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Estimates for Nepal’s software and IT services industry’s annual revenues range from $200 million to $1 billion. The sector is ideal for exports–IT services can be easily sold across borders, capital expenditure needs are low, and demand is globally ubiquitous and growing. A vital element for growth and higher export revenues in the sector is a robust talent pool and regular upskilling of that pool. Technology changes rapidly, therefore, skilling and reskilling is a constant. In fact, conversations with industry players indicate that the skills shortage in Nepal’s local ecosystem is such that even young employees can command a 100-200 percent hike when they switch jobs. This is good for the employee in the short-term but is not healthy for the industry. While Nepali companies can tap into regional and global talent pools to solve immediate human capital constraints–hiring from South Asia, the African continent, Latin America, or Eastern Europe–more should be done to improve the local talent pool for sustainable development. The government, in partnership with the private sector and development partners, can develop and implement a digital skills action plan. Important pillars of this action plan are: rolling out accredited digital training programs, building closer industry partnerships, and improving access to training and opportunities. This will have a profound impact on creating and providing jobs for more Nepalis. Vocational programs Nepal has a population with an average age under 25 years and they can rapidly upskill to integrate into the global digital value chain. About 50 lakhs students took the SEE (10th grade) examinations in 2022. Even if only 20 percent develop industry-relevant digital skills, they can boost our software and IT industry, currently estimated to employ less than 100,000 people. A vocational component at the secondary level—a technical SEE or a technical +2 level course—can expand the talent pipeline and sensitize students to a global industry at an earlier age. The software and IT industry does need a broad range of basic and advanced digital skills. Service exporters in countries like Bangladesh, the Philippines and Indonesia utilize a much broader array of digital skill sets in job roles such as sales associates, account managers, graphic designers, marketing specialists, customer service representatives, financial advisors, and social media managers.  Vocational programs ranging from a couple of weeks to a few months could fill a vital gap to supply the needed workforce in Nepal. Nepal needs more software engineers and project managers, but not everyone needs and wants a 4-year college degree to work in the software and IT services industry. Intensive 6-month vocational courses that teach students specific tools, such as JavaScript or SQL, can provide a higher return on investment for the students as well as employers. Industry partnerships Close collaboration between the public and private sectors, and academia is vital for a digital skills action plan to work. This is because of the fast-changing nature of the industry as it relates to skills and demand. Nepal’s IT companies are already building such partnerships: Fusemachines has partnered with Kathmandu University to promote Artificial Intelligence in curricula; Deerhold Ltd sources its employees extensively from its relationship with Deerwalk Institute of Technology; and Leapfrog Technology has an internal learning academy and strong emphasis on internships and apprenticeships. Many other local companies are also building such partnerships. Such lateral partnerships are needed with government bodies as well. Private companies have recently come together to establish a software association (Nepal Association of Software & IT Services Companies—NASIT) to advocate appropriate policy. NASIT identifies talent development as a key pillar of work and could serve as a key stakeholder in this conversation, along with other organizations. Government-academia-civil society roundtables can inform and support implementation of a digital skills action plan. Such roundtables would provide policymakers and academia with important insights into the nature and future of the digital industry. Local industry players can inform academic and public sector institutions on what demand exists—in terms of quality and quality—in verticals for IT services where Nepal can compete globally. More industry meeting platforms are needed. Industry interaction and collaboration events such as hackathons, meetups, or other events that support and promote learning and upskilling create much-needed public benefit and social good. Private companies, wanting to do more of such industry events, need more support to maintain platforms to regularize meetups and learning events. Public support for platforms will be vital in encouraging industry linkages, especially with government schools and universities in cities outside of Kathmandu. Better Access  A digital skills action plan should prioritize equity to ensure that the digital opportunity in Nepal is inclusive. Interventions of a digital skills action plan, therefore, must ensure that people have access to content, facilities, and services for career development. There is a lot of content and learning material freely available on the internet, and there is no need to reinvent the wheel. To enable more people across Nepal to learn and pick up digital skills, it is important to ensure that such materials are accessible to as many people as possible and as cheaply as possible. Hardware solutions means that Nepalis, especially those that are poorer and outside of core cities, need access to cheap mobile devices and internet services. More schools, TVET training institutes, and colleges also need to be linked with reliable broadband connections. The hardware agenda is important because of low device penetration outside of cities. Various government bodies have already helped build computer labs in government schools, yet the efficacy of these labs and hardware-based programs is unclear. Such efforts need to be strengthened, accompanied by strong frameworks to assess efficacy. Software solutions include access to high-quality and accessible training programs—TVET programs, coding bootcamps, or other digital skills bootcamps—and mentorship networks. There is a lot of content and learning materials freely available on the internet already and an agile solution would enable access to this online content. Basic English language courses, for example, can be very effective because much of the digital world operates in English. As a starting point, support may be extended to establish computer clubs across schools and colleges in the country. Each school or college with a computer club can then come together under a national-level mentorship network. These clubs and mentorship networks can, in turn, help improve the use of technologies in the classroom itself. Ultimately, mentorship networks should allow students to build and visualize their careers and career roadmaps. A Nepali student’s educational and professional journey is fragmented. Such fragmentation is likely to continue as newer technologies disrupt traditional industries and the ways people work. Career guidance roadmaps, tools, and counseling support may, therefore, be as important as teaching hard skills. Conclusion Nepal will benefit from a digital skill agenda that will fuel an export-based software and IT services industry. This will produce strong and deep spillover impacts on local digital transformation as well. Key policy interventions for a digital skills plan include building a vocational education program starting from the SEE level up, fostering industry collaborations to make policymaking more responsive, and improving access to training programs and job opportunities. The government, in partnership with the private sector and development partners, needs to develop and implement a digital skills action plan. The author is a Senior Fellow with the Nepal Economic Forum and leads the Digital Chautari, a platform to facilitate conversations on creating a Digital Nepal. 

Provincial governments’ budget spending has remained poorer than that of the federal government, according to the mid-term budget review report. The overall expenditure of the provincial government stood at 16.21 percent against the federal government's expenditure of 32 percent during the first six months of the current fiscal year. According to the review report for the fiscal year 2022/23, provincial governments spent Rs 49.53 billion against the total allocation of Rs 305.5 billion. Capital expenditure of the provinces has remained poorer than recurrent expenditure, a common situation resembling the federal government. As per the report, the average capital expenditure of seven provincial governments stood at 12.45 percent during the first half of the current fiscal year. Among the provinces, Province 1 tops the chart when it comes to spending. The overall expenditure and capital expenditure of the Province 1 government stood at 24.88 percent and 19.27  percent respectively. Madhes province has the lowest overall expenditure of 10.9 percent and Karnali province is the poorest in terms of spending capital budget at just 9 percent. The federal government has admitted that all three layers lack spending capacity.  “On one hand, the budget transferred to the provinces and local levels as part of the fiscal transfer remains stuck in the banks,” states the mid-term review of the budget. “On the other hand, the federal government has been forced to mobilize internal loans to cover the deficit of the budget.” But officials in the province say that it was natural for provinces to struggle to spend resources because they don’t have enough human resources. “During the employment adjustment process, most of the government employees stayed at the center. Even after five years since the provinces were set up, they are still facing a shortage of human resources,” said an official of the Bagmati province. “Around 2600 vacancies have been created for our province but there are only around 1400 employees working.” In recent years, the federal government has been sending many small projects to the provinces and the local government for their implementation. “While projects to be implemented are increasing, human resource requirements have not been addressed. Hence, it is natural that the allocated budget is not spent,” said the official of Bagmati province. With provincial and local governments relying heavily on fiscal transfer from the central government, the report emphasized that they should be able to mobilize more resources from the areas under their jurisdictions. In the fiscal year 2020/21, the provincial government collected just Rs 15.14 billion from their internal resources, which is just 17.69 percent of the total revenue collected by provincial governments including the amount received through revenue sharing. The report has also called for improving spending capacity and cash and fund management capacity. State of Provincial Governments' Expenditure (First Six Months)

The evening in the dining room of the Mystique Hotel, Lo Manthang, buzzed wild—the noise so loud that voices needed raising. Packed almost to the gunwales by trekkers, cyclists, and motor-bikers, the crowd included us too—four cyclists, Khashing, our team leader, Shayeet, Diwas, and this scribe. The heated room wore a festive ambience; everyone appeared in a back-slapping mood, and so we were—the vibe in the room was almost palpable. It was our last day in Lo Manthang, a 13-day cycling tour we did in 2018. We were talking with an Australian cyclist group when my eyes clapped on Wangchhen Lowa, better known as Ram Gurung by all in Lo Manthang, sitting before the iron stove sipping Shyu Cha (Tibetan tea made from yak butter, salt, and tea). I brightened up and excused myself from my friends and the Aussies to join him for a chat. With 20 years at ACAP (Annapurna Conservation Area Project), Wangchhen aka Ram, also co-owner of the hotel, seemed to know what's what about Mustang and helped me with a wealth of information. Following an exchange of customary pleasantries and more insight into the walled city of Upper Mustang, its inhabitants, rich culture, religion, and history, the topic, upon my curiosity, diverted to the ancient death ritual called the sky burial, still practiced in Upper Mustang. With over two decades of experience in conservation, biodiversity, and flora and fauna of the Trans-Himalayan region, Lo Manthang, it was a privilege conversing with him. Before touching upon the sky-burial issue, he briefed me on the vultures of Upper Mustang, which play a crucial role in the consummation of sky burials. They included especially the Himalayan griffons (Gyps himalayensis) and lammergeiers (Gypaetus barbatus), the bearded vultures. "In recent years, the number of Himalayan vultures, especially griffons and lammergeiers, the bearded vultures in the Upper Mustang region, has declined disastrously," said Wangchhen. The Himalayan griffons survive on carcasses and carrion. They nest in high cliff edges and even deserted sky caves in Mustang—often sighted at Chhuksang, Yara, Ghemi, and other wind-ravaged arid cliffs. Native to Mustang and other Trans-Himalayan regions like Dolpo, Humla, Jumla, and Manang, these highland carnivores are large birds and weigh from eight to 12 kg with a wingspan of 2.5m to 3m. The Himalayan lammergeiers, a close cousin to griffons, too, scavenge like the griffons and live on high crags, but weirdly their diet comprises 90 percent bones (the marrow being their favorite). Almost as large as the griffons, if not bigger, they gobble up the shredded bones after the griffons pick them clean. To honor the dead, funeral ceremonies and death rituals in Nepal vary from one culture to the other. Typically, the deceased body is largely either cremated or buried. In Tibet, singular to their culture, a death ritual commonly performed is a sky burial. "Going by the legend, the concept of sky burial in Mustang has its roots in Tibetan culture, preserved in Upper Mustang for eons. Widely exercised to date in Tibet, countries like Bhutan and Mongolia, too, follow the ritual," said Wangchhen. Some three decades ago, the sky burial ritual ubiquitous in Mustang gradually declined following trappings of haphazard modernization, making inroads into the once pristine area. "This funeral practice, widely performed in Tiri village in Kagbeni, suddenly ceased; it has been over 10 years since any sky burial took place there, but the ritual continues in a village called Dhamkar in Upper Mustang among the ethnic minorities called the Lowas (Gurungs, Bistas and Biswokarmas)," said Wangchhen. He sounded very convincing, as he has Lowa roots. When someone from this community dies, a high Lama (priest) scrutinizes the deceased's zodiac sign, astrologically juxtaposing it against five Tibetan Buddhist elements—the earth, water, fire, air, and the space—and determines the method for the departed's funeral. If the high Lamas decide to go for a sky burial, the funeral ceremony begins, accompanied by the beat of drums, cymbals, and dung chen (a Tibetan long-pipe horn). After the rites, the body is handed over to the monks assigned to behead the body, dismember the corpse, and hack it to pieces. The severed head gets buried, and the chopped-up pieces are moved to an elevated site to feed the vultures. Curiously, the commotion lures vultures from great distances to assemble at the site and swarm at the chopped body tissues, jostling each other to grab their choicest piece. By performing this rite, the sacred vultures, an emanation of wisdom deities, transport the deceased's soul to heaven—so believe the local folks. Strange as it may sound, the vultures do not feed on the meat if the deceased were a sinner. The sky burial rite is nothing less than gruesome but a stark reality founded on Tibetan spiritual values. "Based on Buddhist tenets and values, the philosophy behind the sky burial ritual is insightful and profoundly spiritual. When you die, your spirit leaves your body, leaving behind nothing but a mass of flesh and bones. If your worthless body can serve as a source of sustenance to another living being, it's good karma to a noble cause," said Wangchhen Lowa. A dull boom of a gong, punctuated by the sharp clang of cymbals and the haunting wail of a long pipe horn, sounded from a nearby monastery as Wangchhen Lowa rounded up on the eerie account of Lo Manthang's sky burial. [email protected]

Have you ever faced a problem that you thought you could never overcome? Did you feel frustrated and helpless in that situation? Did it seem in that moment or phase that there was no light at the end of the tunnel? In retrospect, I can think of many such instances in my life. When I scored low on a math exam in the ninth grade, I thought I could never improve again. When a family member passed away during my late teens, I thought the despair would never end. When I couldn’t study medicine because of missing a scholarship seat by a small margin despite trying hard for three years to get into medical school, I thought I would never dare to dream again. When I tore my knee ligament a few years back, I thought it was the end of life then and there. Feeling pessimistic is common. There could be plenty of reasons why we might feel so, for instance, due to aspects such as the magnitude of the problem, a lack of problem-solving skills, waiting for change without making an effort to create change, the history of the relationship (in the case of interpersonal relationship problems), habitual patterns, mindset, etc. Let us take a scenario to understand what happens when we are pessimistic. Suppose you and your partner discuss how you are talking to each other less. Both of you blame each other’s work, friends, and families for not being able to spend more time together. Instead of finding a solution, you end up having a bitter argument. If you look at this situation pessimistically, you might think in terms of the 3Ps – Permanent (the thinking that a problem will never end), Pervasive (it is going to affect everything and all of our life areas), and Powerful (we can do very little to nothing to make things better). Permanent: It’s all going to go downhill from here. Pervasive: Our friends are closer to my partner. I don’t think I should reach out to them. I’m sure I’ll even ruin my presentation at work tomorrow. This is just great. Powerless: I’m just tired of these fights. I don’t think I can do anything about this now. Dr Martin E. P. Seligman, an American psychologist known for his contribution to positive psychology, calls this the ‘3Ps of Pessimism.’ These 3Ps of Pessimism prevent us from seeing that no problem is permanent, they don’t affect all the areas of our life, and that there is always something within our control. We can overcome the 3Ps of Pessimism with the ‘TIE’ of Optimism, which can help us look at things optimistically. TIE stands for Temporary (a problem, no matter how big or small, does not always last; it is only for some time), Isolated (it only affects some aspects/areas), and Effort (there are some things always within one’s control on which one can focus to make things better). Let’s reframe the previous problem with the help of the TIE of Optimism. Temporary: I’m sure we will patch up soon if we work toward having a conversation. Isolated: Just because we fought does not mean I can’t reach out to our mutual friends. Oh, I also have to work on an assignment. Let me get to that first. Effort: I can talk to my partner in a few hours or tomorrow when we’re both calm. I hope we can find ways to spend more time with each other. While a healthy sense of pessimism can be helpful to prepare us for worse situations, having a generally negative outlook can make us victimize ourselves. We might be unable to think through things well and assume that we will always be subject to bad things. We might become rigid and stop working things out because we see no point in doing so. We might also resort to reacting instead of responding. It can be difficult to remain optimistic when we face difficulties, but an optimistic outlook can help us take ownership of our reactions. We stop making ourselves victims and blaming people or situations for how things are. We see a range of possible choices on which we can act. We work on what we can do well instead of remaining stuck in all those aspects that seem to be spiraling out of control. This slight shift of perspective makes us consider all different alternatives rather than just remaining fixated on strategies that don’t work. Think about a situation in your life when you were pessimistic. Can you relate the 3Ps to that situation? How could the TIE of Optimism have helped you look at the same situation with a sense of hope and possibility? Aprajita Jha is the linchpin at My Emotions Matter, an education initiative that helps individuals and teams learn the mindset and skills of Emotional Intelligence. You can learn more at myemotionsmatter.com