Wartime Economics in Nepal
Along with most of the world, Nepal is feeling the effects of war in Ukraine; from imports to inflation. Oil prices are something that Nepal is worried about, as oil prices increase internationally Nepal is feeling this impact. The state owned company, Nepal Oil Corporation is losing Rs5 billion a month, around 60 million USD, as it has been selling fuel lower than its buying price.
Nepal is dipping into its foreign currency reserve in order to pay for imports, as prices on petroleum rise. Petroleum is 13% of Nepal’s imports so this is a huge financial loss. Continually, the imports of iron and steel are the same for volume, but Nepal is now paying 1/3 more.
Nepal has very few exports, so increasing international prices will begin to hit the country hard soon as it relates to food and other commodities. Inflation has been steadily increasing, and soon may hit double digits, which will impact the poor the most. Prices of all consumer goods have already raised 15-20%, and will only keep rising. 
Nepalese Alliances
Typically Nepal is neutral in most international issues. However despite originally claiming this, Nepal is proving to be more on Ukraines side. Most of Nepal’s aid comes from Western countries, and these countries side with Ukraine. This is causing Nepal to lean towards Ukraine in order to keep in good graces with these countries.
Global Efforts in War
Although war has stretched on for over 6 months, little progress has been made towards defeating Russia. The United States has committed over 100,000 troops to Ukraine, and billions of dollars. Refugees have received support, and over 6 million people have fled the country. In July the UN recorded 5,000 civilian deaths. However the fighting drags on, and Ukraine is making progress in the northeast, yet Russia is supposedly sending in new troops soon. The UN and EU continue to condemn Russia’s actions, while Russia continues to hold Ukrainian ports and block shipments. This brings us to Reich’s article where he discusses the Hunger Plan in WWII in order to weaken and kill Soviet people and destroy their industry. I think that although Reich creates a terrifying view that it isn’t necessarily impossible. While Russia blocks exports and controls ports, all of this food that isn’t being exported was meant to go to developing countries. Before the war Ukraine had been one of the largest providers to the World Food Program which assists poorer populations. Reich’s article is very relevant to the worries that this issue of exports from Ukraine will only increase with time.
