Effects of Earthquake 2015 on trans border trade; A study of Tatopani, Sindhuplanchowk

Abstract

Nepal endured a devastating earthquake on April 25, 2015, measuring 7.6 on the Richtescale, along with over 300 subsequent aftershocks. This event resulted in approximately9,000 fatalities, 22,000 injuries, and inflicted damages totaling USD 7 billion. The overallimpact of the earthquake, equivalent to roughly one-third of Nepal's gross domestic product,underscores the magnitude of the destruction. The objective of this study on Effect ofEarthquake-2015 on Trans-Border Trade: A study of Tatopani, Sindhupalchowk was to illuminate several important aspects of earthquake and its effect on trade and economy. Thestudy used a mixed method research design. The qualitative data was collected by KII andgeneral interviews, observations, documents, and records. Whereas the quantitative data wagathered by instrument data, observational checklists, or numeric records from different government agencies. The fieldwork was conducted on March 2024, prior to that researchehas conducted pretest and the data collected from field survey with 135 probability clusters sampling of available population, 40 interviews, 10 KIIs and 3 FGDs were conducted withdifferent stakeholders related to trans-border trade of Tatopani Border. The trend analysis ofthe trade before and after the earthquake was done by the data taken from the department ofcustoms and Nepal Rastra Bank. The results of the study showed that the effect of theearthquake 2015 has adversely affected the trans-border trade at Tatopani damaging the infrastructures, closure of the border, and complete stoppage of the trans-border trade fomore than 8yrs affecting revenue generation and ultimately affecting the national economyHowever, the Government policies and regulations have effectively facilitated the recovery ofTransnational Trade in Tatopani post-earthquake. The research also emphasized theimportance of considering geographic and physical activity levels into account when revisingration. Additionally, the study revealed that despite the adverse effect on Tatopani border, thetrade through Timure, Rasuwa has covered some part of the trans-border trade. The findingof the study highlight the crucial importance of building the earthquake resilienceinfrastructures in Tatopani for trans-border trade. Infrastructure development initiatives haveimproved the resilience of Transnational Trade routes in Tatopani against future seismicevents. Ongoing infrastructure development efforts have faced delays, causing disruptions toTransnational Trade activities in Tatopani. The earthquake has highlighted the importance ofstrengthening cross-border trade partnerships and alliances in Tatopani. The Gorkhaearthquake of 25 April 2015 enormously affected human, socio-economic and other multiple sectors and left deep scars mainly in the economy, livelihood and infrastructure of the country. The study also pointed out some cross cutting issues like rebuilding efforts, geography, disaster and security and optimism for Revival. Chinese authorities are actively involved in rebuilding the Khasa Bazaar, which holds promise for revitalizing economic activity and cross-border trade in the area. It is one of the peaceful and regulated borders with very few security posts. Due to its high altitude, the government of Nepal has not been able to establish adequate checkpoints. According to APF Nepal Headquarters, there are only 09 Border outposts in Nepal- China frontier with disaster management trained team. The high altitude, rugged terrains are the major problems faced by security personnel in this region. Also, transporting necessary logistics and equipment is costly as airlift is required. There is no man-made boundary demarcation on land as indicated in the boundary treaties except for boundary pillars. There is optimism that once the reconstruction is completed, the foot traffic in the vicinity will gradually resume, breathing new life into economic transactions and crossborder trade. The Khasa market in Tibet, initially deserted after the earthquake, is experiencing a revival due to returnees Chinese inhabitants. The research reveals that the substantial economic disruption resulting from the closure of the Tatopani border due to the earthquake highlights the vulnerability of economic systems to natural disasters and changes in trading routes. Following the earthquake, a new trade point emerged, leading to a shift in trade activities.The shift of trade from Tatopani to Rasuwa helps to cushion the national economy from severe disruptions; it results in significant localized economic effects. These include new economic opportunities and infrastructure developments in the Rasuwa area, alongside potential economic challenges for the regions previously dependent on Tatopani.

Keywords: Earthquake, disruption, infrastructure, trans-border, trade