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The World Bank Group has now categorized Nepal as a Lower-Middle Income Country (LMIC). The classification based on the country’s per capita Gross National Income (GNI) is useful for the bank’s operational lending policy but it does not quite capture Nepal’s level of development or measure of welfare.

A country labeled an LMIC may not even be so as if it has a large informal economy and subsistence level of economic activities. This is also not the best way to measure wealth distribution to reduce income inequality. Thus, Nepal’s ‘graduation’ does not have anything to do with the lifestyles of those under extreme poverty.

Zambia, Africa’s second-largest copper producer, achieved middle-income country (MIC) status in 2011 after a decade of impressive growth that averaged 7.4 percent a year. But the growth benefitted only a small segment of the urban population and had a limited impact on poverty. Zambia still ranks among the countries with highest levels of inequality. Over 58 percent of Zambians earn less than $1.90 a day and three-fourths of them live in rural areas with no access to quality health, education, and electricity. The country’s elite now has easy access to both natural and financial resources, but the poor have seen no change in their fortunes after their country was declared an MIC.

Like Nepal, Zambia too is landlocked. But unlike Nepal—which lies between two big and prospering countries India and China—it is surrounded by many big and small countries like the Democratic Republic of Congo, Angola, Botswana, Mozambique, and Malawi. Yet Nepal and Zambia face similar problems. Zambia’s debt-financed connectivity infrastructures have supported the economy but also created a big financial burden. Persistent fiscal deficits have increased general government debt to 88 percent of GDP in 2019. Regrettably, the debt-fuelled growth took place in the absence of a well-designed wealth distribution system. Moreover, Zambia’s debt composition is shifting toward commercial and Non-Paris Club bilateral creditors such as China.

The case of Zambia is worth considering for Nepal if it is to avoid being lulled into a false sense of security brought about by high growth figures and better country status based on GNI. They only highlight the country’s ability to process loans with bilateral and multilateral creditors. And these loans eventually leave the country vulnerable to high debt and low performance in terms of multi-dimensional poverty. In Nepal, approximately 50 percent population lives under the poverty line, as per the multidimensional poverty index.

The World Bank’s new classification of Nepal based on 2019 data does not consider the impact of Covid-19. Nepal’s remittance-driven economy may face severe challenges if the number of returnee migrant workers continues to go up. Nepal has made significant progress in the past few decades in poverty reduction in terms of the single dimension of income. But there is no clarity whether that is linked to growth or to job creation. Remittance-based poverty reduction is unsustainable.

In Zambia, as rising debt burden has hampered resource allocation in other important public spending areas, the priority is on fiscal consolidation. Covid-19 will only make things worse. In our case, there is still some space for public debt. But we must be careful about debt-financed growth, and it has no clear linkage with bringing about meaningful changes in the lives of those who suffer from multi-dimensional poverty.

It seems like we as a country are getting richer. But is this wealth being generated and distributed evenly? The sole focus on getting more and more loans on the back of our better income classification could prove disastrous.

As the lockdown eases and people get back to work, transport has been a major problem for workers in Kathmandu who don’t have private vehicles. At this time, the services of a few ride-sharing apps which had made commute easy in Kathmandu are being missed.

Sunny Mahat of APEX talked to Asheem Man Singh Basnyat, Regional Director of Pathao, on the plans and possibilities of ride-sharing apps during and after the Covid-19 crisis.

How was Pathao doing before the lockdown?

We had 50,000 riders before the lockdown, and one million service users. We were doing around 30,000 rides a day at an average of Rs 105 a ride.

Do you think the government will use this pandemic as an excuse to ban ride-sharing companies once and for all?

The government, the public sector, and the private sector are three pillars for national development. In times like these, cooperation between these sectors is important. As most policy issues have been addressed, we don’t think this pandemic will be an excuse to ban ride-sharing.

How safe would ride-sharing bikes be compared to other means of public transport when we need to maintain social distancing?

We have equipped our riders with protective gears, masks, sanitizers, and we are also disinfecting our vehicles. There are many contact points in public vehicles, which make it difficult to stop the spread of the virus, unlike the bikes that do not have many contact points. So everyone can be certain of the safety level of ride-sharing vehicles, which are more reliable than other means. Further, contact tracing is much easier with ride-sharing platforms. So infected cases, if any, can be tracked early.

What will be the ‘new normal’ for ride-sharing services after the pandemic?

Safety is definitely the new buzzword and it is indeed essential for us as a responsible company. Thus ride-sharing services will be more cautious and serious about safety. Measures like mandatory wearing of masks, equipping riders with sanitizers, and disinfecting our vehicles are likely to stay here for long. Further, as we step out of this pandemic, there is likely to be more demand considering that ride-sharing platforms are a lot safer than other platforms. We are even thinking of sealed cabins to minimize contact between the passenger and riders in cabs.

Do you believe ride-sharing services can find the same or similar level of business when things get back to normal? 

On one side, people might purchase more private vehicles, reducing demand. However, while the economy is sliding and people are losing jobs, they might find ride-sharing a better option to buying vehicles. On this note, we believe ride-sharing will be even more popular once things get back to normal. There is a speculation that public vehicles will not be able to operate the way they had been before the pandemic. If so, the price of public transport will be almost equal to ride-sharing. And given that ride-sharing is much safer with precautions, we expect an increase in business. 

Developing Nepal as a ‘bridge’ between two Asian giants was a promising proposal. The China-India-Nepal trilateral cooperation idea sparked hope that the country of 30 million would prosper side by side with its two neighbors. The two would complement each other in developing critical connectivity infrastructure to turn Nepal not just into a transport corridor but also an urbanizing economic conduit. That boundless potential of Nepal is being eroded by the ruling party’s disoriented foreign policy.

India was never interested in the trilateral idea that could possibly end its hegemony in Nepal. Against this backdrop, rather than trying to keep convincing India to get more interested in the idea, Nepal constantly pushed the southern neighbor away.

Egged on by our own government, China is now interested in all Nepali sectors, from hydropower to military. The military cooperation has not amounted to much except adding India’s suspicion of the trilateral idea—to Nepal’s great loss.  

Nepal cannot prosper without a healthy and balanced relationship with both its neighbors. However, India remains a destination of choice for those unfortunate Nepalis who can’t dream of going to Middle East by paying huge sums to state-sponsored ‘man-power’ companies.

India’s public health institutions such as the All India Institutes of Medical Sciences in New Delhi and the Christian Medical College in Vellore still lure Nepalis who cannot get good treatment in their own country whose health sector has been captured by the mafia. Kathmandu’s failure to take New Delhi into confidence could cost those poor Nepali people who rely on India to meet their vital needs like healthcare.

Nepal’s relationship with China is no cushion for poor Nepali people. China only serves the interests of its elite. Moreover, Beijing looks at Nepal from the Tibetan lens. A security-centric approach does Nepal no good at a time it needs unconditional foreign direct investment.

China’s Communist Party (CPC) is enthusiastic about distributing Mao’s red books in Nepal but struggles to define what the Belt and Road Initiative (BRI) means for Nepal. Chinese diplomats in Kathmandu openly threaten our constitutionally guaranteed press freedom. Yet they don’t seem to understand the urgent need of the Nepali people to become economically empowered so that they won’t have to wash dishes in the dhabas dotting Indian highways.

Around three million Nepalis work in India to secure two daily meals for their families back home. Nepali unskilled laborers have an open access to India’s vast markets. As India is becoming more competitive and professional, Nepal can benefit more and more from this relationship. Suppose India is tomorrow a global economic superpower and Nepal still has an open border with it—what great opportunities such a scenario bring! But for that Kathmandu has to tame its anti-India ultra-nationalism.

If the future is Asian, as Parag Khanna claims, it is as much of India as it is of China. Nepal can benefit a lot from a balanced foreign policy by pursuing trilateral cooperation rather than stand-alone relationship with neighbors. Even if this is not possible, the goal should be to carefully balance India and China, and surely not to completely throw our lot with the Middle Kingdom.

Please do not destabilize the country with a flawed foreign policy approach at the cost of the poor. India’s treatment of Nepal as just another country may have no implications for Kathmandu’s power elites but will result in devastating consequences for poor Nepalis who can’t ever think of working in Beijing’s restaurants, even as dishwashers.

Have saleable skills? Want to be a self-employed? Or are you looking for a particular household service? You may then want to create an account with SeWahh. This one-of-its-kind Nepali platform brings service providers and seekers together for a variety of everyday household needs. This is unlike the e-commerce platforms in Nepal that have mostly focused on selling products.

SeWahh calls itself a ‘full-service digital marketplace for personalized local services’ to households and businesses across Nepal. Here you will find services ranging from home cleaning and on-site fridge repair to home salon to personal fitness training.

The portal, started a year ago by Subidha Sewa Group, has been providing recruiting, outsourcing, facility management, and personalized local services, for the past 16 years.

 What’s on offer?

Some essential indoor services include: plumbing, computer repair and maintenance, electrician, microwave repair, washing machine repair, and A/C repair. There are unique offerings like astrology and bridal make-up as well. Under home cleaning, there is deep kitchen cleaning, Nepali carpet cleaning, and whole apartment cleaning.

“SeWahh professionals use only tested and verified chemicals,” claims Ajay Raj Joshi, CEO. 

“We specialize in repairing and maintenance services. Perhaps due to our 30-day post-service guarantee and insurance, our client base is increasing,” Joshi says. “We also aim to create jobs.”

The guarantee means, if a client feels the service is below par, they will get a free 30-day service. And if items are damaged due to mishandling, there is insurance cover of up to Rs 20,000. 

With the start of the lockdown, SeWahh started different kinds of online classes and trainings as well, including academic tuitions for school and college students, art and painting classes, music lessons, and yoga and gym sessions.

Bidhata Upreti, a dental surgeon by profession, is happy with the music class she has been taking through SeWahh. “The classes are interactive and helpful,” she says on the SeWahh Facebook page. 

These classes offer one-on-one sessions, barring home tuitions where a group may have up to four students. Students from class 1-12 and A-levels can enroll for these home tuition classes. “It is for the students who need extra training besides their regular school or college classes,” adds Joshi.

SeWahh conducts interactive parent-teacher meets. These half-hour once-a-month meets help both parents and teachers know about the student’s progress and needs, claims Joshi. Moreover, there are separate evaluations for each student.

How it works

SeWahh runs a website and a Facebook page. Clients can visit the website, select the service, register, login, and purchase by choosing time and date. After confirming with the clients, SeWahh employees contact registered service professionals nearby. After completion of the job, they contact the clients again to ensure satisfactory job completion. Those with no Internet access may call and place an order. 

For online classes and training, students and trainees choose the time and courses, as well as from the available teachers or trainers. Multiple platforms are used for online classes, as per the convenience of students and teachers, with Zoom and Google Meet the most popular ones. 

 Interested professionals create an account with SeWahh and go through a selection process before being hired. “We only hire professionals with a minimum 2-3 year experience,” Joshi says. The company has a group of consultants to test the qualifications of job aspirants. This helps maintain service quality and to cut down on flaws, Joshi adds.  The professionals also get skill development training from time to time. 

Clients can pay through eSewa or bank transfer. Or they may pay the service provider directly with cash upon the completion of the task. SeWahh charges a certain amount from the professionals as per a prior agreement for using the platform.  

After encouraging response from its clients, SeWahh is planning to add home massage and saloon for males.

The lockdown has prompted many to turn to online services. But e-commerce is still nascent in Nepal, and the road ahead unclear. Many areas of Nepal are still devoid of reliable Internet. Nor is the government supporting e-commerce. “It has no plan to help us,” Joshi rues.