Political situation Young democracy: a fledgling federal state

From 1996 to 2006, Maoist rebels fought against the monarchy and the Hindu caste system in Nepal. Around 15,000 people were killed in the conflict. A peace agreement ended the war; in 2008, the monarchy was abolished and Nepal was declared a republic.

Government building in Kathmandu

Government building in Kathmandu

Government building in Kathmandu

The following years were characterised by frequent changes of government. An important milestone was reached in 2015 with the adoption of a new constitution, which stipulates a federal state structure. The country’s administration is now based around seven provinces, 77 districts and 753 local units.

The population is hoping that the reformed state structure will bring political stability and economic growth that will benefit everyone. The duties and responsibilities of the federal and the regional and local governments have not been conclusively defined, however. Furthermore, the provinces, districts and local units do not yet have access to sufficient funding to provide basic services and invest in infrastructure.

In May 2022, local elections took place for the second time, and provincial and national elections followed in November. Pushpa Kamal Dahal was appointed the new Prime Minister at the end of December 2022. This is his third time in office, and he has the support of seven parties and three independent candidates.

2030 Agenda

Nepal has expressly committed itself to the global development goals of the 2030 Agenda. The government drew up a corresponding framework document at an early stage, and the country has twice taken part in Voluntary National Reviews (VNRs).

However, successful implementation has thus far been hindered by the lack of effective structures, reliable data and financial resources. According to the National Planning Commission, Nepal would need around two billion rupees (approximately 14 billion euros) a year to achieve the goals – amounting to almost half of the country’s current gross domestic product. Nepal has made gains in many areas, but in its current position it is only set to achieve three out of the 17 goals.

As at: 10/02/2023