The Nepal Economic Forum team engaged in a conversation with former Swiss Ambassador to Nepal Jorg Frieden, who is also the chairman of SIFEm. He discussed the role of governance, civil society, and entrepreneurial spirit in Nepal’s transformation. Based on his 20 years of experience living in Kathmandu, he shared four key observations regarding what is required for Nepal’s transformation.
Roads serve as an important indicator of governance in Nepal. I was particularly struck by the stark contrast in the quality, maintenance, and cleanliness of the roads. The municipal roads are vastly different from the national roads (or the highways), especially the one that connects Bhaktapur to Dhulikhel. On one side, there are European-standard roads in the cities that were better kept and well regulated. On the other, there are poorly managed, corrupt, and unfinished roads that are crucial for transportation but are built at high cost. This situation highlights the progress at the local levels allowing for critical exchanges while also inducing very high cost as they are built in a very bad manner. This furthermore emphasize the urgent need for change at the central level, both in terms of political representation and effective administration.
Public Spaces in Nepal are ever evolving. Reflecting on my 20 years in Kathmandu, I’ve noticed a significant increase in public areas for exchange and gatherings which were almost non-existent earlier. I am referring to the proliferation of cafes, the sight of locals, especially young people, sitting outside rather than merely catering to tourists. In Dhulikhel, I saw students gathering in restaurants engaging discussions about politics, art, and their lives. Similarly, in Patan Durbar Square, there’s a vibrant atmosphere in the evenings, with many people coming together. While there are some older individuals who perhaps long for the past, it feels like there is an emerging willingness and desire for change, which is an indicator of a more conscious civil society. This shift carries significant social and political implications.
The trends of migration of young Nepalis for opportunities abroad is on the rise. During this trip, I sensed that those I encountered were more self-aware, confident and capable of navigating complex procedures related to travel and work. They are better educated and possess high sense of self-assurance. However, it is disheartening to see that despite the country’s reliance on migration, migrants are treated poorly upon their return. The new airport arrangements could be extremely humiliating for the individuals who have spent years working abroad for their families and nation.
Young entrepreneurs and investors in Nepal seeking equity funding beyond IT demonstrate the need for supportive external stakeholders and empowered local leaders for economic development. At a recent event organized with the support of the Nepal Bank Association and the Private Equity Investment Fund Association, I witnessed a dynamic group of young entrepreneurs and investors, increasingly independent from the established interests. They are eager to mobilize capital and promote enterprises within and beyond Kathmandu. For external stakeholders like us, it is challenging to find ways to support these initiatives. Surprisingly, while we have accumulated over 700 million dollars in investments in the past 5 years, there appears to be a greater demand for equity funding to support these emerging sectors, not just in IT but across various industries. It is exciting to see the rise of new potentials and initiatives and our role should be to support them, drawing upon our experience while ensuring they lead the process.
These observations reflect a dynamic and evolving landscape in Nepal, showcasing both challenges and opportunities for growth and development.
Jörg is the Chairman of SIFEM and International Delegate at HELVETAS. He brings over 30 years of experience in development and migration, working across government and international organizations. He has held leadership roles at the Swiss Development Cooperation, the Federal Office for Migration, and represented nine countries at the World Bank. He has also led Swiss development efforts during conflict in Mozambique and Nepal, With a Ph.D. in development economics, he continues to connect global policy with local realities, always aiming to make a lasting impact.
