Tech billionaires such as Bill Gates, Mark Zuckerberg and Elon Musk are not just among the richest people in human history. They also are exceptionally powerful socially, culturally and politically. While this is partly a reflection of the social status that our society attaches to wealth in general, what matters even more than simple wealth is that these particular billionaires are viewed as entrepreneurial geniuses who exhibit unique levels of creativity, daring, foresight and expertise on a wide range of topics. Add the fact that many of them control major means of communication through key social media platforms, and you have something almost unparalleled in recent history. Some individuals would always have more power than others, but how much power is too much? Once upon a time, power was linked to physical strength or military prowess, whereas now its perquisites usually stem from ‘persuasion power’, which, as explained in the book Power and Progress, is rooted in status or prestige. The greater your status, the more easily you can persuade others. The sources of status vary greatly across societies, as does the extent to which it is unequally distributed. In the US, status became firmly linked to money and wealth during the Industrial Revolution, and income and wealth inequality skyrocketed as a result. While there have been periods in which government intervention sought to reverse the trend, US society has always been structured around a steep status hierarchy. This structure is problematic for several reasons. For starters, the constant competition for status and the persuasion power it confers is largely a zero-sum affair, because status is a ‘positional good’. More status for you means less status for your neighbour, and a steeper status hierarchy implies that some people would be happy while many others are unhappy and dissatisfied. Moreover, investments in zero-sum activities tend to be inefficient and excessive compared with investments in non-zero-sum activities. Is it better to spend a million dollars on gold Rolex watches or on learning new skills? Both might have intrinsic value, the beauty of the watch versus the pride of acquiring new knowledge, but the first investment merely signals that you are richer and more capable of conspicuous consumption than others. The second, by contrast, increases your human capital and might also contribute to society.&nbsp; The first is largely zero-sum, and the second is largely non-zero-sum. Worse, the first can easily get out of hand as everyone spends even more on conspicuous consumption to stay ahead of others.&nbsp; Commentators often ask why someone with hundreds of millions of dollars would ever need hundreds of millions more. There are few things that you cannot afford if you already have $500 million, so why long for $1 billion? Because ‘billionaire’ is a rank of status.&nbsp; What matters is not the spending power, but the prestige and power that it confers relative to one’s peers. Under a ‘wealth is status’ equilibrium, a mad dash by the ultra wealthy to amass ever more wealth becomes inevitable. There are evolutionary and social bases for linking persuasion power to status and prestige. After all, it is individually rational to learn from people who have expertise, and it is reasonable to link expertise to success. Moreover, this form of learning is good for communities, because it facilitates coordination and a convergence toward best practices. However, when status is linked to wealth and wealth inequality grows very large, the foundation underpinning expertise starts to crumble. Consider the following thought experiment. Who has greater expertise on carpentry, a good, master carpenter or a hedge fund billionaire? It seems natural to choose the former, but the more that wealth confers status, the greater the weight attached to hedge fund billionaires’ views, even on carpentry.&nbsp; Or consider a more relevant contemporary example. Whose views on freedom of speech carry more weight today: a tech billionaire, or a philosopher who has long grappled with the issue, and whose evidence and arguments have been subjected to scrutiny by other qualified experts? Millions of people on X have implicitly chosen the former. The deeper we are drawn into the ‘wealth is status’ equilibrium, the more we might come to accept the supremacy of tech billionaires. Yet it is difficult to believe that wealth could be a perfect measure of merit or wisdom, let alone a useful proxy for authority on carpentry or freedom of speech.&nbsp; Moreover, wealth is always somewhat arbitrary. If the tech sector had not become so central to the economy and if it was not driven by such strong winner-take-all dynamics, today’s tech tycoons would not have become so rich. The fact that Gates and Musk have been taxed less does not make them any wiser, but it certainly has made them wealthier and thus more influential. French diplomat Ferdinand de Lesseps gained tremendous status in late 19th century France owing to his success in completing the construction of the Suez Canal in the face of longstanding British opposition to the project. Lesseps had foresight, and he demonstrated great skill in convincing politicians in Egypt and France that maritime international trade would become very important.&nbsp; Lesseps gained great status and prestige, but became reckless, unhinged and cocky, pushing the Panama Canal project in an unworkable direction that ultimately led to the deaths of more than 20,000 people and the financial ruin of many more (including his own family). Like all forms of power, persuasion power can make one hubristic, unrestrained, disruptive and socially obnoxious. Lesseps’ story has echoes in the behaviour of many billionaires today. While some of the wealthiest individuals do not use their wealth-derived status to influence critical public debates (think businessman Warren Buffett), many do.&nbsp; Gates, Musk, businessman George Soros and others do not hesitate to weigh in on matters that are important to them, and while it is easy to welcome such contributions from those whom we agree with, we should resist this temptation. It makes a lot of sense for society to tap into the knowledge and wisdom of those with expertise on a given topic, but it is counterproductive to amplify the status of those who already have plenty of status.&nbsp; It is not entirely the fault of billionaires that US policy is fueling massive inequality around the world. However, they should bear responsibility if they misuse the immense status that wealth affords them under conditions of rising inequality. That is especially true when they leverage their status to advance their own economic interest at the expense of others’, or to polarise an already divided society with provocative rhetoric or status-seeking behaviour. If unaccountable billionaires already wield too much undue social, cultural and political influence, the last thing we should want is to give them even bigger public forums, for example to Musk through his ownership of X. Instead, we should pursue stronger institutional means of limiting the power and influence of those who are already privileged, as well as reconsider the tax, regulatory and spending policies that created such massive disparities in the first place. The most important step would also be the most difficult. We need to start having a serious conversation about what we should value, and how we can recognise and reward the contributions of those who do not command vast fortunes.&nbsp; While most people would agree that there are many ways to contribute to society, and that excelling in one’s chosen vocation ought to be a source of individual satisfaction and the esteem of others, we have disregarded this principle and are at risk of forgetting it altogether. That, too, is a symptom of the problem. © Project Syndicate Daron Acemoglu, professor of economics at MIT is the co-winner of this year’s Nobel Prize for Economics with Simon Johnson with whom he also wrote Power and Progress: Our Thousand Year Struggle Over Technology and Prosperity. The other winner was James Robinson.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241015091024_5a52f7a4b9be5c00a87113a400a503a0f3912f4146fe3054441da21818cea5ed.jpg" data-media-id="editor_0" data-image-id="20241015091024_5a52f7a4b9be5c00a87113a400a503a0f3912f4146fe3054441da21818cea5ed" data-rendition-name="original" width="650" height="1000" loading="lazy" alt="Power and Progress Daron Acemoglu"> </figure>

Daron Acemoglu

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The rich get richer and more powerful

<figure><img width="800" height="875" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101152/636a26e29c7e80680e043a3djpeg.jpg" alt=""/><figcaption>Diwakar Chettri</figcaption></figure>Nepal’s Maoists fought a decade-long war for equality and <a href="http://archive.nepalitimes.com/news.php?id=19666#.XG518KIzbIU" target="_blank" rel="noopener">inclusion</a>. They have been in power off and on for the past 13 years after the conflict ended. But a report released last month shows that Nepal’s wealth gap is wider than ever.The average income of the richest 10% of Nepalis is more than three times that of the poorest 40%. Worse, the richest 10% own 26 times the wealth of the poorest 10%. The wealthiest 7% of households own 31% of the agricultural land.Read also: <a style="font-weight: bold; background-color: #ffffff; letter-spacing: 0.01em; font-size: 15px;" href="https://www.nepalitimes.com/?p=21815&amp;preview=true" target="_blank" rel="noopener">Mind the Gap</a>, Editorial<a style="font-weight: bold; background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=21822&amp;preview=true" target="_blank" rel="noopener">Some are more equal than others</a>, Anil Chitrakar<a style="font-weight: bold; letter-spacing: 0.15px; background-color: #ffffff;" href="https://www.nepalitimes.com/opinion/gadfly-opinion/removing-poverty-with-jobs/" target="_blank" rel="noopener">Removing poverty with jobs</a>, David Seddon<a style="font-weight: bold; letter-spacing: 0.01em; background-color: #ffffff; font-size: 15px;" href="https://www.nepalitimes.com/?p=21837&amp;preview=true" target="_blank" rel="noopener">Nepal's great income divide</a>, Ramesh KumarEven among the poor, women and excluded communities are even more deprived. Women own only 5% of the land in Nepal, and nearly half the Tarai <a href="https://www.nepalitimes.com/banner/nothing-to-lose-but-their-chains/" target="_blank" rel="noopener">Dalits</a> do not own their own farms, and 80% of the country’s indigenous families own less than 0.4 hectares of land.Poor women from minorities suffer triple discrimination: a poor Dalit woman is likely to receive less attention in <a href="https://archive.nepalitimes.com/article/nation/aim-for-fewer-patients-in-achham-possible-hospital,2022" target="_blank" rel="noopener">government hospitals</a>. Because of unpaid household work, women have lower socio-economic status, especially if they are from poorer <a href="https://archive.nepalitimes.com/regular-columns/GUEST-COLUMN/identity-politics-is-divisive-ideology,729" target="_blank" rel="noopener">marginalised communities</a>. Of the poorest women, half cannot read or write. A rich Nepali man is 50 times more likely to be literate than a poor woman.    ‘Gender inequality compounds the impact of economic inequality,’ states the Fighting Inequality in Nepal: the Road To Prosperity report released by HAMI, SAAPE and Oxfam, stating that remote, rural areas with ethnic minorities tend to be much poorer.The root of persistent inequality in Nepal is the unequal distribution of land. And although remittances from overseas workers has reduced the malnourishment rate, a third of children are still stunted and one in every ten children shows signs of wasting due to lack of food.Corruption, impunity and lack of accountability among the ruling elite perpetuates the vicious cycle keeping Nepalis poor. Experts say such a level of inequity is unsustainable in any country. If the wealth gap is not narrowed, not only will prosperity remain a distant dream, but Nepal could once again be mired in instability and conflict.

It's a rich man's world

This issue of Nepali Times focuses on growing inequality in Nepal. The income and wealth gap has been widening around the world, and Nepal is no exception.A few people on top of the wealth pyramid have a lot more than the numerous at the bottom. Governments and INGOs use the data to get aid which helps, in a strange way, to create a new category of people called the ‘Lords of Poverty’. Without too much generalisation, it is safe to say that poverty has become an industry in itself. Those who go to work every day to end <a href="https://www.nepalitimes.com/latest/security-reduces-poverty/" target="_blank" rel="noopener">poverty</a> would be unemployed and poor if they were successful.Read also:<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/editorial/mind-the-gap-2/" target="_blank" rel="noopener">Mind the Gap</a>, Editorial<a style="background-color: #ffffff; outline: 0px; font-weight: bold; letter-spacing: 0.01em; font-size: 15px;" href="https://www.nepalitimes.com/?p=21837&amp;preview=true" target="_blank" rel="noopener">Nepal’s great income divide</a>, Ramesh Kumar<a href="https://www.nepalitimes.com/opinion/gadfly-opinion/removing-poverty-with-jobs/" target="_blank" rel="noopener">Removing poverty with jobs</a>, David Seddon<a style="background-color: #ffffff; outline: 0px; font-weight: bold; letter-spacing: 0.01em; font-size: 15px;" href="https://www.nepalitimes.com/banner/its-a-rich-mans-world/" target="_blank" rel="noopener">It’s a rich man’s world</a>, Ramesh KumarWe need to start with a general agreement that there is, was, and will always be <a href="https://www.nepalitimes.com/banner/nothing-to-lose-but-their-chains/" target="_blank" rel="noopener">inequality</a> in human society. But we can create a safety net so that no one should ever have to live below an agreed standard and quality of life. This is the role of the government.There are proven ways to do this, but in Nepal there is a <a href="https://www.nepalitimes.com/here-now/political-quagmire/" target="_blank" rel="noopener">lack of political will</a> to make it happen. Hence we struggle. Trickle up works better than trickle down, and concentrates wealth in the hands of fewer people. Redistribution has to be by design. Tax money spent on <a href="https://www.nepalitimes.com/banner/after-quantity-nepals-education-needs-quality/" target="_blank" rel="noopener">education</a>, <a href="https://www.nepalitimes.com/editorial/poor-health/" target="_blank" rel="noopener">health</a>, infrastructure, information technology are all great equalisers, but not sufficient by themselves.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101152/636a26e79c7e80680e043a3fjpeg.jpg" alt="" width="505" height="1024"/><figcaption>Subhas Rai</figcaption></figure>We know that in the United States and Nepal where there is poor state health care, families have been known to go bankrupt when a member contracts a serious illness. Medical expenses not just drain their savings, but some sell land or take children out of school to pay hospital bills.What can we do about poverty caused by <a href="https://www.nepalitimes.com/here-now/go-easy-on-the-booze-this-holiday-season/" target="_blank" rel="noopener">alcoholism</a>, crime, disability, accidents, fraud, drugs and other addictions and <a href="https://archive.nepalitimes.com/article/nation/stigma-and-silence-mental-health-nepal,3486" target="_blank" rel="noopener">mental conditions</a>? When parents separate, terrorists attack, industrial accidents occur, people are pushed below the poverty line.Take the example of a village where everyone is equal till one family buys a tv set and puts up an antenna. The neighbours without tv are suddenly poor.The Sherpas are not rich because <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/banner/a-terrifying-assessment-of-himalayan-melting/" target="_blank" rel="noopener">Mt Everest</a> is up the trail from their village, but because the world made climbing mountains a business for the adventure minded.The people of <a href="https://www.nepalitimes.com/banner/the-karnali/" target="_blank" rel="noopener">Karnali</a> became poor because of the militarisation of the India-China-Nepal border after the 1962 war leading to the loss of trade and livestock movement with Tibet. The people of Kathmandu became rich because the land they owned became very expensive mainly due to failed rural development over the past five decades, and the insurgency that drove people into the valley to buy small parcels of land.The Thakalis of the <a href="http://archive.nepalitimes.com/news.php?id=16488#.XG5kzqIzbIU" target="_blank" rel="noopener">Kali Gandaki</a> Valley are richer than other ethnicities in that region because they traded in salt when the British were ruling in India and had a virtual monopoly on this critical commodity. Did these create the inequality we see today in Central Nepal? It most certainly contributed.Our ancestors were rich or poor depending on how much land they owned. Today with a new idea and entrepreneurial qualities, a person can become very rich very fast. Many still do not understand the difference between property and intellectual property.The author of the Harry Potter books or the founder Facebook do not count their wealth in ropanis of land. How do we then define wealth? Few people will tell you how much money they actually have. The same people who plead poverty in front of the potential donors will prove to the US immigration officer that they can pay for a four year college degree, to obtain a visa.The world and Nepal consist of those who have a lot, those who have little, but the biggest group of people are those in debt, and have not yet paid for what they have. The US may appear rich, but it is $22 trillion in debt. Next door, more than 57% of India’s GDP is owned by 1% of its population. Does it mean anything? Building fancy modern hospitals in Kathmandu may contribute to GDP, but it is also an indicator that people are sick from <a href="https://www.nepalitimes.com/banner/poisoning-the-air-we-breathe/" target="_blank" rel="noopener">polluted air</a>, water and food poisoned with <a href="http://archive.nepalitimes.com/article/nation/pesticide-laced-vegetables-continue-to-poison,1555" target="_blank" rel="noopener">pesticides</a>.Anil Chitrakar is the President of Siddharthinc.

Anil Chitrakar

Some are more equal than others in Nepal

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

Security reduces poverty

<h4>How to make money in an unequal world</h4>		
					<figure><img width="1400" height="1050" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107101156/6368d67e9c7e80680e031489jpeg.jpg" alt=""/><figcaption>Kunda Dixit</figcaption></figure>Only a handful of people in the world have more wealth than the rest of humanity. The number of zeroes behind their net worth is mind boggling, but what is even more difficult to understand is how some people became so rich while others have nothing.For example, every person in Kathmandu who has a few annas of land in Kathmandu is a rupee billionaire while ropanis and bighas of land in rural Nepal are not worth much. This is why many Valley residents feel they do not need to work like the rest of the world.There are others who watch television, see images of North America and Europe and feel that the moment they get to these places, they will become as wealthy as the people on screen. They also do not feel they have to work till they cross the immigration desk at Kathmandu airport.Many of us are aware of a time when we were able to buy one tola of gold when our salaries were Rs1000 a month. These days, if you make about Rs55,000 a month you can buy only one tola. If salaries were in gold, nothing would have changed. Twenty years ago, if you sold land and bought a vehicle, you now have no land and the vehicle is banned.About 25 years ago we bought a piece of land near Bhaktapur and watched its ‘value’ go up. We recently sold it and got many folds in return. With the money we made, we went to buy more land and realised we could only buy half the area we had sold.Unlike in rural Nepal where a subsistence way of life is an option, urban poverty is really bad here because only cash can get you what you need to survive – including water in a bottle. With the expansion of roads, which are regarded as the ultimate symbol of development, the traditional namlo has disappeared but are people better off and more wealthy? Mule train drivers have been replaced by truck drivers. What used to be a village where travelers spent the night are now only a few minutes or hours of drive in between and have lost their economic relevance.Food and vegetables grown for local consumption are now out of reach of locals who have no cash. <a href="http://archive.nepalitimes.com/article/editorial/Nepal-economy-supported-by-remittance-money,2874" target="_blank" rel="noopener">Remittance</a> from overseas workers plays a crucial role in ensuring that families have cash to pay for their basic needs. In some parts of Nepal, <a href="http://archive.nepalitimes.com/article/nation/bringing-in-two-miilion-tourists,3551" target="_blank" rel="noopener">tourism</a> has helped add to the income stream.Wealth creation becomes complex when we want to generate power from flowing rivers because it costs a lot of money up front and revenue does not come in for nearly a decade. There are market uncertainties which means you may not get the price you seek, or regulators who will not allow the power into the market because a particular country did not make the investment.Some want to create wealth by making a<a href="http://archive.nepalitimes.com/article/nation/products-made-in-nepal,3345" target="_blank" rel="noopener"> watch using rocks from the top of Mt Everest</a> for the dial. Religion and the fear of god seem to be a good means of wealth creation in the form of fees for rituals. Cold drinks, alcohol and processed food look like easy money makers as well. Nepal has a billionaire in the Forbes list who makes ready-to-eat noodles.But most Nepalis, like billions others around the world, make a living buying low and selling high. Most get by with a salaried jagir or renting out floor space. Artists seem to do really well when it comes to value creation. They take a piece of rock or a sheet of copper and create a masterpiece that can fetch huge returns. It is however not easy to find buyers. Most wealthy countries make money by making and selling weapons, and preventing others from doing the same. They need wars to stay rich.Some people in Nepal and the world are rich because they take resources such as trees, land, water, oil, minerals and people as a ‘free good’ and then monetise them. If you think wealth creation is complicated, wait till we discuss wealth distribution in the next installment.Anil Chitrakar is President of Siddharthinc

A wealth of meaning

India and Pakistan are twins separated at birth. Tensions between them have been at a hair trigger ever since independence and has erupted into full scale conflict at least four times in the past 80 years.
The 22 April terrorist attack in Kashmir that killed 25 Indian tourists and a Nepali citizen, threatens to escalate tension between the two nuclear-armed nations. India has squarely blamed Pakistan for the attacks, and Prime Minister Narendra Modi has given his military “operational freedom” to respond. Pakistan has said it has credible intelligence of an Indian military strike and its officials have promised a “full spectrum” response — a code for a <a href="https://nepalitimes.com/editorial/thinking-the-thinkable">nuclear retaliation</a>.
For Nepal, the killing of its national in the Pahalgam attack comes as another stark reminder that in conflicts from Afghanistan to Iraq, from <a href="https://nepalitimes.com/opinion/how-to-agree-an-armistice-in-ukraine">Ukraine</a> to Israel, <a href="https://nepalitimes.com/news/10-nepalis-from-one-town-fighting-in-ukraine">Nepalis are getting caught in the crossfire</a>. The last time full-scale fighting broke out between <a href="https://nepalitimes.com/opinion/peacemongers-at-india-pakistan-border">India and Pakistan</a> on Kargil in 1999, at least 22<a href="https://nepalitimes.com/here-now/india-s-trial-by-fire-for-soldiers-from-nepal?%27%5C%22="> Nepalis fighting for the Indian Army</a> were killed in action.
Three of Nepal’s immediate neighbours (China, India, Pakistan) have nuclear weapons, and they do not have good relations. With China supplying weapons, <a href="https://nepalitimes.com/editorial/war-and-warming">missile technology</a> and other support to Pakistan, this triangular friction could set off a regional conflagration.&nbsp;
<a href="https://www.nature.com/articles/s43016-022-00573-0" target="_blank">Research at Rutgers University</a> has calculated that even a week-long tactical nuclear exchange between India and Pakistan would throw up so much smoke and debris into the atmosphere that it would block out the sun for years, and lead to a collapse of the <a href="https://nepalitimes.com/news/grow-nourish-sustain-together-world-food-day">global food system</a>. This does not take into account the radioactive fallout that prevailing winds would blow up to <a href="https://nepalitimes.com/here-now/lives-on-the-line-in-the-himalaya">the Himalaya</a>, contaminating glaciers that are the sources of <a href="https://nepalitimes.com/here-now/saving-what-is-left-of-himalayan-rivers">Asia’s main rivers</a>.
The impact of <a href="https://nepalitimes.com/news/climate-breakdown-linked-to-thame-flood">climate breakdown </a>on High Asia was already ringing alarm bells about its <a href="https://nepalitimes.com/news/himalayan-icecap-melting-faster-than-thought">shrinking ice cap</a> reducing the dry season flow of water downstream. Water was going to be the next strategic commodity, geopolitical experts warned, and the next wars in Asia would be over water.
That water war is already happening. India retaliated to the Kashmir attack by suspending the <a href="https://www.nytimes.com/2025/04/24/world/asia/india-pakistan-indus-waters-treaty.html" target="_blank">Indus Waters Treaty</a> of 1960 mediated by the World Bank that has withstood at least three wars between India and Pakistan. The treaty gives India control over the three eastern tributaries of the Indus (<a href="https://en.wikipedia.org/wiki/Beas_River" target="_blank">Beas</a>, <a href="https://en.wikipedia.org/wiki/Ravi_River" target="_blank">Ravi</a> and <a href="https://en.wikipedia.org/wiki/Sutlej" target="_blank">Sutlej</a>), while Pakistan got water from the Indus and two of its western tributaries (<a href="https://en.wikipedia.org/wiki/Indus_River" target="_blank">Indus</a>, <a href="https://en.wikipedia.org/wiki/Chenab_River" target="_blank">Chenab</a> and <a href="https://en.wikipedia.org/wiki/Jhelum_River" target="_blank">Jhelum</a>.
Pakistan was assured of 70% of the annual flow, and India could use a reasonable amount of water for<a href="https://archive.nepalitimes.com/news.php?id=15231"> irrigation and hydropower</a>. &nbsp;Within days of its threat, India stopped water flowing down to Pakistan from the Chenab river and is reportedly preparing to do the same on the Jhelum.
The sabre-rattling has reached a crescendo. Besides threats and counter-threats there are also symbolic drills, with the Indian Air Force practicing landing on an expressway in Uttar Pradesh by its Rafale, Su-30 and Jaguar fighter jets to demonstrate ‘operational readiness’. In response Pakistan test-fired its Abdali ballistic missile that can carry a nuclear warhead and has a range of 450km.&nbsp;
The danger is that with ultra-nationalist rhetoric and the beating the war drums by both sides, India’s government and Pakistan’s military may have to ‘do something’ to appease domestic public opinion. But any tactical strike, an artillery exchange, or territorial incursion could quickly escalate out of control.
Expecting an Indian retaliation for the Pahalgam killings, Pakistan is using<a href="https://nepalitimes.com/opinion/interfaith-collaboration-for-nuclear-disarmament"> nuclear deterrence </a>and warning of “catastrophic consequences”. The two neighbours came close to a nuclear exchange in 2019 after an attack on the Indian military in Kashmir, and prompt international intervention led by the United States cooled tensions.&nbsp;
This time, the <a href="https://nepalitimes.com/news/trump-shock-wave-hits-nepal">Trump administration</a> is too distracted and not as engaged. Pakistan has denied it was responsible for the terrorist attack and called on Washington to stop a possible Indian retaliation. India and Pakistan have stopped overflights by each other’s airlines, and some international carriers have even stopped flying over Pakistan fearing an air war.
Washington, Beijing, the UN and the EU have all urged restraint. Iran, which has good relations with both India and Pakistan has sent its foreign minister to urge both countries not to go into a tit-for-tat war. Iran has its own nuclear flashpoint to worry about with tensions in Israel, &nbsp;Yemen and Syria.
India and Pakistan both share similar problems of joblessness, <a href="https://nepalitimes.com/here-now/why-nepal-s-poverty-rate-is-stuck">poverty </a>and <a href="https://nepalitimes.com/here-now/climate-change-new-threat-to-nepal-s-rhinos">environmental threats</a>. Neither side needs the threat of a senseless war, and we in the neighbourhood do not need it either.&nbsp;
Kunda Dixit
This Editorial 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.

Nukes in the neighbourhood

The streets of Patan are alive this month with lavender jacaranda trees under rain-washed skies as <a href="https://nepalitimes.com/banner/the-red-god-rises-again-in-patan">the chariot of Rato Matsyendranath</a> is pulled across town. This is the festival of the rain god, and inevitably the heavens opened up and pre-monsoon showers pelted the chariot as it started being pulled in Pulchok last week. Thousands of devotees, onlookers and the chariot procession organisers thronged the streets on the first day last week. The rhythmic cymbals and drums exuded a vibrant energy as the enormous four wheels turned and the chariot lurched.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025051007050_81df97744db16f732a419dc1f1579d235ce3df37642b078f50b83bd4bd026688.jpg" data-media-id="editor_1" data-image-id="2025051007050_81df97744db16f732a419dc1f1579d235ce3df37642b078f50b83bd4bd026688" data-rendition-name="original" width="1000" height="1503" loading="lazy" alt="Divine chariot"> </figure>  The<a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/Red-rain-god,3141"> red rain god</a> has Hindu and Buddhist antecedents, alternatively called Bungadya and<a href="https://nepalitimes.com/here-now/kathmandu-s-gravity-defying-chariot-festival"> Karunamaya</a> — reflecting Kathmandu Valley’s syncretic mixture of the two religions.&nbsp; “Bungadya is a profoundly <a href="https://nepalitimes.com/opinion/12-full-opinion/marketing-the-intangible">intangible form of heritage</a>,” explains heritage expert Monalisa Maharjan. “It embodies traditional knowledge,<a href="https://nepalitimes.com/multimedia/reviving-nepal-s-craft"> artisanal skills passed down through generations</a>. Local communities and specific families have specified roles in being custodians of the heritage, ensuring their survival over the centuries.” There are many legends and stories about this annual tradition. Lichhavi king Narendra Dev is supposed to have brought Rato Matsyendranath from Assam to Kathmandu Valley to convince Guru Gorakhnath to lift a spell that created a two-year drought in Kathmandu.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250510050520_347a9a398f8a9abc4a7fb4e2774fde8264cccbdce8bdab23851ab3f0e73c3e8a.jpg" data-media-id="editor_6" data-image-id="20250510050520_347a9a398f8a9abc4a7fb4e2774fde8264cccbdce8bdab23851ab3f0e73c3e8a" data-rendition-name="original" width="1503" height="1000" loading="lazy" alt="Divine chariot"> </figure>  Matsyendranath was Gorakhnath’s mentor, and upon seeing him, the serpents were released, unleashing the rains. The chariot festival honours the return of this life-giving rain. The deity is seen as an icon for thriving agriculture, t<a href="https://nepalitimes.com/here-now/before-the-next-monsoon">he arrival of monsoon</a> showers, and the welfare of the community. Read also: <a href="https://nepalitimes.com/opinion/the-reign-of-the-god-of-rain">The reign of the god of rain</a>, Vidhu Prakash Kayastha Till this day, the Rato Matsyendranath festival is no ordinary celebration. Patan does not sleep for a month as the chariot is pulled through various neighbourhoods. It unfolds at a state level with the president (formerly the king) attending the climax of the Bhoto Jatra in Jawalakhel later this month.&nbsp; The intergenerational transmission of tradition is unique in the world, and the reason the festival is one of the most vibrant cultural expressions that thrives despite inroads of modernity. The other unique aspect is that it is a transnational festival, binding Patan with Guwahati in the Indian state of Assam.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025051005058_8bc685ada13045d863b28e3eed91c931da2b510714586af6fd7eb5d1e298a24a.jpg" data-media-id="editor_9" data-image-id="2025051005058_8bc685ada13045d863b28e3eed91c931da2b510714586af6fd7eb5d1e298a24a" data-rendition-name="original" width="1000" height="1503" loading="lazy" alt="Divine chariot"> </figure>  “Unlike Nepal, where the deity commands grandeur and devotion, many in Assam are unaware of Rato Matsyendranath,” says Khagen Sharma of Gauhati University, which convened <a href="https://nepalitimes.com/news/nepal-assam-connection-revived">a symposium in February in Guwahati on the rain god</a>. Attending was a delegation led by Lalitpur Mayor Chiribabu Maharjan, organisers of the festival, and builders of the chariot. After the symposium, a committee was formed to explore and revive the tradition in Assam as well. Although the team had planned to visit Nepal this month, logistical challenges delayed the trip. Still, there are plans to build a Guru Matsyendranath statue in Assam to reestablish regular worship practices in the Guwahati shrine.&nbsp; The vines used to build the chariot in Patan are sourced from the jungles of Assam. But Sharma notes that in recent years unclear regulations have blocked the official import of the vines, although they are still brought to Nepal informally. The <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/makers-of-machhindranath,2204">chariot making</a> has also had a taste of modernisation in recent times. In the past, even a single nail or piece of steel was avoided. But over time, the wooden structure, particularly the shaft between the wheels, has been replaced with bronze. When that too proved unstable, metal clamps were introduced, which have become a pragmatic compromise.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250510050524_b2a819a5791612f14c81d30fc393dbd3f99f0c64b90a9110e8b0855d944bfa93.jpg" data-media-id="editor_12" data-image-id="20250510050524_b2a819a5791612f14c81d30fc393dbd3f99f0c64b90a9110e8b0855d944bfa93" data-rendition-name="original" width="1500" height="998" loading="lazy" alt="Divine chariot"> </figure>  Another welcome change is the focus on safety. Builders climbing the chariot’s tower now wear harnesses and there are efforts in crowd control. The most visible change in recent years has been the involvement of Patan’s enthusiastic youth in the festival — the tradition is now passing to a new generation. Says Matsyendranath expert Vidhu Kayastha: “There is more energy, the young people in red t-shirts this year were very organised, these modern touches aren’t diluting our culture, they’re keeping it alive in new forms.” He adds, “We are <a href="https://nepalitimes.com/here-now/searching-for-a-homeland-away-from-home">reconnecting with our roots</a>, we have more resources, more awareness than ever before. We must not be swept away by western values that may not serve us, and in some ways, cause more harm than good. We must revive our own culture.”&nbsp;

Divine chariot

In 2025, two seemingly disconnected acts of violence shattered the illusion of stability in the region. In March, <a href="https://www.ft.com/content/16f7f947-1e96-4206-9844-891378adc683" target="_blank">militants hijacked a passenger train</a> near the Bolan Pass in Balochistan, executing soldiers in cold blood. A month later, <a href="https://www.nytimes.com/2025/04/22/world/asia/kashmir-terrorist-attack.html" target="_blank">gunmen in Kashmir’s</a> Pahalgam Valley massacred tourists. 
In both Islamabad and New Delhi, <a href="https://www.aljazeera.com/news/2025/4/25/were-cursed-kashmiris-under-attack-across-india-after-pahalgam-killings" target="_blank">the reaction was reflexive:</a> condemn the violence, <a href="https://www.economist.com/asia/2025/04/22/india-and-pakistan-could-come-to-blows-over-kashmir" target="_blank">blame external enemies</a>, declare the situation contained. But South Asia’s leaders are not fighting terrorists alone. They are fighting the consequences of their own betrayals.
Across <a href="https://www.bbc.com/news/world-asia-26272897" target="_blank">Balochistan</a>, <a href="https://www.bbc.com/news/world-south-asia-11693674" target="_blank">Kashmir</a>, <a href="https://www.crisisgroup.org/asia/south-asia/india/346-finding-way-out-festering-conflict-indias-manipur" target="_blank">Manipur</a>, and beyond, decades of <a href="https://www.amnesty.org/en/projects/enforced-disappearance-in-south-asia/" target="_blank">enforced disappearances</a>, broken promises, and brute militarisation have hollowed out the social contracts meant to hold these nations together. The grievances that drove rebellions from the 1940s through the 1990s – demands for dignity, recognition, and political agency – were never meaningfully addressed. They were buried beneath asphalt and propaganda, paved over by development projects and security checkpoints.
States may claim victory. But their victories are mirages, dissolving the moment anyone looks too closely. South Asia’s unfinished wars are not relics of a violent past. They are live ammunition, loaded into the future.
<a href="https://www.theguardian.com/world/2025/mar/24/he-only-wanted-revenge-the-bloody-insurgency-in-balochistan-gaining-lethal-momentum" target="_blank">Balochistan</a> has been at war with Pakistan for most of its modern history. Rich in gas, minerals, and coastline, the province has been plundered for decades under the language of national development. 
Projects like the <a href="https://eastasiaforum.org/2020/11/26/pakistans-three-evils-cpec-and-good-governance/" target="_blank">China-Pakistan Economic Corridor (CPEC)</a> promise progress but deliver exclusion: minerals are mined, ports are secured, but Baloch homes are raided. 
The insurgency endures not because of foreign conspiracies, as Islamabad endlessly insists, but because the Pakistani state remains incapable of seeing its <a href="https://thebalochistanpost.net/2025/01/enforced-disappearances-in-balochistan-in-december-2024-tbp-report/" target="_blank">Baloch citizens</a> as anything other than a security problem to be managed.
In <a href="https://www.forbes.com/sites/ranisingh/2016/07/12/kashmir-in-the-worlds-most-militarized-zone-violence-after-years-of-comparative-calm/" target="_blank">Kashmir</a>, the Indian government claims to have <a href="https://www.nytimes.com/2023/03/08/world/asia/kashmir-village-defense-committees.html" target="_blank">“normalised” the valley</a> after revoking its autonomy in 2019. It <a href="https://www.cfr.org/global-conflict-tracker/conflict/conflict-between-india-and-pakistan" target="_blank">looks a lot like occupation</a>. Soldiers outnumber local leaders, dissent is criminalised, internet shutdowns suffocate public life. Tourism campaigns and investment summits cannot erase a generation raised under curfew and surveillance.
<a href="https://www.bbc.com/news/world-asia-india-66260730" target="_blank">Manipur’s descent into ethnic bloodshed</a> in 2023 exposed another fault line Delhi prefers to ignore. Long-simmering tensions between the Meitei and Kuki communities erupted into violence that shattered any illusions of northeastern integration. The central government’s delayed, politicised response made clear what many Manipuris had always suspected: they are citizens of India only when convenient.
Even the <a href="https://msf.org.au/rohingya-worlds-largest-stateless-population" target="_blank">Rohingya, stateless and exiled from Myanmar</a>, find themselves entangled in South Asia’s ethnonationalist calculus. Fleeing genocide, they are criminalised anew in Bangladesh and India – trapped between the countries that reject them and the memories that refuse to let them go.
South Asia’s states have excelled at suppressing rebellion. But failed at extinguishing the reasons rebellions rise in the first place. And the wars South Asia tries to forget at home have found new life abroad.
Across <a href="https://www.abc.net.au/news/2024-06-17/modis-indian-government-accused-of-spying-silencing-critics/103974414" target="_blank">Canada, Australia, Britain, and the United States</a>, diasporic communities have become memory-keepers and, increasingly, <a href="https://www.business-standard.com/world-news/khalistan-supporters-hold-protest-outside-indian-consulate-in-vancouver-123092600087_1.html" target="_blank">the agitators</a> for the struggles their home states would rather erase.
Khalistan flags fly outside Indian consulates in Vancouver and <a href="https://www.tribuneindia.com/news/punjab/perturbed-over-waving-of-khalistani-flags-at-an-event-in-melbourne-india-warns-australia-of-khalistan-separatists-and-their-links-with-terror-groups-458320/" target="_blank">Melbourne</a>. Tamil activists march through London, demanding accountability for the <a href="https://www.aljazeera.com/news/2024/5/19/grim-reminder-sri-lankas-tamils-mark-15-years-since-end-of-civil-war" target="_blank">massacres in Mullivaikkal</a>. Kashmiri protests in Washington and New York refuse to let India’s crackdown slip into diplomatic amnesia.
For host countries, these movements pose uncomfortable questions. Freedom of expression collides with fears of extremism. Clashes erupt between communities carrying wounds that their new homelands.
Meanwhile, South Asian states pursue their adversaries across borders. India faces allegations of <a href="https://www.nbcnews.com/news/world/canada-says-india-home-minister-ordered-campaign-against-sikh-activist-rcna177972" target="_blank">targeting Sikh activists for assassination in Canada</a> and the <a href="https://www.npr.org/2024/10/27/g-s1-29561/sikh-separatist-assassination-india" target="_blank">United States</a>. Pakistan continues to court Kashmiri separatists abroad while crushing Baloch dissent at home. <a href="https://apnews.com/article/sri-lanka-tamils-civil-war-dead-5b372b0bba567837c5a4d94250040e7d" target="_blank">Sri Lanka</a> lobbies furiously to brand Tamil diaspora organisations as fronts for terrorism, even as it stonewalls investigations into its own wartime atrocities.
The old insurgencies have not been defeated. They have been globalised. South Asia’s governments have long mistaken silence for stability.
In Punjab, India broke the back of the <a href="https://www.cnn.com/2023/10/06/india/india-canada-sikh-khalistan-analysis-intl-hnk/index.html" target="_blank">Khalistan insurgency</a> through brute force. The fields grew green again, the trains ran on time. But the wounds were never closed, the <a href="https://www.dw.com/en/why-is-indias-khalistan-separatist-movement-on-the-rise/a-65081729" target="_blank">movement’s heart beats</a> not in Amritsar but in Brampton and Surrey.
In Sri Lanka, the <a href="https://www.academia.edu/4738983/The_Man_Who_Destroyed_Eelam" target="_blank">military crushed the Tamil Tigers</a> with <a href="https://www.newyorker.com/magazine/2011/01/17/death-of-the-tiger" target="_blank">overwhelming brutality in 2009</a>. <a href="https://www.scmp.com/week-asia/politics/article/3264148/we-want-our-children-back-sri-lankan-families-still-demanding-justice-their-missing-loved-ones" target="_blank">Tamil families still search for their missing</a>, still mourn their dead – and still organise across the diaspora for justice that remains undelivered.
In Kashmir, Delhi boasts of new <a href="https://www.aljazeera.com/opinions/2023/2/4/kashmir-is-bleeding-its-economy" target="_blank">highways and investment corridors</a>, showcasing the region as a trophy of unity. But when the visitors leave and the cameras are packed away, <a href="https://harvardlawreview.org/print/vol-134/from-domicile-to-dominion-indias-settler-colonial-agenda-in-kashmir/" target="_blank">the checkpoints, the raids, and the quiet despair remain.</a>
Victory parades fade. Grievance endures. Suppressing insurgency may end battles. It does not end the ideas that fueled them. In a region where <a href="https://www.nytimes.com/2025/04/23/world/asia/kashmir-attack-india-pakistan.html" target="_blank">history is rarely past</a>, and memory is rarely voluntary, states that rule through repression are only ever buying time. And often, not very much.
South Asia’s unfinished wars are not accidents. They are the inevitable consequences of states that confuse conquest with consent, and erasure with reconciliation. They cannot legislate memory out of existence.
Every <a href="https://www.bbc.com/news/articles/c15qyyzz89lo" target="_blank">disappeared son in Balochistan</a>, every <a href="https://medium.com/the-wvoice/the-half-widows-in-kashmir-fef80c6b88e9" target="_blank">half-widow in Kashmir</a>, every <a href="https://www.doctorswithoutborders.org/what-we-do/focus/rohingya-refugee-crisis" target="_blank">refugee child born stateless in a Rohingya camp</a> carries forward the memory of betrayal – a memory that outlives soldiers, politicians, and peace accords alike.
The region’s future will not be decided by GDP figures or infrastructure projects alone. It will be decided by whether its governments can summon the political courage to face the truths they have long suppressed – or whether they will continue down a path <a href="https://theconversation.com/india-is-using-the-g20-summit-to-further-its-settler-colonial-ambitions-in-kashmir-205166" target="_blank">where forgetting is demanded</a>, and rebellion becomes inevitable.
Shyam Tekwani is a professor at the Daniel K. Inouye Asia-Pacific Center for Security Studies in Hawaii. This <a href="https://dkiapcss.edu/nexus_articles/ghosts-at-the-border-south-asias-unfinished-wars/" target="_blank">article</a> was originally published on <a href="https://dkiapcss.edu/security-nexus/" target="_blank">DKI APCSS Security Nexus.</a> The views expressed in this article are those of the author and do not reflect the official policy or position of DKI APCSS, the Department of Defense, or the US Government. The appearance of external hyperlinks does not constitute endorsement by the United States Department of Defense (DoD) of the linked websites, or the information, products, or services contained therein. DoD does not exercise any editorial, security, or other control over the information you may find at these sites.

Balochistan to Kashmir

The discourse around <a href="https://nepalitimes.com/editorial/nepal-s-corruption-carousel">corruption in Nepal</a> is mainly about politicians and bureaucrats accepting bribes and kickbacks. The private sector usually does not get as much blame.
But the prevalent <a href="https://nepalitimes.com/here-now/nepal-s-crony-communism-exposed">climate of cronyism</a> in Nepal means that the politicians and businesses are often hand in glove. The private sector is generally considered to be in favour of free market competition to encourage <a href="https://nepalitimes.com/here-now/nepal-has-to-curb-corruption-before-wooing-investors">investment</a> and innovation so that wealth is generated.
But insider trading, cartelling, and conflict of interest have become a given in Nepal’s private sector, and it all happens with the blessings of the government. In fact, <a href="https://nepalitimes.com/news/the-business-of-politics-in-nepal">tycoons have become legislators and politicians have become businessmen</a>.
“Such collusion kills the free market, and does not allow entrepreneurship and innovation to flourish,” says Kush Kumar Joshi, former president of the Federation of Nepal Chamber of Commerce and Industries (FNCCI).
An example of this is the Dangote Group of Nigeria, which was planning for a cement factory in Nepal. A Dangote executive told us that Nepal’s cement cartel got the government to sabotage their plans.&nbsp;
Earlier, the same cartel tried to do the same thing to the Chinese companies Hongxi and Huaxin, arguing that Nepal’s cement industry was capable of meeting domestic demand and did not require foreign investment. Ultimately, Hongxi partnered with Nepal’s Shivam and Huaxin with former FNCCI president Suraj Vaidya.
In 2019, industrialists successfully lobbied lawmakers to prevent foreign investment in agriculture by amending the Foreign Investment and Technology Transfer Act. Two years later,<a href="https://nepalitimes.com/news/aid-rarely-aids-agriculture-in-nepal"> foreign investment in agriculture</a> was opened, but only if 75% of the products were exported.
There is a long history of local lobbyists obstructing the entry of multinationals, like J Walter Thompson advertising agency and the international shipping company Maersk. Microbreweries, which can be operated by restaurants, have been prohibited at the behest of larger beer companies. The <a href="https://archive.nepalitimes.com/news.php?id=1292">private dairy sector </a>opposed the government-owned Dairy Development Corporation when it tried to begin production in Pokhara a decade ago.
“The<a href="https://nepalitimes.com/news/business-as-unusual?fbclid=IwAR3qEnUrVu9pRhZU669FR1F4zF95uPJKBpbQbq-q1Bm26p7OMVw-8JBP7FU"> business sector</a> is a reflection of Nepali society and government which do not care about <a href="https://archive.nepalitimes.com/news.php?id=6725">ethical business practices</a>,” says former CNI president Hari Bhakta Sharma. “The environment is not conducive to the few businessmen who are honest.”
Lobbying by businesses is not unusual in a democracy, but its basic character should be for the collective good, not individual greed.
“This kind of profit-over-everything mindset is fatal for businesses. Entrepreneurs must prioritise social, worker, and customer welfare,” adds Sharma.
Industrialists have actively lobbied for the removal of policies that prevent loan misuse and require bank loans in specific areas. They have partially reversed such directives.
Until the economic slowdown, Nepal’s fastest growing industry was construction. But even there, cement and steel rod manufacturers colluded by price-fixing. Banker Parshuram Kunwar Chhetri says Nepal’s corporates just do not believe in free market principles, adding: “Their ideas go against competition benefiting consumers. It is all about price fixing, cartels and monopolies.”
Read also:<a href="https://nepalitimes.com/news/poor-cash-rich-nepal"> Poor cash-rich Nepal</a>, Sonia Awale
Ideologically, Nepal’s Communist parties are supposed to be against the neoliberal free market, globalisation and the ‘imperialism’ of international financial institutions like the World Bank and the IMF. But cronyism is rife there, too.
Two years ago, the FNCCI and the Confederation of Nepalese Industries (CNI) accused the IMF of interfering in Nepal's domestic economic policy after the Fund demanded economic reforms as conditions for its Extended Credit Facility.
Says economic analyst Sujeev Shakya: “How can we expect an honest and ethical business sector when we as a society tend to laud those who earn money through illicit and corrupt means rather than lament their <a href="https://archive.nepalitimes.com/article/editorial/Editorial-moral,667">moral bankruptcy</a>?”
In October 2012, the Chaudhary Group’s CG Electronics warehouse in Kathmandu caught fire. A surveyor certified that the company had suffered Rs580 million damage, which was paid out by United Insurance Company.
The Commission for the Investigation of Abuse of Authority (CIAA) directed the Nepal Insurance Authority to investigate suspected insurance fraud, and found that the fire damage was actually Rs340 million.
The Patan High Court ordered Chaudhary Group to return the excess amount, a decision the company challenged in the Supreme Court. But in March, the apex court also found the Chaudhary Group guilty of insurance fraud.
Chaudhary Group's Binod Chaudhary, Nepal's only known dollar billionaire, is a Nepali Congress central committee member and MP, former president of FNCCI and founder of the CNI.
Then last February, the Central Investigation Bureau questioned Binod Chaudhary and arrested his brother Arun Chaudhary of CG Holdings over their alleged involvement in the illegal acquisition of the state-run shoe factory, following an investigative report by Ukaalo Online.
In 2021, Chaudhary and his family’s offshore business dealings landed them <a href="https://nepalitimes.com/here-now/nepal-s-richest-man-in-the-pandora-papers">in the Pandora Papers list</a> by the International Consortium of Investigative Journalists (ICIJ) for hidden assets in Panama.
Says Krishna Khanal, assistant professor of business ethics at King’s College: “Cronyism, political collusion, and anti-competitive cartelling are routine in the private sector. There is no other objective than to make money at any cost.”
Conflict of interest is rife in Nepal’s share market. In 2023, Ghorahi Cement owned by Triveni Group issued primary shares at a premium price. There is also evidence that a river was diverted for the construction of its business tycoon Upendra Mahato’s Mediciti Hospital. Bhatbhateni owner Min Bahadur Gurung is also involved in Lalita Niwas land grab scam in Baluwatar.
Meanwhile, Shankar Group Vice President Sulabh Agrawal, former honorary consul of Kyrgyzstan, was arrested by the police during the <a href="https://nepalitimes.com/news/nepal-s-uneven-covid-19-deaths">Covid-19 pandemic </a>after he was found selling 67 infrared thermometers from a vehicle with diplomatic credentials. He was later acquitted by the court for price-gouging.
Nepal’s most influential corporates were accused of evading billions in VAT by forcing invoices. Freedom Forum invoked the Right to Information to collect evidence of the involvement of CG Foods, Him Electronics of Shekhar Golchha, Morang Auto Works of Bishnu Agarwal, Sulabh Agarwal’s Jagdamba Steels, United Builders of Shakuntalal Hirachan, United Traders of Anuj Agarwal, and Min Bahadur Gurung’s Bhatbhateni Supermarket.
Most of these businessmen have held leadership positions in the FNCCI. Former FNCCI presidents Shekhar Golchha, Pashupati Murarka and Pradeep Jung Pandey, along with members of the federation's governing council Birendra Kumar Shanghai, Shashikant Agrawal, and others all have unpaid dues of Rs22 billion to Nepal Electricity Authority.&nbsp;
Former FNCCI president Chandiraj Dhakal was blacklisted by the Credit Information Bureau Nepal for non-payment of bank loans.
He had previously obtained permission to use 36 hectares of government forest land in Chandragiri for 40 years without competition, and had received an exemption to build a ropeway there. The 54th report of the Auditor General, stating that Nepal had suffered as a result of these decisions, had suggested that the state be investigated for leasing land at low rates allowing large revenue exemptions.
Another ex-FNCCI president Pradeep Jung Pandey was sentenced to prison in 2014 following a corruption case spanning three decades. Former FNCCI treasurer Gyanendra Lal Pradhan is currently facing charges of <a href="https://nepalitimes.com/news/black-white-and-grey">money laundering </a>through insider trading.&nbsp;
Former FNCCI president Pashupati Murarka was acquitted by the special court in a corruption case, but it is still pending in the Supreme Court. His cement company was found to have exploited the environment by over-mining limestone at various times.&nbsp;
His Siddhartha Minerals was also found to have encroached forests in Palpa, following which the District Forest Office registered a criminal case against him and co-investor Manoj Kedia. Arrest warrants were issued for six people, including Murarka and Kedia, but Muraka was released on bail, while Kedia is on the run.
Current FNCCI president Chandra Prasad Dhakal during his tenure as a member of the Securities Board of Nepal (SEBON) was accused of conflict of interest in being a regulator in the sale of shares in a company that his family had invested in.&nbsp;
Dhakal is the chair of the IME Group, which owns banks, insurance, remittance companies, several cable cars and hotels, and has been embroiled in numerous ropeway-related controversies — most recently for allegedly using political connections to suppress local opposition to a<a href="https://nepalitimes.com/editorial/progress-and-or-preservation"> cable car project in Pathibhara</a>.
Another example of fraud committed in collusion with political leadership is Himalayan Reinsurance, the investors of which include prominent businessmen who have led FNCCI and CNI in the past, including Shekhar Golchha, Pashupati Murarka, Bhawani Rana, Rajesh Kumar Agrawa, Rohit Gupta, Amit Mor, Satish Mor, Shashikant Agrawal, and Sulabh Agrawal.
During <a href="https://nepalitimes.com/here-now/lessons-not-learned-from-the-pandemic">the Covid-19 pandemic</a>, the Nepal Insurance Authority requested approval for a reinsurance company through an emergency notice, even though such a government-operated company already existed. But Himalayan Re-insurance was granted permission without any explanation as to why another reinsurance company was needed, or how it was selected out of the five companies that submitted proposals.
It was found that the Securities Registration and Issue Regulation was amended to allow this company to issue shares at a premium price, allowing the shares priced at Rs100 to be sold for Rs206. Himalayan Re-insurance raised Rs6 billion. The Companies Act stipulates that primary shares can be issued at a premium price only after three years of operation, a criteria Himalayan Re-insurance did not fulfil.
Open competition, consumer protection, worker welfare, environmental consciousness, anti-corruption, and tax responsibility are the foundations of a country’s healthy business world. But most captains of Nepal’s industry themselves do not uphold those principles.
The business community here is instead actively engaged in lobbying and colluding with the political leadership, and forcing the appointment of their candidates to lead various regulatory bodies.&nbsp;
“While the <a href="https://nepalitimes.com/multimedia/reviving-nepal-s-craft">new generation of entrepreneurs</a> operating in sectors linked to external markets such as IT seem sensitive to and compliant with professional codes, ethics, professionalism, and honesty are sorely lacking in Nepal’s business sector in general,” says Rameshore Khanal, former Secretary of the Ministry of Finance.
He adds: “Even those following ethical practices have been forced to seek political favours for fear of being left behind. There will thus be<a href="https://nepalitimes.com/banner/it-does-not-pay-to-have-integrity"> no integrity in the private sector </a>until there is honesty in politics.”
Following the publication of this report in Himalkhabar, a Supreme Court judge on the condition of anonymity said: “Businessmen do not adhere to the principles of judicial independence, <a href="https://nepalitimes.com/opinion/federalism-rule-of-law-and-the-judiciary">rule of law </a>and <a href="https://archive.nepalitimes.com/article/editorial/government-to-governance-editorial,4200">good governance</a>. They use intermediaries and political connections to approach judges and win cases. Meanwhile, nobody raises these issues in public.” &nbsp;

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