Technology and AI: Nepal's Economic Future Beyond Remittances

 Technology and AI: Nepal's Economic Future Beyond Remittances

With the rapid development and use of technology, a global debate is underway on the policies and regulations needed to guide it in the right direction. Although the words 'AI policy' and 'AI governance' at the center of this debate may sound technical and complex, their meaning and relationship with our future are deep and important.

Especially for a developing country like Nepal, understanding and adopting the concept of AI governance correctly can open the golden door of the future.

The real meaning of governance: not control, but facilitation

Generally, governance means control, regulation, and restraint. However, the real and broader meaning of governance is not just to restrict or control. Rather, it is to facilitate. Its purpose is to create a comfortable and supportive environment for any sector to flourish. Making it easy for working people or organizations to work is the first condition of good governance. It opens the door to equal opportunities for everyone.

Applying this broader meaning to the field of AI, the concept of ‘AI governance’ emerges. AI governance does not simply mean limiting the power of giant technology companies like Anthropic, Google or OpenAI or keeping them in check. This thinking is narrow. The real purpose of AI governance is to create an environment where the opportunity to build and develop AI systems is open to all countries, all communities and all individuals around the world. It makes the market free and competitive and democratizes the development of technology. Therefore, AI governance is not a policy that restricts AI, but a process of facilitating its development that is broad, inclusive and accessible to all.

Nepal’s History and Missed Opportunities

To understand why this debate is important for Nepal, we need to look back at our history. We have missed many important development opportunities.

While the steam engine revolutionized industry and transportation in Europe and America, Nepal was living a traditional lifestyle. Which left us behind in the global development race of the Industrial Revolution.

In the 1990s, as countries around the world were opening up their economies and building global supply chains that benefited developing countries, Nepal was caught up in a ten-year civil war. This conflict also eroded the potential for economic liberalization. And we fell behind in economic liberalization and global supply chains.

Today, we stand before the third and perhaps most important boat of development, which is ‘Artificial Intelligence and the Digital Revolution’. This boat is different from the previous two in many ways and is accessible to Nepal. While the industrial revolution required large factories and physical infrastructure, developing AI systems does not require much physical infrastructure. The main thing required for this is the human brain, computing power and high-speed internet.

The good news is that Nepal also has some comparative advantage in this area. It has been more than a decade since the study of AI and computer science began in Nepali universities. We have an educated and talented workforce ready to work in this field. What we need now is high-speed internet (such as 5G) and Centers of Excellence for AI research. This is what our National AI Policy has envisioned.

In this regard, a small country like Estonia can learn a lot. Although smaller than Nepal in terms of population and area, Estonia is today recognized by the world as a reliable and leading country in the field of cybersecurity and digital governance. Although our goal is not to become Silicon Valley, we can produce world-class, reliable and competitive technical manpower in Nepal.

Valuable human resources

We are not only selling mountains and tourism. The most valuable thing we can sell now is our human resources, our intellectual capacity. Our technical professionals are not weak; if they are given the right training and opportunities, they can compete in any corner of the world. If we can seize this opportunity, a new dimension of progress will open up for Nepal. But if we miss this third boat as well, it will be very difficult for Nepal to progress.

AI and Economic Prosperity

When AI policy is discussed, a natural question arises from society: 'People in the country have not been able to eat, their houses have been washed away by floods, are you talking about AI?' However, there should be money in the country's treasury to provide food for those who have not been able to eat and clothing for those who have not been able to provide food. Although tourism and remittances have helped the country to sustain itself, they have not been able to bring progress. Now we have a third option: technology.

Technology can fill that treasury, from which social security programs can be run. Our socialist thinking emphasizes more on sharing, but does not seek sources of income. Technology is that new source.

Importance of laws and regulations

The national AI policy brought by the government is a positive step in itself. But policy alone is not enough. Any policy is just a piece of paper until the necessary laws and regulations are made to implement it. Our AI policy has been made, but its laws and regulations have not yet come. Conscious citizens and the media should urge the government to bring laws related to AI as soon as possible. It is necessary to keep putting pressure on them. Regulations are mandatory to establish centers of excellence mentioned in the policy, promote research and create an overall AI ecosystem.

What will be the AI ​​governance model?

Nepal's approach to AI governance should not be one of banning or restricting companies from outside. Rather, it should be one of welcoming and facilitating them. If even a powerful body like the European Union is not able to fully control large AI companies, it is pointless for a small economy like ours to try.

We should adopt a strategy that will facilitate their process and get the maximum benefit for our country. For example, you can propose that "if you want to expand your services in Nepal, you should hire such and such percentage of employees from our country." Or you can say, "You should do some part of your project in collaboration with local companies here."

This creates jobs and also helps in knowledge transfer. Strong and clear policies and regulations also instill confidence in foreign investors to come and do business in Nepal. Despite strict regulations in Estonia, global companies go there. Because the government there has created a trustworthy and safe environment.

Innovative and bold thinking for Nepal

In addition, we need to put forward some innovative and bold thinking. For example, why not develop Nepal as a data center hub of the world? It takes a lot of water and energy to keep AI systems and data centers cool 24/7. We have immense, cold and fast-moving water flowing from the mountains. We also have hydropower, a major source of clean energy. The world's big technology companies can be called upon to 'Open your data center at the top of the world'.

This can be done by offering incentives such as tax breaks. Turning these opportunities into reality requires political will, knowledge and leadership from the right people. Centers of Excellence should be led by someone who is technically qualified and has deep knowledge of the subject, not someone who has been politically appointed.

Now is not the time for debate, but for action. The debate on AI governance and technology-friendly policies is not a luxury for Nepal. It is a prerequisite for our future economic survival and progress. If we fail to grasp this third crucial phase of the AI ​​and digital revolution, we will forever be dependent on remittances and trapped in an economy that will never recover. This door of opportunity will not remain open forever. If we do not take concrete steps in the next few years, we will once again fall far behind in the global development race.

Therefore, there is no alternative but for the government, the private sector, the technology community and conscious citizens to come together to seize this opportunity and take Nepal’s future to new heights.