By P.R. Pradhan
Some foreign-funded media outlets have claimed that Nepal’s federal structure has not placed an unbearable burden on the government treasury. By presenting statistical graphs and comparisons, they have attempted to demonstrate that provincial governments spend less than the federal and local governments.
However, we believe that the current deterioration across various sectors is the consequence of the 12-point Delhi agreement and what we perceive as an Indo-Western design that has weakened Nepal’s economy. Furthermore, Nepal’s economic path was diverted after the 1990 People’s Movement, which, we believe, as it is being influenced by external forces.
Following the political changes of 1990, many state-owned industries were privatized under the banner of structural adjustment. The assets of these industries were undervalued, benefiting certain ministers, political leaders, and parties in power. If the government was unable to operate these industries efficiently, an alternative approach could have been public-private partnerships, where the government retained a stake while allowing private participation. Instead, the government adopted outright privatization through auction and leasing models.
After privatization, many of these industries eventually closed because private investors prioritized profitability. As a result, thousands of workers lost their jobs, and Nepal’s industrial foundation weakened.
Just last week, three youths reportedly attempted self-immolation due to financial hardships. More than ten million Nepali youths—through both formal and informal channels—have gone abroad in search of employment opportunities. The trend of young people leaving the country for higher education has also increased significantly. The emergence of the Rastriya Swatantra Party (RSP), which secured an overwhelming majority in the recent election, was largely driven by frustration among the younger generation. However, youths have once again taken to the streets, raising slogans against the newly formed government led by Balendra Shah (Balen).
Although the government has completed only 100 days in office, young people have already begun protesting. This reflects their demand for immediate results. However, the government faces significant challenges because many sectors have been deeply damaged by decades of mismanagement, corruption, and poor governance by traditional political forces since the political changes of 1990. Such problems intensified further after the April 2006 uprising.
Following the September 9 agreement reached after the deaths of 76 youths during the Gen-Z movement, we believe the representatives of the movement made a serious mistake by preserving the existing constitution and political structure. The government led by former Chief Justice Sushila Karki was unable to fully implement the aspirations of the Gen-Z movement due to the continuation of the same institutional framework. Similarly, the Balendra Shah-led government is attempting to deliver reforms within a limited timeframe, but outdated laws and the existing political structure have slowed its progress.
The government seeks to amend existing laws, but traditional political parties have created obstacles through the National Assembly, where the RSP has no representation. The RSP-led government has opened multiple fronts in its efforts to address corruption, malpractice, and poor governance. Meanwhile, those who fear investigations and accountability have united against the government. We also observe what appears to be institutional resistance, including challenges from the judiciary. Investigations into corruption cases have also been weakened, allegedly due to political influence from traditional parties.
These challenges, in our view, are the consequences of attempting to sustain a system that lacks public confidence and requires fundamental reform.
If the government chooses to continue operating within what we consider an already failed structure, we doubt whether it will be able to achieve its stated objectives.
Nepal urgently requires rapid economic development and the creation of large-scale employment opportunities for its youth. Under the present structure, which has been severely weakened by years of political instability and mismanagement, achieving such goals appears extremely difficult.
There are also concerns that external powers, including the United States and European countries, may seek to influence the newly emerged RSP. If such a situation arises, Nepal—already navigating strong influences from its immediate neighbour, India— and now China becoming cautious from the role of Nepal, could face additional geopolitical pressures that may affect its traditional values and national interests.
In conclusion, we believe Nepal may be approaching another phase of political movement aimed at restoring national values and addressing the aspirations of its people.
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