Bridging Nepal’s urban-rural divide: Challenges and solutions

Nepal is experiencing a growing economic disparity between its urban and rural areas, where rapid development in cities contrasts sharply with the stagnation in rural regions. The concentration of infrastructure, services and job opportunities in urban centers exacerbates inequality, while rural areas remain underdeveloped and lack basic facilities. This uneven development has led to a significant rural-to-urban migration, with people leaving villages in search of better opportunities in cities, further depleting rural economies.

Urban centers have become magnets for rural populations due to the concentration of essential services such as education, healthcare and employment opportunities. The hope of improving living conditions drives internal migration, as rural residents believe cities offer a better standard of living. This urban-centric development model not only leaves rural areas behind but also accelerates the growth of overcrowded cities, contributing to further challenges like rising unemployment and inadequate housing.

In response to this issue, Nepal adopted a federal system of governance to decentralize power and resources. The goal was to empower provincial and local governments, assuming that they would be better equipped to address local needs and promote equitable development. By transferring authority and funds to local governments, it was hoped that development would be more localized and tailored to the specific needs of rural areas. Unfortunately, the anticipated benefits have not fully materialized.

Despite the decentralization of power, rural development has not seen significant improvements. In many cases, local governments have struggled to use the funds effectively, and instead, the transfer of power has led to the decentralization of corruption. Local authorities have misused public resources meant for development, often siphoning off funds for personal gains. This problem, which was initially concentrated in the central government, has now spread to local levels, undermining the objectives of decentralization.

Corruption at the local level has further deepened economic inequality. Political elites and well-connected individuals in both urban and rural areas often benefit from the misuse of state resources, while ordinary citizens continue to face hardship. Funds that could have been used for infrastructure development, job creation, education and healthcare are diverted through corrupt practices, leaving rural communities trapped in poverty and underdevelopment. This corruption weakens public trust and limits the potential for inclusive growth, which could have uplifted the rural population.

Moreover, the lack of transparency and accountability in local governance has made it difficult to ensure that development projects are carried out effectively. In many cases, development funds are not properly monitored, and there is little oversight to ensure that they reach the intended communities. Without effective monitoring mechanisms, local leaders are often able to exploit the system for personal gains, while the rural poor continue to suffer from a lack of access to essential services.

The failure to achieve equitable development and inclusive growth can also be attributed to weak governance structures at the local level. Local leaders often lack the capacity to manage development effectively, and there is a significant gap in skills and knowledge required to implement projects that could drive real change. In the absence of strong institutions and effective leadership, rural areas continue to miss out on the benefits of federalism and decentralization.

To address the growing disparity between urban and rural areas, Nepal needs comprehensive reforms. One of the most critical steps is to strengthen anti-corruption mechanisms at both the local and national levels. Transparency in how development funds are allocated and spent is crucial to ensure that resources are used effectively. Independent bodies should be established to monitor the use of public funds and hold local leaders accountable for any misuse. Additionally, capacity-building programs for local leaders and administrators are essential to improve governance and ensure that development projects are implemented effectively.

Another important reform is the improvement of infrastructure and services in rural areas. This can be achieved through better planning, prioritizing rural development and ensuring that basic services such as healthcare, education, and transportation are accessible to all. Rural communities should not be left behind in the pursuit of national development, and government policies must reflect this commitment to equitable growth.

Furthermore, local governments must be provided with the tools and training necessary to manage development funds effectively. Capacity building should focus on transparency, financial management and project implementation to ensure that rural areas benefit from the decentralization of power.


In conclusion, Nepal’s growing economic inequality, fueled by the urban-rural divide, requires urgent action. The decentralization of power through federalism has not led to the expected improvements in rural development, largely due to corruption, mismanagement, and weak governance. To bridge the gap between urban and rural areas, Nepal must strengthen its institutions, promote transparency and build the capacity of local leaders. Only then can the country achieve true inclusive development and provide equal opportunities for all its citizens, regardless of where they live.

 

US tariffs could have severe repercussions for LDCs: WTO

The reinstatement of US tariffs could have severe repercussions for export-oriented least-developed countries (LDCs) whose economies are particularly sensitive to external economic shocks due to their concentration of trade on a small number of products as well as their limited resources to deal with setbacks, according to the WTO Secretariat's latest Global Trade Outlook and Statistics report released on 16 April.

Under the current situation with the pause on US' "reciprocal" tariffs, LDCs may benefit from trade diversion as their export structure is similar to China's, especially in textiles and electronics, the report said. 

The volume of world merchandise trade is expected to decline by 0.2% in 2025 under current conditions, nearly three percentage points lower than what would have been expected under a "low tariff" baseline scenario, according to the report.  This is premised on the tariff situation as of 14 April. Trade could shrink even further, to -1.5% in 2025, if the situation deteriorates.

Services trade, though not directly subject to tariffs, is also expected to be adversely affected, with the global volume of commercial services trade now forecast to grow by 4.0%, slower than expected.

Director-General  of WTO Ngozi Okonjo-Iweala said: "I am deeply concerned by the uncertainty surrounding trade policy, including the US-China stand-off. The recent de-escalation of tariff tensions has temporarily relieved some of the pressure on global trade.”

However, the enduring uncertainty threatens to act as a brake on global growth, with severe negative consequences for the world, the most vulnerable economies in particular, she said,  in the face of this crisis, WTO members have the unprecedented opportunity to inject dynamism into the organization, foster a level-playing field, streamline decision-making, and adapt our agreements to better meet today's global realities."

At the start of the year, the WTO Secretariat expected to see continued expansion of world trade in 2025 and 2026, with merchandise trade growing in line with world GDP and commercial services trade increasing at a faster pace. However, the large number of new tariffs introduced since January prompted WTO economists to reassess the trade situation, resulting in a substantial downgrade to their forecast for merchandise trade and a smaller reduction in their outlook for services trade.

Regional goods trade forecasts

The latest forecast marks a reversal from 2024, when the volume of world merchandise trade grew 2.9%, while GDP expanded by 2.8%, making 2024 the first year since 2017 (excluding the rebound from the COVID-19 pandemic) where merchandise trade grew faster than output.

In 2025, the impact of recent tariff measures on merchandise trade is expected to differ sharply across regions.

Under the current policy landscape, North America is expected to see a 12.6% decline in exports and 9.6% drop in imports in 2025. The region's performance would subtract 1.7 percentage points from world merchandise trade growth in 2025, turning the overall figure negative. Asia is projected to post modest growth in both exports and imports this year (1.6% for both), along with Europe (1.0% export growth, 1.9% import growth). Both regions' contributions to world trade growth would remain positive under current policies, albeit smaller than in the baseline low tariff scenario. The collective contribution to world trade growth of other regions would also remain positive, in part due to their importance as producers of energy products, demand for which tends to be stable over the global business cycle.

The disruption in US-China trade is expected to trigger significant trade diversion, raising concerns among third markets about increased competition from China. Chinese merchandise exports are projected to rise by 4% to 9% across all regions outside North America, as trade is redirected. At the same time, US imports from China are expected to fall sharply in sectors such as textiles, apparel, and electrical equipment, creating new export opportunities for other suppliers able to fill the gap.

Most services growth in 2025 will originate from Europe, where exports are expected to grow by 5.0% under current policies. European growth will continue at 4.4% in 2026. Asian economies' services exports are projected to increase by 4.4% in 2025 and by 5.1% in 2026. Growth in services exports of North America will slow to 1.6% in 2025 but then accelerate to 2.3% in 2026, the report said. 

For the Middle East, services exports are expected to grow by 1.7% in 2025 and 1.0% in 2026. In the Commonwealth of Independent States (CIS), growth of 1.1% in 2025 and of 3.5% in 2026 is anticipated. The outlook for 2025 is subdued for Africa and for South and Central America and the Caribbean, both of which are expected to record declines in 2025.

Rhododendron trails of Nepal: A call for responsible trekking

Imagine you have hiked for hours eagerly wanting to see the trees full of pink, red and white Rhododendron flowers. But once you reach the destination, you see nothing but the trees with bare branches. How does that feel? Sad, right? But this is the reality of many trees in Nepal these days.

Rhododendron season has arrived and many of us have already planned or visited the places popular for Rhododendron blooms. But the question is: can’t we simply enjoy watching the flowers sway in the wind without plucking them? Too often, people pluck the flowers and even break the branches to display them on their social media posts. These flowers, in their most vibrant phase, are plucked just to be thrown away.

Instead of discarding them, Rhododendron flowers could be used for medicinal purposes to treat pain, inflammation, and skin ailments, or processed into powders for pickles. During my visit to Taplejung recently, I saw the locals drying Rhododendron flowers to sell in the market for such uses.

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Recently, a TikToK clip showing a person breaking the branches of a rhododendron tree to pluck the flowers went viral. It was met with angry comments; many demanded that the person should be punished for his act. Sadly, many people do not understand the value of Rhododendron flowers. More than just our national flower, Rhododendrons are home to thousands of birds and food source for bees and butterflies. They are a crucial part of the ecosystem.

Research has shown that once the flower is plucked, it is very hard to bloom from the same tree or it might take years to bloom again. It may be noted that Chandannath Municipality in Jumla has banned plucking of the Rhododendron flowers since 2019. 

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“We want to protect our Rhododendron forests because many people have been plucking their flowers and breaking their branches,” Birkha Bahadur Sarki, chairman of Dhalthapala Community Forest, told Khabarhub.com.

To protect the Rhododendron flowers, we must be aware of ourselves and educate others to not pluck Rhododendron flowers, and to admire them in the forest—where they belong. March to May is the best time for the Rhododendron trek in Nepal. Here are the five best to go see them.

Ghorepani-Poon Hill Trek

For those looking for the best place for Rhododendron trek, the Ghorepani-Poon Hill trek could be an ideal option. The trail passes through the dense Rhododendron forests. These forests would come alive during the spring season as it is the time when the rhododendron flowers with vibrant colors bloom. The forests will be blanketed by rhododendron flowers.

With the access of the road, the trek nowadays starts from Ulleri. After walking for around four to five hours, one can reach Ghorepani (2,860 meters). The next morning, you can hike to Poon Hill (3,210 meters) from where you get the spectacular view of Annapurna Himalayan Range, breathtaking view of sunrise, and Rhododendron forests.

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Langtang Valley Trek

The Langtang Valley trek offers trekkers  truly a magical experience of walking through lush Rhododendron forests. The month of March to May (spring season) is generally the best time to do this trek. This trek starts from Sybrubesi, four to five hours drive from Kathmandu, and it will take around five days to complete. Apart from beautiful Rhododendron forests, you get to trek through quaint villages, sparkling rivers, and witness gigantic snow capped mountains.

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Tinjure-Milke-Jaljale trek

Located in Taplejung, Terathum, and Sankhuwasabha districts, the Tinjure-Milke-Jaljale trek is famous for its vibrant Rhododendron forests. Out of 31 species of Rhododendron flowers, 28 are found in the forests of TMJ. So this region is rightly called the capital of Rhododendron. Furthermore, the trek offers a chance to learn about the local culture and see spectacular mountain views of Makalu, Kanchanjunga and Everest.  The trek starts from Hile, north of Dharan, and takes around eight to 10 days to complete.

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Jugal Himal Base Camp Trek

Jugal Himal Trek is famous for the breathtaking mountain views and Rhododendron forests. This trail winds through lush Rhododendron forests, cascading waterfalls, serene mountains, and Sherpa villages. Mt Phurba Ghetchu, Gyalzen Peak, and Mt Jugal 1, 2 and 3 of Jugal Himalayan Range can clearly be seen on this trek. The trek starts from Tembathang and takes around 10 days to complete.

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Peaky Peak Trek

Peaky Peak, which is situated in the lower Khumbu region of Solukhumbu district, is relatively a new trekking destination, offering panoramic views of Mt Everest, Mt Makalu, and Mt Kanchenjunga. This trail traverses through enchanting Rhododendron forests, which burst into a riot of colors during the spring season. Along with the Rhododendron forests, the trek promises an off-the-beaten-path experience for those who wish to avoid crowded and commercial trekking destinations. This trek starts from Dhap (2,850 meters), around six hours drive from Kathmandu, and ends in Phaplu.

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Rhododendrons are a gift of nature. More than just a national symbol, they are vital to the ecosystem and bring joy to trekkers. Let’s appreciate them mindfully and preserve them for future generations.

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Photos: Achitra Thieng

 

Breaking the mental health stigma: Therapy should be a priority, not a privilege

In Nepal, the perception of health remains narrowly confined to physical well-being, while mental health continues to be dismissed as an afterthought. Despite the growing global emphasis on psychological well-being, the discourse on mental health in Nepal remains largely overshadowed by stigma, misinformation, and systemic negligence. The repercussions of this neglect are severe, affecting individuals across all age groups, particularly in underprivileged communities and remote areas where mental health resources are virtually nonexistent. The lack of awareness and accessibility, coupled with deeply ingrained cultural misconceptions, has exacerbated the crisis, rendering mental health care a privilege rather than an essential component of public health.

The mental health crisis manifests itself across different life stages. Children, often burdened with academic pressure and familial expectations, are rarely given the emotional support necessary for their psychological development. Many struggle with anxiety and depression from a young age, yet their distress is either trivialized or attributed to laziness. Adolescents and young adults, grappling with career uncertainties, societal expectations, and the growing influence of social media, face increasing mental health challenges, yet they are often met with dismissive responses such as being told to ‘toughen up’. The situation becomes more complicated for adults who deal with financial burdens, workplace stress, and family responsibilities, with limited avenues to seek professional help. 

Among the elderly, mental health issues such as depression and dementia are either misunderstood as a natural part of aging or completely ignored, leaving them in a state of isolation and neglect. The World Health Organization (WHO) estimates that nearly 15 percent of the global elderly population suffers from a mental disorder, a figure that is likely to be higher in Nepal due to the absence of proper mental health interventions.

The situation is even more dire in Nepal’s remote and underprivileged communities, where mental health remains a subject of myth and superstition. Many rural areas lack professional mental health practitioners, forcing those in distress to rely on traditional healers or shamans, whose methods often involve spiritual rituals rather than evidence-based interventions. 

A 2021 study published in the Journal of Global Health Reports indicated that over 80 percent of mental health patients in rural Nepal first consult a faith healer before considering medical help, if at all. The lack of accessible mental health services, coupled with a deep-rooted belief that mental health disorders are caused by supernatural forces, discourages individuals from seeking professional care, further entrenching the cycle of suffering and silence.

Despite the increasing prevalence of mental health issues, Nepal’s healthcare infrastructure continues to marginalize psychological well-being. Hospitals and clinics are largely focused on treating physical ailments, while mental health remains a neglected domain within the broader healthcare system. According to the Nepal Health Research Council (NHRC), mental health services account for less than one percent of the total healthcare budget, a stark contrast to the country’s rising burden of mental illness. Unlike physical health checkups, which individuals proactively schedule, mental health concerns are consistently postponed or ignored altogether. Seeking therapy is still widely considered an indulgence rather than a necessity, with many perceiving it as a service reserved for the wealthy or those who are ‘weak.’

One of the primary barriers to mental health care in Nepal is the prohibitive cost of therapy. While a general physician’s consultation may cost a nominal fee, psychotherapy sessions remain expensive and largely out of reach for the average Nepali citizen. A 2022 report by the Nepal Mental Health Foundation found that the cost of a single therapy session in Kathmandu ranges between Rs 1,500 to Rs 3,500, a significant expense for families struggling with daily financial constraints. Given this economic reality, individuals are more likely to allocate their limited resources to immediate physical health concerns, leaving mental health at the bottom of their priority list.

The path forward requires a multifaceted approach that integrates mental health into Nepal’s overall healthcare system and societal framework. Greater investment in mental health infrastructure is imperative, ensuring that psychological services are available at primary healthcare centers across the country. Nationwide awareness campaigns must be implemented to challenge the prevailing stigma and educate individuals on the importance of mental well-being. Moreover, mental health services must be made affordable through government subsidies and the inclusion of mental health coverage in insurance policies. Educational institutions and workplaces should incorporate mental health discussions into their curricula and professional environments, fostering a culture where seeking help is normalized rather than ridiculed.

Nepal cannot afford to continue neglecting mental health. The consequences of untreated psychological distress extend beyond individual suffering, affecting families, communities, and the nation as a whole. To build a healthier and more resilient society, it’s crucial to recognize that mental health is just as vital as physical health. Therapy should not be seen as a luxury but as a fundamental right, accessible to all regardless of socioeconomic status or geographical location. Only through systemic reforms, awareness, and cultural shifts can we dismantle the barriers that prevent individuals from seeking the help they deserve.