Nepal’s Green Gamble: Can Legalizing Cannabis Transform to Shangri-La?

Nepal, a nation recognised for its magnificent landscapes and rich culture. Nepal’s economic development and progress have faced major challenges due to its continuing political instability. But in the middle of all of this chaos, there's a bright spot that could change Nepal's economic destiny: Cannabis (Marijuana).

Imagine the scene with breathtakingly beautiful Mountains residing peacefully in the background. Ancient temples echo with hymns while incense burns its scent into the air? You can imagine Nepal's peaceful environment. The beginning of a brave new path that could reshape its cultural and economic landscape. We are talking about cannabis, which used to be farmed secretly and remained illegal, but today it is becoming public, potentially making Nepal a paradise for medical research and development. As the world progressively embraces cannabis for its medicinal value, Nepal's decision allowing its growth for medicinal purposes marks a turning point. Could this be the game changer or beginning of an era to transform Nepal into Shangri-la?

Nepal has approved cannabis growth for medicinal purposes only. This historic decision, made by Finance Minister Nandakishor Pun during his budget statement on May 28, 2024 (15 Jestha 2081 BS), seeks to use cannabis as a raw material in the pharmaceutical business. This dramatic move in drug policy opens a new chapter in Nepal's approach to cannabis, a plant with profound cultural and historical roots.

Historical and Cultural Context
Cannabis has a long history in Nepal of religious, medical, and recreational use. Cannabis has not always been just another plant; it is more than just simple foliage. It shall be seen as used in religious rites, most remarkably in Hinduism, where cannabis is associated with Lord Shiva. Sadhus and other ascetics have long been known to use cannabis in much-diverse form, believing that it helps them attain spiritual enlightenment. Also, the plant has been used traditionally in medicine as an analgesic and anti-inflammatory.

Though in the 1970s, you will find that things suddenly change. Bowing to Western governments' pressure, in 1973, Nepal revoked all licenses for cannabis and, with the Narcotic Drugs (Control) Act, 2033 (1976) on 22 September 1976, it was eventually banned.

Change in Policy
Fast forward to 2024, and Nepal is reconsidering its stance on cannabis. The legalization for cultivation to be used in medicinal production is a huge turn toward a more progressive approach toward drug policy. It does not have anything to do with the legality of consumption, even for medical purposes, but strictly the cultivation and use of this plant as a raw material in the pharmaceutical production process.

Finance Minister Nandakishor Pun says that this is a good thing about cannabis legalization, reflected in his budget speech referring only to the production of medicines. There are still details of the regulatory framework including guidelines on how to apply them, who can do this?

“Grow the cannabis in the licensing process and condition which can be processed into medicine” Minister Pun said. This information would be announced soon as the government works diligently to establish a robust system that ensures the controlled and responsible use of cannabis for medicinal production.

Medicinal and Economic Potential
According to experts, the global cannabis market would reach as high as $444.34 billion by 2030 at a breakneck pace of 34.03%. And the world medical cannabis market is expected to grow from $17 billion in 2023 to more than $77 billion by 2032.

It is a huge economic and medical prospect that the decision for legalizing cannabis cultivation for medicinal purposes opens up before Nepal. The proponents make medicines with various therapeutic benefits from cannabis plants as a raw material: pain relief, anti-inflammation, treatment against epilepsy, multiple sclerosis, or prevention against chronic pain.

This move could further provide significant economic opportunities for the agricultural sector. Cannabis growing will become a highly profitable business, thus offering employment opportunities and fueling the economy, especially in rural areas where farming is the only source of livelihood. Such a fresh market is sure to attract entrepreneurs and investors from local and international circles, hence accelerating economic growth.

Legalizing cannabis cultivation for medical purposes will breathe life not only into agriculture but also into tourism. Indeed, states with legal recreational cannabis have been blazing through absolutely new frontiers of tourism as travelers search for destinations that promise one-of-a-kind cannabis-centered activities. It could be anything from browsing cannabis dispensaries to going on guided tours across cultivation facilities; visitors are drawn to places that give them an opportunity to soak up this exploding culture. This can be a breakthrough in tourism, popularly referred to as cannabis tourism, which proves to be a goldmine to local economies in terms of huge revenues created and a job opening. Proper farming of cannabis could be one of the ways to attract tourists by offering or showcasing a product out of cannabis. It's when the economy will be enriched and also the appeal of the destination.

This step will also bring Nepal into line with a rapidly increasing number of countries that have recognized the medicinal value of cannabis in pharmaceutical production. That would open up avenues for scientific research and innovation in medical treatments, placing Nepal at the forefront regarding medicinal cannabis.
Regulatory Challenges and Concerns

However, the legalization of cannabis cultivation for medicinal use has its challenges and potential problems. Critics caution that responsible regulation is evidently necessary to obviate, in the first instance, the potential for misuse and illegal diversion of cannabis. Strict controls and guidelines are necessary to avoid possible detrimental social and health consequences.

It should make provisions for licensing; thus, none other than qualified and licensed firms or persons will grow cannabis. This may be followed by very clear guidelines in respect to cultivation and processing, coupled with monitoring and enforcement mechanisms. Other provisions include public education and sensitization programs, which should help to enlighten the citizenry on legal and medicinal matters regarding cannabis and help in eradicating myths and stigma.
There is also a risk of diversion for illegal use, undermining the benefits of legalization. Effective law enforcement, in conjunction with international agencies, will be central to containing this issue and to ensuring that illegal diversion does not occur.

Global Context and Lessons Learned
Many countries have already legalized cannabis for medicinal use, which is a big lesson for Nepal. Other countries like Israel, Germany, and Canada set up quite exhaustive legal and institutional frameworks, which ensure the controlled and safe application of cannabis for medicinal purposes, complete with strict licensing procedures, control measures, and mechanisms for monitoring and enforcement.

In Canada, legalizing non-medical cannabis in 2018 has seen. An increase use of cannabis for adults from 22 years 2017 to 27%. However, while social justice benefits such as reduced criminal arrests are notable the country has also faced challenges such as a rise in the number of high-potency products and edibles have been linked to hospitalizations related to cannabis. This highlights the importance of stringent regulations and public education.

Strategy of Pakistan's economy. Cannabis has been legalized for medicinal and industrial purposes establishing the cannabis control and regulatory authority. With this move the country hopes to leverage favorable growing conditions to tap into the global cannabis market potentially boosting its economy amidst significant financial challenges. However, a strict fine and regulations have been imposed against them to prevent misuse.
Nepal can learn from these examples and adapt the best practices to its unique context. By doing so, Nepal can make sure that the legalization is successful and avoid potential pitfalls. Cultivation of cannabis if used for medicinal purposes it is beneficial to the country.

High Hopes and Hard Realities: Is Nepal Ready to Soar?
The bold green decision taken by the government on the legalization of cannabis for medical purposes has raised the high hopes to people that it really can be the gamechanger for Nepal. This move has the potential to bring substantial economic benefits, invigorate the agricultural sector of Nepal as a global leader in production of cannabis for medicinal purposes. The success of this initiative however depends on the ability of the federal government to establish a strong and comprehensive regulatory framework.

The government should look into it whether the guidelines are clearly spelt out, effective controls are put in place, and efficient enforcement mechanisms installed for the effectiveness of cannabis cultivation. This will avoid misuses and result in responsible usage of cannabis. This should be done parallel to public campaigns on education and awareness of medical use, reducing stigma from medical use, and creating environments where people consume responsibly.

Whether Nepal likes it or not, the country will need to move quickly to take advantage of the global cannabis industry today. There are already many countries advancing in this field with highly advanced technologies and research capabilities. Delaying the action can mean losing out on. Other nations better equipped and more experienced dominate the market.

It is from the historical context where cannabis was once classed as a harmful drug which led to international campaigns against its use. In this historical context cannabis offers new economic possibilities but it also comes with risks. Therefore, Nepal should not rely solely on Cultivation of cannabis. In order to ensure a resilient and sustainable economy a diversified economic strategy is essential with growth across diverse sectors.

Even now cannabis is still widely available across the country though it remains illegal in some parts. This paradox underscores the need for legalization not just for medicinal purposes but potentially also for other regulated uses like making various products from the plant. By adopting a broader legalization Nepal can implement a strategy. The cannabis market can be managed more effectively turning it into a significant economic asset rather than just a commodity allowing it to operate in shadows in this case.

Finally, Nepal's decision on legalization of cannabis production marks a transformative moment in human life. The move reflects a global trend to recognize and regulate cannabis for its therapeutic benefits. As Nepal steps on a new adventure. This journey must be carefully thought out. Strategy to ensure that cannabis becomes a key component of its economic future while also protecting against the risks. Nepal can become a true cannabis Shangri-La with the right approach combining tradition, innovation and economic opportunity into a powerful new chapter for the nation.

The writers Bhaskar Pant, Rojina Moktan, and Dikshya Jha are MBA III Trimester Students at SAIM College, Old Baneshwor.