Kleptocracy casts a long shadow in Nepal

Kleptocracy, a term etched from the Greek lexicon, combining "kleptes" for thief and "kratos" for rule, paints a somber canvas of governance. It depicts a system where those in power exploit their positions for personal enrichment, draining public coffers through corruption and embezzlement. In Nepal, a nation grappling with persistent political instability and governance challenges, the specter of kleptocracy casts a long shadow, exacerbating social inequalities and impeding developmental progress. This exploration endeavors to dissect the complexities of kleptocracy and its profound impact within Nepal's tumultuous political landscape.

Understanding it 

Kleptocracy epitomizes a distortion of democratic ideals, where public trust is betrayed as officials accumulate wealth and power at the expense of citizens' welfare and national interest. Within such systems, political elites and their allies exploit state institutions and regulatory frameworks to drain public resources, evading accountability and fortifying their grip on power.

Nepal's vulnerability

Nepal's historical narrative, woven with threads of political instability and institutional fragility, provides fertile soil for the seeds of kleptocracy to take root. Rampant corruption and nepotism have entrenched themselves, corroding public trust in state institutions and eroding the foundations of the rule of law.

The nexus

The nexus between political instability and kleptocracy in Nepal is symbiotic, each reinforcing the other in a cycle of dysfunction. Frequent changes in government, protracted political standoffs, and fragmented party politics provide fertile ground for rent-seeking and misappropriation of state resources.

The impacts

Kleptocracy corrodes the fabric of Nepali society, stunting economic growth, exacerbating poverty and widening social disparities. Precious public resources meant for essential services are diverted into the coffers of the corrupt elite, perpetuating cycles of deprivation and disenfranchisement. Moreover, the erosion of trust in state institutions undermines efforts to foster democratic governance, risking perpetual instability and underdevelopment.

Economic crisis

Nepal, a nation ensconced in the heart of the Himalayas, has long been celebrated for its breathtaking vistas and rich cultural tapestry. Yet, beneath this picturesque facade lies a country teetering on the edge of economic collapse, its political foundations shaking. The roots of Nepal's economic malaise run deep, intertwining with systemic issues that have plagued the nation for decades.

Contributing factors

The journey toward Nepal's economic crisis can be traced through its turbulent past, marked by political upheaval, social disparity and natural calamities. The transition from monarchy to democratic republic in 2008 failed to usher in the desired stability and prosperity. Instead, Nepal has been marred by corruption, bureaucratic inertia and a lack of coherent economic policies.

Political Instability: Nepal's political landscape resembles a revolving door, with frequent changes in leadership causing policy inertia and uncertainty. This instability repels foreign investment, stymies economic growth and erodes public faith in the political establishment.

Corruption and governance issues: Corruption runs rampant across various strata of the Nepali society, impeding development endeavors and exacerbating income disparities. Weak governance structures have fostered an environment where corruption thrives, diverting vital resources away from essential public services and infrastructure projects.

Dependency on remittances: Nepal leans heavily on remittances from its vast migrant workforce, particularly those toiling in Gulf nations and Southeast Asia. While remittances have provided a lifeline for many Nepali families, they've also fostered a culture of dependency, stifling domestic entrepreneurship and innovation.

Natural disasters and climate change: Nepal's susceptibility to natural disasters, from earthquakes to floods, poses existential threats to its populace and infrastructure. Climate change compounds these challenges, jeopardizing agriculture, water resources, and overall sustainability.

Underdeveloped infra: Inadequate infrastructure, typified by subpar road networks and limited access to electricity and healthcare, stifles economic progress and hinders the delivery of essential services, particularly to rural communities. This infrastructure deficit deters investment and perpetuates regional disparities.

Economic crisis unfolds: In recent years, Nepal's economic woes have snowballed, culminating in soaring inflation, mounting unemployment and a widening fiscal chasm. The COVID-19 pandemic further exacerbated these vulnerabilities, dealing crippling blows to sectors like tourism and remittances. The resultant economic downturn has plunged many Nepalis deeper into poverty, stoking social unrest and disillusionment with the government's response.

Implications for the political system: The confluence of economic distress and political disenchantment has ignited widespread discontent and clamors for systemic reform. Dissatisfaction with the status quo has emboldened opposition factions and civil society groups, demanding accountability, transparency and substantive change. The fragility of Nepal's political institutions has been laid bare, evoking apprehensions of imminent collapse unless decisive action is taken to address the underlying crises.

The way forward

Resolving Nepal's economic quagmire and averting political meltdown necessitates multifaceted endeavors. Political leaders must prioritize stability and consensus-building, transcending partisan rifts to forge a trajectory toward inclusive growth and sustainable development. Strengthening governance frameworks, combating corruption and investing in critical infrastructure stand as imperatives for laying the groundwork for a resilient economy and a robust democratic ethos.

International collaboration and assistance can play pivotal roles in bolstering Nepal's recovery efforts, offering expertise, resources and investment avenues. However, genuine transformation can only materialize through domestic stakeholders' unwavering commitment to prioritizing Nepali interests above narrow political agendas.

In conclusion, Nepal finds itself at a crossroads, grappling with intertwined crises of economic distress and political uncertainty. The path ahead is fraught with obstacles, yet it is also brimming with opportunities for renewal and rejuvenation. By confronting its underlying challenges head-on and embracing a vision of inclusive and sustainable development, Nepal can emerge revitalized, resilient, and better poised to navigate the complexities of the 21st century.

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Tiger conservation dilemma in Nepal

Multifaceted efforts have been made toward tiger conservation, and Nepal today boasts over 355 tigers in the wild. In 2010, this number was only a third of it—at 121. However, conservation of this umbrella species seems to have created new challenges in human-animal conflict management across the country’s national parks.

Tiger attacks on humans have more than tripled in the last 10-15 years and Nepal seems to be at a crossroads when it comes to managing human-animal balance. Efforts to control this conflict seem to have even challenged the country’s capacity to define development with nature in the balance. On May 14, I visited the Devnagar Tiger Rescue Center in Chitwan and came out with mixed feelings of the direction conservation was headed in Nepal.

The rescue center is primarily meant to keep and conserve ‘troublemaker tigers.’ At the gate, I was told that some 150-200 people have been visiting the center daily since its opening earlier around the Nepali new year. The plan is to reinvest the money raised from ticketing this conservation-tourism effort back into the operations of the rescue center.

All of this was good news, but when I actually went inside, my heart sank. The center seemed too small and cage-like. According to a report published in a daily on May 14, the center covers an area of around 4000 square feet. Separated into two rooms, with indoor and outdoor spaces, two male tigers are kept in this mini-enclosure. I spoke to some of the guides, who had brought in guests, mostly Indians and Nepalis, and one of them mentioned that those running the center ought to accommodate spaces for the tigers to hunt naturally so that when and if the tigers are considered rehabilitate-able into the wild, they can adapt. According to the Wild Tiger Health Project, tigers in rehabilitation should have an enclosure, which is ideally a large (> 0.5 hectare), natural area with good shade trees, plenty of vegetation providing cover, a varying terrain, a pool for bathing and a natural stream system to ensure a clean water supply.

However, I’m really not sure what a rescue center envisions for the rescued  tigers' future, if not rehabilitation into its natural habitat. There is plenty of space around the rescue center to build a larger enclosed nature-like habitat for tigers. I’m assuming it may lack budget, which is the main reason behind the establishment of a small enclosure.

I was also feeling hopeful that ‘conservation tourism’ could actually be quite a larger than life segment for Nepal's tourism industry. But it must be done correctly rather than conveniently. Imagine a tiger in a much larger ‘natural-looking’ space, not immediately visible, guests on binoculars searching, brochures in their pockets that introduce the tigers story and its journey, etc. 

 I must also acknowledge that the government has tried to manage human-animal conflict quite well because rescue centers are only a part of the larger puzzle to conserve and manage flora and fauna in Nepal. Fifty-nine people have died in tiger attacks across various national parks in Nepal since 2018, according to government sources. In 2021-22, tigers killed 21 people, whereas some 10 years ago (2012-13), five human casualties had occurred in the course of conflicts with tigers.

For comparative analysis, more people die because of mosquito bites than tiger attacks in Nepal. According to the Journal of Travel Medicine, mosquito-borne diseases killed more than 55 people in Nepal in 2022. But tigers, not surprisingly, seem to draw more attention, the feline has magnetic charisma, which we must understand and consider in our analysis of human-animal conflict management.

Most tiger attacks have been happening on the outer edges of jungles where weaker tigers roam. Human habitats, which not surprisingly are closing into jungle spaces, mostly witness these encounters. In Meghauli last year, a young mother not even in her 20s died in a tiger attack while foraging the buffer area early in the morning to pluck wild spinach (‘niuro saag’).

Soon after the news of the attack/death spread, locals rioted and demanded park authorities to take the tiger into captivity and relocate the ‘human-eater’. Locals refused to take the body of the young woman out of the jungle until authorities took the tiger away. Local politicians even gain popularity for getting tigers caught and relocated, making tiger attacks a political affair.

Therefore, let’s understand that it is still not too late to envision better rescue and rehabilitation centers. We should  look at the Devnagar rescue center as an example of what is in progress to not only manage human-animal conflict but also an effort to attract quality tourism into a new sphere of “conservation-wildlife tourism” in Nepal. Hopefully, visitors who come to the center will not only be first and last time visitors but wish to be a part of the animals rescue and rehabilitation journey. Hopefully more visitors come for educational purposes and to be a part of quality conservation efforts in Nepal.

It should even be possible to turn the rescue of tigers into a movement. Well-documented visuals and stories through dedicated national broadcasts for conservation tourism could enrich Nepal’s ongoing engagement with tigers. People from across the world could play a part in raising awareness and money to support our government in its efforts to manage human-animal conflict. As Nepal tries to navigate into quality and modern conservation efforts, possibilities are endless, if the right course is taken.

Better shelters and management will surely contribute to a positive conservation tourism sector and attract not only visitors for wildlife tourism (165,000 visitors were recorded at the Chitwan National Park last year), but also for quality wildlife conservation tourism across Nepal's several national parks and conservation areas. However, for the time being, I am left wondering as to what the future holds for the two tigers I saw.

Investment potential in Nepal

Nepal has a lot of untapped investment potential especially in the areas of infrastructure development, renewable energy, green hydrogen, hydropower, tourism, agri-business, and information and communication technology. Manufacturing is another area where Nepal could attract projects.

KPMG in India has a track record of supporting government agencies on investment promotion programs, business reforms and investment summits. We will be happy to advise the Government of Nepal on the Nepal Investment Summit. For the success of the investment summit, along with inter-ministerial collaboration, laying the platform with a stronger policy environment, effective promotion and targeting investors across key sectors, it will be essential to showcase investable projects that are ready to execute.

The workshop on ‘Unlocking Nepal’s Investment Potential’ organized by KPMG in India, along with the Investment Board Nepal (IBN) in Kathmandu was a precursor to the proposed summit in April. The focus was on promoting private investments, particularly Foreign Direct Investment (FDI), to unlock the country's full potential. The speakers elaborated on potential strategies which could be adopted to reduce compliance burden for investor fraternity and simplify the business processes for obtaining requisite clearances and approvals by investors. Drawing from its extensive experience, KPMG shared success stories from other similar economies and drew parallels to offer indicative actionable recommendations for Nepal. Nepal is on the cusp of transformation, and the workshop concluded with a commitment to enhance the country’s investment climate through legal, procedural, and regulatory reforms.

To foster economic expansion and enhance investment potential in Nepal, a comprehensive strategy should focus on strengthening the policy environment, infrastructure development, regulatory reforms, ensuring ease of doing business, and targeted sector-specific investment promotion. Strengthening key sectors like tourism, technology, renewable energy, green hydrogen, and manufacturing can also play a pivotal role in attracting investors and fostering sustainable economic growth. Additionally, building a business-friendly environment, easing process friction, and encouraging innovation will further contribute to creating an attractive investment climate in Nepal.

There are several areas where India could increase investment in Nepal, particularly in areas of synergies and leveraging learnings from each other in ease of doing business (EODB), managing large programs, and infrastructural development through public-private partnerships (PPPs). By fostering collaboration in key sectors such as renewable energy, green hydrogen, manufacturing, digital public infrastructure, technology centers, agriculture, and tourism infrastructure, services, both nations could drive mutual growth and development. Several factors could contribute to the gap between promised investments and actual outcomes. Identifying and addressing these issues, improving transparency, and ensuring a stable investment climate could help bridge this gap.

The author is CEO of KPMG, India 

Tapping the potential of Nepal’s para-athletes

It is a good thing that the Ministry of Youth and Sports is formulating a new policy to bring national sports to the next levels. There is a lot of work to be done but asking for feedback, advice from the general population is certainly a great way to start.

A key way to elevate Nepal’s sports is to formulate a program for high potential achievers, an initiative that strategically identifies and supports athletes who have a real chance to compete at highest levels. I am talking about athletes whose performance is already very promising, athletes who have already shown their worth.

It is obviously essential to ensure that such a program is capable of selecting the most promising athletes when they are still very young rather than when they are already mature. Nepal could learn a few things from Australia, which has a very rigorous and holistic process of grooming the best potential competitors. It is not surprising for Australia that their athletes are among the best and Australia always stands very high for the medals won.

Something that perhaps might be discounted is that Australia has been investing a lot also in its adaptive sports athletes or para-athletes and they are among the best worldwide.

I am writing about this because Nepal also has dynamic para-athletes, who deserve a much higher level of recognition. This is the reason why the new policy being formulated should give equal chances to parasports to excel and compete in the region and worldwide. It is not just about equality and social justice. It is really about competition and giving a level playing field to athletes living with disabilities.

Nepal’s taekwondo is probably, at the moment, the most recognized para sport.

This is thanks to Palesha Goverdhan winning a bronze medal in the 2022 Asian Para Games in China and recently she was awarded the ‘Best Taekwondo Practitioner of the Year’. She is also going to represent Nepal at the upcoming Paralympics games in Paris. We should not forget that Shrijana Ghising has also been doing very well internationally with Para taekwondo.

Then there is also wheelchair basketball. It is very positive that Minister for Youth and Sports Biraj Bhakta Shrestha recently attended a two-day Intervalley Wheelchair basketball tournament organized by Nepal Spinal Cord Injury Sports Association (NSCISA), one of the pioneering organizations promoting adaptive sports in the country.

At the moment of writing, Nepal has the chance of having another top para-athlete competing in Paris, Keshav Thapa, the most successful para-table tennis athlete of the country.

I personally know Thapa for many years as he is also very active in the social sector, being a strong advocate for accessibility and for the rights of persons with disabilities and he is the founder of the Spinal Cord Injury Network Nepal (SCINN).

SCINN provides a family environment, including lodging and food to more than 20 youths living with spinal injury, many of whom are also wheelchair basketball players with the SCINN Wheelchair Basketball Team.

Thapa, who, according to the International Table Tennis Federation-Para Table Tennis (ITTF PTT)’s classification, currently is ranking at number 88 but he has a huge potential to raise the world ranking even further.

He is trying to find the resources to attend the Paralympic World Qualification Tournament, which is going to be held in Pattaya, Thailand from the 23rd of this month to till 26th.

This is the only way for him to be in Paris.

I am really wondering if the high potential program for promising athletes of the country were in place, where Keshav would be standing in the world ranking.

I am sure he could, confidently, be among the top 15-20 and certainly the best in South Asia and among the strongest competitors to the Chinese peers who have been dominating table tennis ever since.

What struck my interest in the work of Thapa is the fact that he is also very concerned with the whole development of the para-sector in Nepal.

It is outrageous that the country still has two different Paralympics Committees, one working with the government and the other with the International Paralympics Committee. I sincerely hope that Minister Shrestha uses his powers to solve this ridiculous conundrum.

It is a ridiculous situation because athletes like Thapa are slowed down, unsupported and mostly on their own to achieve the great things they aim for.

I recently had a chat with Thapa. We talked about his goals and aspirations but also about his concerns about para-sports in Nepal.

“Well, about my goals I have a dream to be a Paralympian and want to win an international medal for my nation. If I get a chance to participate in various competitions and have good training and exposure I trust myself that I can win an international medal. Ultimately, my goal is to be a Paralympian and I really want to work in the disability community.”

Despite being very focused to succeed in Thailand and then in Paris, Thapa really wants the whole para-sports to grow in the country.

“My priority will be on para sports development. Para sports have been helping me to make my life better such as mentally strong, physically fit and name and fame in the community”.

He further explained to me, “I feel proud that I am eligible to participate in Paralympic world qualification. It’s one great achievement in my life. I wish I can be a role model in the para sports sector and in this way, many other young fellows may inspire and be involved in the sports”.

I asked him what could be done to reverse the status quo.

“Overall, for promoting adaptive sports there should be encouragement and direct investment of government to para-athletes. There should be regular training, training equipment, expert manpower such as coach, disability-friendly playing grounds, financial support, chances to participate in national and international competition, and there should be salary for players so that adoptive sports can be boosted.”

I do not only hope that Thapa will qualify for Paris but also he will find the resources to be able to compete full time without being always overstressed about fundraising.

Big corporate houses have a big role to play.

This would be smart CSR, something that can truly make a difference while also elevating their corporate profiles.

I feel sorry that there are so many great athletes with disabilities in the country who are unable to shine. They are blocked, incapable of showing the nation and the whole world what they can do.

I truly hope that the new policy that Minister Shrestha is formulating will try to address this huge gap.

Para-taekwondo, para table tennis, wheelchair basketball, para-swimming, blind cricket are some of the disciplines where Nepal can show its brilliance and greatness while showcasing to the world its difficult but worthy journey toward inclusion and accessibility.

Views are personal