Nepal's youth are tech-fluent while the government lags behind in digital adoption. This disconnect represents a significant challenge for political stability and governance in the country.
When Singha Durbar caught fire recently, citizens expressed concern about the data centre's safety, recognizing its critical importance for government operations. New generations understand digital infrastructure's role in national functioning, yet the government has not kept pace with technological expectations.
Nepal established a federal republic system after considerable political struggle, yet ordinary citizens report minimal improvement in daily life. Accessing public services remains burdensome, and political affiliation determines service accessibility rather than merit or need. This rent-seeking culture perpetuates inefficiency across government systems.
Generation Z, having grown up with smartphones and internet access, finds this unacceptable. They demand efficient systems where bribes and party loyalty prove unnecessary for basic services. The recent youth protests partially reflected frustration with government's failure to embrace technology.
The authors propose four pillars for Nepal's digital transformation:
Policy Integration: Nepal possesses a Digital Nepal Framework requiring updates. Recent initiatives include a National AI Policy and cybersecurity legislation. However, these policies exist in isolation when they should coordinate, since digitalization creates data for AI systems, cybersecurity protects that data, and frameworks must integrate all components.
People and Literacy: Despite 80 percent mobile phone ownership, only 31 percent demonstrate digital literacy. Citizens primarily use phones for social media, unaware of government services, banking, and shopping availability online. Government must address this knowledge gap through comprehensive literacy programs teaching service navigation, fraud recognition, and data protection.
Infrastructure Development: Private sector progress significantly exceeds government efforts. Financial institutions and fintech companies adapted quickly; 28 million use mobile banking, and QR transactions increased substantially. Apps like Pathao and Indrive demonstrate urban adoption success. However, the government's Nagarik App faces serious implementation challenges, with inconsistent performance across Apple and Android platforms.
Government should function as infrastructure enabler by expanding WiFi networks, data storage facilities, and network towers to reach remote areas. Digital benefits must extend nationwide, reducing the digital divide.
Security Concerns: Increased digitalization creates vulnerability to cyber attacks from distant locations. Nations worldwide have experienced disruptions from hacking. As adoption grows, systems become increasingly vulnerable. Nepal should collaborate with international organizations like the World Bank on cyber resilience initiatives and develop domestic data centres requiring stable power and water infrastructure.
Successful digitalization means simplified processes: renewing driving licenses without queues, obtaining tax clearance through clicks, and registering businesses without intermediaries. Estonia provides a successful international model for digital transformation that Nepal might emulate.
The authors conclude that Nepal's youth expect governmental modernization. While steps toward digitalization exist, implementation speed fails to meet citizen expectations for change.
Bishu works as a data scientist at the World Bank's Washington D.C. headquarters; Indra serves as a lecturer at BridgeAI Academy in Kathmandu.