<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181120/636be1539c7e80680e083e40jpeg.jpg" alt="" width="1500" height="1001"/><figcaption>Photo: MANISH PAUDEL</figcaption></figure>Nepal has only slightly progressed in the annual overall prosperity rankings this year, but rose 15 steps over the last decade with <a href="https://www.nepalitimes.com/latest/security-reduces-poverty/" target="_blank" rel="noopener noreferrer">substantial improvement in security</a> and social capital. Worldwide, global prosperity was at its highest ever level when Covid-19 struck.The London-based Legatum Institute’s 2020 Prosperity Index released on Tuesday analyses 167 countries around the world on 12 measures in three broad metrics: inclusive societies, open economics and empowered people.With an overall ranking of 114, Nepal still maintains its position of <a href="https://www.nepalitimes.com/latest/nepal-rises-in-prosperity-index/" target="_blank" rel="noopener noreferrer">22nd poorest out of the 29 countries in Asia-Pacific</a>. It has made the most dramatic progress over the last decade in prosperity measures such as safety and security (scoring from 47.2 to 68.5, a jump of 66 points in the global ranking) and social capital (37.5 to 50.5, up 59 position).<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/banner/its-a-rich-mans-world/" target="_blank" rel="noopener noreferrer">It's a rich man's world</a>, Ramesh Kumar<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://archive.nepalitimes.com/article/editorial/Nepal-%20Multidimensional-Poverty-Index,4115" target="_blank" rel="noopener noreferrer">28.6%</a>, EditorialBut this is countered by the fact that there was little to no improvement in the country’s investment environment and enterprise condition, highlighting Nepal’s less than friendly investment climate, further proving that the openness of the economy has stagnated. Nepal’s enterprise condition has fallen by 22 points in the global ranking, from 100th to 122th in the world and 25th in South Asia.There were also minimal gains in economic quality and governance, largely owing to the local elections in 2017, the first one in two decades that led to some grassroots development and accountability in the recent years.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181120/636be1589c7e80680e083e41jpeg.jpg" alt="" width="1654" height="612"><figcaption>Source: THE LEGATUM INSTITUTE</figcaption></figure>As expected there was some healthy development in market access and infrastructure, health, education and living condition of Nepalis but keeping up with the regional trend, Nepal dropped in personal freedom and natural environment measures. While not a major loss in terms of points, these are significant indicators of the changing times.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/banner/nepals-great-income-divide/" target="_blank" rel="noopener noreferrer">Nepal's great income divide</a>, Ramesh Kumar<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/editorial/mind-the-gap-2/" target="_blank" rel="noopener noreferrer">Mind the gap</a>, EditorialPrior to the pandemic, prosperity stood at a record high, with 147 out of 167 countries seeing prosperity rise over the last decade, driven by improved health, education, and living conditions, and more open economies. However, weaker personal freedom and deteriorating governance are holding back further improvements in prosperity.In fact, the improvement seen in the last 12 months had not kept pace with the progress of the previous two years, as Asia-Pacific and Western Europe stalled and North America deteriorated slightly. In addition, stagnating personal freedom and governance around the world is holding back further improvement in prosperity.“There is never a good time for a worldwide health crisis, but if there has to be one, the progress that has been made over the last decade provides emerging nations with a better context in which to tackle it. But the Western world must beware the trap of falling into a mindset of an overdeveloped society, vulnerable to entitlement and complacency,” says CEO of the Legatum Institute Philippa Stroud.She adds: “Never has it been more important for leaders to recognise the holistic nature of prosperity and make strategic choices to further build inclusive societies and more open economies, and to improve the lived experience of all citizens.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181120/636be15b9c7e80680e083e42jpeg.jpg" alt="" width="1352" height="1092"><figcaption>Source: THE LEGATUM INSTITUTE</figcaption></figure>The Index also shows that further growth in global prosperity is being held back by <a href="https://www.nepalitimes.com/editorial/lockdown-crackdown/" target="_blank" rel="noopener noreferrer">stagnating personal freedom and governance</a>. Globally 121 countries had seen a decline in the freedom to speak and access information and 116 had seen a reduction in the freedom to assemble and associate over the past 10 years, and political accountability and executive constraints – which measures the checks and balances on elected governments and their officials – had both weakened.This deterioration is even <a href="https://www.nepalitimes.com/latest/south-asia-tightening-press-controls-amidst-covid-19/" target="_blank" rel="noopener noreferrer">more pronounced in the post Covid era</a> where government across the world have tried to downplay their inability to control the pandemic and rather undermined it in multiple ways, including by withholding vital information and by creating <a href="https://www.nepalitimes.com/latest/covid-19-shrinks-civic-space/" target="_blank" rel="noopener noreferrer">roadblocks for journalists reporting from the frontlines</a>.Decisions that build prosperity and respect freedom and responsibility is crucial to lead world through Covid, says the Legatum Institute urging the leaders globally to hold firm to a holistic view of prosperity and <a href="https://www.nepalitimes.com/opinion/journalism-is-not-a-crime/" target="_blank" rel="noopener noreferrer">the core principles of freedom and responsibility</a> as they respond to the ongoing Covid-19 pandemic.Says Stephen Brien, Director of Policy at the Legatum Institute: “Prosperity is underpinned by an inclusive society, with a strong social contract that protects the fundamental liberties and security of every individual. It is driven by an open economy that harnesses ideas and talent to create sustainable pathways out of poverty. And it is built by empowered people, who play their part in creating a society that promotes wellbeing.”

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Nepal stalls in Prosperity Index

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101120/636b711e9c7e80680e0600b4jpeg.jpg" alt="" width="1400" height="902"/><figcaption>Nepal's great income divide. Photo: BIKRAM RAI</figcaption></figure>Anyone who visits Nepal seeking <a href="https://www.nepalitimes.com/editorial/invest-in-investment/" target="_blank" rel="noopener">investment opportunities</a> will look at two indicators: the first is the exchange rate of the Nepali rupee against major currencies, and the second is the state of the toilet in <a href="https://www.nepalitimes.com/opinion/kathmandu-airport-is-nepal-in-a-microcosm/" target="_blank" rel="noopener">the airport</a> arrival hall.When asked a simple question such as, “How far is Bhaktapur from Thamel?” The answer in kilometers may be easy but it is nearly impossible to answer in units of time. The answer therefore will be, “It depends”. What does it depend on? Well that also depends.In a country where we cannot tell anyone how long it will take to get to the next city, we have the world’s most complex and sophisticated statistics to indicate <a href="https://www.nepalitimes.com/banner/nepals-great-income-divide/" target="_blank" rel="noopener">where Nepal stands</a> on anything and everything compared to the rest of the world.Does this country really need a Human Development Index, a Doing Business Index, a <a href="https://archive.nepalitimes.com/article/editorial/Nepal-%20Multidimensional-Poverty-Index,4115" target="_blank" rel="noopener">Multi-dimensional Poverty Index</a> and many others? How do you monitor and verify so many <a href="https://www.nepalitimes.com/latest/nepal-rises-in-prosperity-index/" target="_blank" rel="noopener">indicators</a>?It is quite obvious that the number of tigers in Chitwan is an indicator for the deer population there, and the grazing area and water available to the deer. <a href="https://www.nepalitimes.com/banner/how-many-tigers-in-nepal/" target="_blank" rel="noopener">The tiger count</a> would serve as a proxy indicator for the state of the environment.The system of conducting a national census was first carried out in the United States in 1790. In Nepal, the first census was conducted in 1911 during the reign of Prime Minister Chandra Shamsher. We are now preparing for the <a href="https://www.nepalitimes.com/banner/nepal-in-the-2020s/" target="_blank" rel="noopener">National Census 2021</a>, which will provide many indicators that will then hopefully be used to set priorities and allocate our scarce financial resources.The reason we cannot say how long it will take to get to Bhaktapur is because of the huge traffic jam at Koteshwor. Is the number of two- and four-wheel vehicles that converge at this junction and many others in the valley an indicator of the failure of seventy years of rural <a href="https://www.nepalitimes.com/banner/how-will-nepal-develop-in-the-next-decade/" target="_blank" rel="noopener">development</a>?Why are people not staying in the villages where the government has been pumping annual budgets for as long as we know?It is very unpopular to tell development experts that rural Nepal does not need another school building because the parents have moved their children to the cities or to India or further afield. Pregnant women move to the nearest urban area with its good maternity health facilities when they are six months into their pregnancies.Two and half billion people will need old-age care globally by 2030 and this indicates that nursing is a good choice of profession. The sizes of different hoarding boards at major street junctions indicate which countries top the list of places to which young Nepalis are aspiring to move. <a href="https://www.nepalitimes.com/banner/why-nepalis-are-flocking-to-okinawa/" target="_blank" rel="noopener">Japan</a> and <a href="https://www.nepalitimes.com/here-now/dead-end-of-the-korean-dream/" target="_blank" rel="noopener">Korea</a> seem to be most popular, and yet these billboards are small compared to the English boarding school signs found all over Nepal.The ruling parties of Nepal have a vision and a mission -- prosperous Nepal, happy Nepalis. Can we agree on three indicators for each and hold politicians accountable to them? And then make sure that each cabinet and parliament session always begins by re-visiting these six indicators and reporting to the citizens on where we stand on each?A problem with statistics is that data can be bent every which way. For example, does the high growth we have seen in the domestic airline business indicate Nepalis are getting rich or that <a href="https://www.nepalitimes.com/banner/nepals-deadly-roads-take-their-toll/" target="_blank" rel="noopener">road travel is risky</a>?Does the growing number of private hospitals indicate wealth or that people are becoming sick? Does the increased forest cover in Nepal indicate that people have internalised conservation or that <a href="https://www.nepalitimes.com/opinion/look-whats-cooking-in-nepal/" target="_blank" rel="noopener">imported LPG</a> and cement have made it redundant to collect firewood and building materials?While GDP per capita is the most popular indicator we use, we know few report their true income. Should income be replaced by the prices of the <a href="https://www.nepalitimes.com/editorial/new-news/" target="_blank" rel="noopener">phones we carry</a> or the size of the TV owned or <a href="https://www.nepalitimes.com/banner/nepals-electric-transport-future-is-here/" target="_blank" rel="noopener">vehicle driven</a>?Indicators are a good management tool, but we often do not like to be held accountable to them. There are too many variables that affect our work and hence the goal post keeps changing. But if we agree that the toilet at the airport is a critical indicator to inspire potential investors, we need to make it functional and impressive.Anil Chitrakar is President of Siddharthinc

Anil Chitrakar

Counting what counts in Nepal

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171144/636936839c7e80680e03fde5jpeg.jpg" alt="" width="1750" height="1182"/>Nepal is one of the top 20 countries in the world with fastest rising prosperity over the last 10 years, a trend to be celebrated by Nepal’s leaders and citizens.Nepal is among middle and low-income Asia-Pacific countries like Indonesia and India which have shown the sharpest improvement in their levels of prosperity in the past decade.The Legatum Prosperity Index tracks prosperity in 149 countries, and its report released last week has good news: global prosperity is at its highest level ever. More countries are becoming prosperous, and more people are living more prosperous lives.The Index also shows that rising wellbeing is linked to rising levels of prosperity. This might sound obvious, but there is a less clear relationship between wealth levels and wellbeing, where rising wealth does not necessarily translate into greater happiness.Prosperity entails much more than wealth, it reaches beyond the financial into the institutional, the judicial, and the wellbeing of the people of a nation – it is about creating an environment where each citizen can reach full potential. A nation is prosperous when it has an open economy, inclusive society, strong institutions and empowered people who are healthy, educated and safe. This leads to higher levels of wellbeing.Our analysis of what the top 20 rising countries have in common shows they all score highly for Safety and Security, one of the nine pillars used to measure prosperity and the key building block for prosperity. Ending war and conflict has proved to be the single most significant contribution to unlocking the prosperity of most rising countries, enabling widespread improvements across all the other pillars of prosperity.Nepal is a good example: having ended a decade long war in 2006 after a peace agreement was signed between Prime Minister Girija Prasad Koirala and Maoist leader Pushpa Kamal Dahal allowing the rebels to join a transitional government.This was an achievement of leadership at a time when war, terrorism and deprivation are rising significantly around the world. The fact that 15 of the 20 rising countries have improved in this pillar illustrates that insecurity from conflict and oppression can and must be overcome, before more broad-based prosperity can be achieved.In the past 12 years after the Comprehensive Peace Accord of November 2006, Nepal has witnessed a transition towards democracy, with the largest rises in the pillars of Personal Freedom, Business Environment, and Education.Within Personal Freedom, the biggest changes have come from the increase in people reporting satisfaction with freedom, and increased tolerance of LGBT rights. This follows legal reforms, such as the anti-discrimination laws, which have been in effect since 2015. In fact, Nepal is the third highest scoring country in Asia-Pacific (after New Zealand and Australia) in the sub-pillar of Social Tolerance.Nepal’s weakest pillar, however, is the deterioration of the natural environment with pressure on nature – in fact Nepal scores nearly at the bottom of the countries surveyed in terms of urban air pollution. There are also problems with labour market flexibility, anti-monopoly policies and health outcomes.Two countries in Asia Pacific exemplify the significant increase in economic wellbeing and prosperity: China and India. In the last decade, both countries have lifted huge numbers of people out of absolute poverty and have created economies that are growing much faster than those in the West, moving up eleven and six places respectively since 2007.Both countries, and the region more generally, are home to a growing middle class, who increasingly expect a higher standard of living, from the basics such as running water and electricity, to internet access and motor cars. However, there are significant differences in the way that they govern and the levels of freedom enjoyed by the citizens of these countries.My ambition for the Prosperity Index is that it becomes a tool for leaders around the world to help set their agendas for growth and development. The measurement of national prosperity is an important task for governments and for those who hold them to account.Nepal exemplifies that Safety and Security is a foundation of any successful nation-building and enables other pillars to follow.Baroness Philippa Stroud is the CEO of the UK-based Legatum Institute.

Security reduces poverty

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

Visit Nepal in the monsoon

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

Nepal’s bubble economy

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

Flouting rules caused Saurya tragedy

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