<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410118/637205999c7e80680e0b28c6jpeg.jpg" alt="" width="1920" height="1080"/><figcaption>When the only ambulance in Diprung Chuichumma could not attend to all the emergencies, Chair Bhupendra Rai himself drove the infected to health centres.</figcaption></figure>KhotangLast year, as Nepal plunged headlong into <a href="https://www.nepalitimes.com/banner/the-real-cost-of-nepals-second-wave/" target="_blank" rel="noopener noreferrer">the second wave</a> of Covid-19, cities around the country including Kathmandu Valley announced lockdowns, and people of Diprung Chuichumma Rural Municipality of Khotang streamed back home.The people were home, but they also brought the virus with them. The only ambulance in the municipality could not attend to all the emergencies, so Chair Bhupendra Rai donned a PPE and started driving the infected to the health centre in his own car. Sometimes, he would go door-to-door carrying patients on his back to the car.The municipality set up a 25-bed isolation centre, ramped up awareness campaigns, and carried out antigen tests. Vice-chair Sapana Rai was equally involved. Those who couldn’t be treated inside the municipality were taken to hospitals in Kathmandu and  Biratnagar.“We entered politics for the people. So, when they were suffering, we couldn’t just sit back and relax, we had to be hands-on in serving them and taking the lead from the front,” Bhupendra Rai told us on the phone from Khotang as he waits for word on <a href="https://www.nepalitimes.com/banner/dance-of-democracy/" target="_blank" rel="noopener noreferrer">the date for local elections slated for April</a>.This <a href="https://www.nepalitimes.com/latest/nepals-local-governments-lead-from-the-front/" target="_blank" rel="noopener noreferrer">local government team was proof</a> that elected grassroots politicians understand the need of their area, are more accountable, and are willing to serve their constituents.The Omicron surge is spreading, but this time there are not as many cases of Covid-19 in the village. But the Rais are not taking any chances. The municipality has increased the number of antigen tests and encouraged the infected to isolate at home.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410118/6372059c9c7e80680e0b28c7jpeg.jpg" alt="" width="2048" height="1152"><figcaption> </figcaption></figure>Kathmandu may have a shortage of cetamol painkillers, but there is plenty stockpiled here to meet villagers’ needs. And the municipality has deployed health volunteers to accelerate the vaccination drive.“Whoever could walk to the centre are all vaccinated, now we need to reach those who cannot come on their own,” says Rai.As schools nationwide remained closed during the lockdown, the municipality deployed more than 200 teachers with masks on who went house-to-house tutoring students. It also bought produce from local farmers who could not take it to market due to the lockdown and distributed to needy families. This ensured food security as well as income for the local farmers.When Bhupendra Rai was elected in 2017, there were not enough roads in his rural municipality. Every monsoon, the constituency would be locked in as the Sunkosi and Sapsi river flooded. Today, a motorable bridge connects this remote village to the rest of the country. Every household has electricity and access to drinking water.“All this would not have been possible without the local elections and local representatives in place, it forced us to perform,” says Rai.Tehrathum<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410118/6372059f9c7e80680e0b28c8jpeg.jpg" alt="" width="2048" height="1149"><figcaption> </figcaption></figure>To the east in Laligurans Municpality, Tehrathum Mayor Arjun Mabuhang also worked on connectivity as soon as he got elected five years ago. Having seen <a href="https://www.nepalitimes.com/uncategorized/elected-contractors/">rampant corruption in road contracts</a>, Mabuhang got the municipality to buy its own excavators to build roads with the help of locals, cancelling out middlemen.“Now all the wards have roads and there is ownership amongst the people because they themselves were involved in building them,” says Mabuhang.He also introduced a program to upgrade agriculture by supporting dairy farmers and offering grants for vegetable and fruit farming, poultry, and pig farms. The roads helped get the produce to market.Says the mayor: “Because I am from here and I myself have seen the ground reality and know what the people here need, I work in the areas that benefit the people most. We did what we could with the budget we were given, but we need to work more on improving schools.”Sindhupalchok<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410118/637205a39c7e80680e0b28c9jpeg.jpg" alt="" width="960" height="720"><figcaption> </figcaption></figure>In Sindhupalchok’s Jugal Rural Municipality, Deputy Chair Srijana Tamang has been single-mindedly working on improving education. As a child, she remembers walking for hours from home to school and back. In winter night fell quickly on her way home, and during the monsoon she would be covered from head to toe in leeches.When she was elected five years ago, one of the first things Tamang and Chair Hom Narayan Shrestha worked on was to appoint new teachers and upgrade school buildings, some of them destroyed in the earthquake.Having worked as a social worker in the past, Tamang recognised the priority areas for her rural municipality, and her background and familiarity with the people helped her not only gain an edge during the elections but prepared her to deal with the problems of her community.“When I was elected, I really wanted to prioritise roads and education, but <a href="https://www.nepalitimes.com/latest/rural-nepal-fights-back-covid-19/" target="_blank" rel="noopener noreferrer">the pandemic meant we had to address more urgent issues</a>,” adds Tamang, who offered RT PCR testing and monitored the spread of the disease, turning a local school into an isolation centre. With Omicron, Tamang believes the people are more aware, and better prepared.“The pandemic was the first big challenge for me as a local representative,” says Tamang. “But knowing that we are working for our people and our families, there is always a greater sense of responsibility.”In 2020, while Tamang was away on official business, a <a href="https://www.nepalitimes.com/here-now/deadly-monsoon-in-nepal-turns-deadlier/" target="_blank" rel="noopener noreferrer">massive landslide at Lidi</a> killed 39. She travelled overnight to help with the rescue and relief effort and got support to rehabilitate those made homeless. She got geologists to prepare a disaster risk map of her municipality to prevent future disasters, and prepare for them.Jhapa<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410118/637205a69c7e80680e0b28cajpeg.jpg" alt="" width="2048" height="1536"><figcaption> </figcaption></figure>Jhapa’s, Kamal Rural Municipality has the distinction of being among <a href="https://www.himalkhabar.com/news/125595?fbclid=IwAR1g00nElAMlIzStd-FiN7M-f6PZ1H3KQXE6V0f8Y4ztDNxclOSJ9KWQPZs" target="_blank" rel="noopener noreferrer">four of the 753 municipalities around the country ranked cleanest</a> in budget disbursement by the Office of Auditor General. It is a well-deserved recognition for Chair Menuka Kafle for whom tackling leakage and corruption was a priority.For any project with a budget over Rs5 million, the municipality went through a strict tender process. It also stopped giving out advances for projects and kept track of expenditure.“For the others to follow the rules, we had to lead by example, so we made sure that we were meticulous about accounting,” says Kafle.Over the last five years, the rural municipality has constructed more than 70km of roads, upgraded bridges, and ensured that all wards have electricity. Kafle distributed carts to women fruit and vegetable vendors and launched income generation activities for women.“When women are economically independent, they don’t have to depend on others and can make their own decisions,” says Kafle.The municipality offered cash incentives to encourage pregnant women to visit health centres for regular check-ups and registration of new-borns. When Kafle first got elected, many people in the community <a href="https://www.nepalitimes.com/latest/is-democracy-too-expensive-for-nepal/">did not believe that a woman could run the office</a>.During important meetings people would ignore her and seek out the male Deputy Chair. These days Kafle is in high demand.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410118/637205a99c7e80680e0b28cbjpeg.jpg" alt="" width="1080" height="486">Says Kafle: “We women who are in power have to work hard to build trust in the community and do everything within our power so that women who come after us don’t face so much difficulty.”

Sahina Shrestha

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

1250x600

1084x550

All politics is local

May 2017 was a milestone in Nepal’s transition from a unitary system to a federal state, but a year since <a href="http://archive.nepalitimes.com/page/political-power-of-the-ballot-local-elections-nepal" target="_blank" rel="noopener">locally elected representatives took office</a>, the process of devolution to sub-national governments has been slow. New administrative requirements have created confusion over the roles and responsibilities in the three tiers of government. Despite this, elected local governments remain determined to govern while managing public expectations to deliver campaign commitments. How well local leaders negotiate and handle pressures of unmet expectations will impact the political ecology of this transition, either leading to a favourable outcome or running the risk of failure.While the constitutional mandate is clear, competing roles and the absence of consistent political will have caused uncertainties to persist. Mechanisms designed to settle disputes between layers of government have not yet been fully utilised, leaving room for bitter contestation. The continuation of this policy and structural vacuum means that chief ministers, mayors and ward chiefs use decentralisation to negotiate for more power, while lacking knowledge and capacity to govern effectively.Conversely, the exercise of legislative powers at the sub-national level has led to a backlash, delimiting the actual authority given to local governments. The series of federal directives sent to elected local governments discouraging drafting of local legislation is proof of this.Meanwhile, priorities and needs have begun to expand and multiply, signaling an end to the honeymoon period for elected representatives. Local governments are now under increasing pressure to administer their responsibilities and provide essential services to constituents. Read also: <a href="https://www.nepalitimes.com/?p=13560&amp;preview=true" target="_blank" rel="noopener">Grassroots democracy is delivering development</a> <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="http://archive.nepalitimes.com/article/nation/trial-error-democracy,3713" target="_blank" rel="noopener">Trial and error democracy</a>, Om Astha Rai Coalitions within local executives have fostered democratic practices in local governments in some areas. In others, conflict and collusion have plagued the system, chipping away at the quality of service delivery. There are conflicts of interest, nepotism, arbitrary decision-making and misappropriations of grants. There is an ongoing struggle to exercise autonomy as local governments attempt to establish new lines of power. A clear example is the recent controversy over the <a href="https://www.nepalitimes.com/from-the-nepali-press/taxman-cometh/" target="_blank" rel="noopener">tax increase by provincial and local governments</a>, which want to assert their powers defined in Schedule 8 of the Constitution to raise revenue. With the current budget allocations insufficient to meet the mandate to govern, elected representatives are looking to other avenues. The taxes have created an uproar in the private sector, however, which is concerned about double taxation and misuse of power. Tax hikes ultimately affect the public, which has to bear the additional costs of goods and services. Although the Federal Parliament has directed the government to look into tax increases, the National Natural Resources Fiscal Commission (NNRFC) is yet to be formally established. Nonetheless, Nepal’s first <a href="https://www.nepalitimes.com/latest/privatisation-failed-khatiwada/" target="_blank" rel="noopener">federal budget 2018-2019</a>, presented in May, represents a significant departure in budgeting and planning processes carried out under the previous unitary system. This important policy instrument illustrates priorities of the elected government and the decisions taken to fulfill constitutional responsibilities. More importantly, it now includes resource allocations to sub-national governments. For the first time, local assemblies took part in the formulation of budgeting and planning needs. Other important markers of progress include the completion of the Organisation &amp; Management (O&amp;M) Survey to recommend the necessary requirements of Federal and Provincial government civil service needs. The O&amp;M survey for local governments is ongoing and once finished, it will establish organisation structures and staffing needs for local governments not yet fully functional. However, to what extent this will restructure the bureaucracy to adopt a bottom-up approach to service the three-tiered federation remains to be seen. Read also: <a href="http://archive.nepalitimes.com/article/editorial/political-cartel-trying-to-back-pedal-on-devolution,3813" target="_blank" rel="noopener">Devolution Revolution</a>, Editorial<a href="http://archive.nepalitimes.com/blogs/thebrief/2017/08/01/federalism-in-jeopardy/" target="_blank" rel="noopener">Federalism in jeopardy</a>, Iain Payne and Binayak BasnyatThe merger of the <a href="https://www.nepalitimes.com/here-now/one-body-two-heads/" target="_blank" rel="noopener">UCPN and UML</a> marked a significant milestone in political restructuring and consolidation of power across three levels of government. The realignment of political positions and interests signals a shift towards adaptation to a new architecture of a federal republic. Despite this, the current structure still exhibits and reinforces a patronage culture reminiscent of a unitary state. While a strong national majority government does provide significant benefits in terms of stability and decision-making power, the results of devolution will depend on the transformation of political parties. Institutional growth and reform are a prerequisite if there is to be a departure from the traditional decentralisation of the 1990s. This is critical to re-engineer accountability channels that were previously centralised and hierarchical.Elected representatives heading judicial committees are trying to meet the high expectations of their constituents on one hand, while navigating the complexities of deciding on a just result amid competing economic, social, political and legal forces on the other. This raises fears that the poor and marginalised will continue to be ostracised, politicisation and corruption will continue to persist, and access to justice will continue to be difficult. Having an elected representation in a federal system after two decades is a real opportunity to deepen and institutionalise democratic practice in the 753 local governments. Institutional arrangements between the multi-tiered forms of government will determine the relationships, which will have to endure as power struggles define the boundaries of shared rule and self-rule. State and non-state actors, which have little history of cooperation, and who are suspicious of each other, must forge new ways of working together. Read also: <a href="http://archive.nepalitimes.com/regular-columns/The-gadfly/ensuring-proportional-representation-without-federalism,435" target="_blank" rel="noopener">Devolution without federalism</a>, David Seddon<a href="https://www.nepalitimes.com/here-now/share-rule-and-self-rule/" target="_blank" rel="noopener">Shre rule and self rule</a>, George VargheseAshray Pande and Namit Wagley are Program Officers at the Asia Foundation in Kathmandu.The views and opinions expressed here are those of the authors and not those of The Asia Foundation or its funders.

Federalism's birth pangs or death rattle?

<img width="1400" height="1050" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107161120/6369229f9c7e80680e03a13bjpeg.jpg" alt=""/>In the three decades after 1960 when political parties were banned, there were Village Panchayats. After the democratic changes in 1990, they were called Village Development Committees (VDCs) of which there were nearly 4,000 all over the country. In the new Constitution, VDCs have been merged into 460 Rural Municipalities (Gaunpalika).Whatever the name they go by, elected village councils in Nepal have been at the grassroots of democracy and development. After last year's elections, the new municipalities are asserting themselves.Dhan Bahadur Thapa Magar is 87, and old enough to remember the time he was elected to head the Village Panchayat of Chure village of Kailali in Province 7. He says: “There is now a lot more development budget than in the past. Combined with local surplus budget, villages can speed up their own development provided the budget is not misused.” VDCs used to get annual grants of Rs2 million for development from Kathmandu. Today, rural municipalities get up to Rs200 million and it includes three types of budgets provided by the central and provincial governments: conditional, lump-sum and matching funds. If the development budget of three former VDCs combined was Rs 6million, as a single rural municipality, it would now gets up to five times more.Read also: <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=13549&amp;preview=true" target="_blank" rel="noopener">Federalism's Birth pangs or Death Rattle?</a><a href="http://archive.nepalitimes.com/news.php?id=6256#.W6N5VM4zbIU" target="_blank" rel="noopener">Devolution, not revolution</a>, Alok Bohara <img width="1400" height="1050" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107161120/636922a29c7e80680e03a13cjpeg.jpg" alt="">“In my Gaupalika, in the last fiscal year, the total budget received was about Rs300 million. Of this, one third went into overheads,” says Hem Raj Joshi, Chief Administrative Office of Chure village. “The rest was development budget, and the municipality could not spend the conditional budget because it could not come up with specific projects.” The main challenge for village councils has been the lack of capacity for participatory development planning as demanded by constituents. Additionally, the inability to spend the allocated conditional development budget has made it difficult to allocate resources for health, education, energy, or for women or marginalised groups. “In my village, I set aside money for women’s income generation activities last fiscal year, and informed the women to make use of it by coming up with a project proposal, but did not get a single proposal,” says Urmila Thami KC of the Jugu Village. She is vice chair of Gaurishankar rural municipality in Dolakha district. The question now is: are local governments really equipped to deliver development?  “The people have to be active and make the local authorities accountable, and development will definitely happen,” says Dhan Bahadur Thapa Magar, the former Village Panchayat head. Read also: <a href="http://archive.nepalitimes.com/regular-columns/guest-editorial/radio-sagarmatha-anniversary-resuscitating-democracy-guest-editorial,912" target="_blank" rel="noopener">Revolution through devolution</a>, Bharat Dutta Koirala<a href="http://archive.nepalitimes.com/article/nation/power-centre,4041" target="_blank" rel="noopener">Power Centre</a>, Om Astha RaiIn remote <a href="https://www.nepalitimes.com/banner/from-nowhere-to-nowhere/?utm_source=rss&amp;utm_medium=rss" target="_blank" rel="noopener">Bajhang district</a> in western Nepal, there are still rural municipalities like Saipal where the nearest road head is two days walk away. On a recent flight from Dhangadi to Kathmandu, the chair of Saipal Rajendra Dhami said proudly: “With the development budget we got last fiscal year, we built two micro-hydros of 22 kilowatts, each which has electrified two wards in the municipality. We promised it to the people, and we delivered.”In the first fiscal year 2017/18 since rural municipality councils were elected, an estimated 90% of the budget has been spent on infrastructure, mainly roads. There have been media reports of the roads being the result of misuse of funds and corruption, but it is also true that people want roads and there is pressure on elected officials to deliver.“As farmers in remote gaupalika, we need roads and irrigation first,” says Jogendra Thakur in Sarlahi district of Province 2. Indeed, a road to Dalit communities in the village opened up the area to development and provided access to market. It is better than distributing a goat or sewing machine.Several generations of Nepalis have been made guinea pigs to test out development fads by donors, experts, scholars, NGOs and INGOS. Yet, after more than 60 years, there was still no clear path to development. Under federalism, however, locally elected officials have found a way to give citizens a voice in spelling out their priorities directly to elected officials. Finally, they can identify and demand the kind of development they need, and force elected officials to be accountable and deliver on promises. Read also: <a href="http://archive.nepalitimes.com/news.php?id=15160#.W6N5aM4zbIU" target="_blank" rel="noopener">Power to the people</a>, Mallika Aryal<a href="http://archive.nepalitimes.com/regular-columns/GUEST-COLUMN/Syndicated,108" target="_blank" rel="noopener">Syndicated federation</a>, Bihari K Shresth

Grassroots democracy is delivering development

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

French citizen Louis arrived in Nepal for the first time earlier this year, planning to <a href="https://nepalitimes.com/banner/the-abcs-of-a-winter-trek-in-nepal">trek the Annapurna Circuit </a>before heading down to Bardia to hopefully catch a glimpse of some<a href="https://nepalitimes.com/news/nepal-counting-its-tigers"> tigers</a>. Before he began his journey from Besisahar, Louis (who only revealed his first name) had imagined breathing crisp mountain air, and following the melodious gurgle of the Marsyangdi.&nbsp; Instead, he had to breathe fumes and dust all the way to Chame. Louis says he masked his face with a handkerchief: “It was not what I expected, this is not right.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080304080_f03fce1527cf8a63178e4e82589a1a7096c8cfa28893ca4a5f7fe82d91a6e38a.jpg" data-media-id="editor_2" data-image-id="2025080304080_f03fce1527cf8a63178e4e82589a1a7096c8cfa28893ca4a5f7fe82d91a6e38a" data-rendition-name="original" width="2419" height="1814" loading="lazy" alt="Manang trails NT 1"> </figure>  Many other trekkers are similarly disappointed as roads have been built along what used to be <a href="https://nepalitimes.com/banner/a-walk-back-in-time-chandragiri-hatiban">walking trails</a>. Manang and Humla are the last remote regions in the Himalaya to be connected to the national road network. &nbsp;Construction of the 87km Besisahar-Manang road began in 1994, but was stalled during <a href="https://nepalitimes.com/news/14-years-after-conflict-no-closure-in-nepal">the Maoist conflic</a>t, and finally finished in 2012.&nbsp; Most of it has not yet been blacktopped, and sections have been carved out of vertical cliff faces, making them treacherous. But it has allowed road access to Manang, a journey that previously took a week on foot.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080304084_32b3ca875a0df9f1dd42dbe915e6f6a2cd4f2e53f1cf2d3ee5cbdb3435905000.jpg" data-media-id="editor_5" data-image-id="2025080304084_32b3ca875a0df9f1dd42dbe915e6f6a2cd4f2e53f1cf2d3ee5cbdb3435905000" data-rendition-name="original" width="2400" height="1505" loading="lazy" alt="Manang trails NT 1"> </figure>  While the <a href="https://nepalitimes.com/opinion/the-road-out-of-nepal">road has improved access</a>, it has impacted on<a href="https://nepalitimes.com/here-now/trekking-in-the-time-of-climate-change"> trekking tourism </a>— the mainstay of Manang’s economy. The number of tourists visiting the scenic valley behind the Annapurnas grew from 21,245 in 2023 to 30,866 in 2024. The Annapurna Circuit is known for unique sights like <a href="https://archive.nepalitimes.com/news.php?id=9194">Tilicho</a>, one of the highest lakes in the world, the Thorong La pass that connects Manang to Mustang, and the valley’s own rich cultural heritage. Thorong La at 5,416m is the highest hiking pass in the world, and was used by locals for trade with Mustang before it became a <a href="https://nepalitimes.com/opinion/comment/lift-restrictions-on-upper-mustang">popular trekking route</a>. &nbsp; “For guests, the excitement of reaching Thorong La is now overshadowed by their disappointment of having to journey through dusty roads to get there,” says Manang lodge-owner Ongma Gurung. “That is the complaint we get the most.” <a href="https://nepalitimes.com/banner/tourism-that-treads-lightly-on-the-land">Local tourism </a>operators are trying to get the government to build alternative foot trails. But there have been delays due to a lack of budget.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080304084_c5f76e398182785bb17846a148e3ca89de5687b4623580f8e2d725a7a287edfa.jpg" data-media-id="editor_11" data-image-id="2025080304084_c5f76e398182785bb17846a148e3ca89de5687b4623580f8e2d725a7a287edfa" data-rendition-name="original" width="2419" height="1762" loading="lazy" alt="Manang trails"> </figure>  The Naso Rural Municipality has identified other routes along the Annapurna Circuit in Chyamche, Tal, and Khotro so trekkers can bypass heavy vehicles involved in the construction of the Manang-Marsyangdi Hydropower Project. “But the local government cannot do everything,” admits the chair Dhan Bahadur Gurung. “And for leaders in Kathmandu, Manang is out of sight and out of mind.” Munindra Jung Gurung represents Manang in the Gandaki Provincial Assembly, and says he has raised the issue in <a href="https://nepalitimes.com/news/pokhara-s-tourism-woes">Pokhara</a>. He is hopeful there will be a hearing. To be sure, the road is not all bad news. Locals benefit, the number of visitors has grown, and trekkers can now also save time and use it to explore <a href="https://archive.nepalitimes.com/news.php?id=5960">side valleys in Manang</a>, visiting the villages like Nar and Phu. Annapurna Conservation Area (ACA) chief Rabin Kadariya concedes that the road to Upper Manang was crucial to connect the remote region with the rest of Nepal, but adds: “We have built an alternative trail connecting Talgaun, and we will consult local communities about their priorities on other hiking trails.”&nbsp;