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The private sector serves as an essential engine of growth, acting as the largest contributor to economic development, a major employment generator, and a critical partner to the government. Recognizing its importance, the government of Nepal accelerated privatization following the restoration of democracy in 1990, privatizing numerous public enterprises. This shift aimed to enhance economic efficiency, foster innovation, and drive competitiveness.

Since then, Nepal’s private sector has played an increasingly prominent role in the national economy. However, the economic liberalization process often neglected the protection and rights of the poor in the name of fostering competition and a free market economy. As a result, a small group of individuals disproportionately benefited at the expense of the majority. Over time, corruption within the business sector has become increasingly visible, undermining the very principles of fair competition and inclusive economic growth.

Cartels and syndicates have become rampant, distorting market dynamics and consumer welfare. A key reason for these issues lies in the absence of robust mechanisms and institutional structures to uphold the ideals of liberalism and privatization. Without efficient and capable regulatory bodies, an open economy fails to deliver benefits to ordinary citizens or contribute meaningfully to national development. Corruption is widely perceived as one of the greatest threats to good governance, the rule of law, democracy, and economic prosperity. Consumers in Nepal remain highly vulnerable, often forced to accept monopolistic practices, cartels, and syndicates due to the inefficacy of regulatory bodies, which exacerbates their plight. Consequently, the private sector is increasingly viewed as a force undermining the potential benefits of a liberal economy rather than enhancing it.

Despite operating under the principle of competition, the private sector has frequently restricted fair and ethical business practices. The current business environment is particularly inhospitable for ethical enterprises, which face a stark choice: either align with exploitative practices or exit the market altogether. Yet, the private sector blames political instability, bureaucratic inefficiencies, and unfavorable government policies for creating an unfriendly business climate.

The informal and underground economies are growing unchecked, further fueling corruption and money laundering. These illicit activities are facilitated by weak internal control systems and poor corporate governance. Common forms of corporate fraud include loan misappropriation, often against inadequate or nonexistent collateral; fund embezzlement by managers, employees, and board members; and misuse of corporate funds. Banking frauds, such as the issuance of fake payment cheques, misuse of credit cards, and theft of PIN numbers, are pervasive.

The transportation sector offers a glaring example of these issues. Fully dominated by private enterprises, the sector continues to suffer from the proliferation of syndicates and cartels, which block new competitors from entering the market. Despite the significant economic potential of this sector, it remains plagued by inefficiency and poor service delivery, raising questions about why the private sector has failed to deliver improved outcomes.

Corporate fraud and insider trading are well-known crimes within Nepal’s business environment, particularly in the banking and financial sectors. Insider trading, preferential loan privileges, and other forms of corporate malfeasance are common, undermining trust in these institutions. The manipulation of financial statements to evade taxes is another widespread practice. Some companies even engage in the unauthorized use of trademarks, counterfeit goods, and the theft of intellectual property to gain a competitive edge. In construction, collusion among bidders leads to delayed and substandard projects, as participants prioritize profit over quality and accountability.

Causes of private sector corruption

A significant cause of private sector corruption is the declining level of integrity in business practices. Entrepreneurs increasingly prioritize short-term gains over long-term sustainability and success. This mindset often stems from individual greed, with employees, board members, and managers misusing company resources for personal benefit. In some cases, these individuals collude with competitors, leaking business plans and other sensitive information.

The informal sector also plays a complex role in perpetuating corruption. Unregulated and unseen, competition within this sector often leads to illegal activities. Meanwhile, business leaders actively lobby for favorable legislation, while politicians’ investments in private enterprises create conflicts of interest that further entrench corruption.

Theoretically, the private sector advocates for competition and a free market economy, but in practice, it frequently supports monopolistic practices, cartels, and syndicates. Such anti-competitive behaviors restrict new entrants, stifling innovation and ultimately harming the economy. Weak internal controls and inadequate monitoring mechanisms within businesses provide fertile ground for corruption, as do the inefficiencies and vulnerabilities of Nepal’s regulatory agencies. Many of these agencies lack the capacity or independence to act effectively, often succumbing to bribery and undue influence from business interests.

Consequences of private sector corruption

The repercussions of corruption in the private sector are far-reaching and severe. One of the most tragic outcomes is the loss of human life, as seen in the high rate of fatal road accidents caused by corruption in the transportation sector. Corruption also undermines shareholder confidence, driving businesses into insolvency and financial ruin.

Tax evasion is another major issue. Companies frequently manipulate financial statements, issue fake VAT bills, and engage in fraudulent accounting practices to avoid paying taxes. These actions deprive the government of vital revenue, hindering its ability to invest in public goods and services. Moreover, the sale of underweight, adulterated, or expired goods further erodes consumer trust, while driving up the cost of living and reducing overall economic efficiency.

Corruption distorts market mechanisms, undermining the values, norms, and standards that should govern business practices. It also deters foreign investment, exacerbating Nepal’s infrastructure challenges and limiting employment opportunities. Left unchecked, these issues can lead to social conflict, economic crises, and the ultimate failure of state institutions.

The manipulation of information by board members and top management further compounds these problems. In Nepal’s share market, unethical practices such as the leakage of sensitive information to colluding parties before institutional decisions have become all too common. If such practices persist, Nepal’s private sector will struggle to compete in the global marketplace.

Strategies for controlling corruption

To address these challenges, the private sector must prioritize accountability, transparency, and ethical practices. Implementing strong internal control systems and adhering to rigorous auditing standards can enhance corporate integrity. Empowering consumers and civil society to demand accountability can also play a crucial role in fostering a culture of compliance.

Promoting fairness and competition is essential. By dismantling cartels and syndicates, businesses can create an environment that encourages innovation and ethical practices. Legal reforms are equally important. Laws must be updated to address emerging challenges, and enforcement mechanisms must be strengthened to deter fraudulent activities. Regular monitoring and supervision, combined with simplified administrative procedures, can help reduce opportunities for corruption.

Transparency is another cornerstone of reform. Businesses that operate transparently earn the trust of consumers, employees, and the government, fostering a more stable and ethical business environment. Introducing anti-corruption norms, values, and standards into corporate culture can further strengthen this trust. Meaningful partnerships among civil society, businesses, government, and the international community are crucial for promoting transparency and combating corruption.

Technological innovation offers a powerful tool for reducing corruption. Online systems for administrative services, such as company registration, tax payments, and reporting, can streamline processes, reduce human error, and eliminate opportunities for collusion. Digital record-keeping ensures accuracy and accountability, while reducing overhead costs and improving service delivery.

Anti-corruption education is vital for building a more ethical business environment. Training programs on consumer rights, corporate responsibility, and the value of competition and innovation can help instill a culture of integrity. Educational institutions should integrate anti-corruption and corporate governance topics into their curricula, preparing future business leaders to uphold ethical standards. Aligning university curricula with industry demands can further support the development of a business-friendly environment.

Conclusion

Corruption represents one of the most significant threats to Nepal’s private sector, undermining its competitiveness, growth, and public trust. To address this issue, the private sector must acknowledge that bribery and unethical practices are obstacles, not enablers, of progress. By embracing corporate compliance, transparency, and ethical practices, businesses can rebuild trust and foster sustainable growth.

A collective effort is required to curb corruption and promote good governance. Businesses, the government, and civil society must work together to create a fair, transparent, and competitive environment that benefits all stakeholders. Only by upholding these principles can Nepal’s private sector fulfill its potential as a driver of economic development and social progress.

Glacial Lake Outburst Floods (GLOFs) in Nepal are becoming a significant hazard in the Himalayas, driven by climate change and an increasing number of glacial lakes. Nepal's GLOF history is marked by several catastrophic events that have caused widespread devastation. The earliest recorded GLOF occurred about 450 years ago in Seti Khola but its details are not available.  A recent article by Byers, Chand, and their team also reconstructed the GLOF history in the Kanchenjunga region, where they found the occurrence of GLOF since 1921. They found at least seven GLOF events in that region with the help of remote sensing and field observation, which were not recorded before. Besides, ICIMOD has compiled 24 events out of which 14 occurred in Nepal and 10 in Tibet (China), causing extensive damage in Nepal. A notable GLOF event occurred in 1985 when Dig Tsho burst, leading to a destructive flood that destroyed infrastructure, including a hydropower plant under construction. Another study by Shrestha and her team recorded 54 events in Nepal. These datasets also indicated that several events occurred and are occurring in remote mountains that were not noticed due to their impact being insignificant and remote in nature. The Thame GLOF that occurred in Aug 16 this year is another noticeable event that caused damage to Thame village and the downstream ecosystem despite the small size of the breached glacial lake.

The underlying causes of GLOFs are tied to the unique geographical and climatic conditions of Nepal. The Himalayas are home to thousands of glaciers, which have formed numerous glacial lakes, particularly in the high-altitude regions. These lakes are formed when glaciers retreat, leaving behind large volumes of water contained by unstable moraines. As global temperatures rise, the rate of glacial melting increases, leading to the expansion of these lakes. The moraines that contain them are often weak and prone to collapse, especially under the pressure of additional water, seismic activity or other triggering factors like avalanches or landslides.

GLOFs have severe impacts on both the natural environment and human settlements. The floods can destroy agricultural land and hydropower, disrupt transportation networks and lead to loss of life and property. In addition to physical destruction, GLOFs also contribute to long-term environmental changes, such as the alteration of river courses and the degradation of ecosystems. The socio-economic impacts are profound, particularly in rural and remote areas where communities rely heavily on agriculture and where infrastructure is limited.

Over the decades, Nepal has tried to monitor and mitigate the risks associated with GLOFs. The establishment of early warning systems, such as the one implemented at Tsho Rolpa back in the 1990s, one of Nepal's largest glacial lakes located in Dolakha district in the Tamakoshi river basin, is a critical step in disaster risk reduction. Initially, an experimental siphon system was installed in 1995 to release the water and lower the lake volume, but it stopped working after 15 months. In 1997, the then government installed additional siphones and an early warning system. An automatic early warning system was installed in 1998 with a GLOF sensing system and a GLOF warning system along the Rolwaling and Tamakoshi river valleys. Engineering interventions, such as the lowering of lake levels by three meters through controlled drainage, have also been employed to reduce the risk of outbursts through the GLOF risk reduction project, with funding from the World Bank, the Netherlands International Development Agency and the government of Nepal. However, a lack of continuous funding, research and proper coordination among agencies, along with the period of Maoist insurgency, hindered the progress of mitigation work. Again, in 2015, the Early Warning System was revitalized with the installation of hydrological, precipitation and automatic weather stations at different locations in the downstream region.

The community-based Flood and Glacial Lake Outburst Risk Reduction Project, also known as the Imja Glacier Lowering Project in the Dudhkoshi basin, was implemented between 2013 and 2017 to mitigate the risks of glacial lake outburst floods (GLOFs) and to reduce human and material losses in Solukhumbu district and catastrophic flooding events in the Tarai and Churia range. The project was implemented by the Department of Hydrology and Meteorology (DHM) in partnership with different stakeholders and funded by Global Environment Facility-Least Developed Countries Fund (GEF-LDCF), UNDP. Imja was considered one of the most potentially dangerous glacial lakes for GLOF, which is rapidly increasing in size and volume due to glacial melt and the action of lake water that continuously triggers the calving of the glacier. Key activities of the project included the establishment of early warning systems, community training for disaster preparedness and the construction of protective infrastructure. The project also emphasized community participation, ensuring that local knowledge and needs shaped the initiatives. Through these efforts, the project successfully improved local capacities to respond to flood risks, ultimately contributing to enhanced safety and security for affected populations. By excavating a channel through the moraine that holds back the lake, the project successfully lowered the water level by 3.6 m, thereby enhancing drainage capacity and reducing the risk of catastrophic flooding downstream. This intervention significantly improved safety for local communities, alleviating fears and allowing residents to pursue their livelihoods with greater security. Additionally, the project facilitated environmental monitoring of glacial dynamics, contributing to a better understanding of the ongoing changes in the region due to climate change. It also promoted awareness of GLOF risks and enhanced community capacity for disaster preparedness through training programs focused on emergency response. Furthermore, the project emphasized the importance of sustainable practices, reinforcing the need for ongoing research and actions to manage the impacts of climate change on Nepal’s glaciers. Overall, the Imja Glacier Lowering Project stands as a proactive model for disaster risk reduction, highlighting the critical integration of scientific research, community engagement, and sustainable environmental management in safeguarding vulnerable populations in the Himalayas.

Additionally, the government, in collaboration with different organizations, has undertaken research and mapping projects to identify high-risk lakes and develop preparedness strategies. The government has identified four additional glacial lakes—Thulagi in Gandaki basin and Lower Barun, Lumding and Hongu in the Koshi basin—to implement the structural intervention along with the early warning system and capacity-building. The government has proposed about $36.1m to the Green Climate Fund and the initiative is expected to start in 1-2 years.

Despite these efforts, challenges remain in effectively managing the risks associated with GLOFs. The remote and inaccessible nature of many glacial lakes makes monitoring difficult, and the unpredictable nature of GLOFs complicates forecasting efforts. Furthermore, the rapid pace of climate change poses a growing threat, as the continued retreat of glaciers is likely to create new glacial lakes and increase the volume of existing ones. As temperatures continue to rise, the frequency and intensity of GLOFs are expected to increase. Not only large-sized glacial lakes but small lakes may also have significant impacts. Thousands of such lakes in the high mountains have significant implications not only for Nepal but also for the downstream countries in the Himalayan region that share river basins with Nepal. Collaborative regional efforts are essential to address these transboundary risks. Updating current inventory, categorization of potentially dangerous glacial lakes, and regular monitoring mechanisms should be established under the government in collaboration with research institutions. 

If you are tired of seeing the same kind of content on Instagram day in and day out or frustrated by influencers who seem to have it all, it’s time to rethink who you are following and what kind of content you are consuming. Instagram can be a vortex of random content that does nothing to stimulate and inspire you but by choosing the right kind of content, you can use it to your advantage. Here are seven pages to follow that can motivate you to make lifestyle changes and become a smarter, happier version of yourself.

Sarita Walsh

This page is pleasing to the eye with its mostly black and white aesthetics. Coach and mentor Sarita Walsh offers nuggets of wisdom that you have forgotten or pushed to the back of your minds. It inspires you to become a better version of yourself. Embracing principles from science, Eastern philosophy, and nature, Walsh dishes out gentle reminders of how you can live a simple, stress-free life.

Design Boom

Proclaimed as the world’s first online magazine, established in 1999, Design Bloom is all about architecture, art, design, and technology. The posts are stunning, sparking creativity and visual delight. There are gorgeous photos of buildings, interiors, and products. The page also features the latest news, trends, and innovations in the design world. With over 4.1 million followers, this page is all you need to stay updated on the architecture trends and styles.

Made by Nelson

Artist and designer, Nelson Cash, shares his illustrations with his followers through his Instagram page Made by Nelson. And this is such a happy page. It’s filled with colorful illustrations coupled with cute messages to make your day. Cash often collaborates with other artists and brands, and his work has been featured in publications like The New York Times and Wired. We recommend you pick a random one each day and let the philosophy of the illustration be your guide.

Megha Theeng

Her bio on Instagram says she’s a scientist and immediately below it reads ‘not a scientist’. It’s hilarious and shows Megha Theeng’s witty side. This perhaps 20 something girl from Darjeeling who lives in Siliguri is refreshing and makes content that will having you laughing out loud. She recently hit 100,000 subscribers on Instagram. There are only 359 posts so far but if you haven’t discovered yet, you are in for a treat. Her accent makes her endearing and she keeps it very, very real.

Inquisitive Bookworm

There are hundreds, if not thousands, of pages on Instagram dedicated to books and reading. We, at ApEx, like quite a few including but not limited to paperbackanddaisies, nonauppal, Sonali’s Book Club, and Penguin India. But the Inquisitive Bookworm has our heart. Each post is beautifully designed and shot. The book recommendations are also great. We have discovered new authors and titles from this page. All in all, it’s a fantastic page to follow if you want to be inspired to read more.

Quoting Literature

This page provides quotes from books and authors. Following this page is a neat little hack for appearing well read and fueling your mind with different author’s wit and wisdom. The admin posts something every day so there will be no dearth of content. From Albert Camus to Haruki Murakami, you will find a lot of inspiration in Quoting Literature. Our favorite is a quote by Henry Miller. It goes: The aim of life is to live, and to live means to be aware, joyously, drunkenly, serenely, divinely aware.

Gree Yogabhyasi

Greesha Dhingra is a holistic yoga educator who teaches yoga and life skills through her Instagram page. She inspires you to do the right thing, take care of your body, and be in tune with your higher self. If you are spiritually inclined or want to get started on your spiritual journey, this is a great page to follow. You will get to learn about meditation, ayurveda, and eating well. She offers a holistic approach to wellbeing that you can learn and follow.

Having read two out of three of Bollywood Actor Twinkle Khanna’s books—‘Mrs Funnybones’ and ‘Pyjamas are Forgiving’ and not having liked them very much, I was hesitant to read ‘Welcome to Paradise’, a collection of short stories published in 2023. I hadn’t read the one which came before that which was ‘The Legend of Lakshmi Prasad’ as I was convinced it wouldn’t be a good read.

Truth be told, I picked up Welcome to Paradise because it was on discount. The book was available at half price at Bookverse in Civil Mall, Kathmandu. “Why not? It’s a book of short stories and I can read one or two and give it to someone else to read if I don’t like it,” I thought to myself. But the first story ‘The Man from the Garage’ about a family who can’t decide if they want to cremate or bury their matriarch was highly nuanced and insightful. The characters felt like people I would bump into on the streets or at the temple. I was surprised by the fact that Khanna’s writing also seems to have improved a lot.

So, I kept reading. The stories that followed, and there are four more, were all snippets of lives that felt very real and addressed complex issues in a light-hearted manner. All the stories have women protagonists and are about middle-class life in Mumbai, India. The stories prove that Khanna is deeply observant as she has picked up a lot of tiny details that would have otherwise gone unnoticed. The stories are about loneliness, grief, and heartbreak and validate many of your emotions.

‘Let’s Pretend’, the second story in the collection, had me rooting for Amita as she pretends to be her aunt while corresponding with a man over email. ‘Jelly Sweets’, the story that comes at the very end, made me teary-eyed. It’s about how a mother copes with the loss of her son. The titular story ‘Welcome to Paradise’ was one that felt most real. What happens in Garima’s life could happen in anyone’s life. The story made me realize that sometimes experiences lend perspectives that don’t come from hearing or seeing other people’s stories and lives.

But my favorite one is ‘Nearly Departed’ about a woman named Madhura Desai, an 86-year-old retired teacher who wants to be able to end her life on her terms. She writes to the chief justice to seek permission for euthanasia as she suffers from Parkinson’s and doesn’t want to be dependent on anyone later in life. Her appeal goes viral and she gets a lot of media attention and requests for interviews, etc. I laughed, I got all choked up, and I reread it when I was done. I even asked a few friends to read this one, if not the rest of the stories in the collection, and they all loved it. They thought it was a fresh take on aging and how we all wish to be in control of our lives.

In the end, I didn’t give the book to anyone. It’s sitting on my bookshelf with story collections I have enjoyed in the past like ‘Her Body and Other Parties’ by Carmen Maria Machado and ‘The Lives of Strangers’ by Chitra Divakaruni among others. I have a feeling I might want to revisit the stories sometime in the future. And I will definitely be reading the next book Khanna writes and this time it won’t even need to be on discount. 

https://www.goodreads.com/book/show/200237485-welcome-to-paradise  

Welcome to Paradise

Twinkle Khanna

Published: 2023

Publisher: Juggernaut Books

Pages: 213, Paperback