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Today (27 Poush of Nepali calendar) is the 302nd birth anniversary of King Prithvi Narayan Shah, widely regarded as the creator of modern Nepal. For a long time, the country celebrated this date as a national unity day until it was discontinued following the abolition of monarchy in 2006.

There are divergent views among political parties regarding their view of Shah. During the insurgency period, it was one of the key contentious issues within the Maoists that was waging an armed rebellion against the state ruled by monarchy. Even though the Maoist fighters demolished the statues of kings, including that of the unifier, the party supremo, Pushpa Kamal Dahal, acknowledged the contributions made by Shah. His second-in-command at the time, Baburam Bhattarai, however, was against all things monarchy. 

But of late, there is a growing consensus among all political parties—not just the Maoists—that Shah deserves the credit and acknowledgement for bringing together dozens of tiny warring states under a single banner. On 25 September 1768, Shah officially announced the creation of the Kingdom of Nepal with Kathmandu as the national capital.

Irrespective of the government’s position, royalist parties to this day celebrate Poush 27 as the National Unity Day. Last year following pressures from the Rastriya Prajatantra Party, the government of Pushpa Kamal Dahal decided to mark the day as the National Unity Day. Prime Minister Dahal and the leader of CPN (Maoist Center) naturally drew flak from the supporters of the republic and his own party members for the decision.

This year the government has not announced any special day to commemorate “the Great King”. But it has not deterred the royalist forces from doing so. In fact, they have become more louder in their demand for the restoration of monarchy.   

The Rastriya Prajatantra Party is set to host a tea reception to mark the birth anniversary of Shah today. The party has invited political leaders and individuals from all walks of life to the event.

While there may be divergent views among political parties and citizens about King Prithvi Narayan Shah, his outlook on Nepal’s external relations cannot be disregarded. How prescient was he when he said: “Nepal is a yam between two boulders.” This adage is still relevant today when talking about Nepal’s foreign policy, particularly concerning India and China.  

In his journal article published by the Nepal Army in 2022, Manish Jung Pulami says: “The origin of ‘yam’ as a discourse emerged amidst the turmoil in the Indian sub-continent and Nepal under the Himalayan belt. The problematic situation in which Nepal developed as a nation-state in the Indian sub-continent under the Himalayas has also led Nepal to be portrayed as a ‘yam’.”

Pulami goes on: “‘Yam’ as a theory comprises the elements of cautiousness, gradualism, peaceful co-existence, and friendliness in foreign policy. The theory incorporates the strategies for the major power politics in the region and outside the region.” 

“It also provides Nepal with the diplomatic and foreign policy strategy for the survival and sustenance in the geopolitical sphere with competition, antagonism, and cooperation. This theory also provides in light of the Dibya Upadesh about the military, strategic, economic and internal policies of Nepal.”

What’s in Dibya Upadesh?

In his deathbed, King Prithvi Narayan Shah is said to have imparted his counsel on various topics ranging from nation to nationality and governance, which is better known today as Dibya Upadesh (Divine Teachings). 

The provenance of ‘yam between two boulders’ can be traced back to Dibya Upadesh.     

Under the title of, ‘External Relations,’ it states: “Whereas, this state (Nepal) is like a yam (gourd) between two stones. Keep a strong friendship with the Emperor of China; one has to maintain a friendship with the Emperor of the sea (English Emperor) in the south. But he is very clever. He is occupying Hindustan.

He is eyeing the plane area (of Nepal also). When Hindustani (Indian) people will wake-up (not tolerate them) he may find it difficult to stay there. He might have been searching for a safe fort and there is every possibility that he may come here at any day. Therefore, we have to find out our Sandhisarpan (weak points) and we also have to change them into strong forts. We have to create obstacles on the way they try to enter. Mind it they may arrive here anytime.

Do not go there (down) to fight with them. Let them come here (hilly region) and fight with them. If we could do so, they could easily be beheaded at the crossings of the Chure Hills. If we could do so we will be able to collect arms and ammunition which would suffice for our Four to Five Generations. And we will be able to extend our border up to the Ganga River.

If they could not fight with us they will try to come here utilizing Lolo Poto (tricks) or any other types of conspiracies. This is a Thakhat (suitable place/natural fort) of Nepal. If they (Englishers) get this fort they will win over all the Four Emperors of the world. This state itself is a fort created by the God himself. It does not need any human touch on it. Prepare seven strong forts in these places namely Shivapuri-1, Phulchowki-1, Chandragiri-1, Mahadevpokhari -1, Palung-1, Dapcha -1 and Kahule-1.”Still relevant today

In the words of Prof. Surya P. Subedi, Prithvi Narayan Shah’s description of Nepal as “a yam between two boulders” refers to the Celestial Empire of China to the North and the Emperor to Seas to the South, i.e., British Raj on the Indian subcontinent. It sums up Nepal’s position at the time. 

“It is the first major statement on Nepal’s foreign policy which has not only entered the psyche of the people of Nepal but has also guided foreign policy makers,” contends Subedi.

Foreign policy experts agree. With the resurgence of India and China as  global powers, they say King Prithi Narayan Shah’s vision still provides a broader guideline in the conduct of Nepal’s foreign policy.  

“Today, the essence of King Prithvi Narayan Shah’s yam theory can be very reliable for Nepal to deal with the geopolitical vulnerabilities encircling the country,” says Pulami. 

“Similar to the times of King Prithvi Narayan Shah, contemporarily, Nepal has been a ‘yam’ between the two boulders—India and China. The rise of China and India in the neighborhood and the geopolitical and geoeconomic ambitions of both countries makes the ‘yam theory” more relevant than ever.  

The Election Commission (EC) is holding National Assembly polls on January 25 to fill 19 seats that are becoming vacant on March 4. The EC has published the final list of candidates contesting the election. However, the major parties, mainly the Nepali Congress and CPN (Maoist Center), have faced a backlash from their cadres and people alike over the selection of candidates. 

The upper house serves as an eclectic council of experts and scholars that advises the House of Representatives. It plays an important role in making the lower house and the government accountable. However, the selection of candidates by major parties tells a different story. Leaders, who were rejected by voters in the House of Representatives (HoR) elections multiple times, have been granted tickets. Such practice undermines the spirit of the upper house as the dominance of same old defeated faces in parliament discourages youth leaders within major parties. There is deep dissatisfaction over the selection of candidates within the NC. Moreover, parties have violated the principle of inclusion in candidate selection. The Nepali Congress, for example, doesn’t have a single candidate representing the Madhes region.

Not only the Nepali Congress, the Maoist Center and CPN-UML have, in the past, appointed leaders who lost House of Representatives elections to the upper house. Since its formation in 2018, only a few experts have been sent to the upper house. This has tarnished the status and glory of the upper house. Contrary to its intended role as the conscience keeper of parliament, the National Assembly has failed to function independently due to excessive influence of government and political parties.

The top leaders of major parties, however, appear unaffected by the backlash over candidate selection. The major parties need to to take this matter seriously, as the diminishing trust of the people toward parliamentary bodies poses a threat to democracy as a whole. At a time when some people are criticizing the 2015 Constitution and democracy, unpopular decisions by major parties will further erode public trust in the current system. Therefore, parties must address this issue seriously and work toward restoring the reputation of parliament.

Economic growth in South Asia is estimated to have slowed slightly to 5.7 percent in 2023, yet it remains the fastest among emerging market and developing economy regions, according to a new report published by World Bank. This is largely attributed to a robust expansion in India, which accounted for more than three-fourths of the regional output in 2023. Excluding India, however, activity was more subdued.

In India, despite some slowing, a strong performance in 2023 was driven by robust public investment growth and vibrant services activity. Merchandise exports slowed due to weak external demand, but domestic demand for consumer services and exports of business services sustained India’s economic growth, according to the report.

In Bangladesh, growth is estimated to have slowed in the fiscal year 2022/23 (July 2022 to June 2023), as activity was hampered by import restrictions and rising material and energy costs, as well as mounting external and financial pressures. 

Output in Pakistan is estimated to have contracted during the FY 2022/23. Inflation remained elevated, partly reflecting large currency depreciation in early 2023. However, towards the end of 2023, Pakistan's currency exhibited signs of stabilization. 

Output in Sri Lanka is also estimated to have declined in 2023, while there has been progress in sovereign debt restructuring. In Afghanistan, despite declining food prices in 2023, poverty rates remained high, exacerbated by strong earthquakes in October 2023.

Growth in South Asia is expected to edge slightly lower to a still-robust 5.6 percent pace in 2024, before firming to 5.9 percent next year. Domestic demand, including public consumption and investment, will remain major drivers of economic growth. A pickup in external demand, albeit still subdued, is also expected to contribute to growth, the report says.  

In India, growth is expected to edge up to 6.4 percent in the FY2024/25 (April 2024 to March 2025) after softening to 6.3 percent in the FY2023/24. Investment is envisaged to decelerate marginally but remain robust, supported by higher public investment and improved corporate balance sheets.

In Bangladesh, growth is forecast to slow to 5.6 percent in the FY2023/24. Inflation is likely to remain elevated, weighing on private consumption. Import restrictions are expected to continue and impede private investment.

In contrast, growth is projected to pick up in Nepal, with monetary policy easing and the delayed effects of lifting import restrictions, the report says.

The report further says: “The outlook in Pakistan remains subdued for FY2023/24. Monetary policy is expected to remain tight to contain inflation, while fiscal policy is also set to be contractionary. The outlook in Sri Lanka remains uncertain, amid debt restructuring negotiations, particularly with private creditors.” 

Investment related to the tourism sector will support growth in the Maldives, while the commissioning of a new hydro plant in Bhutan is expected to contribute to a pickup in growth in the next fiscal year.

The World Bank has also explored some risks as well. The report says: “Risks to the forecast remain tilted to the downside, with the most pressing concerns revolving around higher energy and food prices caused by an escalation of the conflict in the Middle East and adverse spillovers stemming from larger-than-expected increases in policy rates in advanced economies.” 

In addition, elevated external and fiscal financing needs, the growing frequency and severity of extreme weather events, and sharper-than-expected growth slowdown in trading partners also pose risks to the region. Heightened uncertainty around elections in 2024 in some countries is also a downside risk in the region. However, the implementation of growth-friendly policies after elections could improve growth prospects.

There was a time when agriculture was the booming sector on which the livelihood of rural people depended. Returns were promising and increasing back then. 

In recent years, however, returns from this sector have been diminishing alarmingly despite encroachment upon forests,  pastures and marginal parcels for cultivation. Unable to make a living by relying solely on the farms, rural people have begun looking for alternatives. 

With youths leaving the villages in droves for abroad, farmlands have fallen fallow, mainly in hilly areas. Instead of agriculture, remittance is fast becoming the source of  livelihood for rural people.

Food imports have gone up in recent years, thanks to an increase in uncultivated land and increased flow of remittance resulting from a growing exodus of village youths. 

This article seeks to examine the factors turning agriculture into an unattractive sector and triggering youth exodus, and prescribes ways to revive the sector. 

The farmer needs a number of things to maximize returns from agriculture in this day and age. A large parcel of land, access to bank credit, irrigation facilities, a reliable supply of fertilizers as well as electricity and an easy access to the market are some of the prerequisites. 

But these things are hard to get in our country. Farmlands are shrinking, thanks to ownership transfer from one heir to another. Even these parcels are located in remote parts where it is quite difficult to apply modern methods of cultivation for improving both production and productivity.

With the aim of helping small farmers improve farm production and productivity, the government as well as banks have launched various microfinance schemes/programs. 

But even this intervention has failed to make meaningful changes in the farmers’ lives. First and foremost, these programs/schemes have failed to bring back the farmer into farming. What’s more, most of the beneficiaries have not been able to pay interest, leave alone the principal. Contrary to Nepal’s experience, Bangladesh has been implementing a similar program/scheme with great success. 

The way out

The need of the hour is to turn farmlands lying fallow into cultivable land and make Nepal a food-sufficient country by thinking albeit differently. 

The government in particular needs to take a number of steps, to begin with. 

First of all, it needs to go for community farming. 

How to bring parcels of land lying fallow under community farming? What should be the basis for cost and benefit sharing? 

Leasing could be one of the options. A group of persons, including entrepreneurs, can lease parcels belonging to a large number of land-holders by paying them a certain amount annually. Such groups can maximize both production and productivity in those swathes by employing modern methods of farming. This will enable food-insecure communities living close by to buy locally-grown foodstuffs at reasonable rates apart from giving sustainable agricultural practices a great boost. Large farms also mean jobs for members of local communities. All in all, such farms can bring great dividends to rural Nepal. 

However, the government has to have political will to opt for community farming. First and foremost, it needs a huge budget to lease parcels of land before leasing it out to large-scale growers. Also, the government needs to invest in the development of necessary infrastructure and provide legal, technical and financial support to the growers. 

At a time when farmlands are shrinking, the government needs to move ahead with a sense of urgency if it is serious about averting a grave food crisis.