabin. There was no flight attendant to give a safety briefing to passengers. The load and trim charts given to the flight crew were rough estimates, and the total takeoff weight of the plane was 18,300kg plus or minus 200 kg. That would still have been all right, but there was a glaring mistake in the speedchart Saurya pilots were using to calculate the minimum takeoff speed (known as VR), and it had been wrong ever since the 21-year-old aircraft entered service with the airline in 2017. FAULTY DATA&nbsp; The Commission probed Flight Data Recorder inputs from previous takeoffs of the Canadian-built CRJ200-LR in 2023-2024 and found that the undetected error in the speedchart had caused the plane to pitch up at an abnormal rotation rate at least 18 times on previous takeoffs.&nbsp; Any rotation rate more than 3°/sec is regarded as unusual. But on at least two occasions, this aircraft with tail number 9N-AME had rotation rates of 5.8°/sec and 5.5°/sec, the second one was when the pilot who survived was flying in March 2024.&nbsp; On this particular day, the plane’s rotation rate was 6.5°/sec, causing it to go into a deep stall soon after takeoff, the Commission report said. Essentially, the plane was not flying fast enough down the runway to take off safely.&nbsp; It is not yet clear whether excess weight, unsecured luggage, wrong centre of gravity were also factors, but relying on a faulty speedchart for the given takeoff weight, the captain flying pulled back on the yoke before the plane had reached takeoff speed and at a pitch angle that was too steep. The investigation report says the plane then went into a deep stall and started banking right with the stick shaking. At this point, the flight officer on the right hand seat is heard on the cockpit voice recorder saying: “Whoa, whoa, whoa. Sir, Sir, Sir…” It then banked left before the pilot flying turned the plane sharply to the right again in an evasive action to avoid the parking aprons of the international and domestic terminals. Had he not done so, there would have been a disaster of a much greater magnitude at Kathmandu airport that day. The plane scraped the runway with its right wingtip, collided with a container having helicopter spare parts, and plunged into a gully east of the runway, exploding in a fireball. The investigation also noted that the impact forces seemed to be survivable for some occupants. The fire trucks took unnecessarily long to reach the site even though it was inside the airport perimeter. The absence of an ICAO-standard runway strip, inadequate rescue drills, lack of training, and a blocked emergency service gate leading to the crash site were cited as other factors. &nbsp;&nbsp; <h2>Timestamp of a Disaster</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725.jpg" data-media-id="editor_0" data-image-id="20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725" data-rendition-name="original" width="778" height="826" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:10:34 - The Saurya Airlines CRJ200 on the takeoff roll from runway 02. It had a takeoff weight of about 18,300kg, but the pilot’s speedcard had a previously undetected mistake about the minimum takeoff speed. 11:10:55 -The plane with tail number 9N-AME goes into deep stall soon after takeoff because it does not have enough speed to lift its weight. The plane also has an abnormally steep nose-up attitude.&nbsp; 11:11:03 - Without enough speed to generate lift, the plane banks right, then left and right again in CCTV photos taken from the domestic apron (below). If it had not banked right, it could have hit the aprons and terminal buildings. Seen parked is Saurya’s other CRJ200 with tail number 9N-ANM.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd.jpg" data-media-id="editor_1" data-image-id="20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd" data-rendition-name="original" width="770" height="555" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:11:08 - The plane scrapes the runway with its right wingtip, and falls into the gully. The captain is thrown off the left side of the cockpit and survives. 11:11:15: Plane explodes in a fireball inside the airport perimeter. Firefighters take time to reach the site because of lack of access road and a blocked gate. Read the full investigation report <a href="https://www.tourism.gov.np/files/9N-AME%20AIC%20Final%20Report.pdf">here</a>.

Flouting rules caused Saurya tragedy

American artist Peter Makela was in Nepal in 2022 on a Fulbright scholarship when he experienced the Matya festival in Patan in which devotees made the rounds of the city’s shrines.&nbsp;
He joined the procession, walking through 2,600 stupa and 140 bahal of the town. That immersion left a lasting impression.
As part of Gallery Mcube’s international residency program in Patan, he put his inspiration to canvas in the exhibition Yala Yatra: Walking, Working, Worshipping. The exhibition also coincides with this month’s Matya festival.&nbsp;
Makela has visited Nepal often in the past 11 years but he mostly stayed in and spent his time around Boudha. “This time I stayed in Patan, put the sites I wanted to visit on my map, and off I went,” he tells us. “Each of my artwork is inspired by the stupas and shrines in Patan that I visited.”
The stupa and Ganesh are recurring motifs in his watercolours, and the elephant gods are located in chaityas — reflecting the interplay and blending of the Hindu and Buddhist faiths in Kathmandu Valley.&nbsp;
The stupas and Ganesh are painted in vivid red, yellow, blue and green against abstract backgrounds meant to represent the sky.
“I use the sky as a backdrop because the sky has no border,” says Makela. “The four colours represent the four elements, the different Buddha families and also lights bouncing off of a rainbow.”
The use of just four colours for all the artwork stands out, and combined with the absence of heavy canvases, frames or stands render Makela’s art striking in its simplicity.&nbsp;
The Ganesh is always holding something and the art also portrays the elephant god’s sacred vehicle, the mouse.
While his vibrant stupas and Ganesh reflect the tangibility of Patan’s tradition and heritage, it is as if the backdrops with their shades of grey and red and yellow capture the soul of the city’s shrines.
“If you look closely, there is a sense of form and formlessness at the same time,” he says.&nbsp;
Makela walked 108 kora around the shrines during his exploration of the town, and in the process developed a spiritual connection with Patan’s heritage and traditions.&nbsp;
The exhibition connects with visitors on a deeper, more spiritual, level as well. And with it, they feel a sense of pride as well as the need to urgently preserve Patan’s heritage for future generations.
“Peter’s inclination and approach towards Nepali art and culture is fascinating, and it reflects in his work,” says Mcube curator Manish Lal Shrestha, whose international artist residency program promotes Nepal’s cultural heritage. &nbsp;&nbsp;
Yala Yatra: Walking, Working, Worshipping
1-5 August&nbsp;
10AM-7PM
Gallery Mcube, Patan

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Walking, working, worshipping in Patan