







































Ecology, Economy, and Society–the INSEE Journal 7(1): 105-135, January 2024 

RESEARCH PAPER 

Countering Local Disaster Capitalism: Lessons from 
Nepal’s Indigenous People 

Ayusha Bajracharya* 

 

Abstract: Disaster capitalism creates political and economic space for neoliberal 
projects to benefit the wealthy disproportionately while marginalizing Indigenous 
groups. This paper examines how and the extent to which local disaster capitalism 
has affected Indigenous communities in Nepal’s Kathmandu Valley, as they recover 
from the 2015 earthquakes, and how local disaster capitalism ought to be countered. 
Based on an in-depth analysis of local disaster capitalism in Rudrayani Guthi, Nepal, 
the findings of this study demonstrate that Indigenous peoples have been negatively 
affected by state-sponsored disaster recovery schemes, whereas wealthy people and 
businesses have benefitted from them. Such schemes focus on “physical 
reconstruction” and “economic development”, dispossessing Indigenous lands to 
pave the way for housing, motorways, greenfield urban development, and 
hydropower. Many Indigenous groups are forced to be part of such schemes, while 
local disaster capitalism continues in the name of “disaster recovery”. The paper 
highlights the unfortunate reality of the local disaster capitalism taking shape and 
destroying Indigenous lives and livelihoods. The paper concludes by offering some 
principles used by Indigenous peoples while countering local disaster capitalism 
through confrontations with powerful actors and while protecting their land during 
the process of disaster recovery. 

Keywords: Disasters, Disaster Governance, Indigenous Knowledge, Disaster Risk 
Reduction, Political Ecology 

1. INTRODUCTION 

Disasters often create a political and economic space for neoliberal projects 
to benefit the wealthy disproportionately while marginalizing or exploiting 
Indigenous and poor people. This phenomenon is generally labelled as 

 
* School of Social Sciences, UNSW, Sydney. a.bajracharya@student.unsw.edu.au 

Copyright © Bajracharya 2024. Released under Creative Commons Attribution © 
NonCommercial 4.0 International licence (CC BY-NC 4.0) by the author.  

Published by Indian Society for Ecological Economics (INSEE), c/o Institute of Economic 
Growth, University Enclave, North Campus, Delhi 110007.  

ISSN: 2581–6152 (print); 2581–6101 (web).  

DOI: https://doi.org/10.37773/ees.v7i1.1046  

 

 

mailto:a.bajracharya@student.unsw.edu.au
https://doi.org/10.37773/ees.v7i1.1046


 Ecology, Economy and Society–the INSEE Journal [106] 

 

 

“disaster capitalism”. The concept emerged due to the concurrent rise of 
disasters worldwide and increasing globalization and neoliberalization in the 
1990s. “Disaster capitalism” is a term coined by the noted journalist, Naomi 
Klein, in 2007. In Klein’s book, The Shock Doctrine: The Rise of Disaster 
Capitalism (2007), disaster capitalism is defined as an “orchestrated raid on 
the public sphere in the wake of catastrophic events, combined with the 
treatment of disasters as exciting market opportunities” (6). Disaster recovery 
processes are viewed through various lenses, including as windows of 
opportunity to introduce political reforms and as occasions for the corporate 
class to capitalize on disasters (Klein 2007). The relationship between 
disasters and neoliberalism has received widespread attention from scholars 
worldwide, wherein the dominant narrative (Wrights, Kelman, and Dodds 
2021; Imperiale and Vanclay 2020; Sandoval et al. 2020; García López 2020) 
focuses on economic growth and development as the only means to 
address growing economic inequities, ignoring the dangers associated 
with the uncontrolled exploitation of land and Indigenous peoples. 
However, the effects of disaster capitalism extend beyond the economy 
and can destroy Indigenous peoples’ culture, identity, and sense of 
belonging. It can devastate the environment and penalize Indigenous 
peoples—who safeguard more than 80% of the world’s remaining 
biodiversity and live sustainably on the land—by destroying local 
wetlands, seascapes, and landscapes (Ibrahimpašić, Perdikaris, and 
Rebecca 2022). Disasters can create winners and losers, and it is Indigenous 
and marginalized local communities who are most exposed to the negative 
impacts of disaster capitalism at the local level, also known as local disaster 
capitalism.  

In Nepal, Indigenous peoples are struggling to recover from the 2015 
earthquakes perhaps because of the pressures of local disaster capitalism. On 
April 25, 2015, at 11:59 AM, Nepal was struck by a deadly earthquake of 
magnitude 7.8 on the Richter Scale. As people were adjusting and living 
through many small aftershocks, a massive aftershock of magnitude 7.3 on 
the Richter Scale hit again on May 12 at 12:50 PM, causing more casualties 
and damage. The epicentre of the first earthquake was in Barpak, Gorkha. 
The epicentre of the second earthquake was at the border of Dolakha and 
Sindupalchowk. These earthquakes killed 8,896 people, injured 22,302 
people, destroyed 6,04,930 houses, and partially damaged 2,88,856 homes 
(NPC 2015). Altogether, 3 million people were affected, and the estimated 
economic damage was about US$ 7 billion, which is approximately one-third 
of Nepal’s gross domestic product (NPC 2015). In response to the disasters, 
many international donors, Nepali government agencies, NGOs, and 
communities, both within and outside Nepal, tried to help the Nepali people 



[107] Bajracharya  

 

recover from the earthquakes. Yet, it has been widely reported that the 
response was delayed, the government was not held accountable (Shrestha 
and Pathranarakul 2018), women were mistreated (Rai-Paudyal 2016), and 
Indigenous people were neglected (Shrestha et al. 2019). 

Disasters affect everyone, but not everyone is impacted equally. Indigenous 
peoples in Nepal suffered disproportionately following the earthquakes in 
2015. According to Nepal’s census data, Nepal’s Indigenous peoples—also 
known as Adivasi janajati—who have been excluded socially, economically, 
and politically for centuries (Gurung 2019), comprise 35.4% of the total 
population (CBS 2011).1 These people are highly marginalized and are subject 
to poverty, landlessness, and a lack of decision-making powers (Gurung 
2019; Bhattachan 2021). Lama and Tamang (2018) claim that the Tamang 
population suffered the most because of the earthquakes. Over 700 villages 
are estimated to have been affected in these areas where Indigenous Tamang 
peoples represent the majority of the population. Further, in Gorkha, where 
the earthquakes affected the Indigenous Gurung community, households 
headed by Indigenous women suffered significant damage in terms of death, 
injury, displacement, and impact on other livelihood assets. There were 
reports that Indigenous women and girls faced an increased risk of sexual 
and gender-based violence (Rosul et al. 2015). The Newars from Kathmandu 
Valley were also highly affected by these earthquakes. A report published by 
Himalayan Human Rights Monitors (HimRights) features the stories of 
Newar women who lost their houses and were living in temporary shelters 
because of the earthquake. Many women also reported having no source of 
income and a lack of support from the local government (HimRights 2017), 
making recovery difficult. 

This paper aims to investigate: a) how and the extent to which local disaster 
capitalism is unfolding within Indigenous communities in Khokana, Nepal; 
b) what challenges Indigenous peoples are facing in confronting local disaster 
capitalism while protecting their land during disaster recovery processes; and 
c) how local disaster capitalism can be countered using Indigenous 
knowledge and practices.  

The paper includes five key sections. Following the introduction, Section 2 
engages with the literature on disaster capitalism and Indigenous peoples. 
Section 3 outlines the research methodology and introduces the case study 
site, Rudrayani Guthi, which is an Indigenous Newar Guthi in Kathmandu 
Valley. Section 4 presents the findings on the local disaster capitalism 
ongoing in Rudrayani Guthi, Khokana. Section 5 highlights and analyses the 
reasons for the local disaster capitalism taking shape and destroying 

 
1 This is the latest census data available in Nepal.  



 Ecology, Economy and Society–the INSEE Journal [108] 

 

 

Indigenous lives and livelihoods. The paper concludes by offering some 
principles used by Indigenous peoples to counter local disaster capitalism, 
while confronting powerful actors and protecting their land during the 
process of disaster recovery. 

2. DISASTER CAPITALISM AND INDIGENOUS PEOPLES 

Disasters create economic and political space for neoliberal projects. The 
term “disaster capitalism” is used by Klein (2007) in her book, The Shock 
Doctrine, in which she explores how capitalism came to dominate the world 
by leveraging natural disasters or other calamities. The book was turned into 
a documentary film in 2009, in which she argues that neoliberal, free-market 
policies are deeply engrained in many western countries today because of a 
deliberate strategy she calls “shock therapy”. The therapy, according to Klein, 
centres on the exploitation of national crises to push through controversial 
policies while peoples are too emotionally and physically distracted by 
disasters to mount an effective resistance. Therefore, disaster researchers 
refer to disaster capitalism as “second disasters” (Gunewardena and Schuller 
2008), which disproportionately impact marginalized communities and make 
their recovery process more difficult (Schuller and Maldonodo 2016). 

There have been numerous cases of disaster capitalism worldwide under the 
guise of disaster recovery and reconstruction. The origins of disaster 
capitalism stretch back at least into the early 1970s, when neoliberal economic 
policies were implemented in Chile following the establishment of Pinochet’s 
dictatorship. Notably, these policies continue to be promoted and 
implemented following major disaster events in recent years, such as the 2004 
Indian Ocean tsunami and the 2010 Haiti earthquake, among others (Yee 
2018). After the earthquake in Haiti, Haiti was “open for business” (Schuller 
and Maldonado 2016, 65): the telecommunications industry was privatized, 
the lands of local farmers were cleared for development projects, and a 
proposal was floated to promote high-end tourism in Ile-a-Vache, an island 
in Haiti’s south coast (Schuller and Maldonado 2016). Similarly, two days 
after Hurricane Irma in Barbuda (2017), the residents were evacuated from 
the island, and it was declared ruined. The Barbudans believe that the forced 
evacuation was done to grab their land, as a massive US$ 200 million resort 
was proposed to be constructed on the same island by Norbu, a hospitality 
group owned by actor Robert De Niro (Wright et al. 2021). Further, Fluor—
a multinational US construction company that had been a top contractor in 
Iraq after the Iraq War as well as in New Orleans after hurricane Katrina 
(Klein 2007)—was given a $1.2 billion contract by the United States Army 
Corps of Engineers to reconstruct the electricity grid after hurricane Maria 
(2017) in Puerto Rico. These examples show how powerful bodies such as 
governments and businesses profit from disasters at the expense of local 



[109] Bajracharya  

 

communities. The concept of disaster capitalism has received mixed 
reactions. Some criticize it for blending free market ideals with predatory 
corporate behaviour and simplifying political phenomena, while others laud 
it as compelling and defining work. Nevertheless, Klein argues that 
“countries are shocked – by wars, terror attacks, coups d’état and natural 
disasters. And then they are shocked again – by corporations and politicians 
who exploit the fear and disorientation of this first shock to push through 
economic shock therapy” (2007, 25). Thus, it is vital to understand that 
disasters create winners and losers, and that local communities, such as 
Indigenous peoples, are left at the losing margin.  

Indigenous peoples tend to suffer disproportionately from disaster 
capitalism. There have been numerous instances of Indigenous peoples being 
displaced and dispossessed from their land after disasters. For example, after 
major disasters, tourism is often prioritized as a driver of the recovery 
process. These catastrophic events are used by opportunistic tourism 
investors to grab land from Indigenous communities that have been 
temporarily or permanently relocated after the disaster. This happened in 
Thailand following the 2004 Indian Ocean tsunami (Neef 2021) and in the 
Philippines following typhoon Haiyan in 2013 (Yamada, Cabaljao, and Imasa 
2017). The governments of these countries were quick to establish no-
building zones along the coast—ostensibly to safeguard local Indigenous 
communities—but they later exempted resorts and other tourism 
infrastructure from the buffer zone regulations. Similarly, after the 2004 
Indian Ocean earthquake and tsunami in India, the Tamil Nadu state 
government sought to restrict local community resettlement in this zone, 
refusing to help families living up to 200 meters from the high tide line, unless 
they agreed to give up their land and move to new settlement areas beyond 
the buffer zone (Leonard 2007, 59). This meant that numerous Indigenous 
fishing villages, which were dependent on the sea for their survival, had to be 
relocated inland, away from their source of livelihood, leaving the coastal 
strip open for future large-scale tourism development. In Mindanao, 
Philippines, similar dispossession of land occurred in quake-hit areas and 
landslide- and flood-prone areas. Communities of farmers, fisherfolk, and 
Indigenous peoples were barred from returning to their lands. Most lands 
declared to be “no build zones” were located within vast ancestral lands, and 
they were recategorized without the consent of Indigenous peoples (Imbong 
2020). Various Native American communities, such as the Hopi tribe (Curran 
2023) and Karuk and Yurok peoples (Marks-Block and Tripp 2021) have 
been subject to land dispossession due to increasing climate change hazards 
and centralized state regulations undermining Indigenous disaster 
governance processes (Marks-Block and Tripp 2021). Woodard and 



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O’Connor (2019) call this an act of colonization, which is “motivated by an 
imperialist desire to acquire land and greater resources” (92). The 
fundamental consequence of this process is the alienation of Indigenous 
peoples from their land (Woodard and O’Connor 2019). 

Disaster capitalism causes Indigenous peoples to experience not only physical 
and economic losses but also social and cultural losses, as land is not merely 
an economic asset for Indigenous farmers. They have a special social and 
cultural relationship with their land—their Indigenous self is “fused” with 
their land (Durie 2005, 137), which helps them survive and gives them hope 
(Taiban, Lin, and Ko 2020). For example, Indigenous Newar peoples in 
Nepal lean on their culture and festivals for disaster recovery. These festivals 
are deeply connected to Indigenous lands (Bajracharya et al. 2022). Similarly, 
Kutia Kondhs—an Indigenous community in Odisha, India—celebrate the 
Burland Yatra festival during the post-harvest season in February and March 
to please the gods of nature in times of climate crisis. The community 
believes that the agricultural landscape is not simply meant for producing 
food and supporting livelihoods—it is also central to their belief systems, 
traditions, and culture (Saxena 2020). Indigenous festivals allow for an 
understanding of long-standing human–environment interactions, as 
Indigenous peoples think of human beings and the environment as an 
interlinked system. Therefore, disaster capitalism has social and cultural 
impacts on Indigenous peoples.  

Though disaster capitalism refers to political and economic processes that 
take advantage of mass trauma to impose neoliberal capitalist economic 
policies, exacerbating socioeconomic divisions, the concept fails to account 
for the influence of pre-disaster vulnerability and the history of Indigenous 
disaster survivors. When examining the relationship of disaster capitalism 
with Indigenous people, the analysis would be incomplete if only the impact 
of neo-liberalization after disaster was considered. As explained by Rivera 
(2020), Indigenous studies recognize that the main reason for the poor 
coverage of Indigenous peoples in disaster response processes is their 
structural erasure through “procedural vulnerability” (Veland et al. 2013; Hsu, 
Howitt, and Fiona 2015) and “deep colonising” (Rose 1996). Procedural 
vulnerability “arises from people’s (and peoples’) relationships to power 
rather than environment and how power is exercised” (Hsu et al. 2015, 309). 
For example, the researchers who flooded the archipelago following 
hurricane Maria lacked an in-depth understanding of Puerto Rico’s colonial 
history and status and thus concluded that Puerto Rico’s current post-disaster 
issues were related only to neoliberalism and the resulting national debt, 
without understanding why extreme neoliberalism exists in the country at all. 
However, when we tie hurricane Maria to centuries of hurricanes and disaster 



[111] Bajracharya  

 

colonialism, it becomes evident that the type of governmental nonresponse 
Puerto Rico is currently experiencing mirrors what happened following many 
previous hurricanes, even before US neoliberalism. Instead, nonresponse is 
often tied to continuing efforts to colonize the archipelago (Rivera 2020). 
Therefore, it is critical to recentre the focus on colonialism, disallowing race-
blind and ahistorical views of disaster. However, this aspect of disasters 
continues to be understudied with regards to the Indigenous peoples of the 
Global South. To fill this gap, this paper examines the incidence of disaster 
capitalism and its impact on marginalized Indigenous peoples in Nepal. 

3. RESEARCH METHODS: INDIGENOUS POLITICAL 
ECOLOGY AS AN ANALYTICAL FRAMEWORK 

An Indigenous political ecological approach is used as the analytical 
framework for this research. This approach is centred on unequal power 
relations, which enables us to critically analyse how disasters affect everyone, 
but not everyone is affected equally, as people’s capacities to respond to 
disasters vary. Indigenous people’s experiences and struggles with disasters 
are different; their knowledge, institutions, and practices to cope with and 
recover from disasters are different from those of non-Indigenous peoples. 
However, many state policies and formal institutions are developed paying 
little or no consideration to the struggles of Indigenous peoples on the 
ground. After all, Indigenous cultures have been alive for a long time, and 
their presence compels us to learn from them and to imagine a more resilient 
society. The issue of marginalization is pervasive, and so are the calls for 
engaging with Indigenous peoples, amidst the highly unequal power relations 
between Indigenous and non-Indigenous peoples, wherein political and 
economic structures at multiple scales largely support the cause and interests 
of non-Indigenous peoples. This very inequality and systematic 
marginalization make the political ecological approach a compelling mode of 
thinking for this analysis. The political ecological approach offers insights for 
integrating both, people and the environmental aspects of a disaster, in an 
enquiry into ecology and political economy (Blaikie and Brookfield 1987). As 
Carney (1993) asserts, it is a research framework (Carney 1993) and “more a 
method of analysis than a theory” (Peluso 1992, 51). Thus, a political 
ecological approach appropriate to the research objectives was chosen.  

This research adopts an engaged research paradigm because Indigenous 
peoples are not just passive participants but also active co-contributors. This 
approach enables us to design a research process with multiple methods and 
analyses geared towards understanding Indigenous peoples. The research and 
data collection were designed and undertaken through a collective effort, 
involving the researcher, two local Newar research assistants, and several 
Newar women and men from the case study sites. The author of this paper 



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is a Newar woman who experienced the Nepal earthquakes first-hand, has an 
active and sustained relationship with the Indigenous peoples in Khokana, 
and has developed research ideas with Newar farmers in the study area. The 
research focuses on Newari peoples due to the cultural specificities of the 
community and the knowledge of Newar women and men whose experiences 
have been systemically ignored. To ensure that the Indigenous peoples were 
involved from the start of this research, research problems were identified 
with their help, methods were devised with their inputs, and their 
perspectives were placed at the centre of this research. In this sense, this is 
engaged research with Indigenous peoples.  

The Newar community is one of the 59 officially recognized Indigenous 
communities of Nepal. Within Newar communities, Guthi2 is a social 
organization that has existed for thousands of years and shapes and supports 
individuals and families within Newar communities. Guthi is integral to every 
Newar, as it maintains and preserves their social and cultural life. Guthi and 
its members are affected by, and respond to, earthquakes in Nepal in different 
ways, and this research aims to unpack their experiences. A Newar Guthi, 
known as Rudrayani Guthi, in Khokana, was studied in this research. This 
Guthi was selected because: a) they are renowned for their rich culture, 
knowledge, and economic practices and are primarily responsible for 
organizing an important festival, Sikali Jatra, and other jatras in Khokana; b) 
the Guthi belongs to Indigenous farmers, and they have a special relationship 
with their land; c) the Guthi peoples were highly affected by the Nepal 
earthquakes in 2015 and are still struggling to recover; and d) the Guthi 
peoples are negatively affected by state-sponsored development projects in 
Khokana, making their disaster recovery more difficult. 

I started my fieldwork in November 2020 by engaging two Newar research 
assistants from the case study site. The data collection process continued 
during the COVID-19 pandemic, during which a blended approach was 
adopted. The research assistants conducted face-to-face interviews with the 
participants, and the author was present as much as possible during data 
collection through digital platforms. Community workshops were conducted 
with the Guthi leaders at the case study site to discuss the data collection 
process. A data collection plan was then developed with the guidance of 
Guthi leaders. The household interviewing process started in January 2021. 
Twenty-eight household interviews were conducted with the female heads of 
Rudrayani Guthi, during which they shared their disaster experiences and 

 
2 Guthi is a vibrant institution that has persisted and changed over time. It is engrained 
within the culture, identity, and heritage of millions of Newar peoples in Nepal. 

 



[113] Bajracharya  

 

recovery process. They also shared their perspective on how their livelihood 
and culture are at risk of collapsing due to the ongoing development projects 
in Khokana. Thirty-four key informant interviews were conducted with 
respondents within and outside the Guthi. The respondents included male 
Guthi members,3 government officials, and Indigenous activists. Public 
policies and strategies were discussed with government and non-government 
officials, whereas issues related to Indigenous people in Nepal were discussed 
with Indigenous activists. Similarly, focus group discussions were conducted 
with a women’s group called Karyabinayak Pau Samuha. Verbal consent was 
taken from each participant before starting the interviews.  

4. CASE STUDY ANALYSIS: LOCAL DISASTER CAPITALISM 
IN RUDRAYANI GUTHI, KHOKANA 

Khokana, a traditional Indigenous Newari village situated about 10 km south 
of the city of Kathmandu, was severely impacted by the Nepal earthquakes. 
Around 90% of the houses were damaged (Gautam 2017). Even today, eight 
years since 2015, the Indigenous peoples of Khokana are struggling to 
recover from the earthquakes. This community is in crisis as the Nepal 
government has launched large development projects in the region—
including the Kathmandu–Terai Expressway (commonly known as Fast 
Track), Outer Ring Road, Bagmati Corridor, Satellite City, and a high-tension 
power line—all in the name of faster recovery from disasters and to enhance 
the economic development of the country. The Fast Track is particularly 
contentious among Indigenous Newars in Khokana, as some 6 km of the 
Fast Track will slice through their farmlands (CEmSoJ 2020). These projects 
were initially proposed in 2008. However, the process was speeded up after 
the earthquakes as part of the disaster recovery and economic development 
scheme, when the government issued a land valuation price in March 2016. 
The price allotted by the government was only about 10% of the actual 
market price of the land. As Indigenous farmers desperately needed money 
to reconstruct their houses, which had been damaged by the earthquakes, 
they were compelled to sell their land at low prices. The government, 

 
Guthi is a male-oriented Newar institution. There are 46 households in Rudrayani Guthi. Only 
one male from each household can participate in the Guthi. Therefore, the number of 
households is equal to the number of members. One of the main reasons for conducting 
household interviews with female household heads was to get the perspectives of Indigenous 
women on the issue of disaster capitalism in Khokana. Their perspectives are valuable 
primarily for two reasons: a) Indigenous women in Khokana consider themselves farmers, 
having a close cultural, social, and psychological relationship with their land; and b) Newar 
Guthi is a male-oriented institution in which men’s knowledge and voices are considered 
important. Women play a subordinate role to male members (who are mostly their fathers or 
husbands or brothers). Hence, it is very rare that their voices are considered. Therefore, I 
selected the eldest female members of the households in Rudrayani Guthi. 



 Ecology, Economy and Society–the INSEE Journal [114] 

 

 

construction companies, and land traders grabbed the opportunity to “buy” 
the Indigenous people’s lands.  

Figure 1: Map of Nepal Showing the Case Study Site Rudrayani Guthi in Khokana, 
Lalitpur 

 

Source: Author (2023) 

The loss of land for the Indigenous peoples of Khokana is not just about the 
loss of economic assets. They have deep-seated historical, social, and cultural 
relationships with their land—they believe that their Indigenous self is 
“fused” with their land (Durie 2005, 137). These development projects have 
negatively affected the livelihood and culture of Khokana. Moreover, the 
lands allocated for these development projects are the most fertile in 
Khokana. The Indigenous peoples in Khokana continue to practise 
agriculture as their primary occupation. However, as their land is gone, 
agriculture as a source of livelihood has now collapsed. Further, the 
significance of land has reduced over time to just an economic asset due to 
the complex land tenure system4 designed by a Hindu ruler in the late 
nineteenth and early twentieth century. This land tenure system encouraged 
Nepali elites to buy the land, who then allowed Indigenous farmers to work 
on it for a rental income. Later, the commoditization of land increased, since 

 
4 Before 1950, the land tenure system in Nepal was informal but complex. Various types of 
land tenure existed, such as Raikar, Birta, Jagir, Rakam, Guthi, and Kipat. Under Raikar, an 
individual owned a taxable parcel of land and could legally sell the land. Under Birta, Jagir, and 
Rakam, the state used to grant land to individuals for their bravery, loyalty, services, or as 
salary. In addition, customary land tenure systems, such as Guthi and Kipat, were managed by 
the Indigenous Newar and Limbhu communities, respectively (Nepal and Marasini 2018). The 
Nepalese democratic revolution of 1951 brought about a massive political-economic 
transformation. Many institutional structures established by the feudal Rana Regime were 
removed, and new structures were established in the 1960s, such as the promulgation of the 
Land Reform Act 1964, under which land tenures such as Birta, Jagir, Rakam, and Kipat were 
abolished.  



[115] Bajracharya  

 

landowners remained predominantly absentee landlords interested only in 
ownership and revenue generation and not what the land could produce 
(Adhikari 2011). 

Figure 2: Timeline of occurrence of local disater capitalisn in Rudrayani Guthi, 
Khokana 

 

Source: Author (2023) 

Apart from disrupting Indigenous peoples’ livelihoods, these development 
projects also have the potential to affect their culture. The Indigenous land 
informs their “identity, customs, language, lore, and rituals” (Durie 2005, 
137). Various festivals celebrated in Khokana are attached to land. One of 
the festivals is Sikali Jatra,5 which is celebrated by Newar farmers annually in 
September/October. Initially, the Fast Track project was proposed where the 
Sikali Jatra is performed. After several protests, the route was changed. 
However, people in Khokana are sceptical and do not trust the government. 
They believe that if the project continues, it can take over the Sikali Jatra 
route in the future.  

 
5 Jatra refers to street festivals or carnivals that Newar communities celebrate, mainly in 
Kathmandu Valley, where chariots are pulled through the streets of Kathmandu, celebrating 
Newar gods and Newar culture. Newar Jatras are lively and have high energy, as they 
incorporate music, dance, and Newari cuisines. During Jatras, different Newar groups from 
different castes come together, make necessary arrangements, and celebrate. Jatras are one of 
the primary reasons for strong social cohesion in Newar communities. 

 



 Ecology, Economy and Society–the INSEE Journal [116] 

 

 

Figure 2 shows how and why Indigenous communities were forced to sell 
their land at a below-market price rate and how wealthy people benefitted 
from the government’s devaluation of the land in the name of disaster 
recovery and economic development.  

4.1 Misplaced Recovery Practice: Physical versus Social Recovery  

We interviewed 28 participants from Rudrayani Guthi, Khokana. The 
participants were the female heads of households. During our interview 
sessions, the primary question asked was “How did you experience the Nepal 
earthquakes in 2015?” Most of them started their answers by describing the 
physical damage. The houses of most of the participants had been damaged. 
Many participants had also sustained physical injuries during the earthquakes.  

The interviews started with a description of physical impacts, but well into 
the conversation, participants shared how they were impacted 
psychologically and emotionally. Indigenous peoples are concerned about the 
government’s focus on reconstructing buildings, regarding which they have 
deep-seated fears—the recovery efforts ignore social and psychological 
damage. The focus on physical reconstruction has allowed contractors and 
businesses to enter the region while doing little actual work but making a lot 
of money.  

Many women shared how they had feared for their families, especially their 
children, as most of the participants were mothers and grandmothers. In 
every story they shared, there was a mention of their children or 
grandchildren and how scared they were for them. A participant shared the 
long-term psychological effects the earthquakes had on her and how scared 
she was for her children. She said:  

At the time of the earthquake, my second baby was three months old. Just a 
few minutes before the earthquake, I had sent my elder daughter to my 
mother’s house. When the earthquake happened, the only thing I could think 
of was the safety of my daughter. Stressed, I held my three-month-old baby 
and ran towards my mother’s house. On the way, people from my 
neighbourhood tried to stop me and said they will go and get information 
about my daughter. Later, I was informed that my daughter was safe. This 
incident caused me a lot of trauma for a long period. I had anxiety for over a 
year after the earthquake. (Female participant in Rudrayani Guthi, 2021) 

Despite the long-term psychological impact of the earthquake on the 
Indigenous women in Rudrayani Guthi, participants stated that the 
government and external organizations favoured the local elites—who are 
wealthy people—and primarily focused on the reconstruction of buildings, 
roads, and infrastructure. Immediately after the earthquake, by enforcing the 



[117] Bajracharya  

 

Essential Services Operation Act, 1957, under the Central Natural Disaster 
Relief Committee (CRC), essential goods and services, such as food, hygiene, 
clothes, and tents/tarpaulins, were distributed in the affected regions. The 
Government of Nepal (GoN) announced that it would support the 
rebuilding of damaged houses, public infrastructure, and heritage buildings. 
The state’s Post-Disaster Needs Assessment estimated a need of US$ 9.38 
billion for the five-year reconstruction and rehabilitation plan (NPC 2015). 
GoN, through the Nepal Reconstruction Authority (NRA), began planning 
an owner-driven approach to the reconstruction. The programme distributed 
NPR 300,0006 in three tranches for the completion of compliant 
construction: NPR 50,000 upon signing the agreement with GoN, a further 
NPR 150,000 upon completing the foundation, and a final NPR 100,000 after 
finishing the walls (HRRP 2018). An “earthquake victim’s family identity 
card” was issued to listed victims, with listed the damages caused and was 
used as the basis to provide state resources.  

Almost all the participants’ houses were damaged. However, the results show 
that many participants (17 out of 28 participants) did not receive the 
earthquake victim’s family identity card and subsequently the reconstruction 
grant. The participants expressed their concern that the local government was 
partial and discriminatory in its distribution of government relief and 
reconstruction funds. Many participants complained that some local elites, 
who had more than one house, received funds due to strong political 
connections. These participants felt that the process was unfair. A participant 
expressed: 

The whole relief and reconstruction process from the government and other 
non-government organizations is not fair. The ones who are wealthy and 
have connections got as much help as possible whereas those who are poor 
and are shy did not even get a single penny. In my opinion, the whole process 
was unjust. (Female participant in Khokana, 2021) 

The discrimination persisted within the Guthi as well. For example, one 
woman emotionally expressed how the Guthi members discriminated against 
her and her family due to her financially weak situation. Even though all the 
members in Rudrayani Guthi belong to farming communities, some 
members own vast lands while others do not. This unequal financial 
condition has created a power imbalance within Rudrayani Guthi. The 
participant shared that she is still living in a cracked house and has not 
received help from the government or any other organization. She 
emotionally explained: 

 
6 The currency rate was US$ 1 = NRs 118.82 on June 28, 2021. 



 Ecology, Economy and Society–the INSEE Journal [118] 

 

 

Poor people do not get help within or outside the community. No one cares 
about poor people. Here in Khokana, people gathered and went to get help 
during the earthquake. But no one invited or asked me to join them. Though 
we are Guthi members, none of the other Guthi members showed any 
concern or asked how we are managing or surviving. We are poor and we do 
not have land like them. Therefore, we are discriminated against by other 
Guthi members. The discrimination by our people is very hurtful. (Female 
participant in Khokana, 2021) 

This physical and project-oriented recovery practice has neglected 
Indigenous culture, tradition, and festivals, which play an important role in 
the psychological recovery of Indigenous Newars in Rudrayani Guthi. This 
argument was also supported by local government officials7 in Khokana. In 
this context, one of the male Newar government officials from Rudrayani 
Guthi shared: 

If we look at the government sector, we hardly see any people with a “flat 
nose”8 (Indigenous peoples). Moreover, they are very difficult to find in 
higher posts. If Indigenous people are not in policy decision-making 
positions, do you think the policies will consider them? To make policy, the 
policymaker or decision-maker should have experience. If Indigenous 
persons are present in policymaking processes, then Indigenous experiences, 
struggles, and knowledge are shared and considered. But as Indigenous 
peoples rarely occupy such positions, Indigenous issues are not conveyed and 
not included in policy development. Those in policymaking positions (non-
Indigenous peoples) do not have any experience of Indigenous issues; 
therefore, they are not considered. Until Indigenous participation increases 
in policymaking processes, policies and practices will barely consider 
Indigenous issues. 

Further, a female Newar government official shared that Indigenous peoples, 
particularly Indigenous women, are seldom involved in policymaking 
process; hence, their experiences, needs, and aspirations are ignored. 

Immediately after the earthquake, participants in Rudrayani Guthi celebrated 
a unique festival known as Saya Puja. During this festival, an event—known 

 
7 The local government officials in Khokana belong to the Newar community. During the 
interview process, they shared their disappointment with the state’s disaster recovery process 
as it neglected Indigenous values, culture, and ways of recovering. 

8 Most Brahmins and Chettris have pointed noses, which are considered one of their special 
features in Nepal. On the contrary, most of the Indigenous communities, such as Newars, 
Gurungs, Lamas, and Tamangs, have flat noses and are mocked for that.  



[119] Bajracharya  

 

as Chyama9 Puja—is organized, in which prayers are offered asking for 
forgiveness for any human misbehaviour towards the environment.  

Figure 3: Sikali Jatra in Khokana, organized by Rudrayani Guthi  

 

 

Source: The Kathmandu Post (2018) 

The festivals and culture of Rudrayani Guthi are deeply connected with the 
land and agricultural practices. In the case study site, there is a culture of 
celebrating Sikali Jatra, which is performed by the Rudrayani Guthi members 
in September/October every year.  

The main purpose of celebrating Sikali Jatra is to protect Khona desh 
(Khokana) from catastrophes, disasters, and calamities. Also, this Jatra is very 

 
9 Chyama means apology in Nepali Bhasa. In the Newar community, it is believed that disasters 
or any catastrophe occurs when God is angry with humans. During a Chyama Puja, people 
pray to God and ask for forgiveness for any misbehaviour by human beings.  



 Ecology, Economy and Society–the INSEE Journal [120] 

 

 

important to us farmers, as we celebrate the post-harvest season with our 
families and relatives. (Local male resident, key informant in Rudrayani 
Guthi, 2021). 

However, many participants were compelled to sell their land at very low 
prices to contractors, as they did not get sufficient or timely financial aid from 
the state: 

After the earthquake, we sold our land at a very low price to reconstruct our 
damaged houses. Our land is significant as our livelihood and culture are 
attached to it. But we had to give it up. Looking at the current situation, if a 
big earthquake occurs again, I think we will not recover from the loss. We 
will be out on the streets, as we will not have our house to live in or food to 
eat, and there will be no land to save us. (Female participants from Rudrayani 
Guthi, 2021)  

The findings show that Indigenous people in Khokana did not receive 
sufficient and timely financial aid to build their houses, and their fear and 
anxiety were not recognized. The project-oriented approach of the 
government favoured businesses and contractors, compelling villagers to sell 
their land below the market price. Some local businessmen and external 
contractors seized the opportunity to grab land, delinking the historical 
relationship between the people and land. These project-oriented, market-
driven, and state-supported recovery practices provide short-term economic 
aid but cause long-term damage for the community.  

4.2 Rationalizing Development Projects as a Part of Disaster 
Recovery 

The findings show that under the guise of disaster recovery, Indigenous 
peoples have been forced into another crisis as the GoN is moving ahead 
with the construction of multiple development projects in the region, such 
as the Fast Track, Outer Ring Road, Bagmati Corridor, Satellite City, and a 
high-tension power line.  

The participants of Rudrayani Guthi strongly believe that the government is 
using this crisis as a window of opportunity to take over Indigenous land at 
a low price. The lands of many participants have also been included as part 
of the allocated area for development projects—some have already sold for 
a very low amount. One of the female participants shared that she was 
compelled to sell her land as she desperately needed money. She emotionally 
shared the following: 

I have sold my land to the government for very less value. I did not get any 
compensation from the government after the earthquake. My house was 
completely damaged. I stayed in that damaged house for three years. But I 



[121] Bajracharya  

 

could not further risk our lives. So, I sold my land and reconstructed my 
house. What to do? I had no other option. (Female participant in Rudrayani 
Guthi, 2021) 

Further, land mafias associated with political parties have been scaring 
residents. Respondents shared that they have been warned to “Sell off your 
land now, or you won’t get any money later”. People are afraid that their land 
will be taken by the government in the future and they will not be given 
compensation. As a result, about 40% of the land10 has already been “given” 
to the government. Moreover, some influential people, who are not from 
Khokana, have bought hectares of land in the surrounding areas for 
residential and commercial development. However, these lands have not 
been allotted for development projects. Only the lands of Indigenous farmers 
have been allotted for developmental projects. This has convinced 
Indigenous farmers in Rudrayani Guthi that the government is exploiting 
them as they do not have political power. Further, land ownership by non-
Indigenous elites poses a threat to the Indigenous Newar culture and 
festivals, which are mostly associated with the land of Rudrayani Guthi.  

These development projects will impact the livelihood and culture of 
Khokana negatively. The lands allocated for development projects are the 
most fertile in the region. When the government takes these lands, 
Indigenous peoples will suffer unemployment and food insecurity. These 
development projects have the potential to damage the local culture. For 
example, the Fast Track project was initially proposed where the Sikali Jatra 
is usually performed. Therefore, people protested the government’s decision. 
One respondent said: 

The Fast Track project should not have been brought here. We have been 
protesting this project for many years, but the government does not care. 
Implementing this project will completely erase our culture. Khokana is a 
traditional village with a distinct culture and tradition, all associated with the 
land. I am not against the development project, but why Khokana? This 
project could have been implemented through another route, but we cannot 
shift our village to another place. (Female participant in Rudrayani Guthi, 
2021). 

 

 

 

 
10 This information is based on the conversation with the residents in Rudrayani Guthi, 
Khokana, during my visit in June 2022. 



 Ecology, Economy and Society–the INSEE Journal [122] 

 

 

Figure 4: Land Allotted for Development Projects in Khokana 

 

 

 Source: Author, 2022 

After several protests, the route was slightly changed. However, the 
participants are sceptical and do not trust the government. The Indigenous 
people fear that the government will take their land with almost no 
consultation and with minimal compensation at a time when the security of 
their lives and livelihoods are at stake. Under the pretext of as being of 
national interest, these projects were spearheaded by the Nepal government 
in order to secure loans from international organizations such as the World 
Bank. Most respondents opined that corruption and commission collection 
are at the heart of these projects. For international donors, the development 
of big infrastructure and the creation of jobs are often seen as a disaster 
recovery initiative that “helps” the Nepal government—and, consequently, 
the Nepali people—even though most of this so-called “help” is offered at a 
high interest rate. The interests of the government and international agencies 
are overarching in such projects, while Indigenous communities are forced 
to become alienated from their land to make way for the interests of these 
external organizations.  



[123] Bajracharya  

 

4.3  Resisting Government-initiated Initiatives  

Land is not just an economic resource for Indigenous people in Khokana. 
They have a “social, cultural, and physical relationship with land,” as stated 
by Dr Om Gurung, an Indigenous scholar and activist, during a key 
informant interview. The state’s plans to use fertile land for the construction 
of an express highway and other development projects are giving rise to local 
movements in Khokana.  

The female participants in Rudrayani Guthi consider themselves farmers; 20 
out of 28 participants identified themselves as farmers. These Newar women 
have a special social and cultural relationship with their land. This relationship 
is deep, as the cultural and social activities of Rudrayani Guthi are associated 
with land and agricultural practices. Therefore, not only Newar men, but also 
Newar women in Rudrayani Guthi, are at the forefront of movements 
resisting development projects.  

Figure 5: Farmers Protest Development Projects in Khokana on National Paddy 
Day on June 29, 2020  

  

 

Source: The Kathmadu Post (2020) 

One participant shared her frustration with the Fast Track project in 
Khokana,  



 Ecology, Economy and Society–the INSEE Journal [124] 

 

 

Since our childhood, we have been working on our farmland. Farming is the 
only skill we have. But look at what’s happening here. The Fast Track project 
is taking away our land. We are in crisis as the earthquake took away our 
houses and now Fast Track is taking our land. (Female participants in 
Rudrayani Guthi, 2021) 

Another participant shared about the resistance:  

Newars have always been shy and have the habit of tolerating ill treatment 
from the state. However, once the tolerance level is exceeded, we come 
forward and fight for our rights. Now, the tolerance level has been exceeded, 
as they have attacked our culture, heritage, and knowledge. We won’t keep 
quiet now. We will raise our voices, and I think it will be a problem for the 
state. (Female participant in Rudrayani Guthi, 2021) 

There have been situations where clashes have erupted between the residents 
of Khokana and the police. A local male Indigenous activist from Rudrayani 
Guthi shared an incident that happened on National Paddy Plantation Day 
on June 29, 2020, when Newar farmers were out in their fields with their 
tools to plant paddy as a sign of protest, but the police intervened and forced 
them out of the land (Dhungana 2020).  

Among the many women groups in Khokana, Karyabinayak Pau Samuha was 
formed after the earthquakes.11 This self-initiated women’s group produces 
candies from a local fruit called lapsi. The group was formed to earn money 
to rebuild their damaged houses by selling candy. However, the group has 
now become an activist group opposing development projects. The members 
work to create awareness, especially among women in Khokana, about the 
negative social, economic, and cultural impacts of development projects. 

During the focus group discussion with group members, one of them shared: 

 
11 Karyabinayak Paun Samuha is a group of Newar women who are engaged in producing local 

fruit candy as abusiness. The business was started after the earthquakes in 2015, under an 

NGO, Soko Dev’s initiative. The members shared the financial and psychological difficulties 

they had experienced after the earthquake. They shared that the group was started to help their 

families rebuild their houses. During the conversation, they proudly shared how they had 

earned their first incomes. They said that now they do not have to rely on their husbands for 

petty cash. One of the women shared her joy on buying a gift for her mother on Mother’s Day 

with her own money. They shared how the group has helped them forget the trauma of the 

earthquakes, as they would meet every day and share their sadness, pain, and difficulties. This 

innovative business is not only helping them recover from the earthquakes financially, but it 

is also helping them recover psychologically and is empowering them.  

 



[125] Bajracharya  

 

We are trying to convince women in Khokana not to sell their land to the 
government. We are also actively participating in the local movement against 
the government. Recently, they tried to construct a wall for the Fast Track. 
But we held a protest where we laid down on the construction site. We risked 
our lives to stop the construction process. In the end, they stopped the 
process and, till today, have not restarted the construction. We are very proud 
that we could contribute to the Indigenous movement in Khokana. (Female 
member of Karyabinayak Pau Samuha, June 2022) 

Figure 6: Local Movement by the Indigenous Women from Karyabinayak Pau 
Samuha Against Development Projects 

 

 

Source: Pictures shared by a participant from Karyabinayak Pau Samaj in 2022 

During the time of crisis following the earthquakes, the Nepal government 
has enabled international agencies, businesses, and wealthy individuals to 
seize Indigenous farmers’ lands in Khokana in the name of development and 
disaster recovery, but the Indigenous farmers are fighting for their land. 

5. ANALYSIS: UNPACKING LOCAL DISASTER CAPITALISM  

Klein (2007) argues in The Shock Doctrine that disaster capitalism emerges and 
is sustained when wealthy elites exploit crises, such as major natural disasters, 
to reap profits and deepen inequality, while affected populations are still in 



 Ecology, Economy and Society–the INSEE Journal [126] 

 

 

shock. In the case of the Indigenous farmers of Rudrayani Guthi in Khokana, 
Indigenous peoples suffered a range of impacts due to the earthquakes, from 
the physical destruction of their houses to fear, anxiety, and uncertainties, 
leading to heightened social and psychological impacts. They had limited or 
no access to government financial aid for physical and social reconstruction. 
Further, they experienced the negative social and cultural impacts of untimely 
and misplaced state-sponsored development projects, while they were still 
struggling to recover from the 2015 earthquakes. International donors and 
Nepal’s bureaucracy supported the market-driven and project-oriented 
approach to disaster recovery, with little recognition of the Indigenous 
culture and their connection to land. There was something for everyone—
broader public good for the government; interest and leverage for donors; 
profit and money for businesses; and for Indigenous communities, some 
money for their lands sold at a price lower than the market rate. The central 
issue here is that in pursuing the so-called “opportunity”, wealthy people and 
organizations are making money at the expense of the long-term interests of 
Indigenous peoples. This is a classic case of disaster capitalism. Now, the 
question arises: Why are Indigenous peoples experiencing local disaster 
capitalism in Nepal? There are at least three reasons:  

a) misrecognition of Indigenous knowledge and knowledge hegemony, 
b) the powerlessness of Indigenous institutions to respond to external 

pressures, and 
c) power of tokenism. 

 
Local disaster capitalism has emerged and sustained due to a failure to 
recognize Indigenous knowledge, while the hegemony of western knowledge 
continues to shape what is considdered a “good development and disaster 
recovery” and how this should be done. According to McCarthy,  

knowledge is best conceived and studied as culture, and the various types of 
social knowledges communicate and signal social meanings – such as 
meanings about power and pleasure, beauty and death, goodness, and danger. 
As powerful cultural forms, knowledges also constitute meanings and create 
entirely new objects and social practices. (1996, 1) 

Knowledge is experiences and culture. This paper’s findings show that 
Indigenous peoples have been impacted psychologically as well as socially, in 
addition to suffering physical impacts. The coping and recovery process of 
Indigenous peoples is aligned with their Indigenous culture, norms, and 
practices. However, there is a widespread disengagement between Nepal’s 
disaster recovery and local realities because of the systemic neglect of 
Indigenous people’s experiences and culture in the state’s disaster recovery 
process. This disrespect for Indigenous knowledge is also seen in the 



[127] Bajracharya  

 

encroachment of Guthi lands in the name of development in Rudrayani 
Guthi. Indigenous land is not just an economic resource for Indigenous 
farmers in Rudrayani Guthi; it is also deeply related to their knowledge 
system, institutions, culture, festivals, and norms. Nevertheless, the 
government’s approach is informed by the neoliberal political economy, and 
western knowledge sees Indigenous land merely as a monetary value-
generating resource.  

The second key reason why disaster capitalism persists is the powerlessness 
of Indigenous institutions. The idea of powerlessness is linked to Marx’s 
theory of socialism, wherein some people have power while others do not 
(Young and Allen 2011). The “powerless” are dominated by the ruling class 
and take orders and rarely have the right to give them. As mentioned above, 
the coping and recovery process of Indigenous peoples is aligned with 
Indigenous institutions, culture, norms, and practices, which are deeply 
connected to their land. Indigenous institutions, such as Guthi, play a 
significant role in sustaining the Newar culture and festivals, thereby 
preserving their land. However, the neoliberal political economy and market 
institutions have a limited capacity to engage with and make sense of 
Indigenous institutions. Instead, dominant market institutions enable profit-
making—at the expense of the many not-for-profit initiatives of Indigenous 
peoples—and land-grabbing. Neoliberal market institutions often portray 
Indigenous institutions, knowledge, and cultures as primitive and 
subsistence-oriented, not fit for purpose in the “modern” world. These 
institutions experience oppression, discrimination, and exclusion. This makes 
Indigenous institutions powerless in the face of big businesses, globalization, 
and western governments. Indigenous peoples are rendered voiceless and 
powerless in their own lands. 

The powerlessness of Indigenous institutions also has a historical root. Nepal 
was ruled by Hindu monarchs for 240 years. The Kingdom of Nepal has 
claimed that Nepal is the only “Hindu kingdom” globally, ignoring the 
existence of Indigenous peoples and their institutions and culture. Hindu 
monarchs and other rulers promulgated this belief for 240 years through the 
codification of Hindu laws and the imposition of the Nepali language and 
Nepali Hindu culture (Gurung 2019; Bhattachan 2021). Sen (2015) argues 
that as the monarchs and other rulers were affiliated with Hinduism, they 
institutionalized the hill variant of Hinduism and imposed a Hindu caste 
system, thus structuring Nepali society into a hierarchyof superior/inferior 
and pure/impure. Today, caste-based discrimination is outlawed, but it is still 
deeply embedded in Nepal, heavily dictating the social behaviour of Nepali 
people (Jones and Boyd 2011). Despite a federal government being formed 
in 2018, the delineation of power at the local level is still in a transition phase. 



 Ecology, Economy and Society–the INSEE Journal [128] 

 

 

Nepal is still controlled by a handful of powerful elites belonging to the 
Bahun and Chettri communities, who do not fully appreciate the new 
constitution’s spirit. There is still no clarity regarding the power exercised by 
the three levels of the government, thereby affecting the implementation of 
development policies, plans, and programmes at the local level. Nepali society 
is still structured according to the Hindu caste system, which allows certain 
groups to impose ritualistic claims of being more superior or pure compared 
to others. This ritual power is not only justified by the Hindu caste system, 
but the dominant low caste groups have also internalized their powerless 
position in society, resulting in the continuous exclusion of Indigenous 
peoples, women, and Dalits from national social, cultural, economic, and 
political life (Gurung 2019). 

The third reason for disaster capitalism is tokenistic Indigenous participation. 
We undoubtedly live in the era of the so-called “participation revolution” 
(Ganuza, Baiocchi, and Summers 2016, 328). Participation—giving a voice 
to citizens in public affairs—has become the theme of countless international 
conferences, government projects, and policy reforms. Indigenous 
participation is at the centre of much recent contemporary political thinking 
(Belfer et al. 2019). Further, in 2007, the United Nations adopted the 
Declaration of the Rights of Indigenous Peoples. The declaration recognizes 
Indigenous peoples and their right to participate in the state’s political life 
(Xanthaki and O’Sullivan 2009). However, research has questioned the 
implementation of these international agreements. Pirsoul (2019) argues that 
the rights discussed in these international agreements offer very few tangible 
benefits to Indigenous people and are usually reduced to bureaucratic 
requirements that defeat the purpose and intent of the right to consultation. 
For example, the legal requirement for prior consultation is reduced to a brief 
meeting with a few Indigenous leaders. These consultations are usually not 
focused on an exchange of ideas between equals, where Indigenous 
communities provide equal input as governmental authorities or investors in 
the decision-making process. They are, instead, reduced to an administrative 
bureaucratic requirement to convince Indigenous people to accept decisions 
that have already been taken (Sierra-Camargo 2017). 

6. COUNTERING LOCAL DISASTER CAPITALISM: 
“INVENTING SPACES” 

The imposition of development projects has not stopped Indigenous peoples 
from resisting and contesting such processes. Indigenous peoples are actively 
raising their voices against these developing projects. Not just men, but 
women from Rudrayani Guthi are also actively participating in protesting 
development projects. These Indigenous women identify as “farmers” who 
have a special social, cultural, and psychological relationship with the land. 



[129] Bajracharya  

 

Hence, they are at the forefront of the resistance against the state-imposed 
development projects. This shows that they are not just passive victims of 
disaster capitalism. These local Indigenous movements invent spaces where 
“on the one hand, the movement challenges official decision-making 
processes while demanding inclusion on their terms. On the other, they are 
constructing alternative spaces and forms of Indigenous collective power 
and, to some extent, with allied movements” (Powless 2012, 412). 

Indigenous knowledge, institutions, and participation are marginalized, 
leading to disaster capitalism. However, they are also creating “space” for 
their Indigenous knowledge, institutions, and participation through local 
Indigenous movements. “Political space” is not only something taken up, 
assumed, or filled, but something that can be created, opened, and reshaped 
(Gerard 2014) where “collective action is mobilised in a way that does not 
require the sanction of governmental authorities” (Jayasuriya and Rodan 
2007, 786). It is about moving out of a constrained and isolated space, 
widening the scope of action, multiplying potential sites for engagement, and 
Indigenous people growing organically, in a self-realizing way: in confidence, 
capacity, and well-being. As said by one of the Indigenous activists:  

the local Indigenous peoples have started to realize the importance of the 
Indigenous movement. It is important to be grounded in local Indigenous 
movements and voice our thoughts, where the existence and resistance 
should be shown by the natives themselves like the locals of Khokana.  

The local Indigenous movement in Khokana has created a window of 
opportunity, or a policy window (Dover 2005), to challenge the status quo 
(Miraftab 2004) and counter dominant discourses and existing power 
relations (Alund and Schierup 2018). This “invented space” moves apart 
from the relative “comfort” of the inviting space and enters a 
counterhegemonic battlefield (Wise 2018), thus challenging the existing 
nature of tokenistic participation. 

 Inventing space for participation is one of the solutions to the issue of 
tokenistic participation. But the question now is, “Who will invent space?” 
The paper’s findings show that there are people at the case study site who are 
actively and genuinely working to invent space for participation. These 
people may be men or women, but they believe the state must recognize their 
knowledge and innovation. Examples include Karyabinayak Pau Samuha, 
which has created space to express the concerns of Indigenous women. Such 
people can be called Indigenous champions “who are progressive individuals 
and groups having a real commitment, compassion, resources and networks 
for bringing about positive change in disaster recovery” (Shrestha et al. 2019, 
214). These champions often navigate through politics and the political 



 Ecology, Economy and Society–the INSEE Journal [130] 

 

 

economy, mediate powerful interests, and often push against power 
structures that are continuing to marginalize many. These Indigenous 
champions can play the role of connectors who have conviction (Shrestha et 
al. 2019, 214) and can foster long-term collaboration, coordination, and co-
production of knowledge (Satizábal et al. 2022, 11).  

7. CONCLUSION 

This paper demonstrates that disasters create a political and economic space 
for neoliberal projects to benefit the wealthy disproportionately while 
marginalizing Indigenous peoples. The discourse highlights: a) the 
occurrence of “disaster capitalism” worldwide, creating winners and losers, 
and b) that local communities, such as Indigenous peoples, are marginalized 
in the process. However, debates on disaster capitalism and Indigenous 
peoples emphasize that the concept of “disaster capitalism” does not 
adequately account for the influence of pre-disaster vulnerability and the 
history of Indigenous disaster survivors, thus presenting a race-blind and 
ahistorical view of disasters. Based on an in-depth analysis of local disaster 
capitalism in Rudrayani Guthi, Nepal, the paper’s findings demonstrate that 
Indigenous peoples were disproportionately impacted by the 2015 Nepal 
earthquakes physically, psychologically, and emotionally. However, the 
government-initiated recovery process is disconnected from Indigenous 
people’s disaster recovery process, with a misplaced focus on “physical 
reconstruction”. Indigenous people have difficulty accessing government 
support, but they have ways of coping and recovering from disasters. 
Indigenous knowledge, institutions, and cultures play a critical role in 
addressing the needs and aspirations Indigenous men and women. These 
Indigenous knowledge, institutions, and culture are deeply connected to 
Indigenous land. However, the government has been eyeing this Indigenous 
land for various development projects, uprooting Indigenous peoples from 
their ancestral land, depriving them of their means of livelihood, and 
destroying their rich culture and traditions. As demonstrated in the findings, 
there is a strong indication that local disaster capitalism is unfolding in 
Rudrayani Guthi. Therefore, it is critical to understand these instances from 
an Indigenous perspective. It is important to analyse the reasons for local 
disaster capitalism—a) disrespect of Indigenous knowledge, b) the 
powerlessness of Indigenous institutions, and c) tokenistic participation—
which can be challenged by inventing spaces for Indigenous voice by 
mobilizing Indigenous champions. 

Ethics Statement: I hereby confirm that this study complies with requirements of 
ethical approvals from the institutional ethics committee for the conduct of this 
research.  



[131] Bajracharya  

 

Data Availability statement: The data used to support this research cannot be 
shared openly to protect the privacy of study participants and is stated in the paper. 

Conflict of Interest Statement: No potential conflict of interest was reported by 
the author. 

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