Supporting National Innovation Center in Nepal

I have been working closely with the social entrepreneur Mahabir Pun since 2009, collaborating on diverse projects to promote rural innovation and foster an innovation-based ecosystem in Nepal. This included, among others, setting up a wireless network in 2012 (as part of the Peace Innovation Lab), and piloting a Smart Village model (with funding from Internet Society) post-earthquake in 2015/26.

My involvement with the National Innovation Center began in the early stages of its establishment. In 2012, after Mahabir participated in a conference in China, he consulted several of us via email, proposing the creation of a National Innovation Center. Recognizing the significance of this idea, we committed ourselves to supporting him.

During that time, our request to the government was to help fund a 10MW hydropower project, with the revenue generated supporting the Innovation Center. I played a role in drafting the initial concept note for the Innovation Center and accompanied Mahabir Dai (brother) in meetings with political leaders and bureaucrats to generate support for the idea, both in Nepal and during the Prime Minister's visit to New York.

Five years of engaging with the Nepal Government

The process of seeking government support for the concept was filled with interesting stories and valuable lessons. These insights might seem trivial for experienced political actors, but I found them fascinating as a young and idealistic person in my twenties.

First, I learned that no matter how good an idea is or how logical it seems, obtaining government support without strong political backing is exceedingly difficult. By its nature, the government is risk-averse, and obtaining $5 million from the national coffers posed a risk that no one within the government was willing to bear without a political safety net. Second, the mere announcement of a fund by the Finance Minister does not guarantee its implementation.

In 2014, during a meeting with a particularly influential and supportive young political leader, he informed me that the Finance Minister had invited him for dinner to discuss ideas for inclusion in the country's budget. He requested a two-page document on the Innovation Center and our requirements. To our surprise, several weeks later, we discovered that the country's budget included a $5 million startup fund to promote innovation and entrepreneurship. We were overjoyed that the government had finally listened to us.

However, what we failed to realize at the time was the ensuing political maneuvering. Typically, after programs are announced in the country's budget, a working framework is established as a guideline for the fund's scope and allocation. If the fund remains unused within the following 12 months, it does not roll over but is merged with the pool of unused funds and allocated elsewhere in the next fiscal planning.