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Nepal Political Crisis and Lessons for South Asia

The Pokhara International Airport has become emblematic of systemic failure. A 2025 parliamentary investigation uncovered Rs14 billion (USD 105 million) in corruption and irregularities, including fake payments, unauthorized tax waivers for the Chinese contractor, and disbursements for incomplete infrastructure. Yet, senior officials remain largely untouchable—even ministers accused of human trafficking.

Golam Rasul Sep 14, 2025
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Nepal Political Crisis

Nepal, once hailed as a rising democracy in South Asia, now stands at a perilous crossroads. A youth-led uprising—dubbed the “Gen G” or “Gen Z” movement—has engulfed the country in its most intense political unrest in decades. Sparked by a sweeping government ban on major social media platforms and deepening public frustration over corruption and inequality, the protests have escalated rapidly. As of September 10, at least 25 people have been killed and over 200 injured, with violent clashes erupting across Kathmandu and other urban centers. Government buildings, including the Parliament and Supreme Court, have been set ablaze, and Tribhuvan International Airport was temporarily shut due to smoke and unrest. Prime Minister K.P. Sharma Oli resigned on September 9 amid mounting pressure, and the Nepal Army has since imposed a nationwide curfew to quell further violence.

The immediate trigger came on September 4, 2025, when the government abruptly banned 26 social media platforms, widely perceived as an assault on free expression. Nepal’s crisis is a warning to all of South Asia. When free speech is silenced and corruption and nepotism become routine, democracy loses its meaning. It stops delivering. People grow frustrated. Streets erupt. Institutions crumble.

Nepal’s Road to Democracy: Promise Undelivered

Nepal’s democratic journey began with hope. The abolition of the monarchy in 2008 and the adoption of a progressive constitution in 2015 promised inclusive governance and citizen empowerment. However, for many citizens, those aspirations have been repeatedly dashed.

After the 2015 Federal Constitution, frequent coalition changes and government reshuffles fueled socio-political unrest and policy instability. The introduction of federalism in 2017 further complicated coalition politics. Small regional parties shifted focus to provincial contests, while the larger parties—Maoist Centre, CPN-UML, and Nepali Congress—remained locked in survival-driven alliances, often ignoring citizen needs. Despite a decline in the number of parties in the House of Representatives due to consolidations and dissolutions, stable coalition formation remained elusive. 

In just 17 years since becoming a republic in 2008, Nepal has cycled through 14 governments—none of which have completed a full five-year term, reflecting a political system dominated by survival tactics rather than ideological alignment or public service. For ordinary Nepalis, democracy has become a cycle of broken promises, leaving citizens frustrated, with institutions weakened and accountability a distant promise.

The Rise of Privileged Political Elites

Nepal’s political system is dominated by a handful of entrenched elites. Amid growing disillusionment with Nepal’s democratic institutions, scholars have begun to characterize the system not as a representative democracy, but as a tightly controlled oligarchy. Political scientist Prof. Ganga Thapa aptly describes the post-monarchy landscape as “an oligarchy of five,” where power is concentrated in the hands of a few entrenched leaders. Nepal’s post-monarchy political landscape has been dominated by a tight circle of five leaders—K.P. Sharma Oli, Pushpa Kamal Dahal, Sher Bahadur Deuba, Madhav Kumar Nepal, and Baburam Bhattarai—whose repeated premierships and enduring party control reflect a deeply entrenched elite grip on power. Most of them served as Prime Minister by rotation a number of times. Through shifting coalitions, party splits, and institutional manipulation, they have recycled authority among themselves, sidelining reformist voices and undermining democratic accountability. Their influence extends beyond party, electoral cycles, shaping legislation, appointments, and the very architecture of Nepal’s governance.

These leaders have monopolized public discourse and hijacked democratic processes, effectively imprisoning the very ideals of democracy. Their dominance persists despite recurring public debates emphasizing the need for youth engagement. Even the judiciary bows to the influence of the three dominant parties—Nepali Congress, CPN-UML, and Maoist Centre—further stifling citizen participation. Prof. Thapa describes the system as an “electoral autocracy—where elections occur, but democratic principles are hollowed out.”.

For Nepal’s youth, democracy is no longer a promise but a cycle of broken commitments, political games, and unchecked elite power.

Corruption: Nepal’s Endemic Challenge

Corruption is endemic, undermining development and public trust. Despite repeated reforms, graft is entrenched across the political system and bureaucracy, affecting everything from infrastructure to health and education. Transparency International Nepal estimates the country loses roughly USD 3.3 billion annually.

The consequences are visible everywhere. Infrastructure projects repeatedly stall, while major scandals—such as the Nepal Airlines Airbus A330 purchase—remain unresolved (Nepali Times, 2022). Investor confidence has plummeted; landmark hydropower projects like West Seti and Budhi Gandaki have been canceled or reallocated due to political interference.

The Pokhara International Airport has become emblematic of systemic failure. A 2025 parliamentary investigation uncovered Rs14 billion (USD 105 million) in corruption and irregularities, including fake payments, unauthorized tax waivers for the Chinese contractor, and disbursements for incomplete infrastructure. Yet, senior officials remain largely untouchable—even ministers accused of human trafficking.

Structural reforms intended to curb corruption have often backfired. The March 2023 CIAA Act amendment requires parliamentary committee approval before the anti-corruption commission can investigate senior officials, creating political gatekeeping. Similarly, a 2019 NJC Act amendment empowered the executive to impose indefinite “administrative stays” on judicial hearings, hollowing out the judiciary’s role as a check on elite misconduct.

Corruption in Nepal hits citizens where it hurts most. Funds are siphoned off through inflated contracts and political kickbacks. Schools remain unfinished. Hospitals run short of medicine. For youth, these failures are proof that the promise of development is hollow.

Nepal’s youth-led revolt is not an aberration —it is a generational verdict on elite failure and democratic decay. What is playing out in Kathmandu reflects a broader South Asian trend: democracies hollowed out by dynastic politics, judicial manipulation, and the erosion of civil liberties.

Bangladesh offers one stark example. Years of centralized rule, widespread frustration over job opportunities, disputed elections, and rising youth unemployment culminated in Prime Minister Sheikh Hasina’s resignation in 2024 after mass protests. In Sri Lanka, the 2022 economic collapse triggered a nationwide movement that dismantled the Rajapaksa dynasty and ushered in Anura Kumara Dissanayake’s surprise victory in 2024. Pakistan continues to struggle with cycles of judicial overreach and military intervention, leaving citizens deeply skeptical of the rule of law. Even India—the region’s largest democracy—faces mounting concerns over shrinking civic space, with journalists prosecuted under anti-terror laws and opposition leaders pursued through raids and lawsuits.

Across the region, the warning signs are consistent: falling voter participation, rising youth mobilization, and widening disillusionment with political elites. South Asia’s democratic deficit is deepening, and cosmetic reforms will not suffice. The region’s future stability depends on credible commitments to transparency, inclusiveness, and institutional integrity—without which democracy risks losing both legitimacy and public trust.

(The author is an economist, policy analyst, and writer specializing in South Asian politics, economics, governance, and development. Having lived 17 years in Nepal, he recently wrote on the country’s pro-monarchy protests for the Himalayan Times, exploring their implications for democratic stability. Views expressed are personal. He can be contacted at golam.grasul@gmail.com )

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