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Nepal’s economy has always been based on agriculture, which is also a significant component of its rich cultural legacy. The bulk of the people of this landlocked South Asian country depend primarily on agriculture for their means of subsistence. Around 65 percent of people are engaged in agriculture in Nepal as their main profession. 

The agricultural diversity in Nepal is a result of the country’s geographical diversity, which includes a wide range of temperatures and altitudes. The diverse landscapes of Nepal, which range from the fertile Tarai plains in the south to the rugged Himalayan mountains in the north, provide a foreground for a variety of crops and farming methods. Among the basic crops planted here are rice, wheat, maize, millet, barley and potatoes. Cash crops including tea, coffee, sugarcane and various fruits are also grown. Cattle, poultry and yak herding are examples of livestock farming, which makes a considerable contribution to the agricultural industry.

It is impossible to exaggerate the value of agriculture to Nepal’s economy. Almost two-thirds of the nation’s workforce is employed in it, giving the vast majority of people a means of subsistence. Also, the GDP of Nepal is mostly derived from agriculture about one-third.

In addition, the Constitution of Nepal has enlisted agriculture in the Directive Principles, Policies and Obligations of the State. Article 51 (e) Policies relating to agriculture and land reforms. Its objective is to implement scientific land reforms to benefit farmers and eliminate dual land ownership, encourage land pooling to boost productivity and discourage idle land ownership. It also aims to promote land management, commercialization, industrialization, diversification and modernization of agriculture while protecting farmers’ rights. Additionally, the policy talks about regulating land use based on factors like productivity, land type and ecological balance while ensuring farmers have fair access to agricultural inputs, products and markets.

As we see in India, With the help of cutting-edge farming innovations like the Green Revolution and genetically modified crops like Bt Cotton, India’s agricultural sector transformed from a food-deficit country into a major agricultural producer, boosting both farmer income and economic growth. Likewise, China’s extensive modernization of agriculture, which includes the use of GM crops and cutting-edge equipment, emphasizes the importance of government support in enhancing agricultural output and promoting economic growth. With the help of programs like the ATA, Ethiopia’s tech-driven agriculture is increasing production, luring investment, and boosting economic growth while also raising food security and job possibilities.

With a 34 percent share, agriculture contributes to about one-third of the nation’s GDP. When it comes to agricultural land, the Tarai makes up 60 percent of all agricultural land in Nepal. In Nepal, there are numerous huge, regularly flowing rivers, making irrigation facilities for agriculture readily available. The rivers in Nepal are capable of irrigating 6.5 x 10 power six hectares, according to estimates. This exceeds our six hectares (3.8 10 powers) of agricultural land.

International organizations and development groups help Nepal’s efforts to modernize its agriculture. Due to their close ties, nations like India and China have contributed significantly to the development of Nepal’s agricultural industry. Additionally, international collaborations, like the one with the Food and Agriculture Organization (FAO) of the United Nations, have been crucial in providing technical know-how and financial support.

Nepal’s economy, especially the agriculture sector, has been significantly impacted by the Covid-19 pandemic. Using cutting-edge farming technology can be very beneficial to the nation’s economic growth. The necessity of investing in agricultural innovation and technology to boost productivity and income is highlighted in the World Bank report ‘Harvesting Prosperity: Technology and Productivity Growth in Agriculture’. The research proposes that harnessing the significant potential gains in agricultural productivity and income can be facilitated by increased investment in new knowledge and its implementation.

Despite covid-related lockdowns, the US Agency for International Development (USAID) has been offering farmers and micro-, small- and medium-sized enterprises (MSMEs) technical support, high-quality inputs, and enhanced market linkages. These efforts have resulted in agricultural produce sales exceeding $256,000,000 in 2021—a five percent increase from 2020.

An $80m Rural Enterprise and Economic Development Project has been agreed by the World Bank and the Nepal government to support the country’s agriculture industry and accelerate post-pandemic recovery. Through the support of rural businesses and the creation of local jobs and possibilities, the project seeks to revolutionize Nepal’s agriculture industry. The agriculture industry in Nepal can become more robust and productive with the use of cutting-edge farming technologies, which will promote long-term economic growth and development.

In order to boost productivity and economic growth in agriculture, technology and innovation are crucial, according to the World Bank research ‘Harvesting Prosperity: Technology and Productivity Growth in Agriculture’. The paper places a strong emphasis on the necessity of public funding for research and development to increase productivity, new technology investment for growth, and trade and intellectual property rights legislation to foster innovation.

A number of agriTECHs in Nepal are using cutting-edge digital technologies to revolutionize agriculture. For example, the private sector collaboration with Nepali cooperatives, funded by Feed the Future, offers 200,000 farming households in 25 districts access to machines and training. In a similar vein, contemporary agricultural technology gives farmers the ability to lower labor costs and boost output.

In conclusion, Nepal is mostly dependent on agriculture, which employs 65 percent of the country’s workforce and makes a major GDP contribution. The diversified topography of the nation supports a wide variety of crops, although the agricultural industry suffers difficulties, most notably in the wake of the Covid-19 pandemic. With the help of international partnerships with China, India and the Food and Agriculture Organization, Nepal is actively implementing cutting-edge farming technologies to get over these obstacles and promote long-term economic growth. The World Bank emphasizes that in order to promote agricultural innovation, public investment for research, technology and laws are necessary. Together with initiatives like the Rural Enterprise and Economic Development Project, initiatives from the World Bank, USAID, and agriTECHs demonstrate a commitment to modernizing Nepal's agriculture and promoting hope for a more resilient and productive sector that will advance the country’s economy as a whole.

The author is pursuing BA LLB at Kathmandu School of Law 

Nepal’s ambitious roadmap to attain middle-income status by 2030 somehow weaves foreign aid into its development fabric. Emphasizing economic growth, the plan envisions foreign aid as a key driver for infrastructure development, industrialization and financial institutions for strengthening, fostering entrepreneurship and sustainable economic progress. Education and knowledge advancement, particularly for the youth, stand as vital focal points where foreign aid plays an important role in skill development and educational initiatives. Health services, agriculture and environmental conservation also feature prominently, with foreign aid contributing to healthcare facility enhancement, modernizing agriculture and promoting sustainable practices. As Nepal strives for middle-income status, foreign aid becomes not just a financial lifeline but a strategic partner, essential for nurturing resilience, growth and a sustainable future, depending upon transparent use and an unwavering commitment to national pride.

Effectively connecting foreign aid presents a nuanced challenge that involves both diplomacy and national strategy, particularly in a context like Nepal where such resources are relatively scarce. The utilization of foreign aid demands adept diplomatic skills to negotiate favorable terms and establish strategic partnerships. Moreover, aligning foreign assistance with a coherent national strategy is crucial for ensuring that aid is directed toward projects that address the country’s specific developmental needs. In a scenario where Nepal’s diplomatic presence might be comparatively modest, leveraging foreign aid becomes not just an economic necessity but a diplomatic imperative. A well-crafted national strategy, backed by diplomatic sensitivity, can amplify the impact of foreign aid, catalyzing sustainable development and bolstering the country’s position on the global stage.

“The giver’s hand is above the receiver’s hand” and, in the current context, this quote has relevance in both cultural and strategic terms. While traditionally emphasizing the virtue of generosity, in contemporary situations, it also implies a power dynamic and the strategic use of resources. In the modern context, individuals or entities possessing resources or leverage hold a superior position, and the act of giving becomes a strategic decision. 

Applying game theory, it suggests that those with the ability to provide assistance may use it strategically, aligning with their interests or objectives. The dynamics of giving and receiving, when viewed through the lens of strategic interaction, underscore the complexities and considerations involved in resource allocation and support.

In the sophisticated landscape of international relations, the individual representing Nepal on the receiving end of assistance assumes a role of profound significance. Navigating this role demands a delicate balance, where a strategic approach is crucial. It’s essential to avoid the downsides of extreme nationalism, opting instead for a measured and diplomatic conduct. This individual serves as a sharp negotiator, skillful at finding common ground without compromising Nepal’s interests. The art lies in fostering collaborative partnerships, showcasing the nation’s strengths and projecting a diplomatic image. Acting as a channel between Nepal and the international community requires intelligence in negotiations, a deep understanding of geopolitical dynamics and the ability to strategically advance the country’s interests without creating unnecessary friction on the global stage.

In the realm of game theory, the essence lies in the strategic interplay where the x-axis represents the pursuit of victories, and the y-axis signifies the tolerance for losses. Applying this concept to Nepal’s context, with its current standing on the y-axis, the nation already holds a position of relative vulnerability. The strategic imperative then becomes minimizing losses while navigating the complex international landscape. Nepal’s existing position may necessitate a strategy geared toward risk mitigation rather than aggressive victory-seeking. In situations where the odds of winning are uncertain, adopting a stance focused on limiting losses becomes pragmatic. Furthermore, given the pragmatic reality that countries extend help aligning with their own interests, crafting a strategy that involves tolerating minimal losses while securing support becomes paramount.

Indeed, expecting a level of support akin to the open-hearted generosity seen in the Satya Yuga may be unrealistic, especially in a world where personal gains often take precedence. In a scenario where self-interest governs many interactions, it becomes essential for Nepal, or any nation for that matter, to adopt a cautious approach. While acknowledging the potential for exploitation and recognizing the world’s pragmatic realities, Nepal should be strategic in its dealings. Prioritizing national interests, building alliances based on mutual benefit and being vigilant against exploitation are key components of a prudent strategy. The landscape of international relations often demands a realistic and measured approach, where expecting unwavering support without safeguarding one’s interests may prove to be a vulnerability. It’s a delicate balance between optimism and pragmatism, recognizing the potential for personal gain while striving to protect and advance one’s own national interests.

Now, as foreign aid continues to flow in for infrastructure development, it is imperative that the responsibility falls into the hands of the nation. The focus should shift toward using these funds judiciously for the nation’s own triumph, ensuring that the allocated resources genuinely benefit the citizens. In Nepal, where there may be concerns about a cultural tendency to misuse funds, it is high time for a shift in mindset. The emphasis should be on transforming the prevailing culture to one that values efficiency, accountability and sustainable development. The funds received should not only go into physical infrastructure but also contribute to a broader framework of development that aligns with the long-term interests of the nation. This shift requires not only policy changes but a comprehensive transformation in attitudes and practices, emphasizing optimal use of resources for the well-being and progress of the Nepali people.

In Nepal, the unfortunate reality persists that despite receiving aid, there is a risk of internal corruption, leading to a mismatch between expectations and actual outcomes. This challenging dynamic underscores the pressing need for systemic changes. While foreign aid is crucial for development, addressing internal issues such as corruption requires a comprehensive approach. It involves strengthening institutions, improving transparency and fostering a culture of accountability. Striking a balance between external support and internal governance reforms is essential to ensure that aid is utilized efficiently for the benefit of the nation and its people. Acknowledging and confronting the reality of corruption is a crucial step towards fostering genuine development and building trust in the effectiveness of aid utilization.

In conclusion, adopting a strategy that involves minimizing losses when receiving aid and strategically utilizing those resources for the nation’s own triumph can indeed yield positive outcomes. Nepal, faced with the challenge of corruption, should navigate this landscape with a keen focus on making smart decisions. By prioritizing efficient use of aid for tangible development, implementing rigorous oversight and fostering a culture of accountability, the nation can transform challenges into opportunities. While the road ahead may be demanding, the potential for positive impact through astute decision-making and resource utilization remains significant, paving the way for genuine development and progress.

The author is a student of economics at Patan Multiple Campus

The Commission for the Investigation of Abuse of Authority recently marked the International Day against Corruption with the slogan ‘UN-CAC at 20; Uniting the World Against Corruption’. 

Despite high-sounding slogans, corruption remains pervasive in Nepal and a legal provision in the Commission for the Investigation of Abuse of Authority Act-1991 even prevents CIAA from investigating certain government decisions, including ‘policy decisions’, apart from nexus between powerful elements of our society.   

Section 4 (B) of the CIAA Act states: “The Commission, pursuant to the Act-1991, shall not take any action in matters relating to any business or decisions taken at meetings of any house of Parliament or of any committee or anything said or done by any member at such meetings, or any policy decisions taken by the council of ministers or any committee thereof or judicial actions of a court of law.”

If such controversial provisions are not amended or done away with altogether, nobody can curb corruption in this country, given the tendency to misuse the provision on ‘policy decisions’ to make legally questionable decisions and avoid legal action, among others. Existing corruption laws, particularly the CIAA Act, and Prevention of Corruption Act should be immediately amended to control corruption, which poses a grave threat to democracy, human rights, good governance and the rule of law. 

Ulla Termacs, Danish minister for development co-operation, rightly states: “Corruption in the form of bribery and misuse of public funds is a major obstacle to democracy in many of the world’s poor countries.’’ 

Back to the Big Day. Prime Minister Pushpa Kamal Dahal said on the occasion that his government was committed to ending corruption in coordination with public and private sectors, and civil society members. However, he did not touch upon the topic of legal amendments necessary to combat corruption. 

Apparently, this type of rhetoric is good for raising awareness to end corruption, but never sufficient to end the scourge itself. 

What’s more, corruption has become cancerous in Nepal, so one or two constitutional-legal provisions are unlikely to offer a complete cure, though the measure may be able to curb it a bit. Political will is what is needed to fight this scourge. 

It will be contextual to quote Bhimrao Ambedkar, father of the Indian Constitution, in this context: “However good the constitution may be, if those who are implementing it are not good, it will prove to be bad. However bad a constitution may be, if those implementations are  good, it will prove to be good.” 

PM Dahal correctly stated on the occasion that controlling corruption will be difficult without internalizing international anti-corruption conventions and without making suitable changes in our education policy to spread the message in society that corruption is unacceptable.

If corruption continues to thrive in our country, there will be no room for good governance, the rule of law, progress, prosperity and human rights. 

Our country has witnessed countless corruption scandals, including the infamous Lalita Niwas land grab, the Ncell scam, the 60-kg gold smuggling scandal and the Bhutanese refugee scam, thanks to the association of some powerful names. Much has been written about these shameful chapters. 

Nothing is transparent except corruption in this country and nothing more rampant than corruption, thriving as it is under some very powerful noses. Moreover, policy-level corruption has tarnished the image of the country nationally and internationally. Officials of relevant agencies seem helpless in fighting corruption because they have the obligation to serve their political masters, who appoint them on their respective parties’ quotas. 

Appointment of political parties’ near and dear ones in important positions is also a reason behind unabated corruption. If the parties and the government are serious about controlling corruption, they should discontinue this practice and appoint deserving candidates instead.  

All this takes the ball back to the Prime Minister’s court. 

The PM, who also happens to be the contact agency for the implementation of the UN General Convention against Corruption, should wake up to the threat that corruption poses to the country and do every bit to put an end to it. 

The author is a former vice-chair of Transparency International Nepal

As the English New Year 2024 commences, Nepal is set to host India’s Minister for External Affairs S Jaishankar, for a ministerial joint commission meeting on Jan 4-5. This visit, which follows Prime Minister Pushpa Kamal Dahal’s official visit to India from May 31 to June 2 this year, holds significance on both political and economic fronts. 

At the PM-level meeting, Nepal and India expressed commitment to implementing bilateral agreements signed earlier. In a departure from the past, Prime Minister Dahal refrained from addressing certain important agendas that his predecessors had been raising consistently, including the Nepal-India Peace and Friendship Treaty 1950 and the EPG report. 

This article aims to highlight the significance of Jaishankar’s visit and emphasizes the tone required for advancing bilateral relations in a mutually beneficial and dignified manner.

Review of past pacts

Jaishankar has transitioned from a technocrat-diplomat to a politician and is recognized as a trusted aide to Prime Minister Modi. He has been remarkably successful in shaping India’s future, making India both heard and seen as a global power. With a keen focus on this goal, he shoulders a huge responsibility in upholding India’s relations with global powers and neighboring countries, prioritizing New Delhi’s needs and interests.

His visit to Kathmandu presents an opportunity for Nepal to garner his support in nurturing the relationship between the two countries. Nepal should use this occasion to openly discuss concerns and priorities with the Indian government. This offers a chance for a more meaningful and constructive dialogue, benefiting both nations and their peoples. For this, Nepal also needs rapprochement; Nepal should strive to lead the bilateral meeting toward a positive direction by focusing more on development and economic support rather than engaging on contentious issues.  

It’s crucial for both sides to prioritize implementation of past agreements instead of reaching new deals. It’s imperative for Nepal and India to refrain from signing new agreements or memoranda of understanding, as both nations have already established a comprehensive array of agreements covering various sectors. ‘Customary’ visits of Nepali Prime Ministers to India right after assuming the high office focus more often than not on addressing pending agendas and concerns. A crucial step for both nations is to meticulously review past agreements, assess the progress achieved and focus on effective implementation. 

One significant agreement expected to be signed during the Indian high official’s visit concerns the import of 10,000 MW from Nepal within the next 10 years. Both Prime Ministers have formally agreed upon this, and the signing of this agreement could mark a pivotal achievement for Nepal, which generates surplus hydropower during the rainy season. While increasing domestic consumption is important, Nepal’s current surplus positions it to capitalize on exporting hydroelectricity and ensuring economic gains.

It’s also important for both sides to engage in discussions on the Pancheshwar project, West Seti project, air routes and cultural aspects.

A development focus 

As previously mentioned, the Modi government has showcased India’s burgeoning global prowess. Prime Minister Modi stands among the world’s leaders, sought after for enhancing international relations. Minister Jaishankar embodies the mastermind behind India’s recently heightened global recognition and stance.

As Nepal continues its thrust toward advancing its development agenda, Kathmandu can concentrate more on seeking development assistance and grants. Nepal should prioritize and categorize pending issues on the basis of urgency, urging the Indian side to align efforts with these mutually chosen agendas.

Unresolved border issues require a diplomatic way out. Such issues might take years to resolve, just like border disputes between India and China. Despite their complexity, diplomatic channels remain crucial for seeking a lasting solution.

Nepal should assure full security for India’s investment projects within its borders, particularly joint investment hydro projects. 

While it’s crucial for Nepal to address such issues and maintain institutional memory, it’s equally important not to let them constantly strain relations and overshadow broader positive aspects of their ties. Border disputes shouldn’t dictate a perpetual state of animosity, neglecting other constructive dimensions of bilateral relationship.