Nepal shows what global crises mean for the poorest countries

Ukraine war and

Pandemic -

big consequences for one

small country

We have a long and detailed conversation with Rajesh about the current situation in Nepal - despite an unreliable internet connection. It quickly becomes clear that the current problems are very complex. Global crises hit a country shaped by dependency. And they encounter geographic conditions that make development even more difficult at the moment. Whether it's the Ukraine war, the COVID-19 pandemic, floods or earthquakes - the conditions mean that the impact of these crises is particularly severe for Nepal. The example of Nepal shows why the poorest countries in the world suffer particularly badly from global crises.

Nepal is a small but diverse country. While flat landscapes extend in the south and a tropical climate prevails, the north and east are characterized by high mountains. Village communities and peoples live remote and isolated in the mountains and valleys of the Himalayas. "More than 40 different tribes live in the mountains of Nepal," reports Rajesh. These natural conditions hinder the development of a good infrastructure. The isolation makes it more difficult to give children a good education or to build wealth. "People in the mountains have problems finding work - simply because they can hardly leave their villages," emphasizes Rajesh. The current global crises hit a country with structural problems.

Nepalis earn around 30 percent of gross national income abroad. “About six of Nepal's 30 million people work abroad,” reports Rajesh. The Gulf States in particular are an attractive country for them to work in. In Nepal, people lack the perspective of a financially worthwhile job - and they therefore opt for a job outside of Nepal. A large part of the money then flows back to the family in Nepal. Many people depend on this source of income. The COVID-19 pandemic has changed everything for many Nepalis. From one day to the next they could no longer leave Nepal. Often for a very long time. All of a sudden, the sources of income for entire families collapsed. And as we know, the future is uncertain - we don't know whether the next lockdown is imminent or whether borders will be closed again.

“Even young Nepalis increasingly see no prospects for themselves in Nepal. They go abroad to study – and often don’t come back.”

Rajesh Regmi, SPOWC

Before the COVID-19 pandemic, city life was becoming increasingly attractive. Many people decided against living in the country and moved to the city. And suddenly the pandemic came. Countless people in the cities of Nepal lost their jobs in a short time - especially in gastronomy and tourism branch. This was dramatic for most day laborers, since they did not have a secure income anyway. Many Nepalis went back to the countryside and mountains. "People in the cities are afraid to invest money in new projects," reports Rajesh. "The situation is slowly calming down. But inflation and the high prices caused by the Ukraine war are fueling new insecurities among people."

“People in Nepal are scared and unsure of what the future will bring. The fear of losing everything again is omnipresent.”

Rajesh Regmi, SPOWC

Nepal is heavily dependent on its trading partners. Nepal relies on imports for gas, oil and most of its food.

“Nepal's economy is built on three main pillars: agriculture, tourism and foreign income. All of the pillars are threatened by the current crises – and are pushing Nepal further into dependency.”

Rajesh Regmi, SPOWC

Whether rice, vegetables, oil or cheese – Grocery prices have skyrocketed in a very short period of time. Rajesh reports on his last visit to the supermarket: "Instead of 290 rupees, I now have to pay 370 rupees for cheese." He emphasizes that sunflower and rapeseed oil is an extremely important part of Nepalese cuisine. “We always have two hot meals a day. We mostly cook rice, lentils and vegetables. We need a lot of oil to prepare it.” Since the war in Ukraine, the prices for cooking oil have also risen enormously in Nepal. "Currently, people would have to pay 350 instead of 200 rupees for cooking oil - but many cannot do that."

“Our cuisine is very different from European cuisine. We need a lot of oil for cooking – we can’t do without oil.”

Rajesh Regmi, SPOWC

In addition to the high food prices, gas and petrol prices have also risen significantly. "A bottle of gas - which Nepalis use for cooking - now costs 200 rupees instead of 140 rupees."

How are people dealing with the increased prices?

People in rural areas can often still fall back on the food they have grown themselves. City people can't do that. The high inflation affects many areas of life of the Nepalis and increasingly threatens them. Rajesh reports on the displeasure of the people. They take to the streets and protest against the enormous price increases.

Many people now live even more frugally. Family, community and togetherness are very important in Nepalese culture. Financial hardships are also dealt with together. Families support each other in their own network.

Prices are also rising in Zimbabwe –

with dramatic consequences

The living conditions or survival conditions deteriorate in Zimbabwe from day to day. Inflation, which has been high for years, is further fueled by the Ukraine war. Our NGO leader Mellisa Gwenzi reports: “The price of bread has practically doubled from one Zimbabwe dollar for a loaf. Cooking oil is now $5.50 instead of $3." The women in the slums can no longer adequately feed their children.

Reports Doris Sobeczko, KETAAKETI coordinator for Zimbabwe

Fertilizers are becoming scarce worldwide in 2022. The Ukraine war further amplifies this deficiency. The rural regions of Nepal in particular are heavily dependent on agriculture. “Especially when it comes to rice cultivation, we depend on fertilizers imported from India,” says Rajesh. "Fertilizer is currently so scarce that farmers can only grow little or no rice. They therefore have to cope with enormous financial losses. And much more: For many Nepalis, this means acute hunger. Most grow for their own use. What they don't need is sold. If not enough rice can be grown, this leads to massive problems in the food supply. Instead of growing it itself, Nepal has to import more rice again. Rajesh emphasizes that the fertilizer crisis is making Nepal even more dependent on other countries.

Burundi is also hit by the fertilizer crisis
- and means even more hardship for many people

A sack of fertilizer with 25 kilograms costs in Burundi currently converted 20 Euros. Although the government subsidizes chemical fertilizers by 40 percent, growing grain, rice and vegetables is almost unaffordable for the poorest of the poor. With depleted soils yielding no crops, farming becomes a struggle for survival. The inflation rate is 9.25 percent and the cost of gasoline has increased by 30 percent from January to April 2022 alone.

Reports Birgit Bergmann, KETAAKETI coordinator for Burundi

How do the global crises affect school projects?

Next to the SPOWC-KETAAKETI English School In Kathmandu, SPOWC has launched many other school projects. Especially in remote regions of Nepal they lead so-called "Social Classes". In these one-year school familiarization classes, the poorest children acquire a basic ability to go to school - in order to then go to a state school. For many poor families, going to school is not necessarily common. Parents often do not have enough financial resources and the children have to work in the fields. During the one-year period of getting used to school, the children get to know the concept of “school” for the first time. The exchange with the parents is elementary, only if they build up trust do they continue to send their children to school. SPOWC supports and protects the school children throughout their primary school years.

How does KETAAKETI act in acute life-threatening crises - such as natural disasters and epidemics?

1. KETAAKETI is reliable and close to the partner's side, NEVER leaves them alone.

2. KETAAKETI activates traditional resources and knowledge and, together with the partners, creatively searches for efficient and quick help.

3. KETAAKETI actively supports the inclusion of further emergency aid from outside or other organizations (e.g. for medicines).

4. KETAAKETI gives small, systematic, acute help that is later converted into sustainable projects.

5. In times of crisis, KETAAKETI strengthens the helpful exchange of experiences between the NGO leaders of all partner countries and at the same time promotes compassionate solidarity.

Reports Anneli-Sofia Räcker, initiator and 1st Chairwoman of KETAAKETI

COVID-19 has caused school closures and restricted schooling worldwide - including in Nepal

In Nepal, the lockdowns were even comparatively strict. “Nevertheless, we tried to support the children as much as possible. We asked them what they need. Gave assignments to take home, offered outdoor classes, and introduced alternating classes. Our teachers tried with a lot of commitment to stay with the children,” reports Rajesh.

The COVID-19 pandemic and inflation have made life in the city too expensive for many parents. They moved back to the country with their children. Some students can therefore no longer attend the SPOWC-KETAAKETI English School in Kathmandu. “We are currently still waiting for around 30 students in Kathmandu who have not come to school since the lockdown. We hope that you will visit us again soon. It is not yet possible to say how much the current situation will affect the families of our students," says Rajesh.

How are the global crises affecting the microfinance projects?

In the microfinance projects women receive start-up financing of

100 € they organize in a group of 10 women. They often invest this start-up support in cattle breeding, vegetable cultivation or in small shops in order to build their own livelihood. Because that means independence. After a year, the amount is passed on to the next women's group without interest. The COVID-19 pandemic and inflation have made life in the city too expensive for many parents. They moved back to the country with their children. Some students can therefore no longer attend the SPOWC-KETAAKETI English School in Kathmandu. “We are currently still waiting for around 30 students in Kathmandu who have not come to school since the lockdown. We hope that you will visit us again soon. It is not yet possible to say how much the current situation will affect the families of our students," says Rajesh.

"Microfinance projects have become even more important during the crisis."

Rajesh Regmi, SPOWC

The COVID-19 pandemic has complicated SPOWC's work. "We had to tell the women that we were in the conditions of the pandemic not always on sitecan be,” explains Rajesh. Especially during the repeated and month-long lockdowns it was impossible to leave the city. "The crises, the insecurity and the increased prices have shown the people in Nepal even more clearly how important financial independence is". Especially in the current times of crisis, it has been shown again that microfinance provides financial security in acute emergency situations. “Many new microfinance projects have emerged, especially during the critical phase of the pandemic. Together with the people and KETAAKETI, we thought about what really helps them now. With their own projects, people have the opportunity to provide for themselves independently. The income is available quickly (e.g. from small shops or animal husbandry), but the women also become more independent in the long term,” emphasizes Rajesh.

Microfinance promotes motivation and community – not just financial independence

The microfinance projects are not only good for the financial help, they also lead to a lot of motivation in the women's groups. The women are proud of their independence. They like to show them off. And they want to carry on this progress, this independence. Rajesh reports that many women draw attention to other women and villages who should also benefit from the projects. They are committed to ensuring that not only they and their group continue to develop - but the whole large community.

Rajesh told us a lot. How the current global crises challenge and threaten the country. But also how the people in Nepal face these challenges together. Nepal has already survived many crises. The partnership between SPOWC and KETAAKETI has already helped many people to overcome financial hardship and a lack of prospects - even in times of crisis. The intensive contact between SPOWC, KETAAKETI and all those involved also shows in the current time: We go through the crises together.

"If microfinance or     Education – SPOWC supports enormously important and great projects. We at KETAAKETI  support      where help is needed. But they always remain the experts.”

Susanne im Sande, KETAAKETI