Helvetas Nepal has been instrumental in Nepal's development.: Dr. David Seddon

Dr. David Seddon, a renowned British Development Studies academic and development activist, has a rich history of engagement in the field of Nepal’s development. He has worked with international institutions like the World Bank and NGOs such as Christian Aid and OXFAM. Dr. Seddon's research and publications, including works on Nepal, have been well-received. Seddon's initial visit to Nepal in 1969 was part of a study mission for road construction. His extensive research and publications, including works on Nepal like "Peasants and Workers in Nepal" (1979) and "Nepal in Crisis: Growth and Stagnation at the Periphery" (1980), have been highly regarded. During a recent visit to Nepal, he discussed the impact of the suspension of US grants for developing countries with Helvetas-Nepal's Country Director, Dr. Prabin Manandhar, and his team. Excerpts:

March 8, 2025, 2:34 p.m. Published in Magazine Issue: VOL. 18, No. 15,March.07, 2025 (Falgun-23. 2081) Publisher and Editor: Keshab Prasad Poudel Online Register Number: DOI 584/074-75

David Seddon  in Kathamandu.jpg

What should be Helvetas Nepal's role in development?

Helvetas Nepal has been instrumental in Nepal's development.The construction of suspension bridges has greatly improved the safety and accessibility of river crossings for millions of Nepalese. While these bridges have had some negative impacts on the livelihoods of the Bote people who traditionally rented out boats for river crossings, the overall positive impact of the bridges is significant. It is crucial to assess the impact of infrastructure projects like bridges on communities and society. Helvetas Nepal should prioritize projects that promote safe migration, support the integration of returnee migrants, enhance technical skills of youth, mitigate climate change risks, and improve the livelihoods of the poor.

How do you foresee the current development aid situation evolving in light of the suspension of grants and aid from USAID to countries like Nepal?

Following the suspension of grants and aid from USAID to countries like Nepal, the development aid scenario is likely to undergo significant changes. President Donald Trump and the Republican Party, who now control the House and Senate, have pledged to reduce federal governance and cut unnecessary spending, including foreign aid. This shift in policy is expected to impact the nature of US development support to countries like Nepal.

Given the suspension of grants and aid to Least Developed Countries by developed nations, how do you view the existing disparities in global development and resource distribution?

Addressing disparities in global development and resource distribution requires the implementation of effective development projects. While there is no one-size-fits-all solution, initiatives like the construction of suspension bridges by organizations like Helvetas Nepal have helped bridge gaps in remote areas, enabling communities to access essential services and resources.

What is the state of Nepal?

As Nepal transitions from being a Least Developed Country to a middle-income country by 2026, it is evident that the country requires support from the international community to address existing disparities. It is essential for Nepal to receive international assistance in bridging these gaps. Many Nepalese individuals seek opportunities abroad to increase their income, leading to a rise in annual remittances, which exceeded US$12 billion last year. It is imperative for Nepal to utilize these remittances effectively in productive sectors for sustainable development.

How can Nepal address the current situation?

Nepal's influence on the global stage is limited, and it is facing severe consequences of climate change. It cannot tackle these challenges alone and is at risk of significant losses due to climate change. With shifting global leadership, Nepal may struggle to secure compensation from polluters.

What are your thoughts on the future following the suspension of the USAID grant?

The future of the United States' primary foreign aid agency is uncertain, as the Trump administration plans to merge it with the Department of State. With a president enjoying strong public support and a clear mandate, Trump is fulfilling his campaign promises in a bold manner. This shift may lead to a different development path. As the US takes a tough stance and Europe shows reluctance towards immigration, Nepalese workers may have limited options for migration, primarily to Israel, the Gulf, and Southeast Asian countries. Nepal could look to countries like Vietnam, Laos, and Thailand for lessons on promoting economic growth and enhancing competitiveness to benefit from its proximity to India and China.

What is the future of migration?

Despite remittances contributing over 25 percent to the Nepali economy and the heavy reliance on remittances, it is not a sustainable long-term solution. Nepal must focus on creating job opportunities domestically. Labor migration can provide temporary employment for Nepalis, and organizations like Helvetas Nepal can play a crucial role in ensuring safer migration.

How do you view Europe's role in addressing this issue? Do you believe European countries can help mitigate the impact?

European countries are also grappling with economic challenges and cannot fully compensate for the void left by the US. The rise of right-wing movements in Europe poses another obstacle. European citizens are urging their governments to prioritize domestic needs over international aid.

What steps should Nepal take?

With a decrease in foreign aid, Nepal must leverage its domestic resources. The country's diverse climate allows for the production of high-yield, high-value crops such as ginger and vegetables. Nepal can learn from successful agricultural practices in South-East Asian countries like Thailand, Vietnam, and Bhutan. Implementing land reforms can boost agricultural productivity. In times of crisis, strong and decisive leadership is essential.

What are your thoughts on road infrastructure in Nepal?

Improving road connectivity in Nepal is crucial for development, but it comes with a high cost. The Rural Access Program has provided valuable lessons for enhancing livelihoods, especially in challenging terrains where road maintenance is a major issue.

How would you describe the impact of migration in Nepal?

Labor migration has significantly benefited Nepal by reducing poverty, but it also has negative long-term effects, such as societal fragmentation, family separation, and demographic changes.

Is the US stepping back from global involvement?

Since the 2001 terrorist attacks, the US has shifted its policies, reflecting its position as a powerful yet struggling imperial force. Despite its military and economic might, the US has encountered difficulties in resolving conflicts in the Middle East, Afghanistan, and Ukraine. The current administration, under Trump's leadership, is prioritizing policies that benefit American interests, but the US is likely to remain a dominant global power.

What are your thoughts on climate change?

Despite the imminent dangers of climate change, there is a lack of serious attention given to the issue. Nepal is especially susceptible to climate-related disasters, and the country is already feeling the impacts. Without immediate action, the situation in Nepal is expected to deteriorate further due to climate change.

David Seddon and Dr. Prabin in helvetas.jpg

How do you view the current situation?

We are currently in a new era. The consequences of the US policy changes will only become apparent on a larger scale in about a decade. Countries are currently grappling with the shock of these beginnings. Additionally, there is significant growth on the other side with the emergence of China, which is also crucial. The United States is now shifting its focus away from Europe and Britain, and towards the Pacific and Southeast Asia. India, a significant economic and military power, is also a noteworthy player in this evolving landscape.

What is the future of US aid looking like? With the US currently undergoing a

90-day review of foreign aid, many Nepalese workers may have lost their jobs, causing disruptions that could be felt in other parts of the world. Elon Musk is actively working to address these issues on both a national and international level. The US government is reducing the size of institutions like the CDC, which has played a crucial role in the American healthcare sector. They are streamlining bureaucratic processes within the CDC to cut unnecessary costs.

How do you see the cost?

There is a significant cost-saving initiative underway in the US, with political considerations also coming into play. The US is contemplating withdrawing from various international organizations, having already exited the World Health Organization and the Paris Agreement. There is a sense of skepticism towards other international agencies, including the United Nations, which may be at risk. Despite being a powerful body post-World War II, the UN Security Council has struggled to resolve conflicts in regions like Sudan and the Middle East. The entire post-World War II architecture, including organizations like FAO, WHO, the Security Council, and the UN, is facing uncertainty due to the actions of USAID.

What is the outlook for Nepal's future?

India holds significant influence over Nepal as a regional power, given that Nepal is surrounded by a quarter of the world's population. The global landscape is evolving rapidly, and the post-World War II system is undergoing significant changes. The roles of China and India are becoming increasingly prominent, and both countries are crucial for Nepal. Currently, the United States has limited interest in Nepal.

How is Europe faring?

Europe appears to be in a period of decline, with many countries reducing their development budgets. Nepal has traditionally received foreign aid from various European nations such as the European Union, the United Kingdom, Norway, Germany, Switzerland, and Japan. However, there is a growing sentiment within countries like Britain against providing aid, particularly as domestic issues in areas like social services and healthcare persist. The rise of right-wing politics in Europe is putting pressure on governments to cut foreign aid.

Do you mean that other countries will also reduce their aid?

Yes, not only USAID, but also the British Development Aid Agency, GiZ, EU, and even Swiss Development agencies are cutting back on foreign aid and are demanding that the money be used within the country. With all European countries reconsidering their aid policies, this will have a significant impact and bring about great changes and opportunities. This represents a major shift in the global development sector, which has been evolving over time. To me, this change is significant with far-reaching implications.

What Nepal needs to do?

Nepal's relationship with India is crucial for its development, but it also poses challenges. India is Nepal's largest trading partner, accounting for 80% of trade, and Nepal imports 90% of its essential goods from India, leading to a significant trade imbalance. This imbalance is a major issue that needs to be addressed. Additionally, the political connections between Nepalese and Indian leaders from various political parties are of utmost importance.

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How long have you been involved in Nepal?

I first got involved in research in Nepal when I joined the Overseas Development Group (ODG) at the University of East Anglia (UEA) in 1972. I was part of a research and evaluation program funded by the Economic and Social Committee for Overseas Research (ESCOR) of the Ministry of Overseas Development. The focus was on studying the effects of road construction in the west central region of Nepal. The British government was providing technical assistance and funding for a section of the Mahendra Rajmarga (East-West Highway), and our initial goal was to evaluate the impact of this road construction project.

When you come to Nepal first time?

I was part of a team that included a geographer, an economist, a social anthropologist, and an agricultural economist, with my role being the 'sociologist'. We all learned Nepali, and I became quite proficient in the language during the project. In Nepal, my focus has always been broad and interdisciplinary. I am interested in the political economy and history of the country, particularly in the processes of political, economic, and social development and change. My first son was born in Patan hospital in April 1974.

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