Lessons for Nepal
The death of India’s former Prime Minister Manmohan Singh nudges us to revisit his legacy in policymaking. As India’s technocrat Finance Minister in the PV Narasimha Rao government from 1991-1996, Singh is credited for liberalizing India’s economy at a time when it was nearing an economic crisis, caused by political actors governing the economy, and dismal foreign exchange reserves enough only to support imports for a few weeks. India was then suffering from low output and inefficient markets.
However, Singh’s aggressive liberalization policies raised domestic productivity, making way for decades of economic expansion. Today, Nepal is also dealing with major institutional inefficiencies, and although not to the same magnitude, an underperforming economy. India’s liberalization story helps understand what holds Nepal back from realizing its economic potential, and as Singh said in his historic 1991 budget speech, from awakening, prevailing and overcoming.
India’s growth, despite being fueled by its geographic advantages, was held back by excessive regulations and centralized economic policies. Before 1991, trade in India remained strictly controlled by political actors that governed the economy. The License Raj, a protectionist system initially designed to nurture young industries, slowed economic activities through its stringent licensing requirements. While elite-backed businesses were able to obtain licenses easily, smaller industries at the core of the economy found it impossible to do so. Low domestic production and widespread inefficiencies largely suppressed economic activities.
In 1991, India experienced a paradigm shift when the economic reforms brought by Singh reduced licensing requirements, eased trade, deregulated institutions. This increased productivity reformed the economy and political institutions, strengthened core industries and attracted FDI rapidly.
It is worth noting that while India opened up, Nepal also attempted to follow suit. In fact, Praveen Dixit, a member of the USAID’s economic liberalization project in Nepal, recounts in one of his works that Nepal had liberalized its currency before the Indian currency was fully liberalized. Due to unrestricted access to international trade, Nepal was on its way to align with the global economic order. By the end of the 90’s, public enterprises, banks and financial enterprises were privatized; tax reforms were introduced; industry registration was streamlined; and stock trading began. Judicial reforms enhanced the rule of law.
Today, as India is set to become the world’s third largest economy, Nepal lags behind. This raises an important question—although India and Nepal underwent significant liberalization at the same time, why has Nepal’s liberalization story diverged so significantly?
Nepal’s political instability caused by frequent changes in governments has disrupted long-term planning and policy continuity. Between 1990 and 2024, there have been 32 government changes, a transition from monarchy to a federal democratic republic and institutional frameworks have been overridden by inefficiencies. As Dixit notes, the surge of FDI that followed liberalization in the 1990s came to a halt after the 1994 midterm polls. This disruption highlights how political instability has a direct and negative impact on Nepal’s economic progress. A simple extrapolation gives us an idea of how much economic potential has been wasted in the last 34 years.
Nepal’s hydropower sector exemplifies these inefficiencies. While hydropower has the potential to transform Nepal into a key energy exporter, institutional inefficiencies prevent this. For example, the Arun III hydropower project, first conceived by the government in 1992, reached financial closure 28 years after its inception in 1992. Another case, a recent tripartite electricity export agreement between Nepal, India and Bangladesh allowed Nepal to earn around Rs 3.8m by exporting electricity for just a little less than 12 hours to Bangladesh on Nov 15. Nepal is projected to make around Rs. 1.2bn annually by selling electricity to Bangladesh for five months each year. Although a net exporter of electricity, the NEA’s margin from exports is only Rs 120m, 0.12 percent of Nepal’s electricity exports. Had this agreement been signed a decade ago, Nepal today would have earned enough to construct a power plant of the size of the Sunkoshi III hydropower project. Combined, these examples highlight the ineffectiveness of institutions working to transform Nepal into a regional hub for electricity trade in South Asia. Clearly, Nepal’s institutional frameworks prevent it from realizing its comparative geographic advantage.
Singh’s legacy highlights the transformative potential institutions have. As the economic center of gravity shifts eastward, Nepal can reap benefits from regional growth. Nepal’s geographic endowments offer immense opportunities for growth, but they alone cannot guarantee prosperity. Without healthy institutions, its comparative advantages will remain underutilized. Therefore, Nepal’s leaders must embrace bold reforms to address inefficiencies within institutions, as Singh did, and unlock the economy’s full potential. Without institutional reforms, Nepal may risk missing the window to achieve sustainable economic development.
Langtang locals call for fair share of tourism earnings
Langtang, Nepal’s third most popular tourist destination, attracts thousands of domestic and international trekkers annually. However, locals have not been able to get much benefit from tourism—a major source of revenue for Nepal—due to inadequate government investment in infrastructure.
Tourist hotspots like Langtang, Gosainkunda, and settlements on the Tamang Heritage Trail see a high influx of visitors. According to Langtang National Park, it mobilized Rs 41.05m from entry fees from 32,597 tourists in fiscal year 2023/24. Likewise, it collected Rs 3.42m as royalty from forest products and Rs 51,017 as fine. In 2022/23, a total of 30,159 tourists visited the national park, contributing Rs 42.47m to the state coffers, according to Ganesh Prasad Adhikari, the information officer at the Dhunche-based Langtang National Park Office.
Langtang National Park charges Rs 100 for Nepali visitors, Rs 1,500 for SAARC nationals, and Rs 3,000 for other foreign tourists. However, local tourism entrepreneurs argue that the revenue collected is not reinvested sufficiently into infrastructure development.
Subba Lama, proprietor of Hotel Red Panda in Chandanbari, said tourism destinations in the Langtang region lack proper amenities. “Despite its religious and tourism significance, the Gosainkunda trail lacks comprehensive development plans. Even a tourist information centre has not been established. Above Chandanbari, internet access is almost non-existent. How can we ensure convenience for tourists without proper communication facilities?” he questioned.
Entrepreneurs also criticize the government for neglecting emergency rescue services and tourist information centres which are essential for enhancing the visitor experience.
Revenue generated from tourists is deposited with the federal government and later shared with provincial and local governments. Although all three tiers of the government are collecting taxes, the collected revenue has not been channeled for the development of areas from where it is collected.
Davasidar Waiba, Ward Chair of Gosainkunda Rural Municipality-6, said that providing only basic facilities is not enough. “Additional amenities like well-maintained trails, tourist information centres, and other infrastructures are vital,” he added.
Local representatives and residents believe that federal and provincial governments should coordinate and allocate resources to address these gaps. They say a lack of synergy among three tiers of government has hindered progress in tourism and infrastructure development.
Bongjomane and Jyarsha Gothen community forests above Gatlang in Aamachhodingmo Rural Municipality-3 were devastated by a fire 15 years ago. Despite repeated assurances from various government ministers, no reforestation initiatives have been implemented. “Government representatives have visited the area, made speeches, but left without doing anything. No budget has been allocated for reforestation,” he added.
Minister for Forest and Environment of Bagmati Province Government, Krishna Prasad Silwal, recently visited the area and stressed the need for scientific studies before launching reforestation projects. Ashok Kumar Ghimire, chief of the District Coordination Committee, Rasuwa, told Minister Ghimire to formulate plans to rehabilitate the forest instead of just touring the area.
Ram Sharan Gajurel, who leads a federation of hotels and tourism enterprises, said the government should not merely collect revenue from tourists but also focus on developing tourism infrastructure. He highlighted the need to develop trekking routes, rest areas, water and sanitation facilities, electricity, information centers at various locations, and proper tourist amenities. “While the region has significant potential for religious and ecotourism across all five rural municipalities, there are challenges in development vision and leadership,” Gajurel said. “Local governments should collaborate with businesses and stakeholders to create comprehensive tourism promotion plans.”
Aamachhoding Rural Municipality offers numerous tourism opportunities. “Beyond well-known locations like Paldor Peak, Jageshwar Kunda, Dilpu Kunda, Parbati Kunda Gopa Kunda and Sanzen valley, there are other interesting destinations like Golsung, Gatlang, Chilime, Tatopani, Nagthali, and Thuman that showcase the depth of Tamang cultural heritage,” said Bikas Lama, a seasoned trekking guide.
Similarly, promising locations in Gosaikunda Rural Municipality-2 like Dudh Kunda and Pangsang are also awaiting tourists. Local youth social worker Kaminu Tamang said Dudh Kunda lacks proper infrastructure. “The area lacks adequate accommodation despite having breathtaking views accessible within two days,” he added.
Fikuri highlands in Uttargaya Rural Municipality-2, is a stunning high-altitude scenic spot. From here, visitors can enjoy panoramic views of Nuwakot, Rasuwa and Dhading districts. The Fikuri region, which sits at an elevation of approximately 3,800 meters, offers spectacular views of Rasuwa, Nuwakot, and Himalayan ranges including Langtang, Gosaikunda, Nargajun, Kakani, Ganesh, and Dorje Lakpa. Additional attractions include Uttargaya Dham and Bhange waterfall.
Similarly, Jure Dhunga-Naukunda trail in Naukunda Rural Municipality holds significant tourism potential, according to vice chairperson Chandra Bahadur Tamang. “The local government can generate substantial tourist revenue by promoting this trail,” he added.
The national park and its wildlife, including red pandas, snow leopards, and deer, attract tourists but create conflicts with local farmers. Wild animals frequently destroy crops, forcing some farmers to abandon agriculture. “Instead of spending on compensation, preventive measures against wildlife intrusion should be prioritized,” said Jhanknath Neupane, a social worker from Kalika Rural Municipality-2.
Langtang National Park generates over Rs 40m annually, but this revenue fails to translate into tangible development for the region. The existing revenue allocation policy proposes distributing revenue among different tiers of government: 50 percent to the federal government, and 25 percent each to the provincial government and local government. However, this allocation is not effectively being used for tourism sector development.
Amar Raj Mishra, a member of the National Natural Resources and Fiscal Commission, said royalty is split among five sectors—water resources, electricity, forests, conservation areas and tourism. “The commission can only recommend conditional grants, it is up to the government to take the final decision,” he added.
Locals say the Langtang National Park Buffer Zone Management Committee has not developed a systematic plan for proportional budget distribution. Moreover, there is no mandatory requirement to allocate funds specifically to the tourism sector.
Experts and stakeholders suggest better coordination between federal, provincial, and local governments to ensure fair allocation of resources and foster sustainable tourism development. Unless the government addresses these shortcomings, tourism potential of Langtang Region, like other areas of the country, risks remaining underutilized.
Call to reinvest tourism revenue in Lantang
Although royalty collection from tourism is high, there has not been much focus on tourism sector development in the national park and surrounding areas. Most of the spending made from this share of royalty that the area receives does not contribute to tourism development. Some resources are allocated to nature conservation.
The religious tourism area of Gosaikunda and cable car projects are under discussion of late. However, investment or economic resources for the project has not been secured. or investment secured. Likewise, although the district is home to different tourism products and services like Uttargaya Dham, Kalika Mai Temple, Langtang National Park, Gosaikunda, and Ganesh Himal range, no effort has been made to develop the package by including all these attractions.
Similarly, the region is home to globally significant wetland sites and endangered wildlife and plant species. These natural heritage and biological diversity must be preserved and handed over to future generations. Successful tourism development can create employment opportunities for youth within the country.
For this, the government should encourage the private sector to build quality hotel and lodge facilities, build infrastructure for clean and competitive tourism, establish a business revival fund targeting potential pandemic-related challenges, and strategically reinvest a substantial portion of tourism revenue back into sector development.
The impact of climate change is becoming evident not only in the tourism sector but also in agriculture and nature, said Nurpusangbo Ghale, Chairperson of Naukunda Rural Municipality.
He highlighted that, in collaboration with the National Trust for Nature Conservation and other stakeholders, with support from the Green Climate Fund, efforts are being made in the Gandaki Watershed Climate Resilience Project area. These efforts aim to enhance the climate resilience of vulnerable communities and ecosystems, reduce climate-induced disasters and risks, implement disaster response strategies, and promote nature-based solutions, climate resilience, and climate coding.
Chairperson Ghale also emphasized the need to mitigate climate change impacts, promote tourism by identifying new destinations, and increase investment in infrastructure development.
Meanwhile, Information Officer Ashesh Khadka from the Ministry of Tourism, Culture, and Cooperatives of Bagmati Province stated that the provincial government does not collect taxes independently and operates based on budgets and plans prepared by the Ministry of Finance.
He added that development projects carried out in coordination with local governments and other tiers of government could prevent duplication and increase community ownership. However, locals have complained that funds allocated by the provincial government are often not utilized effectively, as they are distributed based on political influence rather than addressing urgent needs.
This story has been produced with the support of the Internews Earth Journalism Network through the Media for Inclusive Green Growth project
‘Life Among the Savages’ book review: A brilliant depiction of domestic life
Shirley Jackson, who was born in San Francisco in 1916, was famous because of her short story ‘The Lottery’ which was published in The New Yorker in 1948. Readers were scandalized and sent her hate mail. But it didn’t stop her from writing and getting published. Her first novel, ‘The Road Through the Wall’ was published in the same year. ‘The Haunting of Hill House’ and ‘We Have Always Lived in the Castle’ brought her more fame and went on to become all time classics.
She was mostly known for her horror stories but she also published two memoirs of life in Vermont where she lived with her husband and four children. For a writer who died in her sleep when she was 48, Jackson left behind a wide body of work. Two collections of her essays and other writing were even published posthumously.
I had only read Jackson’s famous short story and the novel We Have Always Lived in the Castle. I was actually looking for The Haunting of Hill House when I came across
‘Life Among the Savages’. The blurb was intriguing, starting with: “Sometimes, in my capacity as a mother, I find myself sitting open-mouthed and terrified before my own children.” I bought the book without even opening the plastic cover to check the size of the font, which I usually do. There was no way I wasn’t reading this masterpiece. The font could be horrible and minuscule for all I cared.
It turned out to be a great read. The font size was perfect too, in the Penguin edition (published by Penguin Classics in 2019). I was captivated by Jackson’s life and her ability to navigate the complexities of marriage and motherhood with an ease that I have never come across. The language is also quite compelling and she doesn’t seem to sugarcoat things, preferring to keep it raw and real. She also doesn’t try to portray her husband, children and even herself in a positive light. She is simply stating the facts and how things are. It’s refreshing, at times funny, and quite relatable, even though the setting is of an entirely different time as compared to today.
The book starts off with Jackson’s family having to look for a new place to stay. Their lease is up and they are asked to move. Their finances aren’t that great and they have two small children to look after. After being shown expensive houses that are all up for sale, they finally settle on renting an old dilapidated mansion of sorts. The rent is cheap, at $50 a month, and the owner even makes a few renovations for them. The family moves and it means a lot of adjustments and modifications.
Life Among the Savages is basically a story of the domestic mundanities that set in when you have to manage a family, your finances, and various other daily activities. Jackson keeps her tone casual but there’s a looming sense of frustration. The book was apparently initially published as a series of stories in various women’s magazines and later put together in a single collection. But it doesn’t read like disjointed writings. There’s a smooth flow to it that makes you ponder about life and how some things never change.
I believe every woman must read this brilliant depiction of domestic life. It will perhaps help us understand how we can navigate our own lives better at a time when our professional lives are starting to overwhelm us, and slow living is the last thing on our minds. But men should also pick this one up because it tells you things women might not always spell out for you by giving you a glimpse of how society can set unrealistic expectations on women and how it can be burdensome.
Life Among the Savages
Shirley Jackson
Published: 1953
Publisher: Farrar, Straus and Young
Pages: 229, Paperback
All set for 2025
New Year means a fresh new start. It means you get a do-over, a change to right the wrongs and give your life the revival it needs for it to be more enriching and uplifting. We all make elaborate plans for the new year. We promise ourselves that this year we will live our best lives by doing all the things we have always wanted to do. Two weeks into the new year, we are struggling to keep up with the resolutions, have given up on quite a few, and, slowly but surely, falling back into our old ways.
Are we destined for another year of the same old cycle or can 2025 be different? We can’t do the same thing again and again and expect different results so get ready to deviate from your usual routine and style. We assure you, you will be able to stay on top of your resolutions this way.
Rule #1: Set realistic goals
Resolutions fail because they aren’t realistic. You can’t expect to lose five kilos in a month or wake up at 6:00 am and exercise for an hour every day if you haven’t been doing so for a long time. Sudden changes in your routine is only going to disrupt your lifestyle so make sure you are setting achievable goals. Instead of trying to lose five kilos in a month, aim for two kilos. If you are accustomed to waking up at eight, try getting up half an hour early for a few days and exercising for 20 minutes to start with.
Rule #2: Break down your resolutions
Oftentimes, our resolutions are too broad and not well defined. This makes them vague and open to interpretation and tweaks. It’s a good idea to break down your resolutions to actionable plans if you want to ensure you incorporate them into your lifestyle. Write down a step by step plan of your resolutions and approach them one at a time. For example, if your resolution is to read more, map out how exactly you are going to do that. Say you will read one newspaper article on day one, five pages of a book on day two and build up from there. The idea is to make bite-sized resolutions of your goals to ensure they get done.
Rule #3: Get a resolutions partner
Sharing resolutions with a friend or a family member is one way of making sure you both stick to them. For example, you want to learn a new language. If you have a friend who also has the same goal then you can take classes together and make sure you stick to it. You can hold each other accountable. If you want to go to the gym, a fitness buddy is sure to motivate you to wake up an hour early and exercise. If you want to eat healthy, then you can make a pact with your partner or parent to stop eating anything with added sugar in it for a month. Having a partner who shares the same resolution(s) as you will motivate you to be disciplined.
Rule #4: Be gentle and allow room for mistakes
The problem with resolutions is that we are too strict and make overly ambitious ones.
When you are making resolutions for the new year, allow room for mistakes. Don’t let one misstep make you give up on the goal altogether. Understand that you will falter and there will be hiccups. Just don’t let those stop you from continuing on your journey. If you skip a day at the gym, make sure you restart your fitness journey from the next day. Don’t let one mistake ruin your process. One of the main reasons why resolutions fail is because we allow no room for error. But being gentle with ourselves and giving ourselves multiple chances to do something is a better way to make a lifestyle change than being too rigid by leaving no room for mistakes.
Rule #5: Plan and start ahead
New Year resolutions start on January 1. And that is perhaps the worst thing we can do while trying to change our lives. We can’t expect to be a certain way and follow a particular schedule and then try to do a complete overhaul in less than 24 hours. It’s just not practical and possible. So, don’t wait until the last minute to make new year resolutions. Start a week or two early and take it slow. If you have waited till Dec 30 or 31 to make your resolutions, give yourself a week or two to ease into the new lifestyle. The key is to take things slow and ease into it rather than rushing into it and abandoning your resolutions mid way because they feel unachievable.


