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Nepal has long struggled after the Covid-19 pandemic to revive its economy. Every economist in Nepal has been involved in answering one question that is “Is Nepal going into recession?”. Formally, recession is a condition where there is a significant decline in economic activities spread across the economy, lasting more than a few months, normally visible in production, employment, and real income. Economists in Nepal have been dealing with this question with ease but are not even concerned about the microeconomic position of the country. 

The Nepal Rastra Bank has been publishing its macroeconomic analysis, but to date, Nepal lacks a strong microeconomic analysis. Microeconomics is social science, a fundamental department of economics that studies the implications of incentives and decisions and how that affects the utilization and distribution of resources on an individual level.

Nepal has adopted a free-market economy where there is no government intervention. The economic condition of Nepal has been solely reliant on the service market, product market, and remittances. The service market contributes about 55.36 percent of the GDP of Nepal. But only about 11 percent of Nepal’s GDP is dependent upon the production market. Still, agriculture is the top occupation in Nepal about 65.7 percent of the population are farmers. Though these are just numbering; the economy of Nepal is dependent upon the average population and their purchasing habits and behaviors, and Nepal still does not have these microeconomic analyses. 

Nepal has a grand loophole in micro-level economics, for instance, there is no analysis done in Nepal that shows the purchasing habits of people. It is people who set the standards of demand and supply in every free market economy. Without knowing individual habits and how they spend their hard on money, the market analysis is reluctant to a failure.  Nepal’s micro landscape indeed faces significant challenges, practically in understanding consumer behavior and purchasing habits. Without a clear understanding of how people allocate resources, and the factors impacting the spending decisions, economic policies will always go into a static failure. Businesses established in Nepal have more microdata of consumers than the authoritative body in Nepal.

Nepal lacks a systemic and comprehensive data collection mechanism at a microeconomic level. No government mechanism dwells with mechanisms to track consumer spending patterns, income distribution, or the saving habits of people. This absence of data makes Nepal’s economy unpredictable, and the market movement is fluctuant. The prominent part of Nepal’s economy is informal, with high remittance flow, and the hundi system in Nepal has led to a rapid flow of cash in Nepal making the purchasing power of people high. Many transactions occur outside the formal banking system, and small businesses have no financial records. Nepal’s market is driven by luxury goods from the foreign market making Nepal lose forex. These two parts have made the economic situation of Nepal arduous, which has not been studied by the government till now officially.

Nepal’s market is trendy, it is driven by foreign-influenced thoughts from social media. Nepal itself being a culturally diverse country tends to have different consumption behaviors geographically. There is no localized data so it is difficult to understand these variations and tailor economic policies or business strategies accordingly for economic growth. 

To allocate and address this problem economists in Nepal must now focus more on the micro-economic analysis than the macro part of the economy. The government must also collaborate with private sector stakeholders and must invest in the formation of a strong data collection system. They must focus on providing household surveys, consumer spending trackers, and digital payment analytics, to better understand purchasing habits.  Policies should be made targeting the formalization of the economy, the government must track and band the hundi system. Which is leading to high purchasing power and disbalancing the demand and supply system of the economy. 

Promoting research institutions that focus on microeconomic analysis, utilizing technology like Artificial intelligence to monitor real-time spending patterns through digital payment systems, and conducting cultural and regional studies to understand the unique economic behaviors of diverse communities are essential steps. These measures would provide valuable insights, enabling the development of more effective and targeted economic policies, and ultimately fostering and making the economy of Nepal predictable and robust. 

The Newar community, indigenous to the Kathmandu Valley, is known for their rich culture, artistic heritage, and deep-rooted traditions. Among the many aspects of Newari or Newa culture, jewelry holds a special place. Newari jewelry is more than mere ornamentation; it reflects history, craftsmanship, spirituality, and social identity.

Adorned by Newari women during festivals, ceremonies, and daily life, these intricate pieces of jewelry carry symbolic meanings that connect them to their ancestors and gods. Crafted in gold, silver, and precious stones, each piece tells a story of tradition, skill, and devotion. Beyond jewelry, Newari culture is an amalgamation of ancient customs, unique festivals, traditional attire, and architectural marvels that have stood the test of time.

This article delves into the beauty of Newari jewelry and explores the essence of Newari culture, providing insight into the traditions that define this remarkable community.

Legacy of Newari jewelry

Newari jewelry has a history dating back centuries, influenced by Hindu and Buddhist traditions. These ornaments are often handcrafted by skilled artisans, using age-old techniques passed down through generations. Newari jewelry is diverse, with different pieces worn for separate occasions. Some of the most popular types of jewelry include:

• Kantha

Kantha is a thick gold necklace, often designed with intricate patterns. It is worn by married Newari women, symbolizing prosperity, and social status.

• Tayo

Tayo is one of the most iconic pieces of Newari jewelry. This large, crescent-shaped pendant, often made of gold, features intricate designs, and is associated with wealth and good fortune. It is commonly worn by Newari women during festivals and weddings.

• Makashi

Makashi, or gold headpieces, are worn by Newari brides and young girls during special ceremonies. These ornate head ornaments enhance beauty while also signifying purity and cultural pride.

• Pata

Pata is a type of wide, gold choker necklace often worn during significant occasions. It is crafted with fine detailing, showcasing the craftsmanship of Newari artisans.

• Naugedi

Naugedi consists of multiple gold beads strung together into a necklace. It is a commonly worn ornament by Newari women, symbolizing elegance, and prosperity.

• Har

Har is a long necklace made of gold and beads, often worn with traditional attire. This piece adds to the graceful and royal appearance of Newari women.

• Bulaki

Bulaki is a small gold ornament worn on the nose. It is especially significant for elderly Newari women and carries religious importance.

• Tilhari

Tilhari is a traditional necklace worn by married women. It consists of a long string of red beads with gold cylindrical pendants, representing marital status and longevity.

Symbolism and spiritual significance

Newari jewelry is not just about adornment; each piece has a cultural and spiritual significance. Many ornaments are inspired by Hindu and Buddhist beliefs, incorporating motifs of deities, lotus flowers, and other sacred symbols. For example, Tayo represents good fortune and is believed to bring protection and blessings from the gods. Similarly, gold jewelry is often considered auspicious and plays a vital role in marriage ceremonies and religious rituals.

Artisans behind the craft

The creation of Newari jewelry is a meticulous process conducted by skilled artisans, primarily from the Shakya and Sunar castes. These craftsmen use traditional hand tools and techniques to mold gold and silver into exquisite designs. Many families have been in the jewelry-making profession for generations, preserving the craftsmanship and knowledge of this art.

Despite modern influences, the demand for handmade Newari jewelry remains high, both within Nepal and internationally. Newari jewelers continue to practice their craft, blending tradition with contemporary aesthetics to appeal to a wider audience.

Essence of Newari culture

Newari culture is one of the most vibrant and well-preserved cultures in Nepal. It encompasses unique traditions, cuisine, festivals, language, and architecture, making it a significant part of Nepal’s heritage.

• Language and literature

The Newars have their own language, Nepal Bhasa (Newar language), which has a rich literary history. It has been used in inscriptions, religious texts, and folk tales for centuries. Newari manuscripts, written in scripts such as Ranjana and Prachalit, highlight the intellectual depth of this community.

• Traditional attire

Newari clothing reflects the beauty and grace of their culture. Women traditionally wear a Haku Patasi, a black sari with a red border, accompanied by a shawl. During special occasions, they adorn themselves with elaborate jewelry. Men wear Daura Suruwal along with a traditional Newari cap, known as Topy.

Bridal attire in Newari culture is particularly elaborate, featuring luxurious fabrics, gold jewelry, and intricate headpieces. The combination of attire and ornaments creates a majestic look for Newari brides.

Newari culture is a living testament to Nepal’s rich heritage, blending spirituality, tradition, and artistic excellence. From vibrant festivals and intricate architecture to exquisite jewelry and flavorful cuisine, every aspect of Newari life reflects a deep-rooted connection to history and community. Despite modernization, the Newar people continue to preserve their unique customs, ensuring that their cultural identity remains strong for future generations. As one of the most significant cultural groups in Nepal, the Newars not only contribute to the nation’s historical legacy but also serve as a symbol of resilience, creativity, and devotion.

Municipalities in Nepal stand at a crossroads, facing complex challenges posed by the rapid urbanization the country is witnessing. New towns have emerged to accommodate the nation’s growing urban population while existing ones have expanded rapidly over the last decades. The rapid growth of towns has placed municipalities at the forefront of managing the country’s escalating urbanization challenges, the mismanagement of which can severely impact urban well-being. While the pressure on local governments to address the issues before them is mounting, they remain poorly financed and functionally restrained, risking the perils of haphazard urbanization, the consequences of which bear serious repercussions. 

Local governments in Nepal were entrusted with key responsibilities after the adoption of federalism in 2015, and they now have local health, education, agriculture and several other functions under their remit. They are entitled to receive federal grants, provincial budget transfers and shares from tax collections to support their finances, and can even borrow if required. Uniquely, the country’s municipalities are assuming responsibilities at a time when local governments globally face mounting civic challenges amplified by climate change. This makes Nepal’s federalization process both crucial and delicate, but the agenda remains politically deprioritized and institutionally stalled, and several provisions surrounding federalism fail to be implemented. 

While the dynamics of federalism in the country are in a state of flux, an argument that makes the case for fast-tracking the power transfer to local governments is that delaying this process has high costs. Research shows that countries urgently need to increase municipal investments to sustain civic well-being, and Nepal is no exception. Municipalities need to invest now in establishing planned colonies to curb informal settlements that cause urban congestion. They need to invest now in disaster management measures that wreak havoc in cities every monsoon. They need to commit resources now to urban mobility, pollution management and green infrastructure without which livability in towns will remain compromised and deteriorate over time. These investments need to be made at a speed that matches the rapid urbanization Nepal is witnessing. The World Bank reports that Nepal is the fastest urbanizing country in South Asia, giving the Himalayan nation only a small window to make these time-sensitive investments that will profoundly dictate the quality of life in the country.

Many cities in Nepal are already facing the fallout of failing to act on time, and Kathmandu stands as a prime example. The capital’s congested urban sprawl is the result of poor governance during the 2000s when rapid urbanization overwhelmed the government’s capacity to manage the city’s haphazard growth. Kathmandu’s inadequate road infrastructure, lack of open spaces and inefficient transport networks are direct consequences of years of flawed planning and neglect of municipal priorities. Besides the government’s poor policy foresight, this outcome exposes the general underestimation of municipalities as important actors in driving development, gravely ignoring their vital role in enhancing citizens’ quality of life. Birgunj, Biratnagar and Bhairahwa are other major cities that have struggled to manage their rapid urbanization and now face pressing urban issues like congestion, poor mobility and limited open spaces for recreation. 

Despite the urgency of interventions, local governments are able to do little to address the issues before them. In addition to the federal government's reluctance to devolve key functions, municipalities face critical financing challenges that constrain their ability to act. The budgets of most local governments are already under strain from the extensive responsibilities they manage with limited resources, leaving little room for investment in high-cost urgent interventions. Most local units have limited self-generated revenue and lack the capacity to improve tax administration or diversify income sources. The Intergovernmental Fiscal Arrangement Act 2074, the legislation that outlines financial relationships between three levels of government, allows sub-national governments to secure domestic loans, but municipalities have failed to borrow due to their low creditworthiness. 

International aid and urban climate finance that support municipal investments are in their early stages, and accessing these funds is challenging for Nepal where data on municipality-level financing needs are not robust. Internally, the municipal financing environment isn’t favorable either, with the Town Development Fund being the only specialized municipal lender. Despite receiving support from global development partners, the fund is able to cater to only a fraction of local governments and mostly engages in financing small to medium-scale projects. This combination of limited resources and a nascent borrowing environment creates a substantial funding shortfall for Nepal’s municipalities, leaving them helpless to act. 

It is concerning to see the level of government closest to the citizens, and bearing prime functional responsibilities, face challenges of such magnitude. Even more concerning is the lack of recognition of local governments as powerful entities capable of improving lives at scale through the powers vested in them. While the role of the federal and provincial governments is important for driving national growth, municipalities overwhelmingly fulfill the more immediate needs of daily life that define our day-to-day well-being. Hence, empowering municipalities with resources to invest in pressing municipal needs is imperative. 

The federal government, media, policy professionals, and most importantly, the public, need to view municipalities as important stakeholders whose performance greatly shapes the quality of lives we live. It is of critical importance that local governments are given their due means to perform their functions and make the interventions that are the need of the hour. Failing to do so will leave our cities vulnerable and depress the already poor quality of urban life in many parts of the country. Though reforms are underway, their pace is below the mark and stakeholders’ efforts lack the required enthusiasm. Municipalities are in a race against time, and we must act promptly to use the window of opportunity before the time runs out. 

The author is research fellow at the Nepal Economic Forum

If anyone asked me, even in a dream, what my favorite spice is, my answer would always be fenugreek—methi dana, the methi seed. Perhaps it’s because it was my mother’s favorite spice. She never claimed methi as her favorite spice, but she used it to temper almost every curry, pickle, and achar she prepared. She would add methi when soaking rice for sel roti, Nepal’s favorite snack, shared by all 128 communities across the country.

One particular memory stands out: She used to prepare a summer drink called ‘misri kada.’ She soaked methi seeds overnight with rock sugar (misri) and strained the mixture to create a refreshing morning drink. This simple concoction helped us stay cool during the scorching summer heat. Methi’s magic was also evident in the western parts of Nepal, where dishes like the famous ‘chukani’ were always tempered with methi seeds, just like Kathmandu Valley’s renowned ‘choila’.

As a 44-year-old Nepal-born British chef, my current aim is to distinguish Nepali cuisine from other South Asian cuisines and establish its unique identity on the global food map. I believe methi will play a central role in this endeavor. While Indian and other South Asian kitchens often use cumin or mustard seeds for tempering, Nepali kitchens rely on methi dana. Did you know that the dominant flavor in India’s best butter chicken and the UK’s favorite chicken tikka masala comes from methi leaves? 

Methi’s origins can be traced back over 4,000 years to the fertile crescent region, where it was first cultivated in ancient Mesopotamia. Historical texts and archaeological evidence suggest that the Egyptians used methi as part of their embalming processes and as a flavoring agent in their bread. Its journey from the Middle East to the Indian subcontinent was facilitated by ancient trade routes. By the time methi reached Indian shores, it had already become integral to Ayurvedic medicine and Indian cuisine.

In India, the seeds (methi dana) and leaves (fresh methi or kasuri methi) are used in a variety of dishes. Methi seeds are small, golden-brown, and hard, with a slightly bitter taste that mellows and deepens when roasted or cooked. The leaves, on the other hand, are fresh, green, and aromatic, lending a unique flavor to curries, breads, and stir-fries.

One of the reasons methi is so revered in Indian cuisine is its versatility. Methi seeds are a common component of spice blends such as panch phoron and sambar powder. They add a distinct bitterness that balances the richness of curries. Fresh methi leaves are kneaded into dough to make methi parathas, theplas, and naans. The leaves impart an earthy aroma and flavor that make these breads unique. Methi seeds are often added to Indian pickles, where their bitterness cuts through the tangy, spicy, and oily flavors. Perhaps one of the most interesting uses of methi is its addition to dosa batter, a South Indian staple made from fermented rice and lentils.

Methi’s unique ability to enhance flavor can be attributed to its complex chemical composition. The seeds contain compounds such as sotolone, which gives methi its characteristic maple syrup-like aroma, and trigonelline, which contributes to its bitterness. When methi seeds are roasted, these compounds undergo chemical transformations that release nutty, caramel-like notes.

In culinary science, methi acts as a flavor enhancer because it provides balance and depth to dishes. Bitterness, when used in moderation, can counteract excessive sweetness or acidity in a dish, creating a harmonious flavor profile. This is why methi is often paired with rich and spicy foods—its bitterness provides a necessary contrast that enhances the overall eating experience.

The addition of methi seeds to dosa batter is a centuries-old practice rooted in both science and tradition. Methi seeds contain galactomannan, a natural gum that aids in fermentation. When soaked and ground with rice and lentils, it promotes the growth of beneficial bacteria, leading to a light, airy batter that yields crispy dosas. The mucilaginous (slimy) property of methi seeds improves the batter’s viscosity, ensuring even spreading on the griddle and resulting in dosas with the perfect texture. The subtle bitterness of methi offsets the sourness of the fermented batter, creating a nuanced flavor profile that elevates the dosa’s taste.

Methi’s journey doesn’t end in India. It continues to be a cornerstone of Nepali cuisine. In Nepal, methi seeds are known as ‘methi dana,’ and they hold a special place in traditional cooking and rituals. Fresh methi leaves, often referred to as ‘saag,’ are widely consumed in curries and stir-fries.

One of the most iconic uses of methi seeds in Nepal is in the preparation of ‘achaar’ (pickle). Methi is dry-roasted and ground into a powder, which is then mixed with mustard oil, chili, and other spices to create tangy and spicy pickles that are a staple in every Nepali household.

Methi is also an essential ingredient in ‘gundruk ko jhol,’ a traditional soup made from fermented leafy greens. The bitterness of methi seeds complements the sourness of the gundruk, creating a dish that is as nutritious as it is flavorful.

What sets Nepal apart in its use of methi is its emphasis on the ingredient’s medicinal properties. In many rural areas, methi seeds are chewed raw or soaked overnight in water to treat digestive issues, joint pain, and hormonal imbalances. The traditional belief that food is medicine is deeply ingrained in Nepali culture, and methi epitomizes this philosophy.

Furthermore, methi is a key ingredient in ‘sel roti,’ a traditional Nepali rice flour doughnut. A pinch of methi powder is added to the batter to enhance the flavor and balance the sweetness of this festive treat.

Methi’s journey from ancient Mesopotamia to South Asia has been marked by its unparalleled ability to enhance flavor, promote health, and adapt to a variety of culinary traditions. By celebrating this humble yet extraordinary spice, we not only enrich our meals but also honor the culinary wisdom of our ancestors.

The author is a London-based R&D chef