Sujeev Shakya

Articles & Publications

Reversing reforms

Nepal is stepping back further rather than moving forward

The International Finance Corporation (IFC) released its annual report measuring the ‘Ease of Doing Business’ a couple of weeks ago. The fact that Nepal has slipped a few more places does not really seem to bother anyone. Many people in leadership perhaps even do not know what this report is all about, and furthermore, as it is in English, fewer of them care. However, emerging markets use the way they have climbed steps in the Doing Business report to lure more investors and increase investor confidence. Perhaps slipping places in the report is actually a reflection of the mindset and action of the current administration that, since close to a year, actually enjoys a two-thirds majority in parliament. The government is also the first in the past three decades to actually push whatever it wants to—be it advocating for reforms or reversing reforms. Seems they have preferred the latter.

Reduction in dollar payout
A big news item last week was that the central bank, Nepal Rastra Bank (NRB), reduced the amount of foreign currency one can obtain for travel from $2,500 to $1,500 and reduced the limit on ‘Letter of Credits’ for imports. The reason was that close to $200 million was exchanged during the first couple of months of the current fiscal year when departures included a large number of Nepalis going out during the Dashain holidays. It still puzzles everyone why a $30 billion economy with a $10 billion foreign exchange reserve becomes worried when $200 million goes out the door. Even if we take $100 million a month, we are talking about $1.2 billion a year. Rather than increasing the limit to reflect increased per capita income, inflation and affluence of Nepalis, they have gone back.
Such decisions are an indication of how the central bank views the economy, system, processes and their own importance. Everyone knows how people close to politics and power can wiggle things for themselves;common people who go by the book are the ones that suffer. It is very well known that most bureaucrats and people in politics have little future invested in Nepal. Most of their children are studying outside Nepal and will take up the future abroad. Repeated research has shown that only a small proportion of this segment actually returns. So why should someone who has decided to babysit their grandchildren in the UK, the US or Australia actually decide to open up the economy and usher reforms? Sycophants who can go back to political masters with such decisions indicating how they have kept the country intact from outside influence and ensured that capitalism will not influence the economy and pursuit of socialism surely get rewarded.
No English please
The other big problem that we see is that in the name of implementing the constitution, every document now has to be in Nepali. So tomorrow, if there are a couple of billion-dollar companies owned by foreign investors operating in Nepal, they also cannot use English as the language of choice. The legal community is happy as it has allowed the business of translation to flourish. There are only a few who oppose this as the cartels that control nearly 90 percent of the economy, apart from the sale of momos, are never interested in foreign investment, and they do not care. While one breed of first time young entrepreneurs are suffering as they have been educated and exposed in English, the language of their comfort, a vast majority of other young entrepreneurs are undeterred. Many people who get on the stage at events are basically perpetuating what their fathers and grandfathers created, and they are happy to depend on family insiders that will be more than happy to deal in Nepali. In government offices, using English is seen as being subject to outside influence and again propagating globalisation and capitalism. Therefore, the usage of the Nepali language, however impractical and regressive it is, will benefit the cause of socialism and, of course, make a few people more equal than others.
There are pundits who apologise in public for having to speak in the English language as they have committed to only speak Nepali. These people will tell you how many countries in Europe, China and Japan have embraced their language, and that is what we should do. However, they do not realise that there is not a single emerging market that has shunned English as a business language and pushed economic growth. Developing a bilingual, and now with federalism, a multi-lingual culture is the only way to open up the country to investors that will push economic growth. We should not forget that for Nepal to just reach its $100 billion Gross Domestic Product target by 2030, it needs $8 to 10 billion in investments per year; and that will only be possible through foreign investments and opening up the economy. Rather than the myopia of limiting foreign exchange, allowing Nepalis to invest outside Nepal will bring bank foreign exchange in terms of profits and dividends. Speaking at the FinTech conference in Singapore last week, Christine Lagarde, managing director of the International Monetary Fund (IMF), appealed to all member central banks to open up and be ready to regulate e-money. In Nepal, this would surely be comparable to explaining to hooch drinkers the different ways in which single malt whiskey ages or is sourced. Everyone who has a genuine interest in Nepal’s economy, and not just a personal interest in keeping one’s job intact, should really start thinking what the impact will be if reform is not pushed but reversed.

 

Tihar musings

Festivals give you an opportunity to reflect and observe

In Delhi, Diwali is a big deal. Besides being one of the most celebrated festivals in India, Diwali is also  the biggest festival of gift exchanging. And it is done in grand way. Gifts of all kinds–corporate gifts, family gifts–are exchanged during the festival.

This culture of exchanging gifts has over the years become more than just an expression of gratitude. It has become  competitive. Whose gift is better, whose gift  outdoes whose, what did you get as a gift from so-and-so organisation or from your so-and-so relative. These are the questions that swim in the minds of the people who receive gifts.

Such a culture has also slowly made its way into Nepal, especially in Kathmandu. The gifting culture here has become transactional. And unless there is a social or religious compulsion or a transactional gain, the culture of gifting does not really exist. The culture of gifting is dictated by the norms of the community one belongs to and by the importance one gives to their religious and cultural traditions.

The culture of gifting is always a man’s world in Nepal. This notion makes me wonder how this society, where such behaviour is still prevalent,  can really understand the importance and urgency of equal rights of women as equal citizens. Festivals in Nepal, while changing, are still designed for  men. It is the men who celebrate with the women folk in the house cooking and cleaning. One of the most important reasons of the migration of educated working women to other parts of the world has been the fact that they cannot handle this social and family pressure. This has not been much talked about as it has happened in the homes of activists, thought leaders and self-declared intellectuals. Whenever I see posts of people on social media talking about how they celebrated their festivals with their families in different lands, I keep wondering whether they get away with the bullying back home.

Gamble on

While we are talking about festivals, let me touch upon an activity that is synonymous with festivals: gambling. There are many theories on whether gambling proliferates more in societies that are rent-seeking rather than those that are entrepreneurial. Personally, I have refrained from gambling not because I don’t enjoy a game of cards, but because I cannot handle the big stakes. I keep wondering: will I put at stake my hard-earned money in a manner to blow up big stakes in couple of hours? So what money is being gambled? You can gamble the earnings you got from rent; money that you had nothing to do with as previous generations created assets for oneself. That money can be gambled without you batting an eyelid. It’s always the people who have the free money who are the ones who don’t mind risking  it.

This gambling mindset has had particular influence on  our government, especially political leaders, who keep gambling with projects as the money is thought to be not of oneself. The opportunity to squander taxpayers’ money is the biggest gamble one can embark upon. This is one of the key reasons why the Nepali economy is a laggard and the quality of growth so poor.

Across the villages and towns in India, they are always waiting for festivals in Nepal, for it is during this time that  business opportunities are most available.  I remember writing in one of the columns in this paper about how a group of eight sweet makers took back $ 10,000 after spending a month in Nepal just making sweets. The same is with vendors selling all kinds of wares in different parts of Nepal. It is interesting that while people complain there aren’t any jobs in Nepal nor opportunities, they do not take the initiative to get into entrepreneurship.

Hail Kulman

Yet, everything said, there are still horizons of hope. This Tihar, unlike the ones we celebrated in the past, we can light up our homes. It was not long ago that we spent  many Tihar figuring out our inverter’s back-up capacity and when and whether we can afford to switch on which light. In 2015, the festival had been its most somber with the  Indian blockade and the earthquakes severely affecting the festive mood.

This year, however, every family who will light up their homes this year will surely, knowingly or unknowingly, think of Kulman Ghising, the MD of the Nepal state utility who demonstrated that good and honest management will bring changes.  He managed to impact the lives of the Nepali population by ensuring that we got an uninterrupted supply of electricity. It was a big lesson for a country that could not  spend its money wisely and who wasted opportunities like getting $4 billion committed after earthquake or $ 13 billion investment committed at an investment summit.

As we seek the blessings of Goddess Lakshmi for more wealth and prosperity, we need to  understand that money is not the solution to everything. The country is not poor, the GDP is $30 billion and then remittance is increasing. People’s asset values are also increasing. If one values assets alone, Nepalis are richer than ever before. But that surely ensures that one needs to think beyond money. This Tihar, think about how now that  we have the money, but what do we need to do to fix Nepal?

http://bit.ly/2F6kTav

Circular economy

A multi-pronged approach is required to make business sustainable

Nepal, with its amazing but fragile biodiversity, has an opportunity to lead the global discourse if a few sustainable efforts can emerge towards building a circular economy

At the Responsible Business Summit in Singapore co-hosted by the United Nations Development Programme (UNDP), the discussion on one of the streams was Circular Economy. The phrase has been there for three decades, but as the climate change discourse is building, the discourse around circular economy has increased.

Circular Economy is much understood as something to deal with recycling only; the concept is broader that touches from rethinking, design and system to usage. This is in contrast to the linear economy that works on the create-use-dispose mode. With the landmark report on climate change released by the UN Intergovernmental Panel on Climate Change (IPCC) that makes the writing on the wall even more clearer, governments, global multi-nationals and people from different fields are coming together to look at what can be done. While this is a very vast field to begin work on, the focus has been on plastic, which is now globally acknowledged as one of the biggest problems in terms of its disposal and the problems it has been creating. Large corporations are waking up to this reality and pushing innovation in packaging and design apart from exploring newer collaborations in disposal and recycling.

Challenges in Nepal

In Nepal, the plastic ban is the biggest joke after traffic lights. A plastic ban has been talked about since the 1990s and the discourse gets only aggravated when donors put in some money for campaigns. The cartel of companies producing sub-standard plastic bags and other materials have well oiled the political and government machinery to ensure that the ban remains like a religious vow, always taken but never implemented. Corporates that use plastic packaging have never thought it important to figure out how to manage the waste their packaging generates. From aerated beverages to Nepal’s national food, instant noodles, packaging waste continues to accumulate. Plastic bags are omnipresent and seen most in temples and places of worship. Even during Environment Day programmes, we have seen food and drinks served to volunteers on plastic cups and plates.

The other big generator of plastic waste is bottled water, popularly known as mineral water in Nepal. Produced by multiple players with over 500 plus brands in the country, they stay united under a cartel that has been effective in shooing away government teams during inspections related to quality. These bottles along with plastic bags clutter drains and pollute rivers; and finding newer landfill sites is a nightmare.

Plastic as such is not a problem that needs elimination, from the time we get up and use plastic bristles in toothbrushes till we go to bed, we use plastic in different ways and forms. However, it is important now to understand what usage is good and what is not. I still remember when plastic bags and water bottles started getting more prominent as a symbol of status; and fueled by convenience, this was seen as something that was going beyond poverty. Therefore, people used plastic and plastic bottles as a status symbol rather than convenience. Also, in a country where household chores are looked down upon, everyone wanted to escape the hassle of washing cloth shopping bags and glass bottles or other water containers.

Later, carrying cloth bags for shopping or water bottles was seen as something done by expatriates or English-speaking Western activists, it is still not seen as something simple that can be used by everyone. In a country that is always projected as a poor one, and where politics and the business of development has been about rent seeking on poverty, plastic bags are being projected as something that is essential for the poor.

The challenge of waking up people who are pretending to be asleep is always greater than the challenge of waking up people who are actually sleeping. Like the necessity of disposal of waste to keep one’s surroundings clean, people know that low grade plastic creates challenges of disposal; and with videos of dirty oceans going viral on social media, people are aware of their own share in creating this global problem. Corporations know about the trash they are generating through their packaging, but it is easier to get a minister to get a corporate social responsibility (CSR) programme launched than to take on the corporate responsibility of waste disposal.

It is not about spending money. More money has been poured into not-for-profit organisations in the name of plastic management and promoting cloth bags. These disappear once donor support finishes, and the promoters of such organisations then look for another ‘project’. A few initiatives like Khaalisisi have been trying to explore innovations in the management of trash. There are other start-ups that also need to ensure they have a sustainable business model, and not promote a business for social media fame or photo-ops but build something that will last long term.

Way ahead

We cannot expect much from the politicians or the government as there is conflict of interest with people who do not want better management of production, usage and disposal of plastic as their interests are tied through cartels that produce bad plastic and packaging. The circular economy discourse is surely beyond plastic. It is looking at designing products and services that promote reuse and recycling along with reducing waste. There are many institutions that can come together and work towards utilising the circular economy concept for attaining the Sustainable Development Goals (SDGs). Yeti Airlines CEO Umesh Rai made a presentation at the Summit about how the carrier was transporting back waste from flights returning from Lukla, which was very well received.

Nepal, with its amazing but fragile biodiversity, has an opportunity to lead the global discourse if a few sustainable efforts can emerge towards building a circular economy. Twenty-five years ago, we were in the global limelight for our efforts to make the trekking economy circular; now we have another opportunity. With the UNDP as the key focal point and repository of the global work on SDGs, more collaborators are necessary. Innovative ideas welcome.

http://kathmandupost.ekantipur.com/news/2018-10-23/circular-economy-20181023080045.html

Falling rupee

It is time to have a long-term plan to manage the Nepali rupee

Contrary to the propaganda established by the current Indian administration on projecting a stable Indian Rupee, the currency has fallen 22 percent in the past four years. From close to Rs 59, it is now close to Rs 74. The impact of the failed demonetisation, among other reasons, have impacted this fall.

Nepali economy is a 1.6 one. That is, for every impact on the Indian Rupee, we get hit 1.6 times. This political exchange rate has never been reviewed. Despite being a  USD 30 billion economy that has its currency pegged to another currency, we have not thought it important enough to have a mechanism to review this and continuously monitor it. Since the mechanism began 50 years ago, no one has been able to explain why the exchange rate is 1.6 and what will change this.

Post demonetisation blues

When India declared that sets of bills in circulation would lose their value and be nothing more than pieces of paper, there was a lot of outrage. Ordinary people spent hours queuing at banks to get rid of the bills. A mechanism that was thought to be a tool to curb ‘black money’ became a big joke, as more than 99 percent of the bills were returned to the banks.

The Indian Rupee is informal legal tender in Bhutan and Nepal. There is a free flow of the Indian currency in these two countries. While a mechanism was developed for Bhutan to give back the demonetised Indian currency, for Nepal, there has been no such mechanism. Nepali institutions, including the Nepal Rastra Bank, who has a stock of Indian demonetised bills, are left to believe it is now just a piece of paper. The media houses in India that support the current administration made a lot of noise about Nepal holding over $ 1 billion dollar of demonetised Indian rupees, as Nepal remains to be seen as a hub for terrorism financing.

The big question therefore now remains: how much can we trust the Indian Rupee when demonetisation happens? The low trust in bilateral relations cannot resolve issues. So, if there is a big problem with the Indian currency, will the damage in Nepal be handled without impacting its economy? No one has been pondering on this question, but we should.

Free from being India locked

Nepal is in talks of signing the trade and transit agreements with China, but this does not mean Nepal’s economy has finally been freed from being India locked. If the intent of the government is to diversify trade and investment, then it is also time for it to think about whether it needs to diversify its currency basket. Globally, the Chinese Yuan or RMB is becoming a currency to reckon with, as the value of the USD is declining. The situation is not ‘either-or’ for Nepal, but it is something to ponder on.

With the way, Nepal-China relations are going, Nepal will see surely more investments from China in the years to come. Further, with Chinese outbound tourists crossing the 150 million mark in 2020, and aiming to close the 250-million mark in 2030, it is obvious that there will be more Chinese tourists visiting Nepal, especially because by the time Bhairahawa and Pokhara airports will get completed. With Buddhism becoming more openly discussed and embraced, the birthplace of Buddha will be a must-visit place for Chinese tourists in years to come. There are currently more weekly flights from China to Kathmandu than India, and this trend will probably not reverse.

Swelling remittances

Whenever Nepali exchange rate is discussed, the inflow of remittance is never brought up. The $6 billion that comes in remittances does keep the currency flow coming in to balance out the $ 10 billion export. If we continue going at this rate, in 2030, the economy will be $ 100 billion,  and we could be talking about $ 25 – 30 billion of annual remittances coming into the country. We need to start understanding what the impacts of such a large amount of US dollars coming to the economy will do on the exchange rate.

A long-term plan needed

In Nepal, planning is not something we really enjoy. We send out for food to be bought only after the guests come home! We can never anticipate problems and are very bad at dealing with them. The way the  Nepali government handled the Indian Rupee stock issue after demonetisation is appalling.

The time has come to think of the future of the Nepali Rupee and what will be the best mechanism to keep its value strong. It is not necessary that the current arrangement has to change, but we need to know why a certain decision is being taken. If there is a peg with the Indian Rupee, then should it not be reviewed when there is a big inflow of US Dollar coming into the country through remittances, something which was not there at all when the peg was changed to 1.6? Is it time bring it down to 1.3? Further, is there a need to move to a currency basket of INR, USD and RMB? If so, by when should we do it?

Perhaps, the Nepal Rastra Bank needs to work on a Nepali Rupee 2030 paper and plan. We are always there to help work on it.

https://kathmandupost.ekantipur.com/news/2018-10-09/falling-rupee.html

Boulder musings

They should build Boulder Park at Teenkune with the help of Kathmandu’s sister city

The flat iron hills that make the city of Boulder so beautiful remind you of being in familiar territory. While hiking the beautiful trails that crisscross these hills, one continues to think of getting back to somewhere you have been. Walking through the pine forests, it just reminds one of being on the way from Hattiban to Champadevi, or looking down you feel you are walking from Chisapani to Chandragiri. The only difference is that you do not have litter of noodle packets and water bottles. Also, there are no signs of bulldozers having made their mark. Walks through these hills make one wonder the commonalities and the contrasts. Smiling walkers and joggers greet you the same way you are greeted on the trekking trails of Nepal. All this reminds me of the piece I wrote for the Himalayan Arc–Himalayan Citizen, where I talk about home being where the hills and I meet.

JLF at Boulder

The Jaipur Literary Festival (JLF) has branched out working on many festivals around the world now. This is the fourth edition of the JLF in Boulder, Colorado. The venue is the public library and one keeps wondering why in Nepal the concept of public library and space has vanished. At the opening ceremony, David Farnan of the Boulder Public Library said something that hit me very hard. Public libraries are the signs of existence of a real democratic society. These libraries exist because they are created and curated by an open-minded community. Sanjoy K Roy and his team at Teamworks churn out world class events at simple venues.

I just reflected on the challenges of doing events in the Kathmandu Valley as hotel hall prices are soaring and banquet halls with filthy toilets can only be used to cater to the thousands who are willing to pay for anything to keep up with societal competition. The four simple venues carved out of the spaces of the libraries makes this festival unique. Hundreds of volunteers and people making financial contributions make this festival happen. When I reflect on the similar festival Mountain Echoes in Thimpu, Bhutan and here in Boulder, it is also so important to have a society that has order to make hosting events easier. It does not come with the mayhem of an undisciplined chattering crowd that does not care about the rules or basic human etiquette. A lot for many festivals that are mushrooming in the region to learn from.

The Himalaya has a special meaning for Boulder and Colorado. It is always amazing to be part of a panel with people one has read and admired. Broughton Coborn, author of Aama in America: A Pilgrimage of the Heart, has now more books behind him. This was one of the first books I got engrossed in when I returned to Nepal after my studies. This book is about the journey of a Nepali aama to the US. When you hear Wade Davis, another explorer who has written about Nepal, one wonders how much one can travel during a lifetime and write and talk about cultures that one will never be able to encounter.

Yak Girl, as she likes to call herself, Dorje Dolma left Nepal at age 10 and settled in Colorado. Here is a story one can continuously push one into the past and discuss how she can compare present-day Nepal which has changed tremendously from the time she left many decades ago. Shambala Publications is a Boulder-based publishing house that has an amazing array of titles on the Himalaya and Buddhism, and many Nepal books have been published by them.

Nepalis, Buddhism and Colorado

The early Tibetans and members of the Himalayan community settled here as they found the landscape similar to Tibet. Like the Uber driver who drove me from the airport said, this is the only place in US where you can find monks squatting on the front lawns. Due to the similarity of the higher Himalaya, the Himalayan citizens took a liking to it and now have developed a big community. It is difficult to talk about national identities here. Now Pema, a US citizen, does not want to confuse himself by talking about how their parents moved from Tibet after its annexation by China to India as refugees, and then moved to Nepal and found their way to the US. So they find the Nepali question of where is your home very awkward. Nepalis from Nepal and in Nepal need to realise that the identity of being a Nepali also emerges from the language one speaks.

Many Buddhist centres have sprung up, and many people who have put faith in the life and work of Buddha have settled here. When I did the workshop Buddha As A Coach, it was intriguing to see a hall full of people keen to have a conversation on how to use the tools given by Buddha in their everyday lives. Unlike in Nepal, where the discourse around Buddha is about Buddha being born in Nepal and nothing to do with his teachings, here a big community has been built on taking the practice of Buddhist teachings into contemporary lives.

Mayor Suzanne Jones leads a nine-member City Council that has six women members including her. They consider themselves to be a service providing firm and are keen to make the city free of waste by 2025. The city keeps acquiring open spaces. The administration works closely with the City Council to ensure that there are many events around the year like the JLF that give a unique brand identity to the city. Currently, 60 percent of the city comprises of open spaces that neighbouring cities envy.

Perhaps one thing that Kathmandu can learn from this sister city is how to keep open spaces open, and not be tempted to lease out every inch of open space. With more resources from taxes and federal grants, the municipality must be able to acquire private spaces to increase open spaces. The low-hanging fruit will be building a Boulder Park with the help of the City of Boulder at the Teenkune open space close to the airport which everyone fears will be leased out to some party sympathiser, like many open spaces in the Kathmandu Valley.

http://kathmandupost.ekantipur.com/news/2018-09-25/boulder-musings.html

Haphazard Urbanisation

We have replicated the lack of planning, squalor and chaos of Kathmandu all over Nepal

In Butwal, as I looked out of my hotel room window, I saw water gushing in an erstwhile rivulet that now resembles an urban canal. Then I saw two drains from a newly built unfinished road bringing muck into this rivulet turned storm water drain. Immediately, I was reminded of the Tukucha stream in Kathmandu that now transports a good chunk of trash from homes and establishments, that pride in corporate social responsibility (CSR), into the Bagmati. I started to wonder if we have been replicating the mess of Kathmandu in other parts of Nepal.

Each Nepali city looks homogenous. The common visual produced being potholed roads, dangling wires, waterlogged streets, structures of all kinds, rebars jutting out of the roof, piles of garbage, horrible hoarding boards and, of course, the least caring Nepali who is just happy that land prices are going up.

Where is the problem

It is very clear that money is not the problem as there is billions in government money, development partner money and private money that is going into construction. The construction is done by private firms, and we cannot just blame the government. There are private firms and people outside government who are also involved in the design state and are responsible for monitoring. Therefore, it is neither lack of money nor the non-involvement of the private sector that is the problem. The problem perhaps lies in lack of imagination and execution skills.

For instance, whenever events are held in Nepal, be it a high profile meet like BIMSTEC or a social function like a wedding, the execution is based on the imagination of the worker who generally comes from across the border. People from India who work in tent houses and petty labour are the ones who actually execute the work and do the finishing. The results are limited to their imagination. Aesthetics is something South Asia, apart from Sri Lanka, has stopped thinking about. Further, everything is about making it look good for a few days when it is put up, it is never meant to last long-term.

The fact that our engineers, architects, project managers and people engaged in construction have been educated either in India or in Nepali institutions with an Indian curriculum has led to the absence of thinking about how it looks, how to plan, how to conserve heritage, how to bring about energy efficiency and how to do things for the long term. We need to understand that the Indian curriculum was taken from the British curriculum of the early 20th century where construction was all about creating ugly looking factories and towers that looked like boxes, and never about aesthetics. It was only in the latter half of the last century that people started fighting against polluting rivers and bad aesthetics. In New York, after the demolition of the beautiful Penn Station building to give way to an ugly box building, there was a movement to conserve heritage buildings.

When the imagination of the federal government—with folks who have been educated and exposed to the world—is limited, we cannot expect much from folks in the local government who have less exposure and imagination. Conversations with local leaders is limited about how they will use the municipal or government land to build a complex to have shops. Few of them talk about parking complexes. They are advised by supposed private sector folks who are clearly there on a land grab spree. It is about creating an opportunity of a construction contract that benefits both sides, never about making the city better or more functional. The big challenge of Kathmandu is found now in every city in Nepal.

The urban landscape is now filled with shops and eateries of all kinds. The icon of socialism in Bhrikuti Mandap, the shopping ghetto next to Singha Durbar promoted by political folks across party lines, is the icon to be replicated elsewhere. There is no minimum requirement for an eatery for hygiene or sanitation. No minimum requirement for shops. Highways are dotted with ugly structures of unregulated construction company hardware stores built at a fraction of the cost of the stocks they carry. These outlets doing billions of rupees worth of transactions each year have never bothered to invest anything in safety or the design of the structures. These are iconic structures of crony capitalism, and every Nepali drunk in a watering hole aspiring for quick money dreams of owning one of these. The conversations on what making money is all about can be interesting stories to hear and ponder upon.

What can be done

We have also seen that in the Kathmandu Valley, architects and project managers who have been trained in Europe and exposed to aesthetics, heritage conservation and energy management have produced some good pieces. Starting from architects like Weise in the 1960s to Götz Hagmuller and later on to Nepali architects like Kai Weise and Prabal Thapa, they have been able to create a balance between function and form. There is this beautiful building housing the Norwegian Embassy in Bakhundol, Lalitpur where folks from the government and the private sector go for receptions, but they never think about how we can replicate these structures in our own buildings that are coming up.

We really need to start thinking about simple regulations on structures. What should a shop or eatery have as minimum standards? The local government should be able to monitor them. There has to be better planning of urban infrastructure. Cables can go underground where new roads are built, and storm water drainage should be well planned to avoid water logging. Development partners who are keen to help Nepal should depart from making leaders travel to conferences and meetings. They should promote competition among local governments that will ensure efforts are made to improve aesthetics, functionality and other aspects of urbanisation. Things are yet to get out of hand; but if some major interventions are not done now, Nepal will become a congregation of urban ghettos 10 years later.

https://kathmandupost.ekantipur.com/news/2018-09-11/haphazard-urbanisation.html

Upholding shamelessness

When there’s no pride in competing with the rest of world, mediocrity reigns

When the BIMSTEC summit begins this week in Kathmandu, Nepal’s head should hang in shame. A $30 billion economy hosting an international convention that will be one of the shabbiest events the country has hosted. In 1988, when Nepal was just a $4 billion economy, the first SAARC Summit was held in a spruced up convention hall— and that was perhaps one of the best in South Asia, during which the visiting heads of state were put up in the newly built suites of the Soaltee Hotel. Three decades later, the fact that Nepal does not have a decent set of rooms or a hall to host the BIMSTEC Summit speaks volumes about how, in our myopia of power struggle and mediocre ambitions, we have squandered time and opportunities.

Inward looking behaviour

The Nepali socialism propagated by leaders across the spectrum, not limited to political parties, is about treating anything that is world class as capitalism. Therefore, we have made mediocrity our benchmark. Nepalis who have global ambitions leave Nepal and the majority of the people in the country are happy to ensure that they are the best among the worst. From the days of the kings, there has been no aspiration for taking the global centre stage. Never has a Nepali leader aspired for global attention, like at a TED talk, which, for example, the Bhutanese Prime Minister leveraged to get the world’s eye on Bhutan. Nepal’s former royals were happy showing off to sycophants how they were far superior to the commoners and that practice continues despite the change in our political system. Business leaders are content showing off to people who have the time to sit through days of boring meetings, but never aspire to be a speaker at the World Economic Forum—to get Nepal’s message to the world.

This inward-looking attitude never made us want to compete with the world. Last week in Rwanda, we took a tour of a new convention centre built at a cost of $400 million and another one recently completed for $25 million. The country wants to be a prime destination for the world and provide services and facilities that can be ranked as one of the best in the world. In Nepal, in the proposed new convention centre, we will make a better version of a party palace or improve Bhrikuti Mandap, the eyesore of the Valley.

Perhaps I wonder what we aspire for. I look at the way people conduct their social functions, at the makeshift structures that are created at home for social events. I have seen them in rich and poor household alike, across religion, caste, and ethnicity. The common thread is that there is a project mindset. Let’s get it done. It is about quantity and not quality. It is about having 5,000 guests but not ensuring the guests have decent parking or excellent food. It is about showing off to your own family members or friends or colleagues. It is not designed to provide experience.We miss out on small things. We do not care about the key things that make the experience special. We spend millions on flower arrangements and decorations but no attention is paid to the toilet. The state of toilets at all major hotels and party palaces are pathetic. But people do not complain because only people who are used to clean toilets expect clean toilets. So this vicious circle of mediocre facilities being accepted as mediocrity reigns continues.

People keep wondering why meditation centres have just walls or nothing. It perhaps reflects that the human mind likes good aesthetics. The imagery of South Asia is clutter and chaos that has been positively sold as vibrant and colourful but people need to ask themselves: does one get excited about seeing the miles of tangled wires or the collage of ugly hoarding boards? We also believe these advertising boards are a tool of visual pollution (that’s why they are pulled down ahead of the VIPs visit) but we have allowed it to mushroom to create one of the ugliest cityscapes in the world.

First things first

The fact that well-to-do people actually rent their window front—the source of light for their rooms—to have ugly advertisements put up speaks volume about what money means for people, and their perception on quality of life. We have tall glass buildings, but no one ever pays attention to cleaning the glasses. We throw trash in drains that are built for water to flow. In fact, the Nepali word for drain—dhal—has become synonymous with trash pile. You can’t expect a person’s mind to be clean and want top-notch facilities when they are used to living around dirty drains, dirty windows, looking at ugly hoarding boards.

Events like BIMSTEC brings about public outrage on last-minute patchwork, and gives us an opportunity to reflect upon why we are in a state that we all know is not acceptable. We have been talking about big things and big dreams—maybe it is time to ponder upon the small ones.

https://kathmandupost.ekantipur.com/news/2018-08-28/upholding-shamelessness.html

Global Citizen

Nepalis need to tell the world that things have changed

Aug 14, 2018-Last week, former United Nations Assistant Secretary General Kul Chandra Gautam released his memoir Global Citizen From Gulmi, in which  the former diplomat recounts his  journey from the hills of Nepal to the halls of United Nations. Here is a story of a Nepali who walked for 12 days to reach Benaras to attend classes or spent more than a week to get to Kathmandu, before attending the prestigious Dartmouth and Princeton universities in the United States. In one of the chapters, he recalls how it took him two years to get a passport despite presenting his scholarship documents—it’s a window into the Panchayat days, during which isolation ran deep and privileges were limited to a few. Gautam’s incredible journey has inspired many of us. Now 70, he continues to make multiple trips each month globe-trotting and making his mark as a board member in prestigious international organisations.

No accountability

Without doubt, there are many challenges in the country, but for Nepalis, the best excuse has been to blame the government for everything and not own up to  their own responsibilities. As Gautam argues, perhaps, Nepalis from an entire generation went from being a child to a being an adult with family responsibilities having married at a lower age. Young people in many other countries do not get an opportunity to understand their own likes, dislikes, and what they would like to do. Absence of reading habits, disinterest in cultural heritage, and religious conservatism pushed people to simply do what others are doing.

There was also no accountability at the top. Members of the royal family graduated—often as the top student—from the university whose chancellor was the then king himself. Now in a democratic set up with Prime Ministers holding the position, one may not have to question the qualification of a university chancellor. Now more than ever, transparency is imperative in our system, because until now, no one has had to work hard because they weren’t held accountable for their actions.

With the focus on asset accumulation, and wealth being the primary barometer of judging a person in the society, it was never considered important to question corruption. Wealth accumulation became the ultimate aim and a few who could not do so became activists and started challenging the system—but without transparency in the work they do. Therefore, with guilt we started pushing inward looking socialism agenda to find all excuses of not integrating into the global world by calling them propagators of capitalism. This mindset has isolated Nepal from the world, forcing Nepalis to leave the country in search of economic empowerment and career choices that are free from the myopia of those in power at home.

Thinking global is a culture; it has nothing to do with being a Nepali in Nepal or living elsewhere. There are hundreds of thousands  of Nepalis across the world today who are proud to be Nepalis, but have decided to settle down in foreign countries or take up another citizenship. These Nepalis connect with Nepal at a different level. They understand the richness of our cuisine. They promote Nepal as one of the most beautiful destinations in the world to visit, and recommend those to the outsiders at every opportunity they get. They want their children to come to Nepal and learn about its culture and heritage. These are the global citizens from Nepal, who, for opportunities and ambition, marched out into the world, but continued to carry the sense of pride for having come from Nepal—or for being a Nepali.

As a country, we don’t do enough to teach our kids and students what a great country they come from. Sure there are problems, but the discourse, at some point, has to shift from what can be done instead of what has not been done yet.

Show gratitude

Nepalis need to tell the world that things have changed. During Gautam’s book launch last week, Valerie Julliand, UN Resident Co-ordinator said that in the years since Gautam left his home, all the deficiencies through the Sustainable Development Goals lenses in the village Gautam hailed from has been met—there is water, electricity, roads, schools, health centres etc. There has been significant transformation, but we’re not willing to talk about it.

Finally, there has to be sense of gratitude. It was admirable to hear Gautam thank the people who mattered most in his journey. We often tend to forget to thank the people in our lives. Perhaps, the next recalibration of Nepal’s future will depend on how quickly we stop taking things for granted . The successful global citizens never forget where they came from, and who helped them get there.

http://kathmandupost.ekantipur.com/news/2018-08-14/global-citizens.html

Transformative Reforms

The Nepali people have to move from being transactional to transformative

Jul 31, 2018-Speaking at the Neftalk organised by the Nepal Economic Forum last week, US Ambassador Alaina B Teplitz reflected upon her tenure and just had one big message for Nepal. Nepal needs to move to transformative reforms. After visiting more than 40 districts and staying engaged through social media, opeds and in person, she could garner the understanding about the sort of change Nepal needs to embark upon. This kept me thinking. I have tried to put some of my earlier prescriptions and the current context into three distinct areas.

Thinking big

Last week, we realised that some our remittances were stuck at our local bank. We were told by the bank that apparently as per central bank instructions, all foreign exchange income was to be declared. With many assignments outside Nepal, we do have foreign exchange earnings with contracts under the purview of Nepal Rastra Bank. So why multiple declarations and at multiple times? If we cannot handle basic commercial remittances, how can we think of managing the billions in inflow of investments that is required to make the Nepali growth story that has been sold by this current government happen?

When government folks, or now even folks in the private sector learn of numbers in contracts, their first reaction is: What is the benefit I am getting? Headlines in newspapers and social media channels still get filled with news of ATM machines and bank branches being opened. We still make a donor’s $1 million dollar programme a big deal with all the ministry folks spending hours in its inauguration or presentation.

The recalibration of thinking big is a big exercise; we need to start. At a recent programme that also had government folks, my question to them was this: If we were to give them $5,000 that they had to spend in an hour in a store of their choice in Nepal by buying just 10 items, will they be able to do that? Nepal is now a $30 billion formal economy and another one and half times informal, making it a $75 billion economy. We need to be able to think like a $75 billion economy with the government spending of $7-8 billion dollars each year.

In Nepal, planning is alien in our day-to-day life. We do not plan what meal we want to have in the evening and rush to make last minute purchases before cooking. We do not know how much we are going to spend in a restaurant when we go out for a meal, and run out of cash many times. When we go to an auto expo, we have no budget thoughts for what is the price point of the car one wants to buy; therefore, we land up buying a car for which you cannot later afford the equated monthly instalments. We cannot plan a journey for a meeting despite Google maps being there, we call the office for directions. We cannot plan holidays for our children and make last minute decisions. When we budget and plan something for a house we are building or a wedding that is to happen, everyone knows the end result will be nothing one had thought of in the beginning.

So how can a country where its citizens do not plan or don’t believe in planning have a plan for its government? We have not been able to use the money that is available due to poor planning. The more than

$4 billion committed after the earthquake never even got requested. International aid spending in some years has been a dismal 30 percent. As Pierre Jacquet, president of Global Development Nepal, who was in Kathmandu last week to speak at an event on aid effectiveness said, effectiveness of aid is always linked to the capacity of the recipient country. More aid has never led to higher economic growth. If a country’s development strategy is not right, aid will flow to the wrong places. Very simple but profound statements.

After six months in power, the current government is yet to provide us with a picture of what will be the key contours of the Nepali economy when they go to elections in 2022. In some countries where I have done planning exercises with legislators, we have got them to think about their re-election speeches after five years. That kind of working backwards is used to build plans. Therefore, every Nepali elected leader needs to think what their re-election speech is going to be like, and what accomplishments they are going to be able to sell to their voters.

Mark on the mirror

Many a time when I am giving a talk, I use the analogy of a guy like me with no hair giving lectures on how to prevent hair loss. In Nepal, we see this happening everyday. People who talk about corrupt leaders are the ones inviting them to their social functions. People who talk about keeping the city clean and lecture on it maintain dirty homes with filthy rooms. People who lecture on gender empowerment have never washed dishes in their lives. People who complain about leaders and others wanting privileges are the ones who want to be in the first row at programmes and complain if they do not get acknowledged in speeches. As Mughal-era poet Ghalib said, we continue to try to wipe the mark on the mirror each day when the mark is actually on one’s face.

Nepal’s future transformation will be dependent on whether we can make the big transformation of just being able to walk the talk and question each aspect of our everyday life. As I am writing this piece in a hotel in Pokhara, I have been witnessing the movement of a minister or two with hundreds of people that are moving with them creating a commotion every time they come and leave. I am just pondering that until the minister realises that his popularity is not judged by the number of his hangers-on, or the people swarming around him realise that hard work and not being within visual distance of a minister will grant success, the big transformation will be difficult. Hope someone will lead the way!

http://kathmandupost.ekantipur.com/news/2018-07-31/transformative-reforms.html

Messy Nepal

There is confusion, chaos and frustration amid a period of supposedly stable politics

Jul 17, 2018-As the fiscal year ends, people are left with frustration over how money has been poured into sand in the last month. Billons of rupees went into buying goods and services from folks who have either paid their way to the politicians or are controlled by the politicians themselves. This is called Asare Bikas or development in the month of Asar, the last month of the Nepali fiscal year. Nepal, like being the only time zone in the world that has a 45-minute time difference which is a nightmare for fixing global conference calls, takes the cake for being the only country in the world where the fiscal year does not sync with any global calendar. Read more