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Abinash Shrestha has been involved in the fashion industry for the past 12 years. With a Master’s in Business Management, he initially envisioned joining his father’s import and export business. However, his passion for fashion and style proved too strong to ignore. As the proprietor of Ariri Boutique, Shrestha has made a significant mark in the beauty pageant industry, having served as the official stylist for Miss Universe Nepal from 2020 to 2023. Recently, Shrestha was honored with the prestigious Fashion Stylist Award by Dream Search Agency. Ken Subedi converses with Shrestha on various dimensions of fashion.

What inspired you to join the fashion industry?

My friend introduced me to Rihanna in my school days, and I was fascinated by two things: her voice and her fashion sense. It was then that I started decoding and understanding style, sensibility, and began linking people's personalities to how they dress up. The art of comprehending individuals, their fashion choices, and the unique voice reflected through their fashion fascinated me deeply. Hence, from the very early stage, I became involved in fashion shows, beauty pageants, and took on assignments as a stylist for actors, models, and even business personalities. My friend, Nagma Shrestha, Miss Earth 2012, and the first-ever Miss Universe Nepal, has also been a huge inspiration. She helped me navigate the fashion scene and understand the challenges and opportunities. Today, I own Ariri Boutique, which helps people get closer to their style, and we have been running for the past four years.

What do you think of the fashion scene in Nepal?

The fashion scene in Nepal is constantly evolving, and I find it exhilarating. I admire how today’s youngsters know what they want and have realized that fashion can be a means of rebellion against things they don’t believe in while also fostering alliances with causes that truly matter. Fashion serves as a unifier—it’s a language that connects people. However, I personally feel that our fashion is mostly borrowed, and we still need to find our unique voice, that edge that defines us. With our rich culture, textiles, and patterns, we have the potential to revolutionize the fashion industry. But for that, we need to make bold choices—not merely follow trends from elsewhere but market and revolutionize the fashion and style inherent to our culture.

Do you think you need to study fashion to be a fashion designer or stylist?

I studied business management, and here I am today, running a boutique and making a living out of fashion. While having a degree in fashion is beneficial, an understanding of fashion and style is essential. Observing how people react to fashion and style and finding the right balance between creativity and fashion are crucial. It’s also important to engage with diverse individuals, draw inspiration from them, and incorporate their stories into your work. For instance, every time I sketch, I consider the stories of my clients—their love stories, realities, challenges, and their go-getter attitude. These attributes and stories shape my designs.

Is the fashion industry profitable?

Yes, it is, and it will be if you find that unique entry point. For me, I dabble in both traditional and modern fashion. My boutique specializes in both traditional attire, and I don’t shy away from using creative textiles to design modern jackets and skirts. Additionally, I like to diversify and not limit myself to one theme or comfort fashion only. Thus, catering to both women’s and men’s wear. However, the initial days are always challenging. You may have great ideas, but you might not have a market. Hence, it’s essential to connect with people, understand the market, and ask yourself that one hard question, “if this idea doesn’t work, will you have the courage to wake up tomorrow and start anew?” I do that every single day, and for ideas that don’t work, I know tomorrow is a new day, and I will definitely try to make things happen.

Don McLain Gill is a geopolitical analyst, author, and lecturer at the Department of International Studies, De La Salle University in Manila, Philippines. Kamal Dev Bhattarai of ApEx talked with him about the changing geopolitical situation and regionalism. 

How do you see the history of regionalism in South Asia?

Following the Second World War, there has been a significant shift toward the formulation of trade and inter-state relations. As a result, states became eager for a new model that would not only promote and expand trade but would also contribute to peace by establishing international cooperative agreements and institutions to support them. Since the 1960s, there has been a noteworthy increase in regional cooperative projects all over the world. This pushed the developing world to explore the possibilities and opportunities of regional cooperation. However, it was important for states to recognize certain requirements in order to forge an effective regional group. One of these requirements was the need to look outward and limit self-centered interests that may hinder collective goals. However, this seems to be easier said than done, given the variation in every state’s history and priority, which may conflict with regional priorities.

Like elsewhere, the concept of regional cooperation gained attraction and acceptance in South Asia. South Asian Association for Regional Cooperation (SAARC) was established in 1985 to enhance and promote intra-regional trade and economic cooperation. Later, South Asian Preferential Trading Arrangement (SAPTA) was signed in 1993. This was then followed by the South Asian Free Trade Area (SAFTA) agreement, which came into effect in 2006. However, Despite the enthusiasm brought by the spread of regional cooperation, the results have not been entirely praiseworthy.

While talking about regionalism in this area, SAARC obviously comes at the forefront, but it is in a state of limbo.  Do you see any chance of SAARC’s revival?

 It is crucial to understand that each region consists of its own dynamics and characteristics. Both external and internal factors must be taken into consideration when evaluating the success and effectiveness of regional cooperation. South Asian states have similar geographical, cultural, and societal features that are supposed to create a conducive environment for effective cooperation. Nevertheless, despite such advantageous factors, South Asia is one of the least integrated regions in the world. This can be attributed to both economic and non-economic factors ranging from tariff and non-tariff barriers and lack of comparative advantage to physical connectivity, divergent threat perceptions, and asymmetric power relations. 

Moreover, the evident historic dilemma between India and Pakistan poses a critical challenge for SAARC’s revival. Most especially since Pakistan’s consistent support for terror activities throughout the region serves as a major impediment to attaining a conducive environment for regional growth and cooperation. Moreover, Pakistan’s desire to involve extra-regional powers like China to undermine India’s territorial integrity, security, and sovereignty presents a deep-rooted challenge for the regional organization to come out of.

Can BIMSTEC become an alternative to SAARC?

With the rise of the Indo-Pacific construct, South Asia has become a sub-region to a greater Indo-Pacific. This creates more opportunities for South Asian states to expand the scope and boundaries of cooperation beyond the immediate neighborhood and into the other subregions of the Indo-Pacific. Thus, the utility of interregional frameworks like BIMSTEC must be maximized by its members to explore more opportunities for economic and security cooperation amidst the deadlock faced in SAARC. 

BIMSTEC serves as an important sub-regional arrangement where both South and Southeast Asian states can diversify and strengthen alternative economic options at a time when the Indo-Pacific is facing critical shifts brought by the unfolding US-China power competition. This provides an opportunity for BIMSTEC to regain its significance, given the vital economic and security linkages between Bay of Bengal and the Western Pacific. For South Asian states, this presents an important avenue to offset the strategic losses faced from SAARC and reinvest in alternative inter-regional platforms such as BIMSTEC.

Can countries of this region consider creating another regional bloc?

I believe it is unlikely for South Asian states to devote resources again to establish another regional organization. This contradicts the emerging trend in the Indo-Pacific of forging loose and area-specific arrangements between states that share common interests, concerns, and goals. Such arrangements can be in the form of minilateral groupings. I believe there is more potential for like-minded South Asian states to cooperate on key issue areas of mutual interest and concern through such a framework rather than reinvesting in traditional forms of regional cooperation.

Why did South East Asia succeed in embracing a robust regional body like ASEAN, but South Asia failed to do so?

ASEAN and SAARC are two regional organizations that were formed during the Cold War Era amidst the emerging trend toward regionalism and regional economic cooperation. However, ASEAN's function as a regional bloc is far more successful than that of SAARC. While the former is often considered as the benchmark for regional cooperation in the developing world, the latter is known for being the least integrated region in the world. There are several reasons behind this vast operational gap. Unlike SAARC, ASEAN has invested in enhancing connectivity projects between its member countries. Moreover, ASEAN’s intra-regional trade, despite its limitations, remains quite praiseworthy at 25 percent compared to SAARC, which is barely at five percent. 

However, aside from economic evaluations, it is more important to highlight the geopolitical differences between both organizations. Unlike ASEAN, the power dynamics in SAARC is far more asymmetrical. Moreover, the intersectional historical, cultural, and political dynamics of SAARC members are also significantly different from ASEAN members. The nature of protracted intra-regional conflicts, ongoing land boundary tensions, and cross border terrorism in South Asia is also more complicated than that of Southeast Asia. Thus, these are some of the important factors that need to be acknowledged in better understanding why SAARC continues to trail behind when it comes to regional integration.

How do the major powers like the US and China see regionalism in South Asia?

The US-China power competition centers on either strengthening or revising the established order in the Indo-Pacific. For the past few years, China has been seeking to present an alternative order in the form of the Global Security Initiative, which aims to push its role in Asia at the expense of US leadership. This may lead Beijing to exploit loopholes in key regional organizations to turn it against the West. We have seen attempts from China to turn the BRICS and SCO as anti-West groupings, but it has been unsuccessful. 

Similarly, the US and China are also competing for influence within ASEAN. However, such a scenario is unlikely for SAARC, given the lack of influence the organization has on South Asian politics. Therefore, it is likely for the US and China to directly engage with regional states for the purpose of deepening their respective strategic footprints in the vital sub-region of the Indo-Pacific.

Rubik Joshi, Shreyas K Shrestha, and Keyush Shrestha co-founded Zapp Services Pvt Ltd, a delivery service, amid the Covid-19 pandemic in 2020. The company grew with leaps and bounds, and continues to do so. Zapp has recently expanded its portfolio to include Tootle, a pioneering ridesharing app in Nepal. Pratik Ghimire of ApEx talked with Joshi, executive chair of Tootle and managing director of Zapp, to know about Tootle, Zapp and more. Excerpts:

Tootle experienced its share of ups and downs since its inception and has recently undergone a rebranding. How is Tootle faring these days?

We were offered ownership of the Tootle brand, which is a pioneer, home-grown, and beloved brand. We were excited about this opportunity. Upon taking over Tootle, we revamped the app with new technology, features, and services. The relaunch of the app has met some of our expectations. Given its already established reputation, it was relatively easy for us, and both our riders and customers were thrilled to see their favorite ride-sharing app back in the market. Many take pride in Tootle as a homegrown app. Consequently, we witnessed a significant number of downloads, rider and user registrations, and orders from the first day of the relaunch. Presently, we boast over 30,000 registered riders, more than 80,000 user registrations, and fluctuating daily order volumes. However, our numbers continue to grow daily, showing promising signs for the future.

What strategies do you have in place to compete in the ride-sharing app market?

All ride-sharing apps typically offer a straightforward service: getting from one point to another. However, we’ve aimed to infuse our app with vibrancy. Within the Tootle experience, customers encounter a variety of engaging in-app services. For instance, our ‘Around You’ section features a curated selection of locally made Nepalese businesses partnered with us. This not only promotes local brands but also encourages users to discover new experiences. Additionally, Tootle offers both riders and customers the option to select their preferred gender, allowing them to specify whether they prefer a male, female, or both-gendered service. This feature aims to accommodate the comfort levels of both riders and customers.

We’re actively encouraging female riders to join our platform, and we’re proud to say that they’ve embraced it, with a ratio of approximately 100:5 compared to male riders. This reflects positively on the level of female participation in this market.

In the near future, we plan to integrate our delivery service, which was the foundation of our startup, directly into the Tootle app. This expansion will provide users and riders with a comprehensive, all-in-one service experience.

We’ve also partnered with organizations focused on empowering women, where they provide training for females to obtain driving licenses. Upon completion, we offer them employment and a platform to earn through our service. While we typically don’t provide training for riders, in the case of female riders, we make an exception. We offer training tailored to their needs and also provide self-defense training to ensure their safety and confidence on the road.

What has the business of Zapp been like? What is its market share?

In the delivery service sector, one of the major challenges is establishing trust with partner companies. I’m proud to say that we’ve successfully made Zapp one of the most trusted companies in the industry. Acting on behalf of vendors, we handle cash payments in cash-on-delivery cases, steadily building trust with each transaction. Remarkably, many of our partner companies have been with us since our inception, a testament to the trust we’ve cultivated with them over time. We prioritize prompt settlement of cash payments, ensuring vendors receive their dues within a day. I can confidently assert that we are the leading delivery service provider in the market, a position earned through our relentless dedication and hard work. Starting the company from scratch provided us with invaluable lessons that laid a solid foundation for our growth and success.

We prioritized cash handling, product safety, and customer service by tying insurance to the packages and educating riders on proper parcel handling. In the ride-sharing and on-demand delivery sector, profit margins are notoriously slim. Nevertheless, our emphasis remains on delivering exceptional service, ensuring customer satisfaction, and both retaining and expanding our customer base. We strive to strike a balance between maintaining quality and achieving quantity.

The surge in digital delivery and mobility services have provided employment opportunities for many Nepali youths, thereby slightly mitigating the trend of Nepalis seeking employment abroad. How can these youths be encouraged to remain in the Nepali market? Are they remunerated adequately to sustain a comfortable standard of living?

We’re committed to retaining our riders, especially the younger ones, recognizing that losing this demographic is not just a loss for the country, but for us personally, as we strive to contribute to our nation. Until April 14, we didn’t charge any commissions to Tootle riders. However, to ensure our sustainability, we’ve now implemented a minimal commission fee—12 percent for cabs and 15 percent for bikes. Additionally, we’ve partnered with NIU Electric Scooters to empower our riders. For those who can’t afford two-wheelers but wish to work with us, Tootle will provide Rs 50,000 to assist in purchasing an NIU electric scooter. This initiative is aimed at retaining our youth within the country and fostering their growth domestically. We’ve also introduced rental schemes, allowing riders to rent bikes and kickstart their Tootle journeys. Furthermore, we prioritize rider safety and security by providing insurance coverage.

What advice do you have for young entrepreneurs and youths looking to establish startups in Nepal?

I recommend that newcomers adopt a long-term perspective. Merely entering and exiting the market yields little benefit. Setting a clear direction and committing to it for the long haul is crucial. While many startups face challenges, maintaining a never-give-up attitude is essential, as businesses rarely turn a profit from day one. It takes time to see returns on your investment. If initial plans falter, adjustments can be made, but adherence to your long-term vision and objectives is key.

Coleman Nee is senior economist at the Economic Research and Statistics Division of the World Trade Organization (WTO), where he has worked since 2004. Kamal Dev Bhattarai of ApEx spoke with him about global trade, problems faced by LDCs, and how geopolitics is affecting global trade.

How do you see the prospects of global trade in 2024?

We expect a gradual rebound in global trade volume for goods throughout 2024 and 2025, following a decline in 2023 primarily due to the persistent impact of elevated energy costs and inflation in developed economies, notably in Europe. Specifically, we project a 2.6 percent increase in merchandise trade for 2024 and a further 3.3 percent growth in 2025, following a 1.2 percent dip in 2023. Nevertheless, the presence of various downside risks has contributed to the uncertainty inherent in all economic predictions, particularly those concerning trade. These risks encompass regional conflicts, geopolitical tensions, and uncertainty in economic policies.

It seems we are making progress towards global trade recovery, what are the reasons behind it?

Inflation diminished real household earnings and reduced net earnings of businesses in 2023, leading to a decline in the demand for manufactured goods, which play a significant role in global trade. Conversely, as inflationary pressures diminish and policy interest rates eventually decrease, this should have a contrasting effect this year and the following, progressively boosting consumption and increasing the demand for imports.

What are the downside risks?

Geopolitical tensions and policy uncertainty could limit the scope of any trade rebound. While export growth should improve in many economies as external demand for goods picks up, food and energy prices could again be subject to price spikes linked to geopolitical events. Choosing an appropriate pace of interest rate cuts will also be challenging for central banks in advanced economies, and any miscalculation could lead to financial volatility later in 2024. The resilience of global trade is also being tested by disruptions on two of the world’s main shipping routes: the Panama Canal and the Suez Canal. 

The Panama Canal handles six percent of global trade, with over 70 percent of traffic destined for or originating from the United States. It is currently operating at partial capacity due to freshwater shortages, with restrictions likely to remain in place for some time. Meanwhile, the Suez Canal handles about 12 percent of global trade, and roughly one-third of container shipping between Asia and Europe. The diversion of traffic away from the Red Sea and around the Cape of Good Hope has added around 10 days to Asia-Europe journeys while boosting fuel costs.

Overall, risks are tilted to the downside, although there is some upside potential if trade in the European Union recovers faster than expected.

How does geopolitics affect global trade?

The global economy has been hit by several economic shocks in recent years while geopolitical tensions have been rising. In response to these and other concerns, some governments have become more skeptical about the benefits of trade and have taken steps aimed at re-shoring production and shifting trade towards friendly nations. These actions have had some impact on trade patterns, but evidence of a sustained trend toward deglobalization remains scant. One early sign of changing trade patterns is bilateral trade between the United States and China. Despite a record high in 2022, total bilateral trade between the world’s two largest economies grew 30 percent more slowly since 2018 than their trade with the rest of the world. 

In services, there are early indications also as data from the United States appear for example to show evidence of recent ‘friendshoring’ in information and communication technology (ICT) services. US imports of ICT services by region from 2018 to 2023. During this period, US imports from North American trading partners (mostly Canada) increased from 15.7 percent of total ICT imports to 23 percent. At the same time, US imports from Asian trading partners (mostly India) fell from 45.1 percent to 32.6 percent. 

Regarding the regional aspects, what are the prospects of growth in Asia?

In 2023, weak demand reduced export volumes in Europe and prevented a stronger recovery in Asia, while the picture in other regions was mixed. If the WTO’s trade forecast for 2024 is realized, Asia will contribute more to merchandise trade growth than it did over the last two years. The region is expected to add around 1.3 percent points to the projected 2.9 percent growth in world exports this year, or around 45. On the imports side it should add 1.9 percentage points to the anticipated 2.3 percent growth in world imports, or around 81 percent. Asia’s exports will grow 3.4 percent in 2024 and 3.4 percent in 2025. Asia’s imports meanwhile will grow 5.6 percent in 2024 and 4.7 percent in 2025. 

What are the key problems faced by LDCs countries in the global trade?

The impact of the 2023 trade slump on least developed countries (LDCs) is a matter of concern since these countries have limited resources to deal with global economic shocks. The drop in merchandise exports of LDCs last year was in line with the decline at the world level, but the contraction on the import side was larger, limiting consumption possibilities for LDCs. Merchandise exports of LDCs fell from $269bn in 2022 to $256bn in 2023, corresponding to an annual percentage change of -4.6 percent. This was roughly equal to the decline at the world level, leaving the share of LDCs in world exports stable at 1.1 percent. Meanwhile, merchandise imports of LDCs fell from $355bn in 2022 to $316bn in 2023. The -11 percent decline was roughly twice as large as the decline in world imports. As a result, the share of LDCs in world imports fell from 1.4 percent in 2022 to 1.3 percent in 2023.

LDC oil exporters recorded large merchandise trade surpluses in both 2022 ($24bn) and 2023 ($14bn). Other groups of LDCs experienced trade deficits last year, ranging from $36bn for countries that mostly export agricultural products to $4bn for ones that primarily export non-fuel minerals. According to preliminary WTO estimates for 2023, the US dollar value of LDC exports of fuels and mining products fell 16.5 percent in 2023. Their exports of agricultural products were also down 8.7 percent while shipments of manufactured goods dropped 12.6 percent. Exports of other products (including non-monetary gold) increased by four percent. These developments in value were influenced by corresponding price changes (for example, an eight percent rise in gold prices) as well as trade volume developments.