50 Millionaires

Nepali architect - Arniko in Miaoying Temple (Photo credit: Wikipedia)

Russia hosts the largest cluster of Nepali millionaires in the Nepali diaspora. By some counts there are about 30 millionaires based in Moscow. These are all self made people. And so you can not argue the NRN leadership has been dominated by wealth.

For the first time NRNA USA has some semblance of existence. There are thousands of members, there are duly elected leaders. But NRNA USA is still no close to aspirations of global leadership.

For me it is less about the NRNA organization and more about Nepal’s economic growth as it can be projected over the next three decades. I did full time work for Nepal’s democracy movement in the 2005 period. Subsequently I put full time work into Nepal’s Madhesi Movement. And I have moved on. And now the issue is economic growth.

You can’t build a successful company as an act of charity, or by thinking about a particular country. Entrepreneurship responds to its internal forces. It is a high risk venture. You have to respond to the market forces. And it is not like I don’t think about me or my family. But I do also have one eye on Nepal.

To me more important than membership drives of the NRNA is the quest to see at least 50 millionaires among the Nepalis in NYC. That is the only meaningful way the Nepalis in America, more specifically New York, can not only hope to provide global leadership to the NRNA but, more importantly, make meaningful contributions to Nepal’s economic growth. So I look more for aspiring entrepreneurs than neta types. A few I might team up with, many I would just want to stay in the loop with.

You have to be in a position to personally invest, you have to be in a position to guide global investments into the Nepali economy, and then you can also hope to collectively propose policy changes that are so fundamental to letting the economy in Nepal bloom to its rightful size.

Working for Nepal’s democracy and Madhesi movements cost me money. I had to eat into my savings. But this next phase is about making money, about creating some serious personal wealth.

I don’t have much taste for old economy ventures. That is not a stamp of disapproval. The richest Nepalis in the city today have all made their money in the old economy. But I am grounded in software, and my ventures are new economy ventures. I find high tech exciting. Down the line that also makes room for clean energy ventures.

Building an ambitious company in a city like New York necessarily means you are going to aim for a global customer base, or at least a globally diverse customer base. That necessarily means you are going to have to build a globally diverse team. You can not have an all Nepali team trying to serve a global customer base. So you build your company following rules that are best for the company’s growth. And you contribute to Nepal’s economy to the best of your abilities, according to rules that best serve the purpose.

New York City is greatly suited for building great companies, especially multi-national corporations. The infrastructure here - and I don’t mean just the trains and buses - is optimal. It has a well developed financial marketplace. You count your blessings and you make your moves.

I have my tech startup, an Augmented Reality Mobile Game. That is recent, and it is pre-launch. I have had my tech consulting firm for years now. I have a strong bias in that I like working with tech startup type clients. Usually I just build the basic prototype. In rare cases I also end up taking a bigger role. I bring more than tech to the table. I also bring my knowledge of tech startups. I have been building a network for fundraising among professional investors for years now. But you can only cash on it if you have built the right company with the right kind of growth rates. Read: wild growth rates. Investors are business people. They invest because they think you will grow their money.

Nepalis in New York should be able to outdo the Nepalis in Moscow. And entrepreneurship is that route. I happen to believe entrepreneurship is for everybody. I am a big fan of network marketing, for example. Because it allows a venue for entrepreneurship even among the low income Nepalis in the city. Or you could invest 5K, 10K in a tech startup. A successful tech startups would give you returns that land in Kathmandu simply can not. Owning a small equity in a high tech venture beats owning real estate in Kathmandu.

The message of entrepreneurship goes hand in hand with the message of dual citizenship, and I don’t mean the watered down dual citizenship that the politicians in Kathmandu are talking about. They are trying to create a second class citizenship for the NRNs, like they already have for the Madhesis in Nepal. That is a no no.

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One Eye On Nepal

A tech startup launched partly or fully by Nepalis that might manage to raise 100K or 200K from among Nepalis in the first round, also called seed round, or friends and family round, if it does good work positions itself to raise north of a million dollars in its second round from professional investors. But it would be hard, probably impossible, to raise a million dollars from among Nepalis.

There is a flip side to that coin. Say that tech startup does well and ends up with a valuation in the 100 million dollar range in five years. Interested Nepalis either invested in the first round or did not invest at all. Because round two onwards you have to be a licensed investor to invest. You can’t come into rounds two, three or four.

Granted a tech startup is high risk behavior. Bottom line, it could fail. You could lose your money as an investor. But I can’t think of a better vehicle than a tech startup to start tapping into the robust capital markets in this city, the finance capital of the world. And unless you are a successful entrepreneur, you have no moral standing to make any meaningful contribution to economic growth in Nepal. Lecturing goes only so far, you have to be in a position to make meaningful investments. In this era of globalization and the Internet one can hope to make major contributions to Nepal’s economic growth, even if it might be 10,000 miles away.

Let’s say you invest 5K in a tech startup that goes on from a million dollar valuation in round 1 to a 100 million dollar valuation in about five years. Your 5K just grew to half a million dollars. It can be argued that is retirement money. A 500,000 dollar trust fund could generate 50K every year forever. It could be set up that way. As in, your half million stays intact. And you are netting 50K a year forever. 50K a year is not fancy, but it can be if you were to choose to spend all your money in a country like Nepal.

By that token a 10K investment would bring you a million dollars in that startup. A 20K investment would bring you two million dollars. A two million dollar trust fund would bring you 200K every year. That is rich!

What if you invested 5K each into 10 startups and only one of them hit it big? Your 50K still became half a million.

By one count there are 30 millionaire Nepalis in Russia. Shesh Ghale is in Australia. No matter which way you look, Nepalis in America look to be in a bad shape. America should have minted more Nepali millionaires than any place else. But that has not happened because not enough Nepalis in this country have gone into entrepreneurship. I happen to think that is a shame.

In Russia you could have bought factories for cheap when the Soviet Union collapsed. In Australia I guess real estate and education were key. But in the American economy high tech is the way to go. Old economy companies make money but not wild money. The beauty of software is it allows you to cash on your old economy expertise. I believe many software companies like Uber and AirBnB are yet to be born, companies that will target major inefficiencies in the old economy at large scales. Both are multi-billion dollar companies.

Clean energy is another way to get on the cutting edge. Finally Nepal might start making some big moves in a few years. I think there is room to build multinational corporations that do business globally, but also are deeply engaged in Nepal’s hydro sector.

The other day I was at a rooftop party in Manhattan and I came across this guy who had a biotech background who was doing Big Data for some big bank. He was not cashing in on his biotech background, not yet. But just like there are intersections between software and biotech, there necessarily are intersections between clean energy and software.

Risk taking is the top quality entrepreneurs share. Risk taking is more important than smarts, more important than a great work ethic. Sometimes you simply have to jump in and let the chips fall where they may. No risk, no gain.

But to the ablest of entrepreneurs, it probably does not feel like risk taking. To those watching, it might look like risk taking. But the best of entrepreneurs move with the assurance of a sleep walker. Just like I think of New York City as not part of America, but a whole different country altogether, I think entrepreneurs are a whole different species.

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"Nepal can become a developed nation by supplying power to India."

English: Image of Narendra Modi at the World Economic Forum in India (Photo credit: Wikipedia)

"Nepal can become a developed nation by supplying power to India."
- Narendra Modi

The government of India formally claims it has better relations with Nepal than any other country in the world. It is also true that India-Nepal have a deeper relationship than any two neighboring countries in the world, US and Canada included.

But recently as soon as news surfaced that India was trying to enter into a power trade agreement with Nepal a lot of leaders and commoners in Nepal gave a knee-jerk reaction. There was deep suspicion and mistrust. India was accused of all sorts of wrong motivations.

Where does that come from? It is very important to get to the bottom of it. Because therein lies the key to ending poverty in Nepal.

I think that parody of false nationalism is everything to do with the fundamental incompetence of the leaders of Nepal, be they political or in the bureaucracy.

When a government sends you a draft proposal, the right thing to do is to take it through wide debate and consultation among the elected leaders of the country. The parliament would have been a good place. But to date the letter of the agreement has not been made public yet, not to my knowledge. So what were the false nationalists reacting to? Nothing they had read.

You do homework months in advance to make concrete gains in a Prime Minister level meeting. You make counter proposals to any proposals. You negotiate.

India renegotiated its 1950 like treaty with Bhutan. I am sure it would be willing to do the same with Nepal. Is the 1950 treaty an issue? But not even the Maoists brought that up with India when they were in power. And they waged a decade long civil war on that (and other) issue.

Nepal is not a landlocked country. It is an India locked country.

Just like blaming India for their own incompetence and inadequacies is a staple among many Nepali politicians, the anti-Madhesi prejudice and hatred and systemic marginalization falls in the same category.
India allays Nepal’s fears over hydel proposal

the proposal was a draft for discussion “and would require bilateral negotiations prior to finalisation.” Both sides are free to propose amendments or modifications to the draft ..... Mohan Baidya said that news reports about an export-oriented PDA (power development agreement) with India, “instead of scrapping the already existing unequal treaties on Koshi, Gandak, Mahakali, Upper Karnali, Arun III, High Koshi Dam and Upper Marsyangdi, has come as a shock to all patriotic Nepalese people.” ...... The controversy over the draft has been brewing for several days now. Both the ruling and the opposition parties have come together to oppose it.

A new beginning with Nepal

No two neighbouring countries enjoy a more intimate and a more complex relationship than India and Nepal. India is where Nepalis come to study, work, spend holidays, plan weddings, invest in a second home; yet, India is also blamed for being insensitive, for meddling in Nepal’s internal affairs and often, for taking Nepal for granted. ...... accumulated cobwebs of mistrust ..... the 1950 India-Nepal Treaty of Peace and Friendship. Most Nepalis are unaware that it was Nepal that had wanted this treaty, in order to maintain the special ties with independent India that it had with British India. Nepal’s security concerns had been heightened by the Communist revolution in China and its takeover of Tibet. The treaty provides for an open border between the two countries and allows Nepali nationals to work in India without a work permit, to apply for government jobs and the civil services (except for the IFS, IAS, and IPS), to open bank accounts and buy property. Incidentally, India had waived its rights under reciprocity as a sign of goodwill. The provisions of the “secret” side letters to the Treaty, which required Nepal to consult India on its defence requirements, which Nepalis perceive as unfair and which are often used by politicians to whip up anti-India sentiment, are no longer secret or even observed. ...... Today, the open border is used by Pakistan to infiltrate terrorists and pump in significant amounts of fake Indian currency. Although India has agreed to review and update the treaty, every time the matter is taken up, Nepal sidesteps the issue. ......... accumulated resentment over the 1954 Kosi Agreement and the 1959 Gandak Agreement, cited by successive Nepali regimes as unfair, has rendered progress on hydel cooperation impossible. Three mega-projects — Saptakosi with 5,000MW, Karnali-Chisapani with 11,000MW, and Pancheshwar with 6,500MW — have been languishing for 30 years. When the hydel sector in Nepal was opened up to the private sector, Indian companies (including Tata Power, LANCO, GMR, Jindal, IL&FS, L&T, and GENCO) won 27 survey licences for projects ranging from 100 to 1,000 MW each, but not a single one is even close to beginning construction. ........... help unlock Nepal’s hydel potential, making it one of the richest countries of the region ..... Two-thirds of Nepal’s foreign trade is with India which also accounts for half of Nepal’s foreign direct investment. The Nepali currency is pegged to the Indian rupee. Over the years, India has built highways, optical fibre links, medical colleges, trauma centres, polytechnics, schools, health centres, bridges, etc. For flood protection and embankment construction in Nepal, India provides more than Rs.75 crore annually. To facilitate the movement of goods and people, India is providing Rs.270 crore to build four integrated check posts on the border, Rs.650 crore for extending two railway links out of the five proposed, and Rs.700 crore for the first phase of rebuilding old postal roads in the Terai region. In addition, there is a second EXIM Bank Line of Credit for $250 million available and another $125 million for the power transmission line upgrades. About Rs.1,300 crore is disbursed annually to the 1.25 lakh Indian Army pensioners in addition to other welfare schemes. The provision of iodised salt, conducting cataract and trachoma camps, gifting of ambulances and school buses in the remotest of Nepali villages are initiatives that have made a difference to life in rural Nepal. ........ some Indian political leaders would push for supporting the Madhesis who enjoy a close kinship with Indians in north Bihar and Uttar Pradesh. ..... Nepali leaders publicly adopted anti-India postures — an approach started by the Palace in the 1950s and adopted particularly by the Left parties as a means of demonstrating “nationalist credentials.”

Nepal hopes for deal on power trade

The three-member panel consisting of Nepal’s Finance Minister Dr. Ram Sharan Mahat, Mr Bhim Rawal of the CPN-UML and Mr Narayan Kaji Shrestha of the UCPN (Maoist) had prepared a draft of the power trade agreement (PTA) for the two governments’ consideration. They had suggested that two countries come to an agreement only on power trade and its transmission. However, an Indian draft that suggested an integrated approach to Nepal’s power development – including hydropower and other forms of renewable energy – was heavily criticised here, forcing Indian Embassy to issue a clarification.

Modi meets Koirala, three agreements signed
A new template for India-Nepal ties

Indians and Nepalese share a common culture and terrain south of the Himalaya. Bound by languages and religions, marriage and mythology, the links of their civilisational contacts run through Lumbini to Bodh Gaya, Pashupatinath to Kashi Vishwanath, and Muktinath to Tirupati. At the people-to-people level, relations between India and Nepal are closer and more multifaceted than between India and any other country. Many partisans of Nepalese democracy also fought for India’s freedom, for which they were jailed by the British, including Matrika Koirala, B.P. Koirala, and Man Mohan Adhikari, who became Prime Ministers of Nepal........ Many Indians believe independent India never had foreign combat troops deployed on its soil. Nepalese troops were the exception. Aside from those recruited to India’s Gurkha Regiment, an outsized Nepalese Army brigade drawn from all its 18 regiments was loaned to India in 1948-49, when Indian troops were deployed in Kashmir and for the integration of Indian States. The commanding officer of this force, General Sharda Shamsher Jang Bahadur Rana, was the son of the then Prime Minister of Nepal, Maharaja Mohan Shamsher Jang Bahadur Rana. Yuvraj Karan Singh’s marriage to Yasho Rajya Lakshmi, Sharda Shamsher’s daughter, was arranged during the General’s stay in India. ..... In spite of per capita income levels declining towards close to half of India’s average, Nepal has done better than India on several Millennium Development Goals (MDG), including infant mortality, maternal health, child malnutrition and poverty reduction rates.... Having developed the confidence over the past decade to be able to work with any democratic electoral outcome in Nepal, India has kept the day-to-day bilateral institutional mechanisms in play. ..... These include defence cooperation and supplies, trade access and transit facilitation, river protection works, augmentation of electricity supply during the lean season, Exim bank credit for the infrastructure sector, and development projects, including construction of Terai roads, integrated check points at important border crossings and cross-border rail links. Many of these need a strong push from the two governments to speed their implementation. There exists excellent two-way cooperation between the respective security agencies to deal with difficult cross-border issues such as terrorism, smuggling (including of fake Indian currency notes), and trafficking. ..... India has been ready to receive Nepalese proposals to revise the antiquated 1950 Treaty of Peace and Friendship — unequal principally because of the one-way privileges it accords to Nepalese nationals living and working in India. Other tasks include resumption of the Boundary Working Group, signing of the finalised strip maps, and signature or ratification of a host of treaties and letters of exchange ranging from extradition and mutual legal assistance to transit, railways and communications. ........ About a fifth of Nepal’s 28 million resident population lives and works in India. The open border is a “safety-valve” for Nepal. ......... Mr. Modi would do well to propose easing remittances and exchanging currencies, reducing telephone calling costs (calls from India and Nepal to Europe or the U.S. cost less than between the two neighbours), expanding educational opportunities, ensuring more dignified border crossings, increasing cross-border social and cultural linkages, improving road and rail transportation links, relaxing rules for border trade for private consumption, better managing the Das Gaja land at unmonitored border crossing points, and improving coordination between the respective border district officials for prompt resolution of local issues. ....... The big idea on the table is for Nepal to simply tap power from the enormous body of waters that flow into the Bay of Bengal. Hydropower generation in Nepal is, unbelievably, less than half per cent of what can be produced. Nepal can become, by far, the richest country of the subcontinent, on condition that it harnesses this resource. There is recognition in Nepal today that this can transform the social and fiscal dynamics of Nepal by its employment, energy and revenue generation potential. ....... If Nepal awarded production licensing for the development of over 8,000 MW of electricity offered eight years ago to independent power producers on the basis of competitive international bidding — most of them run-of-the-river projects avoiding large-scale inundation, displacement, compensation issues and ecological surprises — at the current rate of investment of $2 million/MW, the foreign direct investment (FDI) could be a staggering $16 billion. Compare this to the $350 million actual inflow of FDI into Nepal over the last 23 years. The free power for Nepal, at a conservative rate of 12 per cent just from these projects, will be more than Nepal’s total current production, besides free equity, royalties and taxes that will flow to its exchequer. If half of Nepal’s hydro potential was to be harnessed, annual revenues could top $40 billion, over $100 million a day. Mr. Ranganathan said that in 20 years’ time his successor would have to visit Kathmandu to raise capital for the bank and not go to New York or London for it. ......... Other big ideas include Indian partnership in cooperative watershed and environment management for the protection of the Himalayan ecosystem, including soil conservation, re-forestation, and more rational land use for horticulture and bio-agriculture. On connectivity and infrastructure, India could build a road bridge over the Mahakali, extend Eximbank loans and provide viability gap funding for the Kathmandu-Terai Fast Track road, the international airport at Nijgadh and new cross-border power grids. When the hydropower revenues kick in, Nepal could build an East-West railway (prospected by RITES), along the present alignment of the highway built by India. It could become economically viable the moment it is connected to Kathgodam in the west and Siliguri in the east, significantly shortening the route from north to north-east India.

Will Modi's Nepal visit mark a change in India's water policy?

Controversies surrounding past treaties and deep-seated suspicions have held hostage mega-projects planned on Nepalese rivers that contribute up to 70% of water to India's Ganges during dry season. ...... In the latest reflection of mistrust, Nepalese politics remains heated following a controversy over a hydropower development agreement recently proposed by Delhi. Nepali politicians from both ruling and opposition parties claimed that the proposal was aimed at securing India's monopoly over Nepal's water resources, an allegation India has dismissed....... Delhi also clarified that Kathmandu was free to amend and modify the proposed document. ...... "India-Nepal relations are constantly being upset by insensitivity and blundering on the part of India and hypersensitivity and proneness to misunderstanding on the part of Nepal," former Indian water resources secretary Ramaswami Iyer wrote in the Indian Express newspaper following the latest controversy. ..... five of the 20 most water-stressed cities in the world are in India and the capital, Delhi, is second on the list...... Satellite images have shown that India's underground water tables have depleted to dangerously low levels.

India's Modi offers Nepal $1 billion loan in regional diplomacy push

Modi is on a two-day visit to Kathmandu to help speed up negotiations on a power trade pact that is at the centre of his new diplomatic drive. ..... Nepal's politicians are at odds over the proposed energy pact. Opponents say it would give Indian firms a stranglehold over Nepal's energy resources and bar other countries, like China, from investment in the sector. Modi sought to allay those concerns.

PM Narendra Modi in Kathmandu: India wants a powerful Nepal

Earlier, India had provided USD 250 million line of credit to Nepal through the Exim Bank of India. ..... Modi said India has won no war without the sacrifices by Nepalese soldiers. "I salute those brave hearts who laid their lives for India," he said...... Invoking Sam Manekshaw, the first Field Marshal in the Indian army, Modi said, "Any soldier who says I am not afraid of death would either be lying or is a Gurkha."

Modi pledges $1 billion concessional line of credit to Nepal

The concessional loan will be extended to Nepal through Indian Export Import Bank.

What Modi had for meal today in Kathmandu?
Nepal accords grand welcome to Modi (Photo feature)
Modi mesmerizes Nepal with eloquent speech (with video)
Maze of mistrust

At least since the Treaty of Sugauli between the-then East India Company and the King of Nepal in 1814-1816, suspicion of each other’s intention has remained the fundamental feature of Indo-Nepal relation. All subsequent treaties, exchanges of letters, memoranda of understanding or official transactions have centered around Nepal’s obsession with its sovereignty and the perception in India that unbridled independence of neighboring countries run the risk of becoming security threats. Sasastra Seema Bal (SSB) is a paramilitary agency tasked with patrolling Indo-Nepal and Indo-Bhutan border. This year, New Delhi reportedly hiked its budget to over three thousand crore in Indian Rupees. Since New Delhi has almost no faith in the PEON’s ability to safeguard its security interests, it operates its independent network of informers, intelligence agencies and sundry other operatives. ..... Without planned and massive interventions upstream in Nepal in natural drainages that contribute over two-third of its flow, Premier Modi’s much-touted Mission Ganga has little future. Unfortunately, Himalayas are young; Mahabharata Ranges soft; and the Shivaliks mere protrusions of gravel. Rivers that flow through these unstable terrains are unpredictable at best. ....... In the early-eighties, professors of river engineering in universities of North India often distributed cyclostyled research sheets in lieu of textbooks. Western publications on the subject were considered to be completely unsuitable for unique nature of Himalayan streams. If global funding agencies and engineering corporations haven’t rushed to exploit Nepal’s supposed hydropower potentials, there must be some reasons behind their hesitation. Unlike commercial calculations behind prospecting for petroleum, investment in hydropower requires arrangements of political economy that only the State can guarantee. Premier Modi may think that India can’t wait forever for Kathmandu to make up its mind. Politicos afraid of PDA, PTA, and PPA will soon discover that these alphabet soups are made of carrots. Sticks remain hidden. But Modi is not too well known for exercising restrain in using instruments of coercion. Such fears seem to have made vested interests of hydro-politics even more panicky. ....... The border issue between Nepal and India has been dominated by the worldview of cartographers for far too long. Largely determined by the victors of a war—the East India Company—two centuries ago, boundary along Nepal-India land border resembles zigzag teeth of a rusted saw that cuts through families, cultures, natural habitats and inseparable economies. Plans of ‘regulating’ such a line are fraught with risks of unintended consequences on both sides of the international border. Level of trust, however, is so low that the proposal has begun to get traction in capital cities of both countries. ........ The Nehru Creed and the Indira Doctrine gave continuity to the imperial outlook of British India, which wanted to have the final say in the internal affairs of Nepal. In the name of advancing its security interests, New Delhi never refrained from micromanaging political economy of Nepal. It has created a mindset in Kathmandu that nothing can happen in this country without New Delhi’s nod. ..... When others are seen to be determinants of one’s destiny, three kinds of responses usually surface. ...... A large section of Nepali population has become indifferent. Forced by circumstances to survive in a very challenging situation, they become Jit Bahadur of Gujarat, Teriya Magar in Mumbai or struggle as ‘nearly Indian’ workers in the Subcontinent, the West Asia or Malaysia. This cohort will like India and Nepal to get even closer, but they have little or no say in the political economy of their own country.......There is a group active in administration, businesses, professions, politics and religion that considers complete submission to Indian hegemony as the best method of securing its personal and family interests. Since their stakes are purely personal, they probably do more harm than good........ The most vocal, and probably also most dangerous, are relics of the Cold War era in Kathmandu that continuously spin cobwebs of ultra-nationalism in the mistaken belief that the net will stop the sky from falling over their heads. Administrators and accountants masquerading as hydropower experts; cartographers pretending to be professionals of political boundaries; journalists in the guise of geo-strategic thinkers; consultants and NGO-entrepreneurs wearing hats of environment and humanitarian activists; brokers and dealmakers posing as creators of wealth—almost everyone in the motley crowd of self-declared nationalists deserve separate adjective. Though diminishing, they still have enough clout to sabotage any deal between India and Nepal. ...... Until the silent majority begins to assert, the opportunists lose their influence, or the pretenders have been made irrelevant, no compromise reached between India and Nepal—irrespective of the merit of the deal—will remain uncontroversial. Premier Modi’s visit has given Singh Durbar a unique opportunity to clear cobweb off its ramparts. It will take a little longer to remove meshes of the mind. But when relationships are as intimate as between India and Nepal, it’s best not to rush anything and make haste slowly.

Air-locked

In the past, when Buddha Air, a prominent Nepali carrier, tried to link Pokhara and Lucknow directly, the Indian side strangely declined to provide the necessary consent on the requested additional entry-exit point west of Bhairahawa. The plan had to be scrapped. The proposed Pokhara-Lucknow flight would have been of a 30-minute duration for an ATR-42 aircraft, had a direct routing (as the crow flies) been provided, but the Indian side’s insistence on following the existing airway scuttled the plans as the additional distance that needed to be traversed undermined its financial viability. ...... There is tacit understanding in Nepali aviation circles that this “airway stalemate” invariably has to do with the all-pervading influence of the Indian defense establishment. The Indian Air Force, which is the de-facto owner of the entire Indian air space, and its generals have simply remained unmindful of Nepali side’s repeated concerns to break out of its southward “air-locked”-ness and in all likelihood have been exerting pressure on its civil aviation agencies to turn a Nelson’s eye towards Nepal’s concerns. Agreed, every nation is free to tend to its national security interests in a manner it deems best but this cannot be an alibi to encroach on a sovereign neighboring country’s interest, like those pertaining to matters of civil aviation. Else, the very idea of international cooperation, as envisaged under the aegis of the international convention on civil aviation, stands utterly undermined. ...... With limited available avenues for augmenting its revenue in a sustainable manner, until large scale export of hydropower materializes in the distant future, Nepal could supplement its coffers by opening up its airspace for over-flights to dig into the proverbial pie of ever-increasing east-west air traffic along the Indian subcontinent corridor—i.e., open a parallel airway to those existing over India that connect south-east Asia to Europe. For this too, India’s willingness to designate the necessary entry and exit points, whether existing or additional ones, is essential.

Mending ties

Can this visit truly transform Nepal-India relations making it a model of inter-state relations in the 21st century? ..... Nepal-India ties cut across all aspects of state-to-state and people-to-people interactions. The people-to-people relation is such that “if one side bleeds the other feels the pain”. For instance, 5,000 Nepalis died in the Uttarakhand floods two years ago. That is why as some politicians were protesting the visit of the Indian Ambassador in one part of Nepal, people from the two sides of the border were exchanging flowers in another part to ensure that politicians do not further enlarge the chasm. The people-to-people side to our relations will continue irrespective of what politicians do. This is the strength of our relation and politicians and diplomats should learn from it........ Small events are blown out of proportions with slogans of “national independence” in Nepal or “insensitivity to Indian interests” in India. ..... unnecessary politicization of relations with India poisons the environment on the Nepali side. Indian elites recognize Nepalis as porters, security guards and Maoists. Nepal reels under protracted political transition, instability and stagnation. This is bad for both. ...... With creative thinking the rivers, roads, dams and the open border could produce mega-models of mutual cooperation. ..... Contrary to their perception as ‘anti-Indians’ Nepalis know very well that India is the only foreign country where they can travel freely, get refuge when they get persecuted and land decent jobs. Indians too have tremendous goodwill for their Nepali brothers and sisters. But Indo-Nepal relations suffer from the mindset that is unable to comprehend the vitality, complexity and sensitivity of our relations. To transform this relation the political and foreign policy elites need to be guided by popular aspirations and tremendous potential in harnessing the unalterable closeness of geography and time-honored history of mutual benefit.

The Gentleman from South

The man from south with a white beard should be given credit for not only becoming the most sought after politician of his time but also a fashion icon! ..... Personally too if we look within the country many Nepalis have had higher education in India and most come back to be involved in the development activities here as opposed to those who head towards the West for higher education. ..... The most important gift that Modi can bring is education for aspiring youth of Nepal at the same cost that Indians pay in their universities. We studied that way, but for our children’s education we need to pay in dollars as international students! Why is this so? Where have the long-lasting relation and the provision in the 1950 treaty gone? The other gift that Modi should bring is the answer to the question on why Nepal’s economy is sliding day by day whereas India’s is booming? Since 1950 India has had “friendly” economic ties with Nepal but India has reaped most of the border benefits.

Let's prosper together

She clarified that Nepal is ‘top priority’ for her government. ..... Modi is a role model for ‘development and good governance’ in India. His development formula of 5T—trade, technology, tourism, talent and tradition—was instrumental in his success in recent Indian elections. His friendly relation with China is a reflection of India’s willingness to put economy first, apart from its ‘neighbor first’ diplomacy...... Nepal too has a development formula comprising 5H—Himalayas, hydro-power, herbal, heritage and human resources. ...... Exemplary relationship with India is of importance as Nepal shares 1,800-km-long open border; six million Nepalis are working in India; all our big rivers cross into Indian territory; and we have a whopping trade deficit. Nepal is moving towards economic prosperity for which peace and stability are preconditions. Nepal wants to upgrade its status to a ‘developing country’ by 2022. It is high-time for Nepal to seek economic and development partnership with India. Efforts should be made by Nepali and Indian leaders to build trust and confidence and open up new development prospects for mutual benefit.

Nepali leaders praise Modi's speech in parliament
We are looking for investment not charity

Anyone who does not understand from history is bound to repeat it, goes the famous line. We have been repeating the history for the last 65 years. ..... Unless we undertake mega projects of national interest on the basis of broader consensus, we are bound to fail.

Biz community expecting a lot from Modi visit

I have a clear viewpoint on the issue. If you are hungry, you eat whatever you get. Our total energy demand is around 3,000 MW. Up to that mark, we should not set any conditions. After that, we can renegotiate with India. We should sign PTA with India without further delay.

Inspiring speech by PM Modi in CA/parliament today.
— Ram Sharan Mahat (@ramsmahat) August 3, 2014

PM Modi's appreciation of d peace process,commitment 2 federal republican constitution, cooperation in eco dev,mention of Lumbini notable.
— Baburam Bhattarai (@brb_laaldhwoj) August 3, 2014

Modi stole the show. He talked very high about Nepal’a rich culture, religion and heritage. He proved he is a statesman and a master orator
— Kamal Thapa (@KTnepal) August 3, 2014

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What Is Madheshvad Or Madhesism?

English: A sketch of Mr. Amitab Bachchan (Photo credit: Wikipedia)

English: Amitabh Bachchan photographed by Studio Harcourt Paris Français : Amitabh Bachchan photographié par Studio Harcourt Paris Harcourt Paris (Photo credit: Wikipedia)

CK Lal, I have long maintained, is a world class columnist. I was just reading a thought provoking article by him in Madheshvani. He is talking about Madheshvad. Does it even exist? What is it? He starts by relaying a story of Upendra Yadav claiming at a public function that it does not exist.

Upendra Yadav was established in Nepali politics through the first Madhesi Kranti. For him to deny the existence of Madheshvad is odd. Or plain ignorant.

What is the Madhesh? It is the land gifted by the British to the then Nepali rulers. Otherwise the current Madhesh would have been part of India.

Who are the Madhesis? The Madhesis are the Indian origin people living in the Madhesh. It is a cultural, and not a geographical term. Because, by now, almost 40% of the Teraiwasis are Pahadi. Pahadi is also a cultural term. That includes those who speak Nepali as their first language. That also denotes the Janajatis from the Hills who are now settled in the Terai. The Madhesis speak Maithili (my first language), Bhojpuri, Awadhi (Amitabh Bachchan's first language), Tharu, Urdu, Hindi, Marwadi and so on. The Tharus are very much Madhesi in terms of similarities in language, culture, traditions, and political marginalization. As are the Muslims in the Terai. They are Madhesi.

What is Madheshvad? Madhesvad is the name of the political struggle that hopes to give proportionate representation to the Madhesis in the Nepali state structure. Once that goal is achieved, Madhesvad will linger on as a cultural term. It will mean enriching the Madhesi cultures. Lakhs of Madhesis have been denied citizenship cards. Making sure they get those cards is the most important goal of Madheshvad. The second most important goal is federalism. No to North-South states. Yes to East-West states. No to adding Kailali, Kanchanpur, Jhapa and Morang to the hill states. Yes to keeping all Terai districts in the Terai states. Yes to eliminating some national level ministries. Yes to downsizing the Nepal Army, which is basically a Pahadi Army. Yes to reservations for Madhesis. Yes to Madhesi police forces in the Madhesi states.

So, yes, Madhesvad does exist. That Upendra Yadav says it doesn't shows he was just surfing the wave in 2007. He did not create it.

But Madheshvad is also to do with economic development. Actually, I'd like to argue Madheshvad as an ideology is primarily to do with development. The Hulaki Rajmarg is the backbone of the Madheshvad. Taking the per capita income among Madhesis to global levels is the most important, and the ultimate goal of Madheshvad.

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Nepali Angels

(written for Vishwa Sandesh, the leading Nepali language newspaper in NYC)

I have an impressive track record as a Nepali in New York. I was the only full timer among the 200,000 Nepalis across America to have worked full time for the democracy movement back in 2005-06. It was not journalism, it was political work. It was digital activism. Then I did full time work for the Madhesi Movement a year later. Again, I was the only full timer among the 1,000 or so Madhesis that might be spread across America. That number is so discouraging. It is worse than the Madhesi representation in the Nepal Army, in the Nepali bureaucracy at large. A 1,000 to 200,000 ratio is not healthy. Madhesis are 40% of Nepal, but there is not proportionate representation in the diaspora any more than there is in the Nepali state apparatus. I have little patience with Madhesis with the Panche mindset, even for Madhesis with the Congress mindset. There is too much internalized prejudice going on.

Federalism has not happened yet. State restructuring has not happened yet. The agenda is very much alive. Although I personally feel like I have moved past all that to shift my focus to matters economic. What would be the lifestyle of someone who feels Nepal now needs to focus on economic development like a laser beam for the next 30 years?

Social justice for the DaMaJaMa - Dalit, Madhesi, Janajati, Mahila - is important in its own right, but it is also important because Nepal can not realize its full economic potential unless there is full blown social justice.

If the last election was a mandate for geographic federalism, I stand for Ek Madhesh Do Pradesh. Nawalparasi and west, Surkhet included, because Bhitri Madhesi is still Madhesh, could be a state called Western Terai. Chitwan and east, Udaypur included, could be Eastern Terai. Of course Jhapa and Morang will have to be part of it. You can’t take Surkhet, Chitwan, and Udaypur out of the Terai. Taking Morang, Jhapa, Kailali, Kanchanpur out of the Terai is outlandishly out of question.

Two states in the Terai, and four in the hills would work for me.

The more challenging part of state restructuring is where you eliminate several national ministries, where you downsize the Nepal Army to maybe 10,000 soldiers so as to open up funds for more teachers and health care workers, where you downsize ministries, because a federal setup should end up with at least one third fewer bureaucrats at all levels combined than what we have today. Federalism is supposed to be more efficient than the unitary state.

NRNs argue for dual citizenship the wrong way. They make it sound like they are these deprived people who need to be given their due rights. The truth is NRNs are the cream of the crop even when they go to some place like Qatar to do menial work; you have to at least be enterprising to be able to do that. The case for dual citizenship is that you put that arrangement in place so as to maximize the inflow of Foreign Direct Investment (FDI) into Nepal. I took up Ram Sharan Mahat on this topic the last time he was in the city, and he did not seem to see the connection, and the dude is Finance Minister. Dual citizenship for NRNs truly is the magic bullet that would transform the Nepali economy. In this age of globalization all of the two million Nepalis spread across the world have to be thought of as ambassadors, and not just the less than 100 officially appointed ones.

And that brings me to the cream of the crop among the Nepalis in NYC. I have approached most of them for angel investing into this or that idea. You angel invest so an idea gets fruition enough that it is able to tap into the capital markets in this money capital of the world. But it is like the cream of the crop lack imagination. They don’t seem to connect the dots any more than Ram Sharan Mahat.

There is economic growth, and then there is economic revolution. Growth is around 5% whereas revolution is when you can make the Nepali economy grow at double digit rates year in year out for 30 years. That requires radical thinking, like angel investing.

A high school classmate/housemate of mine in Munich, Germany, across the pond, a biotech guy, recently wired 5,000 dollars to me to invest in my tech startup’s first round, and I am going to help him raise money for his biotech startup’s second round. What goes around comes around.

I highly recommend angel investing.

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