As the level of engagement between the two countries increases, the currently stable Nepal-China relations are likely to more and more resemble the topsy-turvy Nepal-India ties. Right now, the communist government in Kathmandu seems commit­ted to closer cooperation with Beijing, come what may. Pursued wisely, this policy of engagement with the Middle Kingdom could pay off. China seems committed to closer ties following the long-awaited Nepal visit by Xi Jinping last October. “The visit by a Chinese president after 23 years has helped scale up trust at the top political level, which in turn has had a pos­itive impact on other bilateral issues,” says Rupak Sapkota, deputy executive director of the Institute of Foreign Affairs, a govern­ment think-tank. The spreading coronavirus contagion in China could dent cooperation a bit, particularly in tourism. Nepal will now struggle to meet its goal of bringing 500,000 Chinese tourists in 2020. Otherwise, accord­ing to Sapkota, China has already assured of “special arrangements to offset the effects of coronavirus in projects, tourism, and other areas.”

The Chinese seem keen on improving the condition of the two roads linking the two countries: Araniko Highway and Kathman­du-Rasuwagadhi Highway as they believe that the much-touted rail-link could take some time to materialize, given the difficult terrains it has to pass through. If the two major road links can be turned to all-season routes, as China wants, bilateral trade could see a big boost.

Says Mrigendra Bahadur Karki, executive director of the Center for Nepal and Asian Studies, China has been in ‘action-mode’ in Nepal following Xi’s visit.

Headway in Chinese projects following Xi' s Nepal Visit 

Chinese President XI Jinping’s Nepal visit last October seems to have served as a catalyst to push forward several impending bilateral issues and projects. Apart from the agreements and under­standings signed, the visit helped resolve other pending issues as well.Xi was the first Chinese president to visit Nepal after a 23-year hiatus. During his visit, the two countries signed 20 agreements and under­standings. Before that, Nepali Pres­ident Bidya Devi Bhandari had vis­ited China in April 2019 to take part in the second Belt and Road Forum where she held high-level meetings and signed some agreements.

“The visit by a Chinese president after 23 years has helped scale up trust at the top political level, which in turn has had a positive impact on other bilateral issues,” says Rupak Sapkota, deputy executive director of the Institute of Foreign Affairs, a government think-tank. He adds that an environment of trust is already seen in multiple sectors.

Agreements are being imple­mented at a faster clip, although the coronavirus outbreak has affected them somewhat. “But as far as I know, the Chinese side has already assured Nepal that it would make special arrangements to offset the effects of coronavirus in projects, tourism, and other areas,” Sapkota says. After Xi’s visit, around two dozen Chinese delegations have come on follow-up visits to Nepal.

“At present, China and Nepal are stepping up efforts to implement the important agreements made by the leaders; some projects have already made progress,” said Chi­nese Ambassador to Nepal Hou Yanqi during a recent press meet.

Of late, the cross-border railway has been a hot topic of discussion. But due to the difficult terrains, the railway line will command tre­mendous resources, time, and cut­ting-edge technology. Regardless, the two sides are making progress on the rail line. After pre-feasibility, they have agreed to a three-phase feasibility study. In recent meet­ings, officials have agreed on what each side needs to do. Talks are also underway for the Kathamn­du-Pokhara-Lumbini railway lines.

Roads over rails

As the railway is still under study, it may take some time yet. At the moment, construction of new roads and upgrade of old ones remain a priority. There has already been some progress in upgrading two major roads connecting Nepal and China: Araniko Highway and Kath­mandu-Rasuwagadhi Highway.

The Chinese side is helping the Department of Roads in the third phase of maintenance of Aranika Highway, which was damaged by the 2015 earthquakes. There has also been an agreement to expand and blacktop Syaphrubesi-Rasuwagadhi section of the Kathmandu-Rasu­wagadi Highway. Yet with the Nepali side is yet to demolish roadside structures and remove electricity poles, there have also been delays. Once this phase is done, the road expansion will start in earnest.

If these two major highways come into operation in all seasons, they are expected to greatly boost bilat­eral trade. Due to the difficult ter­rains, the two sides have also agreed to build two tunnels along the high­ways to ease connectivity. An agree­ment to this effect was signed during Xi’s visit. “To facilitate the railway project, the process of building tun­nels has moved forward,” Prime Minister KP Oli said while address­ing the parliament on February 15. A team of Chinese technical officials is already in Nepal to study the tun­nels’ feasibility.

Mrigendra Bahadur Karki, execu­tive director of the Center for Nepal and Asian Studies, says that after Xi’s visit, China has been in action-mode in Nepal, which means all agreements signed during the visit will progress swiftly. “Xi came after the formation of a stable govern­ment in Nepal. It indicates China was in favor of a stable government so that projects could be imple­mented,” Karki says. “Obviously, China has become more proactive in Nepal, and this level of activity is only expected to rise.”

Delivering diversification

There has also been progress in the implementation of the Transit and Transport Agreement signed in 2016 as well. The follow-up proto­col implementation agreement was signed during President Bidya Devi Bhandari’s Beijing visit last year. The protocol came into effect on 1 January 2020. As per the agreement, Nepal is allowed the use of four Chi­nese ports for third-country trade and transit, in what is considered a major progress in changing Nepal’s land-locked status. It is a part of Nepal’s broader foreign policy of diversifying its trade and transit facilities.

There has also been a joint feasi­bility study for bilateral free trade agreement. China has been urging Nepal to sign the agreement at the earliest, but Nepal insists it needs more homework. The two countries are also in the process of choosing a location for China-Nepal Cross-bor­der Economic Cooperation Zone, and officials have already held a few rounds of talks in this regard.

Similarly, the two countries have agreed to hand over each other’s cit­izens who illegally cross the border, as a part of an agreement reached during XI’s visit on the boundary management system. Both the coun­tries are working to implement the agreement, even with concerns that such provisions could be misused to forcefully repatriate Tibetan ref­ugees.

Bilateral trade is also booming even though trade imbalance with China remains a concern. But things may be improving for Nepal. Accord­ing to data provided by the Chinese Embassy in Kathmandu, “In the first 10 months of 2019, the trade volume between China and Nepal reached US $1.2 billion, an increase of 36.1 percent year-on-year, of which Nepal’s export to China increased by 58.1 percent.”

There is also increased collabo­ration in tourism. With Xi’s visit, the number of Chinese tourists is expected to rise, notwithstand­ing the effects of the coronavirus epidemic. Chinese investment is increasing every year; it is already the largest investor in recent years. In fiscal 2018/19, China's investment in Nepal was US $114 million.

Progress amid uncertainty

Despite progress in other areas, the finalization of projects under the Belt and Road Initiative (BRI) is still being hindered. The two countries are yet to select BRI projects mainly due to differences over investment modality. Sapkota of the govern­ment think-tank blames the bureau­cracy’s tardiness for the slow prog­ress. “It is the responsibility of the taskforce formed under our foreign secretary to finalize technical details and present them to political leaders who can then settle other issues,” Sapkota says. Nepal had signed the BRI framework agreement in May 2017, and the government had ini­tially identified three dozen projects under it, which has now been cut to nine.

Ajaya Bhadra Khanal, research director at the Center for Social Inclusion and Federalism, says that China has adopted a policy of slowly but steadily expanding bilateral rela­tions after Xi’s visit. “Infrastruc­ture projects are in the preparatory stage, so there is not much visible progress. China has given priority to areas such as cultural relations, stra­tegic community and people-to-peo­ple ties,” adds Khanal, who has been involved in an in-depth research of Chinese engagement in Nepal in the recent past. “Enhancing political relationships is another priority area for China. China is developing ties not only inside the ruling Nepal Communist Party but also with the main opposition Nepali Congress and other parties.”

Even though there may in the future be many upheavals in Nepal-China ties, it is hard to see the increased level of engagement between them decrease

 ‘National security’ is perhaps one of the most nebulous concepts in statecraft. Broadly defined, and borrowing from US Legal, an American legal information provider, “it refers to the protection of a nation from attack or other danger by holding adequate armed forces and guard­ing state secrets.”According to US Legal, the term encompasses “economic security, monetary security, energy secu­rity, environmental security, mil­itary security, political security and security of energy and natural resources.”

Sticking with this broad definition of national security, many countries now consider climate change, which imperils the securities mentioned above, a national security threat and are stepping up efforts to cope with its adverse effects. That sadly is not the case in South Asia, and particularly in Nepal, even though the country is highly vulnerable to climate change-induced disasters.

The issue is frequently discussed among academic circles of South Asia, but not at the government or inter-governmental levels. In sharp contrast, the United States incor­porated climate change threats in its 2015 National Security Strategy. In 2019, the US Congress finalized the Climate Change National Secu­rity Strategy Act, directing “Federal departments and agencies to per­form certain functions to ensure that climate change-related impacts are fully considered in the develop­ment of national security doctrine, policies, and plans, and for other purposes.” Such focused attention on the security implications of cli­mate change has been missing in South Asia.

Our regional bodies like the SAARC and BIMSTEC also overlook this important aspect. For instance, the fourth BIMSTEC summit held in Kathmandu in 2018 expressed serious concern over environmental degradation. Its declaration talks about adverse impact of climate change and global warming on the fragile Himalayan and mountain eco-systems. But it stops short of recognizing climate change as a security threat. Likewise, the SAARC has an action plan on climate change but it too does not mention climate change as security threat for South Asian countries.

Elephant in the room

Climate change can result in large-scale loss of lives and homes. Besides inducing water scarcity and food and electricity crises, it could create fertile ground for terrorist groups and other criminals, posing obvious threat to national security. Floods, wildfires, and other disas­ters can contribute to social insta­bility and conflict in affected areas.

With this in mind, “we have finally incorporated the issue of environ­ment security and its link to national security in the recently formulated National Security Policy,” says Major General (Retd) Purna Bahadur Sil­wal, a member of a taskforce formed to draft the policy.

He bemoans the inadequate understanding of national secu­rity in government agencies, as climate change is still viewed exclusively through the lens of environmental degradation and natural disasters.

The national army should, Silwal argues, study potential threats of cli­mate change, ensure weather-resil­ience, and plan for the deployment of its personnel during climate-in­duced disasters.

The security forces would do well to prepare. In the future, cli­mate-induced natural disasters may put Nepal’s military installments and assets at risk. Climate change is also likely to affect the move­ment of security forces in times of conflict. The lives and livelihoods of rural folks have already been hit hard, which may lead to large-scale domestic or foreign migration, another potential source of conflict in these xenophobic times.

Maheshwor Dhakal, head of the climate change division at the Minis­try of Environment and Population, accepts that climate change is a seri­ous security threat. “Yet this fact is not reflected in government policy documents.”

Home truths

Perhaps Nepal is more vulnerable to a changing climate compared to other South Asian countries. Its glacier lakes may burst and cause floods, destroying infrastructure and people’s lives in lower lands. According to a report prepared by the International Center for Inte­grated Mountain Development (ICI­MOD): “One of the more spectacular effects of recent atmospheric warm­ing in the Himalayas has been the creation of melt-water lakes on the lower sections of many glaciers… many of these lakes have burst their natural retaining dams and moraines.”

The report recommends region­al-level meets of experts and leaders in order to develop a more coordi­nated approach to reduce the risk of glacial lake outburst.

All current institutional frame­works focus on disaster manage­ment, with the primary responsi­bility for it falling on the Ministry of Home Affairs and its disaster man­agement unit.

Krishna Prasad Oli, member of the National Planning Commission, also confesses to not seeing climate change as a security risk. “We have a disaster-risk reduction framework from the center to the grassroots,” he says. “Our official documents are yet to portray climate change as a national security threat”

Never mind the Venezuela fias­co. There is otherwise limited eco­nomic, political, cultural or peo­ple-to-people exchange between Nepal and countries in the Americas. This final part of our APEX series examines the status of bilateral rela­tions with countries in the American continent except the United States (which we dealt with in a separate series). Embassies and missions in Brazil, Canada, Washington DC and Nepal’s Permanent Mission in New York look after all the countries in the Americas with which Nepal has diplomatic ties.

Diplomatic relations with coun­tries of this region are slowly expand­ing. For instance, there was a signif­icant development in Nepal-Costa Rica relations when Prime Minister KP Sharma Oli paid an official visit to the country in September 2018 at the invitation of Costa Rican Presi­dent Carlos Alvarado Quesada. The two countries agreed to collaborate in areas of climate change, wom­en empowerment, rule of law, and agriculture. Such cooperation could deepen in the days ahead.

“Latin American and Asian coun­tries, especially China and India, are increasingly looking to deepen their economic, trade, investment and diplomatic as well as in some cases security and defense ties,” says Anil Sigdel, Director at Nepalmattersfo­rAmerica.org, a Washington-based think-tank. “This could be an oppor­tunity for Nepal.”

Nepal has long and deep engage­ment with Canada, and prepara­tions are underway to send Nepali migrant workers to Canada to work in agriculture, livestock, and hospitality. Canada receives half a million migrant workers from different countries every year, and the government of Nepal is requesting Canada to accept Nepali nationals as well.

Mexico is another country with which Nepal has a long diplomatic relation, even though Nepal does not have an embassy there. Mexi­co’s private sector has an interest in Nepal’s hydropower, tourism, and infrastructure.

“As Latin America looks beyond traditional partners such as Europe and the US, and converg­es with Asia in the framework of South-South cooperation, Nepal already has an advantage,” says Sigdel. “But for Nepal to engage with Latin America and benefit from its new business dynamism, it is vital that more Nepalis learn regional languages like Spanish and Portuguese.”

The Americas might seem distant. But as Nepal looks to diversify its for­eign policy in this globalizing world, they could as yet play an important role in boosting Nepal’s trade, tour­ism and investment.

On 25 January 2019, developments in the Latin American country of Venezuela created ripples in Nepal’s political and diplomatic circles. On that day co-chair of Nepal Communist Party Pushpa Kamal Dahal issued a statement, completely out of the blue, saying he “strongly denounces the US and its allies’ intervention in the internal affairs of Venezuela...”
There is little meaningful engagement between Nepal and Venezuela. But some leaders of NCP and fringe parties feel close to Nicolas Maduro’s country on ideological grounds. Or they at least betray some ideological affinity for governments with communist backgrounds. Dahal’s statement put Nepal government in a fix. The US, Nepal’s longtime ally, strongly objected and sought a clear government position.
The government seems to have learned. Referring to the ongoing discussions on the MCC inside the ruling party, government spokesperson Gokul Banskota said on January 30 this year: “We have an example of issuing press statement three times in the case of Venezuela. So Nepal should not try to explain the strategy and policy
of big powers.”
There is limited economic, political, cultural and people-to-people exchange between Nepal and countries in the Americas. But Nepal is trying to expand its diplomatic footprints there. This final part of our APEX series examines the status of bilateral relations with countries in the American continent except the United States (which we dealt with in a separate series).
Embassies and missions in Brazil, Canada, Washington DC and Nepal’s Permanent Mission in New York look after all the countries in the Americas with which Nepal has diplomatic ties.
Former Foreign Secretary Madan Kumar Bhattarai reiterates that except for the US and Canada, and to some extent Brazil, Nepal’s engagement in other American countries is minimal. “They are very far from Nepal,” Bhattarai says. “Among South American countries, Brazil is an emerging, hydropower-rich economy, which is why our engagement with it has somewhat increased.”
Wasted energy?
Of late, Nepal has been accused of haphazardly opening embassies in countries including in the Americas, with a question mark on their performance. But Bhattarai reckons aid utilization by smaller American countries could be an area of study for Nepal. “Some like Chile have been outstanding in the utilization of aid provided by Japan and other developed countries.”
One thing that brings Nepal and those countries somewhat closer is the Non-Aligned Movement. The United Nations operations, the Least Developing Countries (LDCs), and other international platforms provide added space for engagement.
Diplomatic relations with countries of this region are slowly expanding. For instance, there was a significant development in Nepal-Costa Rica relations when Prime Minister KP Sharma Oli paid an official visit to the country in September 2018 at the invitation of Costa Rican President Carlos Alvarado
Quesada. The two countries agreed to collaborate in areas of climate change, women empowerment, rule of law, and agriculture. They also agreed to work together on various multilateral forums. Foreign policy observers, however, criticized the PM’s visit
as worthless.
The two countries had established bilateral relations in 1977. Notwithstanding the criticism our PM copped, Nepal could possibly learn from Costa Rica on how to achieve the right balance between environment and development. The country has set a sterling example in renewable energy.
“Latin American and Asian countries, especially China and India, are increasingly looking to deepen their economic, trade, investment and diplomatic as well as in some cases security and defense ties, says Anil Sigdel, Director at NepalmattersforAmerica.org, a Washington-based think-tank. “This could be an opportunity for Nepal.”
“The increasing connectivity between the Americas and Asia is good news for Nepal as the country is well-known for its Himalayas and its rich culture throughout Latin America and the Caribbean,” Sigdel adds. The growing number of Latin American tourists visiting India and China, he reckons, could easily extend their trip by a few days to come to Nepal.
Meanwhile, bilateral relations with Argentina are also evolving. Foreign Minister Pradeep Gyawali visited Argentina to attend the Second High-level UN Conference on South-South Cooperation. During the visit, he met Vice Foreign Minister of Argentina, Gustavo Zaluvinen. The two discussed better bilateral ties and economic linkages.
Nepal also has friendly relations with Cuba, even though there are no economic and political ties between the two. Cuba had sent a team of medical doctors in the immediate aftermath of the 2015 earthquakes. Moreover, Nepal has adopted a formal position on Cuba-US relations: “Nepal always stands in favor of normalization of bilateral relation between the United
States and Cuba.”
The Caribbean country of Saint Lucia is the latest to establish diplomatic relations with Nepal (in 2019). Both Nepal and Saint Lucia are members of the Group of 77 and the Non-Aligned Movement.
Thaw with Canada
Nepal has long and deep engagement with Canada, and preparations are underway to send Nepali migrant workers to Canada to work in agriculture, livestock, and hospitality. Canada receives half a million migrant workers from different countries every year, and the government of Nepal is requesting Canada to accept Nepali migrants as well. (Canada does not have an embassy in Kathmandu and its mission in New Delhi looks Nepal affairs.)
PM KP Oli met his Canadian counterpart Justin Trudeau in 2018, marking the first high-level meeting between Nepal and Canada after the establishment of diplomatic relations. Till date, around 90 Canadians have ascended Mt. Everest, and around 50,000 Nepalis currently live in Canada. Moreover, around 7,000 Bhutanese refugees of Nepali origin have been resettled in Canada. Trade between two countries is miniscule even although political relationship seems to be picking up.
Canada-Nepal Parliamentary Friendship Group was formed in the Canadian parliament on 4 October 2016; it organizes regular exchange visits. There has been bilateral development cooperation through the Canadian International Development Agency since 1970s, with the earliest cooperation noted in 1952 via the Colombo Plan. After Nepal’s 2006 political change, Canada supported democratic transition and the peace process. On trade, there is duty free access to some Nepali products in the Canadian market.
Nepal exports tea, coffee, spices, animal fodder, articles of leather, handbags, paper, paper-board, wadding, felt and nonwovens, special yarns, ropes and cables to Canada. In turn, it imports edible vegetables, dried peas, lentils, certain roots and tubes, nuclear reactors, boilers, machinery and mechanical appliances and parts, and aircraft from the North American country. Of late, Canada’s private sector has shown an interest in Nepal’s energy sector.
Energy, rural development, health, aviation, education, geographical survey, agriculture, poverty alleviation, health care, and food security are areas of Canada’s support for Nepal.
In recent years, engagement with Jamaica is also on the rise. Tourism Minister of Jamaica Edward Bartlett had even taken part at the inaugural event of Visit Nepal Year 2020 in Kathmandu.
As Bhattarai the ex-foreign secretary hinted, Brazil has been enjoying outstanding economic growth in recent decades—possibly a reason for growing relation between Brazil and Nepal. There is technical cooperation between the two countries, and a bilateral consultation mechanism is also in place.
Mexico is another country with which Nepal has a long diplomatic relation, even though Nepal does not have an embassy there (Nepal’s Ambassador to the US serves as non-resident envoy to Mexico. Likewise, the Mexican Ambassador to India is accredited to Nepal as well.) Mexico’s private sector has an interest in Nepal’s hydropower, tourism, and infrastructure projects.
“As Latin America looks beyond traditional partners such as Europe and the US, and converges with Asia in the framework of South-South cooperation, Nepal already has an advantage,” says Sigdel of the Washington-based think-tank. “But for Nepal to meaningfully engage with Latin America and benefit from its new business dynamism, it is vital that more Nepalis learn regional languages like Spanish
and Portuguese."

For a long time the all-party mechanisms governing local level units after the dissolution of elected local governments in 1997 were considered among the most corrupt public entities in Nepal. In the absence of elected office-bearers, the local political representatives, who were really not accountable to anyone, open­ly siphoned off vital funds meant for development projects. The hope was that with the election of office-bearers, there would be a reduction in local-level corruption. It has proven to be a false hope.

Local elections were finally held in 2017, after the country went 20 years without elected representa­tives. This also marked the imple­mentation of federalism enshrined in the new constitution. But local representatives, the torchbearers of federalism, are giving a poor account of themselves. These days, 27 percent of all complaints (of over 24,000 in 2019) the Commission for Investigation of Abuse of Authority (CIAA) gets relates to local govern­ment units.

In another recent CIAA survey held across 15 sample districts, 67.6 percent of those surveyed report­ed increased corruption at the local level.

Thus, even though Nepal has climbed up the Transparency International’s Corruption Percep­tion Index this year, the local level appears to be a grim place. There are many factors abetting local level corruption. Rampant impunity, political protection of the corrupt, high electoral campaign financing, insufficient laws—they all contribute.

The growing perception that the agencies responsible for bringing federalism to people’s doorsteps are the biggest bastions of corrup­tion is dangerous for the health of the nascent federal republic. It’s true that the federal-level leaders in Kathmandu have been reluctant to delegate power and responsibility to the provincial and local levels. But the local units that often complain about the lack of funds and man­power are also making a poor use of what they already have.

This will continue to be the case until a sense of accountability is instilled in them. It’s difficult to keep a tab on all 753 local units in the country, as the CIAA is find­ing out. Never mind the new TI rankings; Nepal is still a thoroughly corrupt country.

In 2019, the Commission for Investigation of Abuse of Authority (CIAA), the anti-corruption watchdog, received 24,085 complaints related to corruption and irregularities in public and private offices across the country. Of them, complaints related to local governments were at an all-time high: almost 27 percent. The figure was 23 percent last year. Other complaints hardly crossed 15 percent. Does it mean our local bodies have grown more corrupt?
“The high number of complaints related to local level units means these bodies are thought of as highly corrupt,” says the CIAA spokesperson Yadav Koirala.
There is a perception that corruption at local level has been rising after formation of local and provincial governments following the 2017 elections. After the expiry of the term of local bodies in 1997, corruption was rife for over two decades. But, instead of improving after the 2017 elections, the situation seems to have actually worsened.
Government data and various surveys show corruption is more prevalent at the local level than at the center. Recently, the CIAA conducted a 15-district survey aimed at garnering public perception of corruption. Of the 3,000 respondents, 67.6 percent reported increased corruption at local units and 14.9 percent said they paid bribes to officials to get things done. Of the respondents, 31.6 percent were from Karnali Province, who reported corruption in 76 of 79 local units in the province. Respondents said corruption had increased after the formation of local units two and half years ago.
There are three main reasons for increase in local level corruption. First is impunity, which gives an impression that one can get away even if found guilty of corruption. Second is political protection, which runs from top to bottom and goes even beyond party lines. Political leaders try to block both the filing of a complaint and the action by anti-corruption bodies. The third reason is the tendency of elected officials to recover electoral expenses through abuse of power.
Serving political interests
Elections have been a costly affair in the past one decade. Candidates spend millions of rupees even to campaign for a ward chair’s post. They often incur debts, and try to recoup the money if elected. Former chief of the CIAA, Surya Nath Upadhyay, reckons there also “insufficient laws and mechanisms to control corruption.”
“The status of Province 2 is worse still as there is a social compulsion to earn money by any means,” adds Upadhyay.
Few weeks ago, the CIAA dispatched a long directive to local units pointing out possible areas of improvement. The commission has found that many local bodies allocate budget without proper endorsement, and transfer funds from one head to another without justification. Even after over two years, some local units are operating without an endorsed budget. This increases chances of corruption, according to the commission.
There is also a tendency of doling out money to party cadres in the name of medical treatment, which is against the Local Government Act 2017. The CIAA further states that local governments approve development projects without consulting experts, locals, and marginalized communities. The anti-graft body says projects are mostly designed to serve political interest.
The user committees formed at the grassroots level are another reason to worry as the CIAA finds them contributing to corruption in development projects. The commission has found that the same people who select projects sit in local user committees, which makes check and balance impossible. The commission has suggested dissolution of such committees.
“However, it is not easy to dissolve them without creating their alternatives on the ground. I don’t think it’s possible,” says Upadhyay. The CIAA is of the view that such committees should at least be kept away from political parties and bureaucrats who try to manipulate them for their advantage.
In some districts, the user committees and contractors receive big amounts in advance without doing anything. The CIAA has issued circulars to the local bodies to take action against these people and find alternative ways to complete work on time. There have also been cases of elected representatives operating heavy equipment companies. Moreover, there is a tendency of giving development tasks to the same company repeatedly, blocking competition, in clear violation of the Public Procurement Act. The CIAA has also found that in some places payments were made against fake bills.
Wasting taxpayer money
To reduce the chances of political leaders taking projects to their pocket areas, the CIAA has asked all local bodies to select projects based on relevance and long-term strategy.
The infrastructure sector probably suffers the most. Many projects are built without proper documentation. There is also a lot of forging, such as making fake reports of project completion. Technical officers who are responsible for monitoring the quality of construction rarely reach the sites. In several cases, there is lack of trained technical manpower, and the user committees do nothing more than exploit the situation.
Elected local officials used to draw salaries after assuming office in 2017, which was against the law. In October last year, the Supreme Court annulled the provincial laws that allowed this practice. As per the law, these officials are entitled to only some facilities including monetary incentives but not salaries. Many municipalities and rural municipalities have bought luxurious vehicles, which has been criticized as extravagance with taxpayer money.
Meanwhile, local governments get funds from both government and non-governmental organizations for ‘training and empowerment’. The CIAA finds that most such projects result in no positive outcome. Such programs have rather become platforms to pay allowances to government staff and political cadres. The same people participate in different events. In some cases, the CIAA found forged bills for event expenses.
Local bodies also seem to disregard environment while starting new construction. An environmental impact assessment is never held. Even the durability of the work is not studied. Newly constructed roads are so weak that they can be easily swept away by floods and landslides, giving local officials further incentive to allocate and siphon off funds for maintenance.

It’s a market of 1.3 billion people, with the population projected to double by 2050. With the steady rise of the middle-class in Africa, its importance as a business destination will only grow. Yet Nepal, which has gradually embraced economic diplomacy, has paid scant attention to Africa. Nepal is served by two embassies in the continent, one in South Africa and the other one in Egypt in northeast Africa. These two embassies also handle relations with the other 24 African countries which have diplomatic ties with Nepal. The engagement between Nepal and Africa has been predictably patchy.

Nepal made common cause with third world countries, many of them African, through the Non-Aligned Movement that started in the 1950s. In April 1955, representatives from 29 Asian and African governments, Nepal among them, gathered in Bandung, Indonesia to discuss the role of the ‘Third World’ in the Cold War, mutual economic development, and decolonization. There is still much for Nepal to learn from Africa, especially its booming economies like Ethiopia and Rwanda, which were until recently beset with debilitating hunger and civil wars.

As the proverbial Dark Continent “gets brighter by the day,” veteran diplomat Dinesh Bhattarai advises a change in approach to how Nepal sees Africa. “They have lots of natural resources and are developing fast. Nepal has long neglected the region, which needs to change,” he says.

Nepal’s engagement with Africa, albeit limited, has multiple facets. Thousands of Nepali army and police personnel are serving under UN peacekeeping missions there. Other Nepalis have also started going in significant numbers to countries like Egypt, Congo, and South Sudan. A less salubrious development is the smuggling of Nepali women and girls to the dance bars and brothels in Kenya and Tanzania, again in big numbers.  

Diversification is a stated goal of the KP Oli government, and there is a strong case to be made for diversifying into Africa. 

Most African countries are in a similar level of development to Nepal’s, and have similar agendas. Just like Nepal, many countries in Africa have had to maintain a delicate balancing act between the US and China. Climate change is another common scourge. Recently, South African and Nigerian investors have shown interest in Nepal. In this Visit Nepal Year, and beyond, the continent could also send many tourists here, a relatively cheap destination.  

Any way you look at it, there is a need for greater engagement between Nepal and Africa.  

Africa ‘brightening’ but Nepal yet to feel its new luster 

Nepal Army currently has 5,095 soldiers (including 183 women) under the United Nations peacekeeping missions in 12 conflict-hit countries and territories. Of them, seven—Congo, South Sudan, Sudan, West Sahara, Mali, Central African Republic, and Libya—are in Africa. Nepal first dispatched its troops to the continent in 1974, when they were deployed in Egypt. Nepali peacekeeping missions have since helped build strong people-to-people ties between Nepal and many African countries. Nepal Police started sending its own personnel in peace missions after 1992. Currently, there are around 1,000 Nepali police personnel serving in various UN peace missions, including in African countries like Sudan, Somalia, and South Sudan.  

Nepal has also supported democratic movements in the continent, for instance, in South Africa. It stood by the South African people in their fight against Apartheid. Nepal even served as a member of the United Nations Special Committee against apartheid from its inception in 1962. From 1969 to 1994, Nepal was vice-chair of the organization. But diplomatic relations with South Africa were established only after 1994, when apartheid ended and a new government led by President Nelson Mandela assumed power.

During the Panchayat period, there were several bilateral visits between Nepal and African countries. The frequency decreased after the restoration of democracy in 1990. Foreign Ministry data shows that Nepali monarchs visited the continent on several occasions after Nepal established diplomatic relations with countries there in the late 1970s and early 80s.

The Non-Alignment Movement (NAM) was another prominent platform that brought Nepal closer to Africa. In April 1955, representatives from 29 Asian and African governments, Nepal among them, gathered in Bandung, Indonesia to discuss the role of the ‘Third World’ in the Cold War, mutual economic development, and decolonization. This was the precursor to the NAM. Most African countries, like Nepal, have since been staunch NAM supporters. The movement, today comprised of 125 member and 24 observer countries, has over the years provided a wonderful platform to cultivate ties between African and Asian countries at the top political level.

They have also developed common agendas. For instance, both Nepal and its African partners are these days trying to balance competing American and Chinese influence. Says a foreign ministry diplomat, “African politicians now seek our help in dealing with these powers.” 

Missed opportunities

Nepal’s engagement with Africa is still miniscule though. Right now, Nepal has diplomatic ties with 26 of the 55 countries in Africa. But it has embassies only in two countries—South Africa and Egypt—which are tasked with looking after all other African countries as well. What’s worse, Nepali ambassadors rarely go to present their credentials in those countries.

As the proverbial Dark Continent “gets brighter by the day”, veteran diplomat Dinesh Bhattarai advises a change in approach to Africa. “They have lots of natural resources and are developing very fast. Nepal has long neglected the region, which needs to change,” he says.

Bhattarai deplores the tendency in Nepal of looking for immediate benefits. “With the resurgence of the African markets and its demographic dividend, this region should be our foreign policy priority,” he advises. “We must use the United Nations, the NAM, and other platforms to increase our interaction with African countries.”

Not the least because the number of Nepali migrant workers in Africa is gradually increasing. According to the National Human Rights Commission (NHRC), there were around 1,000 Nepali migrant workers in various African countries in 2016. In 2017/18, 37 Nepali workers got permits to work in Egypt. (The number does not include illegal workers.) This year, 25 more did. Government data show there are also significant number of Nepali workers in Congo, South Sudan, as well as in some other African nations. Again, the numbers are small but gradually increasing.

The trafficking of Nepali women and girls to Africa has emerged as a new problem. According to a 2018 NHRC report: “Trafficking of girls/women for dance, erotic performances, involvement in production of pornography in night clubs and other so called entertainment sectors in African countries like Kenya, Tanzania and South Africa is also reported,” says the report.

Egypt to Zambia

South African investors have shown some interest in Nepal. The Department of Industry has granted South African investors approval for two industrial plants and seven projects in Nepal, with total investment commitment of Rs 87.3 million ($0.85 million). This in turn is expected to create 253 jobs. With South Africa, there is also a huge potential in tourism. According to official figures, around 10 million South African tourists travel abroad every year. Few of them come to Nepal.

There is also scope of greater cooperation with Egypt in northeast Africa. Nepal and Egypt signed a Memorandum of Understanding (MoU) on establishing a bilateral political consultation mechanism on 16 July 2007. But there has been no progress since. Late King Birendra had paid an unofficial visit to Egypt in September 1983. Former King Gyanendra and Queen Komal also visited the Arab Republic in 2005. But there been no high-level visit from Egypt to Nepal.

Ties with Zambia in south-central Africa are gradually increasing too. King Mahendra visited had Zambia to attend the third NAM Summit on 8-10 September 1970. Similarly, Zambian Army Commander Lieutenant General Paul Mihova came to Nepal from 3 to 9 January 2018 at the invitation of Nepal Army. 

The newest country Nepal has established diplomatic relations with is Ghana in West Africa. The relations were established during Foreign Minister Pradeep Gyawali’s visit to New York last September. Before that, in June, 2018, Nepal and Burundi formally established bilateral ties.

There is a definite case for empowering Nepali embassies in Egypt and South Africa to expand ties with other African countries. For now, initiating high-level visits could be a priority. The African Union has come up with Agenda 2063 with a purpose of transforming Africa into a global powerhouse. Nepal will do well to tap into its vast potential.

Former Nepali Ambassador to Egypt Ram Bhakta Thakur says Nepal should not fail to benefit from the feeling in African countries that “third world countries everywhere should collectively fight for their political and economic rights.”

Timeline for establishment of diplomatic ties with African countries

1.         Algeria: 1975

2.         Congo: 2006

3.         Kenya: 1975

4.         Botswana: 2009

5.         Egypt: 1957

6.         Equator: 2006

7.         Ethiopia: 1971

8.         Gabon Republic : 1985

9.         Kenya  1975

10.       Libya   1975

11.       Mali     2009

12.       Mauritius :1981

13.       Mali :2009

14.       Mauritania: 2012

15.       Morocco  1975

16.       Mozambique   1986

17.       Nigeria 1975

18.       Seychelles 1996

19.       Sudan  1969

20.       Tanzania         1975

21.       Tunisia 1984

22.       Zambia            1986

23.       Zimbabwe 1984

24.       Lesotho 2010

25.       Burundi 2018

26. Ghana 2019

A society that restricts freedom of expression cannot be democratic. True, even in a democracy, you cannot say anything you want. Yet this bar is something set by freely interacting individuals. Whenever governments have tried to arbitrarily set limits on free speech, it has inevitably been for their political benefit, and not for the benefit of the larger society. For once you start setting these limits, it is hard to know where to stop. The federal government in Nepal is thus on a slippery slope.

A slew of bills now in the federal legislature sets a low bar on freedom of expression. If these bills are passed, just about anything written in news­papers or posted online may be deemed problematic, and the content-creator be made liable to the harshest of punishments: 3-5 years of jail or up to Rs 1.5 million in fines.

Under far more permissive laws, many Nepalis have already been arrested for their social media posts that in one way or other were critical of those in the government. There was no need for these new bills.

Federal upper house Nation­al Assembly member Prakash Panta says that with the help of new laws the government could directly interfere with people’s privacy. “Government agencies can even listen to [phone] con­versations between couples,” he cautions. Social media restric­tions could be especially prob­lematic for the young generation who like to freely express them­selves on digital platforms. Many of them may have no idea they are committing a crime. They are not amused. Says 20-year-old Prastuti Bhattarai: “Those in the government should serious­ly get a life instead of behaving like aunties of our community who gossip about things like who someone is talking to, what they are doing, and who are they roaming around with.”

With the proposed laws still in their formative stage and many of their likely targets potentially unaware of their restrictive pro­visions, the government may not face much of an opposition initially. But when people start realizing its true intent, there could be a harsh backlash.

Concerns grow as new bills tabled to curtail freedom of expression

Some provisions of the Nepal Special Service Bill allows the National Intelligence Department (NID) to intercept intercept phone calls, record videos, and track emails of ordinary citizens. As the NID is under the Prime Minister’s Office, such provisions are likely to be used against political opponents. More than that, it violates citizens’ privacy rights ensured by the constitution

But at least three bills that are being deliberated in the House of Representa­tives and the National Assembly of federal parliament clearly go against these consti­tutional provisions by making it difficult for both the media and the ordinary people to exercise the right to freedom of opinion and expression.

The fact that sections of the three laws in the making—the Information and Technology Bill, the Media Council Bill, and the Nepal Special Service Bill—con­tradict the country’s constitution has invited concerns and criticism from multiple quarters.

Some provisions of the Nepal Special Service Bill allows the National Intelli­gence Department (NID) to intercept phone calls, record videos, and track emails of ordinary citizens. As the NID is under the Prime Minister’s Office, such provisions are likely to be used against political opponents.

More than that, it violates citizens’ pri­vacy rights ensured by the constitution. Article 28 of the constitution says: “The privacy of any person, his or her resi­dence, property, document, data, corre­spondence and matters relating to his or her character shall, except in accordance with law, be inviolable.” If the new law is passed, government agencies will have sweeping powers to look into an individual’s document and data.

Timing and intent

When it comes to intercepting phone calls, a former senior official at the NID says that there is international practice of intercepting calls of suspi­cious persons with terrorist links.

“In our case, it could be used in criminal activities. But there is high chance of such provisions being used against political opponents as well,” he says. He further says the NID has never intercepted phone calls. “This is going to be the first time it is being practiced in Nepal. The question is over the intent,” he added.

Says National Assembly member Prakash Panta, “This act permits direct interference in people’s privacy. Now government agencies can hear conver­sations between couples. Emails sent by journalists to their editors will be tracked by government agencies, which could result in pre-censorship.”

After endorsement from the National Assembly, the bill will be forwarded to the House of Representatives for final approval.

Similarly, the Information Technology Bill, which was endorsed by the Develop­ment and Technology Committee of the House, has several provisions that constrain people’s rights to freedom of speech and expression.

Now, the bill will be tabled in full House and is likely to be endorsed as the ruling party has the numbers required. With objec­tion from various quarters, the bill was referred to the committee to incorporate public concerns. But no change was made. The bill, if endorsed, will replace the Elec­tronic Transaction Act that was promulgated in 2008, section 47 of which was often invoked to detain journalists.

The new bill provides for fine of up to Rs 1.5 million and/or five-year imprison­ment for individuals who post contents that sexually ‘harass, bully or defame others.’ Regulation of social media remains a widely discussed issue in European and western countries. In South Asia, such laws are perceived to be guided by an intention of suppressing individual’s right to freedom of speech and expression.

“It seems that political interest was dominant while these laws were formulated to restrict social media. They want to silence the views of the people who criticize the government,” says Tara Nath Dahal, former chairman of the Federation of Nepalese Journalist (FNJ).

Supreme neglect

The National Assembly is deliberating the Media Council Bill to replace the current Press Council Act, 1990. It also has provisions to restrict freedom of speech and expression. “If the Media Council Bill is endorsed as it is, the press council will be like a division of the Ministry of Information and Technology,” Dahal adds.

The FNJ had launched a series of protests against this bill, and the ruling Nepal Communist Party leaders had pledged to address the FNJ’s concerns. But there has been no progress.

The media fraternity has been condemn­ing the government’s lack of commitment to freedom of speech and expression. The Supreme Court, which is mandated to inter­pret the constitution, could questions such contradictory laws. But the court’s constitutional bench that is to look after these issues does not seem to care. The FNJ has taken serious exception to the Media Council Bill. “In the past, ruling party leaders have signed agreements with us not to bring laws compromising press freedom. But the government has often gone back on its own words,” rues Ram Prasad Dahal, secretary at the FNJ. “We are consulting various sections of the society about protesting against those laws.”

International organizations working on media freedom have said that the Informa­tion Technology Bill undermines freedom of expression.

“The controversial bill—passed by the Devel­opment and Technology Committee of the House of Representative (HoR) on Decem­ber 29—threatens freedom of speech online. Among the concerns expressed by Nepali journalist organizations are that it includes provisions to impose fines of up to Rs 1.5 million (over 10.000 €) or jail terms up to five years for posting content on social media that in the eyes of government may pose a threat to the country’s sovereignty, security, unity or harmony,” according to the International Federation of Journalists (IFJ).

The bill, if enacted, would replace the exist­ing Electronic Transaction Act that too has been widely misused to arrest and harass citizens for their social media posts. “Accord­ing to the cybercrime cell at Nepal Police, 106 cases were filed in the Kathmandu Valley in the last three years for ’illegal’ posts on social media. This apart, the bill provides for far tougher punishments for committing the same offense on the internet than in person,” the FNJ said.

Gokul Baskota, Minister for Communication and Information Technology

The Information Technology Bill is aimed at stopping cyber bullying. It will help maintain social discipline. Freedom does not mean a society without reasonable restrictions. The pro­visions are also intended at bringing various social media sites under the tax net.

 Anushtup Sherma, 21,
Student

“If someone can see the mes­sages I send over social media platforms, I would contact the police. But if the government itself is involved, what I can do except stop using those plat­forms? Bringing such restric­tive bills is against our funda­mental rights.”

 Aayuska Shrestha, 19,
Student

“There should be a system to notify the government if something suspicious happens in social media and investiga­tion conducted accordingly. This will help maintain right to privacy. The government should look to protect people’s privacy as well as to punish criminals.”

Isha Thapa, 20,
Student, and actor at Fun Revolution TV

“This is the age of democracy and technological advance­ment. People have changed over the years. They are now more aware about their rights, and can think on their own. So it won’t be easy for the gov­ernment to pull off this kind of dictatorial trick.”

Susan Chaudhary, 19,
Student

“I don’t have any problem if the government uses my per­sonal info for some investiga­tion with my consent. I will not accept if they use it for third party advertisement or any other unspecified purpose. If the bill is implemented, people will start speaking carefully.”

Saurav Thapa Shrestha, 23,
General Secretary at Yuwa, a youth-related NGO

“The policy should clarify that whatever I send and receive on social media can be seen only when the content is fishy or for some criminal investigation. But that needs to be done with our permission. There is no clarity on “hate speech”. They must sit with the relevant stakeholders before they finalize and pass the IT bill. Clarity is a must.”

Samiksha Shrestha, 19,
Student

“It’s okay to bring the law to control online contents used to sexually harass, bully, or defame others, and to punish those who are involved. But the same law should not penal­ize users for their private on­line posts. This will curtail their freedom of speech and right to privacy.”

Tebrej Siddiqui, 19,
Student

“The government should check only suspicious messages. Be­yond that it will be difficult to survive as our right to privacy will be violated and we will no longer feel safe.”

Sumikchya Shakya, 19,
Student

“Though this bill can con­trol cyber-crimes, I see many drawbacks as personal data will not remain private. People can misuse this bill for their in­terest. I am against it.”

Prastuti Bhattarai, 20,
Student

“I have been following news on this new bill, and I’m disappoint­ed. I do not trust the government with my privacy and my infor­mation, and I’m sure most Nepalis feel like I do. For instance, I might share my ATM PIN number with my parents in social media and there is no guarantee that people in authority will not abuse the information. Instead of eaves­dropping on someone’s private life, the government should focus on infrastructure development. Those in the government should seriously get a life instead of be­having like aunties of our com­munity who gossip about who is someone talking with, what they are doing, and who are they roaming around with.”

Most Nepali migrant workers still go to India. According to informal estimates, 6 to 10 million Nepalis are living and working in India. Migra­tion to countries other than India is a more recent phenomenon. (But as Nepalis don’t need permits to work in India, Nepal does not consider it a labor-importing country.) The trend of going to Gulf countries started with the 1990 political change, when Nepal opened up to the outside world. In the past decade, around 3.5 million Nepalis have left to work in various Gulf and some other countries.

Most of these workers are unskilled and do menial jobs, which still pay more than what they would get for similar jobs in Nepal. Among the top Nepali labor importing coun­tries are Malaysia (700,000 workers) and Saudi Arabia (400,000). There have been many reports of exploita­tion and even deaths of Nepali work­ers abroad, as the jobs they land are often different and more difficult than the ones stipulated in official papers. Yet labor diplomacy to bet­ter look after the wellbeing of its cit­izens toiling abroad has never been a government priority.

Many reckon a change to the pattern of Nepali labor migra­tion is urgently needed. Former Nepali ambassador to Qatar Surya Nath Mishra says time has come to explore job markets for highly skilled workers such as engineers, nurses, and doctors. “Our current focus is on sending unskilled man­power. Around 97 percent of Nepali migrant workers are unskilled,” he says. Why can’t we better train our people and send them to do high­er-level jobs, he asks?

Such a shift has also become necessary as unskilled labor migra­tion, and the national economy it sustains, can be disrupted at any time, due to multiple factors outside Nepal’s control. It would be won­derful if Nepal could employ these people for its own development. But that’s another story altogether.

Risks abound as globalization scatters Nepali migrant workers

The Gulf and other countries that host a large number of Nepali youths are apparently not a big priority. Unlike previous governments, the Oli-led government may have adopted a policy of looking beyond India and China, but there has been no significant change in its labor diplomacy. Besides the Gulf countries, there are thousands of Nepali workers in South Korea and Malaysia, but bilateral engagements with the two countries are minimal.

The first priority of Nepal’s for­eign policy, according to the Ministry of Foreign Affairs, has always been its immediate neighbors India and China.

The second, third and fourth priorities are its extended neigh­borhood, development partners or major powers, and destination countries for overseas employment, respectively.

The last group is comprised of the Gulf and other countries that host a large number of Nepali youths, and which apparently are not a big pri­ority. Unlike previous governments, the Oli-led government may have adopted a policy of looking beyond India and China, but there has been no significant change in its labor diplomacy.

Besides the Gulf countries, there are thousands of Nepali workers in South Korea and Malaysia, but bilateral engagements with the two countries are minimal. While the government is reaching out to more and more countries to attract invest­ment and technology, South Korea and Malaysia do not figure promi­nently in Nepal’s foreign policy.

The number of Nepali youths going abroad for work is increasing every year. But numerous issues—ranging from cheating in the home country to exploitation in the destination countries—render overseas employ­ment problematic. The issue of female housemaids is arguably even more complex.

“Nepal needs to be cognizant of the fact that the global eco­nomic slowdown and a reduc­tion in major infrastructure proj­ects will reduce the demand for manpower and, in turn, remit­tances,” says Ramesh Nath Pandey, who closely worked with these coun­tries as Nepal’s foreign minister in the early 2000s. As ruling parties seek big investment from big coun­tries, they pay less attention to remit­tances, which in recent years have been the backbone of Nepal’s econ­omy—contributing 26 percent to the national GDP.

136 countries now

“By the early 2000s, Nepali migrant laborers started going in large num­bers to Qatar and the UAE, where a lot of construction work had started, resulting in huge demand for able manpower,” Pandey recalls. The current Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, was the Crown Prince when Pandey visited Doha as Nepal’s foreign minister in 2005.

“I apprised him of the sincer­ity and excellent work ethics of Nepalis and told him about the need for a government-to-gov­ernment labor agreement,” Pandey recalls. The Department of Foreign Employment issues labor permits for 136 countries. Between July 2018 and July 2019, as many as 476,705 males and 32,123 females received a permit to work abroad. In the past decade, more than 3.5 million labor permits were issued.

An instance of Nepal’s lackadai­sical approach to labor diplomacy is the vacant ambassadorial posi­tion in South Korea, which hosts 40,000 Nepali migrant workers. A related problem is the flawed selec­tion process for ambassadors. Often, ambassadors are selected based not on their expertise or experience, but partisan loyalty.

In some cases, Nepali ambas­sadors have also caused con­troversy. For example, Maya Kumari Sharma, then ambassador to Qatar, was recalled in 2013 for her remark that the Gulf state was an open jail, alluding to the plight of Nepali migrant workers there. The ambassadorial posi­tion in the Nepali embassy in Doha remained vacant from 2013 to 2017. Observers highlight the need for a foreign policy that gives due prior­ity to labor migration. They suggest that instead of merely issuing work permits for unskilled laborers, Nepal needs to analyze the vision of desti­nation countries, the technologies they are adopting, and the kind of manpower they need, which will give us a better bargaining position.

Former Nepali ambassador to Qatar, Surya Nath Mishra, reckons it is about time the government explored job markets for highly skilled workers such as engineers, nurses, and doc­tors. “We are just focusing on sending unskilled manpower. As many as 97 percent of Nepali migrant workers are unskilled,” he says.

Mishra adds that migrant workers are facing a lot of problems, and most often the source of these problems is in Nepal. He points to the unholy nexus between the Foreign Employ­ment Board and ‘manpower’ agen­cies, which facilitates the sending of laborers in illegal ways. As a result, workers face problems when they reach destination countries. “Things will not improve until labor is made a major plank of our economic diplo­macy,” he suggests.

Nine most popular destinations for Nepali migrant workers

Malaysia

Nepal and Malaysia established diplomatic relations on 1 Janu­ary 1960. At present, an estimat­ed 700,000 Nepalis are working there. There are also prospects of Foreign Direct Investment from Malaysia to Nepal. “Malaysian business companies are investing in the areas of telecommunication, tourism, education, training, trad­ing, and services sector,” according to the Ministry of Foreign Affairs. Another area of cooperation be­tween the two countries is tour­ism. In 2018, over 23,000 Malay­sian nationals visited Nepal.

In light of the multiple reports on the problems Nepali migrant workers face in Malaysia, the two countries are working to reform the recruitment process.

Saudi Arabia

 Nepal and Saudi Arabia formally established diplomatic relations on 15 March 1977. Around 400,000 Nepali nationals have been work­ing in Saudi Arabia, the highest among Gulf countries. There used to be high-level visits between the two countries during the Pancha­yat era. Nepal’s engagement with Saudi Arabia increased substan­tially when we started sending la­borers a decade ago.

According to official data, the volume of trade between the two countries is about $100 million. Another possible area of coop­eration is tourism. From 2017, a direct flight has been connecting Kathmandu with Dammam.

Qatar

Nepal and Qatar established diplomatic relations on 21 Janu­ary 1977. Qatar currently hosts nearly 365,000 Nepali migrant workers, mostly in services and construction sectors. The prospect of employment in Qatar is ev­er-growing due to the massive in­frastructure-building for the FIFA World Cup 2022. There have been concerns about the exploitation of Nepali workers.

UAE

Nepal and the UAE established diplomatic relations on 22 Janu­ary 1977. About 250,000 Nepali migrant workers have been work­ing in the UAE, mostly in the fields of security, transport, sales, hospi­tality, construction, and cleaning. There are frequent bilateral visits between the two countries, which signed an MoU on Recruitment, Employment and Repatriation of Workers on 14 June 2019. The MoU has established a framework for transparent recruitment, ethi­cal employment, and safe repatri­ation of Nepali migrant workers, and replaced the 2007 MoU.

Kuwait

Nepal and Kuwait established diplomatic relations on 25 Feb­ruary 1972, but Nepal opened an embassy in Kuwait only in 2010. Kuwait’s ambassador in New Delhi is accredited to Kathmandu. There are around 70,000 Nepali work­ers in Kuwait, 40 percent of them women.

South Korea

Diplomatic relations between Nepal and the Republic of Korea (RoK) was established on 15 May 1974. There are around 40,000 Nepali workers employed in the ROK. While South Korea opened its embassy in Kathmandu in 1974, Nepal established its own in Seoul only in 2007.

Nepal and the RoK reached an agreement on recruiting Nepali workers under the Employment Permit System (EPS) in 2007. Ne­pal’s participation in the EPS sys­tem has been mutually rewarding for both countries. Nepal-South Korea cooperation encompasses the areas of health, women em­powerment, disaster recovery, poverty alleviation, and education, among others.

Bah­rain

Nepal and the Kingdom of Bah­rain established diplomatic rela­tions on 13 January 1977. There are about 25,000 Nepali nationals in Bahrain. Of late, Bahrain has become one of the most preferred destinations for jobs for Nepali workers.

Oman

Nepal and Oman established diplomatic relations on 21 Janu­ary 1977. The flow of Nepalis to Oman is steadily increasing; there are now around 20,000 of them.

Israel

Diplomatic relations between Nepal and the State of Israel were established on 1 June 1960. Israel opened its embassy in Kathmandu in March 1961. Currently, around 3,000 Nepali nationals are em­ployed in Israel, which has become one of the favorite destinations for Nepalis, particularly female work­ers. Israel has proposed recruit­ment of Nepali caregivers through a G2G process.

India considers both Nepal and Bhutan as falling under its exclusive sphere of influence. Nepal’s case, however, is different as it has started adopting a balanced approach toward India and China, and has been reaping maximum benefits from China’s economic growth. Bhutan, on the other hand, does not have diplomatic relations with China even while it enjoys ‘special relations’ with India.

But public opinion in Bhutan is gradually changing. The Bhu­tanese seem to have realized that total dependence on India may not always be tenable and that their country should reach out to China. Mainly after the Indian block­ade on Nepal in 2015, there are growing voices in Bhutan calling for an end to complete dependence on any one country. China has been offering economic assistance to Bhutan under the Belt and Road Initiative (BRI).

Trade, tourism and transport

Although Nepal and Bhutan established diplomatic relations in 1983, they do not have embassies in each other’s capital. The Nepali and Bhutanese ambassadors in New Delhi are accredited respectively to Thimpu and Kathmandu. High-level exchanges between Nepal and Bhutan are rare. Although Nepal and Bhutan engage in some trade, the prospects of expanding cooperation remain largely unrealized.

Nepal exports to China sculptures and statuary, electric transform­ers, soaps, garments and footwear. Major imports from Bhutan include gypsum, coal and cement. Even though the balance of trade has traditionally been in Nepal’s favor, Nepal has sustained trade deficit in recent years, according to Nepal’s Ministry of Foreign Affairs. The two countries signed an Air Ser­vice Agreement in February 2004, and Druk Air and Bhutan Airlines operate scheduled flights between Paro and Kathmandu. While 5,428 Bhutanese tourists visited Nepal in 2015, as many as 10,923 of them came here in 2017.

In 2005, a Memorandum of Understanding (MoU) was signed between the Federation of Nepal­ese Chambers of Commerce and Industry (FNCCI) and its Bhuta­nese counterpart to promote trade and enhance economic relations between the two countries. The first meeting of the Nepal-Bhutan Bilat­eral Trade at the level of Joint Secre­taries of the ministries of commerce was held in Kathmandu on 17 March 2010. The second meeting, held to discuss the draft agreement on bilat­eral trade, took place in Thimpu on 24-25 May 2011.

Lhotsampa logjam

Summing up Nepal’s relations with Bhutan, an official at the Minis­try of Foreign Affairs, who declined to give his name as he was not authorized to speak on the matter, says, “Ties are neither cordial nor strained. In the past three decades, the issue of Bhutanese refugee dom­inated the bilateral agenda. While Nepal brought up the issue in every bilateral meeting, Bhutan was reluc­tant to take its citizens back.”

The issue of Bhutanese refu­gees has been a contentious topic between the two countries. Even after 16 rounds of ministerial-level talks, Bhutan did not agree to repa­triate the Lhotsampas (Bhutanese people of Nepali descent), who fled their country three decades ago and lived in seven UNHRC-spon­sored camps in eastern Nepal. Since 2007-08, about 113,000 Bhutanese refugees have been reset­tled in the US and a few other coun­tries under a UN third-country reset­tlement program.

There are still about 6,600 refu­gees in two camps in eastern Nepal who have rejected third-country resettlement. While the refugees enjoy limited freedoms, Nepal has refused to integrate them locally and has been asking Bhutan to resolve the issue through talks. Thimpu, on the other hand, has been trying to persuade Kathmandu to integrate the refugees permanently.

“Nepal wishes to solve the Bhuta­nese refugee problem with all sin­cerity and expects the same degree of response from Bhutan,” says the official document of Ministry of For­eign Affairs. “Among other things, Nepal has been requesting Bhutan for the revival of the Ministerial Joint Committee for resolving the problem. Nepal holds firm view that the refugees should be repatriated to their homeland at the earliest with dignity and honor.” Nepal also main­tains that Bhutan has not demon­strated interest in talking further about the refugee issue.

But Dr. Nishchal N. Pandey, Direc­tor at the Center for South Asian Studies, says Nepal and Bhutan need to move beyond the refugee issue, which he thinks has been an obstacle to furthering bilateral ties. “We have many commonalities with Bhutan. There is a dire need to explore opportunities in trade, tourism and investment, including in hydro-power development. More and more students from Nepal and Bhutan are studying in each other's educational institutions,” says Pan­dey, who wrote his PhD dissertation on Nepal-Bhutan relations.

The right Nepal has given to the Bhutanese airlines to fly to Kath­mandu and then to India has helped promote Bhutanese tourism, Pan­dey points out. “But Bhutan does not give Nepalis easy on-arrival visas the way we do to the Bhutanese,” he says.

On the issue of the Bhutanese refugees, Pandey believes the resettlement in the US and other countries of the bulk of the refu­gees is a relief for Nepal. “Lately, we can see the resettled Lhotsampas actively offer their views on democ­racy and human rights on social media,” adds Pandey.

Back to the future

While Nepal is a secular coun­try with a Hindu majority, Bhu­tan is predominantly a Buddhist nation. The first visit of the king of Bhutan to Nepal took place in 1987. While he was here to partici­pate in the third SAARC summit, he also went on a pilgrimage to Halesi Madhadev in the district of Khotang. Late King Birendra visited Bhutan in 1988 for consultations on SAARC issues. When Nepal was a mon­archy, royal members of the two countries frequently visited each other's country.

Following the 2015 earthquake in Nepal, Bhutan contributed $1 mil­lion to rehabilitation efforts; Prime Minister Tshering Tobgay travelled to Kathmandu to personally hand over the aid money. A 78-member relief team was also deployed in the aftermath of the quake on the request of the Bhutanese king.

Many are of the view that the two countries should hold more high-level visits. “The Swambhunath is an epitome of our age-old ties. The stupa has been renovated several times in history, and each time the Bhutanese ruler of the day has sent help,” Pandey continues. Many other monasteries and stupas in Nepal receive regular support from Thimpu. “We need to pass down such aspects of bilateral relations to the future generations. A high-level visit is long overdue. As close neigh­bors in almost the same geo-strate­gic location, we need to look toward the future and not allow the past to hold us back,” argues Pandey.

There is only limited potential for expanding bilateral relations because of the refugee issue. The sooner it is resolved, the better the prospects of Nepal-Bhutan ties.