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A vital form of diplomacy, economic diplomacy is the full spectrum of economic tools of any country to safeguard its national interest. Broadly, it executes ‘rules for economic relations between states’ at the international level by employing economic resources, either as rewards or sanctions, in pursuit of a particular foreign policy objective. 

Different agencies of government play a vital role in international economic diplomacy apart from non-state actors such as non-government organizations (NGOs), businesses and investors. 

The phrase economic diplomacy is a combination of economic and diplomacy, therefore, the foundation of economic diplomacy is taken as economic theories and diplopic political theories (Pokharel 2014). Of late, economic diplomacy has become a prominent activity in the diplomacy of nation states and international organizations. Take India, for our neighbor India, which has been using economic diplomacy as a core component of its foreign policy.

Economic diplomacy has become the primary means of penetrating the world market, where economic aspirations like foreign assistance, foreign employment, foreign investment (direct or porthole) and foreign trade and tourism are pursued through diplomatic skills. 

Economic diplomacy is also an indispensable instrument for securing Nepal’s foreign policy objectives and economic development. At present, the government engages in economic diplomacy/development at three levels—bilateral, regional and multilateral. Nepal needs to focus on facilitating trade and business investment by promoting domestic tourist destinations through high-tech means like the use of new science and technology tools.

A least developed, sovereign and independent country, Nepal is lagging behind in the race for development. If used skillfully, foreign policy (with main thrust on economic diplomacy) can speed up the national development process as conventional diplomacy has failed to deliver, by and large. At present, we are facing a volatile economy and unstable political situation, which demands using diplomacy as eyes and ears in the national interest. 

Our current economic indicators have laid bare several flaws in capital endowment, slacking foreign trade, diminishing exports and increasing imports and mostly ineffective implementation of policies.

According to World Bank (2019), Nepal’s export of goods and services was 8.93 percent of GDP while import of goods and services was 42.38 percent in 2019. In such a situation, the government needs to promote exports by exploring potential actors and factors. This can be achieved by mobilizing Nepali diaspora, encouraging private sector investors and prioritizing different trade and export promotion agencies. 

Notably, we have failed to welcome FDI due to an unstable political situation, illiberal policies and investor insecurity. These issues need to be addressed as soon as possible. As we know, components of economic diplomacy have a greater impact and crucial role in strengthening the national economy. 

For achieving desired economic growth, Nepal should conduct its diplomacy by expanding its missions to attract investments. In addition, Nepal needs to introduce investment-friendly Acts and other legal provisions for the creation of a favorable environment for foreign investors and donors.  

In this globalized, liberalized and competitive global market, Nepal needs to be very skillful to pursue effective diplomacy with other nations. It is obvious that none of the states in this globalized world can escape from economic interdependence, so economic diplomacy has become the unavoidable reality of the 21st century in international relations. Nepal should explore opportunities and challenges, and prioritize the issues on execution procedure.

But a number of experts point out that Nepal has not accorded due priority to economic diplomacy.  

Bishwambher Pyakuryal, former ambassador and economist, says economic diplomacy is highly affected by a country’s foreign policy. According to him, the government of Nepal has not taken this form of diplomacy as seriously as it should. As for the way out, he says structural changes are necessary in our diplomacy. 

Purushottam Ojha, a former commerce secretary, says, “Economic diplomacy is vital for promoting national economic interests like trade, commerce, investment, tourism, migration, aid and investment.” But our economic diplomacy and diplomats have failed to protect economic interests.

FDI promotion should focus on enhancing economic development. In line with this, diplomatic missions need to focus on attracting more assistance in Nepal’s priority areas like infrastructure development, employment generation, capacity building and so on. Economic diplomacy should be able to create an environment that is welcoming and friendly for businesses. 

Nepal can learn and adopt different forms of economic diplomacy from different nations. For instance, Switzerland’s strong and effective economic diplomacy has enabled its agency based in Geneva to conduct nearly two-thirds of the United Nations’ business activities. Japan’s foreign policy is aimed at strengthening economic diplomacy as a means of driving economic growth, which is very supportive of overseas business expansion and developing collaboration with diplomatic missions. 

On the contrary, we still struggle in trade diplomacy with neighboring countries, leading to a yawning trade deficit each year. Diplomats must be mobilized and foreign missions expanded to address such issues. 

Coordinated diplomacy between several ministries, including the foreign ministry, as well as private and civil societies is crucial, with the main focus on economic diplomacy. 

Policymakers need to find ways to attract foreign investment and increase export strategy and other forms of economically beneficial exchanges where Nepal enjoys a comparative advantage. Our diplomats and overseas missions must acquire a new global strategy and new skills to make diplomacy effective. Improving managerial capacity, acquiring new knowledge and negotiation skills are a prerequisite for economic diplomacy. 

Economic diplomacy involves using diplomatic skills with economic tools for advancing and achieving the country’s economic and strategic goals. A serious lack of policy coordination among stakeholders for pursuing economic diplomacy has affected the conduct of diplomacy.

Against this backdrop, every concerned agency, including the Foreign Ministry and other government entities like the Ministry of Finance, National Planning Commission, Ministry of Commerce and Supplies, Ministry of Tourism, and Trade Promotion Center should be equally involved in promoting economic diplomacy on a broad level.

Waste management in Kathmandu Valley is a big problem. It generates 1,200 metric tonnes of solid waste everyday, where only a few gets recycled. More than 700 metric tonnes of solid waste end up at Banchare Danda landfill site, with around 300 garbage trucks dumping waste there on a daily basis. 

The purpose of the landfill, initially, was for the disposal of solid waste that can neither be recycled. That amounts to around 30 percent of the total waste the valley generates. But sadly, that’s not the case. From degradable to non-degradable waste, everything is disposed of at Banchare Danda landfill site.

There are municipalities like Waling (Syangja) and Tilottama (Rupandehi) that have done a commendable job in managing their solid waste. Their waste management sites do not even emit foul smells. Dhundi Raj Pathak, solid waste management expert, says that the same kind of management can be replicated in the Kathmandu Metropolitan City (KMC). “All we need to do is replicate the same mechanism on a larger scale, and the first place to start would be to ask every household to segregate their waste into degradables and non-biodegradables.” 

Around two years back, KMC had asked Kathmandu’s households to segregate their waste before dumping it in a garbage truck. A fine of Rs 500 was also imposed. Pathak says the initiation was good, but the problem was on how the city workers handled the segregated waste. Everything got dumped into the same garbage truck and ended up in landfills despite segregation. Eventually, people stopped segregating their household waste. 

What Kathmandu needs right now is a proper plan for the disposal of segregated waste, that can be brought into implementation as quickly as possible. For that, the city authority needs to convince every household to segregate their waste. 

KMC Spokesperson Nabin Manandhar says they are already on it. “We will be running awareness campaigns and training in every ward to segregate and collect waste.” 

This time, he adds, the city will not be imposing fines. 

“The plan is to achieve zero waste within Kathmandu,” says Manandhar. “We have completed a one year study on managing solid waste, and we are planning to create a model where every waste material is utilized.” 

There is a plan to convert organic waste into manure and biogas, and sell the dry waste to recyclers. Furthermore, the city is also planning to convert some of the dry waste into coal that can be used in brick and cement factories. To manage biodegradable waste, the city is planning to set up a plant at its garbage collection center in Teku. The facility will convert organic waste into fertilizers and biogas. 

“We can’t say when this plan will be operational, but we have taken the starting steps,” says Manandhar. 

Waste collected from Kathmandu Valley, Kakani, and Banepa end up at Banchare Danda landfill site. Rabin Man Shrestha, chief of KMC’s Environment Management Department, says if each municipality, including the ones in Kathmandu, takes responsibility for the waste they produce, it would be easier for the city to manage the waste. 

“It’s always the Kathmandu Metropolitan City that gets blamed for the situation at Sisdol and Banchare Danda, when there are other municipalities contributing to the problem,” he says. 

He claims 55 percent of the total waste generated in the city will be managed once the plan to convert organic wastes into fertilizer and biogas is realized.  

There are no plans to manage non-degradable waste though. In 2013, the KMC  had invited a tender for the management of non-degradable waste. No one applied. Over the years, the KMC officials have also taken several foreign cities to better understand how they are managing their solid waste. They gathered a lot of knowledge about waste management, but the city never took the step to implement that knowledge.  

“The plans are limited to the paper. For things to progress, the tender process that the city activated a decade ago must conclude,” says Pathak, the solid waste management expert. “Only then, the city could start by setting up a material recovery facility to segregate non-degradable waste before selling it to independent buyers or recyclers.” 

If the plans were to be put in action immediately, Pathak believes that the facilities needed for solid waste management can be up and running in approximately three years. 

“We don’t need any pilot programs to test, because we  have had multiple tests already,” he says.

In a recent incident of flooding at Samakhushi, Kathmandu, a 13-year-old child got swept away. This happened because of unplanned urbanization in Kathmandu. Rampant encroachment upon the city’s river banks has increased flood risks.

Old and narrow sewer systems are also to blame as they cannot cater to a burgeoning population resulting from urbanization. Stormwater gushing into these systems accentuates flooding. With rivers constrained because of urbanization, where will the discharge go?

The other problem is climate change. The amount of rainfall that we should be expecting in a year occurs in a space of four months nowadays. Since the city doesn’t have enough natural drainage for the rainwater, rains ultimately end up flooding the streets, and rivers that are already narrow. To avoid incidents like the recent one, the first thing to do would be to let rivers take their natural course. Internationally, many cities have started doing that.

The author is associate professor of urban planning at Pulchowk Campus and general secretary of Regional and Urban Planners’ Society of Nepal

The ruling Nepali Congress has decided to hold its Mahasamiti meeting in November to undertake responsibilities assigned to it by the party’s policy convention as decided in the 14th general convention.

The Mahasamiti is the party’s apex body, which dwells on contemporary political issues. The party has also decided to hold a nationwide campaign between Aug 5 and Aug 14 and in the community from Aug 27 to Sept 10 for strengthening the party’s organizational base.

The week-long meeting of the Central Working Committee (CWC), which took place after a gap of one year, also made its position on a host of national agendas, but failed to address key intra-party issues such as holding a policy convention, forming the party’s department and addressing concerns related to the party’s sister organizations.  Regarding the current corruption scandals, the party has said that good governance is its top priority.

“The Nepali Congress has and will always be committed to making the country free from corruption by punishing anyone who commits corruption according to the law,” the party has said.

The party has also commended the government for the steps taken to investigate and prosecute fake Bhutanese refugee scam and Lalita Niwas land grab case. Several high level politicians, including senior NC leader Bal Krishna Khand, and business persons have been implicated in both scandals. 

The NC has said that its policy on corruption is that no innocent should be punished or guilty be spared. During the CWC meeting, however, many CWC members of the party had defended Khand and protested the call raised by the general secretary duo, Gagan Kumar Thapa and Bishwa Prakash Sharma, to suspend him. 

Through its CWC meeting, the Congress party has also recommended that the government ensure good governance, control corruption and uphold transparency and accountability, as desired by the people. The party has also called on the government to improve services provided through government offices.  Although there have been some improvements in the procedures for obtaining essential documents such as passports, national identity cards, driver’s licenses, etc., the NC has demanded “immediate and meaningful” improvements from the government to create a situation that can be felt by the consumers.

The Covid-19 pandemic and the Ukraine-Russia war made negative impacts on the production and distribution systems worldwide, affecting our society as well, according to NC, consequently, industrialists, traders, businessmen, farmers, and laborers are worried about running their businesses and maintaining their daily lives.
The coalition government formed in this situation is working to address these problems, and there have been some signs of improvement in the economy recently, the NC has said.

“To make these reforms comprehensive and sustainable, to strengthen the economy, and to make the banking system accessible to the general public, the Nepali Congress draws the government's attention to make important decisions on this sensitive issue,” the party stated.

While the government is taking meaningful initiatives to control price increases and shortages, it is the state’s duty to ensure smooth supplies of essential commodities to the people and provide relief to the people. So, the Congress has requested the government to conduct a proper study of low-income families, daily wage earners, street vendors who have been displaced and are currently employed, and make necessary decisions for their livelihood.

The CWC meeting also requested the government to conduct a serious and in-depth investigation into the smuggling of 100 kg gold through the Tribhuvan International Airport Customs Office and bring the culprits to book.

The party has also drawn the government’s attention toward shortage of fertilizers and seeds that farmers have been facing during the cultivation season. Due to low rainfall, paddy transplantation has not taken place on one-thirds of the land, which has had a negative impact not only on the daily life and annual income of farmers but also on the national domestic product, the party has said, calling on the government to provide fertilizer and seeds to the affected farmers at concessional prices.

The NC has also raised the issue of lumpy skin disease, which has killed and affected thousands of cattle across the country. The infection has become particularly hard on cattle farmers due to the ongoing economic recession, the party has said, urging the government to provide compensation to the affected farmers and distribute vaccines at the earliest.

The Congress party has also expressed concern that the paddy output could drop this year due to low rainfall. This could have a negative impact on the daily life and annual income of farmers, as well as the overall GDP of the country, the party has said. The NC has asked the government to take proper strategic precautions and manage possible food shortage.

The party has urged the government to declare areas where paddy transplantation is not possible due to delayed or insufficient rains as 'dry areas' and provide necessary relief and compensation to the farmers. Additionally, the NC has also called on the government to provide compensation to victims of floods, landslides, and other catastrophes in different parts of the country.

Similarly, the NC has urged the government to support the people who have been affected due to the wrong intentions of some microfinance banks and cooperatives. The party has asked the government to deliver justice to the depositors and take necessary decisions to support borrowers who have not been able to repay their loans taken on group guarantees.

The NC has also concluded that the enactment of the Citizenship Act, initiated by the party, has brought smiles to the faces of people. The party has requested the government to prepare Citizenship Regulations at the earliest and facilitate the process of citizenship distribution.

Stating that transitional justice laws are crucial to bringing lasting peace in the country, the NC has asked the government to pass transitional justice bills from both Houses of parliament by forging consensus among all parties.

The NC has also drawn the attention of the government to the need to bring crucial laws like the Federal Civil Service Act, Federal Police Act, Federal Education Act, among others, which are crucial for the smooth implementation of federalism.

Stating that groundwater levels in the Tarai Madhes region are depleting due to the impacts of climate change and environmental impacts on the Chure region, the NC has asked the government to find out the reasons behind this and provide a solution to the problem.