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Nepal has a wealth of skilled individuals in its banking sector, but it’s not without challenges. One prominent issue is the centralization of Nepali banks in urban areas, overlooking the essential development of banking services in rural settings. This disparity in focus has contributed to a substantial imbalance in financial accessibility across the country. Moreover, rather than investing in production-driven enterprises, Nepali banks tend to divert their resources into endeavors that promise quick profits, such as trade, real estate, automobiles, tourism, and various service sectors. Unfortunately, there’s been a lack of effective regulation by the government in controlling these investment tendencies. Complicating matters further, certain investors are involved in both banking and trading activities, leading to conflicts of interest within the financial landscape. These problems have arisen due to the absence of clear directives from political leadership, ultimately impacting both the banking sector and the country’s overall economy negatively.

Despite these challenges, Nepal’s banking regulatory body, Nepal Rastra Bank (NRB), has played a crucial role in enhancing the Nepali banking system. The guidance and oversight provided by global financial institutions like the World Bank and the International Monetary Fund (IMF) have contributed to NRB’s improvements, ensuring better practices within the sector.

The insurance industry in Nepal, though relatively young, was initially established to offer support to banks. Even today, it maintains a closely intertwined relationship with banking institutions. The performance of insurance companies heavily relies on the health of the banking sector; any decline in banking activities typically leads to a downturn in the insurance business. Despite the expansion of the insurance industry, with over 40 life and general insurance companies operating in Nepal, their performance is not meeting optimistic expectations. Economic indicators paint a grim picture, suggesting that Nepal is already in the throes of a crisis. 

Consequently, there’s a growing sentiment advocating for the downsizing of banks and insurance companies. It’s believed that the government needs to formulate comprehensive strategies to combat this economic downturn, ensuring the sustenance of all citizens. Criticism has been directed at Nepal’s bureaucratic system, claiming that laws and policies are often crafted to serve the interests of bureaucrats rather than the public. Many laws in Nepal are borrowed from foreign jurisdictions and lack a local context, such as the extensive and ambiguous nature of the Income Tax Act, which inhibits revenue generation.

For a more robust and inclusive revenue collection framework that involves every Nepali citizen, there’s a need for tax laws and provisions that encourage compliance. It’s essential for legislation to reflect public demands and for substantial restructuring within sectors like banking, insurance, security markets and corporations. Moreover, the leadership within these organizations needs to comprise experts in the respective fields to navigate the complexities effectively.

The labor landscape in Nepal is a cause for concern, characterized by numerous daily wage workers grappling with inadequate compensation. The prevailing situation often leaves workers struggling to make the ends meet. To address this, the government should conduct studies to determine the minimum income required for a decent standard of living and ensure strict adherence to a minimum wage cap. Regular updates to this cap are necessary to counter the effects of inflation. Additionally, maintaining an updated database of employed and unemployed individuals is imperative, allowing the government to create employment opportunities and provide financial support to non-working age groups.

Legal disputes in banking, such as conflicts between banks and borrowers, revenue-related issues, and trade disputes, have seen a notable surge, primarily due to the prevailing economic downturn. Entrepreneurs are facing challenges in repaying loans due to the stagnancy in their businesses. Financial literacy, however, has witnessed growth in Nepal, partially owing to the 2015 Constitution mandating banks and financial institutions to establish branches in local governments. This initiative aimed to spread financial awareness and education about savings, deposits, and withdrawals among the populace. Nevertheless, banks still need to play a more significant role in fostering entrepreneurship and supporting various business ventures to generate employment opportunities across the country.

Addressing these issues is feasible if political leadership takes proactive measures and shows accountability. Despite the ongoing crisis, there’s a noticeable lack of urgency from the government and concerned entities to resolve these pressing matters. The solution lies in the government rectifying its approaches, fostering a conducive environment for entrepreneurship, seeking guidance from experts and learning from the successes of neighboring robust economies. Moreover, bureaucracy in Nepal needs reform; the prevalent sense of superiority among bureaucrats needs correction to enhance their work ethic and conduct.

The author is a member of the Supreme Court Bar and has been practicing corporate law for around three decades

The Nepali Congress has become a visionless and missionless political party. Ask the ordinary party cadres about the party’s future and they will tell you there isn’t one.

This past week I interacted with several NC cadres and the key takeaway from these exchanges was that they no longer feel confident regarding the party’s future.

Frustration and hopelessness consume the party cadres these days and they put the blame squarely on the top leadership. They say the leaders on top have failed to rouse the party out from the status quo. Many local-level cadres are deserting to other parties, because they no longer believe that the NC can lead the country. 

Yes, there are those who take comfort in the knowledge that the Congress is still the largest party and that its president, Sher Bahadur Deuba, is poised to become the next prime minister. But most of them are affiliated to the Deuba camp and consider the party leadership to be above and beyond reproach.

The harsh reality is that the NC is losing its supporters left, right and center. The problems that the party faces today run from the center to the grassroots. The fact that the Pushpa Kamal Dahal-led government, in which the Congress serves as a key coalition partner, has been unable to revive the faltering economy and improve governance has only deepened the discontent among party cadres. 

There are strong voices inside the NC that the party should pull out its support to the Dahal government and forge a coalition with the CPN-UML, the main opposition. The UML has hinted that it could support Deuba as a prime minister if the NC leaves the current coalition. But even if this scenario comes to pass, it will only guarantee Congress’s leadership of government for the next four years. It will neither resolve the party’s organizational dysfunction, nor heal the factional rift. 
 

While the second-rung leaders of the NC and UML are said to be discussing a possible alliance between the two parties, there hasn’t been any substantial talks between Deuba and KP Sharma Oli, the UML chairman. 

At the same time, there are alternative views inside the NC that continuing the current alliance with Dahal’s CPN (Maoist Center) will serve the party's interests in the long-run. Leaders who subscribe to this view believe that the party cannot retain its current position without electoral alliance with the Maoist in the next election. Their outlook goes against those who strongly believe that the Congress party should contest the next election as a single party. 

Leaders who think that the NC should solely fight the next election include the general secretary duo, Gagan Thapa and Bishwa Prakash Shara, and senior leader, Shekhar Koirala. 

A senior Congress leader who spoke with ApEx on condition of anonymity said: “Some of our friends are talking about contesting the next election as a single party, but the reality is completely different. Without an electoral alliance, the NC has no chance of winning.” 

If the NC were to enter the fray, there is a chance that the Maoist could ally with the UML—something that had occurred during the 2017 polls, which resulted in an unprecedented electoral drubbing for the NC.  

The Congress leader said that the 2023 by-election outcome in which the party lost in its historic stronghold is a warning sign for those leaders who are advocating for the party to contest the next election alone.  

Nevertheless, the proponents of the idea are trying to endorse the proposal from the party's Mahasamiti meeting. NC President Deuba, however, is dead set against endorsing such a proposal, as it could rattle the current coalition. Dahal could break the alliance with the NC, blowing Deuba’s chances of becoming prime minister. 

Following the 2022 general elections, in which the NC, Maoists and some fringe parties had contested as allies against the UML, the NC emerged as the largest national party. However, the Maoists did not do so well, polling in third after the UML with a big gap between them. And when Deuba refused to hand over the post of prime minister to Dahal as per their pre-election agreement, the latter had joined hands with the UML, leaving the NC desperate. 

The Maoist-UML coalition, however, did not last long as a result of power struggle between Dahal and Oli. The Congress eventually got back with the Maoists, offering Dahal the premiership for two years of the full five-year term and securing the post of president for the party. 

Deuba has no intention to irritate the Maoists and lose his chance of becoming the prime minister. Some leaders say Deuba’s blind ambition to occupy the executive’s chair while ignoring the pressing task of strengthening the party organization and support base is eating away at the NC’s reputation.  

Even a year after the general elections, the party's activities are almost zero. NC ministers in the Dahal-led government have not just failed to deliver, they have made a string of controversial decisions. Factional disputes have divided the party from the leadership to rank and file. On several national issues, the party has not made its official position known.

One of the serious blows to the party's reputation was the arrest of its senior leader and former home minister, Bal Krishna Khand, in a corruption case. There is an environment of fear within the party. Many party leaders do not dare criticize the Dahal-led government, because they fear they could be indicted in past corruption cases.

Top leaders' popularity graph, including that of youth leaders Thapa and Sharma, is at a historic low. For a long time, there have been calls from the NC cadres to the central leadership to reform the party, but there is a lack of unity among top leaders. The rivalry between Thapa and Koirala, two influential leaders after Deuba, is increasing, as both are eyeing for the post of party president.

“The Nepali Congress appears visionless, missionless and rudderless at the moment,” said Nainsingh Mahar, NC’s Central Working Committee member. 

Talks about holding a meeting of the party’s Mahasamiti, a high policy-making body, have not made any progress. Thapa and Sharma blame Deuba for repeatedly  postponing the crucial gathering. The Deuba faction, on the other hand, say that Thapa and Sharma, as general secretaries, have failed to make the necessary preparations for the meeting. 

“It is high time that the top leaders got their act together and came up with a clear vision for the party’s future,” said Mahar.  

It is a big task when ambition and rivalry run amok in the grand old party.

Nestled in the foothills of the Himalayas, Nepal has recently experienced a unique fusion of media magnetism and political skills, like a fast-moving Ferrari negotiating narrow mountain roads. Like a fast car navigating a maze of regulations, Nepali politics is propelled by a combination of media charisma and sharp intellect. The players in Nepal’s varied political landscape, where ideologies collide and alliances change like sand dunes in a desert storm, possess a sharp mind and a captivating charisma that makes them resemble a sleek Ferrari navigating the political curves of a Himalayan landscape.

The Ferrari brain

A ‘Ferrari brain’ is a term used to describe the quick, nimble and strategically astute minds that power Nepali politics. These people have a special aptitude for navigating the treacherous political landscape, changing courses quickly and pinpointing opportunities. There are several such leaders with impressive political acumen in Nepal’s political history.

The political climate in Nepal is changing quickly and a new generation of leaders is becoming known as the ‘Ferrari brains’ of the country. These leaders are renowned for their keen minds, astute judgment and progress-oriented motivation that matches a Ferrari. Coming from a variety of professions, including activism and education, they have introduced new viewpoints to the nation’s political scene.

Politicians in Nepal frequently have to be skilled at creating coalitions, negotiating with a wide variety of political groups and taking on urgent problems like changes to the Constitution and difficulties with the government. Their ability to control the political course of the country is comparable to operating a high-performance sports vehicle; it is agile and swift, able to handle sudden obstacles and sharp curves.

Media darlings

There is another aspect to Nepali politics: The ‘media darlings’. These are leaders with a magnetic charm that captures the people's imagination. They are also skilled at engaging the general public through the media. They are skilled at using public appearances, television and social media to further their reputation and influence.

Public opinion is greatly influenced by the media in this day and age of knowledge. Like media darlings, Nepali politicians use communication to reach out to the public. Like the appeal of a Ferrari, their capacity to express ideas and ambitions captures the public’s interest. Media darlings are powerful individuals in Nepal’s political arena because they connect with a wide range of people by their charm, wit and eloquence. Their influence is multiplied by their capacity to interact with the public via a variety of channels, which makes them invaluable resources in the political sphere.

The fusion

The way these two dynamics interact is what makes Nepali politics so fascinating. ‘Ferrari brains’ may be the driving force behind policy decisions, but ‘media darlings’ have the power to shape public perception. As political leaders compete for public attention and influence, this frequently leads to a tug-of-war between substance and style.

The combination of media celebrities and Ferrari intellectuals produces a powerful synergy that advances Nepali politics. Brilliant political strategists are given a platform by charismatic, media-savvy leaders. This combination creates policies and effectively conveys them to the public, winning over support and bringing about social change. The combination makes it possible for the political system to change to meet the ever-evolving requirements of the populace, guaranteeing that Nepal continues to advance toward inclusivity and development.

Challenges and prospects

Nepal’s distinct political environment presents both possibilities and difficulties. Coexisting intelligent people and media-savvy individuals can result in creative decision-making and efficient communication. But it can also lead to rivalry and conflict in the political sphere. The ability of Nepal to capitalize on the talents of both ‘media darlings’ and ‘Ferrari brains’ will determine its political destiny. In order to solve the urgent problems facing the country, infrastructure, social welfare, economic development, cooperation, compromise and efficient government are essential. 

The political climate in Nepal is not without its difficulties. It can be difficult to strike a balance between the demands of media presence and intellectual rigor. 

The nation has a wide range of socio-economic problems, from social inequality and infrastructural development to poverty and corruption. It takes more than just a bright image to solve these difficulties successfully; it also needs a thorough grasp of the issues at hand.

The political landscape of Nepal features an intriguing blend of ‘Ferrari brains’ and ‘media darlings’. While intelligence and strategic thinking are important, so is the capacity to engage the public and work with the media to reach a large audience. A balanced combination of the two can lead to successful government and development in Nepal. The way these two processes coexist will determine how Nepal’s political environment develops in the future. Nepali politics is an intriguing blend of media-savvy leaders, who recognize the value of public perception and smart minds that can navigate murky political seas. The way these elements interact determines the political course of the nation. The future of Nepal will be shaped by the role of ‘Ferrari brains’ and ‘media darlings’ in its political arena.

In an age where information shapes the course of nations, the perilous impact of misinformation cannot be overstated. This feature investigates the critical issue of misinformation in Nepal, with a particular focus on the potentially devastating consequences of inaccurate intelligence provided by the National Intelligence Department (NID). Advocating for urgent reforms, the article calls for the autonomy of the NID, merit-based recruitment processes and a culture of professionalism and ethics to fortify national security, economic stability, and public trust.

In the digital era, where information reigns supreme, the reliability of intelligence agencies is fundamental to informed decision-making by governments. This piece scrutinizes the threats posed by misinformation in Nepal, particularly when disseminated by the NID. The ramifications of inaccurate information stretch beyond borders, impacting economic stability, public trust, security agencies and the overall effectiveness of the government.

To modernize in the digital realm, it's essential for the NID to embrace technology and adapt to a changing landscape.

This involves leveraging digital tools and platforms for gathering and verifying information. Additionally, providing training to NID members and staff is crucial. They need to stay updated with the latest technological advancements and methodologies to effectively operate in today’s evolving landscape. Adapting to these changes ensures the NID functions optimally, meeting the demands of the times and fulfilling its role effectively.

Operating under the Prime Minister’s Office, the NID grapples with challenges in conducting impartial investigations and maintaining oversight. This lack of autonomy not only raises concerns about the integrity of the information provided but also weakens public trust. The article proposes a remedy: Granting full autonomy to the NID, liberating it from political influence and broadening its mandate to encompass oversight of various government entities.

Taking cues from neighboring countries, especially India, the article underscores the imperative of accurate data analysis and political independence within intelligence agencies. It sheds light on the repercussions of misinformation in India, suggesting that Nepal can glean valuable lessons to strengthen its own intelligence apparatus.

Investing in data analysis: Highlighting the significance of data analysis for informed decision-making to prevent wasted investments and economic instability. 

Ensuring NID’s independence: Advocating for a political appointment process based on accurate assessments to preserve the integrity of the national intelligence apparatus.

Harnessing the expertise of think tanks: Encouraging collaboration with think tanks to provide strategic insights and analysis grounded in accurate data. 

Promoting media literacy: Emphasizing the role of education in empowering the public to discern and critically evaluate information, thereby combating misinformation. 

Holding perpetrators accountable: Arguing for accountability measures to deter the spread of misinformation and convey a resolute message that such actions will not be tolerated.

The responsibility of safeguarding accurate information falls on the collective shoulders of Nepal. By granting autonomy to the NID, investing in data analysis, leveraging think tank expertise, promoting media literacy and holding perpetrators accountable, Nepal can construct an impregnable defense against misinformation. A thriving nation is built on the bedrock of reliable intelligence, and it is this foundation that Nepal must fortify to ensure its future prosperity. 

Infographics

Active military personnel

Source: World of Statistics