What do the people want?
The current political landscape presents myriad challenges and complexities. Each day, scores of young individuals depart the country in pursuit of employment and education opportunities elsewhere. There is widespread discontent with the prevailing socio-economic conditions and governance. Citizens grapple with soaring market prices, unemployment, shortages of essential goods, and enduring issues of governance inefficiency. They encounter bribery and favoritism as pervasive barriers to accessing basic services across government offices, corporations, and banks. This pervasive corruption fosters dissatisfaction, discontent, and resentment towards the government and political parties.
In light of these challenges, the fundamental question arises: What is the path forward? What do citizens seek, and how can their needs be addressed? Primarily, people yearn for effective governance, characterized by the eradication of corruption, accountability for wrongdoers, streamlined service provision devoid of bribery, domestic employment opportunities, and accessible quality education. These aspirations form the bedrock of public expectations, yet realizing them poses a significant challenge.
On corruption and good governance
To control, minimize, and abolish the corruption in the country, the government needs the political willpower. And the parties' leadership. The govt., parties, and bureaucratic leadership must be seen as clean and bold to fight against the menace of corruption. No tickets to corrupt leaders or cadres in the election and no party promotion: This principle must be applied. The corrupt people must be filtered from below.
In Nepal, civil servants are divided along the party lines and are doing pure politics with the State’s salary. It is objectionable and inappropriate. It must be stopped. We do not find such a situation anywhere in the world. The political parties must review it and find a national consensus on it.
On CIAA
Though there are a lot of limitations and constraints, the Commission for the Investigation of Abuse of Authority (CIAA) is doing well in controlling corruption in the country. However, there is a need to bring some concrete reform and change. This institution must be free from political intervention, and there is a need to restructure the composition and bring change in the selection process of commissioners. Only then will the work of this Institution be effective and result-oriented.
On CIB and other investigating agencies
Our police investigating agencies are very skilled, effective, and performance-oriented in South Asia. The work of these agencies is highly appreciated and recognized by the regional and international police investigating agencies. The Nepali people also have a positive impression of it. However, there are always setbacks when political interventions are made. Political intervention is always made ineffective and resultless to the work performed by the agencies. So, there must be no political intervention in the crime investigation process to control corruption and punish the culprits.
On service delivery
The general people are indifferent to party politics and pay attention to their daily needs and concerns. They are susceptible to and care about service delivery issues. They always compare the Panchayat system with the multiparty and present Federal Democratic Republican system. They say that they do not find new and optimistic scenarios at present. Their impression of service delivery is even worse in the present situation. They say that without bribery or approach or caste, linguistic, and regional relations, receiving service is almost impossible anywhere in government or semi-government offices. Scenarios are the same in banks (basically for getting loans) and other corporation offices. So, what should the government do here?
The government must send concrete, clear, and circular solid notices to all service delivery offices to perform their duties promptly and adequately without delay, bribes, and approach. Otherwise, it should be punished. The home ministry, related ministries, and the prime minister’s office should be vigilant and alert so that the people can realize and see the positive change in service delivery.
On unemployment
The government should have a clear-cut vision of employment generation. Employment can be generated through State, semi-state, private, and FDI sectors. There should be an investment-friendly environment in the country. All legal, political, administrative, technical, and practical barriers should be removed in a basket decision as soon as possible. Those who are obstacles in this process should be punished. All economic activities, whether big or small, should be encouraged.
On education
Education and health have a massive potential in our country. We can make it a hub in South Asia. Our national and foreign investors are eager to invest in this area. Nepali parents are very supportive and cooperative in providing their children a quality education in Nepal. They are heartily spending money on it. The Indians have money and they are eager to send their children to Nepal for quality and cheap education. They also like Nepali weather very much. So, we have the service seeker as well as the investors too.
The only thing is the government should be supportive. We should have an apparent education policy and program and a very supportive policy and attitude for the investors.
In conclusion, meeting the aspirations of the populace necessitates a concerted effort to combat corruption, enhance service delivery, generate employment, and improve education accessibility. Collaboration between government, political parties, and citizens is essential in realizing these goals and building a more prosperous and equitable society. Through sustained dedication and collaborative action, tangible progress can be achieved towards creating a brighter future for all.
Is Nepal already in a geopolitical trap?
Over the past few years, Nepal has found itself in the midst of a tug-of-war among three major global powers: India, China, and the US. Each of these countries are vying for influence in Nepal’s economic, military, ideological and technological spheres.
Let’s begin with the US. The Biden administration in the US has made advancing democracy one of its key global priorities. In South Asia, Nepal appears to be in the high priority of the US democracy projects. The US has been inviting Nepal’s prime minister to its annual democracy summit. Both communist and non-communist prime ministers have attended the summit. The US is making efforts to counterbalance the influence of the Chinese Communist Party in Nepal and uphold democratic values in the region. In the meantime, the US is equally concerned about the influence of India’s Bharatiya Janata Party (BJP) which is pushing for the restoration of Hindu state in Nepal. A US document says: “The Nepali political class’s penchant for balancing relations with its large neighbors India and the People’s Republic of China (PRC) renders security cooperation, including with the United States, prone to political interference.”
Despite claims that it does not export its communist ideology, China has been promoting its political model in other countries. Under the guise of showcasing its achievements, China has been exporting its ideology to South Asian countries. Chinese leaders are urging their Nepali counterparts, particularly those aligned with the communist ideology, to embrace the Chinese model. Every year, China invites a large number of Nepali communist leaders to its cities to showcase its development model. Of late, Nepali leaders have started saying that Nepal can replicate the same model which reflects a growing acceptance of the Chinese model within the country.
Though India and the US are on similar pages on a range of issues, the two powers have divergent views about the democratic values in South Asia. India, on its part, is sending conflicting signals on the ideological front. While the Indian government seems committed to uphold democracy, secularism and inclusive constitution in Nepal, the ruling BJP harbors reservations about Nepal’s 2015 constitution, which, it perceives, is imbued with Western values. The BJP’s parent organization, the Rashtriya Swayamsevak Sangh, is reaching out across the political parties and the general people with Hindu-centric agendas. The BJP believes it can reduce Western influence on Nepal, dismantle secularism and restore Hindus state through such activities. Such activities are already polarizing Nepal’s political fabric.
In addition to ideological battles, Nepal is grappling with strategic challenges posed by major powers. China’s Belt and Road Initiative (BRI) and its insistence on the One China policy dominate all its engagements with Nepal. Likewise, China’s Global Security Initiatives (GSI) and Global Civilizational Initiatives (GCI) and Global Development initiative (GDI) are getting more prominence over economic issues. Nepal has consistently expressed its commitment to One China policy for over 50 years now. Still, China does not seem convinced and seeks reaffirmation on One China policy every time.
A press statement issued after Prime Minister Pushpa Kamal Dahal's visit to China last September also reiterated Nepal's firm stance against Taiwan Independence. His new Foreign Minister Narayan Kaji Shrestha echoed the same sentiment during his visit to China last month. Although China keeps emphasizing on the Belt and Road Initiative (BRI) in various meetings, tangible progress on infrastructure development under the BRI umbrella has not materialized yet. Government officials, politicians, and foreign policy analysts say that Nepal needs to capitalize on China's economic growth. However, this aspiration has yet to materialize due to the significant focus that both countries are placing on strategic concerns.
While Chinese investment in Nepal is on the rise and cooperation between the two nations has expanded in recent years, substantial investment projects that could catalyze economic growth remain elusive. Instead, Nepal’s attention is primarily directed towards ensuring that its territory is not used for anti-China activities. Regarding Chinese investment in Nepal, there have been occasional complaints from the Chinese side regarding obstacles faced by its investors.
Nepal engaged in a four-year debate on whether to accept the $500m support from the Millennium Challenge Corporation (MCC) of the US government. The MCC projects are finally into implementation. However, the project is not gaining the desired pace. Many attribute the slow progress to the government’s lackluster commitment to these projects. This tepid response was partly influenced by China’s strong opposition to the projects which labeled it as part of the Indo-Pacific Strategy (IPS). Nepali politicians, bureaucrats and experts continue to struggle in comprehending the US policy towards Nepal in the context of the IPS. Following discussions on the IPS, attention in Nepal shifted on the State Partnership Program (SPP) of the US government.
Under domestic pressure, the government led by Sher Bahadur Deuba of the Nepali Congress wrote a letter to the US government stating that Nepal won’t be a part of the SPP. Of late, there has been a notable increase in interest from US investors looking to invest in Nepal. However, Nepal has yet to effectively address this interest despite a substantial increase in US assistance through USAID.
All this shows that Nepal has already fallen into the geopolitical trap. Nepal is not seeing much investments in priority sectors as major powers are prioritizing their security and strategic interests. Though Nepal is pushing for more economic collaborations, strategic issues are dominating the bilateral negotiations and public discourse. Nepal’s current key priorities are economic recovery, minimizing the impacts of climate change and creating jobs but due to the geopolitical tensions these issues are getting a backseat in the engagement with major powers.
Nepal has struggled to take a clear stance on initiatives like the IPS, BRI, and other strategic endeavors. While managing these challenges should be the top priority of the government, the country is marred by internal political instability. Geopolitics is gradually creating rifts within Nepali society. Nepal needs to make concerted efforts to mitigate internal divisions and chart a path forward that safeguards Nepal’s interests amidst global power struggles.
Startup culture: A tale of two neighbors
In the dynamic landscape of entrepreneurship, stories emerge that captivate and inspire, shedding light on the journey from obscurity to success. One such tale is that of Asnil Grober, an Indian entrepreneur whose recent book, ‘Doglapan’, has propelled him into the limelight. Just a couple of years ago, Grober was relatively unknown, but today, he stands as a celebrated figure in the world of business.
‘Doglapan’ not only unveils the journey of an IIT graduate turned entrepreneur but also delves into the challenges facing budding entrepreneurs. It narrates the transition from the security of a job to the uncertainties of building a startup, providing invaluable insights into the entrepreneurial landscape.
In parallel, the television show ‘Shark Tank’ has emerged as a beacon of inspiration for entrepreneurs in India. With its focus on business, innovation and investment, the show has captured the imagination of viewers, drawing attention to the world of startups. Through ‘Shark Tank’, numerous budding companies have secured funding, while the judges themselves have become icons of entrepreneurship.
India’s entrepreneurial spirit has been further fueled by a conducive business environment fostered by the government. Under the leadership of Prime Minister Narendra Modi, initiatives like ‘Startup India’ have flourished, leading to a surge in startup activity. The country is witnessing a remarkable rise in the number of startups, with several achieving unicorn status, symbolizing the potential unleashed by supportive policies.
While India’s startup ecosystem is thriving, neighboring Nepal is grappling with challenges that hinder its entrepreneurial growth. Despite a burgeoning desire for entrepreneurship, the lack of funding and supportive policies presents formidable obstacles. The education system’s failure to nurture entrepreneurial skills further exacerbates the situation, resulting in a talent drain as skilled individuals seek opportunities elsewhere.
In contrast to Silicon Valley’s nurturing environment for startups, Asia beckons as the next frontier for entrepreneurial endeavors. With a burgeoning middle class and evolving consumer behavior, the region presents immense opportunities for growth. However, in Nepal, the absence of market understanding and innovation stifles the potential of startups, relegating them to short-term ventures with limited sustainability.
Yet, amidst the challenges, there is a glimmer of hope. Companies like eSewa, Khalti and Pathao showcase the potential for success in Nepal’s startup landscape. These trailblazers demonstrate resilience and innovation, defying the odds to elevate their companies to new heights.
However, for Nepal to truly harness the transformative power of entrepreneurship, systemic changes are imperative. Government intervention, coupled with private sector support, can create an enabling environment for startups to thrive. Initiatives aimed at educating and nurturing budding entrepreneurs from an early age can sow the seeds for a vibrant startup ecosystem.
Cross-border partnerships and knowledge exchange with neighboring countries like India can further enrich Nepal’s startup ecosystem. By leveraging the expertise and experiences of successful entrepreneurs, Nepal can chart a path toward sustainable growth and prosperity.
In conclusion, the juxtaposition of India's flourishing startup culture with Nepal’s struggles underscores the importance of supportive policies and a conducive environment for entrepreneurship to thrive. As both nations navigate their respective journeys, the promise of innovation and economic growth remains within reach, fueled by the passion and ingenuity of entrepreneurs determined to shape the future.
Expanding on the article, let’s delve deeper into the specific challenges and opportunities facing startups in India and Nepal.
India’s startup boom
India has witnessed a phenomenal rise in startup activity in recent years, buoyed by supportive government policies and a burgeoning entrepreneurial spirit. Initiatives like ‘Startup India’ have provided a much-needed boost to the ecosystem, encouraging aspiring entrepreneurs to take the plunge. The availability of funding, mentorship, and networking opportunities has catalyzed the growth of startups across various sectors.
The success of Indian startups like Flipkart, Ola, and Paytm has garnered international attention, showcasing the country’s potential as a hub for innovation and technology. With a large pool of skilled talent, a growing consumer market, and increasing digital adoption, India offers a fertile ground for startups to thrive.
However, despite the rapid growth, challenges persist. Access to funding remains a bottleneck for many startups, especially those in the early stages of development. While venture capital investment has surged in recent years, the majority of funding still flows to a select few startups, leaving many others struggling to secure investment.
Furthermore, navigating regulatory hurdles and bureaucratic red tape can be daunting for startups, particularly those operating in highly regulated sectors like fintech and healthcare. Simplifying regulations and streamlining processes can significantly ease the burden on startups and encourage innovation.
Nepal’s challenges
In contrast to India’s bustling startup ecosystem, Nepal faces unique challenges that hinder entrepreneurial growth. While there is no shortage of ambition and talent, the lack of funding and supportive infrastructure poses significant barriers to entry for aspiring entrepreneurs.
Access to capital is perhaps the most pressing issue facing startups in Nepal. The country’s nascent venture capital industry is still in its infancy, with limited funding options available to entrepreneurs. As a result, many promising startups struggle to secure the investment needed to scale their operations.
Moreover, the absence of a supportive regulatory framework further exacerbates the challenges facing startups in Nepal. Complex regulations and bureaucratic inefficiencies make it difficult for startups to navigate the legal landscape, stifling innovation and hindering growth.
Despite these challenges, there is cause for optimism. The rise of digital platforms and the increasing adoption of technology present new opportunities for Nepal’s startups to innovate and disrupt traditional industries. Companies like eSewa and Khalti have leveraged digital payments to revolutionize the way people transact, paving the way for a more inclusive and accessible financial ecosystem.
Furthermore, initiatives aimed at fostering entrepreneurship and supporting startups are gaining traction in Nepal. Organizations like the Nepal Entrepreneurship Forum and the Nepal Innovation Center are working to provide mentorship, training and funding to aspiring entrepreneurs, helping to nurture the next generation of startup founders.
Building a future
While the challenges facing startups in India and Nepal are manifold, both countries have immense potential to harness the transformative power of entrepreneurship. By addressing the barriers to entry, fostering a culture of innovation, and providing support to aspiring entrepreneurs, India and Nepal can unlock new opportunities for economic growth and prosperity.
Cross-border collaboration and knowledge exchange can play a crucial role in this regard, enabling startups in both countries to learn from each other’s experiences and leverage each other’s strengths. By working together, India and Nepal can create a vibrant ecosystem where startups can thrive and flourish, driving innovation, creating jobs, and fueling economic development across the region.
In closing, while the paths may differ, the aspirations remain the same—to build a better future through entrepreneurship and innovation. By overcoming the challenges and seizing the opportunities that lie ahead, India and Nepal can pave the way for a brighter tomorrow, where startups are the engines of growth and prosperity.
Trust-building is critical for Nepal and India
This article discusses some troublesome issues between India and Nepal, as well as political and economic development and cooperation. It also recommends developing mutual trust in order to resolve any disagreements through continued communication and diplomacy. In the long run, India will gain from forging the closest political and economic connections with Nepal because this will restrain China’s aspirations for regional expansion.
Because of their close proximity, India and Nepal share a unique friendship and cooperative relationship characterized by frequent cross-cultural interactions, open borders and close family relationships. Since 1950, India and Nepal have conferred on each other’s Army Chiefs the honorary title of General in recognition of their long-standing military cooperation. With equipment and instruction, India has played a significant role in the Nepali Army’s (NA) modernization
Areas of cooperation
Cooperation in a number of fields is beneficial to the bilateral relationship as well. India has been a proactive partner in Nepal's development, offering support in various domains such as education, infrastructure, energy, health, water resources, disaster management, rural development, and regional security. They have also collaborated to construct road and rail connections along the border. Indian companies are major investors in many different fields, and they have made significant investments in Nepal. Due to the two nations’ geographical and cultural similarities, India has become one of Nepal’s most significant bilateral donors since the 1950s. According to a Development Cooperation Report, India was ranked fifth out of Nepal’s top five bilateral developing partners for the fiscal year 2015-16.
Trade, FDI trends
The 2009 Agreement of Cooperation to Control Unauthorized Trade, the 2009 Treaty of Commerce, and the 1999 Treaty of Transit provide Nepal and India the basis for their bilateral trade and transit.
With a ranking of 11th today, up from 28th in 2014, Nepal is now India’s top export destination. In the fiscal year 2021–2022, it made up 2.34 percent of India’s exports. In actuality, exports to India account for about 22 percent of Nepal’s GDP. The bulk of India’s imports into Nepal include petroleum products, grains, iron and steel, machinery, and auto components. Nepal and India have the biggest trade gap, estimated to be worth $6.1bn in 2020. The bilateral energy trade surpassed
Rs 10.38bn as of mid-November 2022. Power has been Nepal’s principal export to India throughout the last few years.
India is not only Nepal’s main source of foreign investors and economic partners, but it also acts as a transit nation for a vast majority of its trade with other countries. While China has been Nepal’s primary source of foreign direct investment (FDI) since 2015, India is the nation’s major trading partner, the largest source of FDI, and the nation that, in compliance with the Indo-Nepal Transit Treaty, provides transit for almost all of the country’s third-country commerce. China held the second-highest share of FDI stock at 12.7 percent as of mid-July 2022, with India holding the largest stake at 33.5 percent.
Nepal’s infrastructure and economic growth have benefited greatly from Indian investment. Indian companies have made investments in a wide range of industries, including manufacturing, banking, telecommunications, hydropower and infrastructure development. According to Sunil Kumar Chaudhary, numerous Indian behemoths, including Tata Projects, Dabur, Asian Paints, ITC, Life Insurance Corporation of India, Hindustan Unilever, VSNL, MTNL, State Bank of India and GMR India have made large investments in Nepal.
Water resources and energy
Communication channels have been developed between India and Nepal to handle issues pertaining to sharing of hydropower resources. India now imports all of Nepal’s hydroelectricity generated with Indian investment; China is no longer the country’s primary hydroelectric investor. India is presently funding projects with a total installed capacity of 4,000 MW. Amid concerns about energy shortages in Nepal, the two countries recently inked a long-term power trade agreement with the goal of importing 10,000 MW of electricity from Nepal in the coming years.
Education
“Knowledge is just as important to foreign aid as money.” The main purpose of helping is to support nations and communities in producing the knowledge necessary for their own growth (World Bank Policy Research Report, 1998). India has been a major provider of aid in the field of education, and a main survey was carried out in Nepal to evaluate the amount and significance of India’s development aid. Per 2018-19 data, India was the second most popular destination for Nepali students pursuing higher education after Australia. #India has significantly aided in the development of Nepal’s human resources by providing thousands of scholarships and seats for a range of courses in India and Nepal to nationals of Nepal every year.
Disaster management
India sent rescue personnel, supplies and medical support in record time after a terrible earthquake rocked Nepal in 2015. India has provided more than $67m in relief assistance since then. Additionally, it was reported in November 2023 that India has sent emergency relief to Nepal in the form of essential medical and auxiliary supplies after a strong earthquake with a magnitude of 6.4 rocked Jajarkot, Nepal. India provided Nepal with $1bn in financial assistance for the districts of Nuwakot and Gorkha to be rebuilt after the earthquake. This was Indian humanitarian aid and disaster relief in Nepal provided in a swift, sure, and selfless (SSS) manner.
Infra and healthcare
As India’s principal development partner, Nepal started collaborating with India to construct a modern infrastructure. India built Kathmandu’s Gauchar Airport, now known as the Tribhuvan International Airport, in 1954. The focus on improving connectivity between the two nations was recently emphasized by the opening of the Indian railway cargo train from Bathnaha to the Nepal Customs Yard and the Gorakhpur-Butwal Transmission Line.
Additionally, because labor rates and material costs have increased, India has increased the budget for each ‘small development project’ in Nepal from the present amount of Rs 50m to Rs 240m. India has been contributing financial support to a number of local high-impact community development projects (HICDPs) in Nepal, including the construction of hospitals, schools and colleges.
Culture and tourism
As the birthplace of Shakyamuni Buddha, Lumbini, is in Nepal, Hinduism and Buddhism are closely associated with each other in both nations. The Swami Vivekananda Center for Indian Culture was established in Aug 2007 with the goal of showcasing the best aspects of Indian culture in Kathmandu.
The Ram temple at Ayodhya is currently able to boost religious tourism and pilgrimage between India and Nepal because of historical circumstances. Cultures and programs that promote interpersonal interactions are one of the most significant aspects of bilateral cooperation. Indian and Nepali media and cultural organizations have signed several agreements to boost bilateral ties.
The tourism industry in Nepal suffered greatly as a result of Covid-19. Over 300,000 Indian tourists arrived in Nepal via air in 2023, according to the Nepal Tourism Board. There are still more Indians traveling by land—more than a million. This has kept business owners busy and given the nation’s tourism industry a much-needed boost. India has thus become Nepal’s main source of inbound tourists and a major contributor to the country’s tourism industry’s earnings. Based on data from the Indian Ministry of Tourism for 2022, Nepali tourists, numbering 1,35,347, have secured a slot in the top 10, securing the seventh position among international visitors to India.
Problems and challenges
The demarcation of the Kalapani-Lipulekh-Limpiadhura area, hiring of Gurkha soldiers under the Indian government’s Agnipath Scheme, sharing of water resources, the Peace and Friendship Treaty of 1950, cross-border trade and transit, uneven trade, red tape, and disputes over water rights are some of the issues that have caused contention between India and Nepal. Furthermore, disputes over water sharing and management of water resources are still challenging issues.
Nepalis are allowed to travel freely across borders and apply for jobs in India under the terms of the 1950 Treaty of Peace and Friendship. A thorough reevaluation of these agreements is required in light of the evolving political and economic landscapes in both nations. Smuggling of arms and ammunition across the porous border, movement of terrorist elements and trade in counterfeit currency pose a serious threat to the security of both countries.
Worryingly, the reliability of connections between India and Nepal is declining. Many ethnic groups in Nepal are hostile toward India because they feel India is interfering too much in Nepali politics and jeopardizing their political sovereignty.
Building mutual trust
Building trust is necessary for diplomatic talks between the two nations to resolve disputes over borders, water, and other matters in an amicable manner. To lessen Chinese influence in Nepal, India must invest more in the country. Investing in most industries—food processing plants, horticulture, mining, IT, and so forth—seems to offer lucrative opportunities, as requested by former Nepali ministers who visited India.
India will benefit from a cooperative and friendly Nepal as a business and cultural partner. Border disputes and other outstanding issues should be settled through carefully considered methods, given the unstable policies of Nepal’s ruling parties.
Governments of the two countries ought to communicate often in order to enhance collaboration across the board. In this context, burgeoning trade with Nepal is indeed encouraging. The trade ratio between India and Nepal in 2002–03 was 11 percent, which increased to 88 percent in 2018-19, according to the Ministry of Commerce’s statistics and the Government of India.
Owing to mutual irritants in the last few years, India and Nepal ought to exercise mutual sensitivity and pragmatism in order to revitalize their bilateral relations.
Joshi is an Indian educationalist, scholar, author and writer. Views are personal
