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Why Nepal Just Overthrew its Government

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Why Nepal Just Overthrew its Government

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0:00Nepal — a country of nearly 30 million  people — recently elected a new Prime  
0:05Minister using Discord — the free  social platform used mainly by gamers.
0:12Between memes and emojis, thousands of users voted  
0:16in an anonymous poll for their  favorite of five candidates.
0:20Less than 48 hours later, the  winner — 73-year-old former  
0:25Supreme Court Justice Sushila Karki — was  formally sworn in as the nation’s leader.
0:32Needless to say, this is not how  elections typically work in Nepal.
0:38This extraordinary sequence of events  was set in motion two weeks earlier,  
0:43when the previous administration sent  letters to dozens of social media companies,  
0:48demanding that they immediately  register with the government.
0:52Those that refused (or were simply too slow to  
0:55respond) were banned from the  country just seven days later.
1:00With hardly any warning or explanation,  Nepalis were suddenly cut off from the apps  
1:06and websites they used every day — apps like  YouTube, WhatsApp, Facebook, and Instagram.
1:14Outraged, a group of students and young activists  
1:17began peacefully protesting  in the capital, Kathmandu.
1:21Little did they know, they had  just lit the match to a fire  
1:25that would soon grow far bigger  than they could possibly control.
1:30Within hours, thousands had joined them. Their  demands grew broader. And the crowd, less patient.
1:38The government, it quickly became clear,  
1:40had been caught flat-footed and  was now completely overwhelmed.
1:45The Prime Minister first repealed his  social media ban and when that didn’t work,  
1:51resigned from office. But this only emboldened  the protestors — proving they had the upper hand.
1:59With no one to hold them back, some seized this  opportunity to truly vent their frustration.
2:05Over the next few days, at least 70 people —  mostly protestors — were killed, billions of  
2:12dollars worth of property was destroyed, and all  three branches of government were set on fire.
2:19Finally, seeing the writing on the  wall, the army brokered a deal.  
2:24It asked the leaders of the protests to  propose the name of a new Prime Minister.
2:29And those leaders, in keeping  with the spirit of the movement,  
2:32deferred that question to the wisdom of the crowd.
2:36They did this the fastest, easiest, and  simplest way they knew how — using one of  
2:42the very same platforms the government  had only just tried to ban: Discord.
2:48And just like that, Nepal had a new leader.
2:53But make no mistake: this revolution wasn’t really  about Discord or Instagram or YouTube. It was  
3:01about the government’s decades-long inability  to solve one basic yet fatal economic problem…
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3:18Looking at a map, it’s unfortunately no mystery  
3:21how Nepal became one of the  poorest nations in Asia.
3:25It doesn’t have oil, like  its Central Asian neighbors.
3:29It doesn’t have access to  the sea, like Bangladesh.
3:33It doesn’t have India’s flatter terrain, making  transportation cheaper and easier to build.
3:40And it’s not subsidized by a  central government like Tibet.
3:44Tourism helps, of course, yet the very  qualities that make it so attractive  
3:49to a certain kind of thrill-seeking  traveler also limit its mass appeal.
3:55If anyone could climb Mount Everest,  after all, far fewer would want to.
4:00One thing Nepal does have an unusual  amount of, however, are people.
4:06Despite being only four times bigger than Bhutan,  its population is thirty-seven times larger.
4:14Not only that, it’s the kind of population a  rapidly growing economy needs: a young one.
4:21The median age is just 27 and a full  60% of the country is under thirty.
4:28So, what do you do with all this young,  
4:31able-bodied labor when you have no  oil to drill or garments to weave?
4:36Well, in Nepal’s case, you send them abroad.
4:40Women tend to work in India; men  in Korea, Qatar, and Saudi Arabia.
4:46The former are often recruited as maids, nannies,  
4:49and cooks; the latter as drivers, construction  workers, security guards, and electricians.
4:56South Korea, with its median age of 45, is always  in need of helping hands. As is the Middle East,  
5:04with its well-known addiction  to building flashy megaprojects.
5:08Once overseas, Nepalis can earn about  $340 U.S. Dollars a month. …A tiny sum  
5:15by global standards, but consider  that the country’s per capita GDP  
5:19is just fourteen-hundred dollars a year  or $120 a month — only a third as much.
5:27And because migrant workers are generally  provided with food and accommodation,  
5:32they can keep nearly every dime they earn.
5:35…Meaning: they can send nearly  their entire paycheck back home.
5:40These transfers — called “remittances”  — are life-changing for wives, husbands,  
5:45children, and parents in Nepal.
5:48Between 1984 and 2022, the share  of its population earning less than  
5:54three dollars a day fell  from 83 to just two percent.
5:58The World Bank called “the speed and  scale of [its] success in eliminating  
6:02extreme poverty,” “unparalleled among its peers.”
6:07But there’s a catch.
6:09Paradoxically, what’s life-changing  for each individual family can still  
6:14be disastrous for the nation as a whole.
6:18The problem is that migrant labor  isn’t just a fallback — a useful  
6:22“Plan B” for those unable to  find better work at home. No,  
6:27it’s practically *the* default pathway — a  virtual necessity for all but the luckiest few.
6:34Two thousand Nepalis leave for new  jobs overseas every single day. 76%  
6:41of households rely on remittances  from at least one family member.
6:46And these are low estimates. Many  Nepalis work next door in India,  
6:51where they don’t need a permit,  or even a passport, to enter.
6:56When you add up all these  remittances, they comprise,  
6:59by some estimates, two thirds of  Nepal’s entire GDP. Two thirds!
7:06For comparison: remittances are also quite common  in India — millions of Indian-Americans, in  
7:13particular, regularly send money back home — yet  they represent just three percent of India’s GDP.
7:20In Nepal, remittances overshadow  all foreign aid and all foreign  
7:25direct investment. It’s not even close.
7:29Now, a large influx of cash, one would think, is  surely a good thing. That’s the whole rationale,  
7:36after all, behind foreign aid. And  indeed, for any one family, it is.
7:43But consider what this does  to an economy over time…
7:47The reason this income is so  life changing is that, for many,  
7:51it’s the difference between  having dinner and going hungry.
7:54Yet for that same reason it doesn’t  allow Nepalis to save, never mind invest.
8:01The vast majority of this money (79%)  is immediately consumed — in the form  
8:07of basic necessities like food, rent, and clothes.
8:11Now, that alone isn’t the problem.
8:14The problem is that, remember: all the  would-be farmers and factory workers  
8:19are off building World Cup stadiums in  Qatar and off cleaning houses in Korea.
8:24All those products must be imported from abroad.
8:29In other words, money flows  in to Nepal as remittances  
8:33and then immediately flows out as  imports. When all is said and done,  
8:38nothing is actually built domestically  — no new factories, no new jobs.
8:44In short: Nepal has been hollowed out. It’s  little more than a “pass-through” economy.
8:52In a cruel twist of irony, nearly  everyone who stays in Nepal is a  
8:56small-scale farmer — 66% of the workforce —  yet the country struggles even to feed itself.  
9:04It’s forced to import a significant  quantity of its food because without  
9:07capital to invest in fertilizer or equipment,  agricultural productivity is so incredibly low.
9:14It’s in the strange position of having too much  labor and therefore too little. Too much — so  
9:21millions go overseas. And as a result, too little  is left at home — particularly the youngest,  
9:28most able-bodied, and skilled labor — the kind who  would ordinarily, for example, start businesses.
9:36If there were more opportunities at home,  more workers would stay there. But for  
9:40there to be more opportunities, workers  would first have to stay — starting the  
9:45companies and attracting the investment  that would eventually create jobs.
9:49Nepalis have no choice — they  can’t turn down work overseas,  
9:54forcing their families to starve, hoping  everyone else will do the same. Nor can  
9:59they wait around for years while  domestic industries take off.
10:03But this means that nothing. ever. happens.
10:07And that’s just the economic problem.
10:11Now consider what this does  to a nation politically.
10:15As a “partly-free” democracy (even  before the recent “Discord revolution”),  
10:20the government is theoretically  accountable to the public.
10:24Yet whenever unemployment rises, it can simply  channel this “surplus” into migrant labor.
10:31Remittances are the “perfect” low-effort  government policy: they’re easy to implement,  
10:37the consequences are delayed, they shift  the burden of structural problems onto  
10:42individual citizens, and they outsource  potential unrest to a faraway place.
10:48Addressing root causes, on the other hand,  is hard work and doesn’t happen overnight.
10:54Nepal, for instance, has the potential to  generate massive amounts of hydropower,  
11:00ample demand for which lies right across  the border in India. Yet building dams  
11:05requires diligent planning, long time  horizons, and is capital-intensive.
11:11Unsurprisingly, every government over the last  20 years has done the same thing when faced with  
11:16these two choices: take the easy way out — using  remittances as a substitute for real policymaking.
11:24With the nation’s future on autopilot,  
11:27politicians are free to focus  their efforts on collecting bribes.
11:32Since the end of the monarchy in 2008,  governance of Nepal has been passed  
11:36around like a hot potato. One after another,  thirteen governments have gotten in, used the  
11:43treasury as their personal ATM, and quickly  moved on. Not one finished their full term.
11:52For decades, Nepalis have shouldered the  burden of their government’s poor choices.  
11:57Migrant labor is stressful, demanding, and  sometimes physically dangerous. Long hours are  
12:04the norm and passports are often confiscated by  employers, restricting their freedom. Even in the  
12:11best of cases, working overseas means being away  from your family for months or years at a time.
12:18Meanwhile, social media provides a window into  
12:21the extravagant lives of the  nation’s tiny corrupt elite.
12:25In 2012, the son of a former prime minister  was given a quarter million dollars by the  
12:30government to hike Mount Everest,  quote “for the sake of the country.”
12:35Another young princeling posted photos  standing next to a Christmas tree made  
12:38of Louis Vuitton boxes — in a country,  recall, with a $1,400 per capita GDP.
12:46Nepal has been cruising on autopilot for so long,  
12:49even the slightest patch of turbulence  was bound to unleash this fury.
12:55In September, that long-simmering  discontent finally boiled over.
13:01The social media ban wasn’t just unpopular.  It was a painful slap in the face to millions  
13:07who used these platforms to stay in touch  with their loved ones working overseas.
13:13That — not young people’s “addiction” to social  media — is why Nepal overthrew its government.
13:20Those protests required enormous courage,  
13:24quick thinking, and discipline. Also essential  to their success were VPNs — Virtual Private  
13:31Networks — without which protestors would  never have been able to access Discord.
13:36VPNs hide your IP address and encrypt  your internet connection from your ISP,  
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