Fighting back social challenges and natural calamities, Nepal, in 2017, made major strides in almost all areas including inclusive development, industry and commerce, economy, politics, human rights, among various others.

Here are some of the key highlights of major developments in Nepal in 2017:

Bilateral Ties and Key Pacts

2017 has been a prosperous year for Nepal in building its image in the global arena through diplomatic ties.

On December 19, 2017, Nepal completed 60 years of its diplomatic relations with Sri Lanka.

US Ambassador to Nepal Alaina B Teplitz (In Right)

The United States Embassy also celebrated 70 years of US-Nepal bilateral relationship on December 13, 2017.

Besides strengthening existing ties, Nepal also began its diplomatic relations with nations such as State of Eretria, Uganda and Kingdom of Bahamas.

Very recently, a new friendship association to boost Nepal-Myanmar diplomatic ties was also formed. The Myanmar-Nepal Friendship Association is the first such group formed since the establishment of diplomatic ties between the two countries in 1960.

Nepal also signed bilateral partnerships with various countries for cooperation across different sectors.

Nepali Foreign Secretary Shankar Das Bairagi and the Ambassador of Morocco to Nepal Mohamed Maliki signed a MoU for the formation of a bilateral consultation mechanism between Nepal and Morocco on August 3, 2017.

Nepal has also signed a Bilateral Labor Agreement with Jordan on October 18, 2017.

         Indian Businessmen Invited to Invest in Nepal

The Government of India also promised its investment in the Nepali industry.

In response, the Government of Nepal has very recently welcomed the Indian business community to invest in Nepal.

“It’s an opportune time to invest in Nepal with bilateral trade on the upswing,” says Embassy of Nepal Charge d’Affairs Bharat Kumar Regmi.

Japan and the United States also promised assistance and funding for the development of Nepali education sector.

In a move enhancing its diplomatic ties with Nepal, the Parliament of Brazil has also formed a six-member Brazil-Nepal Parliamentary Group.

This is the first such Group in the history of Nepal-Brazil ties and is formed as a result of the recently-approved statute to promote inter-parliamentary cooperation between the two countries.

In a recent meeting on December 25, 2017, Oman and Nepal discussed bilateral cooperation across various sectors, wherein, the Under Secretary of the Ministry of Commerce & Industry of Oman Ahmed Hassan Al-Dheeb welcomed collaboration with the Nepali business community across various sectors.

Earlier, Nepal had also expressed willingness to send its labor to work in Oman thus enhancing the Oman-Nepal labor cooperation.

With an aim to boost the Nepal-Austria bilateral ties, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Austrian Federal Economic Chamber (AFEC) had also signed a MoU on October 31, 2017.

The new collaboration will focus on enhancing private sector collaboration for promoting trade, commerce and technology transfer between the two countries.

Here, it is noteworthy that the leftist alliance, which will form the next Nepali Government, has recently announced that the new Nepali Government will maintain Nepal’s diplomatic relations with neighboring nations based on independent foreign policy.

Politics

2017 has changed the political landscape of Nepal and has, in fact, emerged as the game-changer year for the country.

Local-level polls and legislative polls, the most-awaited elections for Nepal and its citizens, were successfully held in 2017. These elections were held in the country for the first time in the last 20 years.

The local polls were held in three phases with the first two phases on May 14 and June 28, and the third phase on September 18, 2017.

Another major milestone for Nepal is the two-phase country’s parliamentary and provincial polls held on November 26, 2017 and December 7, 2017, respectively. In this election, Nepali politics saw major political shifts with the Communist alliance winning the game finally to form the next government.

Interestingly, the red flag (left parties) registered grand victory in both the landmark polls of Nepal.

Next

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Recent floods in mid-August 2017 have severely impacted Nepal’s economic activity, said the World Bank in its recent-released report.

“Nepal’s economic activity, which was expected to progress well in FY 2018, has been impacted by another natural disaster,” highlighted the World Bank report titled- Nepal Development Update.

Citing to its semi-annual assessment of economic performance, the World Bank informed that the recent floods in mid-August 2017 have hit 5 percent of the country’s overall population with several districts recording the heaviest rainfall in 60 years.

World Bank termed the recent floods as ‘the third major shock in three consecutive years’ as it informed that the floods and landslides have affected over 1.7 million people, houses, bridges, roads and other infrastructure.

According to the report, the damage caused by floods is likely to affect agriculture, economic activity and poverty reduction efforts of Nepal, even up to FY 2018.

“Over 80 percent of land in the southern Tarai, country’s food basket, was affected. Estimates of destroyed crops at 64,000 hectares will likely lead to a weak agricultural output in FY 2018,” the report noted.

While the estimates of damages remain preliminary, the growth for FY 2018 is expected to be lower than earlier forecasted and moderate thereafter, in line with the potential averaging 4.5 percent in the forecast period, it added.

World Bank releases the Nepal Development Update twice in a year, bringing out issues to be addressed for the overall development of Nepal.

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“As Nepal prepares for an ambitious shift from a unitary to a federal system of government, closer attention to sequencing political, financial and administrative decentralization will be key,” stated the World Bank in its latest report titled ‘Nepal Development Update’, released on September 17, 2017.

It further said that the country’s new fiscal federalism system is suggesting marked asymmetry between stronger decentralization of spending responsibilities and relatively unchanged low decentralization of tax collection powers. “Similar imbalances hold true between regions across the country,” it added.

According to the World Bank, a large proportion of Nepal’s federal spending would likely be passed on to subnational governments starting from FY 2018. It says such a move would lead to increased public spending in the country.

Commenting on the case, Takuya Kamata, the World Bank’s Country Manager for Nepal said, “The subnational governments will play an increasingly critical role in Nepal’s public expenditures. A system of fiscal transfers that is designed for transparency and predictability and supported by a small set of simple rules could go a long way in helping meet the development objectives of federal Nepal.”

On the other side, the World Bank also cautions that unaddressed issues in the new federal system might challenge the budget execution, especially in the coming fiscal year.

According to the report, recent floods in mid-August have largely impacted the rebounding economic growth of Nepal.

Budget Expenditure, a Perennial Problem in Nepal: World Bank

The latest update pointed at the issues related to Nepal Government’s budget planning.

“More than 60 percent of the capital budget was spent in the last quarter of the fiscal year, while expenditure remained significantly below the planned budget, a perennial problem in Nepal. The era of balanced budgets has ended with the fiscal deficit reaching an estimated 3.3 percent of GDP in FY 2017 and expected to increase going forward as well,” the Nepal Development Update said.

With regard to trade, the report noted that the country’s import growth remains strong, while exports and remittances are expected to remain sluggish.

The World Bank releases the Nepal Development Update twice in a year with a prime focus on the country’s economic development over the preceding months, placing them in a longer-term and global perspective.

This report is for the business community, policymakers, analysts and professionals engaging in economic debates related to the country and the public.

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Recent floods in South Asia have not only hit the public and infrastructure, they have also shown a severe impact on endangered species of the region, displacing many of them.

Intense flooding swept away endangered one-horned rhinos of the Chitwan National Park (CNP), one of the main habitats of endangered one-horned rhinos hosting 606 of the total 645 one-horned rhinos of Nepal, into different areas of West Champaran District of Bihar (India).

With this, forest officials of Nepal and experts from Bihar began their joint rescue operations in search of missing rhinos of Nepal that were swept away into India, informed the Chitwan National Park (CNP) authorities on September 04, 2017.

Authorities further informed that they have so far rescued eight rhinos (three rhino calves and five adult rhinos) and are still continuing their search suspecting more such cases.

“Eight rhinos have already been rescued, but there could be more stranded in India. So, we have been searching for them,” said Nurendra Aryal, Assistant Conservation Officer, CNP.

According to the forest officials’ estimates, around 15 rhinos were swept away into different parts of Bihar due to heavy floods caused by the River Gandak or Narayani in Bihar and Nepal from August 12, 2017. However, there is no information on the status of remaining rhinos.

“At least 15 rhinos from Nepal were swept into West Champaran in the floods that came after very heavy rainfall in the catchment area of the Gandak. There could be more. So far, a joint team of around 250 people from Bihar and Nepal has been able to rescue six of them,” said Amit Kumar, DFO-cum-deputy director of Bettiah-2 forest range in West Champaran on September 01, 2017.

World-famous Kaziranga of Assam Badly Hit

Not just Nepal! Kaziranga National Park of Assam, home to the world’s largest population of rare one-horned rhinos and other endangered species, also suffered a major damage due to recent floods.

According to Kaziranga Director Satyendra Singh, rescue teams have recovered 225 dead animals since August 12, 2017, with 15 of them were rhinos (as of September 21, 2017).

“Nearly 200 deer, four elephant calves, four wild boars, two water buffaloes and one porcupine were among the other animals found dead in Kaziranga, which is still 20 percent under water. A Bengal tiger also died in a fight with a herd of elephants. It is possible that due to floods, there was a space crunch and it led to a territorial conflict,” informed Singh on September 21, 2017.

Joint Rescue Operation, A Great Opportunity

Speaking about the joint rescue operation being undertaken by officials of both the countries, Additional Principal Chief Conservator of Forest (Wildlife) of Bihar Bharat Jyoti said, “The joint operation is a great opportunity for us and a progressive step in mutual cooperation between India and Nepal to save wildlife.”

Bharat Jyoti also informed that officials from both the countries are going to discuss trans-boundary arrangements on wild animals, biodiversity and conservation later in September 2017, in New Delhi. Valmikinagar Tiger Reserve in Bihar and Dudhwa National Park in Uttar Pradesh are contiguous to the forests in Nepal, he added.

A team of veterinary and CNP officials have been in India since August 15, 2017 and a joint team of more than 250 people from Bihar and Nepal were in search of missing rhinos (as of September 01, 2017).

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In the light of recent floods that affected South Asia, the United Nations International Children’s Emergency Fund (UNICEF) has released a report highlighting huge loss of children across the region due to the disaster.

16 million children were affected by massive flooding in South Asia, with millions more at risk, informed UNICEF’s latest press release on September 02, 2017. According to the release, all these affected children and their families are in urgent need of life-saving support.

Jean Gough, UNICEF Regional Director for South Asia, said, “Millions of children have seen their lives swept away by these devastating floods. There is a danger that the worst could still be to come as rains continue and flood waters move south.”

Country-wise Data of Child Victims

Country-wise data in UNICEF’s release shows:

• Around 3 million children (out of the total 8 million victims) in Bangladesh, with an estimated 696,169 houses, 2,292 primary and community schools damaged by floodwaters. Apart from this, more than 13,035 cases of water-borne diseases were also reported
• 680,000 child victims (out of 1.7 million victims) in Nepal, with more than 185,126 homes and 1,958 schools damaged, thus affecting the education of 253,605 children
• Four Indian states in northern India saw 12.33 million children out of the total 31 million victims, with around 805,183 houses (partially or fully) and 15,455 schools damaged, disrupting the education of nearly one million students

As an Immediate Support

In Nepal, UNICEF is working in collaboration with the government departments and other partners to launch and scale-up its relief measures for flood victims. The organization is planning for an intensified immunization programme in 16 flood-affected districts. A special focus will be laid on measures related to control Severe Acute Malnutrition.

UNICEF has so far provided over USD 320,000 worth relief material for Health, Nutrition, Water Sanitation and Hygiene (WASH), Child protection and Education activities as an immediate support to Nepal’s flood victims.

In Bangladesh, UNICEF is preparing to provide emergency education services to around 6,000 children immediately. Apart from that, it is also establishing temporary transitional schools, learning spaces and organizing boat transportation for children and teachers for their commute to schools.

UNICEF is also undertaking relief and rescue measures in flood-affected Indian states.

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Contaminated environment caused by floodwaters is posing serious health challenges to hundreds of people across various flood-hit regions of Nepal.

Viral infections, fever, common cold, diarrhoea, headache and skin diseases are seen in common among the public of Tarai, Rautahat, Parsa, Dhading, Sindhuli, Bara and other districts.

In Saptari, around 25 people are suffering from diarrhea. Jageshwor Raya, a local, informed that people in the region are falling sick because of drinking contaminated water from tubes and are also not getting on-field medical assistance.

An official from Siraha District Health Office informed that health facilities in the district are witnessing around 50 viral fever cases every day. The Bardiya District Hospital is also witnessing more than 50 patients at its emergency unit.

Meanwhile, the number of patient visits to the Sindhuli District Hospital has also increased from 40 (earlier) to more than 300 patients (currently).

This situation exists despite the efforts of concerned district health officials and local authorities in running medical camps in the flood-hit areas.

According to the health officials, recent floods have contaminated almost all the water sources thus giving rise to public health issues. Most of the sick are those who have been living in temporary shelters after the floods destroyed their houses, they informed.

80 Percent Victims Diagnosed with Viral Illness

Dr Udaya Narayan Singh of Narayani Sub-regional Hospital informed that nearly 80 percent of flood survivors were diagnosed with some form of viral illness at the medical camps run by the hospital at the flood-affected areas recently.

“Of the total number of patients reaching hospital, around 20 per cent are children,” said Dr Krishna Lal Upreti at District Hospital, Dhading.

Dr Lochan Karki, who was involved in one of the medical camps in a flood-affected village, termed water contamination, poor hygiene and exposure to elements as the major causes of disease outbreak.

Property Worth Rs 440 Million Damaged

Floods wiped out three key irrigation projects in Saptari causing a damage to property worth Rs 440 million.

According to Chandra Irrigation Management Division Office Saptari, Koshi Pump Irrigation System, Chandra Irrigation System and Koshi Western Distribution Irrigation System were the projects that suffered the damage.

Chief of the Office Prasunna Mishra informed that they could not carry out the repair works due to budget shortage.

MoAD Announces Subsidy for Flood-hit Farmers

Meanwhile, the Ministry of Agriculture and Development (MoAD) announced a subsidy package worth Rs 1.25 billion for the flood-hit farmers of Tarai region.

Under the same package, MoAD has also announced Rs 250,000 assistance for the construction of a food market in every flood-hit district to ensure market access to the agricultural produce.

The government also announced Rs 50,000 assistance per hectare to the farmers, who suffered losses in fishery, to purchase fishlings and reconstruct their ponds.

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In the light of the flood situation in Nepal, the Office of UN Resident Coordinator Nepal has released a report titled ‘Flooding Response Plan (August 2017-February 2018)’, wherein, it sought global attention for supporting flood victims.

Under the plan, the Office aims at offering humanitarian assistance to around 1.7 million victims hit by the recent floods across 35 districts of the country.

As part of relief measures, the Office informed that the Humanitarian Country Team (HCT) is seeking USD 41.4 million to provide immediate humanitarian assistance to support the flood victims over the coming six months, under various sectors including Health, Nutrition, Water Sanitation and Hygiene (WASH), Food Security, Protection, Shelter, Livelihood, Education and Early Recovery.

Sector-wise Funding Requirements

• USD 8 million assistance separately for WASH (targeting 800,000 people across 13 districts) & Nutrition (to cover 1 million people across 18 districts) and USD 3 million aid for Education sector (to cover 79,000 children and 1,975 teachers) from UNICEF
• USD 6.85 million Food Aid from World Food Programme (WFP) targeting 300,000 people across 10 districts
• USD 4.5 million from Food and Agriculture Organization (FAO) targeting 300,000 people across 10 districts
• USD 4.12 million from the International Federation of the Red Cross (IFRC) to support 300,000 population across 5 districts
• USD 3.4 million Early Recovery assistance from United Nations Development Programme (UNDP) targeting 1.7 million across 10 districts
• USD 1.78 million Health assistance from WHO targeting 1.7 million population across 30 flood-hit districts
• USD 900,000 Protection assistance from UNFPA targeting 200,000 people across 11 districts
• USD 750,000 assistance from International Organization for Migration (IOM) for Camp Coordination and Camp Management (CCCM) targeting 300,000 population across 7 districts
• USD 100,000 from United Nations Resident Coordinator’s Office to support Humanitarian agencies and the Government of Nepal targeting 35 affected districts

Initial Rapid Assessment of Flood Situation

The Office, in its Initial Rapid Assessment (IRA) conducted across 28 districts, concluded that 1.7 million population was affected by the flooding in Nepal, with almost 65,000 houses destroyed, 460,000 people displaced, an estimated 19,000 people currently residing in informal displacements sites including schools and some 40 communities remaining inaccessible.

The recent floods have badly hit the country’s critical infrastructure, said the report, informing that around 80 schools across 28 districts (710 damaged) and 10 health posts (64 partially damaged) were destroyed. Around 64,000 hectares of standing crops have also been destroyed in the 10 worst-affected districts of the country.

According to the report, this situation will affect communities’ livelihood and compromise food security, as food stocks have also been destroyed.

In terms of public health, the report informed that nutrition needs have increased since the onset of flooding with the average rate of global acute malnutrition (GAM) now beyond critical levels.

This situation will likely deteriorate further amongst children under five and pregnant and breastfeeding women without emergency measures, it added.

According to the report, the governmental efforts including deployment of 27,000 security personnel and civil servants for measures and providing more than USD 11.3 million fund assistance could not completely suffice the humanitarian needs caused by the crisis.

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