<figure><img width="1400" height="1052" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141140/636bae3a9c7e80680e077fdfjpeg.jpg" alt=""/><figcaption>Photo: KUNDA DIXIT</figcaption></figure>Although the Nepal budget this year <a href="https://www.nepalitimes.com/latest/nepal-takes-3-steps-back-on-e-cars/">cut tax breaks for electric vehicles</a> and did not acknowledge a green path to post-COVID economic recovery, Nepal has an opportunity to tap into next-door China’s rapid strides in green financing.  China was first mover among developing countries to put itself on a low carbon trajectory, using <a href="https://www.bloomberg.com/graphics/2019-green-finance/">green finance</a> as one of the main tools, and it has now become the world’s <a href="https://www.cnbc.com/2017/12/26/climate-change-china-is-the-worlds-biggest-green-bond-issuer.html">largest market</a> for carbon credit, green bond markets and investments in a sustainable economy.Being right next door, Nepal could tap into this potential and use its international goodwill in restructuring the country’s economy towards a green transition.<a href="https://www.nepalitimes.com/latest/nepals-chance-to-green-its-budget/">Nepal’s chance to green its budget</a>, Kaustubh DhitalAfter the 2014 <a href="https://obamawhitehouse.archives.gov/the-press-office/2014/11/11/us-china-joint-announcement-climate-change">climate agreement</a> between President Xi Jinping and President Barack Obama alongside the consequent ratification of the Paris Agreement, China has taken a leadership role in global climate governance. Beijing went against the commonly held ‘Common but Differentiated Responsibility (CBDR) framework’, which protected developing countries from taking costly and ambitious climate action that allowed them to opt for voluntary incentives to reduce greenhouse gas emissions. There has been public pressure on the Chinese government to act on worsening air pollution, and China was shamed at the Copenhagen climate summit in 2009 for rising carbon emissions. Since then, there has been strong political will from President Xi Jinping himself that led to China’s U-turn on environmental and climate policies. China also benefited from technocrats and advocacy coalitions to realise the benefits of a green economy. Nepal can learn from <a href="https://unepinquiry.org/publication/establishing-chinas-green-financial-system/">China’s Green Finance Task Group</a> made up of experts from ministries, financial regulators, academics, banks and other financial institutions, complemented by international experts. It was set up in 2014 to help the central government identify barriers and opportunities in green finance.Its recommendations formed a key part of the 2016 ‘Guidelines for Establishing the Green Financial System’ policy document, which sparked rapid development of green finance in China. It makes sense for Nepal to similarly bring together experts from across the industry to design a green financial system appropriate for Nepal. It is equally important for Nepal to step up its climate and green investment reporting alongside the measurement of environmental benefits and climate risk exposure. Presently, Nepal requires financial institutions (FIs) to report on climate/green finance flows and activities. However, the framework does not require FIs to report on climate risk exposure on the portfolio level. Nor does it make environmental and social policies externally verified through independent reviews. Nepal also does not require FIs to calculate the environmental benefits of their investments and any climate risk exposure assessment. <a href="https://www.nepalitimes.com/banner/build-back-greener/">Build back greener</a>, Bishwa Nath Oli, Maheshwar Dhakal and Rudriksha Rai ParajuliAlong with a systematic update of Nepal’s framework, there is much space for capacity building within the country’s banking sector in climate risk exposure methodologies. This is because banks <a href="http://unepinquiry.org/wp-content/uploads/2016/08/Green_Finance_for_Developing_Countries.pdf">play a key role</a> in ‘assessing risks, originating loans, and underwriting the issuance of equities and debts’.Nepal’s membership of the Sustainable Banking Network gives hope for the future of Nepal’s green finance regime. However, international agencies, financial and academic institutions, banks and lobby groups should also facilitate bilateral channels to allow China to play a key role in knowledge transfer and capacity building in Nepal. For example, the Green Finance Leadership Program led by Tsinghua University, focused on technical assistance on green finance to developing country financial regulators could be a starting point. All these ideas could lay the groundwork for Nepal to continue greening its financial system, acknowledging that it is a long and complex process and requires specialised investment vehicles, fiscal and financial support, financial and legal infrastructure moving forward.  Nepal needs to green its economy for several reasons. The financial system is <a href="https://thediplomat.com/2020/04/greening-the-nepali-financial-sector-strike-while-the-iron-is-hot/">dominated by banks</a> with most of their assets invested in the brown sectors such as agriculture, construction, and real estate, all with environmental hazards and high climate risk. According to the <a href="https://germanwatch.org/sites/germanwatch.org/files/20-2-01e%20Global%20Climate%20Risk%20Index%202020_10.pdf">2020 Global Climate Vulnerability Index</a>, Nepal is ranked as the 9th most vulnerable country in the world to the climate crisis. Nepal’s banks have limited knowledge on environmental risk calculations making their investments highly risky – for example in infrastructure downstream from expanding glacial lakes.<a href="https://www.nepalitimes.com/banner/saving-gokyo-from-itself/">Saving Gokyo from itself</a>, Ang Rita SherpaNepal therefore needs to increase the resilience of its economic and financial system not just by incorporating long-term environmental and climate risks, but also safeguarding current investments through green insurance schemes. Presently, the Nepal government has a <a href="https://www.np.undp.org/content/nepal/en/home/library/environment_energy/climate-change-financing-framework.html">framework</a> to catalyse public financing into climate change in the broader context of economic development and government fiscal planning process. However, greening the financial system would provide much-needed incentives for increased private sector investments in sectors such as renewable energy. This would also diversify the portfolio of banks and reduce risks accordingly. An International Finance Corporation (IFC) <a href="https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/climate+business/resources/final+climate+investment+opportunities+in+south+asia+-+an+ifc+analysis">study</a> shows that this would open up investment potential of $46.1 billion by 2030, which the private sector, including multilateral development banks, local and regional financial institutions can tap into (see chart).  <figure><img width="928" height="870" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141140/636bae3d9c7e80680e077fe0jpeg.jpg" alt=""><figcaption>Nepal's Climate Investment Potential broken down by Sectors. Source: IFC 2017</figcaption></figure><a href="https://www.nepalitimes.com/banner/nepal-lockdown-proves-air-quality-can-be-improved/">Nepal lockdown proves air quality can be improved</a>, Sonia AwaleThe 2015 earthquake followed by the <a href="https://scroll.in/article/802653/is-india-really-behind-nepals-economic-blockade">Indian Blockade</a> highlighted the need for Nepal to reduce its energy dependency. In 2017, Kathmandu was <a href="https://thehimalayantimes.com/kathmandu/kathmandu-listed-as-7th-most-polluted-city-in-world/">listed</a> as the 7th most polluted city in the world, resulting in poor health, and increased <a href="https://www.hindawi.com/journals/jeph/2018/1504591/">socio-economic cost</a>. This means Nepal needs to think long-term, realise its potential in hydropower and renewable energy, and demonstrate the financial benefits of investing in green projects. The Rastra Bank has made significant efforts in this transition. The <a href="https://www.sustainablebankingnetwork.org/country/Nepal.html">Sustainable Banking Network</a> reports that Nepal is making progress in developing its green finance system and has evolved from the ‘Preparation’ to ‘Implementation’ stage in recent years (see chart). The guiding force behind this has been the <a href="https://www.ifc.org/wps/wcm/connect/45b458ae-0866-4e37-9a56-23bd672e221f/NEPAL+NRB+ESRM+Guidelines+May2018.pdf?MOD=AJPERES&amp;CVID=mfwNzvB">adoption</a> of the ‘Guidelines on Environmental and Social Risk Management for Banks and Financial Institutions’ by Nepal Rastra Bank in 2018.  <figure><img width="1275" height="655" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141140/636bae409c7e80680e077fe1jpeg.jpg" alt=""><figcaption>SBN Progression Matrix with Assessment Results for Nepal. Source: Sustainable Banking Network, 2019</figcaption></figure>Although Nepal has made significant progress in integrating environmental and social governance, there is much more left to do on climate and green finance. Nepal’s current framework involves inter-agency collaboration between financial supervisors/regulators, industry associations and financial institutions. However, this does not include environmental agencies and ministries, civil society and the media. Reliance on public financing to adapt to climate change is not enough. Because of its climate vulnerability, Nepal needs to urgently green its financial system and leverage private sector financing. Bilateral support and knowledge transfer between China and Nepal could be a good place to start. <a href="https://www.nepalitimes.com/here-now/the-climate-connection-to-covid-19/">Rastraraj Bhandari </a>is pursuing a Masters in Economics and China Studies at the Yenching Academy of Peking University in Beijing.

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Turning green policies into greenbacks

<figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101132/636b74799c7e80680e062398jpeg.jpg" alt=""/><figcaption>Photo : GOPEN RAI/NT ARCHIVE</figcaption></figure>The Sagarmatha National Sambaad held this week was a dress rehearsal for a bigger international event slated for April, Nepal’s own version of Davos. Fittingly, the theme for the national gathering was ‘Climate Change, Mountains and the Future of Humanity’. The title may be grandiose, but that is because at the rate of warming, mass extinction is an imminent threat. Thresholds agreed on in <a href="https://www.nepalitimes.com/editorial/climate-climax/" target="_blank" rel="noopener">Paris in 2015</a>, and forecasts in last year’s <a href="https://www.nepalitimes.com/banner/a-terrifying-assessment-of-himalayan-melting/" target="_blank" rel="noopener">Himalayan Assessment</a> brought out by <a href="https://www.icimod.org/" target="_blank" rel="noopener">ICIMOD</a> may have to be revised because the rate of polar ice melt predicted for 2050 is already beginning to happen.The concentration of CO2 in the atmosphere has risen from 300 parts per million (ppm) at the start of the Industrial Revolution in 1820 to 415ppm today. Cascade effects like the loss of albedo as Arctic ice melts, the undermining of the West Antarctic Ice Shelf by warm ocean currents, methane from melting permafrost in Siberia means global warming is not linear.Greenhouse gas emissions from the mass burning of fossil fuels in the past 200 years have warmed the atmosphere by 1.3oC. Another 1.5oC increase will happen in the next 30 years. And due to a phenomenon called ‘elevation dependent warming’, the Himalayan mountains are expected to warm 0.3oC faster than the rest of the world.<a href="https://www.nepalitimes.com/banner/on-thin-ice-in-the-khumbu/" target="_blank" rel="noopener">Himalayan ice will be nearly gone during this century</a>. The impact on biodiversity, <a href="https://www.nepalitimes.com/here-now/women-in-climate-hot-spots-face-challenges-adapting/" target="_blank" rel="noopener">weather</a>, stability of slopes, society, economics and ultimately politics, will be catastrophic. There is just not enough time to adapt.Which is why it is important for Nepal to take the lead in drawing global attention to the unique crisis faced by the Himalaya, for this does not just affect us but 1.2 billion people living downstream from Asia’s water towers.While global CO2 cutbacks are put on fast-forward, Nepal and other countries in the region need to quickly come up with ways to reduce risk, and to manage the severe disruptions in natural systems that are sure to gain pace in the coming decades.Even without <a href="https://www.nepalitimes.com/editorial/climate-damage/" target="_blank" rel="noopener">the climate crisis</a>, Nepal faces <a href="https://www.nepalitimes.com/banner/nepal-must-prepare-for-climate-migration/" target="_blank" rel="noopener">enormous environmental challenges</a>. Our rivers are ravaged by sand mining, mountains are mauled by excavators, infrastructure is undercutting gains in forestry. Air pollution in urban areas exceed accepted international standards all year round, waste management is a mess, plastic litters the countryside.The climate emergency is happening in parallel with an unprecedented transformation in all spheres of life. Nepal used to be known as a predominantly rural, agriculture-based society. Not anymore.Agriculture now contributes only 27% of the economy. More than 60% of Nepal’s population lives in urban corridors.But 70% of Nepalis still rely on biomass for cooking and heating, which gives us the advantage of being poor – there is still time to leapfrog directly to a green economy, bypassing fossil energy. <img width="500" height="326" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101132/636b747d9c7e80680e062399jpeg.jpg" alt="">The proliferation of <a href="http://archive.nepalitimes.com/news.php?id=19354#.XkKKbdIza70">household biogas plants</a> that has reduced the pressure on forests, but only 3% of the population use it. There is vast untapped potential to extend this, as well as <a href="https://www.nepalitimes.com/banner/this-is-bullshit/">utility-scale biogas plants</a>. Making electricity accessible and affordable will enable more families to switch to electricity for cooking and space heating, reducing our per capita carbon footprint by bringing down LPG imports, as well as improving indoor air quality.It is no use anymore blaming historical emissions by industrialised countries and rising fossil fuel use in neighbouring India and China for melting our mountains. if we do not move towards clean energy ourselves. Cutting air pollution will not just improve our health, but also reduce soot deposition that accelerates glacial melting.There is a tendency in Nepal to blame everything on the climate crisis. Food deficit in the Karnali, outmigration, or floods in the Tarai, pre-date the climate crisis. If we address those structural issues, we as a nation automatically become climate resilient.Nepalis emit only 0.2 tons per capita per year of fossil carbon (Qatar does 40) whatever we do will not make a big dent. Nepal needs to switch to a green economy and renewable energy not to save the planet, but to save our economy from the mounting burden of petroleum imports.We need a government with single-minded focus on creating jobs with renewable energy projects and tourism development In the final analysis, everything rests on improving governance, and setting far-sighted goals and vision to be prepared for this global emergency. <h2>10 years ago this week</h2> An editorial 10 years ago this week delved into people in rural Nepal still dying of easily preventable diseases because of the lack of doctors, hospitals and affordable drugs. Sadly, that editorial could have been written today as the world deals with the coronavirus.Excerpt from <a href="http://archive.nepalitimes.com/issue/489" target="_blank" rel="noopener">Nepali Times #489</a> of 12-18 Feburary 2010:This is still a land where people die of simple, preventable causes. A lung or stomach infection, easily treated by modern medicine, can be fatal in rural Nepal. We know what to do to improve public health. Apart from more work on awareness, the country needs more hospitals and affordable drugs. Half the doctors in Nepal practice inside the country's Ring Road, so more needs to be done to retain them in district hospitals by giving them incentives to do so. <img width="374" height="600" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101132/636b747f9c7e80680e06239ajpeg.jpg" alt="">Diseases like TB, malaria, encephalitis, typhoid, diarrhoea and pneumonia can be treated with drugs. But they are not just medical problems. The root causes of sickness in Nepal are societal discrimination, economic disparity and political neglect. These cannot be treated with medicine.

Declaring an emergency

Imagine a high-end fair trade tea brand from Nepal that has done everything right, with ethical sourcing practices and international certifications. It has built a loyal base of socially conscious, premium customers in an export market and focuses on quality over quantity. Then one day, a government in the export market introduces a new ‘listing criteria’ that requires exporting a certain amount of tea to at least three countries in the past five years. But this was never a numbers game, it was about a niche market of socially responsible tea lovers. Suddenly, fair trade tea companies are restricted from exporting tea to that country. Pretty unfair for the company, for consumers, for the tea sector. More importantly, for tea farmers and families benefiting from fair standards. The overseas labour industry is facing a similar risk as recruiters, including those that have adopted ethical standards, may soon be barred from finding workers for Malaysia. On 27 October, the Malaysian Ministry of Foreign Affairs sent letters to five countries including Nepal, Bangladesh, Burma, Pakistan and India to ‘rationalise the number of licensed private recruitment agencies permitted to facilitate recruitment and placement of workers to Malaysia’.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251030141040_050274dddc6cf10224b0ad9283eec7b3bc3c0acd650543a808a8ea473ecf40db.jpg" data-media-id="editor_0" data-image-id="20251030141040_050274dddc6cf10224b0ad9283eec7b3bc3c0acd650543a808a8ea473ecf40db" data-rendition-name="original" width="961" height="1135" loading="lazy" alt="Malaysia recruitment"></figure>  The letter includes 10 criteria for private recruiting agencies including at least five years of operating experience, deployment of 3,000 workers in the past three years of operation, experience sending workers to at least three countries, a 10,000 sq m office maintained for three years, valid licenses and good conduct certificates, five employer testimonials, and operating their own training and accommodation centres. Two conditions stand out as potentially harmful to Nepal’s ethical recruitment movement. First, although the letter cites a minimum of 3,000 workers, it says three years in the heading and five in the body text. A big enough difference to affect a significant number of recruiters from making the cut, but problematic regardless. Second, the requirement to send workers to at least three countries disproportionately impacts responsible recruiters in Nepal and elsewhere. Turning the selection of workers into a numbers game is dehumanising. Responsible recruiters deprioritise volume, focus on quality of jobs even when business sustainability comes under threat as ethical opportunities that do not require workers to pay any feed and ensure greater transparency are difficult to come by. Sending workers is further impacted by a series of external shocks. For example, in the Malaysian context Nepal banned emigration to Malaysia for two years followed by the Covid pandemic, and then Malaysia’s decision to stop the intake of foreign workers for the last two years.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251030141040_b1b88b3ae2e94c6bc077529ac6f2a4e380a385ee9a22219edfed25067c9d25a1.jpg" data-media-id="editor_1" data-image-id="20251030141040_b1b88b3ae2e94c6bc077529ac6f2a4e380a385ee9a22219edfed25067c9d25a1" data-rendition-name="original" width="595" height="841" loading="lazy" alt="Malaysia recruitment"></figure>   <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251030141040_2cf252908d18aaf09c875002eef2d92ab45897a56b560addd2dc02311725c8a7.jpg" data-media-id="editor_2" data-image-id="20251030141040_2cf252908d18aaf09c875002eef2d92ab45897a56b560addd2dc02311725c8a7" data-rendition-name="original" width="590" height="238" loading="lazy" alt="Malaysia recruitment"></figure>  Many ethical recruiters have focused on Malaysia because it is a more common labour market for responsible recruitment than other destinations like the Gulf. There is no credible justification to why responsible recruiters well regarded by scores of Malaysia-based multinational companies and with decades of experience should be ‘disqualified’ for not diversifying. Finding jobs for Nepalis in new markets is difficult given fierce competition, challenges identifying companies which follow the employer-pays principle, lack of networks and shortcomings in marketing strategies. These factors hit responsible recruiters harder because profit-motivated employers are often unwilling to cover the costs and fees associated with workers’ recruitment. “The volume of deployment does not determine a recruiter’s capability or the quality of services provided,” says Sujit Shrestha of the Nepal Association of Foreign Employment Agencies (NAFEA). Nepal recently scrapped the licensing renewal requirement that mandated sending at least 100 workers a year as it was impractical. The new Malaysian criteria is similar in nature, he added. The ball is now in Nepal’s court at a time when the interim government does not even have designated heads in the Foreign Ministry and the Ministry of Labour, Employment Employment and Social Security. When rumours about the Malaysian action started circulating, NAFEA had raised the issue, but was assured that this was not an attempt to set up a syndicate.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251030141044_83c8a174ef116603f747d1cd254c4d353e8b855a41fb99feec54e701f5fc4c3f.jpg" data-media-id="editor_3" data-image-id="20251030141044_83c8a174ef116603f747d1cd254c4d353e8b855a41fb99feec54e701f5fc4c3f" data-rendition-name="original" width="3456" height="5184" loading="lazy" alt="Malaysia recruitment"></figure>  How will governments and recruiters in other origin countries now respond? There is precedence from Bangladesh. Dhaka-based journalist at the Daily Star, Porimol Palma who says, “Earlier, the Malaysian authorities had selected 101 Bangladeshi recruiters unilaterally, despite Bangladesh’s call for a syndicate-free recruitment mechanism.” Between 2022-2024, 450,000 Bangladeshis were recruited under this system with workers paying between $4,500 and $6,000, even though the legal limit was $750. Palma attributes part of the high fees workers had to pay were for commissions or bribes to recruitment syndicates. Adrian Pereira heads the North South Initiative in Malaysia says: “The criteria seems a bit fishy, as they do not appear to address the actual problems in the the recruitment of foreign workers. Some of the criteria seem to encourage a system of monopoly or syndicate rather than a rights-based approach. Every government has the right to set criteria for recruiters, but conventions and ILO (International Labour Organization) standards on recruitment exist. It looks like we’re back to square one.” Whether migrant origin countries including Bangladesh and Nepal accept the terms sent without reservations or push back in good faith remains to be seen. In an ideal world, a collective stance should put workers’ needs and welfare at the centre. How rational is the proposed ‘rationalising strategy’? What aspects of it are promising to curb recruitment abuse and what merits serious reconsideration? Even if the move from the Malaysian side is well-intentioned to address rampant malpractices migrant workers face, Nepal should deliberate on the conditions set, the collateral damage especially on the responsible actors and small but capable recruiters. Alternate options that might serve everyone better before rushing to respond with a chosen list by 15 November. If the proposal is accepted, how would it be done in a transparent and accountable way? It is noteworthy that Indonesia was not listed even though it has the most workers in Malaysia among the 16 countries that send migrants to Malaysia. The Responsible Business Alliance (RBA), the ILO, the International Organization for Migration (IOM), and certification programs like On the Level (OTL) also need to use their leverage to ensure that recruiters, including those they have trained or certified on ethical recruitment principles, are not penalised. This is more than just about protecting the ethical recruitment movement, but raising even more basic questions: Who can legally be a recruiter in Nepal? There are already obligations like hefty security deposit and minimum office requirements. But requirements to have building facilities with ‘accommodations’ or ‘testing centres’ are not among them. There are 1,150 plus players in Nepal’s recruitment sector, with a few hundred engaged in the Malaysian market. A unilateral selection criteria could risk foul play, or lead to unintended, unfavourable consequences. To be sure, overseas recruitment in Nepal is known for ‘settings’, corruption, dog-eat-dog competition, and collusion. The profiteering is out of control, often at the expense of workers. But the solution does not lie in stifling the industry with criteria like deployment volume, building worker accommodations or expanding office floors. The focus should instead be on enforcing rules and laws in both countries that govern the industry, and the Malaysian labour agreement that has not been renewed since October 2023. Meddling in the industry in ways that harms fair competition and ethical actors means workers suffer. The only issue that should be taking precedence is: how will Malaysia’s 10-point criteria and planned arrangement affect migrant workers? We have seen how for identical Malaysia-based jobs, one worker might pay zero while another pays up to Rs400,000, depending on the employer and recruiter. It is unclear if the 10-point selection criteria rewards the employer. As a longstanding host country for Nepali migrants, Malaysia deserves credit for nurturing the small but growing ethical recruitment industry here. Export-oriented companies in Malaysia need responsible recruitment partners and have mentored recruiters to strengthen their practices and move away from worker-paid models. The business case for ethical recruitment standards has led many recruiters in Nepal to pivot with many now in various stages of transition from traditional to hybrid or purely ethical practices. This progress needs to be acknowledged and built upon. Large, well-networked recruiters with large physical assets and high volume of workers seem to be the winners of Malaysia’s 10-point criteria after two years of waiting for the Malaysian market to reopen. Responsible recruiters endure long periods of minimal or no deployments that threatens their survival. The letter now sitting on the desk of the interim government in Nepal deepens the concern: rather than just failing to recognise or reward responsible recruiters, does the international recruitment market actually punish them? Upasana Khadka heads Migration Lab, a social enterprise aimed at making migration outcomes better for workers and their families. Labour Mobility is a regular column in Nepali Times.

Who gets to recruit for Malaysia?

Public anxiety about immigration has become a powerful political currency across many liberal democracies. In Australia, as elsewhere, legitimate concerns about housing and economic fairness can be, and increasingly are exploited by anti-democratic actors who frame migration not as a policy issue but as a cultural threat.&nbsp;
When these narratives move from online spaces to public rallies, they do more than divide opinion; they erode the social trust and pluralism on which democracy depends. Understanding how populist and far-right movements weaponise migration debates is crucial to recognising the early challenging signs of liberal democracy.
Immigration has become one of the most politically charged issues in Australia, not only because of the numbers but because of its entanglement with cost-of-living pressures, housing shortages, and rent spikes.&nbsp;
The latest Household, Income and Labour Dynamics in Australia (HILDA) <a href="https://www.unimelb.edu.au/newsroom/news/2025/september/how-we-live-latest-hilda-data-gives-insight-into-a-changing-australia">data</a> shows rising household financial stress as Australian households spending more on rent and income tax. These changes likely reflect a mix of economic and policy factors but create a lot of room for people to hold inaccurate and occasionally contradictory attitudes on these issues.&nbsp;
While net overseas migration has started to decline from its post-pandemic peak, public concern remains high, amplified by populist rhetoric. Some surveys have <a href="https://www.theguardian.com/australia-news/2025/feb/04/australians-want-less-migration-but-oppose-cutting-international-student-numbers-study-finds">revealed</a> a nuanced picture: most Australians want lower migration overall but oppose cutting international student numbers, and support targeted skilled migration to address workforce gaps.&nbsp;
As former Home Affairs Minister Clare O’Neil <a href="https://minister.homeaffairs.gov.au/ClareONeil/Pages/how-australia-broke-its-migration-system.aspx">argued</a> in 2023, Australia’s migration system is “broken and un-strategic”, not delivering for business, for migrants, or for the larger population. This is a situation that frustrates both sides of the debate and makes immigration an easy political flashpoint.
The recent <a href="https://marchforaustralia.org/">March for Australia</a> rallies turned these anxieties into street-level mobilisation. Tens of thousands <a href="https://www.bbc.com/news/articles/czjmre371l1o">protested</a> at what they called ‘mass immigration’, while far-right groups seized the opportunity to inject xenophobic slogans and calls for ‘remigration’ into the public space. These demonstrations were not only about visa caps or housing and jobs; they became performances of who is entitled to belong.&nbsp;
When immigration is framed not as a policy question but as a cultural test of Australianness, it risks shrinking the demos, the very community that democracy is meant to represent.
What made the March for Australia so striking was not only its size but its composition. Recent investigative reporting <a href="https://www.theage.com.au/politics/victoria/don-t-mention-hitler-and-you-re-sweet-the-great-march-for-australia-deception-20250909-p5mtlc.html">revealed</a> that neo-Nazi groups were not merely present at the March for Australia rallies but played a role in covertly organising them. They amplified messaging online, coordinated attendance, and sought to mask their involvement to broaden appeal.&nbsp;
This highlights that democratic erosion is rarely spontaneous; it requires actors who deliberately exploit social grievances, mistrust, and polarisation to mobilise anger for their anti-democratic ends. The banners reading ‘<a href="https://www.theguardian.com/commentisfree/2025/sep/01/how-do-i-feel-safe-after-march-for-australia-anti-immigration-protest-ntwnfb">Stop Immigration</a>’ revealed that public hostility towards migrants, <a href="https://www.afr.com/politics/federal/pressure-mounts-for-price-to-apologise-to-indian-australians-20250908-p5mt7x">particularly</a> from the Indo-Pacific, is growing.
For many migrants, these displays are more than conceptual debates about white national identity. They are experienced emotionally. Writing shortly after the rallies, Melbourne-based writer Jafrin Kabir <a href="https://www.theguardian.com/commentisfree/2025/sep/01/how-do-i-feel-safe-after-march-for-australia-anti-immigration-protest-ntwnfb">reflected</a> that she had never felt so foreign on Australian soil. She pays taxes and inflated rents, contributes skills in the national interest, cheers for the Tillies and calls Melbourne “home”, yet suddenly felt unsafe because of the origin and colour of her skin.&nbsp;
Similarly, Chinese national interviewed by media outlet <a href="https://www.scmp.com/news/china/diplomacy/article/3325127/i-feel-insecure-chinese-nationals-australia-blindsided-anti-immigration-marches">reported</a> cancelling weekend plans and feeling “blindsided” by the scale of the marches.
Scapegoating migrants especially in times of economic stress is an age-old phenomenon and is not just limited to Australia. Across the democratic world, from the United States to the UK and parts of Europe, hostility toward migrants and minorities has become a route for anti-democratic forces. Populist actors often <a href="https://www.theguardian.com/australia-news/2025/mar/27/peter-dutton-keeps-blaming-migration-for-the-housing-crisis-but-can-it-really-be-that-simple">use</a> cultural anxiety and demographic change to justify illiberal and undemocratic measures, claiming to restore order while actually dismantling checks and balances.
By analysing democratic decay, scholars like Lydia Khalil at the Lowy Institute, <a href="https://interactives.lowyinstitute.org/features/democratic-erosion/">argue</a> that democracies rarely break down at once. Instead, they incrementally weaken through vicious cycles: declining trust in institutions, entrenched division based on hate, the normalisation of political violence, and the bit by bit removal of norms and guardrails.&nbsp;
Though some of the conditions are present in Australia to be exploited by anti-democratic actors, for example, almost two-thirds of Australians believe their leaders intentionally mislead them, according to the <a href="https://www.edelman.com/au/trust/2025/trust-barometer">2025 Edelman Trust Barometer</a>, &nbsp;but their presence is not determinative.
Australia’s democratic guardrails remain strong: independent courts, transparent elections run by the AEC, and a free press continue to hold power to account. Federalism and active civil society further diffuse power and create space for contestation.&nbsp;
But if public trust continues to erode and social divisions deepen, these safeguards will come under strain. Early recognition and action are crucial to ensure that today’s street-level hostilities do not translate into institutional regression.
Preventing such outcome requires a socially embedded understanding of migration, an understanding that goes beyond simplistic optimistic and pessimistic views. Policy makers should go beyond Push-Pull models, functionalist and neoclassical and historical-structural theories.&nbsp;
Consulting the work done by <a href="https://www.guilford.com/books/The-Age-of-Migration/Haas-Castles-Miller/9781462542895#:~:text=International%20Population%20Movements%20in%20the%20Modern%20World,-Hein%20de%20Haas">Hein de Haas</a> et-el, migration should be conceptualised as an intrinsic part of broader processes of development, social transformation and globalisation rather than a 'problem to be solved'. We need more nuanced views that have an eye for the complexity of migration processes and the diversity of its causes and impacts.
Sohail Akhtar is a Melbourne- based researcher focusing on governance, public policy, and migration. He contributes to Lowy Institute Sydney.
This article was issued by the Toda Peace Institute and is being republished from <a href="https://toda.org/global-outlook/2025/is-street-level-hostility-a-challenge-to-liberal-democracy-reflections-from-australia.html">the original</a> with their permission.

Is street-level hostility a challenge to liberal democracy?

Intricately painted Buddha, Aryatara, Krishna, and Parvati gaze serenely at visitors at the Kathmandu Art Gallery under muted amber lights. Moving from one artful devotion to the next, a quiet, profound connection to the divine envelopes the visitor. This transcends art to the realm of the spiritual. &nbsp; The gallery’s latest exhibition, Masters of Devotion, features art by 22 artists all from Bhaktapur. They also include Ajay Karmacharya, Purna Prasad Hyoju, Nhuche Kaji Bajracharya, Rajani Sinkhwal, Shashi Dhar Sainju, Surya Bahadur Chitrakar and Sundar Sinkhwal from the Khowpa Paubha Chowmi Pucha. Paubha are religious and devotional art depicting deities and mandala that date back to the 7th century, when Newa artists began to paint images of the gods on cloth. For the artists who practice this craft, the art form is as meditative as it is meticulous.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251025041028_de34b51d48bcee50ae391301e2ff1890be7ecba3df7e563537c273818825aad5.jpg" data-media-id="editor_0" data-image-id="20251025041028_de34b51d48bcee50ae391301e2ff1890be7ecba3df7e563537c273818825aad5" data-rendition-name="original" width="1280" height="960" loading="lazy" alt="art review "> </figure>  The exhibition at the newly-opened space Kathmandu Art Gallery coincides with the festival season and is a collection of extravagant works done in mineral and stone colour, sakura and gouache. The vintage art space is located at Babar Mahal Revisited and is a fitting accompaniment to the paubha featured in the exhibit.&nbsp; Sundar Sinkhwal’s vividly painted Harihara is among the more eye-catching works. “Half of the painting is Shiva and half is Vishnu, hence the name Harihar,”explains Sinkhwal. “Together with their consorts Parvati and Laxmi, I have painted Uma-Maheswor and Laxmi-Narayan.” Nandi and Garuda, the vehicles of the two gods, complete the vibrant painting.&nbsp; In contrast, for his piece titled Lakshmi, Sinkhwal shrouds his canvas in dark colours to paint Kuber, the deity revered as the custodian to the wealth in the Hindu pantheon, accompanied by two khyak apparitions —one black, the other white— both mythical creatures in Newari folklore.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251025041032_1bde6de442b742c300bb8c9278ea8886445aa8df47076fd9aa362ce1f8bef903.jpg" data-media-id="editor_1" data-image-id="20251025041032_1bde6de442b742c300bb8c9278ea8886445aa8df47076fd9aa362ce1f8bef903" data-rendition-name="original" width="1280" height="960" loading="lazy" alt="art exhibition"> </figure>  “The black khyak is considered inauspicious, while white ones are a symbol of good luck,” explains Sinkhwal. Purna Prasad Hyoju has used mineral paint on canvas for a powerful depiction of Ardhanareswar, the composite form of Shiva and his consort Parvati.&nbsp; “I drew inspiration from the Newari Swasthani story about the separation of Shiva and Satidevi,” says Hyoju. Legend has it that Shiva, unwilling to part from his consort, reincarnated as a unified dual gender form of himself and Parvati. Hyoju has painted goddess Parvati in bright yellow, in homage to one of her other manifestations, Gauri, which means radiant.&nbsp; Meanwhile, Ratna Gopal Sinkhwal’s Kurkula Devi, done in stone pigment, is radiant on the cotton canvas. “Kurkula Devi is a tantric goddess whose traces are found in the Sadhana Mala,” says Sinkhwal. “The stone pigment is what makes the goddess look like she is gleaming.” One of Sinkhwal’s other works draws from stories in the Mahabharat to depict Bhimsen, Draupadi, Dushasan and Akash Bhairav in confrontation, expressions fierce.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251025041028_72eea52c8504eccb8b3be7cd4cef616dfb8efd821e8b1e1ae8f440f10782be11.jpg" data-media-id="editor_2" data-image-id="20251025041028_72eea52c8504eccb8b3be7cd4cef616dfb8efd821e8b1e1ae8f440f10782be11" data-rendition-name="original" width="1280" height="854" loading="lazy" alt="art exhibition"> </figure>  The opening of the exhibition last week also featured a music session, during which some of the artists sang traditional songs. Their voices joined the rhythm of the madal and melody of the harmonium, adding warmth to the crisp autumn evening.&nbsp; Each painstakingly detailed paubha reflects the artists’ devotion to divinity and mythology, as well as their heritage. Masters of Devotion showcases the work of veritable masters of their craft, and is a must-visit for art connoisseurs and devotees alike. Says the gallery’s Sangeeta Rana Thapa: “It is our honour to celebrate the artists’ work—to stand among pieces that embody both devotion and mastery, and to witness a tradition that continues to inspire us.” Masters of Devotion Kathmandu Art Gallery Baber Mahal Revisited Until 22 November

Artful devotion

<a href="https://myrepublica.nagariknetwork.com/news/dhm-forecasts-above-average-rainfall-and-temperatures-for-2025-monsoon-28-10.html">This year, </a>Madhes Province received less rainfall than was forecast by the &nbsp;Department of Hydrology and Meteorology (DHM), reducing groundwater recharge of shallow aquifers which are the lifeline for domestic use and irrigation.&nbsp; The crisis was serious enough for the government to officially declare a drought emergency during the monsoon, with the province declared a '<a href="https://kathmandupost.com/national/2025/07/23/cabinet-declares-madhesh-province-a-disaster-crisis-zone?">disaster-hit zone</a>' in July.&nbsp; The monsoon scarcity hit farmers hardest, a majority of whom depend on rainfall for agriculture. Data from Dhanusa’s <a href="https://add.madhesh.gov.np/noticefiles/%E0%A4%A7%E0%A4%BE%E0%A4%A8-%E0%A4%B0%E0%A5%8B%E0%A4%AA%E0%A4%BE%E0%A4%87%E0%A4%95%E0%A5%8B-%E0%A4%B5%E0%A4%BF%E0%A4%B5%E0%A4%B0%E0%A4%A3-%E0%A5%A4-1752227917.pdf">Agriculture Development Directorate</a> shows that only 33% paddy plantation was completed by mid July, in comparison to <a href="https://kathmandupost.com/money/2024/07/31/fastest-transplantation-rate-sows-hope-for-bumper-paddy-harvest?">92% planting the same time last year</a>. Only 49% of agricultural land in Nepal is irrigated — farmers in the rest of the arable land rely on rainfall, private wells and groundwater extraction. During the dry seasons and droughts, water insufficient groundwater recharge worsens the water crisis.&nbsp; Nearly 88% of households depend on groundwater in Madhes Province which has about 100,780 shallow tube wells and 60,660 deep tube wells. But in recent times, the tube wells and hand pumps have dried up every year.&nbsp; This shortage disproportionately impacts low income families and small-scale farmers, who have no other alternative to irrigate their land. And because paddy accounts for up to 7% of Nepal’s economy, Madhes’ water crisis is not confined to within the province, but has serious implications on the national economy.&nbsp; Underground water Groundwater extraction for irrigation began in the <a href="https://jvs-nwp.org.np/wp-content/uploads/2018/09/Water-Nepal-A-historical-Perspective.pdf">1970s, </a>shallow and deep tube wells for irrigation were introduced with support from development partners. By the 2021 agriculture census, <a href="https://agricensusnepal.gov.np/upload_file/files/post/1731650149_1221316497_Agriculture%20Census%202021_District%20Summary%20Report_by%20Province.pdf">groundwater irrigated land had increased </a>to 41.7%, up from &nbsp;<a href="https://agricensusnepal.gov.np/upload_file/files/post/1694250757_1312300734_National%20Sample%20Census%20of%20Agriculture%202021_22%20(National%20Report).indd.pdf">29.8% in 2011.</a>&nbsp; A lack of strong policies and regulation to monitor unchecked extraction has meant that with the exception of some parts of Kathmandu Valley, domestic users, subsistence and commercial farmers, restaurants, hotels and industries across Nepal can draw any quantity of groundwater from desired depths and location. While the dependence on drilling for water has risen due to limited expansion of surface water infrastructure, there has been little attention to groundwater recharge. This competing use of groundwater threatens the fundamental right to drinking water.&nbsp; The ecologically sensitive Chure and Bhawar watershed play a crucial role in groundwater recharge. However, deforestation and indiscriminate riverbed mining has severely reduced its recharge potential over the years. In addition, widespread monoculture plantation of fast-growing non-native eucalyptus trees, replacing native sissoo and sal trees has compounded the crisis. Eucalyptus, a water intensive species indigenous to Australia, was introduced in the Bhawar region in 1978 for supplying wood. The Tarai’s recurring water crisis is not only climatic. Years of fragmented planning, inadequate budget allocation for groundwater management, as well as limited intra- and inter-government policies and coordination have contributed to the disaster just as much as droughts and floods caused by changing weather patterns. The United Nations said decades ago disasters are not natural, and they occur when we fail to prepare.&nbsp; Groundwater management is <a href="https://www.opmcm.gov.np/download/%e0%a4%86%e0%a4%af%e0%a5%8b%e0%a4%9c%e0%a4%a8%e0%a4%be-%e0%a4%b5%e0%a4%b0%e0%a5%8d%e0%a4%97%e0%a5%80%e0%a4%95%e0%a4%b0%e0%a4%a3%e0%a4%95%e0%a5%8b-%e0%a4%86%e0%a4%a7%e0%a4%be%e0%a4%b0-%e0%a4%a4/?wpdmdl=8990&amp;refresh=683b8df54ffef1748733429">the shared responsibility of federal, provincial and local</a> governments, but there is a lack of <a href="https://www.iwmi.org/blogs/stakeholders-in-nepal-work-together-to-enhance-collective-action-for-municipal-groundwater-management/">integrated planning, &nbsp;budgeting, data sharing</a>, and collective action for groundwater extraction and recharge.&nbsp; Sustainable groundwater use in the plains requires inclusive and equitable practices that combine water science-informed interventions with a long-term cross-disciplinary approach.&nbsp; Groundwater is mainly available either in shallow unconfined aquifers that are close to the surface and directly linked to rainfall and rivers, and deep confined aquifers between semi permeable or impermeable ground layers. Locating and mapping such aquifers would help us find what depth they lie at, how much water they hold, what we can do to recharge them and how much time recharging would take—enabling sustainable use of groundwater. Construction of surface water projects such as the Sun Kosi Marine Diversion Multipurpose Project, which serves a dual purpose of expanding irrigation and recharging groundwater, must be expedited.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251027071020_a9442084bc412998d3e7417cf0d057cae8a2b98f5e47ac1a8cc0630612ff2a55.jpg" data-media-id="editor_9" data-image-id="20251027071020_a9442084bc412998d3e7417cf0d057cae8a2b98f5e47ac1a8cc0630612ff2a55" data-rendition-name="original" width="1778" height="1000" loading="lazy" alt="Mitigating the Madhes water crisis NT"> <figcaption>Photo: ONION FILMS / IWMI</figcaption> </figure>  Such infrastructure have a conjunctive use recognised by the National Irrigation Master Plan 2019 and the National Irrigation Policy 2023, wherein farmers can rely on canals for irrigation during monsoon and groundwater during dry seasons.&nbsp; Nature-based solutions such as rainwater harvesting, managed aquifer recharge techniques, restoration of wetlands and retention ponds, and floodwater reservoirs, particularly in ecologically sensitive regions like the Chure Bhaban, should be explored. &nbsp; The management of green water — the water stored in soil and vegetation — is equally as critical as that of blue water (rivers, canals, and groundwater). Green water is lost through evapotranspiration, which contributes to nearly half of the rainfall on land. Deforestation, soil degradation, poor land use practices, and loss of wetlands contribute to the disruption of the evapotranspiration cycle, affecting rainfall patterns and groundwater recharge. Solutions Rising temperatures compound this situation by increasing evapotranspiration. Soil water conservation, vegetation cover, wetland restoration, and nature friendly land use practices must therefore be prioritised. Water-efficient technologies and practices including drip irrigation use of sprinklers, mulching, and soil fertility improvement should be scaled up.&nbsp; At the same time, we must promote irrigation techniques and technologies along with crop choices and cropping patterns that give more yield per drop of water so that food production and water conservation go hand in hand. &nbsp; The government provides subsidised electricity for irrigation starting at Rs2.3/unit, some local governments are even supplying power for free. While such subsidies support farmers and increase productivity, &nbsp;it also poses serious risk of over extraction of groundwater.&nbsp; Flat subsidies in electricity or solar irrigation must be replaced by targeted subsidies in order to balance domestic and agricultural needs with ecological conservation. The 2015 <a href="https://kvwsmb.gov.np/public/uploads/board_act_&amp;_rules/rule-1.pdf">directive for groundwater licensing</a> developed per the Drinking Water Management Board Act 2006 for Kathmandu valley prohibits groundwater extraction from shallow aquifers for commercial and industrial uses. The directive also has provisions for licensing, and renewals, and mandates for license holders to contribute to groundwater recharge. The Madhes needs similar context-specific policies to address its groundwater crisis and safeguard water rights. Shallow aquifers in the region should be prioritised for domestic use while <a href="https://link.springer.com/chapter/10.1007/978-981-10-3889-1_11">deep aquifers, which are still underutilised, should be tapped</a> in a sustainable manner for commercial, industrial and large scale irrigation and drinking water projects.&nbsp; While <a href="https://www.frontiersin.org/journals/human-dynamics/articles/10.3389/fhumd.2023.1181734/full">technical solutions</a> are important, they are not enough to solve Madhes’ water crisis. Nepal’s Constitution and the Local Governance Operation Act 2017 empower local governments for water management in their constituencies. But beyond the letter of the law, local units require community tailored groundwater policies, regular groundwater monitoring and up-to-date data, and investment in local recharge initiatives such as retention ponds, restoration of wetlands, and rainwater harvesting. Coordination between all three tiers of government is crucial, particularly among agencies that pertain to drinking water, water resources, irrigation, agriculture, land use, environment, climate change, and urban development. &nbsp; Heeding indigenous knowledge will be crucial to understanding the water crisis in Madhes and initiating solutions that will fit the context and needs of the region. Local engagement in groundwater monitoring can help to create self -aware, accountable, cost effective and participatory groundwater management practices.&nbsp; To ensure water security in Madhes, we thus need inclusive governance, coherent policies, active engagement of citizens, integration of local and indigenous knowledge and a principle of equity that puts people at the centre. &nbsp; Sumitra KC, a policy and governance researcher in natural resources management, is the National Researcher at the International Water Management Institute (IWMI), Nepal. Manohara Khadka, PhD, an expert in natural resources management, gender equality, and social inclusion, is the Country Representative of IWMI, Nepal.

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Is street-level hostility a challenge to liberal democracy?

Artful devotion

Mitigating the Madhes water crisis