President of the Confederation of Nepalese Industries (CNI) Rajesh Kumar Agrawal declared last week that the economy was in a deep recession. But others cite record high remittances and foreign exchange reserves to say there is no cause for alarm. &nbsp;
Whom to believe? Both sides are right. The external sector of the economy is sound, but jobs are down and so is domestic demand and economic activities are. There is no domestic and foreign investment.
“Looking at our macroeconomic indicators, we most certainly aren’t heading towards a recession,” says Ishwori Prasad Bhandari of the National Statistics Office. “We are, however, experiencing a slow growth rate."
Unlike what many had predicted last year, Nepal has not gone down like Sri Lanka. Foreign reserves have climbed to $11.85 billion, enough to cover imports for more than 10 months. Nepalis sent home Rs116.2 billion in just the last month, a record and 26% up from the same month in 2022. And that is just through official channels.&nbsp;
After nearly 34 months, the current account deficit is on firmer ground. And the Asian Development Bank this week projected that the economic growth rate this year will bounce back to 4.3% from 1.9% % last year.
Read also: <a href="https://nepalitimes.com/news/state-of-the-state">State of the state</a>, Kunda Dixit
The inflation rate also dropped to 7.52% in July, down from 8.26% at the same time last year mainly because of lower fuel prices and lower inflation in India.&nbsp;
There are no figures for unemployment, but since about 1 million Nepalis left for overseas jobs and work-study in 2022-23, the picture is not rosy.
On the import side, demand declined first because of the pandemic and later government-imposed ban on luxury goods. Imports three years ago were down to Rs1.54 trillion only for it to bounce back a year later by nearly 25% once the restrictions were removed.
The decline in demand can also be credited to a slowdown in construction and infrastructure projects. Much of the reconstruction after the 2015 earthquake is complete, and so is new infrastructure for new local and provincial governments. This has led to a decline in demand for cement and other building materials.
The growth rate of bank loans has shrunk to 4.6% which many saw as a reluctance of industries to invest. But higher interest rates in the past have not necessarily resulted in economic growth, production, or jobs.
Read also: <a href="https://www.nepalitimes.com/here-now/state-sponsored-economic-crisis-ikcxxmnp">State-sponsored economic crisis</a>, Ramesh Kumar
Due to the rapid growth of credit, the ratio of credit to the private sector has exceeded 91% of Nepal’s GDP, which is the highest in South Asia. Some experts credit this for the natural slump.
“After seeing an increase of 26% a year, it is only natural for the loan growth rate to decline,” says former banker Parshuram Kunwar Chhetri. “Credit growth can fluctuate when the economy does, it does not always increase at the same pace.”
Loans are starting to see an increase. Last month the figure stood at Rs44.15 billion which is double the amount in the same period last year.
“The economy went into decline, but did not collapse,” concludes Chhetri. “But the Central Bank could lower interest rates, relax the limit of Rs10.2 million imposed on the stock market and increase capital expenditure to boost the morale of the private sector.”
Former Finance Secretary Rameshore Khanal argues that just because some shops have closed down it does not mean that the economy is on the verge of collapse. “A lull in market and consumption have changed leading to some businesses experiencing difficulties. But other businesses have sprung up. This is a natural trend.”&nbsp;
Read also: <a href="https://www.nepalitimes.com/news/till-debt-do-us-part">Till debt do us part</a>, Ramesh Kumar
Indeed, much business has shifted to digital platforms since the Covid pandemic. Just last month, mobile banking accounted for Rs243 billion, up from Rs73 billion two years ago.
“If it was a real recession, people would stop buying home appliances but here during the NADA auto show this year, there was a record high transaction worth Rs20 billion,” says Khanal.
So why are businesses trying to make it look like we are facing the Great Depression?
Experts say businesses are exaggerating the recession narrative to influence policy so they can get away with not paying high interest rates on loans taken earlier.&nbsp;
Read also: <a href="https://www.nepalitimes.com/editorial/institutionalised-inequality">Institutionalised inequality</a>, Editorial
“This problem arose in the first place due to the flow of cheap loans,” explains Shivraj Adhikari of Tribhuvan University. “And what we have now is the business community trying to create a policy trap by demanding concessions on their unpaid loans.”
But this is not to say that all is hunky dory. Much of the remittances are spent on unproductive sectors when they should have gone into job creation, renewable businesses, and manufacturing. Nepal also needs to increase its capital expenditure.
Says Nepal Rastra Bank’s Prakash Kumar Shrestha: “There are structural problems from the past and we will need major reforms to speed up the economy. Business as usual and only relying on the real estate and stock market for growth will not be enough.”
Read also: <a href="https://nepalitimes.com/here-now/cost-of-living-in-a-big-city">Cost of living in a big city</a>, Ramesh Kumar

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Business as unusual

Bidhya Chapagain left a secure job in journalism in which she has already become a household name in Nepal to venture out to fulfil her passion in journalism -- to give a voice to those who have been deprived of it. She started her own video production group to go around the country to talk to people whom journalists never bothered to report about. The stories she brought out were so important in shining the light on a Nepal that was invisible to Kathmandu that it became most-seen on YouTube and other social media. “I was living my journalism dream at the BBC, but as I travelled for work and saw that we were telling the same stories of the same people, I realised that this was not my dream," said Chapagain during her conversation with Rajneesh Bahndari of Nepal Investigative Multimedia Journalism Network (NIMJN) at the HImal Media Mela 2023.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230504060520_1df44df7843f5dee5c7a3752c63e2d07a9be3e8eef0312e30f4f62e6256e44ea.jpg" data-media-id="editor_0" data-image-id="20230504060520_1df44df7843f5dee5c7a3752c63e2d07a9be3e8eef0312e30f4f62e6256e44ea" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="Himal Media Mela Day 2- Going Back to Good Storytelling"> <figcaption>Rajneesh Bahndari and Bidhya Chapagain. All photos: GOPEN RAI AND SUMAN NEPALI</figcaption> </figure>  So Chapagain and her colleague Kamal Kumar set out to find those extraordinary stories of ordinary people across Nepal largely ignored by mainstream media. They knew that these stories needed to be told through video since it is the medium most suited to the stories, but also because they had some expertise in it.&nbsp; Five years down the line, Herne Katha has broadcast 104 episodes and is one of the most popular and credible Nepali shows known for bringing impactful and extraordinary stories from some of the remotest parts of the country. The team was recently in Accham and locals easily recognised them as ‘Herne Katha’.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230504070524_4c8572857a8426c2661a020290285c11abfd88cabff0a69088f2f2f509422c67.jpg" data-media-id="editor_1" data-image-id="20230504070524_4c8572857a8426c2661a020290285c11abfd88cabff0a69088f2f2f509422c67" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="Himal Media Mela 2023- Going Back to Good Storytelling"> <figcaption>Bidhya Chapagain</figcaption> </figure>  “It is not as difficult to find the subject matter or stories, we have to want to find them in the first place,” said Chapagain, recounting some of the risky trips she had taken to document her characters for Herne Katha.&nbsp; But while new age digital shows like Herne Katha have the audience, sustainability continues to be a challenge. Chapagain revealed that YouTube revenue is not as significant and the team also relies on advertisement, membership and donations.&nbsp; Said Chapagain: “It has been five years but we still have not figured out a business model best suited to us. But if we want to sustain and continue telling the stories, we must figure it out.” The business side of news  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230504070528_69fc80c46460ab73c782b5f9b7c3bfa8bdbe91087f3f5b9ff26f4500c6f2e062.jpg" data-media-id="editor_2" data-image-id="20230504070528_69fc80c46460ab73c782b5f9b7c3bfa8bdbe91087f3f5b9ff26f4500c6f2e062" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="Himal Media Mela 2023- Digital Reader Revenue"> <figcaption>A panel on Digital Reader Revenue.</figcaption> </figure>  Across the world and in Nepal, eyeballs have moved online but advertisers have not. This has made the sustainability of legacy media increasingly difficult at a time when even online portals are competing with the new age mass media like TikTok, YouTube and Facebook for both audience and revenue.&nbsp; How readers consume news have also changed media’s traditional business model but the print still brings in the money, said Sambridhi Gyawali of Nepal Republic Media which publishes Nagarik Daily. “We haven’t been able to monetise digital platforms, paywalls have not worked in Nepal,” she added during the panel Digital Reader Revenue.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230504070528_4efc53201ef0de22dcac55a43124d37a9e165f07f2339a3741c7e193ee173872.jpg" data-media-id="editor_3" data-image-id="20230504070528_4efc53201ef0de22dcac55a43124d37a9e165f07f2339a3741c7e193ee173872" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="Himal Media Mela 2023- Digital Reader Revenue"> <figcaption>Sambridhi Gyawali</figcaption> </figure>  Ameet Dhakal, editor of Setopati which pioneered long-form online portal in Nepal shared the humble beginnings of the digital platform, and financial challenges they faced in the early days while also the crisis Nepali media as a whole is undergoing. “It used to be cheaper to advertise in online portals because they didn’t have high operating costs of printing but now advertisers have even cheaper platforms like Facebook and Google who don't even need to pay people in Nepal,” added Dhakal. “We are now facing the same problem that print media has been facing for a while now.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230504070528_983f3b9c42b40ff3b9b1f1630b4371ea9cd8d80f04eef172662a0b326fd41c18.jpg" data-media-id="editor_4" data-image-id="20230504070528_983f3b9c42b40ff3b9b1f1630b4371ea9cd8d80f04eef172662a0b326fd41c18" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="Himal Media Mela 2023- Digital Reader Revenue"> <figcaption>Ameet Dhakal</figcaption> </figure>  Traditional media has always relied on advertisements but it is also known to interface with editorial decision-making. Recently, there has been a new model entirely based on contributions from readers. Pranaya Rana was with an independent online portal The Record Nepal (TRN) before it closed down last year, unable to sustain itself financially. “The idea was to get the grant and eventually move on to the membership model but we failed. Maybe Nepal is not ready for it yet, the fact that we are an English publication didn’t help matters,” said Rana who now publishes Off the Record, a weekly newsletter every Friday.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230504070536_e3aadb74467fe8e5493fb0dbad39ae16df2b39767343c3665da5fcbb956acd61.jpg" data-media-id="editor_5" data-image-id="20230504070536_e3aadb74467fe8e5493fb0dbad39ae16df2b39767343c3665da5fcbb956acd61" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="Himal Media Mela 2023- Digital Reader Revenue"> <figcaption>Pranaya Rana</figcaption> </figure>  He added: “But we have realised that we need a business plan and we cannot ignore the market, we are trying to figure out how we can bring in the advertisements without compromising our journalism.” Much like the TRN, Ukaalo has joined Nepal's cybersphere as an independent digital platform that relies entirely on contributions. Said co-funder Amod Pyakuryal: “Public supported media have worked elsewhere so why not in Nepal? We have people who are well educated and informed, they can pay us for unbiased agenda setting content.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230504070536_a5be03ea31d7589d7cf026ce235c98f18fe9d47e087c956990bcb0b2e06e6f7a.jpg" data-media-id="editor_6" data-image-id="20230504070536_a5be03ea31d7589d7cf026ce235c98f18fe9d47e087c956990bcb0b2e06e6f7a" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="Himal Media Mela 2023- Digital Reader Revenue"> <figcaption>Amod Pyakuryal</figcaption> </figure>  Meanwhile Gyawali noted that it might be time for an internal reflection for Nepali media and the kind of content that is being dished out. To that effect, Rana added that the media should be writing and developing content for the younger generation. “But our young generation are hooked into TikTok. First, we have to find ways to get the content they want and only then we can think about monitisation,” he added.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023050408050_8f139dd0e78ede3cbc4f0961d3e301319c6b3ff76a48e6a1c7ddff7efcbffbae.jpg" data-media-id="editor_7" data-image-id="2023050408050_8f139dd0e78ede3cbc4f0961d3e301319c6b3ff76a48e6a1c7ddff7efcbffbae" data-rendition-name="original" width="2048" height="1400" loading="lazy" alt="Himal Media Mela- Digital Reader Revenue"> <figcaption>Madhu Acharya</figcaption> </figure>  But interestingly, while audiences are consuming content on social media and on online portals, the general public do not trust them, they still trust mainstream media over others, noted moderator Madhu Acharya of the Sharecast Initiative quoting the recent survey conducted by his organisation as he concluded the panel.&nbsp; Climate change in media&nbsp; The climate emergency is arguably the biggest crisis of our times. How the media cover it can define the actions to be taken for adaptation and mitigation, and how soon.&nbsp; “Europe realised the impacts of climate change early on and began to take action. It took 25 or so more years for the US to catch-up. This was because of the coverage in he European media,” noted Kunda Dixit, author of Dateline Earth: As If the Planet Mattered during the panel on covering the climate crisis. “European media had a more global outlook, published news from around the world, and pressured their governments.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230504090516_e393bf333d549e0027dbcf31d8db33062fc0c082343159110426d1af5d99cc0f.jpg" data-media-id="editor_8" data-image-id="20230504090516_e393bf333d549e0027dbcf31d8db33062fc0c082343159110426d1af5d99cc0f" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="Himal Media Mela 2023- How the Media Can Cover the Climate Crisis"> <figcaption>Kunda Dixit</figcaption> </figure>  But for the media to inform the public and the policymakers alike they need to understand the science themselves. Also speaking at the panel, atmospheric scientist Arnico Panday said that Nepali media has been focusing on weather, not so much climate which is measured over a longer period. Panday is now a meber of the RSP, wch is the fourth largest party in Parliament. Nitu Ghale who is with the Annapurna Post shared her experience of trying to highlight stories on climate change while also tackling inherent challenges. “There is just not enough data and even when there is data, they are not managed properly. It is also not easy to get the right experts to talk to,” she added.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230504090516_5f3ce88cc495c15800896ef8b51dd82344ec0cf46fdaf4b6f72b414bdea2ede6.jpg" data-media-id="editor_9" data-image-id="20230504090516_5f3ce88cc495c15800896ef8b51dd82344ec0cf46fdaf4b6f72b414bdea2ede6" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="Himal Media Mela 2023- How the Media Can Cover the Climate Crisis"> <figcaption>Nitu Ghale</figcaption> </figure>  But either way, climate change often does not get the prominence it deserves in Nepali media, often sidelined by the political and economic issues. But panellists stressed that climate change is not an environmental issue for us but rather economic and political.&nbsp; Nepal’s import of petroleum is polluting the air and worsening public health but it is also emptying our foreign reserves. Petroleum accounts for over 20% of Nepal’s import. Switching to electric mass transit would save billions.&nbsp; “What Nepal does or does not won’t save the planet but will save our economy from collapsing and maintain our political independence by reducing our trade deficit, so they should be given the prominence they deserve in our coverage,” explained Dixit. “But having said that, climate change is becoming more of an excuse for leaders to blame their inaction and the discount governance failures and historical state neglect.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230504090516_8d4b3a774da7b2ec877f74278f6c3a256428d8acc694c3243699ebe2cee307ec.jpg" data-media-id="editor_10" data-image-id="20230504090516_8d4b3a774da7b2ec877f74278f6c3a256428d8acc694c3243699ebe2cee307ec" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="Himal Media Mela 2023- How the Media Can Cover the Climate Crisis"> <figcaption>Panel on How the Media Can Cover the Climate Crisis.</figcaption> </figure>  But not everything is lost. China is developing itself as the centre of green energy whereas the United States under Biden has committed to convert 35% of all the automobiles into battery operated vehicles in eight years.&nbsp; Arnico Panday admitted that he entered politics after realising that science is not enough to bring urgent change to problems like air pollution and climate crisis. He asked the audience to vote for the party that actually works to resolve the climate emergency, among others, in the next election -- amidst much applause from the rapt audience.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023050409058_bfebb45fb60bbb93f1a9b833ec83e0a3f43b6a00c117b7295f7e42a4d6bc8c8a.jpg" data-media-id="editor_11" data-image-id="2023050409058_bfebb45fb60bbb93f1a9b833ec83e0a3f43b6a00c117b7295f7e42a4d6bc8c8a" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="Himal Media Mela 2023- How the Media Can Cover the Climate Crisis"> <figcaption>Arnico Panday</figcaption> </figure>  Nepali translation of Dixit’s Dateline Earth: As If the Planet Mattered and the third edition of the English version were launched following the panel discussion. The book has now been translated into five Asian languages.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023050410050_ce529ecb914b5e946464e039722db60313f3a13a057a93c444f1538cba80aa35.jpg" data-media-id="editor_12" data-image-id="2023050410050_ce529ecb914b5e946464e039722db60313f3a13a057a93c444f1538cba80aa35" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="Himal Media Mela 2023-Dateline Earth Book Launch"> <figcaption>Nepali translation of Dateline Earth: As If the Planet Mattered and the third edition of the English version were launched following the panel discussion.</figcaption> </figure>

Journalism is all about storytelling (and money)

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2023020814028/63e39f649c7e80680e0d6fecjpeg.jpg" alt="" width="1800" height="1041"/><figcaption>Photo: RSS</figcaption></figure>Prime Minister Pushpa Kamal Dahal is busy garnering <a href="https://www.nepalitimes.com/banner/left-led-coalition-upturns-nepal-politics/">support from parties left, right and centre</a> for the 10 January vote of confidence he has to prove in the Federal Parliament. On Wednesday, he met Madhav Kumar Nepal of the Unified Socialist (US) for the first time since he broke away from the Nepali Congress (NC) led coalition.With his Maoist Centre (MC) being only the third biggest party with a mere 32 seats in Parliament, Dahal has had to give away powerful ministries: Finance to Bishnu Paudel of the UML, and Home to Rabi Lamichhane of the Rastriya Swatantra Party (RSP).And with less than a week before the confidence vote, there will be more wheeling and dealing behind the scenes. There is already talk of adding two more deputy prime ministers to specifically appease the far-right Rastriya Prajatantra Party (RPP) and Janata Samajbadi party (JSP).The Constitution sets a limit of 25 ministers in the Cabinet. But Dahal has to balance the disparate demands from members of his coalition for posts. He will exceed that limit, and for that will have to split some ministries.Read also: <a href="https://www.nepalitimes.com/banner/oli-dahal-political-deja-vu/">Oli-Dahal political déjà vu</a>, Santa Gaha MagarDahal may be prime minister, but it is <a href="https://www.nepalitimes.com/banner/oli-dahal-political-deja-vu/">UML's K P Oli who is pulling the strings</a>. As the head of a high-level political committee, Oli will essentially be running a parallel government. And given the past bad blood between Oli and Dahal, there is every possibility of them falling out, and the coalition falling apart.The UML is the second largest party with 78 seats and has shrewdly gained the upper hand by playing the long game by agreeing to give Dahal the first go at premiership while bagging plum political positions for his party in the process.The committee Oli heads is an extension of this power-sharing deal between him and Dahal. The fact that the Prime Minister is the executive head of Nepal but will now have to adhere to a committee on high-level political decisions has essentially turned Dahal into a puppet of Oli’s making.But these power games have long stopped being of interest to the people. It was in fact the very frustration with political manipulation that voted <a href="https://www.nepalitimes.com/banner/for-whom-the-bell-tolls/">independent collective RSP</a> to be the fourth largest party in the 2022 elections.Read also: <a href="https://www.nepalitimes.com/banner/for-whom-the-bell-tolls/">For whom the bell tolls</a>, Shristi KarkiBut regardless of who is in the coalition or who has an upper hand, the biggest challenge for the new government in 2023 is to save Nepal from an impending economic collapse.As of 4 January, the total expenditure of the Nepal government in the current fiscal year stands at Rs517 billion against its revenue of Rs362 billion. Nepal is unable to support the government’s spending, and herein lies the biggest problem.The additional ministries in the new government and their staff will only add to <a href="https://www.nepalitimes.com/banner/nepals-energy-policy-in-2023-and-beyond/">unnecessary expenses in security, infrastructure, salary and other administrative costs</a>. Increased ministries and staff doesn’t guarantee better service delivery either.The appointment of Bishnu Paudel of the UML as  finance minister has made businesses hopeful, but there is only so much he can do to rectify the blunder made by his Maoist predecessor, Janardan Sharma. On Wednesday, Nepal Rastra Bank, acting  a directive from Paudel and Prime Minister Dahal has revised its new guidelines pertaining to current capital loans to spur investment.Nepal’s imports decreased by 20.17% in the last five months compared to the same time period last year owing to the central bank’s ban on luxury items following rapidly declining foreign exchange reserves. This helped increase the reserves but also reduced revenue from imports, which continues to be the government’s biggest source of income.Read also:<a href="https://www.nepalitimes.com/editorial/new-year-challenge-to-new-government/"> New year challenge to new government</a>, EditorialIn the meantime, Nepal’s export in the same time period decreased by 34.61% to Rs6.7 trillion and trade deficit by 18.77%. But reduced demand for goods and services can lead to a recession. Year-on-year inflation is also high at 8.08%. In response, banks have  increased interest on loans to reach more than 15% which has discouraged businesses from investing.Moreover, leakage in revenue and lack of economic activities as well as investment in unproductive sectors continue to pose formidable challenges to Nepal’s stagnant economy which is propped by remittance money sent home by Nepalis ioverseas.Those jobs have allowed the government to get away with not providing youth with enough employment opportunities at home. But remittance is an unsustainable source, especially as Nepal needs its workforce at home for agriculture, construction and manufacturing, among others.Nepal needs to reduce its nonessential spending, stop revenue leakage in VAT and others, expedite development projects and promote industries and manufacturing at home. All of this will need to be <a href="https://www.nepalitimes.com/editorial/new-year-challenge-to-new-government/">facilitated by reformed policymaking</a>, not just directives.Instead, planners bring about ad-hoc schemes like <a href="https://www.nepalitimes.com/latest/think-twice-about-bringing-your-mobile-to-nepal/">Mobile Device Management System</a> (MDMS) benefiting select businesses, further adding to the frustration of the common people and making service delivery even more difficult.Sonia Awale

Nepal's political economy

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111120/6372170e9c7e80680e0ba9cajpeg.jpg" alt="" width="1057" height="700"/><figcaption>A S PANNEERSELVAN. Photos: MONIKA DEUPALA</figcaption></figure>A S Panneerselvan is executive director of Panos South Asia, which fosters public debate in the region. He has been the Reader's Editor of The Hindu, and a strong advocate of ethical and responsible journalism. He teaches media studies at the Asian College of Journalism in Chennai. The following are excerpts from a recent conversation between him and Shekhar Kharel on the challenges facing old and new media.Nepali Times: As a frequent visitor to Nepal, what do you make of the mediascape here?A S Panneerselvan: In the 1990s Nepal set a standard for South Asian media when it came up with the finest decentralised media environment through its <a href="https://archive.nepalitimes.com/article/editorial/radio-sagarmatha-the-radio-wave,3718" target="_blank" rel="noopener noreferrer">community radio revolution</a>. But the digital disruption has completely changed that. While it has given a voice to everyone, no one is actually listening. We have concurrent monologues, not dialogues. There is also no supporting revenue stream for this new model.With <a href="https://www.nepalitimes.com/banner/how-nepals-media-landscape-is-being-transformed/" target="_blank" rel="noopener noreferrer">mobile connectivity</a> even in rural areas, the digital divide itself is an obsolete concept. But the global media is also extremely centralised. A handful of Silicon Valley multinationals control our information ecosystem. Governments can switch off connectivity as we saw in Jammu and Kashmir in 2021 when its special status was abrogated.Traditional media played an empowering role during Nepal’s People’s Movements I and II. But there are new questions today: Is the media going to get caught up in the social media cacophony, or play a leadership role?How are these changes going to affect the sustainability, credibility and independence of Nepali media? The Nepali media now has reach, but it needs revenue to survive. This is crucial because the media has a dual role: bearing witness and making sense. Bearing witness means journalists have to travel to gather news and that costs money. The budget to bear witness is shrinking. So, broadsheet publications retain their respectability by focusing more on making sense by writing editorials explaining a particular issue. Making sense has taken precedence over bearing witness. This is why the digital disruption is hurting us.Read also: <a href="https://www.nepalitimes.com/editorial/internet-in-everything/" target="_blank" rel="noopener noreferrer">Internet in everything</a>, EditorialHow does this revenue model then affect the digital media? When the Arab Spring happened, we thought the digital media would become an enabler. But <a href="https://www.nepalitimes.com/latest/ununited-states-of-america/" target="_blank" rel="noopener noreferrer">Trump</a> and Brexit showed us that it is also a curse. Today, the trend is towards clickbait journalism since algorithms decide what is going to get amplified and what is not. Editorial judgment has no place in this environment, the content can be <a href="https://www.nepalitimes.com/opinion/comment/digital-discrimination/" target="_blank" rel="noopener noreferrer">misogynist, ultra-nationalistic jingoism, war-mongering, spewing hate</a>. It does not matter, as long as it gets the reach. When you ask Silicon Valley companies to regulate such content, they say they are not a media organisation but purely a platform. Yet they want all the credibility and reach of media organisations. When it suits them they become a media organisation, when it doesn’t they become a platform. The fact that these trans-border organisations are not governed by conventional laws is causing further harm.The political economy of these platform companies is that they give money to the carriers, not the content generators. But carriers are not neutral. Whether they are ISP providers, DTH platforms or search engines, they are heavily loaded and discriminatory. And carriers have become so powerful that content companies are now dependent on them, and this is against the spirit of an independent media elsewhere and in Nepal.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111120/637217119c7e80680e0ba9cbjpeg.jpg" alt="" width="1200" height="700"><figcaption></figcaption></figure>So what is the role of journalists in this new environment?Journalism is different from all other forms of communication because at its core is the act of verification. It is different from blogging or posts on social media with no filtration. This act of verification is mediated by editorial judgment — the two things that give journalism its credibility. <a href="https://www.nepalitimes.com/latest/the-social-media-contagion/" target="_blank" rel="noopener noreferrer">Social media</a> is destroying this and denying citizens the democratic right for credible information.Whose responsibility is it to uphold the media’s credibility?It is the responsibility of citizens who have to invest in credible information that is the building block of democratic rights. People’s spending on media in the last 5-10 years has gone up, but the money is going to the carriers. We pay internet service providers, DTH companies and for mobile connectivity. Money spent on those creating content for media has gone down. Credible information is a public good, we must reinvest in it.Read also: <a href="https://www.nepalitimes.com/banner/press-for-people/" target="_blank" rel="noopener noreferrer">Press for people</a>, Sahina ShresthaBut will a public hooked on TikTok invest in credible information? People don’t think twice about paying IPSs or for DTH connections, why would they not also pay a part of it to news outlets that they trust? Trusted institutions need a certain amount of financial leeway. Since 2006 we have witnessed a huge squeeze on the <a href="https://www.nepalitimes.com/banner/the-death-of-print-is-exaggerated/" target="_blank" rel="noopener noreferrer">traditional media model</a>. This is hurting us in two ways. One, the most credible information has become the most expensive, while the most salacious is the most accessible. For example in the UK, those who want credible information, say the Financial Times, have to pay, but the tabloid Daily Mail is free. Tabloidisation of news is the biggest challenge for us, and we don’t have a language to confront that. But we can’t expect the government to act either, <a href="https://www.nepalitimes.com/banner/gagging-the-press-in-installments/" target="_blank" rel="noopener noreferrer">their response is censorship</a>. Silicon Valley corporations already account for 80% of digital revenue. If Facebook, Google and Twitter are going to take it all away, what is the role for professionals across the world working to produce credible information?Doesn’t this erode the independence of the press?We have to make a distinction between what was happening till 2010 and after. Until 2010, the mainstream media had its own problems, but were still largely independent. Post 2010, the ownership has gone over to big corporations who do not mind losing money as long as they prevent others from entering the field. The rules have changed in such a way that the political economy has become the corporate economy.Read also: <a href="https://www.nepalitimes.com/opinion/digital-discrimination/" target="_blank" rel="noopener noreferrer">Digital discrimination</a>, JB BiswokarmaSo, is there a future at all for the printed media?Digital media is here to stay, and we have to <a href="https://www.nepalitimes.com/editorial/internet-in-everything/" target="_blank" rel="noopener noreferrer">negotiate our space within this new environment</a>. But digital platforms do not have a sustainable revenue model. We have a hybrid entity controlled by corporates, and whatever they give is what we receive. Large content generators have been reduced to an appendix. People often cite The New York Timesand the Financial Timesas examples of successful transitions, but they are only mimicking the Silicon Valley giants. The better model was that of <a href="http://archive.nepalitimes.com/article/nation/nepali-radio-nepali-awaj,3728" target="_blank" rel="noopener noreferrer">Nepal’s community radios</a> which decentralised credible information produced by and for the people. But even that has been eroded with corporate takeovers.This is the <a href="https://www.nepalitimes.com/editorial/reward-performance/" target="_blank" rel="noopener noreferrer">year of elections in Nepal</a>. Three Ms are considered important for the polls: Money, Muscles and Media. Are there lessons from India?Back in the day, the media used to come up with difficult questions. Now it presents only easy answers. Social media like <a href="https://www.nepalitimes.com/here-now/huge-uptick-in-tiktok-during-nepal-lockdown/" target="_blank" rel="noopener noreferrer">TikTok</a> are leading this trend by producing content with simplified narratives which rob the reality of its complexities. The misuse of media is not new. During India’s emergency from 1975-77, the government controlled the media and yet the people eventually voted against Indira Gandhi. Recently we saw media manipulation in West Bengal, but the public voted against the BJP there. The thing is, the will of the people cannot be underestimated or manipulated beyond a point.

“All the people cannot be fooled all the time”

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110111120/636cd0ed9c7e80680e08f883jpeg.jpg" alt="" width="1000" height="1500"/><figcaption>Photo: MONIKA DEUPALA</figcaption></figure>The Year of Covid hit economies hard, and none more so than the <a href="http://v" target="_blank" rel="noopener noreferrer">media business which depends mainly on advertising</a>. With sales down and many businesses going belly-up, the media’s main source of revenue dried up as well.When the lockdown went into effect on 24 March, most legacy media in Nepal stopped their print editions. Nepali Times and Himal Khabarpatrika were one of the first to stop printing in early March, and went fully digital. National broadsheets like Nagarik, Kantipur, Kathmandu Post and The Himalayan Times also halted hardcopies, and terminated their other magazines.Among the broadsheets, only Naya Patrika and Annapurna Post continued to print much slimmer versions of their papers, mainly surviving on government notices.However, within ten days Nepal’s largest-circulation newspaper Kantipur resumed printing after it found out that it was losing market share. “We panicked prematurely, and pausing print production was a near-fatal decision,” admits Mahesh Swar, Assistant General Manager at Kantipur Media Group. “We did lose some confidence of our readers, but we have won most of it back. Resuming print was the best decision we made.”Although it was a question of visibility in the market and a presence in the corridors of power in Singha Darbar, <a href="https://www.nepalitimes.com/editorial/media-muzzle/" target="_blank" rel="noopener noreferrer">media</a> as a business has struggled to survive in the past ten months as Nepal’s economy flatlined during the March-July lockdown. The prognosis for 2021 is looking only slightly better.A handful of digital-only portals with lower overheads rode out the crisis, but even they had to cut costs as new sites diluted online readership. Print media found it difficult to get existing companies to switch advertising to their online editions. While page views of their digital editions hit the roof, revenue crashed.Back in April, Shiva Gaunle of the Centre for Investigative Journalism (CIJ) told this paper that <a href="https://www.nepalitimes.com/latest/in-locked-down-nepal-print-is-still-king/" target="_blank" rel="noopener noreferrer">the resumption of hardcopy</a> was prompted by competition, and the fear of losing a paper’s footprint.“It is true digital media has even more reach during the lockdown, but the publishers seem to have decided that not having a printed newspaper has reduced their clout,” Gaunle says. “In that respect, print is still king.”A <a href="https://www.nepalitimes.com/banner/mobile-nepal-is-hooked-on-youtube/" target="_blank" rel="noopener noreferrer">survey earlier this year</a> by Sharecast Initiative showed that only 7% of a nationwide sample regularly read print media, while the proportion of people who got their information from online media had grown, but only to 16% by October.“It has been a challenging year for publishers, but they should keep in mind that the readership has not decreased. It's just that the news sources have shifted to the digital platform,” says Madhu Acharya of Sharecast. He adds that the real reason there are not more readers of print is because publishers have not invested in efficient nationwide distribution. “Most respondents in our survey said they would read newspapers if they could buy them easily.”<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/opinion/journalism-is-not-a-crime/" target="_blank" rel="noopener noreferrer">Journalist Namrata Sharma</a> believes that older people prefer a physical newspaper because they are in the habit of reading them with their morning cup of tea. “Newspapers are just much easier to read, the letters and pictures are bigger and they do not have to squint into phones,” she says.https://www.youtube.com/watch?fbclid=IwAR0YfYL0plBNnqDQvITBvW-S4pcOYeQcS2cHoedcDtVArHADUyro3G8y4Tk&amp;v=r6UdpJ-UC_Y&amp;feature=youtu.beThe Sharecast survey shows that the readership of news portals is not much higher, and most people with smartphones use the internet <a href="https://www.nepalitimes.com/review/nepals-new-digital-landscape/" target="_blank" rel="noopener noreferrer">for entertainment, to connect to family and friends and to watch or share video content</a>. Some 80% of respondents in the survey are on Facebook, with the total number of Nepalis with the app at nearly 9 million. YouTube and TikTok are spreading rapidly as well. Three years ago, only 1% used YouTube, that has grown to 57% in 2019.Acharya says print readership can grow if newspapers and magazines are more readily available to subscribers and in news-stands because of greater literacy levels. Print’s advantage is its shelf-life, and the size of images, which has an edge over a mobile phone screen.“Print newspapers are not going to die because it is something physical that stays with you, there are things you can do with design and use of space on the page that is much more powerful than looking at a small screen,” says Amar Gurung, CEO at Himalmedia, which is resuming the print edition of Nepali Times every Friday from 1 January.Even ad agencies feel that print is a more credible source of information for the public, but they say that <a href="https://www.nepalitimes.com/editorial/lockdown-crackdown/" target="_blank" rel="noopener noreferrer">legacy media</a> has to re-invent itself to be more appealing to advertisers and readers."Print publications have a more loyal readership, and they perceive them as more credible than online," says Ujaya Shakya of Outreach Nepal, and author of Brandsutra.He adds that print readers do not usually multitask when they read a magazine or newspaper, making them more receptive to ads in those publications.However, Shakya says the <a href="https://www.nepalitimes.com/here-now/nepalis-are-drifting-to-digital-media/" target="_blank" rel="noopener noreferrer">penetration of digital media is growing</a> faster, and it will gain momentum when it is integrated with print, tv or radio."The biggest challenge for marketers now is the attention span of the digital audience," Shakya adds. "How many times will they click on the banner ad while browsing social media or a site? That is the key question."The print media as it existed 10 years ago is dead. But the content and role of newspapers have changed. Ironically, what appears to have saved print is the proliferation of digital portals, where both news and advertisement tend to be drowned out by the cacophony. To stand out from the crowd, advertisers now prefer a printed paper page.“Print media still helps to create certain level of credibility in communications. With excess noise in digital, and its unregulated content, many people are not sure how much they can trust it. Print provides trust,” says Punam Singh of the Golchha Group which is the distributor of Bajaj motorcycles.It may be a question of time before print is trending again, just as people get tired of digital sound and vinyl record shops are becoming fashionable. Physical newspapers are tactile, their influence is less ephemeral than digital, much like e-books never really took off as people preferred to turn physical pages. The sale of printed books worldwide doubled last year.“A newspaper in your hand is much more real than digital words on a monitor. There is more trust and credibility in a physical paper in this age of fake news,” says Amar Gurung. “Readers of print also tend to read longer articles and are less distracted, whereas online readers prefer shorter items or videos.”This may be the reason why despite the <a href="https://www.nepalitimes.com/editorial/the-message-is-the-medium/" target="_blank" rel="noopener noreferrer">growth of digital readers</a>, many advertisers in Nepal still prefer ads in print. Indeed, across the world there is a return to print advertising by companies who are turned off by the over-saturation of online, and people disabling ads because they feel pursued by algorithms.“Traditional media's major source of revenue has been ads. But now, we have to think out of the box to generate revenues from other sources as well,” says Gurung.To be sure, there are caveats to print. The content and production values have to be of extremely high quality, there has to be visibility and efficient distribution that makes the media brand stand out. In the end it will be the advertisers who have the last word.Says Prasun Timilsina of Karyala Advertising Inc., “For advertisers, it mostly depends on the audience. While products for youth are usually on digital media, it still makes sense to advertise in newspapers because they are tactile and there is greater retention of content that people see in print. A newspaper is also shared by the entire family, as opposed to digital media which is individual.”

The death of print is exaggerated

https://youtu.be/1jdbg4DVyecPeer pressure drove Sudip to start drinking at a young age. Soon, he was an addict and lost his job at a travel agency. His personal relationships soured and health deteriorated. He dabbled in various trades, but was often inebriated from early morning. He did sober up. When the <a href="http://archive.nepalitimes.com/blogs/kundadixit/2015/05/27/a-month-that-felt-like-a-year/" target="_blank" rel="noopener">earthquake struck in 2015</a>, he was travelling with his infant son. The shock drove him to drink again. Sudip has been in and out of rehab, but nothing worked until he was tasked with organising <a href="http://www.aanepal.org/" target="_blank" rel="noopener">Alcoholics Anonymous (AA) meetings</a> in Kathmandu. The challenge finally made it possible to overcome his own addiction.Read also: <a href="https://www.nepalitimes.com/editorial/octoberfest/" target="_blank" rel="noopener">Octoberfest</a>, Editorial“I used to find solution in drinking. Now, I know that not drinking is the solution,” says Sudip, now in his mid 40s and 15-months sober. We caught up with Sudip during one of his meeting with AA in Patan this week where 23 men from their 20s to 60s were seated in rows. While the oldest member spoke about how he had not had a drink for 10 years, a newly-sober member talked about how difficult it had been for him. Each was met with applause. <a href="http://www.who.int/news-room/detail/21-09-2018-harmful-use-of-alcohol-kills-more-than-3-million-people-each-year--most-of-them-men" target="_blank" rel="noopener">Alcohol kills more than three million people every year around the world</a>, mostly men. <a href="https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(18)31571-X/fulltext" target="_blank" rel="noopener">A recent paper in the journal Lancet</a> reported that no level of alcohol improves health, challenging the notion that moderate drinking is good for the heart.  <figure><img width="1400" height="1050" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171116/63692f8b9c7e80680e03c0afjpeg.jpg" alt=""/><figcaption>Binge drinking during Dasain causes many cured alcoholics to suffer relapses. Photo: KUNDA DIXIT</figcaption></figure>Some <a href="https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(18)31310-2/fulltext" target="_blank" rel="noopener">21% of men in Nepal are regular drinkers</a>, but only 1.5% of women. The annual per capita alcohol consumption among Nepalis is 2.2 litres, but increases to 28.8 litres among drinkers (36.2 litres in men). Nearly 1% of Nepalis suffer from alcohol dependence, according to WHO, but this seems to be an underestimate as it does not count <a href="http://archive.nepalitimes.com/news.php?id=14913#.W8CRk3szaUl" target="_blank" rel="noopener">homemade alcohol</a>. “There has been an increase in alcohol consumption in Nepal and it is a bigger risk factor than <a href="https://www.nepalitimes.com/here-now/nepali-scientist-returns-to-pinpoint-hazards-of-dirty-air/" target="_blank" rel="noopener">smoking</a>, <a href="https://www.nepalitimes.com/here-now/nepali-scientist-returns-to-pinpoint-hazards-of-dirty-air/" target="_blank" rel="noopener">air pollution</a> or adulterated food. Plus it leads to an increase in crime rate,” says psychiatrist Rabi Shakya at Patan Hospital. Read also: <a href="https://www.nepalitimes.com/banner/festivals-of-sisterhood/" target="_blank" rel="noopener">Festivals of sisterhood</a>, Sewa Bhattarai and Sabina DevkotaThe challenge is that cultural drinking is accepted, people use it as self-medication, and social drinking has become the norm. Sale of alcohol shoots up during festivals like Dasain and Tihar.“Alcohol-related problems are a common cause of hospital admissions, and it is rising with liver cirrhosis and mouth cancer and infectious diseases,” says Buddha Basnyat, a physician at the Patan Academy of Health Sciences. Binge drinking during festivals like Dasain are worrisome because that is when cured alcoholics are most susceptible to suffer relapse. “Dasain is a trigger, a temptation for all the recovering alcoholics like us,” admits Samir Timilisina, Chair of Alcoholics Anonymous in Kathmandu. AA began in Nepal in 1970s and holds meetings six days a week at Patan Hospital, Teaching Hospital and Lazimpat. There are currently 60 regular members. Timilsina himself struggled with addiction for 25 years and has been sober for the past 14 months. “AA meetings are for those who have realised their problem, want to quit but are unable to do so. We share each other’s stories and draw inspiration from that,” he explains. Read also: <a href="https://www.nepalitimes.com/here-now/the-sacrifice-of-animal-sacrifices/" target="_blank" rel="noopener">The sacrifice of animal sacrifices</a>, Aashish MishraSenior cardiologist Prakash Regmi at Bir Hospital is busiest this time of the year. Patients with Holiday Heart Syndrome, a condition with abnormal and high heartbeat due to excessive drinking, crowd his clinic. They need immediate treatment, or may die due to heart failure or stroke.“Our mentality that festivals cannot be celebrated without booze needs to be wiped out,” says Regmi.Mark Zimmerman has been practicing medicine in Nepal for 32 years, and has found alcoholism to be common, but difficult to treat. “<a href="http://archive.nepalitimes.com/news.php?id=4584#.W8CL2HszaUk" target="_blank" rel="noopener">It is a disease</a>, but excessive drinking is considered a habit, a coping mechanism to deal with stress, and therein lies the biggest problem,” explains Zimmerman, who has noticed a rise in female alcoholics among his patients. “At any given time, up to 10% of patients here are alcohol related, and most have damaged 3-4 organs due to excessive drinking. But this is just a tip of the iceberg because those are only who come to hospital,” he adds.Read also: <a href="https://www.nepalitimes.com/banner/no-dasain-in-kalikot/" target="_blank" rel="noopener">No Dasain in Kalikot</a>, Seetashma ThapaAlcoholism is especially prevalent in impoverished western Nepal, where rice sent by the government to tide over food insecurity is often distilled into bootleg alcohol. Until six years ago, Accham was a dry district, but that led to the sale of spurious liquor, leading to a huge disease burden.“Alcohol is a major source of revenue generation. But we have not thought about the much higher price we are paying for treatment,” says Bikash Gauchan of Bayalpata Hospital in Achham.The government adopted a stricter policy for alcohol sales last year, making it mandatory for manufacturers to put pictorial warnings covering at least 75% of the bottle like in cigarette packs, and to ban liquor advertising. People under 21 are not allowed to buy alcoholic products, and retailers cannot sell alcohol from 5AM to 7PM. While some rules have come into effect, the alcohol industry has fought back. Increasing the tax on alcohol has worked in most countries, but here it could force users to turn to unsafe moonshine. A complete ban in Bihar has actually resulted in massive smuggling of Nepal-made beer and spirits across the border. Says psychiatrist Raju Shakya: “Alcoholism should be the number one public health agenda. If we can reduce alcohol consumption, it will remove many health issues.”Read also:<a href="http://archive.nepalitimes.com/news.php?id=4584#.W8CSDXszaUl" target="_blank" rel="noopener">Nepal's anonymous alcoholism</a>, Hemlata Rai<a href="http://archive.nepalitimes.com/news.php?id=14913#.W8CRk3szaUl" target="_blank" rel="noopener">Sobering thought</a>, Tom-Owen Smith <figure><img width="463" height="768" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171116/63692f909c7e80680e03c0b0jpeg.jpg" alt=""><figcaption> </figcaption></figure>

revenue

Business as unusual

Journalism is all about storytelling (and money)

Nepal's political economy

“All the people cannot be fooled all the time”

The death of print is exaggerated

Go easy on the booze this holiday season