Withdrawal Issues

eKantipur.com reported this morning that even though the tourist arrival has increased this year the overall tourist spending has gone down. I do not know what the reason for this is --it could be the economic slowdown that the rest of the world has suffered, it could be that more students came to Nepal as opposed to families on vacation--it could be a number of things. However, there is one thing that I can say for sure (from my own experience) is hurting tourist spending-- withdrawal limits at ATMs. 

I was in Nepal this summer with a group of American tourists and saw the negative impact of this limit on tourist spending first hand.  Most banks' ATMs around Kathmandu had a limit of NRS10, 000 with a few exceptions (ATM near City Center) of NRS 15, 000 per withdrawal on foreign cards. This means that every time an American, say with a CHASE debit card, withdraws money in Nepal, CHASE charges $5 per transaction. This may not seem like a lot, however, no one wants to pay such high fees. I can tell you that this amount was enough to deter me and many of my group members from multiple withdrawals. This in turn made us go around Kathmandu--Pokhara--Chitwan on a "pseudo budget," reducing our discretionary spending.

I do not know why the banks (may be NRB) would have such a limit on foreign cards--it makes no economic sense! Increasing the limit, or better yet, removing it, will increase the amount that tourists will withdraw and spend, not to mention have a positive impact on the nation's foreign reserves. 

Nepal Unites Against Corruption

First, let me be clear--I am a supporter and a well-wisher of NepalUnites and its various efforts around Nepal and the world. I was an active participant in their programs at Khullamanch, Durbarmarg, Bagmati-Pul, etc. However, I speak-up whenever NepalUnites deviates from its mission, as what it stands for is what attracted me (and many others) to this movement in the first place.

I was happy to see that NepalUnites has decided to carry on their fight against corruption, which I applaud with all my heart. I believe that corruption at every level (ministers to low level bureaucrats) has suppressed entrepreneurship and stifled economic growth in the country.  However, the title  and the t-shirt that they have designed in the name of this program is just plain vile! As a supporter of the movement let me be the first to tell you-- this is offensive! Let me remind the organizers of the program and the designer(s) of the t-shirt what their self stated mission # 2 states: "We provide public space, largely social networking sites, for people to vent their frustration and opinion in a non-violent way."

Take this anyway you want but it is supposed to be a friendly constructive criticism.

India's (Economic) Influence in Nepal

India's contribution (grants and loans) to Nepal's 2011/12 budget as presented by the Ministry of Finance is about 27.6% of total bilateral contributions. Japan contributes 11.34%; China- 6.84%; UK-6.31%; Germany-4.13%; and the U.S. a mere 1.78%.

This should shed some light on why India plays a big role in Nepali politics! 

Going Abroad For Work IS Patriotic

A lot of people talk about the Nepali youth leaving for overseas employment as if they have committed a crime. "If only they would do here what they are not ashamed of doing there," they say while sipping their lattes at Java-- I beg to differ. With the weak and incompetent political system, a corrupt bureaucracy that impedes economic activity and high unemployment rate, there is nothing that these youth can accomplish staying in Nepal. Wanting to go abroad to work, with the knowledge of poor working conditions, sometimes even deadly conditions, should not be ridiculed. In fact, in today's unstable and weak economy (brought about mostly by bad banking policies and a busted real estate bubble) it is these workers who have kept the economy afloat. I have posted the increase in remittance and how it has been the life-blood of the Nepali economy before. The money that they bring back and use for consumption or construction adds to the domestic demand, which helps sustain various local businesses. So, yes, they are patriotic!

eKantipur.com reports that the "worker departure has reached an all time high" with most of the increase coming from an uptick in demand for workers from the Middle East. So, as more and more Nepalese workers head out to other parts of the world to earn an honest living, we should not look at them with disdain. If such feelings start to manifest,  be it at Java, your NGO/INGO office, or in the comfort of Facebook/Twitter, just think of their patriotic action of helping the Nepalese economy and do them a favor-- do your part-- act, politically or socially, to make their life overseas better and safer!    

I am back!

I am finally back in Colorado and getting into the groove of things.

The trip to Nepal was very busy and productive. I was able to participate in many activities including the school program in Mulghat and the first ever Ghintang Dreams project in Kathmandu, Nepal. I will post pictures and the details  of both the projects soon. I hope you enjoyed the few posts that I was able to work on from Nepal. 

I have started to look into the new budget and will post my views soon. 

Kiss The Pig--Update

I visited the primary school in Mulghat, Dhankutta, Nepal this summer and met the principal, staff, and 11 deaf kids that live and go to school there. This is the school that our "Kiss The Pig" program (together with the two Rotary clubs) raised money for in order to build restrooms, bring clean water, and put a new roof. I have shot a few minutes of videos and will post it once I am done editing. I will also post pictures of the one day community service we did at the school. I am very happy and excited to build a relationship with this public primary school in eastern Nepal.