Monday, March 28, 2011

Fake medicine Nepal.......

Problem:
KATHMANDU, March 29:
Police apprehended four people for administering fake hepatitis B vaccine to the public in Boudha following the tip-off from the District Public Health Office (DPHO), Kathmandu.

DPHO Chief Bisho Ram Shrestha said the police have handed over the quack vaccinators to Kathmandu District Administration Office for punishment. Claiming such vaccines can have disastrous impact on human health, Shrestha said, "Preventing fake vaccinators from selling unapproved vaccines has become a major challenge for us."


According to DPHO, all vaccines must have quality approval from World Health Organization (WHO) before being administered. Likewise, vaccines must also get approval from the Department of the Drug Administration (DDA). The vaccines administered by the arrested vaccinators had approval from neither of the agencies. Click here to read more

Solution???????????????

Sproxil is combatting the global counterfeit drug market through a MobileProduct Authentication™ (MPA™) solution that enables consumers to verify the authenticity of pharmaceutical products. Sproxil’s MPA solution allows customers to send a free text message containing a code found on a drug to Sproxil’s servers, which immediately respond and indicate whether the drug is genuine or fake. Sproxil has set up Africa’s first national mobile-based anti-counterfeit service in Nigeria, and Acumen Fund’s investment will enable the company to expand into Kenya and India .Click here to read more

Sunday, March 27, 2011

Nepal's biggest dairy farm .....

Domestic production fulfils only half of the total daily requirement of 800,000 liters of milk across the country.



मुलुकमा खपत हुने आधा दूधका लागि भारतमै निर्भर हुनुपर्ने बाध्यता अन्त्य गर्न भन्दै रुपन्देहीमा २५ करोड रुपैयाँ लागतमा पशुपालन तथा दुग्ध उत्पादन फार्म स्थापना गरिएको छ

"लुम्बिनी एग्रो प्रोडक्ट्स एन्ड रिसर्च सेन्टर १० बिघा क्षेत्रफलमा फैलिएको छ । फार्ममा अहिले होलस्टाइन, जर्सीलगायत पाँच प्रजातिका १ सय ७० वटा गाई, १५ वटा भैंसी, तीनवटा साँढे र ६५ वटा बाच्छाबाच्छी छन् । गाई संख्या छिट्टै ५ सय पु¥याउने लक्ष्य रहेको फार्म सञ्चालक शशी पौडेलले जानकारी दिए । “पशुपालनलाई व्यावसायीकरण गरी दूधमा देशलाई आत्मनिर्भर बनाउने उद्देश्यले फार्म सञ्चालन गरेका हौं,” उनले भने ।"

"फार्मले दूध चिस्याउने र दूध दुहुने मेसिन पनि राखेको छ । हाल १ सय दुहुना गाईबाट दैनिक १ हजारदेखि १२ सय लिटर दूध उत्पादन भइरहेको छ । एउटा गाईले बढीमा ४०–४५ लिटर र कम्तीमा १० लिटर दूध दिने पौडेलले बताए । २३ फिट अग्लो आधुनिक गोठसहितको फार्ममा अहिले २५ जनाले प्रत्यक्ष रोजगारी पाएका छन् ।" click here to read more


Friday, March 25, 2011

Bhat Bhateni and Big Mart helping or hurting Nepali Janta ????


Organized retail stores like ( Bhat Bhateni,Big mart) are sprouting all over the big cities of the country ............ the key drivers being changing consumer profile and demographics, increase in the number of international brands available in the Nepali market, economic implications of urbanization, credit availability, improvement in the infrastructure, increasing investments in technology and real estate building a world class shopping environment for the consumers.

I recently read about Big Mart opening a new store in Kathmandu ...here is the synopsis of the article

  • Big Mart will contain 11,000 sq ft on three floors and expects to provide employment to 70 to 80 people. According to Prince Khetan, managing director of Mega Mart, the company is investing around Rs 50 million in the project.
  • Inventory consists of 34,000 kinds of products and counting.
  • Mega Mart is also planning to open two new outlets at Jawalakhel, Lalitpur and Battisputali, Kathmandu within this year.

After reading this article few questions crossed my mind.....................

1) Out of 34,000 kinds of product in the inventory, how many are domestically produced ? .... So is the raise of organized retail stores helping or hurting Nepal’s current account balance? (Last time before leaving Nepal,I did my thithaura,aachar,bhujiya,chau chau shopping in one of these store....... saw lots of Indians & Expats shopping around..considered export ?)

2) Are these stores supporting local manufactures and farmers by procuring more goods from them??.......

3) Critics of western style "one stop shop " experience claim that its kills local kirana shops .......So are these "hyper shops" destroying existing "Daal Bhaat" winning sources or creating new jobs ?

4) President of The World Bank said in a recent interview "over time, what many economies have found, not only developed economies like the United States, but I have seen this in Mexico, Brazil and China, that some of those large distributors can capture the benefits of their supply chains with better, effective logistics. So I think that would obviously create additional opportunities to benefit the consumer"

5) WalMart ( daddy of all retail chains ) claims "Encouraging modern retail helps arresting the current inflationary trend, directly impacting the consumers at large.".................. Basically,Wal Mart is saying big retail store ( Bhat Bhateni ,big mart types) can achieve economies of scale,dent supply side bottle necks, increase margin of the kisans by weaning off middle men, engaging in both up stream and down stream supply chain.......fancy consultant calls it a " Farm to Fork model".........................................

Are these organized retail store chains in Nepal directly "for real " engaging with local manufactures and farm cooperatives or taking the "wholesale" route ???......Are they even selling fruits, veggies,dairy products , chau chau ( Nepali items) at discount price compare to kirana pasal or "aallu gobi bhantaa" street/cycle vendors ??


Thursday, March 24, 2011

Balance Sheet of financial cooperatives are fatter than that of commercial banks

According to a study, in Nepal amount of total deposits in financial cooperatives have outgrown the total deposits of all the commercial banks...............Does this mean encourage Financial cooperatives for financial inclusion ????

"मुलुकभर रहेका सहकारीहरूमा सम्पूर्ण ३१ वटा वाणिज्य बैंकभन्दा बढी निक्षेप रहेको सहकारी विभागले गरेको एक अध्ययनले देखाएको छ । विभागले माघमा संकलन गरेको विवरणअनुसार सहकारीको कुल निक्षेप बैंकहरूको भन्दा ३० अर्ब रुपैयाँले बढी छ ।

वित्तीय सहकारीले गत माघसम्म ६ खर्ब ५० अर्बभन्दा बढी निक्षेप संकलन गरेको तथ्यांक छ । नेपाल राष्ट्र बैंकको पुससम्मको तथ्यांकअनुसार वाणिज्य बैंकहरूमा ६ खर्ब १९ अर्ब रुपैयाँ निक्षेप छ ।" Click here to read more


This news forced me to revisit an article I read in Harvard business review -


"many innovations that engage the poor have come from players outside the mainstream in their industries. Take the financial sector, for example: Microfinance originated with NGOs, mobile money was developed primarily by telecom companies, and micromortgage companies in India are being launched by entrepreneurs and firms with no experience in the housing-finance sector. Established commercial banks, on the other hand, are usually saddled with legacy systems, fixed assets, regulatory requirements--and, occasionally, mindsets-- that make it difficult for them to lead the innovation charge in financial services for the underserved"


Investment wanted...Invest in Nepal energy sector ...





The government of Nepal has launched a $275m (£169m) initiative to bring an end to the country's energy crisis within five years.

Despite having massive hydro-power potential, Nepal produces less than half its electricity needs.


The government says that under its plan, Nepal will be free from load-shedding within five years.

It says that it will also

  • waive custom duties for materials related to produce solar power
  • make better use of existing thermal plants
  • waive tax on private investors building new hydroelectric power plants
  • encourage the private sector to produce power from rubbish

The government also said it would provide special security for investors and introduce laws to make it a crime to hamper energy construction projects, punishable by five years in prison.








(Source: Mckinsey & Company)


water water everywhere and not a drop to drink??



pic source: MIN RATNA BAJRACHARYA


Perhaps two-fifths of the people in Asia’s cities do not have access to piped water. Many of the rest suffer from intermittent supply and unsafe water. And, globally, the provision of water to cities is not keeping pace with urbanisation. In a message for “World Water Day” on March 22nd the United Nations’ secretary-general, Ban Ki-moon, claimed that in the past decade the number of city-dwellers without a water tap in their home or immediate vicinity has risen by 114m.

Mr Ban identified the problem as “a crisis of governance, weak policies and poor management”. Asit Biswas, of the Third World Centre for Water Management, an NGO, agrees: “Lack of money, scarcity, and so on—they’re all excuses. The problem everywhere is bad management. Click here to read More

"The daily drinking water requirement of Kathmandu is 320 million litres but supply hardly amounts to 100 or 110 million litres.Groundwater levels are being depleted by 1.9 metres each year. Marking World Water Day, water expert Nawaraj Shrestha notes that 15 years ago, Kathmandu's groundwater was at the level of 20 to 30 metres below the ground. "But now we need to dig deeper than 80 metres to hit water."

"A 1997 study by Australian researcher Chris Well shows that on current trends, Kathmandu's groundwater supply will dry up in 100 years. " Click here to read more


Digits above makes me wonder, how much private water supply tanker companies should be making??Who says Nepal is not reaping dividend out of its water resources :)..........


Indian foreign policy.....

Dr. Shashi Tharoor in Lok Sabha on 15th March, 2011 Part 1 from nehha on Vimeo.


He claims Indian parliament is against Maoization of Nepali Army ....

Tuesday, March 22, 2011

Dead Capital in Nepal ...2011 International Property Rights Index

"The 2011 International Property Rights Index (IPRI) has ranked Nepal in the 100th place among 129 countries, one slot higher than last year. The IPRI is an annual international comparative study that measures physical and intellectual property rights and their protection around the world.

The study quantifies the strength of property rights, both physical and intellectual, and ranks countries accordingly. The countries are ranked based on 11 factors reflecting the state of legal and political environment (LP), physical property rights (PPR) and intellectual property rights (IPR). This year the report contains rankings of 129 economies representing 97 percent of the world GDP." Source: KP

Click here to Read more



Dead Capital

"A crucial ingredient missing in most macroeconomic programs in LDCs is the establishment of widespread, legal property rights for the assets people now hold. It is not that the majority, the poor included, in countries trying to build market economies is without property. This majority does in fact possess land, buildings, and businesses, but they do not have formal, legally recognized rights to use these assets in the marketplace which macroeconomic reforms are supposed to create.

The reason why open markets have produced enormous wealth in the West and not in developing countries is that the property rights of citizens of Western nations over their assets are "formalized." What does "formalized" mean? Property rights are "formalized" when they are embodied in universally obtainable, standardized instruments of exchange that are registered and governed by legal rules and connected to the rest of the economy through mechanisms which, additionally, can support the whole range of transactions that make a market economy work. Formalization creates the rights, obligations, and legal instruments that enable the owners to relate to government and private business. It provides the mechanisms whereby the most important assets of the informal sector, namely real estate and businesses, can be used to secure the provision of goods and services, especially credit and infrastructure. Formalization transforms its beneficiaries into individually accountable customers.

Formal property rights afford economic agents in the Western nations indisputable proof of ownership and protection from uncertainty and fraud. Property rights of Westerners can then enter the marketplace as a form of specie-backed currency adapted to the rapid and frequent transfer of resources to their highest valued-use. Their markets generate growth because widespread formal property rights permit massive, low-cost exchange, thus fostering specialization and greater productivity.

Without formal property, a modern market economy simply cannot exist because most assets are commercially and financially invisible. Nobody really knows who owns what and where, who is accountable for the performance of obligations, who is responsible for losses and fraud, and what mechanisms are available to enforce payment for services and goods delivered. This is called the informal sector: that part of an economy that lacks the institutions required to provide security and allow business and government to perform efficiently. It is a universe where there is too much room for misunderstanding, confusion, reversal of agreement, and faulty recollection, and where the costs of uncertainty are so high that credit cannot be extended on reasonable terms to most people and businesses.

The majority of informal assets are therefore "dead capital"; they lack value as collateral for securing the interests of creditors. They are like corporations that cannot issue stocks or bonds to obtain new investment and finance. To become "live capital," these assets must first be formalized so that ownership can be traced and validated and exchanges can be governed by a legally recognizable set of rules. Formalized titles were crucial to opening the door to credit in countries such as the United States, where close to US$4 trillion of the securities floated in the market are backed by mortgages and the other guarantees that formal property permits." (Source: MOC)

Click here to read more

Saturday, March 19, 2011

Drip water Irrigation Nepal

"Less than half of Nepal's arable land is irrigated, the rest depends on erratic rains. Lack of investment in irrigation and the shortage of water in the dry season have hindered the spread of irrigation schemes in districts like Bhojpur and the arid areas of western Nepal."

"Madan Gopali invested Rs 25,000 to get the drip system in his field and is waiting for the next harvest to see the results. Says Gopali: "Water is scarce here. With this system I can irrigate the field year round. If I get three yields a year, I will recover my investment in two years." (Source: Nepali times)



Drip water successful business model - Click here to read

Wind Energy in Nepal

"According to a study by the Alternative Energy Promotion Centre (AEPC), Nepal has the potential to generate 3,000MW from wind energy, with the Kathmandu Valley alone capable of producing 70MW. On average, Nepal gets 18 hours of wind every day and at least two good windy days a week, and in some places like Kagbeni, 200MW could be generated from a single plant. Along with private firms and development organisations, the government too has shown interest in tapping into this resource."

Tuesday, March 15, 2011

Pro enterprise financial reform in Nepal ??

Bankers have expressed serious concern about the lawmakers’ proposal to amend the proposed Banks and Financial Institution Act (BAFIA), saying that the proposal, if implemented, would lead the banking sector to a disaster.Lawmakers, especially from the UCPN (Maoist), recently made such proposal to the Parliament.

Concern Number one : - Bankers’ opposition starts from amendment proposal that seeks to replace the term ‘economic liberalisation’ by ‘self-reliant mixed economic system’ in the preamble of the proposed BAFIA. “Progress achieved so far in the banking sector is due to the economic liberalisation policy,” bankers said at a press meet on Monday. “Are we heading back towards the old controlled system?” asked Nepal Bankers’ Association Vice President Rajan Singh Bhandari.

My Take: term it economic liberalisation’ or ‘self-reliant mixed economic system,Does it really matter ? No matter what you term your "banking ideology model" in this age of globalization, Nepal has to comply by the global financial rules ( WTO agreement , IMF,BASEL III) .......... Remember the recent " No string attached loan" from IMF ??

Concern Number TWO : Bankers are mainly concerned about some preventive measures and compulsive provisions in the proposal. As per the proposal, banks should lend to projects by putting up the same project as collateral.Bankers said this provision proposed by lawmaker and industrialist Padma Jyoti was impractical in Nepal’s context as it would lead to huge defaults. Currently, banks in Nepal lend against the collateral of other fixed assets.

My take: Little financial innovation can help .... Think about how private equity/ venture funds capital structure works ......Equity investment, quasi equity investment,strong due diligence ..... As of now Nepali regulation does not allow Non banking financial institution,accepting the provision will give Banks first mover advantage in private equity space....This provision will also help cash strapped startup or existing businesses to flourish ......This provision if amended can catalyze innovation and entrepreneurial revolution in the country.....Bankers also need to realize that high risk = high returns ......

Concern Number Three :Lawmaker Sapana Pradhan Malla has proposed that BFIs will have to invest at least 5 percent of their total loans to rural and economically disadvantaged groups. She has also proposed that BFIs should allocate at least 5 percent of their total loan exposure for venture capital to encourage new entrepreneurs. Malla said her proposal is aimed at making banks socially responsible. “D Class financial institutions alone should not be made accountable to reach to the rural poor,” she said.However, Nepal Credit and Commerce Bank CEO Ratna Raj Bajracharya said the government should create a conductive environment for banks to go to the rural people instead of imposing conditions. Bankers also sought a clear policy on venture capital.

My take: Venture capital focusing on rural sector can attract huge foreign direct investment.... Investments that provide capital, expecting financial returns, to businesses (fund managers or companies) designed with theintent to generate positive social and/or environmental impact is called Impact investment....A variety of investor types currently participate in the impact investment field , including development finance institutions, foundations, private wealth managers, commercial banks, pension fund managers,boutique investment funds, companies and community development financeinstitutions. These investors operate across multiple business sectors, including agriculture, water, housing, education, health, energy and financial services."According to the JP Morgan bank over the next 10 years urban affordable housing, rural access to clean water, maternal health, primary education, and micro-finance - serving the population at the "base of the economic pyramid have potential profit opportunity between $183 and $667 billion and a potential investment opportunity between $400 billion and $1 trillion (globally).

Monday, March 14, 2011

Chaudary group and rural farmers ......................

In Business School when we read or talk about Big Multinational Companies procuring raw material from the Bottom of the pyramid sellers/farmers, we often hear about Pepsi-Contract farming or ITC E-coupal

Here is an example from Nepal..... Chaudary Group,One of the biggest conglomerate in Nepal ( total asset 500 million + ) buys herbs direct from the farmers in rural Nepal ................


"Chaudhary Group, Nepal's one of the largest conglomerates has entered to develop and promote herbal industry through public-private partnership approach in Nepal. Thus, Chaudhary Biosys (Nepal) Pvt. Ltd. (CBNL) was established in 2004 to collectively work with INGO's, Government Agencies and Communities in the field of Non-Timber Forest Product (NTFP) by establishing a world class Medicinal and Aromatic Plant based Processing Industry to uplift the less privileged community in Nepal" Click here to read more

Convert Trash into Cash

"Growth in the population and number of households is the foremost factor affecting solid waste and its management. Cities are growing at a rate ranging between five percent and 12 percent—much higher than the overall growth rate of Nepal (2.24 percent). Major cities like Kathmandu and Pokhara are estimated to double their population within the next ten years. With rapid urbanisation and changing consumption patterns, solid waste management has become a major challenge in most of the nation’s urban centres, particularly the larger ones. According to the Central Bureau of Statistics, only 17 percent of urban households have their waste collected by waste collectors. Furthermore, in low-income households (indicated by houses having no toilets) only two percent have their waste collected. " (Source:Kathmandu Post)

Healthcare in Nepal

Friday, March 11, 2011

Business Model for Rural Nepal ...

  1. A Pay-Per-Use approach in which consumers pay lower costs for each use of a group-owned facility, product, or service. This limits the impact on their cash flow while the sheer numbers of consumers makes the proposition sufficiently attractive for thirdparty providers.
  2. A pared-down, No Frills service that meets the basic needs of the poor at ultra-low prices and still generates positive cash flow and profits through high volume, high asset utilization, and service specialization.
  3. Paraskilling, which combines No Frills services with a reengineering of complex services and processes into a set of disaggregated simple standardized tasks that can be undertaken by workers without specialized qualification.
  4. Distribution networks that reach into remote markets via Shared Channels, piggybacking products and services through existing customer supply chains, thus enabling poor people to afford and gain access to socially beneficial goods
  5. A system of Contract Production that directly involves small-scale farmers or producers in rural supply chains. The contractor organizes the supply chain from the top, provides critical inputs specifications, training, and credit to its suppliers, and the supplier provides assured quantities of specialty produce at fair and guaranteed prices.
  6. A variety of Deep Procurement setups that bypass traditional middlemen and reach into the base of the economic pyramid, enabling direct purchases from large networks of low-income producers and farmers in rural markets and often providing training for quality and other specifications.
  7. Demand-Led Training that applies a formal-sector “temp agency” model to down-market opportunities, with enterprises paying a third-party to identify, train, and place employees for job openings at the edges of the formal and informal sectors. Click Here to read more (Source:Monitor Group)

Sunday, March 6, 2011

Tele medicine for rural Nepal ??

Problem: "Many public health centers in the rural areas of the country have remained without doctors for several months. Reportedly, 54 health centers in 36 districts and some district hospitals are without doctors as they are reluctant to practice in remote places like Mugu, Rolpa, Dolpa, and others, where living conditions are harsh and luxury a far cry. In Tahu health centre, Palpa, for instance, a doctor has remained absent from duty for 11 straight months and that too without informing the authorities. On an average, doctors remain absent from duty for as long as six months. " Click here to read more


Solution ?: "Telemedicine uses ICT to "provid[e] accessible, cost-effective, high-quality health care services," in the words of a recent WHO Global Observatory for eHealth report. Telemedicine models, in which rural patients are connected to trained physicians over telephone or Internet, can become the first point of access for a variety of illnesses and diseases such as eye related issues, intestinal problems, infections and heart disease. Most importantly, patients get into the health system early and do not delay care seeking for fear of transportation and costs.

Today, CHMI profiles more than 55 telemedicine programs globally including 24 in India (program implementers and CHMI's partners in 16 countries are continually adding new programs to the open database)." Click here to read more

Health sector attracts huge investments | National | Business | ekantipur.com

Health sector attracts huge investments | National | Business | ekantipur.com