Silent revolution

Great things are happening in rural Nepal unknown to the media fixated on politics.

A cursory look across many towns and villages across eastern Nepal offers a promise of social and economic transformation. Sleepy bazaars have become bustling towns, villages on the periphery are fast becoming a sort of suburbs—thanks to improved road connectivity, expanding internal markets, rising commodity and land prices, and above all, a rise in the purchasing power of average Nepalis with increased flow of remittance. Of course, the trend isn’t limited to eastern Nepal; but given the presence of better infrastructure and basic services, the region is better poised to make a leap.

A recent report by the Asian Development Bank (ADB), The Rise of Asia’s Middle Class, has quantified the size of Nepal’s middle class at 23 percent of the population (or 6.1 million people). Middle class is defined as having a daily earning of between US$ 2-20. Though the income categorisation appears somewhat faulty, there is no denying that Nepal’s middle class is rising. The rise has been contributed by more than one member contributing to the family income. Even for farmers, traditionally the poorest segment of the population, farming is not the only source of income generation anymore. Remittance has played a key part in slashing the poverty rate. Its contribution to the GDP is over 23 percent.

With a steady cash flow from many income sources, today an average village cooperative boasts over Rs 1 million in deposits—an amount that can easily be used for cooperative businesses. A high unemployment rate is also sowing the seeds of entrepreneurism

among youth. Gulf returnees are bringing skills, and most importantly, the work ethic and discipline to toughen it out, which is required for entrepreneurial success. There needs to be a proper empirical study to ascertain the depth of this silent transformation taking place. But the general discourse is still dictated by Kathmandu-centric politics and the media’s urban-centric coverage.

Even at the local level, everyone complains about the political situation and the impact of a protracted transition on employment generation and business opportunities. Desperate talk about wanting to go abroad for employment and settlement is not uncommon, yet what is also becoming common is educated youth taking up self-employment or start-ups.

An acquaintance was a teacher at a higher secondary school in Kavre. He gave up his job and returned to his native Jhapa to take up cattle rearing and supplying milk to local dairies. He says it is harder work, but more money as well. Another individual I know went through various jobs without much success before starting a successful poultry farmer’s cooperative. Today, the farmers themselves run

some of the meat stalls—removing the middle man who exploited them. Though he still complains about lack of a supporting environment, he isn’t thinking about quitting. In fact, he is thinking of expansion.

For every success story, there are many busted ideas; yet this process is making Nepalis more adaptive to the changing situation. Reinventing yourself to fit a different career mould is not an easy task. But as career counsellors will tell you, those who do it have a higher chance of staying afloat even during the rough and tumble. Employment in the Gulf countries is also providing much needed international exposure to Nepalis from even the most remote part of the country. Many return home with some cash after a few years inspired to set up their own start-ups.

Though high migration from villages to urban centres and even abroad is still the norm, reverse migration is also taking place as road connectivity has pushed up land prices even in the hinterlands. Subsequently, many entrepreneurs who had left their villages are suddenly seeing more business opportunities in small towns and villages than big cities. There is tremendous room for growth for both small businesses and services even in the current environment. Of course, not all is well.

Prospects for large-scale industrial revolution remain hobbled by rising costs of production and transportation, trigger-happy unions and acute power shortages, among many other problems. Even by a regional comparison, we are not doing as well as we should be. Bangladesh on average is doing better than us despite the many problems it faces. But that doesn’t take away the fact that even during the insurgency period, the Nepali economy achieved a steady growth and continues to do so. Much of the social and economic changes are taking place despite the government.

Unfortunately, Kathmandu-centric politics continues to hijack public discourse even though the pace of social and economic change in the towns and villages provides a real basis to underpin a true revolution. But with a new-found focus on infrastructure development in Kathmandu, the tone for economic development is being set right, though belatedly. New highways are in the pipeline, connecting remote parts of the country.

The budgetary allocation for infrastructure development this year stands at Rs 37.19 billion for roads, drinking water projects and housing programmes. Of this amount, Rs 27 billion, including Rs 2.51 billion for maintenance, was allocated for roads and bridges; while Rs 4.83 billion went to drinking water and Rs 3.2 billion for housing programmes.

Of these, the Mid-Hill Lokmarga connecting Chiyabhanjyang in Panchthar district

in the Eastern Region with Jhulaghat in Baitadi in the Western Region is close to completion. The 1,770 km long highway links at least 23 hilly districts across 12 zones. The road passes through Panchthar, Dhankuta, Bhojpur, Khotang, Okhaldhunga, Udaypur, Sindhuli, Kavre, Bhaktapur, Kathmandu, Dhading, Chitwan, Tanahu, Kaski, Parbat, Baglung, Rukum, Surkhet, Jajarkot, Dailekh, Achham, Doti, Dadheldhura and Baitadi districts. The proposed 7.5-m wide road will connect the eastern part of the country with the west, thus stimulating growth and providing market access to agro products.

The degree of change may vary from region to region and district to district, but the form of change is similar across Nepal’s 4,000 villages and adjacent small and big towns. If the preoccupation in Kathmandu can be diverted from self-defeating politics, the situation is ripe in Nepal for a major transformation.