Experts call for streamlining Nepal's diplomatic missions amid ad hoc political decisions to open new embassies

They suggest the government review diplomatic missions based on functionality, affordability and Nepal’s national interest

KATHMANDU, Aug 4: The government decided to open a Nepali Embassy in Portugal on November 9, 2023, and also recommended an ambassador. The decision came amid ongoing calls to streamline the number of Nepali diplomatic missions abroad, given the country's ailing economic condition. 

However, as the government that made the decision collapsed even before the ambassador could assume office, there was hope that the new government, comprising the country’s two big parties – the Nepali Congress and the CPN-UML – would reconsider the decision. After all, several leaders of the UML, then in opposition, had publicly criticized the decision.

Although the ambassador's name was changed, the decision to open a new embassy in Portugal remained unchanged as the government recently recommended ambassadors to 18 countries, including Portugal.

Nepal currently has 31 embassies, seven consulates, and three permanent missions to the United Nations. The annual cost of maintaining these embassies is around Rs 3.5 billion each year.

Experts argue that the decision to open embassies without proper study and expected returns in terms of trade, investment, and other forms of economic cooperation is a case of policy corruption that needs to be addressed.

Former Ambassador Dr Dinesh Bhattarai expressed surprise at the ad hoc decision to increase the number of embassies instead of streamlining existing ones and making them resourceful. 

“I think we have established diplomatic relations with 183 countries so far. It is good to open embassies in each of these countries. But since our economy does not support us, we should be pragmatic in our decisions,” said Dr Bhattarai, calling for a thorough review of our existing diplomatic missions.

Experts argue that the number of Nepali embassies can be reduced as technology has created a much more globally connected world and transformed international diplomacy. They point out that it is not necessary to open a new embassy to provide consular services to a few thousand Nepali nationals – something that could be done through a few mobile camps a year.

They also suggested that Nepal could also follow the practice of Singapore, which bases a few ambassadors at the foreign ministry. These ambassadors make periodic visits to their countries of accreditation according to a prearranged activity plan, making the diplomatic representation highly cost-effective.

Ironically, the number of embassies is increasing even as the call for reducing Nepali missions abroad grows. During budget discussions in parliament last month, CPN-UML lawmaker Raghuji Pant said that an economically poor country like Nepal cannot afford to maintain 40 diplomatic missions abroad. He noted that it cost around Rs 3.31 billion in the last fiscal year to run 30 embassies, seven consulates, and three permanent missions abroad, with 238 employees. 

Barely a month after he expressed this view in parliament, the government led by his own party endorsed the decision of the previous government to add a new embassy in Portugal. 

“It is not difficult to understand that the embassies are being added at the interest of political party leaders. The appointment of ambassadors has become an easy means to reward their loyalists,” argued a former ambassador, who asked not to be named. “Given that embassies are opened without examining potential political or economic returns to the country and that ambassadors are appointed without considering their expertise and skills, this is a serious case of policy corruption.”

Nepal currently has embassies in India, China, Japan, South Korea, Myanmar, Bangladesh, Sri Lanka, Pakistan, Qatar, the UAE, Saudi Arabia, Israel, Oman, Bahrain, Kuwait, Malaysia, Thailand, Egypt, Australia, the UK, France, Germany, Belgium, Denmark, Spain, Portugal, Russia, the USA, Canada, Brazil, and South Africa. Nepal also has permanent missions to the United Nations in New York, Geneva, and Vienna, and consulates in Hong Kong, Lhasa, Calcutta, Saudi Arabia, New York, Chengdu, and Guangzhou.

Former Ambassador Vijay Kant Karna argues that Nepal should conduct a serious review of its embassies, as many that were necessary in the past are no longer relevant in terms of bilateral cooperation. The government has formed several task forces to review the need for diplomatic missions abroad, but the suggestions of these task forces have rarely been implemented as political leaders' decisions are often dictated by partisan and personal interests rather than national interests. 

Karna, who served as Nepal’s ambassador to Denmark, believes that the number of embassies can be reduced significantly if a serious review is conducted. “Of course, it is the duty of the government to provide consular services to Nepali nationals no matter where they are living. But we should devise a smart method of providing such services,” he added.

Karna believes that Nepal can review embassies in countries like Myanmar, Egypt, and several European countries, and in a few other places where Nepal has limited interactions.

As the country’s recurrent expenditure exceeds 70 percent of the total revenue, Nepal urgently needs to modernize its governance structure, create efficiencies, and optimize limited resources. Although there seems to be unanimity among experts and policymakers on the need to review the number of Nepal’s diplomatic missions abroad, experts believe that partisan interests of politicians and the influence of vested groups drive politicians to make ad hoc decisions regarding both civil administration at home and diplomatic representation abroad.

As a matter of fact, former Foreign Minister Pradeep Gyawali, during the previous stint of the KP Sharma Oli-led government, formed a task force led by former Ambassador Rudra Nepal to review Nepal’s diplomatic representations abroad and suggest streamlining them based on functionality, affordability and broader national interests. The task force then suggested the government not open a residential embassy in Portugal, even as there was mounting pressure to do so.

Instead, the task force suggested shutting down the embassies in Denmark, Spain, South Africa, and Canada and opening new embassies in Turkey, Italy, Kenya, Indonesia, and Singapore. The report is gathering dust as shutting down existing embassies has become politically challenging for those in power. 

Dr. Bhattarai, who also served as foreign relations advisor to former prime ministers Sushil Koirala and Sher Bahadur Deuba, said it is high time the government dispassionately assessed each diplomatic representation and embassy, considering functionality, affordability, and national interest. “The government should then focus on empowering selected missions that could oversee activities at a regional level and provide them with extra financial and human resources,” he added.