I'm not informed enough about Nepalese politics to comment intelligently, but I'll just say this: if the end result of the strike is an improved waste management system, then it's probably good. Many people here drink bottled water because, as you can imagine, the ground water system is polluted, but there's no system for recycling those millions of plastic bottles, so they're everywhere. It's tragic that in the 21st century people still lack basic sanitation. I don't know the full story, but if the motivation of the garbage workers is truly a better system, then I hope it works out. What I see around here is tragic, but at least it's not permanent.
Here's the flipside of the coin: although the garbage workers may have good motivations and a better system may result, the danger caused by this garbage strike is very real. Nepal is currently experiencing an outbreak of cholera. Yes, the disease where people die of diarrhea. According to today's paper, the outbreak has killed nearly 200 people in the last few weeks. At least this disease is in midwestern Nepal rather than the more populated Kathmandu. If it were to spread here in the midst of the garbage strike, I fear it would be catastrophic. Melissa says that cholera is treatable--simply stay hydrated until the diarrhea has passed. To do that effectively, though, requires clean water.
The paper reports that the government is doing a lot in terms of distributing medicines, setting up health camps, etc. The PM points out that major roadblocks to combatting the disease include geographical hazards, few motorable roads, poor communication networks, undernutrition, and shortage of water, among other things, and these are not problems easily fixed. They are also devoting resources to combatting swine flu (though there have only been 5 swine flu cases in the country, I'm told).
The paper also reports that families that lose someone to cholera are getting monetary relief: 10,000 rupees per family, and 15,000 if the deceased was the family's breadwinner. A goodly sum to them, I hope. It's tough for me to put it in perspective. Melissa and I spent more rupees than that in our first 2 days here.

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