<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181144/636be7ae9c7e80680e087817jpeg.jpg" alt="" width="1500" height="1112"/><figcaption>Charge d' Affaires L. Douglas welcomes BP Koirala to the US Embassy inaguration in 1959.</figcaption></figure>On 15 December 1960 (पुस १) exactly 60 years ago, King Mahendra ordered the jailing of Prime Minister BP Koirala and other political figures, many of whom the Nepali people had put in power 18 months earlier in Nepal's first-ever election.Ending a decade of democratic experimentation, Mahendra decided to rule the country directly. After his death in 1972 his son Birendra took power. Many of today's top political leaders cut their political teeth in years of underground opposition to the monarchy.The U S government at the time noted that Mahendra's coup was accomplished ‘with great secrecy and superb organisation’. After 1960, the US slowly shifted its approach in Nepal, embracing the monarchy and moving away from democratic reform.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181144/636be7b19c7e80680e087818jpeg.jpg" alt="" width="600" height="719">Ten years earlier, the globalisation of the Cold War had forced the US to pay more attention to South Asia. After China turned Communist in 1949 and war broke out on the Korean peninsula in 1950, Asian nations, particularly those near China, became hot spots for Cold War competition between the Soviet Union and China on one hand, and the US led capitalist democracies on the other.During the 1950s, believing economic progress and expanded political freedoms would inoculate Nepal against communist influence, the U S offered aid programs and supported democratic reforms. As part of this vision, Washington promoted health and agriculture programs but also, in part to counter populist Communist Chinese programs, pushed for economic leveling programs such as land reform.In the late 1950s, the US grew increasingly concerned as China and the Soviet Union expanded activities in Nepal. A November 1960 National Security document warned that Nepal had become ‘a particularly vulnerable target’.But the US believed that Nepal's 1959 election had strengthened the country. Nepal, the National Security document noted, ‘currently enjoys greater internal stability than heretofore, following the introduction of popularly-based parliamentary government’.The US also thought highly of B P Koirala. A 1960 memo explained, ‘Koirala is intelligent, forceful, respected by his party, and popular with his people.’ He was ‘basically pro-Western and anti-Communist’ and didn't underestimate the communist threat, showing ‘grave concern’ about it.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181144/636be7b39c7e80680e087819jpeg.jpg" alt="" width="465" height="578">The US had a less positive view of Mahendra. He was seen as anti-communist and as a ‘stabilising and unifying force’ but seemed less forceful, and less consequential. An internal memo discounted him as ‘a conscientious man of simple tastes and austere habits … rather naive politically and not particularly forceful as a ruler … awkward socially, and indecisive’. It noted he had advanced some reforms but that ‘he is firmly convinced that a strong monarchy is necessary to insure stability’.The last lines of an April 1960 US memo raised the possibility of a royal takeover in Nepal, saying the king was not ‘irrevocably committed’ to representative government. But it discounted the possibility: ‘Such a drastic step is not anticipated.’A week after the coup, on 20 December, 1960, CIA Director Allen Dulles told the National Security Council that the King's ‘strange coup’ owed to two reasons: Koirala was ‘too progressive’ and had too ‘close relations’ with India. He warned of a more ‘archaic form of government’.US Ambassador Henry Stebbins met with Mahendra on 21 December, 1960 and cabled Washington to say that the King professed a strong belief in democracy, which he claimed he himself had brought to Nepal. He said he dismissed the Koirala government and imprisoned its leaders because they were guilty of corruption and of aiding and abetting Communism. In a letter to US President Dwight Eisenhower a couple days later, he also blamed poor administration.Stebbins did not buy it. He wrote: ‘Mahendra is guided less by the issues of corruption and Communism than by a growing fear that his own personal position and prestige were dwindling and that if he did not act soon, it might be too late." Stebbins thought the coup might yield ‘disastrous’ results.President Eisenhower addressed the Nepal coup at a 11 January 1961 meeting, just 10 days before handing over the office to John F Kennedy. He was reminded of ‘intensive Bloc efforts to detach Nepal from India's sphere of influence’. The choice was to support the Nepali Congress or create some kind of accommodation between the NC and the king. The US chose accommodation, pointing to ‘the inevitable chaos which would be exploited by the Communists … and the Nepali Congress’ presumed inability to establish a viable government’.But this didn't mean giving the king full legitimacy. As a later document put it, for a short time after the coup, the US maintained ‘correct relations’ with Mahendra but didn't openly back him ‘for fear of alienating the exiled NCP (Nepali Congress Party)’.Things began to shift a year later, by early 1962, even before the dramatic events of later that year on the Sino-Indian border. ‘State is considering a new emphasis in our Nepal policy,’ reported a February memo. Department officials ‘now believe the King will probably stay in power despite the recent sharp increase in NCP-sponsored dissident activity’. They showed new concern the King would turn to the Communist bloc. ‘State feels now may be the time to move closer to him, lest he look increasingly to the Bloc for support.’Democratic values seemed less a concern than power politics. ‘Our chief problem is to keep Nepal from becoming too dependent on Bloc aid, especially from Red China, and to preserve her strong economic ties with India. In the past, we’ve tuned our policy to New Delhi’s.’At first, though, coming round to support the King did not mean the abandoning US efforts at democratic reform within Nepal. Instead, the US hoped Mahendra could be the source of reform. Mahendra, it said, ‘is probably making almost as much progress with economic and social reform as the NCP did’. He appeared to embrace land reform as well.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181144/636be7b59c7e80680e08781ajpeg.jpg" alt="" width="500" height="379">Everything changed in the fall of 1962 when China and India came to blows over disputed Himalayan territory. Catching the Indians flat footed, Chinese incursions spurred a reversal of India's hardline stance toward Mahendra. India abandoned support of Koirala and the Nepali Congress dissidents, and moved to win back Mahendra's favour. The U S lost leverage in Nepal, and land reform lost momentum.Mahendra continued to back भुमी सुधार land reform, but only outwardly. By March 1963, an American Ford Foundation official had noticed a new ‘spirit of complacency’ in Kathmandu on the issue. He wrote: ‘The desire to move ahead with the measures of unquestioned importance for the welfare of Nepal, so evident in September is hard to find now.’A sea change in Nepal politics had occurred. Observers began to see the 1950s as a restoration, not a revolution. The monarchy had returned to full power, not the people. The US, once a strong voice for democracy in Nepal, now supported the king and gave up on programs such as land reform.America's Reform Push in 1950s NepalVisiting Kathmandu in 1953, US Ambassador to India and Nepal Chester Bowles confronted a tricky issue: As an outsider working in a starkly hierarchical society, how much should you work with the existing power structure and how much to push for change?Nepal's land ownership patterns, some of the most unequal in Asia, spurred Bowles to ponder this question. He had come to Nepal to meet with Nepal's King Tribhuvan to discuss land reform. How hard should the U S push?Many foreigners in Nepal do not see the country's harsh hierarchies. Or they see parts, such as class and gender divisions, but miss more unfamiliar caste and ethnic divisions. I still remember my disappointment visiting Dang a few years ago after the end of the Maoist war, and learning that, of the many foreign volunteers working in the district, all of whom lived with local families, not one lived with a Tharu or Dalit family.But Bowles had an unusual background, and the early 1950s were a special moment. He had emerged from a progressive tradition, connected to the Great Depression of the 1930s, that had emphasised structural poverty and social reform. And because of family relations, he possessed a much deeper understanding of America's history of racial discrimination than many white Americans. In the 1950s, he pioneered opportunities <a href="https://www.nepalitimes.com/here-now/african-americans-in-cold-war-nepal/">for African Americans as diplomats</a>, including in Nepal.In February 1953 Bowles <a href="https://archive.nepalitimes.com/article/nation/land-reform-in-cold-war-Nepal,4192">travelled from New Delhi to Kathmandu</a> to meet with Nepali government officials, including King Tribhuvan, to discuss new American development programs for Nepal. In the previous year the US had started mineral surveys, agriculture, and health programs. But most of all Bowles wanted to discuss land reform.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181144/636be7b79c7e80680e08781bjpeg.jpg" alt="" width="640" height="357"><figcaption> </figcaption></figure>Few Asian countries had starker disparities in land ownership than Nepal. A UN report as far back as 1952 highlighted that fully one-fourth of Nepal's cultivable land was tax-free birta and that the jamindar landlord class held most of the other land. ‘The illiterate peasants,’ the report said, ‘are always exploited by Zamindars and used for state labour.’ Rents ate as much as 50% of each crop.Unequal land distribution seemed to hold Nepal back economically and politically. But it was a tricky issue. How much should Bowles push? Would he alienate powerful Nepalis he hoped to win over to the US side?The early 1950s saw new worlds emerge. In the previous five years, three huge earthquakes had shaken South Asia's political landscape: Indian independence from Great Britain (1947), the Chinese communist party's takeover of China (1949), and war in Korea (1950).<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181144/636be7b89c7e80680e08781cjpeg.jpg" alt="" width="300" height="422"><figcaption> </figcaption></figure>Both Nepal and the US stood at the crossroads. In Nepal, after the Rana regime that had ruled for a century collapsed in 1950, a new coalition government promised democracy and development.The U S had emerged from World War II Asia's most dominant power. The British departed. War between North and South Korea had intensified Cold War competition between the Soviet Union and its communist allies and the United States and its democratic capitalist allies all over Asia, particularly those, like Nepal, near China's borders. ‘The invasion of Tibet by Chinese Communists,’ Bowles wrote in 1952, ‘has catapulted Nepal into the front line of the cold war.”To bolster Nepal, the U S relied upon India’s security umbrella, but also economic development programs. The US gave taxpayer dollars for health and agriculture programs in Nepal for altruistic reasons, but also for geopolitical gain. But would these programs succeed without more equal access to the single most essential resource in Nepal's rural society: land?On one hand, pushing for land reform could be seen as a kind of internal interference, an overreach that smacked of imperialism. Even if in the name of greater equality, what gave the US the authority to judge right and wrong and to decide the path for change? And didn't the US have its own huge problems of inequality?On the other hand, the US was giving hard-earned resources for programs desperately needed in Nepal. Bowles wanted those programs to be effective. It might be convenient to partner with the castes, classes, and genders that ran Nepal, but wouldn't that just reinforce them? Today, especially in the wake of Acemoglu and Robinson's influential 2012 book Why Nations Fail, ideas of ‘inclusive institutions’ and ‘inclusive development’ have become conventional wisdom among development professionals. Wasn't Bowles simply pursuing an early variant of this?In a candid letter from early 1953, Bowles reflected on exactly this dilemma: how much should an outside country like the US press for internal reforms in Nepal. Bowles noted that the year before he had proposed that US foreign aid be denied to any country not making sincere progress at land reform and other internal reforms. He also noted that many diplomats and policymakers strongly disagreed, seeing his proposal as inappropriate internal meddling.In the end, he decided that donor countries must insist upon certain ‘basic reforms’ within recipient countries or else ‘our aid is wasted’. Pressure for reforms should not be dismissed as interference, as he saw it, because development aid would fail without those reforms. To not push for serious reforms would be not just nonsensical but also counterproductive; it would mean ‘wasted’ aid.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181144/636be7b99c7e80680e08781djpeg.jpg" alt="" width="693" height="847">In the early 1950s, several factors made it easier for Bowles to make these arguments in Nepal. Prominent Nepali Congress leaders like B P Koirala also called for land reform. And it seemed that such efforts would help counter the appeal of Chinese and Soviets calls for resource redistribution. So Bowles wasn't really going far out on a limb.In his 1953 meeting with Tribuvan and his advisers, including some of Nepal's wealthiest men, Bowles pushed hard for land reform. Many American programs in the 1950s, including its flagship program in Chitwan, featured strong land reform programs. In the end, they often failed to deliver much social levelling, but not for lack of trying.American programs in Nepal in the 1950s reflected the reformer hopes of Bowles. <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/how-chitwan-was-opened,4159">Paul Rose</a>, the top US official actually based in Nepal from 1952 to 1958, described U S programs in Nepal as a ‘prescription for revolution’.On 15 December 1960,  Tribhuvan's son Mahendra seized absolute power. For a couple years, the US government continued to push for land reform in Nepal but the push for such reform would not last long. In the early 1960s, people and politics would align in a very different pattern than in the early 1950s.<a href="https://www.nepalitimes.com/here-now/african-americans-in-cold-war-nepal/">Tom Robertson</a>, PhD, is author of  Notes from the Archive: U.S. Ambassador Chester Bowles’s 1953 Letter to King Tribhuvan, about Land Reform and U S Development Programs in Nepal, Studies in Nepali History and Society, December 2020.

Tom Robertson

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America, Nepal and the Royal Coup

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109191116/636beeb34b0ad905ca02ef60jpeg.jpg" alt="" width="1500" height="1112"/><figcaption>Charge d' Affaires L. Douglas welcomes BP Koirala to the US Embassy inaguration in 1959.</figcaption></figure>On 15 December 1960 (पुस १) exactly 60 years ago, King Mahendra ordered the jailing of Prime Minister BP Koirala and other political figures, many of whom the Nepali people had put in power 18 months earlier in Nepal's first-ever election.Ending a decade of democratic experimentation, Mahendra decided to rule the country directly. After his death in 1972 his son Birendra took power. Many of today's top political leaders cut their political teeth in years of underground opposition to the monarchy.The U S government at the time noted that Mahendra's coup was accomplished ‘with great secrecy and superb organisation’. After 1960, the US slowly shifted its approach in Nepal, embracing the monarchy and moving away from democratic reform.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109191116/636beeb64b0ad905ca02ef61jpeg.jpg" alt="" width="600" height="719">Ten years earlier, the globalisation of the Cold War had forced the US to pay more attention to South Asia. After China turned Communist in 1949 and war broke out on the Korean peninsula in 1950, Asian nations, particularly those near China, became hot spots for Cold War competition between the Soviet Union and China on one hand, and the US led capitalist democracies on the other.During the 1950s, believing economic progress and expanded political freedoms would inoculate Nepal against communist influence, the U S offered aid programs and supported democratic reforms. As part of this vision, Washington promoted health and agriculture programs but also, in part to counter populist Communist Chinese programs, pushed for economic leveling programs such as land reform.In the late 1950s, the US grew increasingly concerned as China and the Soviet Union expanded activities in Nepal. A November 1960 National Security document warned that Nepal had become ‘a particularly vulnerable target’.But the US believed that Nepal's 1959 election had strengthened the country. Nepal, the National Security document noted, ‘currently enjoys greater internal stability than heretofore, following the introduction of popularly-based parliamentary government’.The US also thought highly of B P Koirala. A 1960 memo explained, ‘Koirala is intelligent, forceful, respected by his party, and popular with his people.’ He was ‘basically pro-Western and anti-Communist’ and didn't underestimate the communist threat, showing ‘grave concern’ about it.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109191116/636beeb84b0ad905ca02ef62jpeg.jpg" alt="" width="465" height="578">The US had a less positive view of Mahendra. He was seen as anti-communist and as a ‘stabilising and unifying force’ but seemed less forceful, and less consequential. An internal memo discounted him as ‘a conscientious man of simple tastes and austere habits … rather naive politically and not particularly forceful as a ruler … awkward socially, and indecisive’. It noted he had advanced some reforms but that ‘he is firmly convinced that a strong monarchy is necessary to insure stability’.The last lines of an April 1960 US memo raised the possibility of a royal takeover in Nepal, saying the king was not ‘irrevocably committed’ to representative government. But it discounted the possibility: ‘Such a drastic step is not anticipated.’A week after the coup, on 20 December, 1960, CIA Director Allen Dulles told the National Security Council that the King's ‘strange coup’ owed to two reasons: Koirala was ‘too progressive’ and had too ‘close relations’ with India. He warned of a more ‘archaic form of government’.US Ambassador Henry Stebbins met with Mahendra on 21 December, 1960 and cabled Washington to say that the King professed a strong belief in democracy, which he claimed he himself had brought to Nepal. He said he dismissed the Koirala government and imprisoned its leaders because they were guilty of corruption and of aiding and abetting Communism. In a letter to US President Dwight Eisenhower a couple days later, he also blamed poor administration.Stebbins did not buy it. He wrote: ‘Mahendra is guided less by the issues of corruption and Communism than by a growing fear that his own personal position and prestige were dwindling and that if he did not act soon, it might be too late." Stebbins thought the coup might yield ‘disastrous’ results.President Eisenhower addressed the Nepal coup at a 11 January 1961 meeting, just 10 days before handing over the office to John F Kennedy. He was reminded of ‘intensive Bloc efforts to detach Nepal from India's sphere of influence’. The choice was to support the Nepali Congress or create some kind of accommodation between the NC and the king. The US chose accommodation, pointing to ‘the inevitable chaos which would be exploited by the Communists … and the Nepali Congress’ presumed inability to establish a viable government’.But this didn't mean giving the king full legitimacy. As a later document put it, for a short time after the coup, the US maintained ‘correct relations’ with Mahendra but didn't openly back him ‘for fear of alienating the exiled NCP (Nepali Congress Party)’.Things began to shift a year later, by early 1962, even before the dramatic events of later that year on the Sino-Indian border. ‘State is considering a new emphasis in our Nepal policy,’ reported a February memo. Department officials ‘now believe the King will probably stay in power despite the recent sharp increase in NCP-sponsored dissident activity’. They showed new concern the King would turn to the Communist bloc. ‘State feels now may be the time to move closer to him, lest he look increasingly to the Bloc for support.’Democratic values seemed less a concern than power politics. ‘Our chief problem is to keep Nepal from becoming too dependent on Bloc aid, especially from Red China, and to preserve her strong economic ties with India. In the past, we’ve tuned our policy to New Delhi’s.’At first, though, coming round to support the King did not mean the abandoning US efforts at democratic reform within Nepal. Instead, the US hoped Mahendra could be the source of reform. Mahendra, it said, ‘is probably making almost as much progress with economic and social reform as the NCP did’. He appeared to embrace land reform as well.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109191116/636beeb94b0ad905ca02ef63jpeg.jpg" alt="" width="500" height="379">Everything changed in the fall of 1962 when China and India came to blows over disputed Himalayan territory. Catching the Indians flat footed, Chinese incursions spurred a reversal of India's hardline stance toward Mahendra. India abandoned support of Koirala and the Nepali Congress dissidents, and moved to win back Mahendra's favour. The U S lost leverage in Nepal, and land reform lost momentum.Mahendra continued to back भुमी सुधार land reform, but only outwardly. By March 1963, an American Ford Foundation official had noticed a new ‘spirit of complacency’ in Kathmandu on the issue. He wrote: ‘The desire to move ahead with the measures of unquestioned importance for the welfare of Nepal, so evident in September is hard to find now.’A sea change in Nepal politics had occurred. Observers began to see the 1950s as a restoration, not a revolution. The monarchy had returned to full power, not the people. The US, once a strong voice for democracy in Nepal, now supported the king and gave up on programs such as land reform.America's Reform Push in 1950s NepalVisiting Kathmandu in 1953, US Ambassador to India and Nepal Chester Bowles confronted a tricky issue: As an outsider working in a starkly hierarchical society, how much should you work with the existing power structure and how much to push for change?Nepal's land ownership patterns, some of the most unequal in Asia, spurred Bowles to ponder this question. He had come to Nepal to meet with Nepal's King Tribhuvan to discuss land reform. How hard should the U S push?Many foreigners in Nepal do not see the country's harsh hierarchies. Or they see parts, such as class and gender divisions, but miss more unfamiliar caste and ethnic divisions. I still remember my disappointment visiting Dang a few years ago after the end of the Maoist war, and learning that, of the many foreign volunteers working in the district, all of whom lived with local families, not one lived with a Tharu or Dalit family.But Bowles had an unusual background, and the early 1950s were a special moment. He had emerged from a progressive tradition, connected to the Great Depression of the 1930s, that had emphasised structural poverty and social reform. And because of family relations, he possessed a much deeper understanding of America's history of racial discrimination than many white Americans. In the 1950s, he pioneered opportunities <a href="https://www.nepalitimes.com/here-now/african-americans-in-cold-war-nepal/">for African Americans as diplomats</a>, including in Nepal.In February 1953 Bowles <a href="https://archive.nepalitimes.com/article/nation/land-reform-in-cold-war-Nepal,4192">travelled from New Delhi to Kathmandu</a> to meet with Nepali government officials, including King Tribhuvan, to discuss new American development programs for Nepal. In the previous year the US had started mineral surveys, agriculture, and health programs. But most of all Bowles wanted to discuss land reform.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109191116/636beebb4b0ad905ca02ef64jpeg.jpg" alt="" width="640" height="357"><figcaption>Chester Bowles Papers (MS 628). Manuscripts and Archives, Yale University Library</figcaption></figure>Few Asian countries had starker disparities in land ownership than Nepal. A UN report as far back as 1952 highlighted that fully one-fourth of Nepal's cultivable land was tax-free birta and that the jamindar landlord class held most of the other land. ‘The illiterate peasants,’ the report said, ‘are always exploited by Zamindars and used for state labour.’ Rents ate as much as 50% of each crop.Unequal land distribution seemed to hold Nepal back economically and politically. But it was a tricky issue. How much should Bowles push? Would he alienate powerful Nepalis he hoped to win over to the US side?The early 1950s saw new worlds emerge. In the previous five years, three huge earthquakes had shaken South Asia's political landscape: Indian independence from Great Britain (1947), the Chinese communist party's takeover of China (1949), and war in Korea (1950).<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109191116/636beebc4b0ad905ca02ef65jpeg.jpg" alt="" width="300" height="422"><figcaption>The cover of Bowles’ book, Ambassador’s Report, 1954</figcaption></figure>Both Nepal and the US stood at the crossroads. In Nepal, after the Rana regime that had ruled for a century collapsed in 1950, a new coalition government promised democracy and development.The U S had emerged from World War II Asia's most dominant power. The British departed. War between North and South Korea had intensified Cold War competition between the Soviet Union and its communist allies and the United States and its democratic capitalist allies all over Asia, particularly those, like Nepal, near China's borders. ‘The invasion of Tibet by Chinese Communists,’ Bowles wrote in 1952, ‘has catapulted Nepal into the front line of the cold war.”To bolster Nepal, the U S relied upon India’s security umbrella, but also economic development programs. The US gave taxpayer dollars for health and agriculture programs in Nepal for altruistic reasons, but also for geopolitical gain. But would these programs succeed without more equal access to the single most essential resource in Nepal's rural society: land?On one hand, pushing for land reform could be seen as a kind of internal interference, an overreach that smacked of imperialism. Even if in the name of greater equality, what gave the US the authority to judge right and wrong and to decide the path for change? And didn't the US have its own huge problems of inequality?On the other hand, the US was giving hard-earned resources for programs desperately needed in Nepal. Bowles wanted those programs to be effective. It might be convenient to partner with the castes, classes, and genders that ran Nepal, but wouldn't that just reinforce them? Today, especially in the wake of Acemoglu and Robinson's influential 2012 book Why Nations Fail, ideas of ‘inclusive institutions’ and ‘inclusive development’ have become conventional wisdom among development professionals. Wasn't Bowles simply pursuing an early variant of this?In a candid letter from early 1953, Bowles reflected on exactly this dilemma: how much should an outside country like the US press for internal reforms in Nepal. Bowles noted that the year before he had proposed that US foreign aid be denied to any country not making sincere progress at land reform and other internal reforms. He also noted that many diplomats and policymakers strongly disagreed, seeing his proposal as inappropriate internal meddling.In the end, he decided that donor countries must insist upon certain ‘basic reforms’ within recipient countries or else ‘our aid is wasted’. Pressure for reforms should not be dismissed as interference, as he saw it, because development aid would fail without those reforms. To not push for serious reforms would be not just nonsensical but also counterproductive; it would mean ‘wasted’ aid.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109191116/636beebd4b0ad905ca02ef66jpeg.jpg" alt="" width="693" height="847">In the early 1950s, several factors made it easier for Bowles to make these arguments in Nepal. Prominent Nepali Congress leaders like B P Koirala also called for land reform. And it seemed that such efforts would help counter the appeal of Chinese and Soviets calls for resource redistribution. So Bowles wasn't really going far out on a limb.In his 1953 meeting with Tribuvan and his advisers, including some of Nepal's wealthiest men, Bowles pushed hard for land reform. Many American programs in the 1950s, including its flagship program in Chitwan, featured strong land reform programs. In the end, they often failed to deliver much social levelling, but not for lack of trying.American programs in Nepal in the 1950s reflected the reformer hopes of Bowles. <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/how-chitwan-was-opened,4159">Paul Rose</a>, the top US official actually based in Nepal from 1952 to 1958, described U S programs in Nepal as a ‘prescription for revolution’.On 15 December 1960,  Tribhuvan's son Mahendra seized absolute power. For a couple years, the US government continued to push for land reform in Nepal but the push for such reform would not last long. In the early 1960s, people and politics would align in a very different pattern than in the early 1950s.<a href="https://www.nepalitimes.com/here-now/african-americans-in-cold-war-nepal/">Tom Robertson</a>, PhD, is author of  Notes from the Archive: U.S. Ambassador Chester Bowles’s 1953 Letter to King Tribhuvan, about Land Reform and U S Development Programs in Nepal, Studies in Nepali History and Society, December 2020.

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba4e59c7e80680e073690jpeg.jpg" alt="" width="1125" height="844"/><figcaption>King Birendra designed this three-storey cottage named Shree Sadan for his family when he was Crown Prince. It will soon be open to the public, and has preserved the rooms exactly like it was when the entire royal family was killed in a massacre in 2001.</figcaption></figure>When <a href="http://archive.nepalitimes.com/news.php?id=18278#.XyvRz4gzbIU" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D18278%23.XyvRz4gzbIU&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNEMDOjs0Q__r5yzqk3y4KnEOM3DbQ">Narayanhiti Palace</a> was opened to the public in 2009 soon after Nepal was declared a <a href="https://archive.nepalitimes.com/article/nation/nepal-from-royal-to-republic,3736" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://archive.nepalitimes.com/article/nation/nepal-from-royal-to-republic,3736&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNFzk-FZmp9_uF7TZbIDq9ksZbxx5Q">republic</a>, Nepalis flocked in to see what daily life of the royals looked like. They were not impressed.Many thought they would also see Tribhuvan Sadan, the building where the 2001 family massacre took place in which<a href="http://archive.nepalitimes.com/news.php?id=18246#.XyvKMYgzbIW" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D18246%23.XyvKMYgzbIW&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNEqs-7ecqRU__rrDrjApuAv6iFXXw"> ten members of the royal family were killed</a>, and which was later demolished.The pink pagoda shaped building with a tower designed by American architect Benjamin Polk was a ceremonial structure for official functions, and there was not much to see there about the private life of royals.Now, the Narayanhiti Palace Museum is set to open Shree Sadan, King Birendra’s private family residence, which has been kept intact since the <a href="http://archive.nepalitimes.com/news.php?id=8338#.XyvJuYgzbIU" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D8338%23.XyvJuYgzbIU&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNEOCPm9GlBmc0iJNiguhP4cCLSrZw">massacre at 8:45 PM on Friday, 1 June 2001</a>.Nepali Times got an exclusive sneak preview of Shree Sadan this week, and it is like a time capsule – <a href="http://archive.nepalitimes.com/news.php?id=10777#.XyvMSIgzbIU" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D10777%23.XyvMSIgzbIU&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNGvrL28ueQ0BKNZpuFCX6fQ8gIBeQ">Prince Nirajan</a>’s room still has his class timetable stuck to the wall, the alcove bar has King Birendra’s favourite brandy, and in the bedroom is a small cot where the king’s beloved German Shepherd, Jit, used to sleep.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba4e89c7e80680e073691jpeg.jpg" alt="" width="960" height="720">“Everything is the same as it was 20 years ago, we wanted it to be as it was, a place where our king, queen, princes and princesses walked, this place holds attachment, and tampering with the memories would be a disservice to Nepal’s history,” says Buddhi Bahadur Gurung as he walks through the dark and slightly musty-smelling rooms.This is an emotional project for 54-year-old Gurung, who worked closely with <a href="http://archive.nepalitimes.com/news.php?id=8412#.XyvLKogzbIU" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D8412%23.XyvLKogzbIU&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNGeCUSJ9L4IT2nNkCNxYQQBL4UGPQ">King Birendra</a> ever since he was employed at the royal palace at the age of 21. He is now entrusted with sprucing up Shree Sadan so it can be added to the Narayanhiti Museum once the COVID-19 lockdown is fully lifted.Despite the coronavirus restrictions, workers have used the past four months preserving the artefacts in Shree Sadan, while taking care not to disturb anything in the rooms. The building lies  between the current museum and the Republic Memorial to the east.<a href="http://archive.nepalitimes.com/news.php?id=8252#.XyvM0YgzbIU" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D8252%23.XyvM0YgzbIU&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNGc1b0k3_N99uTD9MCTxraR1yAFxA">At Chhauni, 1-4 June 2001</a>, Dr Upendra DevkotaEntering the lush driveway, visitors will be reminded that this was the route King Birendra took every day as he went to and from his office with Jit. There is a deep stillness in the air, and Shree Sadan has a raw and foreboding look.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba4eb9c7e80680e073692jpeg.jpg" alt="" width="960" height="720">Gurung remembers King Birendra as a simple man with plain tastes, and did not want an ostentatious building: “He preferred it this way, he loved the natural charm of the brick and tiles.”<a href="https://archive.nepalitimes.com/article/from-nepali-press/A-suitable-prince,2423" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://archive.nepalitimes.com/article/from-nepali-press/A-suitable-prince,2423&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNFNAjv0Qh-bv9vVdDIYVbjwsnV8Cw">Crown Prince Dipendra</a> did not live in Shree Sadan because royal tradition demanded that he stay separately from his parents once he turned 18. He had moved to Tribhuvan Sadan, where the shooting of the royal family took place in 2001 during a regular royal family dinner gathering.Birendra had also moved out of the home of his father, King Mahendra, when he turned 18. That is when he built the 3-storey and 12-room Shree Sadan for himself.The main door leads to a red carpeted hallway and a double staircase with a portrait of the extended royal family on the left. The shelf centres a painting of King Birendra’s mother, Queen Indra – her immaculate beauty captured on a crystal frame. In contrast, the hallway also has some grisly taxidermy heads of bears, deer and mountain goats along the wall, a life-size mirror reflecting them.<a href="http://archive.nepalitimes.com/issue/293/Headline/11506#.XyvRLYgzbIU" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/issue/293/Headline/11506%23.XyvRLYgzbIU&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNEDVIynu33aH-wFZUGVAi689ZtDTA">Cut and cleanly</a>, Kunda Dixit<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba4ed9c7e80680e073693jpeg.jpg" alt="" width="1250" height="1610">The ground floor has the study of King Birendra and <a href="http://archive.nepalitimes.com/issue/293/Headline/11506#.XyvRLYgzbIU" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/issue/293/Headline/11506%23.XyvRLYgzbIU&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNEDVIynu33aH-wFZUGVAi689ZtDTA">Queen Aishwarya</a>, which was Crown Prince Dipendra’s bedroom before he moved out in 1988.The living room has portraits of Dipendra, Princess Shruti and Prince Nirajan, and the dining hall has a large brown marble table under a blue ceiling where only the family was allowed.Off the dining area is a small alcove bar where King Birendra sometimes hosted his brothers for after-dinner drinks and a cigar. He would pour himself a brandy, and fix drinks for Prince <a href="http://archive.nepalitimes.com/news.php?id=8986#.XyvKzIgzbIU" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D8986%23.XyvKzIgzbIU&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNEWT3vGN0LEwDCPH13w01gNtUPADA">Gyanendra</a> and Prince <a href="http://archive.nepalitimes.com/news.php?id=8999#.XyvO-4gzbIU" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D8999%23.XyvO-4gzbIU&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNHFL_bPTVkhGRlrqRqbPAFtSR7pMQ">Dhirendra</a>.Upstairs, the first floor leads to the King and Queen’s personal chambers and the hallway has oil-on-canvas paintings of landscapes and wildlife by Princess Shruti, an accomplished artist herself.<a href="http://archive.nepalitimes.com/news.php?id=18278#.XyvRz4gzbIU" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D18278%23.XyvRz4gzbIU&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNEMDOjs0Q__r5yzqk3y4KnEOM3DbQ">Tyaha raja rani hunthyo</a>, Rabi ThapaTo the left is a common living room, with blue themed walls and furniture. There is a bulky cathode-ray Sony tv set and a stereo with cassette tapes in a corner. This area leads to Queen Aishwarya’s vanity room where there is a small dressing area with a three-sided mirror table, a partition for changing. Adjoining it is a puja kotha (prayer room).<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba4f09c7e80680e073694jpeg.jpg" alt="" width="750" height="1000"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba4f39c7e80680e073695jpeg.jpg" alt="" width="1000" height="1334">The living room, bedrooms, dining hall and even the bar alcove show the king's simple lifestyle and plain taste.To the right on the first floor is the personal room of the King and Queen which is modest, almost frugal. A 1990s National tv set faces a king-sized bed attached to a mirror that goes up to the ceiling. The side table has a dial telephone along with a framed image of Khaptad Baba. The bathrooms are simple with pink tiles, a bathtub, a small mirror and ordinary sink.Next to the door is a small cot for King Birendra’s favourite pet, Jit the German Shepherd. Jit died soon after the royal massacre. “It was depression,” Gurung says.Princess Shruti and Prince Nirajan lived on the second floor. To the right of the hallway is Nirajan’s chamber: his study room, bedroom and a small terrace with a punching bag, where he often practiced boxing. Nirajan was 23 when he was killed.The Prince’s study room had stickers of cartoon characters Goofy and Mickey Mouse. He has a collection of Laughing Buddha figures on his shelf, and picture frames on the wall. Everything is as it was 20 years ago – even Nirajan’s class schedule for Kathmandu Management College pinned to the wall and a weekly schedule printed in dot matrix: ‘Wake up at 6.30 and head to bed by 23.00. Friday wake up at 10 am and FRIDAY NIGHT from 19.00 to 23.00.’<a href="http://archive.nepalitimes.com/news.php?id=8339#.XyvJpogzbIU" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D8339%23.XyvJpogzbIU&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNHPR-EtIoIq_0AKcb1_9edSsYIErQ">If truth to be told</a>, Kunda Dixit Princess Shruti’s room is different. She was two years older than Nirajan, and it is more feminine: pink flowered closets, family portraits, single bed, study table with VCR tapes which she often shared with her brother. In the driveway below Shree Sadan are three small toy cars -- black, red and white – in which the three siblings often played when they were children.The opening of Shree Sadan has been delayed by the pandemic and bureaucratic hurdles. But Director of the Narayanhiti Palace Museum Bhesh Narayan Dahal says they are being sorted out: “Yes there were a lot of delays and mismanagement, but we don’t want to wait any further. There is much more of an <a href="http://archive.nepalitimes.com/news.php?id=8985#.XyvLRYgzbIU" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D8985%23.XyvLRYgzbIU&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNEyddHjnjp-HWHCTi9M4ERmYsvxCw">emotional connection</a> with the royal family in Shree Sadan and it is a searing memory of the tragedy.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba4f69c7e80680e073696jpeg.jpg" alt="" width="720" height="462"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba4f89c7e80680e073697jpeg.jpg" alt="" width="606" height="500"><figcaption> </figcaption></figure>Because of his links to the royal family, Gurung was disappointed that visitors were not happy with the ceremonial palace and its exhibits. But he is confident that Shree Sadan will be a much more intimate addition to the museum.There are other sections of the palace that are still out of bounds. Trishul Sadan to the east of the main palace has a salon, medication room, gymnasium, indoor swimming pool and private rooms of the prince and princesses. It has not been opened because it is part of the Mahendra Manjil, still the private residence of<a href="http://archive.nepalitimes.com/news.php?id=17847#.Xyui1IgzbIU" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D17847%23.Xyui1IgzbIU&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNEOb-DHNL1YqctviEnpu2KOrQykuA"> Queen Mother Ratna</a> who is now 92, and was allowed to live there after 2008.<a href="https://archive.nepalitimes.com/article/nation/nepal-from-royal-to-republic,3736" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://archive.nepalitimes.com/article/nation/nepal-from-royal-to-republic,3736&amp;source=gmail&amp;ust=1596794292205000&amp;usg=AFQjCNFzk-FZmp9_uF7TZbIDq9ksZbxx5Q">From royal to republic</a>, Shreejana ShresthaGurung says that although King Birendra had winter and summer palaces in Chitwan, Pokhara and Nagarjun, his favourite was always  Shree Sadan, a place where he truly felt at home and where he liked to relax while gardening and reading.Narayanhiti is named after the Malla-era water spouts near the Narayan Temple. Prime Minister Bir Shumshere Rana, who had his daughter marry King Prithvi Bir Bikram Shah, made a palace for the king as a dowry in the late 19th century.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba4fa9c7e80680e073698jpeg.jpg" alt="" width="1347" height="750"><figcaption> </figcaption></figure>However, that neo-classical palace was destroyed in the 1934 earthquake and King Tribhuvan rebuilt the house called Tribhuvan Sadan -- the building where the massacre took place.Says Buddhi Bahadur Gurung: “We look forward to welcoming visitors to this museum after the COVID-19 crisis. We have put our heart and soul into it to preserve it just as it was two decades ago on the day of the tragedy.”Read also: <a href="https://nepalitimes.atavist.com/three-kings-in-four-days-nepal-massacre">Three kings in four days</a>, Kunda Dixit

Preserving King Birendra’s family home

Nepal’s September protests and regime change created two major unexpected costs that Prime Minister Sushila Karki’s interim government is scrambling to deal with: reconstruction of destroyed government buildings, and holding elections on 5 March.
The buck stops at the desk of economist and former bureaucrat Minister of Finance Rameshore Khanal about where and how to spend limited resources.
“Rameshore-ji is a fresh face and the right person for the role. He is capable and interested, and he knows the system,” says Kalpana Khanal of the Policy Research Institute (PRI).
But Minister Khanal has to grapple not just with the immediate budgeting needs for elections and reconstruction, but also initiate longer term measures to restore investor confidence badly dented by arson and vandalism of 9 September, and mend the economy.
Immediately after taking office, he had set up a three-member task force to cut programs and free up budget to meet immediate expenses.
“We have to hold elections and we have to reconstruct. Both need money, and they are equal priorities for us,” said Ministry of Finance spokesperson Tanka Prasad Pandey. “It is important to find these funds internally, and not look to aid from abroad.”
But Minister Khanal flew into heavy flak last week for his decision to restore investor confidence by giving a strategic capital gains tax break to Nepal’s only foreign private equity fund.
The Mauritius-based Dolma Impact Fund has invested venture capital into Nepal’s hydropower, construction and biotech sectors as well as solar farms and hospitals. It said in a statement that its capital gains are only taxable in Mauritius as per its double-taxation avoidance agreement with Nepal, which predates and overrides the Income Tax Act of 2002 subsequent to the Treaty Act 1990.
“When you have investors from all over the world, you have to choose a domicile and Mauritius is probably the most popular for development finance institutions due to strong governance, AML, and treaties with developing countries like Nepal,” Tim Dolma Investment told Nepali Times on the phone from London.
He added: “Last June we applied for the government to uphold its treaty with Mauritius which under all country laws including Nepal treaty act supersedes any disagreement with domestic laws. But there were delays. It was when the new government decided to uphold the treaty that the whole hoo-hah started.”
Leaks to the media possibly by bureaucrats fearful of being hauled over the coals by the CIAA has set financial circles abuzz for the past week. The Internal Revenue Office refused to grant the exemption, citing the 2002 Act.
Prime Minister Sushila Karki asked Chief Secretary Eaknarayan Aryal for clarification, and learnt that the Cabinet’s decision was not official since it was not recorded in the minutes.
“We were raising a fund that could have brought $1 billion in for energy and we had to stop it due to the reputational damage to Nepal by not upholding an international treaty,” said Gocher.
Gocher added: “Under Nepal’s Treaty Act, if there is ever disagreement between an international treaty and domestic law, then international treaty takes precedence so it is crystal clear and the way international treaties are dealt with all over the world.”
Some experts worry that gifting the fund such perks can set a dangerous precedent and a loss in tax revenue. Professor and economist Pushkar Bajracharya says: “The most important thing is to have a consistent policy about tax cuts and not do it piece-by-piece. Besides, the evidence just isn’t strong that tax cuts lead to higher investment, or more jobs.”
Others hark back to the capital gains dispute of the sale of Ncell ownership, which went to the Supreme Court and all the way to the international tribunal in The Hague.
Khanal has said privately that he is responding to the damage to Nepal’s investment climate from the dramatic visuals beamed worldwide of an international hotel chain and government buildings set ablaze in September. Western embassies are also said to be lobbying to allow Dolma tax exemption and smooth profit repatriation.
There are tradeoffs. Private equity funds like Dolma could funnel foreign funds more efficiently towards successful Nepali companies than the government, which is slowed down by many layers of bureaucracy. The downstream multiplier effect of such investments would outweigh taxes to the government since much of it is misused and wasted.
For example, the government is not taxing income in FY 25/26 generated by the US-funded $697 million Millennium Challenge Corporation (MCC) projects to build transmission lines and upgrade highways.
Strategic tax exemptions do provide incentives to investors, to make sure these projects are carried out effectively, which in turn helps Nepal’s development which has been affected by corruption and mismanagement.
The main demand of the GenZ protests that led to the downfall of the government coalition two months ago was to control corruption and make government more efficient so there is investment and job creation. The interim government seems to be responding to that sentiment.
The Dolma issue has distracted from the larger and longer-term need to reform the country’s financial systems and streamline public expenditure. How to reduce corruption and spur development is going to be the main agenda for elections, and the criteria by which voters will select candidates and parties.
TASKED FORCE
Shortly after Rameshore Khanal was appointed he set up a three member task force made up of the heads of Budget and Program, Foreign Aid, and Revenue Management Divisions. The team sent through the budget culling items DOGE-style — projects deemed ‘inadequately prepared,’ ‘fragmented,’ or ‘included through political pressure.’
Khanal hoped to save up to Rs100 billion by cutting all projects less than Rs30 million. However, such a slash and burn method would hurt rural and remote area projects for health and education more, and much bigger corruption-ridden infrastructure projects would be unscathed.&nbsp;
Says Bajracharya, “There are thousands, maybe hundreds of thousands of low-return programs in the budget that are there because of political or personal influence. But the criteria for cutting them needs to be properly defined. Doing it arbitrarily is unacceptable.”&nbsp;
Kalpana Khanal of the Policy Research Institute was involved in the taskforce, and explains: “The decision to mobilise internal funds is a pragmatic move to fund elections and reconstruction.”
However, she also singles out the massively-funded Ministry of Physical Infrastructure and Transport as being particularly problematic: “Time and cost overruns are historically the norm, and many are ‘vote bank’ projects that are politically motivated rather than done for return on investment.”
For example, politicians use their influence to build roads to their home districts to secure popularity even if the funds would have been better spent elsewhere.
“Another problem is the amount of funds that are transferred randomly for things that outside the budget,” continues Khanal.
Bajracharya adds, “While reconstruction and elections are big financial commitments, Nepal could easily find the funds. Cancelling low impact programs is a good move by the ministry of finance, and another option could have been to raise customs or taxes by a few percent. The main problem is that a huge amount of funds are lost to corruption.”
Kalpana Khanal and Dilli Raj Khanal co-authored a technical report last year titled Improving Public Expenditure System in Nepal: Critical Areas of Reform which did a forensic examination of such wasteful projects.
The conclusion: recommendation to have stricter accountability measures in place to check the actual use of funds and merit-based appointments in the National Planning Commission, Ministry of Finance, and the CIAA.
The technocrats in Prime Minister Karki’s cabinet resonate with the latter point. Nepal is so entrenched in the ‘afno manche’ culture of nepotism and connections that it has become the norm.
The report also refers to the well-known off-budget ‘re-allocations’ of big outlays during the seventh and first months of the fiscal year that undermine in-built check and balance. Almost a quarter of the budget is spent in the last month, which results in low quality and low impact work.
The authors call for reward and punishment systems to prevent these practices. The CIAA could also be supercharged to build transparency into the digital Line Ministry Budget Information System, instead of being an agency for political vendetta.

Nepal needs to use its money better

At the opening plenary of COP30, which stands for the convolutedly named 30th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), in Belém on Tuesday, Nepal brought up the threats to the Himalayan watershed. Nepal’s delegate Rajendra Prasad Mishra, Secretary at the Ministry of Foreign Affairs, also spoke on behalf of Bhutan and Bangladesh after the three countries formally called for tripling grant-based adaptation financing from 2015 levels to at least $120 billion per year by 2030, and to ensure a more simplified, scaled-up access to finance their National Determined Contributions (NDCs) to reduce emissions and adapt to climate impacts. “Bhutan has already graduated from Least Developed Country (LDC) status, while Bangladesh and Nepal are in the process of graduation,” said Mishra. “Graduation reflects development progress, but does not reduce our climate vulnerability nor the scale of support required to safeguard development gains.” The Loss &amp; Damage Fund is also finally coming into effect, so countries can now apply for $5-20 million to make up for damage from climate impact. But claiming damage and linking disasters to climate breakdown has not been an easy process. “When a 200MW hydropower plant is destroyed by a glacial flood, it is a big loss for Nepal’s GDP. Every megawatt costs us $20 million to build,” says energy entrepreneur Kushal Gurung. “Our lobbying should be top-notch, and hydropower can make a good case for us.” Belém marks the tenth anniversary of the Paris Agreement that brought the world together to pledge to keep global average temperature to ‘well below’ 2°C above pre-industrial levels and limit it to 1.5°C.&nbsp; COP has also returned to Brazil after 30 years of the Rio Conference in 1995. Since then there have been numerous summits, which have been criticised for being just hot air and being hosted by fossil-fuel exporting countries like UAE and Uzbekistan. Belém was selected because it is a gateway to the Amazon, but Brazil has now also become a major oil producer after new offshore finds. A recent report shows that compared to 2019, the world is set to reduce its emissions by 12% in 2035 if countries are to implement their Nationally Determined Contributions even though the figure needs to go up to 40% to meet temperature targets. There has been progress. Before the Paris Agreement the world was on a path for 4°C increase during this century, and this has now come down to 2.5°C because of the clean energy transition. But a lot more needs to be done to meet the Paris 1.5°C target. “This progress is proof that multilateralism is working, it is delivering,” Manjeet Dhakal of the Climate Analytics South Asia told us from Belém. “Having said that, it is simply not enough. Emissions need to go down much further, and a lot of it is tied to developed countries providing climate finance to do so.” Many developing countries have adopted ‘conditional NDCs’ which means their emission reduction targets cannot be met without international climate finance. In its third NDC, Nepal set a target of a 17.1% reduction in net greenhouse gas emissions and 26.8% by 2035. But achieving that has a price tag of &nbsp;$73.74 billion, with much of it from international climate finance. UNDERFINANCED However, the climate for climate finance is getting worse. The United States has exited from the Paris Agreement for the second time under President Trump, and there are cutbacks in foreign aid by European funders. Even so, the EU has committed to reducing its emissions by 90% in the next 15 years, 85% of which will be domestic emission cuts. The silver lining in all this is that the leadership in climate action is increasingly being taken by Nepal’s neighbours China and India with both investing heavily in renewable energy. China is the world leader in solar panels, wind turbines and electric vehicles, and Nepal has already taken strategic advantage of this.&nbsp; With expensive hydropower plants increasingly at risk from glacial lake outburst floods, experts say Nepal must diversify its energy mix and invest in solar power which has 10 times more potential than hydropower at 432 gigawatts with over 300 days of sunshine a year. Solar farms can also power pump storage, which are cheaper and quicker to build.&nbsp; China has drastically reduced the cost of photovoltaic cells, making such schemes more feasible. Nepal just needs to ease up its restrictive domestic energy policies, boost investment and resist geopolitical pressure on electricity generation. “First, we need to increase the cap on solar energy from 10% to 30%, and next, the bidding process should be made easier, or just have the first past the post system like that for hydropower,” says Kushal Gurung. The disadvantage of solar power is that it generates only daytime energy, but this can be solved with grid-scale battery storage or pump storage. But first, the government needs to fix the rate for solar purchase so that entrepreneurs are incentivised. “This is not happening because our government officials and engineers are comfortable dealing with hydropower, and are not just updated about the latest advances,” says Gurung. “As a result, we have no clear policies when it comes to solar.” Hydropower has become one of the biggest industries in Nepal with an installed capacity of over 3,400MW and the government’s target is to produce 28,500MW in the next ten years. But the recent climate disasters have made it clear that relying only on hydropower alone is too risky. The Nepal-Tibet glacial flood in July destroyed and damaged four hydropower plants and substations along the Bhote Kosi, and last September’s floods slashed the country’s total generation by half. Nepal now needs to build on the widespread adoption of battery-powered vehicles by extending it to electric public transport and for household appliances like stoves, rice cookers and refrigerators. Not only would this reduce Nepal’s per capita carbon footprint, but it would also reduce the country’s annual Rs300 billion petroleum import bill. At global platforms like UNFCCC, it is easy even for individual developed countries to get lost without an alliance. Now that Nepal is graduating from LDC status, it needs to have strong partners with a common goal to move forward in international negotiations. Says Kushal Gurung: “We won’t have privilege that came with LDC status anymore, which means climate finance will be even more limited. But there are a few things we can urgently do on our own like regulating the carbon credit market.”&nbsp; This article is brought to you by <a href="https://nepalitimes.com/" target="_blank">Nepali Times</a>, in collaboration with <a href="https://inpsjapan.com/en/" target="_blank">INPS Japan</a> and <a href="https://sgi-peace.org/" target="_blank">Soka Gakkai International</a>, in consultative status with UN ECOSOC.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251118101116_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_3" data-image-id="20251118101116_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="Nepali Times SDG"> </figure>

Global warning bell in Belém

Youth protestors who sustained injuries at the hands of state security forces during the September protest staged a sit-in at Maitighar Mandala on Friday, protesting what they have called the interim government’s inadequate efforts to address the demands of the GenZ movements. The demonstrators also sought to bar the UML from gathering at Maitighar, where party chair K P Oli was expected to announce its Youth Volunteer Force on Friday. The organisers consequently relocated the event. Friday’s demonstration at Maitighar comes as UML and GenZ representatives agreed to sit down for talks in Simara, where a curfew was imposed this week after youth protestors and party cadres clashed near the airport as demonstrators sought to stop UML leaders from flying in for a political event to Simara from Kathmandu.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131148_c0b3bfb861f73bee456efbd12f523af55ce3c258742c39e1dea7dbf768774ea5.png" data-media-id="editor_0" data-image-id="20251121131148_c0b3bfb861f73bee456efbd12f523af55ce3c258742c39e1dea7dbf768774ea5" data-rendition-name="original" width="2160" height="1440" loading="lazy" alt="GenZ Maitighar"> <figcaption>Youth protestors who sustained injuries at the hands of state security forces during the September protest staged a sit-in at Maitighar Mandala on Friday. Photos: SUBASH SHRESTHA</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131152_85f3606728d137b334d782ac1b5d1ed6383544493f96ebcc0398fcd9f0c5add7.png" data-media-id="editor_1" data-image-id="20251121131152_85f3606728d137b334d782ac1b5d1ed6383544493f96ebcc0398fcd9f0c5add7" data-rendition-name="original" width="2160" height="1439" loading="lazy" alt="GenZ Maitighar"> </figure>  &nbsp;Nepal’s interim government is increasingly cautious about the nation’s sensitive security situation in the lead-up to the 5 March election, as evidenced by pro-monarchy businessman Durga Prasai’s midnight arrest earlier this week over his inflammatory remarks as he called for protests this month. On Thursday, the Supreme Court ordered the government to present Prasai before the court within 24 hours.&nbsp; As it stands, the UML’s inauguration of a youth collective amidst its disregard for the demands of Nepalis for party reforms and a change in leadership highlights party chair and former PM K P Oli’s continued lack of remorse for the excesses of 8 September.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131144_aaa296e2e812ef5f6473064bc4b679bf605e14e06ac0ec9be1d6d047b56f96f9.png" data-media-id="editor_2" data-image-id="20251121131144_aaa296e2e812ef5f6473064bc4b679bf605e14e06ac0ec9be1d6d047b56f96f9" data-rendition-name="original" width="2560" height="1707" loading="lazy" alt="UML Youth Volunteer Force NT"> <figcaption>The UML launched its Youth Volunteer Force on Friday. Photos: SUMAN NEPALI</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131148_bfa8df3fc382195b4cdb9c4804cd67e169d2d9c0b8d218e61bbef0c4c9dbdaad.png" data-media-id="editor_3" data-image-id="20251121131148_bfa8df3fc382195b4cdb9c4804cd67e169d2d9c0b8d218e61bbef0c4c9dbdaad" data-rendition-name="original" width="2560" height="1706" loading="lazy" alt="UML Youth Volunteer Force"> </figure>  Families of those killed and injured on 8 September have demanded that the ousted PM and home minister be held accountable for state brutality.&nbsp; This week, Human Rights Watch published a <a href="https://www.hrw.org/news/2025/11/19/nepal-unlawful-use-of-force-during-gen-z-protest" target="_blank">comprehensive report</a> concluding that security forces fired indiscriminately on youth-led protestors on 8 September.&nbsp; The human rights watchdog urged the Sushila Karki-led interim government to investigate the excessive use of force as well as arson, vandalism and mob attacks on individuals on 9 September. The government has created a judicial commission to inquire into the deaths of 76 people over two days of protests.&nbsp; “The recent violence in Nepal included serious human rights violations, and those responsible should be held accountable, whether they are security forces or political actors,” said Meenakshi Ganguly, deputy Asia director at Human Rights Watch.&nbsp; She added: “The government should ensure that the investigations are independent, time-bound, and transparent, and that no one found responsible for breaking the law is unfairly protected from proper prosecution.” HRW’s investigation was based on testimony from 52 witnesses, victims, journalists, healthcare workers, politicians, and sources close to security forces. Researchers also verified photos and video footage shared on social media and with researchers; and visited the scenes of protests, properties subjected to arson and vandalism, and hospitals.&nbsp; A police officer said that officers opened fire with lethal force five minutes after the District Administration Office declared an emergency curfew around Parliament. Witness accounts and analysed footage did not show grave and imminent danger to life that would justify the intentional use of lethal force, stated the human rights watchdog in the report.&nbsp; The protestors and witnesses identified security forces who fired live ammunition at the protestors by their uniforms as members of the Armed Police Force (APF) and Nepal Police’s Special Task Force (STF). &nbsp; “They literally aimed at us and started shooting,” said one witness who sheltered behind a barricade as police continued shooting.&nbsp; A retired senior police official said police had failed to follow procedures for dispersing protests and using lethal force.&nbsp; Pathologists at a Kathmandu morgue told HRW that they determined 35 cases of death caused by “high velocity gunshot wounds” to the head, neck, chest, or abdomen.&nbsp; The witness recounted being taken into custody along with 33 other protestors by STF officers in riot gear, and said that police police personnel beat him with batons. Detainees were threatened and their IDs destroyed. Several witnesses said that the mob attacks on businesses, politicians, media companies, and educational institutions were very targeted, noting the absence of security personnel on 9 September as arson and violence raged across the capital.&nbsp; Some suggested that the violence may have been instigated by infiltrators associated with various political movements.&nbsp; On Discord, the platform where a significant number of demonstrators organised, participants noted that while there were calls for peaceful movement in the days leading up to the protest, some on the platform advocated for violence.&nbsp; Human Rights Watch has said that any credible allegations of criminal acts contributing to the violence must be investigated.&nbsp; Said Ganguly: “The authorities should recognise that widespread impunity for human rights violations in the past helped enable the violence that occurred this time in Nepal. It is crucial to reverse the decades-long tendency by successive governments in Nepal to bury investigations and stall prosecutions, and to bring about accountability and security sector reform.”

Security forces targeted protestors disproportionately: HRW

As people move out of Nepal’s trans-Himalayan districts, their faiths migrate with them to the cities and all over the world. The ancient animist faith of Bon Po predates the advent of Buddhism in Tibet, and its last remaining priests and devotees are found in villages like Lubra in Mustang and Samling in Dolpo. But as those villages empty out, Bon centres can now be found as far afield as Kathmandu, New York and Tokyo. The first Triten Norbutse Monastery was founded in Tibet in the 14th century by the Bon Master Shen Nyima Gyaltsen. Its monastery in Nepal is below the forested hills of Ichangu on the western outskirts of Kathmandu.&nbsp; Many are surprised to hear that there is a Bon centre in Kathmandu, and that it is located so close to Swayambhu. This Triten monastery was established by Yongzin Tenzin Namdak Rinpoche only 40 years ago to cater to adherents of the faith who lived in the capital. True to its reverence for nature, the shrine is verdant, with plants and flowers amidst a contrasting backdrop of Kathmandu’s ugly urban sprawl below. The monastery practices Bon culture and passes on teachings to students as well, who after completing 15 years of study graduate to become ‘Gese’.&nbsp; It is believed that Bon Po was brought to Nepal from Tibet by Tonpa Shenrab Miwoche. Over the centuries, Bon and Buddhism have become syncretic in Dolpo and Mustang, despite the differences in their belief systems. Followers worship nature and consider the human body, speech and mind as jewels. The human body is said to be composed of five elements: earth, water, fire, air, and the cosmos.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111148_ce5d50db6757c4f5a7259c10d2879ee5f5b7b990e987bf3734378ba464afc9d5.jpg" data-media-id="editor_0" data-image-id="20251113111148_ce5d50db6757c4f5a7259c10d2879ee5f5b7b990e987bf3734378ba464afc9d5" data-rendition-name="original" width="5712" height="4284" loading="lazy" alt="The Bon Po way of life NT"> </figure>  The Bon faith was much more widespread during the reigns of Nyathi Chenpo, the first king of Tibet to Namri Srongchen, the 32nd king. But it was after King Srongchen Gompo that Buddhism started making inroads on the plateau, and spread also in the Himalayan rimlands. There are also Bon followers in Humla, Jumla, Baglung, Mugu, Kaski and Chitwan, as well as in the United States and 50 other countries, indicating the movement of people within Nepal and outside.&nbsp; The Bon religion believes in reincarnation and that everything, including positive and negative thoughts are a result of past life karma. Buddhism focuses more on attaining Nirvana, a state of no suffering, where the subject is released from all his/her karmas. Bon has also inducted some Tantric practices and rituals, some of which are in parts similar, yet still different from Buddhism.&nbsp; “In Buddhist culture, circumambulation of shrines is clockwise, but in Bon culture, circumambulation is in an anticlockwise direction,” explains Chhiring Lama of Triten Norbutse Monastery. “The main Bon mantra is Om Ma Tri Mu Ye Sa Le Du, while followers of Buddhism chant Om Mani Padme Hum. Buddhism emphasises enlightenment by meditation and moral behaviour, while Bon beliefs centre on nature and ancestor worship, and placating the spirits. In religious texts, it is mentioned that there were 1,008 Buddhas throughout time. Tonpa Shenrab is believed to be the 8th Buddha, and Bon practitioners are guided by his teachings contained in 140 sacred writings known as Kangyur and 300 more scriptures known as Katen.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111152_9813ce72805941af4b3bfb3c80c7e45ffc8aca4f2612eb967e84204f3a28bc07.jpg" data-media-id="editor_1" data-image-id="20251113111152_9813ce72805941af4b3bfb3c80c7e45ffc8aca4f2612eb967e84204f3a28bc07" data-rendition-name="original" width="4032" height="3024" loading="lazy" alt="The Bon Po way of life NT"> </figure>  “We worship nature and its elements and the prayer flags contain religious texts and when the wind blows through it we consider it a prayer,” says Chhiring Lama. “We also worship ponds for the water and consider fire as a sacred element as well. We also consider snakes sacred, therefore worship ponds, considering them as the place of residence.” The interdependence between human beings and nature is clearly depicted through such traditions and practices which carry relevance today as the planet faces the crisis of climate breakdown.&nbsp; Important gods worshiped include Satrig Ersang, Shenlha Okar, Sangpo Bumtri, and Tonpa Shenrab Miwoche. But what is similar to Buddhism is an offering known as ‘torma’, a cone shaped ritual offering made from flour dough. Many Bon faithful are vegetarian, or abstain from meat during festivals.&nbsp; Over time, the rise of Buddhism in Tibet and beyond overshadowed Bon, pushing many of its practices to the margins. Yet, the tradition continues to live on, carried by those who see in it a deep connection to nature, the spirit world, and the roots of Tibetan culture.&nbsp; In many ways, the endurance of Bon is a reminder that even the quietest faiths hold timeless truths, waiting to be remembered and valued. Followers of Bon today are far fewer, and the knowledge about its traditions is not as widespread.&nbsp; “As time goes on, people adopt rituals and cultures that are more convenient to their daily lives,” says Chhiring Lama. “But that means forgetting or leaving behind one’s indigenous and ancestral roots.”

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Security forces targeted protestors disproportionately: HRW

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