IT Bill requires a serious revision
The Information Technology (IT) and Cybersecurity Bill, published on 10 March 2024 for public feedback, is currently under review by MOCIT (Ministry of Communication and Information Technology). Aimed at addressing digital signatures, cloud computing, cybercrime and major digitalization of public services, including the creation of websites for all government agencies, establishment of a national cybersecurity center, and forensic center, it represents Nepal’s stride toward implementing robust IT and cybersecurity regulations.
Nepal aims to implement these regulations to tackle the rising tide of crime due to fast digitization in the country. However, certain aspects of the bill, particularly concerning cloud computing and data centers, raise concerns. The requirement for companies to obtain licensing approval and undergo yearly renewal, while perhaps well-intentioned, may not foster innovation and economic growth effectively. Considering the substantial investment required for data centers and cloud computing infrastructure, businesses should ideally focus on their core operations without undue bureaucratic hurdles.
If we see international practice, especially the EU and the USA do not mandate specific licensing requirements for data centers or cloud service providers at the national level. Instead, companies are regulated by industry standards and market competition, while compliance with relevant regulations ensures legal operation and maintains customer trust. If we examine India's approach to supporting businesses through its policies, we find that it employs various strategies that aid in fostering businesses from their inception. These strategies include ensuring that all approvals required for commencing business are granted within 15 working days, offering 100 percent exemption from property tax for 10 years, and providing subsidies such as Capital Investment Subsidy, Lease Rental Subsidy and Interest Subsidy.
Several other provisions within the bill could have significant impacts on businesses. For example, the requirement for companies operating critical infrastructure to submit design and configuration documents to government bodies raises concerns regarding potential violations of intellectual property rights. Here, the bill fails to address the issue of compensating businesses for damages resulting from intellectual property theft. In cases of intellectual property theft, only minimal punishment and fines need to be paid to the government, with no compensation provided to the intellectual property owner. This omission could leave affected companies vulnerable to substantial financial losses without any possibility of recovery.
Also, instead of imposing permits for importing and distribution of IT equipment from government bodies, the government could have mentioned the establishment of minimum standards, allowing the import of equipment meeting or exceeding these standards without approval.
The requirement for data storage within Nepal's borders for financial and health organizations may pose feasibility challenges, especially during the period when the government is aggressively promoting cross-border financial practices. In the case of data collected by private organizations, it may be more practical to allow them to store their data in public clouds, with the condition that they are responsible for ensuring the security of their information. The level of security required should be determined based on the sensitivity of the data being stored, with varying levels of security measures such as encryption being implemented accordingly.
Several provisions within the bill raise concerns for individuals as well. For example, the provision allowing the storage and use of sexual material for educational or medical purposes could potentially be misused. Stringent cybersecurity measures must be applied to the machines storing such material. If the material is leaked or hacked due to inadequate security measures, the entity responsible for storing it should be held accountable, and appropriate punishment should be enforced.
The definition of criminal activity outlined in the bill is quite vague in many places, raising significant privacy concerns. Under this definition, the government could demand the submission of personal private keys. Additionally, provisions allowing investigating officers, such as police inspectors, to collect electronic devices and traffic data without proper oversight could be prone to misuse. It is recommended that higher-ranking officials, like SSPs or DIGs, oversee such activities to ensure accountability and prevent potential misuse.
The meeting of the National Cybersecurity Committee that is mentioned in this bill itself does not validate the live video link or any other electronic means of communication or online meetings for any meeting of the committee, where physical presence is mandatory. The government is trying to address emerging technologies like AI and blockchain, with few definitions for proper use but these technologies will require further study and regulations going forward.
While the IT and Cybersecurity Bill represents a significant step toward bolstering Nepal's digital infrastructure, careful consideration and amendments are necessary to address concerns and ensure the bill aligns with business-friendly practices and privacy rights. As technology is rapidly changing, it becomes imperative that the laws are modified at the same pace, something which was lacking in the past.
The author is a cybersecurity professional and student of information management. Views are personal
The bounty of ‘basant ritu’
Living in the land of four seasons, I miss ‘basant ritu’, one of the six seasons in Nepal and a time of new growth and renewal, transitioning from the cold winter to warmer temperatures and longer days. During basant ritu, Nepal’s natural beauty is on full display, with lush greenery and colorful blossoms from the lowland of Tarai to the highland mountains. The English word ‘spring’ simply does not capture all the essence of basant ritu.
The lush greenery and colorful blossoms provide us with many vegetables, and one of them is ‘koiralo ko phool’ (Mountain Ebony—Bauhinia variegata). While having the tangy and spicy ‘achaar’ (pickle), I used to feel that nature has blessed us with this bountiful and tasty flower. After exploring the culinary world as a chef, I realized that we have actually underutilized koiralo.
According to researchers, the origin of koiralo had first been reported in the East Indies area. It grows at 1300 m altitude but is also found in deciduous forests and occurs up to 900 m altitude in dry mixed forests. Koiralo trees are mostly found in tropical and subtropical countries. It’s native to many countries including Nepal, India, China, Pakistan, Burma, North Thailand, North Vietnam, Cambodia, and Laos. It’s quite common in the Indian states of Tamil Nadu to as high as Jammu and Kashmir.
It’s called ‘raktakanchan’ or ‘phalgu; in the Sanskrit language. In many languages, the name of koiralo is derived from Sanskrit’s raktakanchan, including ‘devakanchanamu’ (Telugu), ‘kanchanal’ (Punjabi), ‘kachan’ (Odia), and ‘kachnar’ (Hindi). In Pahadi Hindi, it’s ‘koliar’ or ‘koiral’. In English, it has different names, including Mountain Ebony, Orchid tree, Camel’s foot, Napoleon’s hat, Paper mulberry, and Poor man’s orchid.
We, Nepalis, mostly use buds and flowers, whereas in India leaves and seeds are used. The leaves of the koiralo plant are used in the preparation of curry, in the form of vegetables, consumed as a side dish along with rice, and used as flavorings in meat and fish. Apart from making pickles, the flower is used in the preparation of curry, raita, flour; cooked as a vegetable; flavoring of meat and fish; and filler in pakoras.
The seeds are rich in several amino acids and are used as pulses in several regions of northeastern and central India. The buds are used for making pickles, curry, flour; flavoring agents in many products; used for making vegetables; and young buds of the flower are used for making various tasty broths. It’s said that the roots, stems, leaves, blossoms, and seeds of the kanchanara are all filled with beneficial nutrients and medicinal substances that offer incredible benefits for general health.
In Nepal, two koiralo items are popular. One is a flavorful vegetable—boiled koiralo ko phool possesses a unique taste and texture, often described as slightly bitter with a subtle sweetness. It can be stir-fried, sautéed, or incorporated into curries for a delightful twist.
A tangy pickle is another popular way to enjoy koiralo ko phool in Nepal. Pickling preserves the flowers and adds a burst of flavor to meals. Here, I will run you through how to make it. The recipe is from my late mom. You can tweak the recipe to your liking to create your own version of the pickle.
Ingredients
400 gm koiralo ko phool
4 medium-sized potatoes
1 medium-sized onion, finely chopped
2 spring garlic chopped
Fresh coriander leaves, chopped
2 gm turmeric powder
2 gm ground cumin
2 gm red chili powder
17 gm white sesame seeds, roasted and ground
1 gm Sichuan pepper Timur, ground
3 gm fenugreek seeds for tempering
2-3 dried red chilies, broken into pieces
2-3 green chilies, chopped
30 ml raw mustard oil
30 ml vegetable oil
1 lime or lemon, juiced
10 gm salt
Instructions
First, boil the koiralo ko phool. In a pot of boiling water, blanch until slightly softened but retaining some texture. Drain and transfer to a large bowl.
Next, boil the potatoes: In a separate pot, boil the potatoes until tender. Peel and cube them, adding them to the bowl with the koiralo ko phool.
Pour all the powdered spices on top of the potato and koiralo mix.
Put vegetable oil in a pan over medium heat. Once hot, add the fenugreek seeds and let them sputter for a few seconds. Add dry chili, fry until black, and pour on top of the spice mix. Cover for a minute.
Add chopped onion, green chilies, and dried red chilies to the mixture with the rest of the raw mustard oil.
Mix with the rest of the raw mustard oil.
The author is a UK based R&D chef
Make Nepal a land of truth
People create laws and constitutions for themselves, then execute, implement and follow these laws as part of their civic duty. This process is common across the globe. The only times when individuals are exempt from following the law are at birth and at death. Otherwise, throughout their lives, people must abide by the law to maintain order and be seen as living a disciplined life.
As social creatures, humans naturally form communities and live among others. This need for social connection underscores the importance of fostering brotherhood and maintaining cordial relationships with one another. It’s through these positive interactions that harmony is created and sustained in society.
In today’s society, however, it’s apparent that many people, politicians and political parties often do not follow the rules and laws they are supposed to uphold. This lack of adherence to the rule of law has led to a breakdown in social harmony and an environment where breaches of legal and ethical standards are common. The authorities frequently enjoy absolute impunity for violating both political and economic rights, undermining the principle of justice that should be central to governance.
This disregard for the rule of law has contributed to growing social and religious conflicts. When those in power are not held accountable, it creates an atmosphere of mistrust and division among the people. Without a consistent enforcement of the law, the development and stability of society and the country are at risk. To move forward, it’s crucial that laws are respected and applied evenly, without favoritism or corruption, ensuring that everyone is subject to the same legal standards. This is the only way to rebuild trust, promote social harmony and foster sustainable development.
To address these issues, laws are needed to combat false accusations, rumors and hate speech. While Nepal has laws and regulations in place for these matters, they are not sufficiently strict, allowing people and political leaders to engage in character assassination with impunity.
Lawmakers in parliament must set an example through their conduct and language, presenting their opinions with discipline and respect. Since they represent the people of an entire nation, they should model behavior that is appropriate and considerate. It’s crucial to define the acceptable boundaries and types of language used when criticizing others. Even when someone is guilty of wrongdoing, there are other ways to hold them accountable without resorting to hate speech or personal attacks. The same applies for the bureaucrats.
Stronger enforcement of existing laws and the establishment of clear guidelines on acceptable discourse in public forums can help prevent the spread of harmful rhetoric and promote a more respectful and constructive political environment. Hate speech should never be tolerated, and strict measures must be taken to discourage and penalize those who engage in it.
The behavior and speech patterns of a country’s people reflect the nation’s culture and level of civilization. If we neglect to address these aspects, how can we cultivate a healthy culture and civilization? This disregard for cultural development will prevent the country from progressing in a positive direction.
Currently, the nation is engulfed in confusion because we struggle to discern who is telling the truth and who isn’t. Even those we consider our protectors and leaders often fail to be truthful, creating further uncertainty.
To address this issue, we need laws that promote honesty and respect for others. Anyone who spreads falsehoods or incites hate should face consequences, regardless of their position. This should apply universally, whether the individual is an ordinary citizen, a politician, a bureaucrat, or even a judge. If someone engages in spreading misinformation or hatred, they must be held accountable and face appropriate punishment.
In addition, it’s crucial to scrutinize the integrity of lawyers as they present their cases in court. Legal professionals should be held accountable for the accuracy of the facts they submit during trials. This ensures that justice is based on truth and prevents manipulation or distortion of evidence.
Furthermore, court verdicts should also undergo rigorous examination to ensure that decisions are fair, unbiased and founded on accurate information. Every part of the judicial process must be rooted in honesty to maintain public trust in the legal system.
Ultimately, the commitment to truth should extend across all areas of society. No matter who you are or what role you play, practicing honesty and promoting integrity are essential for building a just and ethical community.
The media plays a pivotal role in disseminating information, which means it must be held to high standards of accuracy and responsibility. Given that misinformation and disinformation are significant threats on a global scale, media organizations must be checked to ensure they are not contributing to these problems.
Nepal should strive to become a land where truth is valued and upheld in all aspects of society.
The author is a member of the Supreme Court Bar and has been practicing corporate law for around three decades
Education as a soft power
Since the end of Cold War I and emergence of a liberal international order, the extent of globalization has profoundly impacted culture and universalized the education system. Nepal is one of the few countries that has been unable to foster its culture or internationalize its education system due to a massive influence of international culture and education.
While Tribhuvan University, Nepal’s oldest varsity, has adopted a new procedure for choosing officials, it should next build a reliable transnational network and internationalize Nepali education to advance national interests and project soft power for executing public diplomacy, fostering good neighborliness and advancing national interests. A strong education system and a justifiable cultural exchange program help countries understand each other better. Essentially, a high-quality national education system not only boosts productivity but also broadens the spectrum of soft power in foreign policy, leaving a much stronger impression of the country in international platforms.
Book ‘Kathmandu Chronicle: Reclaiming India-Nepal Relations’ brings to light many stories of Nepal-India relations
A new book titled ‘Kathmandu Chronicle: Reclaiming India-Nepal Relations’ will cover in depth significant aspects of Nepal’s democratic movements, its transition from an absolute monarchy to a federal democratic republic and from a Hindu state to a secular one, the Maoist insurgency, framing of a new constitution, its foreign policy choices, China expanding footprint—and most importantly India-Nepal relations.
Written by K.V. Rajan, Former Secretary in the Ministry of External Affairs, Government of India and Former Ambassador to Nepal, and Atul K. Thakur, a renowned policy professional, columnist and writer, the book combines first-hand experience with deep research to throw new light on key events including the hijacking of IC 814, the Palace Massacre that wiped out King Birendra and his entire family, the coup by King Gyanendra against democracy, and explains why the much-vaunted India–Nepal ‘special relationship’ has repeatedly experienced setbacks, some of them with long-term implications.
Based on in depth analysis and new resource materials, ‘Kathmandu Chronicle: Reclaiming India–Nepal Relations’ is important not only in explaining the how's and why's of the past but because of its relevance to the geopolitical uncertainties of the post-COVID world, as India asserts its aspirations on the global stage and China and other major countries raise their own profiles in the region.
Both at the level of government as well as civil society, Nepal and India urgently need to come to terms with the past, understand comprehensively and objectively the unique challenges and opportunities offered by the present, and to ‘repurpose’ their relationship if it is to achieve its exceptional potential in the coming years.
K.V. Rajan, to date India's longest serving Ambassadors to Nepal and author of the book, said that “India and Nepal must learn from the past but not live in it. They can build a model cooperative relationship for the needs and expectations of tomorrow's generations, building on their unique common civilizational ties combined with new mindsets and innovative approaches.”
Atul K. Thakur, a long-time Nepal scholar, public intellectual and co-author, said, “Many books on Nepal and its relations with India have been written by scholars and foreign policy practitioners, Nepalese as well as Indian. Yet too many unanswered questions remain, about the how's and why's of the past, the depth and challenges of present trends, and prospects for the future, in an increasingly uncertain post-COVID world.
Premanka Goswami, Associate Publisher, Vintage & Head, Backlist, Penguin Random House India, said, “Historically and culturally, India and Nepal have shared special relationship. Nevertheless, this association has experienced ups and downs. What are the reasons for these issues? Why is there so much mutual distrust between two nations? Kathmandu Chronicle by KV Rajan, India’s longest serving Ambassador to Nepal to date (1995 to 2000) and Atul K Thakur, brings to light many stories of India-Nepal relationship that mostly remained untold and therefore unknown till date. We’re glad to publish the book from Penguin.”
UAE shatter Nepal’s Asia Cup dream
Nepal’s dream of playing in the Asia Cup has been shattered for the second time.
In the semi-finals of the ACC Premier Cup today, the UAE defeated Nepal by six wickets.
Nepal’s leading batsmen could not perform well in front of the defending champion.
The UAE achieved the target of 120 runs set by Nepal in 17. 2 over losing four wickets.
Alishan Sarafu scored unbeaten 55 runs for the UAE. Similarly, Bishnu Sukumuran made 28, Syed Hyder 14 and Mohammad Wasim and Asif Khan contributed 10 runs each.
Gulsan Jha claimed two wickets while Sompal Kami and Lalit Rajbansi took one wicket each for Nepal.
Earlier, Nepal, who were invited to bat first after losing the toss, scored 119 runs losing all the wickets.
Sandeep Jora scored highest 50 runs for Nepal. Likewise, Gulsan Jha and Karan KC made 20 and 17 runs respectively. The other batters failed to score in double digit.
Nepal were undefeated in the group stage match. Nepal thrashed Malaysia, Qatar, Hong Kong and Saudi Arabia.
Nepal sail into ACC Premier Cup semi-finals
Nepal advanced to the semi-finals of the ACC Premier Cup defeating Saudi Arabia by six wickets in Al Amerat, Oman on Wednesday.
Saudi Arabia set a target of 74 runs against Nepal in the match, reduced to eight overs due to rain. Nepal achieved the target in 7. 2 overs losing four wickets.
Gulsan Jha scored highest unbeaten 32 runs off 19 balls hitting two sixes and two fours. Similarly, captain Rohi Paudel unbeaten 16 runs off seven balls with one six and one four.
Likewise, Dipendra Singh Airee contributed 17 runs off nine including three boundaries.
Saudi Arabia, who were invited to bat first after losing the toss, scored 73 runs losing seven wickets in the allotted eight overs.
Abdul Waheed scored highest 37 runs for Saudi Arabia. Other batters failed to score in double digits.
Karan KC and Abhinas Bohara took two wickets each for Nepal and Lalit Rajbasni and Pratish GC claimed one wicket each.
Emir of Qatar arriving
The Emir of Qatar, Sheikh Bin Hamad Al Thani, is arriving in Nepal on April 24 on a two-day official visit, sources said.
The government is expected to make an official announcement of the high-level visit soon. The Emir’s earlier visit, scheduled for November last year, was canceled due to an unfavorable situation in the Mideast. This is his first visit to Nepal.
During the high official’s visit, Nepal plans to make a proposal for amending the labor agreement signed between the two countries 19 years ago. Qatar has reportedly responded positively to Nepal’s proposal, but it’s still unclear whether an updated agreement will be signed during the visit. About three lakh Nepali are working in Qatar, making the Gulf country one of the major destinations for Nepali migrant workers. The Emir came to power in 2013, following an announcement to this effect from his father, Sheikh Hamad Khalifa Al Thani. Born on 3 June, 1980, the Emir pursued his higher education in the United Kingdom where he attended the Royal Military Academy of Sandhurst, graduating in 1998.
Communist unity or just a coalition of convenience?
Is it possible for Nepal’s major communist parties to unite and establish a robust, unified communist entity? Leaders from the prominent leftist parties—CPN (Maoist Center), CPN-UML, and CPN (Unified Socialist)—acknowledge the allure of such a union, yet express doubts about its realization. They attribute this uncertainty mainly to the intricacies of power-sharing dynamics and the personal egos of senior figures.
In Nepal’s modern political history, a powerful communist party Nepal Communist Party (NCP) was formed in 2018 after the unification between CPN-UML and CPN (Maoist Center). However, the harmony among its top leaders—KP Sharma Oli, Pushpa Kamal Dahal, and Madhav Kumar Nepal—proved short-lived. The root cause of their discord lay in a struggle for control over both the party and the government. Despite initial attempts at reconciliation, subsequent alliances faltered, leading to renewed efforts on March 4 to pursue the vision of a unified communist front. While Dahal remains vocal about his commitment to this cause, UML adopts a cautious stance, refraining from labeling it as a communist alliance outright.
UML leaders suspect Dahal's motives, viewing his push for unity as a tactic to prolong his tenure and retain power under the guise of communist solidarity. Dahal, however, has clarified his intentions, stating that his aim was to unite leftist parties, not to secure the prime ministership. Following the formation of a new coalition, Dahal and Oli made concerted efforts to persuade CPN (Unified Socialist) leader Nepal to join, possibly even offering him the premiership after Dahal. However, tensions surfaced when Nepal's faction aligned with the Nepali Congress, causing a rift among the leaders to form the government in Sudurpaschim province. The fact that the three communist parties failed to field a common candidate for the upcoming by-election in Ilam-2 also suggests the lack of trust between them.
On Monday, Oli clearly said that the unity among the communist parties could be detrimental to both the current government and the country. While he acknowledged the importance of unity, the UML chair was critical of the parties that claim to be leftist and align with the Nepali Congress. He was hinting at the CPN (Unified Socialist)-Nepali Congress alliance in Sudurpaschim. Oli cautioned against harboring the illusion of political strength through unification with such entities.
The notion of communist unity holds appeal mainly for second-rung leaders and they are actively seeking to realize it. They seem hopeful despite the apparent reluctance shown by the senior leaders.
Leaders who have made communist unity their agenda say it will take some time for the parties to come together. According to one Maoist leader, unification between communist parties is inevitable.
“To face up with the new political forces, there is no alternative for the communist parties to come together,” he says.
But Nepal’s communist parties have historically been plagued by factionalism and division. Theirs is a history of polarization and intragroup conflicts. As the murmurs grow regarding the unification among major communist parties, so too do whispers of an alliance between Congress and UML. Only time will tell if the leftist forces can set aside their differences and march as one towards a shared future.
ACC Premier Cup: Nepal taking on Hong Kong today
Nepal are playing their third match against Hong Kong under the ACC Men's Premier Cup today.
The match will begin at 11:15 am in the Al-Amerat Cricket Ground, Oman.
Nepal will advance to the semi-finals if they secure a win in today's match.
Nepal are in Group 'A' with Saudi Arabia, Malaysia, Hong Kong and Qatar. Nepal is at the top of Group 'A' with four points.
Earlier, Nepal had defeated Malaysia by five wickets in the first match and Qatar by 32 runs in the second match.
ACC Men’s Premier Cup: Nepal taking on Malaysia today
The ACC Men's Premier Cup Cricket Championship is taking place in Oman from today. Nepal are playing against Malaysia under the Championship today itself.
This is the 10th international T-20 match between the two countries. The game is being played at the Al Amerat Cricket Ground in Muscat, the capital of Oman.
Malaysia have won only one match whereas Nepal became victorious in eight games. Ten teams are playing in this Championship to be held in T-20 format.
The teams have been divided into two groups. Nepal is in Group A, including Hong Kong, Malaysia, Qatar and Saudi Arabia. Bahrain, Cambodia, Kuwait, Oman and the United Arab Emirates (UAE) are in Group B.
The team winning the Championship will qualify for the Asia Cup.
Hong Kong and Qatar will compete in another match of Group A scheduled for this afternoon. Nepal will play against Qatar tomorrow and against Hong Kong on April 15. Nepal's last match under the group stage will be against Saudi Arabia on April 16.
The Championship will run till April 21.
Rohit Kumar Paudel (Captain), Gulsan Jha, Karan KC, Pratis GC, Kushal Bhurtel, Sundeep Jora, Bibek Yadav, Abinash Bohara, Sompal Kami, Deependra Singh Airee, Lalit Rajbanshi, Kushal Malla, Aasif Sheikh and Anil Sah are in the Nepali team.
Trust thy neighbors more
Over the past few years, China has achieved political, economic and diplomatic feats. No apparent observation, perhaps, can emasculate China’s global march—it is rising so gracefully, smoothly and enormously. China is most likely to grow from being a superpower to a mega-power. But in the evolving international system, it is anticipated to play rational, responsible and equable roles.
The most sensible foreign policy course of action for Nepal at this point of unparalleled rise of its immediate neighbor would be to strategically align with it by building mutual trust, while maintaining a delicate balance with another neighbor. Nonetheless, Nepal ought to maintain a pragmatic economic and security framework through increased mutual trust, strategic partnerships and technological cooperation with both the neighbors. Nepal’s economic, developmental and security architecture, despite many geopolitical challenges, should be guided by a sensible geopolitical assessment and wider techno-economic cooperation with immediate neighbors and other powers.
INC pledges to re-establish special ties with Nepal
The Indian National Congress (INC) has outlined its commitment to prioritize relations with neighboring countries, including Nepal, in its election manifesto for the 2024 Lok Sabha Elections.
“We will re-establish the primacy of our special relationship with Nepal and Bhutan and strengthen them to our mutual benefits,” the manifesto states.
Furthermore, the INC manifesto pledges to enhance economic and cultural ties with Bangladesh, as well as address political issues in Sri Lanka, particularly concerning the Tamil community. Additionally, it aims to mend relations with the Maldives and support Myanmar in protecting the political and human rights of its people.
The party also emphasizes bolstering India’s role in multilateral institutions, collaborating with other Global South countries on key issues, and advocating for reforms to address transnational challenges.
Asserting a commitment to continuity in India’s foreign policy, the manifesto underscores the influence of historical figures like Jawaharlal Nehru.
“Congress affirms and will uphold continuity of India’s foreign policy. Our approach was profoundly shaped by the freedom movement and developed through the wisdom of visionary leaders like Jawaharlal Nehru,” the INC says in its manifesto.
The party has criticized the Bharatiya Janata Party and the National Democratic Alliance (BJP/NDA) government for deviating from this consensus, particularly regarding the Gaza conflict, and pledged to restore India’s reputation as a proponent of peace and moderation on the global stage.
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.
India builds school, hotel buildings in Khotang
The school and hostel buildings of Shree Sharada Secondary School in Rawa Besi Rural Municipality, Khotang, built with Government of India’s financial assistance of Rs 36.10 million under ‘Nepal-India Development Cooperation’ was inaugurated on Thursday.
The buildings were jointly inaugurated by San Bahadur Rai, Chief, District Coordination Committee, Phatik Kumar Shrestha, Chairman, Rawa Besi Rural Municipality, Khotang and Shri Suman Shekhar, First Secretary, Embassy of India, Kathmandu, reads a statement issued by the Embassy of India.
Public representatives, government officials, social workers, representatives of the school management, teachers, parents and students were also present on the occasion.
The Government of India grant under ‘Nepal-India Development Cooperation’ was utilized for the construction of a double storied school building, hostel building and procurement of furniture for both buildings.
This project was implemented through the District Coordination Committee, Khotang.
The project was taken up as a High Impact Community Development Project (HICDP), earlier known as Small Development Projects, under an agreement between the Government of India and the Government of Nepal.
Shree Sharada Secondary School was established in 1952. The school is providing education from Class 1 to 10+2 level. There are over 365 students studying in the school, about 50% of whom are girls. The school has achieved remarkable success in providing quality education.
Since 2003, the government of India has taken up over 550 HICDPs in Nepal in various sectors and has completed 488 projects.
Amongst these, 85 projects are in Koshi Province in various sectors, which includes one project in Khotang. In addition to these, the government of India has gifted 974 ambulances and 234 school buses to various hospitals, health posts and educational institutions in Nepal on the occasion of Independence Day and Republic Day of India. Amongst these, 141 Ambulances and 35 School buses have been gifted in Koshi Province, which includes 4 ambulances and 1 school bus provided in Khotang District, according to the statement.
As close neighbors, India and Nepal share wide-ranging and multi-sectoral cooperation.
The implementation of HICDPs reflects the continued support of the Government of India in bolstering the efforts of the government of Nepal in upliftment of its people, augmenting infrastructure in the field of priority sectors especially in the education sector in Nepal.
Third Investment Summit: How to attract foreign investors?
The recent change in the governing coalition has cast a shadow over the upcoming investment summit scheduled for April 29-30 in Kathmandu. Former finance minister Prakash Sharan, who was leading the summit preparations, has been replaced by Barsha Man Pun. Before the coalition shift, Sharan had been actively engaging with various international stakeholders to organize the summit. Now, the responsibility falls on Finance Minister Pun to ensure its success.
The government is relying on significant foreign investment to recover from the current economic crisis. However, with less than a month until the summit, preparations seem to be moving slowly. Despite pledges to amend numerous laws and regulations to create a more investment-friendly environment, officials report that progress in this regard has been sluggish.
Officials at the Office of the Investment Board Nepal (OIBN) note that the change in the ruling alliance has hampered preparations for the summit. While Finance Minister Pun has urged officials to expedite preparations, the process of amending laws has not gained momentum, partly due to the federal parliament being preoccupied with political issues.
In addition to summit preparations, the Ministry of Finance is busy with drafting principles and priorities for the fiscal year 2024/25 budget and a new five-year plan. This leaves Finance Minister Pun with limited time to focus on the investment summit.
Several committees have been formed by the government to prepare for the summit, each with specific responsibilities. The finance minister leads the Steering Committee, while the chief secretary heads the Implementation Committee, the industry secretary leads the Technical Committee, and the CEO of OIBN leads the secretariat.
The Steering Committee initially decided to amend 10 laws and two regulations to signal to investors that the investment environment in Nepal has improved. However, priorities seem to have shifted following the sudden change in power dynamics.
A task force, chaired by the Office of the Prime Minister Secretary Ek Narayan Aryal, has been established to propose amendments to laws and regulations related to foreign investment. Its recommendations include amendments to various acts and regulations, including the Industrial Enterprise Act-2020, Foreign Investment and Technology Transfer Act-2019, Special Economic Zone Act-2016, Forests Act-2019, and National Parks and Wildlife Protection Act-1973, to improve the investment climate in Nepal.
Additionally, the task force has also suggested amendments to the Lands Act-1964, Land Acquisition Act-1977, Environment Protection Act-2019, Electronic Transactions Act-2008, Civil Aviation Act-1959, Foreign Investment and Technology Transfer Regulations-2021, and Forest Regulations-2023.
In addition to the amendments to laws, officials say the process of selecting projects for the summit has also been affected. While the implementation and technical committees have evaluated approximately 130 projects, final selections have yet to be made.
Notable projects evaluated by the committees include the Rs 104bn China-Nepal Friendship Industrial Park, the Rs 85.83bn Upper Marsyangdi-2 Hydropower Project, and the $21.02bn 40 MW solar project in Kohalpur and Banganga. Several other projects like industrial zones, special economic zones, hydropower projects, solar and wind energy projects, and reservoir projects have also been submitted for consideration to the Investment Summit Secretariat.Besides, provincial governments and the private sector have also submitted projects for inclusion in the summit.
In the 2019 Investment Summit, the government had showcased 77 projects, including 27 from the private sector, covering sectors such as energy, infrastructure, agriculture, education, and health. Although investors expressed interest in over three dozen projects, investment agreements were signed for only 15 projects.
International investors have expressed concerns about Nepal's bureaucratic hurdles and various restrictions, hindering their willingness to invest.
For instance, American private investors are keen to invest in Nepal’s tourism, medical, and other sectors. But they are unsure about the investment environment in Nepal. Prospective investors in China and India too have concerns about funding projects in Nepal. Their concerns range from a bad investment environment to unstable politics to problems related to labor issues and exit plans.
This will be the third summit in recent history, following those held in 2017 and 2019, with the government aiming to showcase Nepal as an emerging destination for global investors, particularly in green energy, tourism, agribusiness, and the IT sector.
Minister Pun emphasizes the government's commitment to ensuring the protection and security of investments, as well as providing efficient facilitation throughout the business cycle.
Box
Proposed areas for international investors
- Agro processing
- Education
- Health
- Energy
- ICT
- Manufacturing
- Mines and minerals
- Tourism
- Transport
- Urban development
Why is Nepal a preferred destination for investment?
- 57 percent population is between 15-59
- Low-cost of Labor
- Nepal is a member of SAARC
- BIPPA agreement with five countries
- DTAA agreement with 11 countries
- Treaty of Trade and Transit with India
- Treaty of Transit and Transport with China
- 100 percent ownership to foreigners
- Repatriation holiday
- Competitive corporate tax system
- Private-sector friendly laws
- Market access to two Asian giant India and China
- Easy visa service















