“I see Nepal–Switzerland ties entering a new era of innovation”

As Nepal develops and moves forward, so does our cooperation and so does our program. That is why we want to move from aid to trade. We want to work so that Nepalese companies become more competitive, that the population and the youth become more skilled, and that there is a business environment that allows and attracts investment to create jobs.

Nepal–Switzerland relations, spanning over seven decades, are entering a new phase of deeper engagement in innovation and economic partnership. Since the establishment of diplomatic relations in 1956, Switzerland has made significant contributions to strengthening Nepal’s rural infrastructure, technical education, trail bridge construction, sustainable agriculture, tourism, federalism, and governance reforms. In recent years, cooperation has further expanded into trade, investment, climate action, labour migration, and vocational training, reflecting a shared commitment to sustainable and inclusive growth. The 5th Meeting of the Nepal–Switzerland Bilateral Consultation Mechanism, held in Kathmandu last week, reviewed ongoing Swiss-supported development cooperation in Nepal, explored expanded engagement in trade, investment, and technology, and reinforced collaboration in climate action, labour migration, and vocational education under the existing development framework. Republica Editor Kosh Raj Koirala spoke with Swiss Assistant State Secretary for Asia and the Pacific, Ambassador Markus Leitner, who was in Kathmandu to co-chair the meeting, about the evolving partnership and emerging areas of cooperation in a changing global context.

Excerpts:

Republica: Nepal and Switzerland are celebrating 70 years of diplomatic relations this year. From the Swiss perspective, what has made this partnership so unique and enduring?

Markus Leitner: It goes back to the 1950s when we started with the first aid mission, and it very quickly went beyond just mere development cooperation. I would say, obviously, development cooperation is the backbone of our first step, or at the start of our presence in Nepal. But there are other elements as well. In the 1950s, Mount Everest became a topic for us. The Swiss expedition of 1952 made one of the first serious attempts to summit Everest and paved the way for later success. In 1956, a Swiss expedition went on to achieve the first ascent of Lhotse and also successfully climbed Everest. These achievements strongly inspired people in Switzerland when the mountaineers returned home. And that brought Nepal onto the map for the Swiss public. And from there, it grew into this partnership that we established, also thanks to the diplomatic relations that we created. It grew under the motto of trust, partnership, and progress.

A newly released book “Bridging Nations – 70 Years of Swiss–Nepal Friendship” uses trail bridges as a symbol of cooperation. Why has this particular story become such a defining chapter in Nepal–Swiss relations?

I was really pleased to unveil this book in the presence of former Finance Minister Khanal. I think trail bridges are a very successful example of our cooperation. Because obviously first, you look at it from an engineering point of view, but the bridges are far more than that. And I am glad to hear that you are also a beneficiary, because we have seen how these bridges transform lives and societies, creating more than just steel and an engineering feat. So this became a symbol of the cooperation program, which is far broader than the trail bridges, spanning vocational training, rural development, and private sector development projects. But trail bridges became a symbol of the partnership that we have. In that spirit, we saw a growing Nepalese partnership—not just by bundling initiatives, but by building local know-how. And it is a fantastic result. Now we are out of building bridges, because in Nepal, you build the bridges on your own, you have the know-how, you have the capacity to do that. That is the best possible result we can achieve as partners.

Switzerland’s engagement in Nepal began in some of the country’s most remote and challenging regions. How has this long development partnership shaped Switzerland’s understanding of Nepal over the years?

I think that if you work in these areas, you understand what is happening on the ground. And that is the basis for effective work that you want to achieve. So it keeps us grounded and helps us to understand. Switzerland is a federal state. We know that development comes not from the center to the peripheries, but from the peripheries to the center. So if you want to make a change, you have to work with the peripheries and work in the region rather than just work in the center and hope that this eventually will spread. So that is the concept that we, as a federal state, very much believe in. And that is another reason why we chose to work in some of the remote places, as you call them.

Toni Hagen is remembered fondly in Nepal for his contribution to strengthen our relations. Do you think personalities like him helped create a special emotional bond between our two countries?

Toni Hagen was a fantastic ambassador on both sides. I would say both for Nepal in Switzerland and for Switzerland in Nepal. And he brought a lot of these Swiss values of curiosity, humility, and technical expertise. So yes, he definitely has been an inspiration. And it shows that diplomatic relations are built on individuals, personalities, and people-to-people exchanges. It is not something abstract on paper somewhere. It is down to earth. Toni Hagen is representing this in a very good way. He was a remarkable person, and we are grateful that he led the way, so to say, in this cooperation. So he is very much a symbol for us as well.

Nepal is currently navigating major economic, political, and climate-related challenges. In which areas does Switzerland see the greatest potential for deeper cooperation in the years ahead?

As Nepal develops and moves forward, so does our cooperation and so does our program. That is why we want to move from aid to trade. We want to work so that Nepalese companies become more competitive, that the population and the youth become more skilled, and that there is a business environment that allows and attracts investment to create jobs. So that is what we envision in terms of moving from aid to trade. And we feel there is a lot of potential to attract investment and to make this country more competitive and bring it onto the map for business.

Disaster risk reduction and climate change are promising areas for deeper collaboration. At the moment we have a number of projects already. And these are very much forward-looking. For example, the disaster risk reduction activities that we support. First, I should start by saying both our countries are significantly affected by climate change. Mountainous countries are more exposed than other countries. We feel this with glaciers melting and natural hazards increasing in the mountains. We see this on our doorsteps. So, in Switzerland, we understand the risk that Nepal is facing. You obviously have earthquakes, flooding, sometimes even more exposure. And so this area of disaster risk reduction and climate and mountain cooperation is something that we feel strongly about. We are a founding member of ICIMOD, as you know. So we are also supporting this from a regional perspective. Because we feel it is not just a country issue; it is the whole region that is affected in the same way.

Switzerland has long emphasized decentralization, local governance, technical education, and community-driven development. How relevant do you think these approaches are in Nepal’s evolving federal democratic system?

All these approaches remain very much relevant. Let’s take decentralization; it is a central element to strengthen local capacity, accountability, and inclusive service delivery across all levels of government.

Switzerland is globally respected for its role in peacebuilding and dialogue facilitation. Do you see a continuing role for Switzerland in supporting Nepal’s democratic consolidation and transitional justice process?

We have just seen a major milestone on Tuesday, before the political consultations, when the ambassador signed the Swiss contribution to the transitional justice fund. It is an important signal that Nepal’s new government is committed to this peace process. And it is a good signal as well that the international community is buying into this. Our contribution is to the provision of psychosocial support for victims.

Transitional justice is a key element in a peace process. And we feel encouraged that we can now make this step, and we will definitely be accompanying the process as we have in the past. This journey is not yet complete. We have always stood by Nepal, even when progress took more time. We have always been here. Now, this phase is evolving, and we have reached an important milestone. We will continue to accompany Nepal on this path. Yes.

As Head of the Asia Pacific Division at Switzerland’s Federal Department of Foreign Affairs, how do you view Nepal’s strategic and diplomatic importance within the broader Asia-Pacific region?

With Nepal, we have many commonalities. We are both mountainous countries, we are landlocked countries, and we have important neighbors. Nepal has been sitting between big powers and has managed the situation and has maintained its independence. And today this big power competition is also affecting many Asian countries. So they can learn from what Nepal has been doing, the policy of how to deal with competition, if there are issues, if the big powers have issues with each other or are cooperating well, how does that affect a country like Nepal? I think that it is interesting to learn from the Nepalese experience, and that is not just recent, but this has been around for a long, long time.

Looking ahead to the next 70 years, what kind of Nepal–Switzerland partnership would you personally like to see emerge? And beyond the phrase “development partnership,” how would you describe Nepal–Swiss relations in just a few words?

Well, we now move from aid to trade. And that means we are moving more into investment and more into innovation in terms of our cooperation. I also see a shift from the public to the private sector. The partnership will increasingly be driven by private actors, motivated by the clear benefits of cooperation. It will be less about government decisions and more about shared interests and the opportunities that both sides can offer. As I mentioned, trade, investment, and innovation will be key elements in the future. I remain optimistic—there are many opportunities we can seize. What matters is creating the right framework conditions so that the private sector can step in, take on a greater role, and increasingly drive this cooperation forward.