Tackling poverty and inequality in Nepal
Poverty in Nepal remains widespread, especially in rural areas. Many poor people struggle to earn enough to meet their basic needs, relying on small, often unproductive pieces of land. This land doesn’t produce enough crops or generate enough income, making poverty more severe in rural areas compared to urban ones.
In 2010-11, about 25 percent of Nepal’s population lived below the poverty line. By 2023-24, this number had decreased to 20.3 percent, a reduction of 18.8 percent. While this shows some progress, many people still struggle to make ends meet. A 19 percent reduction in poverty over a decade is but a small improvement. Progress has been slow, and many still face difficulties, especially in rural areas. Efforts to fight poverty have not been strong enough to make a significant impact. According to a recent World Bank report, most of the poverty reduction can be attributed to remittances. This suggests that government efforts alone have not been enough to bring significant change.
This highlights the need for more action within Nepal to tackle poverty. There should be more local job opportunities, better access to education and healthcare, and better support for farmers so that people can improve their lives without having to migrate. While remittances help, they are not a long-term solution to poverty. The government and relevant organizations need to address the root causes of poverty and provide local opportunities for growth.
To reduce poverty further, Nepal must improve conditions for rural communities. This includes better access to education, healthcare, and technology, as well as improving farming practices. It’s also important to create more job opportunities outside of farming, so people don't have to rely solely on agriculture for survival.
Meanwhile, inequality in income or spending has decreased. In 2010-11, the Gini coefficient (GC), which measures income distribution, was 0.33. By 2023-24, it dropped to 0.30, a three percent decrease. The Gini coefficient ranges from zero (perfect equality) to one (extreme inequality). A GC of 0.3 shows that while inequality has decreased, it is still at a moderate level, meaning there is still a gap between the rich and the poor in how resources are shared.
Although the reduction in inequality is a positive sign, more work is needed. The three percent decrease suggests that efforts to reduce inequality are moving in the right direction, but there is still a long way to go to ensure fairer distribution of wealth and opportunities across Nepal. The government and organizations must focus on policies that help reduce inequality further. This could include improving access to education, healthcare and job opportunities for everyone, especially those in rural areas or from poorer backgrounds. By creating more equal opportunities, Nepal can continue to reduce inequality and move toward a more balanced society.
In conclusion, while poverty and inequality have decreased in Nepal, the changes are still not enough. Stronger and more effective efforts are necessary, particularly in rural areas. Remittances have played a key role, but they are not a long-term solution. The government needs to create more local opportunities for people to improve their lives and address inequality to ensure a fairer distribution of resources and opportunities across all communities.
Tribhuwan Rajpath: Nepal’s oldest ‘Bairod Ko Bato’
Nepal’s first modern highway, Tribhuvan Rajpath (named after King Tribhuvan), is not just a road but also a historical heritage. Famous by the name ‘Bairod Ko Bato,’ this route was the first motorable road connecting Kathmandu with the southern Tarai. Before the construction of this road, the only means of transport in Nepal were foot travel, horse-drawn carts and caravans of pack animals. The development of this Rajpath (Royal Path, later renamed Lokmarg et al to reflect political changes) had a profound impact on Nepal’s economy, trade and the lives of people.
Construction and historical events
Before the 1950s, the Kathmandu Valley was completely isolated from the outside world. Nepal had no paved roads, making the transportation of goods and travel quite difficult. After the end of the Rana rule in 1951, a plan was made to construct the first modern highway in Nepal with Indian assistance. With collaboration between Indian engineers and Nepali workers, the project initiated in 1953 got completed in 1956 and was named Tribhuwan Rajpath in honor of the then King.
When the artery was completed, in 1956, a jeep made its first trip from Birgunj to Kathmandu marking a historic moment when Nepal saw its first motor vehicle travel to the capital. That same year, the first bus service was also introduced in Nepal. People were so eager to see the bus that they would wait for hours to catch a glimpse of it. It was a marvel for everyone, from children to elders. Even today, this road is considered one of the toughest driving routes in Nepal. Sim Bhanjyang (2,483 meters) is the highest point of this route, where the cold climate and sharp turns pose a constant risk of vehicle overturning.
Stories of a hard road
In the past, traveling along the road used to be quite challenging for drivers, especially for those operating buses and trucks. When a new driver took a bus on this route for the first time, experienced drivers would perform a special ritual to ensure the new driver’s safety. One such tradition involved a brake test, where drivers would place stones on the road to check if the vehicle’s brakes were working properly before starting the journey. There were also times when buses or trucks would break down, and drivers and passengers would end up stranded overnight in the cold, surrounded by forests. With no help available in those remote areas, they had to spend the night waiting for assistance, facing the harsh conditions until they could continue their journey.
Center of trade and development
The completion of the road marked the beginning of organized trade in Nepal. Freight trucks started transporting goods from Birgunj to Kathmandu, making it easier to supply goods to shops. Hetaunda became one of Nepal’s major trading hubs, with trade in timber, tea and agricultural products growing. Daman is considered the most beautiful spot along this highway, offering a breathtaking view of the Himalayas, which made it a popular tourist destination. In the 1970s, as the Prithvi Highway and Mahendra Highway were constructed, people began to find easier and safer alternatives, and gradually the use of the old artery decreased. However, it remains a favorite route for bikers, adventure enthusiasts and lovers of history. Many tourists in Nepal still choose this route to experience the journey of the old times.
Full operation necessary
Transportation in Nepal is often disrupted due to monsoon rains, floods and landslides. The Banepa-Bardibas and Kathmandu-Mugling highways suffer heavy damage during the rainy season, disrupting traffic between the Kathmandu Valley and Madhes. Therefore, it is crucial to bring the good ole artery into full operation as an alternative and safe route.
A rugged terrain aside, this historic highway, which connects Kathmandu with Hetaunda and Birgunj, can play a vital role in improving Nepal’s transport safety if it is revived and upgraded. If the narrow bends of the route are widened, the road improved, and safety measures enforced, it can help ensure smooth traffic between Kathmandu and Madhes.
Revival
The history of the Rajpath reveals that it was not just a road, but Nepal’s first step toward modernization. As new highways continue to be developed in the country, it’s essential to modernize this historic route as well. One of the major challenges of this highway is its sharp bends, narrow roads and steep descents. In many areas, the road is so narrow that two vehicles can’t pass each other. To improve safety, it’s necessary to widen these dangerous bends, add safety railings, and place warning signs. Installing solar lights and reflector sign boards along the route would also make night travel much safer.
Over the years, the road has suffered significant damage due to rain and landslides, with potholes and broken surfaces being major contributors to vehicle accidents. To address this, regular maintenance and repairs should be planned, and efforts should be made to widen and pave the road so that even heavy vehicles can travel more easily.
There was a time when this road was the most important trade route in Nepal, connecting towns like Hetaunda, Palung and Daman, which thrived because of it. Today, to boost tourism and business, developing tourism hubs in places like Daman and Hetaunda would be a great idea. These towns could be promoted as part of a historic tourist route, with new markets and eateries created to support local businesses and attract visitors.
Though most people now use the Prithvi Highway and other modern routes, it’s important to recognize that the Rajpath is more than just a road; it is a significant part of Nepal’s heritage. The road should be preserved and developed as a heritage route. The government could declare it an adventure and heritage driving route to encourage more people to use it. Additionally, installing memorials and information boards at key historical sites along the route would help educate visitors and preserve its rich history for future generations.
Conclusion
To restore the lost identity of ‘Bairod Ko Bato,’ it is the right time to modernize and make it safe, reviving Nepal’s pride. This road is more than a road; it is a symbol of Nepal’s historical, cultural and economic transformation. This route not only led Nepal toward modernization but also awakened a new consciousness in Nepali society. Though journeys along ‘Bairod Ko Bato’ may have gone down today, it will always be remembered as Nepal’s first and most historic road. The transportation system in Nepal is frequently disrupted due to monsoon rains, floods and landslides. Particularly, the Banepa-Bardibas and Kathmandu-Mugling highways suffer significant damage during the rainy season, disrupting traffic between the Kathmandu Valley and Madhesh. In such a case, bringing the Rajpath into full operation as an alternative and safe route is extremely essential. This historic highway could prove to be significant for Nepal’s transport security if it is revived and improved. If the narrow bends are widened, the road is better, and safety measures are implemented, it will help ensure uninterrupted traffic between Kathmandu and Madhes. Its operation will not only boost trade, tourism and the local economy, but also act as a reliable alternative route during natural disasters. Hence, the modernization and reactivation of the historic artery is imperative for Nepal’s long-term development.
The silent teachers: What kids learn from their mom and dad
Have you ever wondered how children would develop if all their physical needs like food, clothing, and shelter were fully met but not an ounce of emotional component were offered. Imagine a child growing up with no love, no cuddling, no emotional response, no affectionate touch, and no playful interaction. By the time this child turns 10, what kind of world would exist inside her/him?
And I’m not writing this article based on mere psychological prediction and imagination. It happened in real life, ‘The case of Genie’ was a girl in California who was locked in a room alone for nearly 13 years, with almost no human interaction. She was fed and physically kept alive but was never spoken to, played with, or emotionally nurtured. What happened to her was she never learned the language and learning at the age of 13 is almost impossible as the right time for our cognition to catch and learn the neural path of language has gone a long time ago. She didn’t know how to form a relationship with other people along with herself. She was physically underdeveloped despite adequate nutrition. She was suffering from extreme social anxiety along with an inability to understand normal human behavior. As she moved forward in life, she struggled to meet the demands of adulthood, and the problem affected nearly every aspect of her life. Many studies with similar experiences have shown that individuals in such situations face a significantly higher risk of premature death. These cases often become hopeless and helpless, as both medical and psychological interventions typically have limited effectiveness in such situations.
It’s clear that simply providing the basic necessities for survival is not enough for children to develop into a healthy adult. Children absorb essential life skills and values from their parents, who teach the very ‘language of life’ through their actions, words and ways the parents relate with them. Now, let's explore what children acquire, how they absorb it, and from whom. Specifically, let's examine what a child derives from their mother and what they expect from their father in order to nurture their optimal developmental needs.
Mother
There are two literal meanings of the word ‘mother’. The first refers to the biological female parent who gives birth, while the second refers to the person who nurtures. While in the womb, a child is not a separate entity but rather a part of their mother’s body. Although it takes nine months for the child to physically differentiate from the mother, it takes much longer for the child to truly realize that they are distinct from her. For around 20 days, the child recognizes the mother by her scent. It’s only after this period that they could identify her through physical sensation. There exists very strong bonding between mother and children as we all can observe at the time of discomfort, the mother’s hug and warmth can be incredibly soothing to the child.
A mother, with an instinctive grace, senses the unspoken tides of her child’s emotions and discomfort, offering solace even when words are yet to take form. This allows the child to believe they are in safe hands, in a world where they can trust that their needs will be met with care. This responsiveness not only builds trust with the mother but also shapes the child’s perception of the world, extending that trust to aspects of other environmental entities. So the language of love, attachment, emotional security and concept of compassion is derived from a mother’s attitude toward her children. This emotional warmth, attunement and unconditional acceptance and love is internalized by the child, which further helps to develop the right brain of the children. And one of the major functions of the right brain is to process emotion and regulate emotional experiences particularly in recognizing, experiencing and expressing emotions, along with nonverbal communication and understanding the ‘how’ of emotional messages. This will teach children to process, experience, manage, and regulate both the wanted and unwanted experiences in life.
Now, let’s explore what happens when a mother’s love is imperfect or fails to reach its fullest warmth. If a child fails to internalize the love and warmth of mother, a fracture emerges, making both the giving and receiving of love a delicate struggle. It’ll be difficult for them to experience, communicate and express the emotion that they encounter in life. The rupture of this bond hinders their ability to forge deep, meaningful connections—both with themselves and with others which may further lead to social and emotional isolation. And if a child couldn’t internalize the love and emotional warmth, they may come to believe that love is something they are unworthy of. This deepens the cycle of self-criticism, reinforcing their doubts and insecurities. Even when they connect with emotionally healthy individuals capable of offering warmth and attachment, they struggle to fully trust, accept and reciprocate the same in return. An unconscious inner dialogue may arise: ‘How can other people offer the same warmth that my own mother was incapable of ?’
Father
Though a child can sense and recognize the mother, the father remains a stranger. It is the mother who introduces the father to them. Just like mother, the word father also has two distinct meanings. First in the male parents and second is linked to protection, guidance, and boundary-setting. The major role of mother is to foster the inner world i.e., love and emotional development whereas the role of father is to foster the outer world i.e., facing the world, people and navigating various challenges that life offers. Children are very tiny, immensely inadequate to face the world independently, it’s the father who not just teaches them to navigate but also supports them in the process. Whenever he faces a challenge too vast for his small hands to grasp, he seeks the comfort of his parents (especially father), finding in their presence the reassurance that he is not alone in his struggle. This embrace of support becomes his shield, offering both protection and a profound sense of security. This support empowers them to develop their own way of dealing with life’s challenges as they step into adulthood.
Now, let’s explore what happens when a father’s love is imperfect or fails to reach its fullest comfort. Let’s understand this from one example. A boy of 11 has started to become a victim of bullying in his school from his classmates. Although he somehow communicated this abuse with his parents, his father, not realizing the extent of what was happening, advised him to be more social and to avoid initiating conflicts with his classmates. He emphasised the importance of adapting to the situation, he framed teasing as a common and harmless aspect of friendship. However, this dismissal of his feelings left the child feeling unheard, gradually convincing him that he was overreacting and that his distress was unwarranted. In any way he wasn’t seeking the advice rather he declined the support or the protection we needed. Now do you think he would be able to defend and deal with the bullies the other day in school? Of course he can’t, because he doesn’t have enough support needed to deal with those situations. There’s only one viable option left—to tolerate all the mistreatment from his classmates. Nothing more than that. Fathering serves as a profound support system, much like the wings of a bird—providing stability while navigating the vast expanse of life. It becomes the unshakable backbone, a force that grounds yet propels forward, ensuring balance, strength, and the confidence to soar and deal with challenges that life presents. On the contrary, imagine if the father had truly acknowledged his concerns, responding with the same depth of understanding as the child experienced them. What if that protection would have been provided to him? The child would have learned to defend himself. He would not have internalized the bullying but instead recognized it as mistreatment, allowing him to reject such behavior in the future allowing him to navigate similar situations with resilience and assertiveness.
The fractured support from father may hamper development of a strong sense of security. One may find themselves ill-equipped to navigate life's uncertainties leading to experience anxiety. If severely deprived, one may develop a deep sense of helplessness and hopelessness, perceiving life’s challenges not as obstacles to overcome but as burdens to be endured. Rather than actively engaging with difficulties, adapting and finding solutions, they may come to believe that their only option is to tolerate suffering in silence—trapped in a passive existence where resilience feels unattainable and change seems impossible. This may further manifest in their inability to stand up for themselves and have deep fear of confrontation.
Bioethanol production in Nepal: Opportunities and challenges
Ethyl alcohol, also known as ethanol, is a biofuel obtained primarily from biomass materials, including sugarcane and maize and starch-bearing agricultural products. It is a volatile colorless liquid that serves as an environmentally-friendly fossil fuel substitute since it releases fewer pollutants during use. The mixture of bioethanol and gasoline produces biofuel that both lowers greenhouse gas emissions and decreases national dependence on petroleum products. It is used in varying proportions in different countries, such as E10 (10 percent ethanol, 90 percent gasoline) and E20 (20 percent ethanol, 80 percent gasoline). Moreover, ethanol serves as a vital component in manufacturing alcoholic drinks and pharmaceutical medicines, as well as industrial solvents, sanitisers and disinfectants. The demand for ethanol is increasing globally as countries transition toward sustainable energy solutions. With Nepal’s reliance on imported fuels and its agricultural potential, ethanol production presents an opportunity for economic growth and energy security.
Historical background
The idea of blending bioethanol in petroleum products started in 2003 when the Ministry of Industry, Commerce and Supplies (MoICS) ordered the mixing of bioethanol in gasoline. Even blending equipment was installed at the Nepal Oil Corporation's Amlekhgunj depot. However, the initiative stalled because there was no pricing mechanism or purchase agreement in place. In the meantime, plans to extract bioethanol from jatropha largely failed despite the fiscal year 2009-10 budget seeking to promote jatropha farming for biodiesel production.
While the 13th plan (2013-14 to 2015-16) pledged to formulate necessary policies for biofuel production, the Rural Energy Policy of 2006 strongly emphasised identifying possible biofuel production locations. Initiatives to incorporate bioethanol into petroleum products were announced in the Policy and Programs for the 2014-15 fiscal year, and the following year, private sector involvement was encouraged. Despite these legislative frameworks, no noticeable advancements have been achieved.
Recent initiatives
In 2024, a new wave of momentum appeared for the local production of bioethanol in Nepal. Minister for Industry, Commerce and Supply, Damodar Bhandari, made a significant announcement on the bioethanol blending strategy on 9 Sept 2024. The rules governing the blending of bioethanol and petroleum products are already in place and this action is anticipated to generate domestic jobs and significantly cut daily petroleum usage. Setting purchase prices from producers is one of the tactics that the NOC has been entrusted with creating for bioethanol production and marketing. One major bottleneck has been the delay in setting these prices, although new guidelines are meant to speed up the procedure.
Advantages galore
It is estimated that Nepal has the potential to produce 100 kiloliters of bioethanol every day. The country produces around 3m tons of sugarcane annually and other relevant biomass resources, such as maize, in large quantities for bioethanol production. Hence, the establishment of bioethanol plants would allow for the stabilization of sugarcane prices, minimization of post-harvest losses with more sustainable marketing strategies, thereby providing relief to farmers. Local bioethanol production would accrue economic advantages in the long run. The production of bioethanol in Nepal would, therefore, reduce the dependence on imports, saving millions of rupees each year.
Bioethanol production would also generate thousands of jobs in rural sectors, thus fostering economic development and curbing migration to urban centers. Costs of bioethanol could be reduced to Rs 80–90 per litre if produced in Nepal, therefore relieving consumers with cheaper fuel. It will also contribute toward Nepal’s commitment to curbing climate change by erasing CO2 emissions and paving the way for cleaner energy alternatives.
Besides, there is a reasonably good prospect for Nepal to export ethanol to neighbouring countries, especially India, where the bioethanol market is now booming, and an increasing number of states are announcing purchase prices for bioethanol for blending with gasoline. The establishment of ethanol plants does entail investment in infrastructure, research and policy formation, but these gains outweigh the costs by far in the long run.
Nepal relies heavily on petroleum products from abroad to meet its energy requirements. According to the Department of Customs, approximately 306,229 kiloliters of petrol worth Rs 26.45bn was imported during the first half of the fiscal year 2023-2024, compared to 281,970 kiloliters worth Rs 28.55bn in the same period this fiscal year. This growing dependence on petrol significantly strains Nepal’s foreign exchange reserves and increases trade deficits. Bioethanol blending in petroleum products will help Nepal save billions of rupees by reducing petrol imports. If the nation uses a 10 percent ethanol blend (E10) in petrol, Nepal can reduce the import of gasoline by 10 percent, resulting in enormous economic gains. With 306,229 kiloliters of existing imports, blending the ethanol would save around 30,622 kiloliters of petrol, amounting to a financial saving of around Rs 2.64bn.
Blending bioethanol with petrol in Nepal can significantly reduce CO₂ emissions and fuel imports and bring economic gains. One liter of petrol generates 2.3 kg of CO₂ approximately, and thus Nepal's annual consumption of 306,229 kiloliters of petrol generates approximately 704,326 metric tons of CO₂ emissions.
With a 10 percent ethanol blend (E10), petrol imports can be reduced by 30,622 kiloliters, reducing CO₂ emissions by 70,432 metric tons annually. This transition would also enhance air quality, reduce fossil fuel reliance and assist in meeting Nepal’s climate goals. Moving to domestic ethanol production aligns with a circular economy using sugarcane, maize and agricultural waste and creating value-added byproducts like animal feed and organic fertilizers. Further, this industry would create thousands of jobs in agriculture, ethanol manufacturing, transport and research, assisting rural farmers and enhancing Nepal’s economy. With ethanol blending policies, Nepal can save billions of dollars in fuel import costs, reduce pollution and develop a green, self-reliant energy sector.
Global trends in blending
Bioethanol blending policies vary significantly across countries, reflecting each nation's goals for energy security, environmental sustainability and agricultural development. The government adopted an aggressive blending policy in Brazil, a world leader in bioethanol production. The Proálcool Program that began during the 1970s formed the foundation for the E100 (pure bioethanol) flex-fuel cars widely utilized today. E27 is already mandated in gasoline today with the intention of increasing this even more. Success in Brazil is partly due to its massive sugarcane output, which is highly well-adapted for bioethanol manufacturing. In the US, bioethanol blending is regulated by the Renewable Fuel Standard (RFS), which mandates increasing bioethanol blending into gasoline over time. The most commonly available blend is E10, with E15 and E85 available for flexible-fuel vehicles. The US has a highly developed corn bioethanol sector, though controversy remains about environmental effects and food versus fuel. In the EU, Germany and France, for example, employ various ratios of bioethanol blending that prefer to range between E5 and E10 to meet climatic aspirations and mitigate greenhouse gas emissions.
The European Union Renewable Energy Directive (RED II) seeks to promote renewable energy consumption in biofuels with specific requirements for using bioethanol in the transport sector. Moreover, India has set the ambitious target of blending 20 percent bioethanol (E20) by 2025, mainly founded on utilizing its resource-intensive sugarcane sector. The government has supported bioethanol production through better procurement prices for sugar mills, incentivizing the addition of bioethanol plants. These different bioethanol blending policies put the growing global acceptance of bioethanol as a core solution to reducing greenhouse gas emissions, promoting energy independence and encouraging local economies through agricultural and industrial growth.
Challenges and the path ahead
Although there are obvious merits, there are still no specialized bioethanol production plants in Nepal. Uncertain government policies and incentives toward bioethanol production are not a good motivator for private investments. Also, a steady supply of raw materials is needed for bioethanol production to initiate. At the same time, the agricultural sector of Nepal faces challenges such as varied crop yields, the absence of irrigation facilities and dependence on imported chemical fertilizers. These factors create uncertainty when considering bioethanol production investments.
One of the most important factors is that a blending policy is mandatory for bioethanol. The Nepal Oil Corporation (NOC) has been testing the blending of bioethanol later into fuel, but large-scale implementation has thus far not happened due to physical constraints, policy hurdles and the unwillingness of fuel dealers to accept blended fuels. The most important fuel source in Nepal's distribution network comes from India, which already has a blending policy. Without encouraging policy enforcement and significant investments in infrastructure capabilities for bioethanol distribution, Nepal will continue to depend on imported bioethanol instead of promoting its domestic production. Furthermore, there is no dedicated infrastructure in Nepal for the storage and transport of bioethanol. Unlike fossil fuels, bioethanol is very combustible and quickly absorbs moisture, indicating the need for dedicated storage tanks and pipelines. Therefore, blending bioethanol in Nepal is a grand but not yet completed plan.
To reap the benefits of bioethanol production, the government should consider initiatives to attract investment, build infrastructure and implement policies for bioethanol blending. The government should extend support for bioethanol production projects by providing subsidies and tax incentives to ensure investors a reasonable return. Working with the private sector, farmers and research institutions would help develop a sustainable bioethanol production ecosystem. If Nepal were to set up production facilities for bioethanol successfully, it could ultimately gain the benefits of lowering its fuel import bill, providing jobs, increasing farmers' incomes and providing energy security. Furthermore, the production of bioethanol is also in line with Nepal's commitment to carbon emission reductions and promoting cleaner forms of energy. Therefore, with strong policy support, it seems feasible for Nepal to establish a flourishing bioethanol sector that will be environmentally sustainable and drive economic growth.