“Yesterday I heard a song called Yo Man Ta Mero Nepali Ho by the band 1974AD. Do you know what happened in the year 1974?” asks South Korean Ambassador Taeyoung Park as he sat for an interview with Nepali Times. “It was the year Nepal and the Republic of Korea established diplomatic ties.” South Korea is one of the most sought-after labour destinations among Nepalis. Salaries are higher, labour rights are guaranteed and working conditions are much better than elsewhere. There are now nearly 100,000 Nepalis in Korea, working primarily in agriculture and manufacturing. At the same time, Korean pop culture, food and fashion have increasingly taken over the lifestyle of urban youth in Nepal. Korea’s soft power has become a powerful draw for Nepali youth. As Nepal and Korea prepare to mark 50 years of diplomatic relations, Park spoke to Nepali Times, reflecting on five decades of bilateral cooperation as well as the potential for tourism, trade, and better-paying jobs for Nepalis in Korea. Excerpts of the interview: Nepali Times: How have the 50 years been for Nepal and Korea? Taeyoung Park: It has been a journey of solidarity. We have been sharing prosperity between the two countries especially after we started taking migrant workers from Nepal through the Employment Permit System (EPS) in 2007. Nepali migrant workers have been helping the Korean economy prosper and Korea has shared its skills and knowledge. That exchange, I believe, solidified the foundation of friendship between the two countries. It was through this exchange that we started to understand each other better and share prosperity. Tens of thousands of Nepalis spend 5-10 years of their life in Korea gaining skills, knowledge and experience. Just last year, 20,000 Nepalis went to Korea for foreign employment, the record highest annual number to date. For 2024, there is a national quota of 165,000 foreign workers, and we hope to increase the number of Nepali workers. Nepal is also the biggest contributor among 16 EPS partner countries in Asia. Korea has a labour shortage due to its low birth rate, so we will continue to draw low-skill migrant workers from Nepal and prioritise human rights and labour rights providing them with the same conditions and protection that domestic workers enjoy. As of now, our need is for low-skilled Nepali workers, but bilateral relations between the two countries have also opened a wider window for skilled labourers. We would be happy to have more talented Nepali workers, they are known in Korea to be hardworking and reliable.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024012702010_63b4098fcc2a714644b344392d889b7a2313170f9123bfed22043dc84f1bff9b.jpg" data-media-id="editor_0" data-image-id="2024012702010_63b4098fcc2a714644b344392d889b7a2313170f9123bfed22043dc84f1bff9b" data-rendition-name="original" width="2000" height="2667" loading="lazy" alt="Taeyoung Park"><figcaption>Photo: KUNDA DIXIT</figcaption></figure>  Last month, two Nepalis were killed during an EPS protest in Kathmandu. How can the system be better regulated? We were very saddened by the incident. I would like to share my sincere condolences to the families of Mr Rawat and Mr Shah who lost their lives. We have a separate EPS office that has been working closely with the Nepal government trying to sort out the problem. We will continue the practice of working closely. That being said, what we also have to understand is that there is a huge demand and supply gap. We are working with headquarters to increase the quota for Nepali workers, but the demand for jobs is much higher than supply of labour in Korea. When the demand and supply do not match, managing human resources does become a problem. The problem arises when there is too much demand, there have to be measures to calm down the demand. What do you think is the potential for closer Nepal-Korea bilateral ties? There are 3Ps in diplomacy: peace, people and prosperity. In terms of peace, our two countries have had no problems. There has always been a cooperative relationship between Korea and Nepal. Second is the people. Through the EPS system for labour and with tourism, people from both countries have had the chance for cultural and economic exchange. Citizens of both our countries have an affinity with each other. As for prosperity, there are many ways to prosper. Korea’s post-war prosperity rested on private-sector led growth. Investment by the private sector can be the new arena that can help Nepal’s economy flourish. Nepal is a priority country for Korean development cooperation. Foreign investors are entirely business people, not so much NGOs or philanthropists. Korea is the fourth largest investor in Nepal, and I see much potential for foreign investors here in Nepal. Although it might be too early to say, we are working on drawing up a bilateral investment treaty. Meanwhile, the Nepal government can also work on building a base to attract more Korean investors. What sectors have been of interest to the Korean government and private sector investors? We believe in the power of human resources, it is what our country is built on. Our initiatives in capacity building and vocational training in provinces like Bagmati, Gandaki and Lumbini is a reflection of our focus on human resources. We intend to have at least one vocational training centre in each province. Nepal’s energy sector is also something Korea is interested in. Korea has already invested in three hydropower plants: Modi Khola which was completed in 2000 and the Chameliya in 2018. The most recent investment was on the Upper Trisuli-1 hydropower plant which is to be completed in 2027, and this is the biggest project so far with 216 megawatt generation capacity. And then, there's the manufacturing sector. Samsung Electronics has been operating a tv Factory here in Nepal for almost a year now. Hyundai Motors of Korea and Nepal’s Laxmi Group have collaborated to assemble up to 5,000 automobiles a year from a factory in Nawalparasi district. Hi-mo's Nepal Mandumo is a Korean wig company which has opened a factory here creating job opportunities for 680 Nepali women. At the same time, Nepali herbs, tea, organic coffee and pashmina are things have a potential market in Korea. How can Nepal be made a more attractive destination for Korean tourists? Statistics show that Korea falls in the ninth position in terms of tourist arrivals. Last year the number of Korean tourists was around 24,000, and it is likely that we can reach the pre-pandemic number of 40,000. The spiritual link that connects Korean Buddhists to Nepal does increase the probability of more Korean tourists arriving in Nepal. Nepal being the Buddhist pilgrimage site has historical importance for the Korean Buddhists. The other link can be hiking and trekking. Koreans love to hike. Hiking and trekking in the Everest region is a dream for Korean hiking enthusiasts. The civil aviation authorities of the two countries are working to increase flights between Seoul and Kathmandu, including for Nepal Airlines. How can Nepal and Nepalis benefit more from Korea’s labour market in future? Two-thirds of the migrant workers from Nepal in Korea work in manufacturing industries and the rest in the agricultural sector. They are contributing greatly to Korea’s economy. But we do not want the benefits of their labour limited to our country, we want the returnees to utilise the skills and knowledge they gained over the years for their own entrepreneurial ventures when they return to Nepal. That is why, apart from other sectors, fostering education and entrepreneurship have also been our areas of interest. It is education that will pay off in the long run. Nepalis deserve better opportunities and high quality education. Our KOICA office is also helping with the Returnee Integration Program to help Nepali workers coming back from Korea get a new start. In the near future, we want to see Nepal as a country with a self-sustained economy. I would love to see Nepal where Korea is today.

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

1250x600

1084x550

“Yo Man Ta Mero Nepali Ho”

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721c669c7e80680e0bd48djpeg.jpg" alt="" width="1765" height="903"/><figcaption>A caravan of yaks carrying salt heads south. SOURCE: JAG BAHADUR BUDHA</figcaption></figure>While it is unclear when and how salt was first introduced to Nepal’s culture and cuisine, what is clear is that Tibetan salt was once the foundation of our Himalayan economy and livelihood.From the Walung, Lhomi, Bhote, Sherpa, Byasi Souka, Mugali, Nyinba, Dolpo, and Nisyangba, the ethnicities on Nepal’s Himalayan rimland from Taplejung in the east to Humla and Darchula in the far west have historically shared socio-cultural and religious ties with Tibet.The relationship between the southern flanks of the Himalaya with the Tibetan plateau extended to trade at a time when agriculture and livestock were the main means of livelihood on both sides of the mountains. Before 1850, Nepal imported rock salt, wool, powdered gold, horses and yaks from Tibet, and exported grain, spices, knives, fabric, handicrafts and more.In 1774, Prithivi Narayan Shah’s Gorkha expansion had led to the annexation of regions controlled by Darjeeling as well as the town of Bijaypur in the Limbuwan region which was then ruled by Sikkim.This angered the Tibetans, effectively souring relations and bringing trade to a standstill. This caused a shortage of salt in Nepal, which traders would try to remedy by smuggling it through high Himalayan passes.Nepal and Tibet fought wars in subsequent years over minting coins to trade disputes. But this did not affect the secret crossborder trade since the Nepal-Tibet border was so rugged and remote it could not be fully policed.Nepal and Tibet finally signed a treaty in 1856 to officially resume cross-border trade, allowing free travel and trade to resume.Historian Baburam Acharya in his journal China, Tibet and Nepal notes that Nepali merchants bartered rock salt bought down from Tibet for grain from Nepal’s south. In the absence of common currency, bartering these goods was the main form of trade. This barter system remained in place until 1959, writes Wim van Spengen in his book Tibetan Border Worlds: A Geohistorical Analysis of Trade and Traders.The people of Tibet’s Changthang Plateau were largely nomadic, while Nepal’s ethnicities were more settled into farming and pastoralism in the upper reaches of the Tamor, Arun, Dudhkosi in the east, to Budi Gandaki, Marsyangdi, Kali Gandaki in central Nepal, and Bheri, Karnali and Mahakali in the west.Low agricultural yield in these semi-arid trans-Himalayan valleys meant that the communities traditionally depended on cross-border trade with Tibet.Because merchants would have to be away to engage in trade for long periods of time, they divided roles, particularly among brothers, with some of the family members tasked with transporting and trading salt, and others staying behind to manage their homesteads.For this reason, polyandry was convenient and accepted in Himalayan cultures. One woman married to all brothers meant the family remained together with centralised resources, and the women did not become widows if one brother died during the perilous Himalayan traverses.Austrian anthropologist Christoph von Fürer-Haimendorf spent much of his life in Nepal, studying Nepal’s cross-border trade with Tibet, publishing his book Himalayan Traders in 1988. He explores how the market for Tibetan salt extended from Nepal’s high mountains to the foothills and the southern plains.Read also: <a href="https://www.nepalitimes.com/banner/was-tenzing-a-tibetan-nepali-or-indian-it-does-not-matter/">Was Tenzing a Tibetan, Nepali, or Indian? It does not matter.</a>, Lhakpa Norbu Sherpa<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721c699c7e80680e0bd48ejpeg.jpg" alt="" width="960" height="640"><figcaption> </figcaption></figure>The Salt Economy From 1850 to 1959, the indigenous peoples living in the highlands from Taplejung in the eastern Nepal to Humla in the northwest and Mahakali in the far west engaged in the ‘salt economy’ — trading Tibetan salt with the Nepalis across the central hills and the plains.The Walung ethnic group settled on the banks of the Tamor in Taplejung’s Olangchungola, Yangma and Ghunsa regions. Their job was to transport the salt from Tibet down to Maiwakhola, and exchange the goods with the Limbu indigenous groups in the central mountains. The Limbus would then take the salt down to Dharan to barter for grain and cloth.Meanwhile, Nepal’s Bhote and Sherpa put down roots where the Arun river originates in   Sankhuwasabha’s Thudam, Ritak and Topkegola regions. A little further downstream lived farmers from the Lhomi community. The Bhotes and Sherpas would barter salt for the potatoes and grains grown by the Lhomis. Similarly, the Sherpa of the Khumbu region bought and transported rock salt from Tingri in Tibet across the Nangpa La and traded it with the Rai people from down valley of the Dudh Kosi.In western Nepal, <a href="https://nepalitimes.atavist.com/high-and-dry-upper-mustang" target="_blank" rel="noopener noreferrer">Mustang’s</a> Lowa tribe settled along the Kali Gandaki and carried Tibetan salt to  Thak Khola, where they bartered it with the Thakalis who took it down to Pokhara and Kathmandu.Meanwhile, the Nisyangbas of Upper Manang used to trek even lower to trade salt in Pokhara and Baglung, eventually expanding to Calcutta and the British East India Company, and later to even Burma via Darjeeling, Kalimpong and Gangtok.In fact, so impressed was King Mahendra with the Nisyangba traders that he issued special passports to Nisyangba  merchants in 1960, allowing them to expand their transnational trading bases as far as Malaysia, Thailand and Singapore.Read also: <a href="https://www.nepalitimes.com/latest/north-of-the-border/">North of the border</a>, Nabaraj MahataraAfter Prithivi Narayan Shah’s conquest of Kathmandu Valley in the 1770s, Sankhu became also a major trading post, and would remain one until 1967. Tibetan salt from Sankhu Customs was  traded in the markets of Kathmandu from where it would reach the Tarai.The Mughals and Karins settled near the Karnali River and indigenous to Upper Mugu used to travel to Tibet twice a year to import salt and wool. The salt was then exchanged for grain in the lower Mugu and Jumla to the Matwali Chhetris, who would go on to sell the goods in Jajarkot and the Tarai. Communities in northern Humla also traded salt for grain with the Thakuri  in Bajhang and Bajura to the south.The Dolpopa of the Upper Dolpo transported salt and wool on sheep, mountain goats and yaks to exchange for grain in the Tarali Magar village  as well as to the Hurikot and Kaigaun villages in the Tichhurong region. Some of the last of these yak caravans were depicted in Éric Valli's Oscar-nominated film, Himalaya.In the far-west, the Khas Thakuris of the Byasi Sauka, Hikila and Sunsera communities brought salt from Taklakot in Tibet, trading it across Baitadi, Doti and Bajura.The salt economy strengthened ties not only between the people of Tibet and the Nepal Himalaya, but also fostered personal relationships between individual Nepalis and Tibetans, so much so that the exchange of कोसेली presents between Nepalis and Tibetans was as commonplace as the buying and selling of salt.The salt trade also cemented lasting bonds between communities of the high Himalaya and the mid-mountains. The Nyinba tribe of Upper Humla were closely linked to the Khas of Limal, while the people of Upper Mugu had ties with the Khas of Lower Mugu.  The Tarali Magars and Matwali Khas people of Dolpo, as well as the Lowa and Thakali of Upper Mustang had strong family bonds. The Sherpa of Khumbu similarly built relationships with the Sunwar and Rai communities to the south, as did Taplejung’s Walung with the Limbu community.Read also: <a href="https://www.nepalitimes.com/banner/there-are-muslims-in-tibet-too/">There are Muslims in Tibet, too</a>, Duksangh Sherpa<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721c6c9c7e80680e0bd48fjpeg.jpg" alt="" width="1500" height="1069"><figcaption> </figcaption></figure>Rubbing Salt By 1959, with China’s annexation of Tibet and later with the Panchayat system in Nepal, there were stricter border controls and the salt trade started declining. In addition, the activities of Khampa guerrillas based in Nepal who launched cross-border raids on the Chinese military led to tighter controls at the border.There was also an imposition of high taxes and quotas on the production of salt making it an expensive commodity. The popularity of Tibetan salt also waned when awareness spread that the lack of iodine in it led to goitre and cretinism among Nepalis.The Salt Trading Corporation was established in 1963 which coincided with the spread of new roads and airports. Gradually, salt imported from India replaced Tibetan rock salt in Nepal. Indeed, sea salt from India reached Nepal’s mountains faster and was cheaper than rock salt, and its transport by road and even aircraft was subsidised by the state.The loss of the salt trade dealt a heavy blow to the economy, and ultimately changed the socio-economic status of the trans-Himalayan regions. Traders and their families were forced to migrate or  take up alternative occupations. In Olangchunggola in northeastern Nepal, the decline of the salt trade destroyed the local economy, impoverishing families.Read also: <a href="https://www.nepalitimes.com/banner/gift-a-goat/">Gift a goat to Tibet nomads in Nepal</a>, Nepali TimesThe salt trade disruption caused a mass exodus of Nepal’s Himalayan communities to Taplejung, Dhankuta, Kathmandu and even Darjeeling. The Thakalis of Mustang  moved to Kathmandu and engaged in international trade.  The Sherpas of the Khumbu region found alternative employment in mountaineering and tourism, while some communities in Dolpo and Mugu clung to the declining salt trade.The end of the Nepal-Tibet salt trade also stopped cross-border community and family links. The cessation of the trade also led to a loss of skills, art forms, livelihoods and traditions like the salt-carrying yak and sheep caravans. Now, there are motorable roads in most places where the caravans used to traverse.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721c6f9c7e80680e0bd490jpeg.jpg" alt="" width="1162" height="1438"><figcaption> </figcaption></figure>Some former salt traders now rear livestock, but the closure of pastures in Nepal and Tibet have affected herders on both sides of the border.  This in turn has resulted in the decline of wool production and traditional apparel like bakkhu and docha, leading to a loss of knowledge, skills, craft, art forms and festivals, particularly among younger Nepalis.The Nepal government could have introduced alternative livelihood programs to offset the effects of the termination of the salt trade, made worse by the Himalayan barter economy being affected by monetised trade. Communities have not had time to adapt, since many of these changes came within a generation.The Himalayan region, which used to export grain to Tibet in the past, has now been reduced to importing rice and other food items from Tibet. Himalayan self-reliance has been replaced by dependency and hyper-consumerism. Gone are vestiges of the salt-economy and the socio-cultural ties it fostered.Read also: <a href="https://www.nepalitimes.com/banner/fixing-the-broken-parts-in-nepal-china-ties/">Fixing the broken parts in Nepal-China ties</a>, Kanak Mani Dixit(Jag Bahadur Buda is a student of anthropology. Adapted from the <a href="https://www.himalkhabar.com/news/128848">original</a> in the March issue of Himal magazine by Shristi Karki.)

The salt of the earth

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

Nepal stalls in Prosperity Index

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141112/636ba7a79c7e80680e073796jpeg.jpg" alt="" width="1500" height="1000"/>It has become a cliché to say that every crisis comes with opportunities. But that does not mean it is not true. It is up to us to grab that chance.The 2015 earthquake gave Nepal the opening to build back better, and the reconstruction of monuments did revive traditional building practices. The five-month blockade forced Nepal to look for alternative trade routes, even though the trans-Himalayan corridor is mostly confined to rhetoric so far.The COVID-19 crisis is also an opportunity for a ‘new normal’ in agriculture, food self-reliance, more sustainable tourism, and reduction of urban air pollution. But the temptation is to go back to business as usual -- and we probably will. But this crisis is a wakeup call.As dark monsoon clouds gather over Kathmandu this week, we are reminded of another cliché – that behind them there is a silver lining.Nepal’s imports have fallen by 15.6% this year compared to the same period last year. The import bill went down to Rs1.12 trillion, saving the country some Rs120 billion. Most of this was because of a reduction in petroleum imports, which made up 15% of all imports last year.Nepal imported Rs160 billion worth of petroleum products in 2020, a Rs52 billion drop from the previous year. Imports of steel, textiles, machinery and other commodities have also dropped sharply.The lockdown has also resulted in 41% in savings for the treasury from Nepalis not travelling abroad, either for holidays or education. Nepalis spent Rs89 billion for travel abroad last year, and this year this figure has dropped to Rs53 billion. The amount of hard currency Nepalis exchanged to pay for school and university fees abroad also dropped from Rs46 billion last year to Rs26 billion in 2020 – a reduction of 44%.Earlier this year, amidst uncertainty about the pandemic, there were <a href="https://www.nepalitimes.com/editorial/high-risk-remittance/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/editorial/high-risk-remittance/&amp;source=gmail&amp;ust=1598527146223000&amp;usg=AFQjCNHf0lFzIi_PySYU9UWCe8o3TsjhBg">dire predictions about a drastic drop in remittances</a> that Nepal gets from its workers in India and overseas. The World Bank projected a 14% decline in remittances this year, the Asian Development Bank (ADB) had a worst case scenario of a 28.7% drop, and Nepal’s own Nepal’s Central Bureau of Statistics forecast an 18% decline.There was indeed a drop in March and April when banks and money transfer agencies closed down. But there has been a rebound, and remittances so far this year have already hit Rs875 billion, which is only 0.5% less than the preceding year.The drop in outflow of hard currency and a rebound in remittances has had a positive impact on Nepal’s balance of payments which improved from minus Rs67 billion last year to plus Rs2.8 trillion this year. Nepal’s hard currency reserves now stand at $2.15 billion – enough to pay for 14 months of imports.To be sure, we have to wait and see if the remittances remain steady August onwards. The record high Rs101 billion for July was largely due to a backlog from previous months, workers bailing out families back home whose incomes had declined, as well as US dollar appreciation.The global economic downturn is expected to hit the economies of destination countries hard, and this will inevitably affect their <a href="https://www.nepalitimes.com/latest/cash-flow-crisis-for-migrants-and-families/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/cash-flow-crisis-for-migrants-and-families/&amp;source=gmail&amp;ust=1598527146223000&amp;usg=AFQjCNExCIbZRo4zeFdlYSyi0IOE22Uibg">migrant workers</a>. However, there are positive signs. China’s petroleum imports have almost hit pre-pandemic levels, and this will shore up the economies of oil and gas exports from the Gulf and Southeast Asia. In addition, employers hit by economic slowdown will want to also scrimp on salary costs by hiring cheaper essential workers from abroadEconomists like former finance secretary Rameshore Khanal are not so pessimistic. <a href="https://www.nepalitimes.com/banner/economic-cost-of-5-months-of-nepal-lockdown/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/economic-cost-of-5-months-of-nepal-lockdown/&amp;source=gmail&amp;ust=1598527146223000&amp;usg=AFQjCNHU4tyv8beehTVc-SGjNiL7ZweFOQ">He says in our analysis</a> that Nepal may be shielded from the full impact of the crisis because ours is still largely a subsistence economy, and people have traditional coping mechanisms.All this is not to discount the seriousness of the health and economic emergencies we face. The most serious is the looming crisis in the banking sector, as lenders put up collateral assets of defaulters up for auction. What will happen if there are no buyers?About 500,000 young Nepalis enter the labour market every year, and nearly that number is expected to return to Nepal in the coming months from abroad. Where are the jobs for them? Even if the macro-economic indicators are good, there is a real socio-economic and political crisis on the horizon.

Some silver linings

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914114/636ba5639c7e80680e0736c1jpeg.jpg" alt="" width="765" height="576"/><figcaption></figcaption></figure>When Chinese social media posted photographs last month of engineers surveying the extension of the Tibet Railway, one of the images showed Mt Everest to the south looming over the plateau from the proposed route of the tracks.Suddenly, a promise that Mao Zedong had made to King Birendra back in 1973 to build a railway from Lhasa to Kathmandu looked like it was finally going to happen.Reports suggest the Chinese want to finish the Xiagtse Gyirong (Kerung) extension of the Tibet Railway by 2025 -- although its further extension across the Himalaya to Kathmandu is going to be a <a href="https://www.nepalitimes.com/banner/which-way-will-the-tibet-nepal-railway-go/">much more technically and financially challenging prospect</a>.The railway project was brought up again in 2008, and got a push after the Indian Blockade of 2015 forced the Nepal government to plan alternative trade routes. The trans-Himalayan train was discussed between Prime Minister K P Oli and President Xi Jinping in two meetings in Beijing and Kathmandu last year.In 2017, Nepal also signed a framework agreement on the Belt Road Initiative (BRI) of which the railway project is a part. A feasibility study for the train link from Kerung via Rasuwa to Kathmandu and onward to Pokhara and Lumbini was completed in 2018. But not much else has happened since – largely because of the COVID-19 crisis and political uncertainty in Kathmandu.Most observers agree that despite the lackadaisical attitude on the Nepal side, the Chinese are forging ahead with their BRI strategy in general, and the plan to extend the railway line from Xigatse to Gyirong with the survey of the route.When the first Belt and Road Forum was held in Beijing in May 2017 amidst much fanfare, the much-anticipated conference attracted more than 60 countries which wanted to partner with China on upgrading infrastructure and connectivity.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914114/636ba5669c7e80680e0736c2jpeg.jpg" alt="" width="1500" height="1000"><figcaption>Trucks carrying imported Chinese goods cross over from Kerung to Rasuwagadi, the proposed route for the trans-Himalayan railway under China's Belt Road Initiative. Photo: NABIN BARAL</figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914114/636ba5699c7e80680e0736c3jpeg.jpg" alt="" width="826" height="680"><figcaption></figcaption></figure>Three years later, more than $70 billion worth of project have been completed, while other projects to the tune of $100 billion are ongoing across the world. Despite criticism about lack of transparency, environmental impact and a Chinese ‘debt trap’, for Nepal the attraction is that projects like the trans-Himalayan railway could be an economic and geopolitical game-changer.Initiated by President Xi in 2013 and enshrined in China Constitution in 2017, the BRI is seen as a strategy to diversify China’s infrastructure investment abroad, and to expand its geostrategic space.The focus of the BRI has itself changed over the past four years to encompass not just infrastructure but also a ‘Digital Silk Road’ of connectivity. As more and more Chinese investors and tourists travel abroad, the <a href="https://www.nepalitimes.com/latest/china-builds-digital-and-medical-silk-roads/">Digital Silk Road</a> is already functioning as a new payment gateway involving Chinese digital giants like WeChat and Alipay. By not making grand promotions and sticking to its domestic consumers, these companies have simply followed <a href="https://beltandroad.ventures/beltandroadblog/2018/7/8/where-the-chinese-go-alipay-and-wechat-pay-go">Chinese travelers wherever they go</a> (see map).Nepal initially banned Chinese digital payment giants WeChat and Alipay after loss of revenue from the increasing influx of Chinese visitors into the country.But the government decision to legalise both payment systems to benefit entrepreneurs and facilitate remittances from Nepalis shows China’s growing financial clout. As Nepal aims to lure more Chinese tourists in future, it is clear that Digital Silk Road will become an important artery for e-commerce.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914114/636ba56b9c7e80680e0736c4jpeg.jpg" alt="" width="645" height="427"><figcaption></figcaption></figure>The ‘<a href="https://www.nepalitimes.com/latest/china-builds-digital-and-medical-silk-roads/">Health Silk Road</a>’ is another <a href="https://www.cfr.org/blog/mapping-chinas-health-silk-road">rhetorical extension</a> of the BRI, and a response to the COVID-19 crisis to also boost China’s leadership in bio-technology and medicine. China has used this concept to rebrand the existing BRI by becoming a frontier in health technologies like using <a href="https://asia.nikkei.com/Spotlight/5G-networks/Coronavirus-helps-China-pull-ahead-in-the-5G-race">5G drones to deliver medical assistance</a> in Beijing, and emergency COVID-19 assistance all over the world.China <a href="https://news.cgtn.com/news/2020-07-27/China-to-enhance-cooperation-with-neighboring-countries-over-COVID-19-Stv2SvH9RK/index.html">recently held a joint conference</a> between Nepal, Pakistan and Afghanistan to combat COVID-19 together by building a new health network involving advanced digital connectivity and promoting it under the umbrella of the overall BRI mandate.Although in 2017, there was a flurry of activities in Chinese universities and think-tanks to discuss BRI initiatives, interest in it appears to have become somewhat subdued of late. Partly, it is the fallout of the pandemic, but even before the crisis hit BRI faced criticism in partner countries like Malaysia and Sri Lanka about risky, expensive projects that could be a ‘debt trap’. Large state-owned enterprises and banks started reconsidering how they viewed risks overseas, and advised a slowdown in investment promotion.In China itself, many <a href="https://www.ft.com/content/fb7436d6-b006-11e8-8d14-6f049d06439c?mc_cid=060a04b9b2&amp;mc_eid=f877bd4bdd">netizens were not happy</a> with their country’s eagerness to lend billions of dollars overseas when China itself has not fully lifted its own people from poverty. Managing public opinion in China is a sensitive topic for the leadership, and this could be another reason for large BRI projects not getting as much public exposure as before.However, even though within China the government may be keeping BRI in low profile for now, its activities and projects are up and running, though delayed somewhat this year by the global pandemic. The ongoing survey of the Xigatse-Gyirong railway is an example.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914114/636ba56d9c7e80680e0736c5jpeg.jpg" alt="" width="773" height="309"><figcaption></figcaption></figure>In Nepal, the public discourse on BRI has largely been associated with its geo-political risk, particularly because the MCC is seen as a countervailing American initiative in the global great game between the two world powers.China uses the BRI brand to project not just its strategic need for connectivity, but also as an extension of its soft power. However, in Nepal, the public perception of the BRI will be determined largely by its geopolitical content. For now, the BRI is equated almost solely as being synonymous with a future Gyirong-Kathmandu railway, and there is widespread public support for what many see as a catalyst for Nepal’s future development.But Nepalis may soon realise that the trans-Himalayan train may take decades to materialise, and in the meantime the BRI and its other initiatives are here to stay.Raunab Singh Khatri is a graduate student in Economics at the Yenching Academy of Peking University, Beijing.

BRI and trans-Himalayan connectivity

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141132/636babfe9c7e80680e077f0ajpeg.jpg" alt="" width="960" height="600"/>In the last few months we have witnessed the continued unraveling of the United States. Many might attribute the dismantling of what once was America to Donald Trump’s election, but, truth be told, this has been in the making for quite some time.The long-standing problems plaguing the US system of governance and its economy, along with its growing social injustice and inequality have all exploded into plain view because of Covid and, more specifically, because of the way that the federal government led by the president’s team has mishandled the pandemic and its devastating impacts.Political indecision, conflicting messages (mixed with disinformation and falsehoods), a blatant lack of empathy for the dying and unemployed, the absence of tangible concrete planning for all Americans that might have reassured the public – all were on display day after day during the White House briefings and subsequent follow-up tweets that only exacerbated fears, resentment and confusion.If it hadn’t been for governors and mayors, the country might have fallen into full-fledged chaos.At the height of the pandemic in April, urban dwellers realised in the most concrete way possible that they were entirely dependent on essential workers that included nurses and doctors, ambulance drivers, firefighters, the police, post office workers, but also the delivery personnel that kept their refrigerators and pantries full of food to weather the storm.These people maintained the flow of the most vital goods and services that were once taken for granted. The culmination of this disfunction and the outbreak of anger has now led to riots all across America.People – most of them young and passionate (older ones who have been activists their entire lives have been more careful because of their vulnerability to the virus) – are demonstrating with conviction. They see the inequality that has engulfed America; they have witnessed the millions lining up for food while farmers – who once supplied markets and restaurants – are now destroying their surplus production, unable to switch the direction of their supply chains.Americans can no longer ignore the fact that public schools were not able to immediately close at the start of the pandemic because millions of children relied on free school meals to eat each day. The rich lamented quarantining in their estates, while the poor struggled with unemployment, employment with high-risk exposure to Covid, and months of quarantining in difficult surroundings.One cannot begin to cover all the revelations that Covid has made public. Now years of unresolved racial tensions and a society that has learned to rely on force as the principal instrument to ensure peace and order is outraged. Hundreds of thousands of Americans are taking to the streets day after day to voice their objections to a system that is broken on every conceivable level.Importantly, the disintegration of the image of America in the eyes of the world is especially painful, particularly for those who have stood with America, believed in the American dream of opportunity and excellence, in the right to free speech, and in the progressiveness that social mobility ensured. Moreover, it is particularly troubling as this is happening during a period of significant global power realignments.That the United States has been recoiling from world affairs and will continue to do so has been evident for quite some time. What is now highly problematic is the realisation that this no longer constitutes a temporary retreat.While Trump’s disregard for positive global engagement dealt the death blow to the world order created after WWII, countries across the globe can no longer look to the United States as a place for inspiration, hope, freedom, norms and values. It is a country that will for years need to turn inward to solve its long-standing problems, and the ensuing period is likely not only to be fraught but violent.What might such developments mean for the rest of the world and for the global order? How and by whom will the power vacuum be filled?There are those who have long lamented the inequality in global affairs as traditional industrial powers that have included the US, Europe and Japan asserted themselves as exclusive drivers of global engagement, finance and trade. To them, the demise of American hegemony and all it has meant on different levels and for different people across the world might actually be a good thing. It may, in fact, help democratise multilateralism and lead to truer partnerships among the developed and the developing world.Caution, however, is warranted in optimistically embracing this sort of narrative. On the one hand, unimaginable as it may seem to many American scholars, analysts and policymakers, clearly a world in which the United States is no longer the guarantor of a post-World War II order is already in the making.China has indicated that it would like to lead the developing world through comprehensive partnerships, regional multilateral institutions, new trade corridors and connectivity as envisioned by the Belt and Road Initiative. And of course there is the European Union that has for years been underestimated because it has often failed to act with one voice and one resolve.For Europeans, the unraveling of the United States poses an existential threat. The US has been its closest ally and its greatest trading partner. Americans and Europeans shared liberal and democratic norms and values, and until the beginning of the 21st century were, more often than not, on the same page vis-a-vis the global order.This is no longer the case and because it is not it requires a dramatic recalibration by the EU during a particularly difficult time. While nobody can predict the outcome of the events that we are witnessing, it is certain that Europe and China are looking at each other in a new light – one that is no longer powered by the “blinding brightness” of the United States.Sophia Kalantzakos is professor of Environmental Studies and Public Policy at New York University and the author of two books China and the Geopolitics of Rare Earths and The EU, US, and China Tackling Climate Change: Policies and Alliances for the Anthropocene.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141132/636bac009c7e80680e077f0bjpeg.jpg" alt="" width="87" height="109">This article was <a href="https://www.ekathimerini.com/254023/opinion/ekathimerini/comment/once-upon-a-time-there-was-an-america" target="_blank" rel="noopener noreferrer">first published</a> in Kathimerini English Edition.

‘Once upon a time there was an America…’

<figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121112/636b8b9c9c7e80680e06b2afjpeg.jpg" alt=""/><figcaption>Illustration: DIWAKAR CHHETRI</figcaption></figure>The COVID-19 pandemic has caught the world off guard, with enormous repercussions for Nepal’s economy because of its reliance on overseas migration and tourism.Nepal’s three week lockdown has been extended till at least 27 April. Flights are not going to restart till mid-May at the earliest. The country’s remittance-fueled, consumption-led economy, low manufacturing capacity, unemployment, huge trade deficit, high reliance on import-based consumption have been pre-existing challenges even before the lockdown. The pandemic has made everything more difficult.Tourism is the hardest hit, especially the hotel industry which is most vulnerable due to the fixed cost associated with not only salary and wages but also regular maintenance well as loan servicing obligations. Tourism is cash flow sensitive, and its oxygen supply has come to complete halt. It will take at least till 2021 for travel and tourism to revive, or rebound. Priority rescue measures are urgently required.Transport is another sector that needs urgent attention. Once the lockdown situation improves, transportation will kickstart itself. But till then, the industry needs support to manage maintenance and financial obligations.Aviation witnessed a quick rebound after the double whammy of the earthquake and Blockade, particularly for domestic movement. The situation is different this time. The high cost of grounded aircraft due to leasing, fixed and variable costs will pose a major challenge. Big ticket loan exposure and interest expense may just kill some operators. Most airlines have equipment on ‘Dry Lease’ that carry certain fixed costs ranging from $100-150,000 per month for smaller aircraft. Dollar fares for expats and tourists have been a major revenue earner for operators, and with tourism down this will dry up.Finance industry including the banking sector are operating at bare minimum, and only offering basic services such as cash operation including remittance services and basic trade finance. New book creation has virtually stopped as no loan processing is being carried out. <a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/opinion/also-keeping-financially-healthy-in-a-lockdown/" target="_blank" rel="noopener">Also keeping financially healthy in a lockdown</a>, Siddhant Raj PandeyLiquidity has been a problem that predates the pandemic. Nepali BFIs have  been long plagued by liquidity crunch, particularly after the real estate crash of 2009. After the earthquake, the industry faced a major credit crunch. The capital hike, reconstruction demand, a stable government all led to a surge in loan demand. But an unstable liquidity supply was a chronic threat.If prolonged, this could lead to assets price burst and real-estate could take the plunge. Banks would have to revalue risk assets, as most are backed by real estate collaterals. In short, non-performing assets need to be closelh monitored.  Remittance-dependence has fuelled consumption growth, and this could be affected by coronavirus outbreaks in destination coutnries for Nepali migrants like Japan, Malaysia, Korea and the Gulf. In addition, there is now <a href="https://www.nepalitimes.com/editorial/commercially-important-people/" target="_blank" rel="noopener">uncertainty about labour demand</a> because of the global downturn. Annual remittances could take a nosedive.Construction could pick up as soon as the lockdown is lifted. But big ticket projects, particularly ones with foreign contractors, in hydro, airports, highways could slow down and costs could overshoot. Banks with guarantee exposure in the construction sector could also be hit. The non-funded instrument could see ‘Willful Claim’ capitalising on grey area of force majeure, currently under discussion at the Nepal Rastra Bank and the banking sector. Trade may rebound quickly because of Nepal’s import-based consumption patterns. However, the dent in purchasing power capacity due to loss of business and employment could be a matter of concern.The Health Sector ironically may see a slowdown during the pandemic. The banks carry significant exposure in medical care in heads like working capital, term loan and fixed assets. Balance of Payments could be a major concern as remittances drop. Tourism is another forex earner that is hit hard. Exports were always negligible, but even that will be slowed further with the lockdown.  Revenue Collection could dry up due to shortfall in revenue targets.  This could limit spending and development in infrastructure projects, creating problems in multiple areas from employment, base level economic activities, consumption amongst others.Small and Medium Enterprises are key economic enablers and yet largely out of formal sector reach. This impact assessment could be bit tricky and may require a deep dive into both formal and informal source of borrowings.Perhaps linkage to cooperatives could be one way to establish the relationship so as to gauge the depth of the impact. The critical focus here should be on employment generation, domestic production and revenue collection. GDP has 15 main sectors contributing to it. It may be wise to run a predictive analysis of each critical sector that may impact employment, value chain, economy amongst others.These are trying times for the economy, and we must be strategic about pressing the right buttons to speed up the rebound. Sanjib Subba was until recently the CEO of Nepal Banking Institute.

Unlocking the economy post-lockdown

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151116/636a64c59c7e80680e0598f7jpeg.jpg" alt="" width="1100" height="1402"/><figcaption>Photos: NARESH NEWAR</figcaption></figure>Sita Tamang had a hardscrabble childhood in an isolated village in <a href="http://archive.nepalitimes.com/news.php?id=15692#.Xejnd4MzbIU" target="_blank" rel="noopener">war-torn Rolpa</a>. As the eldest child, she dropped out of primary school to help with family chores while her young brothers and sisters went to school. Her childhood was spent collecting fodder for livestock in the forest.“I thought this is how my life would end — <a href="https://www.nepalitimes.com/banner/life-and-livelihood-in-remote-nepal/" target="_blank" rel="noopener">collecting grass</a>. But I still held some hope that life had something better in store for me,” recalls Sita, who learnt to knit from neighbours and won a prize for her skill in a handicraft show in Rolpa’s main town of Libang.Sita was gaining confidence, but soon <a href="https://www.nepalitimes.com/banner/need-to-remember/" target="_blank" rel="noopener">the Maoist conflict</a> engulfed the district. She was 16, an age when many of her peers were either being recruited by the Maoists or harassed by security forces. She escaped to the safety of Kathmandu in 2000, after getting married.The city was new to her, and she did not know anyone. She and her husband rented a small place, but Kathmandu was too expensive to survive in. One day she bumped into local women in Bhaisepati who had formed a women’s cooperative to make candles — taking advantage of the 12-hour daily power cuts.“The timing was perfect to make and sell candles,” recalls Sita, who got help from the Business Service Centre, run by women social entrepreneurs who offered vocational  training for women who wanted to start their own businesses.Read also:<a href="https://www.nepalitimes.com/banner/women-hold-up-more-than-half-the-sky/" target="_blank" rel="noopener">In Nepal women hold up more than half the sky</a>, Achyut Raj Bhandari<a href="https://www.nepalitimes.com/opinion/nepals-better-halves/" target="_blank" rel="noopener">Nepal’s better halves</a>, Anil Chitrakarhttps://www.youtube.com/watch?v=NHz0ZEJwTqw&amp;t=19sSita started with a small investment of Rs5,000 and took a Rs30,000 loan from the women’s group. She bought the candle-making mould and raw materials, and started making candles in her small one-room apartment, using her own cooking stove and utensils to make candles from molten wax. The next big challenge was to find buyers.“I went on foot to find the right market and potential clients, carrying hundreds of candles. I did not sell too many in the beginning, but I was determined to make it work,” remembers Sita.The candle business was competitive, and most buyers already had their own manufacturers. Sita explored the market further by visiting hotels, restaurants, shops and department stores. It was her participation in farmers’ markets and handicraft events that finally brought her exposure — getting noticed by big hotels, restaurants, retailers, companies and rich individuals.Sita’s sales increased and her income skyrocketed, from Rs10,000 per month to Rs30,000, rising to Rs100,000 during festivals. She says she learned a big lesson: even someone without education could run a business and make a living.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151116/636a64c89c7e80680e0598f8jpeg.jpg" alt="" width="1500" height="1125">Today, Sita is invited to <a href="https://www.nepalitimes.com/here-now/nepal-can-create-a-business-friendly-environment/" target="_blank" rel="noopener">business seminars</a> to share her ideas, and even got to showcase her candles at an international fair in Thailand. Her advice to other aspiring entrepreneurs is to research the market first, make quality products and establish a network.“Usually, there are a lot of well educated people during those seminars and meetings, but I don’t feel threatened as I believe I have created a good brand that is well liked by many buyers,” says Sita, who now takes orders by phone and even makes custom-designed candles.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151116/636a64cb9c7e80680e0598f9jpeg.jpg" alt="" width="1500" height="1058">In the last four years, she has produced more than 80,000 candles for clients like Hyatt, Radisson and Dwarika’s hotels, as well as shopping centres. Her tiny factory in Bhaisepati struggles to keep up with orders. Despite her busy schedule, Sita also trains other women in candle production and marketing.“Starting a business is not easy. It is full of risk and you need a lot of family support,” explains Sita, who appreciates the help she gets from her young children, siblings and especially her husband.Sita Tamang saw a glimmer of hope while collecting grass that day in remote Rolpa. The hope turned into a dream, which she has now realised as a successful entrepreneur in the capital.

Lighting up her darkness

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141156/636a60af9c7e80680e056e91jpeg.jpg" alt="" width="640" height="480"/>The Independent Power Producers Association of Nepal (IPPAN) is hosting the <a href="http://www.nepalenergyforum.com/power-summit-2019/">Nepal Power Summit</a> from 21-22 November in Kathmandu. The event will draw over 700 energy experts from Nepal and globally.<a href="https://archive.nepalitimes.com/article/business/Power-investors-meet-2018,4130">Past Hydropower Summits</a> and <a href="http://archive.nepalitimes.com/blogs/thebrief/2013/08/26/powered-up/">Energy Conclaves</a> have yielded little results, and there is mental fatigue among Nepalis about seminars, conferences, workshops and summits because they are usually talk shops with no follow up action and real tangible impact.This year’s Nepal Power Summit is based on Nepal’s achievements in the sector in the recent past, and will focus on regional energy trade, transmission lines infrastructure, enabling regulations and financing. The key breakthrough in <a href="https://www.nepalitimes.com/editorial/invest-in-investment/">mobilising investment in energy</a> will depend on breaking monopolies and opening up new markets. No one will invest in power unless there is somewhere to sell it.Which is why Nepal needs to create <a href="https://www.nepalitimes.com/here-now/the-cost-of-light/">greater demand at home</a>. The summit will look into all possibilities including energy for transport, which presently is almost solely dependent on imported fossil fuels. The idea is that we must use as much energy for productive domestic end uses before we plan to export.The theme for this year’s summit is Powering the Asian Century, and this is a recognition of the region becoming an engine of global economic growth. Rising living standards of Asians need goods and services that are produced with <a href="https://www.nepalitimes.com/here-now/nepal-turns-to-solar-and-batteries-to-meet-peak-demand/">clean, renewable</a> energy that do not exacerbate the climate crisis and contribute to air pollution.Nepal can and should position itself as the source of clean hydropower for the Asian century. We need to grab this opportunity, it could our chance to bring really big change to Nepal.While some people <a href="https://www.nepalitimes.com/here-now/how-they-kept-nepal-in-the-dark-ages/">cursed the darkness during the years of power cuts</a>, the private sector stepped up and took the lead. The public and the government began to engage, and then came the investors.  Nepal was still addicted to foreign aid and pleaded at donor meetings to get other countries to build power plants for us, free of cost.The idea of investment replacing aid is now catching on, however old habits die hard and the dependency syndrome is still deeply rooted. The Chinese president just reminded us that only Nepalis can develop Nepal. Others can help mobilise resources, give us access to technology and finance, but at the end of the day, Nepalis will have to do the heavy lifting.Nearly one in four Nepalis are now working, earning and sending money home from all parts of the globe. The spending power of Nepalis can be felt during these weeks of festivities. Gold and land are still the preferred investments for people who still do not trust the market, the businesses and the government.Hydropower is perhaps the one sector that is now able to draw public investment. We have to remind people that investing in hydropower is a good idea and protect the money small and big investors put into energy by expanding domestic and regional demand for the electricity generated.Nepalis then need to wean themselves from imported LPG, petrol and diesel. The energy sector in Nepal can create hundreds of thousands of new jobs and help keep our young professionals at home. Along the way, we have to learn how to better negotiate with our neighbours and respond to their market needs.We are not fooling anyone by lining our streets with flower pots and cloth banners to cover our dirty rivers for a couple of days. Ensuring the prosperity of 30 million people is hard work, but powering the Asian century is our historic opportunity.Anil Chitrakar is President of Siddharthinc.

Anil Chitrakar

Can Nepal be the powerhouse of Asia?

https://www.youtube.com/watch?v=JyxPQmUhSRo&amp;feature=youtu.beThe <a href="https://www.nepalitimes.com/banner/dazzling-dolpo/" target="_blank" rel="noopener">dazzling beauty of Dolpo</a> is confined mostly to the ink-blue waters of Phoksundo Lake, which overshadows the district’s other destinations.The remoter valleys of Nepal’s most remote region hide the ancient monasteries and culture of the <a href="https://archive.nepalitimes.com/article/nation/Dolpa-Nepal-preserve-pristine-remoteness,1632" target="_blank" rel="noopener">Bon religion</a>, an animist faith that is said to have existed in the Tibetan rim lands for 18,000 years – long before Buddhism got here.Today, Bon Po has been overlaid by Buddhism and later Communism in Tibet, but it still thrives in parts of the plateau that today lie in Nepal, like Dolpo. The 500-year-old Thasung Tholing Bon Monastery, with the Pungmo Gompa, are the jewels in the crown of Bon animism.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814110/636a53479c7e80680e052342jpeg.jpg" alt="" width="1500" height="1000"/><figcaption>NATURAL FAITH: The Thasung Tholing Bon Monastery on the slope above Phoksundo Lake is one of the two centres of the faith in Dolpo that pre-dates the advent of Buddhism here. Photos: SONAM CHOEYKI LAMA</figcaption></figure>Thasung Tholing is a cluster of nine private monasteries and one community gompa a 15-minute walk from Tso village. What is distinctive about the adherents of Bon Po here is their <a href="http://archive.nepalitimes.com/news.php?id=16604#.XVAGy94za70" target="_blank" rel="noopener">deep reverence for nature</a>, so that conservation of the ecosystem is not some outside concept but deeply ingrained in the belief system.Killing for meat was banned, so many villagers in this arid land used to chase wild animals to the edge of the cliff, where they fell to their deaths.“Appalled by the cruelty, Lama Treton Tsewang Tshultrim founded this monastery many centuries ago so that the killing would stop and the wildlife would be protected,” explained Kenpo Nyima Samduk Lama, the present head monk of Thasung Tso. Thasung means ‘protected cliff’, and tso is ‘lake’.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814110/636a534b9c7e80680e052343jpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure>Through the centuries till today, the monastery acts as a religious warden of the holy <a href="https://nepalitimes.atavist.com/stairway-to-heaven" target="_blank" rel="noopener">Phoksundo Lake</a> and its surroundings, protecting its wildlife and restoring the ecological balance of the mountains.Elderly villagers near the lake remember when musk deer and other animals came down to the shores to drink water, and roamed the forests surrounding the monastery. With poaching the numbers declined, but as the monastery actively revives traditional conservation customs the animals have started to return.The Bon worship the landscape, mountains, lakes, rocks, rivers and wildlife. In short, nature is sacred, as illustrated in this chant in their dialect: ‘lhe lhu zhi dag’, which means ‘we are guardians of nature’. Generations of Dolpo Pa, therefore, have grown up with an innate understanding of how nature is linked to their daily lives.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814110/636a534f9c7e80680e052344jpeg.jpg" alt="" width="1500" height="1000">The other centre is the monastery in Pungmo (in map, right) which spreads a deep reverence for mountains, trees, lakes and rivers.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814110/636a53529c7e80680e052345jpeg.jpg" alt="" width="546" height="788">Dolpo, NepalThe Bon monastery is a habitat for musk deer, blue sheep and other small mammals, which are prey for the snow leopard and the Himalayan wolf. Given its relatively recent genesis, Phoksundo does not have fish and conservationists say care must be taken not to introduce any alien aquatic species.“We are now seeing more and more snow leopards on the prowl in the forests around the monastery, and in the cliffs above. In winter, when there are fewer people, they even venture out to the shore to drink water,” said resident monk Geshe Nyima Samduk, showing visitors around the shrine.Although <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/saving-shey-phoksundo-in-nepal,3596" target="_blank" rel="noopener">Shey Phoksundo National Park</a> was set up in 1984, it was the long-established Bon tradition that really helped conservation on the ground, says snow leopard researcher Tshiring Lhamu Lama. “Local conservation tradition was very important for preserving the nature and culture of Dolpo, and the two are linked. The national park is only 35 years old, but the gompas have been here for 500 years,” she added.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814110/636a53549c7e80680e052346jpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure>Besides Thasung Tholing in Ringmo, the other cradle of Bon civilisation in Dolpo is the less travelled Pungmo Valley. This wild and scenic landscape on the lap of Mt Kanjiroba is two hours off the main Dolpo Trail, and few visitors ever come here. The villagers worship Kanjiroba as the ‘ruler of kings’, just as they revere the cliffs, streams, waterfalls, trees and ravines that make up the topography.The local Bon dialect has words for the divine: Yul Lha (lord of the land), Yul Sa Sol Sa (ritual for nature gods), Sman Mo (female spirits). The faith is so strong that locals believe that transgressing nature will bring down wrath and misfortune: livestock will perish, crops will fail and the salt caravans will be stuck in blizzards. The nature gods could also retaliate with hailstorms, earthquakes and disease.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814110/636a53579c7e80680e052347jpeg.jpg" alt="" width="1500" height="1125">“We are not allowed to eat meat that is slaughtered here. We only eat animals that die of natural causes. We are not supposed to cut trees because they are gods too, and so are the rivers and lakes,” says Yungdrung Lama, whose family lineage carries the Bon tradition.Larke Lama is the elected ward chair in Pungmo village and says the Bon way of life is integral to everything his community does. Locals believe they have to perform the Yul Sa Sol Sa ritual to ensure a good harvest. Lama says, “sometimes the weather is bad for crops, so we pray to the sky gods to restore the natural equilibrium.”<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814110/636a535a9c7e80680e052348jpeg.jpg" alt="" width="1250" height="833"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814110/636a535d9c7e80680e052349jpeg.jpg" alt="" width="597" height="504"><h2>No yarsa = no yaks = no caravans = no salt = no butter</h2><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814110/636a535f9c7e80680e05234ajpeg.jpg" alt="" width="1500" height="842"><figcaption> </figcaption></figure>For thousands of years, the Dolpo Pa have survived on a bi-annual journey back and forth across the Himalaya. But the winds of change have affected the ancestral occupation of the yak caravans that used to take grain and cotton up from the lower valleys to barter for rock salt and carpets from Tibet.The modern monetised economy, the <a href="https://archive.nepalitimes.com/regular-columns/GUEST-COLUMN/Shey-Phoksundo-national-park-may-soon-become-a-bus-park,1036" target="_blank" rel="noopener">spread of transportation</a> in Tibet and Nepal, education and out-migration have all contributed to erode this traditional practice. And now added to this list of factors is climate change, which has made weather unpredictable in the trans-Himalayan valleys.This year, unseasonal spring blizzards closed the high passes that the caravans use for trading. Tourism was hit, as trekkers were stranded.Dawa Gurung and his family take his yaks and horses into the pasture of Dhanigad, crossing the Baga La pass at 5,000m. “We heard the China border is opening soon and we need to go to Chang (Tibet) but this year I do not think I will go — the trail is still treacherous and there is not much to trade,” Gurung said.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814110/636a53629c7e80680e05234bjpeg.jpg" alt="" width="1500" height="1000">The grain-salt barter trade between Nepal and Tibet has now been replaced by just one precious commodity: <a href="http://archive.nepalitimes.com/news.php?id=10912#.XVAD7d4za71" target="_blank" rel="noopener">yarsa</a>, the caterpillar fungus that grows out of the ground in meadows above 4,500m and is prized in Chinese medicine.<a href="http://archive.nepalitimes.com/news.php?id=19382#.XVAHNd4za70" target="_blank" rel="noopener">Yarsa</a> means ‘summer grass’ or ‘winter worm’ in the local dialect and has raised living standards here. But lately, due to over-picking and climate change, yarsa harvests have slumped. Dolpo traders used to sell yarsa across the border in Tibet and buy rice, sugar, blankets and even solar panels in China.“This year it snowed continuously from February to April, and in Saldang half the yaks died. The melting snow also made the ground soggy, and all the yarsa rotted,” said Tashi Dhondup Lama of Tso village.The weather, crops and health of livestock are so closely tied that the loss of yarsa and yaks has meant no trade with Tibet, which means no salt and no butter. As a result, for most villagers in Dolpo this year there are no ingredients to make the salty Tibetan butter tea.

Bon voyage

Earlier this month, Nepal received Rs1.6 billion from the World Bank as part of its <a href="https://nepalitimes.com/news/will-nepal-ever-be-paid-for-saving-trees">Forest Carbon Partnership Facility (FCPF)</a>, rewarding the country for increasing its carbon sink capacity. Nepal is the first in South Asia to benefit from this facility, and it is specifically to recompense the country for increasing forest cover in 13 Tarai districts between 2018-2024. “We are also trying to get another Rs13 billion from the facility while also preparing for free market-based carbon trading in the international market,” says Nabaraj Pudasaini of the REDD (Reducing Emissions from Deforestation and Forest Degradation in Developing Countries) Implementation Centre. Big emitters of greenhouse gases are under pressure to reduce their carbon emissions, and many have signed agreements to do so by investing in decarbonisation projects in developing countries. Countries that emit more than a specified amount of carbon would be able to buy emission rights from countries that emit less. Nepal is internationally known for its community forestry program which has been largely credited for <a href="https://nepalitimes.com/banner/tree-mendous">increasing tree cover to over 45%</a> in less than three decades. But this achievement had not been adequately recognised or rewarded internationally before. Forests, especially in the tropics, absorb and store large amounts of carbon while releasing oxygen in a process known as photosynthesis. <a href="https://www.fao.org/forest-resources-assessment/en/">Preventing deforestation</a> and increasing canopy cover is considered a much more achievable goal than reducing emission in the scale necessary to limit global average temperature to 1.5°C above pre-industrial levels. COP11 in Montreal in 2005 first proposed reducing carbon emissions by improving forest quality by halting degradation. By 2015, a new mechanism of financial assistance was created to help less developed countries with sustainable management of forests <a href="https://www.un-redd.org/">(called REDD+)</a>. Under this new mechanism, countries receive aid based on their efforts to prevent forest degradation and increase carbon sink, and in 2021 the World Bank was entrusted with implementing it. Nepal’s FCPF receipt this month was calculated on the basis of 2.4 million tons of carbon stored at a rate of $5 per ton. In the second phase, Nepal will receive more than Rs4 billion within the next year for storing an additional 7 million tons of carbon. Eighty per cent of this amount obtained from carbon trading needs to be spent on local beneficiaries and indigenous communities.&nbsp; But carbon trading is not easy, Nepal needs to prove that protected forests will not be destroyed in future.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241121091132_c8a381c9a95aa86fec558951650d97bb87914741f01766982ba2b086af001f16.jpg" data-media-id="editor_4" data-image-id="20241121091132_c8a381c9a95aa86fec558951650d97bb87914741f01766982ba2b086af001f16" data-rendition-name="original" width="1500" height="999" loading="lazy" alt="Greenbacks for greenery NT "> <figcaption>Photo: KUNDA DIXIT</figcaption> </figure>  Explains carbon trading expert Yugan Manandhar. “Forests should be handed over to the community and shown that they are managed sustainably. Proving this will be particularly challenging; forest encroachment and degradation is rife in the Tarai.” <a href="https://nepalitimes.com/multimedia/nepal-is-going-up-in-smoke">Deliberate forest fires</a> have also added to the challenge because they increase carbon emissions and reduce the sink capacity of forests. The basis for the amount that Nepal received was set five years ago by calculating the carbon reserves of forests in the 13 Tarai districts. In the meantime, sustainable forest management, tree plantation, forest destruction and erosion control were prioritised to increase carbon reserves in those forests. Nepal is signing another carbon trading agreement during the ongoing Baku climate conference. The <a href="https://www.leafcoalition.org/">Lowering Emissions by Accelerating Forest finance (LEAF Coalition) </a>proposes to sell the carbon stored in the forests of Bagmati, Gandaki and Lumbini provinces. For this, Nepal signed the letter of intent three years ago at COP26 in Glasgow. The target is to store 70 million tons of carbon in 32 million hectares of forest in the three provinces per which Nepal will receive Rs13 billion in four years at $10 per ton with provisions to increase the rate if various conditions are met. However, the agreement in itself doesn’t guarantee the amount. According to the targets set by Nepal, forest degradation should be stopped and carbon reserves increased by protecting tree cover. Preparations are also underway for clean air carbon trade because it has offset fossil fuel use by introducing 30,000 electric vehicles. Nepal has been selected for the first round to receive $40 million within one and a half years through the Clean Air System of the World Bank. Given that most of Nepal’s energy mix is from biomass, replacing them with electric stoves can significantly improve health by reducing indoor pollution as well as strengthen the country’s capacity for carbon trade. “Nepal's goal now is to sell carbon in the free market where carbon credits are bought and sold based on supply and demand in an open and transparent manner,” adds Pudasaini of the REDD Implementation Centre. “Nepal can now set its own price and bargain with interested buyer countries and organisations.” Lately, India has been discussing setting up a carbon market. Nepal has exported Rs12.72 billion worth of electricity to India so far this fiscal year, which can be traded under Nepal’s carbon market. “Carbon trading can create significant economic benefits for Nepal, which will help reinvest in development and environmental protection projects,” says Manandhar. “But we must prioritise sustainable management of forests, cutting older trees and allowing regrowth as well as promoting electric stoves and electric vehicles.”

Greenbacks for greenery

Khukri Rum is <a href="http://archive.nepalitimes.com/news.php?id=3719#.WurBk6SFPIU">one of Nepal’s most iconic brands</a>, and is now launching a new Cask Series premium product to sell in Nepal and abroad. The Cask Series Smoked Finish Khukri Rum is a limited edition with only about 7,000 bottles, most of it for export and rest to be sold to rum connoisseurs in Nepal itself. Each bottle is numbered and will mention the cask from which it is derived. “We are working on taking a classic Nepali rum to a new luxury premium brand category, the Cask Series will only be produced this year with new product ranges in future,” explains Subash Lamichhane, managing director of Nepal Distilleries that first started making Khukri rum in 1959 in Balaju and has never stopped. Fermented from molasses in Bara district in the Tarai after the annual sugarcane harvest, the rum is matured for at least eight months during distillation. The distillery bottles the classic Khukri XXX, Coronation Khukri XXX, Khukri White Rum and Khukri Spiced Rum.&nbsp; The distillery is now adding this limited edition of its ‘Cask Series’. While the original rum is stored in huge wooden vats, the rum used for this more exclusive line is in smaller casks made either from oak or sal, with charred insides to give the rum a smoky flavour. The Cask Series rum is indeed smokier than the classic, while the spiced rum tastes toasty and mostly of cardamom. The company has a tasting suite with a master blender and tasters who have to approve the palate test.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241122131124_10b8ddca93b37b0348bf964b4f09e7fac6ef4e754cca6231368850539cd558e2.jpg" data-media-id="editor_1" data-image-id="20241122131124_10b8ddca93b37b0348bf964b4f09e7fac6ef4e754cca6231368850539cd558e2" data-rendition-name="original" width="1498" height="1000" loading="lazy" alt="Khukri Rum"> </figure>  The packaging for the Cask Series is as special as the process. A sturdy patterned box that opens up to a black glass bottle with gold lettering, and an indication of which cask the rum is from. These are then shipped to premium customers around the world One of the reasons this is the more expensive premium line is because the casks are smaller than the vats and the blenders reject more than half of the rum in the casks when the aging period is complete. The trick for the blender is also to decide when to take the run out of the cask.&nbsp; Says Lamichhane: “If we have 25 casks, we expect to throw away about fifteen.”Over the decades, Nepal Distilleries have created and maintained a brand that feels quintessentially Nepali, and has served as Nepal’s ‘ambassador’ with exports to Germany, Korea, Belgium, Finland, the Czech Republic, besides the existing markets among Nepalis in the US, UK, Hong Kong and Australia. &nbsp;Its unique <a href="https://nepalitimes.com/here-now/khukri-rum-sharpens-its-act">khukri shaped bottle</a> first introduced for King Birendra’s coronation in 1975 has been a collector’s item. The bottle and rum have been a staple for Nepalis and visitors to take as gifts when they leave the country, and is used as decoration on bar tables around the world. Now, nearly 40 years later, even that bottle will soon be getting a makeover with a sharper design and sleeker handle. “Our bottle design has always been instantly recognisable, and it is,” says Lamichhane. The Himalayan restaurant at The Hague, for example, has a Khukri Coronation bottle adorning its bar (page 6-7). In Washington DC Himalayan Heritage Restaurant &amp; Bar offers ‘Nepalese Khukri Rum’ mojito in its drinks menu with fresh mint, soda water, lime juice and sugar syrup, for $12.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241122131124_b9474db3fc83c85845348dddc30c49652ee1f17229531867fa241de50849cedc.jpg" data-media-id="editor_3" data-image-id="20241122131124_b9474db3fc83c85845348dddc30c49652ee1f17229531867fa241de50849cedc" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Khukri Rum NT"> <figcaption>Christopher Armes, master blender of the Cask Series.</figcaption> </figure>  A distinct element of the award-winning <a href="https://nepalitimes.com/business/khukri-rum-gets-award">classic Khukri rum</a> is its burgundy colour from caramel sourced from cooking sugar and blended with the raw rum. The spirits are then stored in a warehouse with floor-to-ceiling vats. The vats are not just for storage, the wood in the vats imparts flavour into the rum, and removes a lot of the harshness. &nbsp; On a visit this week, the bottling room was just about to begin for the day and the production line was churning out different shapes and sizes of Khukri Rum bottles. Most of the process is automated, including screwing bottle caps, sticking labels, placing the government seal, and packaging. The only manual intervention is the quality control where bottles are held against the light to check for sediment and colour. A mural on the wall of the distillery in Balaju depicts the rum-making process. A lady slings sugarcane on her shoulder, the molasses is churned in a pot, water is channelled into the distillation process, cinnamon, cloves and cardamom are added to a container, and finally there is a bottle of the classic Khukri Rum against a Kathmandu backdrop.

Khukri goes premium with new rum

Turkish Airlines has introduced a new amenity kit collection designed in collaboration with French fashion house Lanvin for international business class passengers on flights more than five hours. It consists of five pieces designed for sustainability and elegance. Bags are reusable and will consist of Lanvin cosmetic products like hand and body lotions and lip balm. Eye masks and socks are made from recycled materials, earplugs are packaged in paper and the toothbrush is bamboo.

Turkish amenity kit

Nepal now generates a surplus of electricity and it is all from renewable hydropower. Nearly half the country is under forest cover. Despite meeting these decarbonisation goals, Nepal’s hydropower plants are threatened by increased risk due to climate impact.&nbsp; Till <a href="https://nepalitimes.com/editorial/when-it-rains-it-pours-ksqprbu3">28 September</a>, Nepal was <a href="https://nepalitimes.com/news/india-nepal-sign-power-exchange-deal">exporting just over 1,000MW</a> of electricity to power-hungry India, when flash floods and landslides unleashed by historically heavy rains damaged over 30 hydropower plants across the country, temporarily <a href="https://nepalitimes.com/news/power-to-the-people">slashing nearly half the power generation.</a> The 456MW Upper Tamakosi in Dolakha was the hardest hit and it will take six months and Rs2 billion to repair. This has significantly reduced exports as well as domestic generation. Two months later, Nepal has still not been unable to fully keep its export commitment, and is actually paying Rs100 million in fines to India. Thirty-seven existing and under construction projects under the Independent Power Producers' Association Nepal (IPPAN) suffered Rs2.5 billion in damage. One of them is the 22MW Bagmati project in Makwanpur which was almost completely buried in flood debris. Even before <a href="https://nepalitimes.com/news/60-dead-64-missing-in-nepal-floods">record-breaking rain in September</a>, 15 other hydropower projects had been damaged by floods. Last year, floods caused by heavy localised rain damaged 28 hydropower plants. World governments met in Baku for COP29 to discuss the Loss &amp; Damage Fund and the Adaptation Fund, but for countries like Nepal the commas and brackets are meaningless until they are turned into $ and €. And likelihood of adequate compensation for climate-related damage is a long way off, if ever. Nepal’s national strategy is to use its vast hydropower resource as clean energy to spur economic growth, job creation, and boost export revenue. But the plants are located in narrow Himalayan valleys prone to landslides and floods even at the best of times. Now, those <a href="https://nepalitimes.com/opinion/comment/changing-climate-for-investment-in-nepal">risks have been heightened by weather extremes</a> due to climate breakdown. At present, Nepal generates over 3,300MW of clean hydropower, and the target is to reach 12,700MW in the next five years. Projects equivalent to 6,000MW are under construction or ready to start. The Ministry of Energy, Water Resources and Irrigation has an Energy Development Roadmap and Action Plan with the target of producing 28,500MW by 2035 by when more than half of it will be exported.&nbsp; “The climate crisis will further change the rainfall patterns making hydropower generation a big question mark in the future,” Manjeet Dhakal in Baku, who is also the Nepali adviser to the LDC Chair at the United Nations Framework Convention on Climate Change (UNFCCC). “We are building hydropower projects on rivers without evaluating risk. This whole process needs to be reviewed and reconsidered.” The report of the National Adaptation Plan published by the Ministry of Forest and Environment last year mentions that hydropower production, transmission and distribution will be at risk from flash floods, debris flows, glacial lake outbursts and rising temperatures.&nbsp; This risk is not confined to Nepal. Average global temperatures have increased by 1.3°C compared to the pre-industrial era. Worse, the Himalayan mountains are warming faster than the global average by 0.7°C because of elevation-dependent warming. A study conducted by our own Department of Hydrology and Meteorology in 2017 showed that the average temperature in Nepal has increased in the last four decades. Scientists say this is leading to extreme weather unleashing floods and landslides on slopes already destabilized by seismicity.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241124071128_d22901a360e8958f606d80ffa21defba05a671f65afec65539dc21a6885d8345.jpg" data-media-id="editor_5" data-image-id="20241124071128_d22901a360e8958f606d80ffa21defba05a671f65afec65539dc21a6885d8345" data-rendition-name="original" width="1333" height="1000" loading="lazy" alt="Right climate for Nepal’s energy transition NT"> <figcaption>BIBLICAL RAIN: Photo taken during catastrophic rain on 27-28 September at the Upper Tamakosi project site that destroyed the control room, killing four staff and burying the sedimentation tanks. Photo: RSS</figcaption> </figure>  Increased atmospheric temperatures has made the monsoon rains more erratic. It does not rain when it is supposed to, and it comes down in torrents when it is not supposed to. The September floods happened two weeks after the monsoon was supposed to retreat from central Nepal. Kathmandu Valley received half its annual precipitation in just over a day. &nbsp; Winter precipitation has also failed, especially in the high mountains and trans-Himalayan valleys. Thirteen of the past 19 years experienced winter drought. This impacts on dry season flows of the rivers, reducing hydropower generation. Nepal’s power capacity normally goes down by one-fourth during winter, but the gap is widening. The Kabeli corridor could only generate 20MW November-March even though plants there have an installed capacity of 200MW. Similarly, Upper Tamakosi only produced 65MW at most against its 456MW capacity last winter. The Nepal Electricity Authority (NEA) pays producers double the price for winter electricity, Rs8.40 per unit. Even though winter operation is highly profitable the rivers run low and NEA has to import from India to meet the winter demand. “This is not just a weather problem but a serious challenge also for the country's energy future, good climate-friendly design should be combined with policy and effective implementation,” says Subarna Das Shrestha, a hydropower investor and CEO of Sanima Mai Hydropower. “Insurance premiums have gone up as well, and settlement for damage is not timely.” <a href="https://nepalitimes.com/opinion/climate-risk-to-hydropower-investment">Hydropower investment</a> at one time was regarded as having a high rate of return. Now, some investors have become <a href="https://nepalitimes.com/banner/climate-smarter-himalayan-infrastructure">wary of the risks involved</a>. Says IPPAN’s Uttam Blon Lama: “Hydropower projects expected to give stable returns are now looking risky. Not only is climate adaptation design and planning expensive, but future repair and maintenance costs will also skyrocket.” Nepal has only one storage type dam <a href="https://nepalitimes.com/multimedia/rivers-be-dammed">in Kulekhani</a> and another one is being built in <a href="https://nepalitimes.com/multimedia/missing-pieces-of-the-hydropower-jigsaw">Tanahu</a>, but they are also at risk. In September, the sluice gates of Kulekhani Dam had to be opened causing loss of life and destruction downstream. Nepal has to learn lessons from the deadly collapse of the $1 billion <a href="https://nepalitimes.com/news/sikkim-flood-is-warning-to-nepal">Chungthang Dam in Sikkim</a> in October 2023 cause by a glacial lake burst. Glacial Lake Outburst Floods (GLOFs) in Nepal pose potentially catastrophic risk to infrastructure. The <a href="https://nepalitimes.com/here-now/lives-on-the-line-in-the-himalaya">Thame flood in August</a> was a relatively minor debris flow that damaged half of this village in the Everest region when <a href="https://nepalitimes.com/news/climate-breakdown-linked-to-thame-flood">two glacial lakes at 4,760m burst</a>. Luckily there was no loss of life. Of the <a href="https://nepalitimes.com/here-now/lives-on-the-line-in-the-himalaya">47 high-risk glacial lakes</a> in the eastern Nepal Himalaya, 21 are in Nepal and the rest are in rivers in China that are tributaries of the Arun and Bhote Kosi where Nepal has major hydropower plants under construction, or planned.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241123021128_b596cd8520c57a6c5476031e7a3ea6510f26b464c4d5351d2bc10f6f7d6b70d8.jpg" data-media-id="editor_14" data-image-id="20241123021128_b596cd8520c57a6c5476031e7a3ea6510f26b464c4d5351d2bc10f6f7d6b70d8" data-rendition-name="original" width="871" height="648" loading="lazy" alt="Page 10-11 map #1236 NT"> </figure>  Global temperature rise is accelerating the melting of Himalayan snow and ice, increasing the <a href="https://nepalitimes.com/here-now/living-below-nepal-s-melting-mountains">number and size of glacial lakes</a> so that we do not even have names for them. Imja Tso did not even exist in the old trekking maps until 25 years ago, but is now a 2km long lake. “Natural moraine dams in the mountains are weak, and the projects downstream can face major destruction if they burst, and the risk will only increase in future,” warns climatologist Arun Bhakta Shrestha at the <a href="https://www.icimod.org/">International Centre for Integrated Mountain Development (ICIMOD)</a>. <a href="https://nepalitimes.com/here-now/terrifying-assessment-of-a-himalayan-melting">An ICIMOD assessment in 2019</a> projected that if present heating trends continue, as they probably will, the Himalaya will lose two-thirds of our glaciers by the end of this century. “Generally speaking, hydropower developers hand over the project to the government after 30 years but by that time given the climate risks, they may not be an asset anymore,” says Manjeet Dhakal. Indeed, the cascade of expensive projects India is building on the Arun River are supposed to be handed back to Nepal in 25 years, but there is a big ‘if’ about whether they will survive that long. &nbsp;&nbsp; Planning of hydropower projects is still based on historical hydrological data, and does not take into account future temperature rise and its consequences. Investors, on the other hand, say that planning hydropower projects with climate components would make them even more expensive.&nbsp; “It’s not that we aren’t preparing for climate risk, we design keeping in mind the once-in-100-year flood,” says Blon of IPPAN. “But if we start designing based on once in 1,000 years flood, the cost would be so high that we won’t be able to build them at all.” Nonetheless, Subarna Das Shrestha of Sanima Mai Hydropower says that there is no option but to go for climate smart infrastructure despite the higher cost. Sanima Mai's powerhouse, for example, is completely underground. The strategy could also be to spread the risk by building less expensive plants located on rivers all over the country. Nepal is also diversifying away from its sole reliance on hydroelectricity, which at present supplies 92% of the power in the grid. Most of the rest comes from solar plants, where the total potential has not even been scratched. &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/20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_21" data-image-id="20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="SDG logo"> </figure>  &nbsp;