Shortages

Shortages are nothing new in Nepal. There have been constant petrol shortages, creating long lines of hundreds of vehicles waiting for petrol. There have also been food shortages. In parts of the country there were food shortages caused by a very dry monsoon season. Then the monsoon season came late and too much rain continued the food shortage. Then there was a medicine shortage. This caused the death of around 200 people in the mid-west. Simple medicine was not there that could have prevented fatal diarrhea. We normally joke about diarrhea, but around here it can be deadly.

But now there is a new shortage. Cash. Yes, I realize that Nepal is one of the poorest countries in the world, but I don’t mean a shortage of cash in that respect. I mean that many banks have shut down ATM’s and are limiting the amount of over the counter withdrawals. Some banks are only giving as small as $50. They blame it on a French mint company that should have provided the new cash four months ago. It is also due to the upcoming Dashain festival where people shop like crazy (similar to our Thanksgiving sales) and give money as gifts. I’m sure there is more to the story, however. The government is good at laying blame and taking no responsibility.

But no matter who’s fault it is, the fact is that many people don’t have any money. You may have $1000 in the bank, but you ain’t gettin’ it. Not until more cash can be delivered. Its not much of a problem for me (yet). But it is for those workers whose employers don’t have cash to pay them.

I went on Tuesday to the bank. There was barely enough room to move inside, no exaggeration. People were waiting in line for hours only to find out they can’t take out the money they need. There have also been long lines at all the ATM’s. Those that are still open at least. There is a shipment of money due the first week of October, and that will hopefully end the “crisis.” But until then, I’m watching my cash carefully.

4 Responses to “Shortages”


  1. 1 Susan

    Man, you are gaining some incredible perspectives, even in these final weeks. Of course, the lesson about the cash is not to make you advocate hiding it in coffee cans in the basement, like my Depression-era uncle, but to understand the attitude under which much of the world lives–a day-to-day crisis management lifestyle. That affects just about all decisions they make.

  2. 2 Jaisen

    Interesting. Are all banks exhibiting the same practices? Wonder if there’s a run on the banks. I presume regulations on banks is pretty loose there and it would be easy for banks to over leverage their deposits.

    Why’s everyone blame the Frenchies!? ;)

  3. 3 michael

    Paul, when you you back in town?

  4. 4 michael

    Thanks, Paul. I got your message. Once you’re back, you up to talking to some UC students?

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