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A Disaster’s Warning for Nepal’s Development Model

The August 26 Bhotekoshi disaster has reignited debate over whether Nepal’s current development model is suited to its fragile Himalayan environment and growing climate and geological risks.
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By Suresh C Chalise

On the morning of August 26, 2026, Nepal’s Rasuwa district experienced an appalling disaster. It shook the nation and raised serious international concerns, as citizens of dozens of countries were affected. The gravity of the unfolding national tragedy, combined with his profound concern, prompted President Ram Chandra Paudel to address the nation. On September 7, while extending his condolences to the families of those who lost their lives, the President also urged the country to reassess its prevailing development model.



The calamity, as a matter of fact, not only shook the entire nation of Nepal but also captured the attention of the global community, serving as a stark warning of the potentially dire consequences that geological and environmental dynamics can unleash across the wider Himalayan region. The scale and intensity of the catastrophe also exposed the profound vulnerability of a region shaped by active tectonic forces, fragile ecosystems, and rapidly changing environmental conditions. The climate-induced events recently witnessed in Rimbi village of Sikkim and in parts of Uttarakhand are but a few stark examples in this regard.


In Nepal, the initial reports of the August 26 disaster assumed that the lower part of a glacier in the Himalayas had collapsed and crashed onto the basin floor. The intensity of the crash was so immense that it produced a tremendous sound accompanied by a tremor. The collapse of a large mass of snow and rock triggered a high-speed flash flood, which unleashed an avalanche of cryospheric water and debris into adjacent riverbeds. This led many to assume that the high-speed flash flood had been caused by an earthquake. The assumption was plausible, as the Main Himalayan Thrust (MHT), which lies beneath the Himalayan range, renders the entire area highly seismically active, as confirmed by Nepal’s National Earthquake Monitoring and Research Center. According to the NEMRC, minor earthquakes of less than magnitude 4 occur almost daily across Nepal. However, the U.S. Geological Survey later contradicted the general assumption and asserted that the reported tremor was seismic energy generated by the collapse of glacial rock and ice.


Colossal Loss and Damage


It has been about a month since the catastrophe occurred, and nationals from more than 17 countries are reportedly among those affected. As search and rescue operations continue, the number of fatalities has reached about 1,500, with about 6,000 people missing and many more injured. Besides the human losses, the economic cost for Nepal is also massive. It may take years, if not decades, to fully recover from the calamity-induced damage involving billions of rupees. In addition to these immediate losses, the broader social, psychological, and economic ramifications of the tragedy are unfathomable and have yet to fully unfold.


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Natural Calamity as an Enduring Challenge


Given its fragile topography and the continuing geological activity along the MHT, earthquakes, glacial lake outburst floods, flash floods, and similar hazards will remain persistent challenges for Nepal. A study carried out by DPNet-Nepal in 2019, covering the 45-year period from 1971 to 2016, recorded 26,665 disaster events, an alarming figure. Human fatalities resulting from natural disasters during this period averaged 974.77 lives annually, in addition to property damage amounting to billions of dollars.


The disaster of August 26 also revealed that Nepal’s snow-covered mountains are unstable and vulnerable, as chunks of rock were found to have been part of the avalanche that struck along the Bhotekoshi and Trishuli rivers. In this connection, it is vital to take into account the warnings issued by earth scientists following the devastating 2015 earthquake in Nepal, which claimed more than 9,000 lives and caused extensive destruction of infrastructure. They cautioned that, given Nepal’s location along the collision zone of the Indian and Eurasian tectonic plates, the country could experience even more powerful earthquakes in the future. This concern is also reinforced by seismologists at the Swiss Federal Institute of Technology (ETH Zurich).


Fresh Water as a Precious Resource


Amid growing recognition that natural calamities constitute an enduring threat to Nepal’s development, the country nevertheless remains endowed with a unique geographical setting and abundant natural resources. Its vast freshwater resources, together with the spectacular beauty of the Himalayas, have increasingly placed Nepal at the center of debates on the optimal utilization of these resources while safeguarding its fragile mountain environment. This debate has been further intensified by the devastating flash flood of August 26, 2026, as more than 6,000 rivers and streams flow through Nepal, carrying freshwater downstream. As part of the Hindu Kush Himalayan water system, Nepal is a crucial source of freshwater and plays a vital role in ensuring water security for nearly two billion people across the region.


Freshwater is one of nature’s most valuable strategic resources and is therefore central to Nepal’s long-term prosperity. Beyond its essential ecological and economic functions, Nepal’s rivers hold immense potential for sustaining diverse flora and fauna and generating clean energy. In recent years, Nepal has exported an average of approximately 1,000 megawatts of clean electricity during the wet season. While the recent calamity damaged several hydropower installations and associated infrastructure, it also starkly highlighted both the immense economic value of water resources and the vulnerability of the critical infrastructure underpinning the country’s clean-energy sector.


Revisiting the Development Model?


Following the recent calamity, the plan announced by Nepal’s Minister for Energy, Water Resources and Irrigation to drain water from potentially hazardous glaciers and glacial lakes and prohibit the construction of settlements along vulnerable river corridors is commendable. However, other issues related to the country’s fragile environment and risky human settlements also warrant attention. For example, the relocation of families living on environmentally vulnerable hilltops remains a challenge. It has also been extremely costly for successive governments to provide basic amenities, including roads, electricity, drinking water, health centers, and other essential services, to such communities.


Amid these daunting challenges, particularly in the aftermath of the August 26 disaster, Nepal—with its three interdependent ecological zones of the Mountain, Hill, and Terai regions—is now engaged in a broader debate over its development model. This calls for a critical reassessment of whether existing patterns of natural resource use, human settlement, and socioeconomic activities are compatible with the distinct environmental conditions and ecological carrying capacities of each zone. At the same time, Nepal’s remarkable ecological diversity offers a significant comparative advantage, making greater socioeconomic integration among these regions imperative. Such integration could help harness resource complementarities and generate synergies not only at the national level but also beyond. The broader question, therefore, is whether Nepal has been sufficiently leveraging its distinctive strengths and resources through stronger interregional collaboration and complementarity. A third issue the country faces is whether, given its geologically young and tectonically active mountains, it should continue to pursue large dam projects for electricity generation or embrace the notion of ‘small is beautiful’ of development, as envisaged by E. F. Schumacher, who argued that development should place human beings at the center, be environmentally sustainable, and be pursued through decentralized means.


The concluding thrust here is that Nepal, given its persistent exposure to seismic hazards, landslides, and increasingly destructive flash floods, should seriously consider a revised development model that places greater emphasis on risk-resilient settlements while sustainably harnessing the natural resources and comparative strengths distributed across its diverse ecological zones. In this connection, the Foreign Minister’s statement of September 17 on the need to revisit the country’s existing development model is also significant in addressing the country’s primary yet enduring challenges. Nevertheless, Nepal’s evolving development paradigm will remain incomplete unless it is firmly anchored in the country’s sociocultural values, with the overarching objective of fostering national cohesion and enhancing societal resilience in the face of persistent sociopolitical instability and economic vulnerability.


The author, an Alexander von Humboldt Fellow, is the Foreign Affairs Adviser to the President of Nepal.

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