Prime Minister Balendra Shah on Wednesday broke tradition and met with 17 foreign envoys collectively, a move that was a notable departure from how his predecessors operated.&nbsp;
Shah had already set himself apart by talking less, listening more, and delegating to trusted friends. But by meeting all ambassadors at one go in the presence of the Foreign Ministry, he signalled a paradigm shift in how he wants Nepal to be seen: no longer just balancing India and China, but as a country confident about its <a href="https://nepalitimes.com/opinion/guest-editorial/tripolar-contestation-over-nepal">strategic importance and place in the world</a>.
In just two weeks, the <a href="https://nepalitimes.com/news/rsp-dos-and-don-ts">RSP has sprung into action </a>on multiple fronts to implement its ambitious 100-point, 100-days action plan. It has taken short-term measures to mitigate the impact of the Gulf war, as well as medium- and long- term measures to streamline the bureaucracy. A few high-profile figures have been made examples of to drive the message home.
Earlier this week, the government recalled six politically appointed ambassadors, the most notable being long-serving Shankar Sharma from New Delhi. The Kathmandu District Court issued arrest warrants against former prime minister Sher Bahadur Deuba and his former foreign minister wife Arzu Rana on charges of money laundering and corruption.
Each ministry has been trying to clean up the accumulated rot from the past three decades: regulatory overhaul of microfinance, education, health and service delivery.&nbsp;
These actions widely disseminated campaign-style on YouTube and TikTok have made most Nepalis hopeful that the party they installed in power means business.
<div class="embed-block"><iframe src="https://www.facebook.com/plugins/video.php?height=314&href=https%3A%2F%2Fwww.facebook.com%2Freel%2F1279862820757799%2F&show_text=false&width=560&t=0" width="560" height="314" style="border:none;overflow:hidden" scrolling="no" frameborder="0" allowfullscreen="true" allow="autoplay; clipboard-write; encrypted-media; picture-in-picture; web-share" allowFullScreen="true"></iframe></div>
BACKLASH
But such attempts to overhaul a long-entrenched political culture were bound to face backlash. In their impatience and enthusiasm to get things done, some of Prime Minister Shah’s ministers have over-reached.
It was common knowledge that government-paid advertising in the mainstream press was kickback-driven, but the PMO’s directive that official notices be published or broadcast only on state-run media has been denounced — especially as the media industry struggles to stay afloat.
More serious are some recent appointments by ministers of relatives and figures closely associated with the RSP to key positions. This has rankled because this party built its political plank on ending nepotism and graft.&nbsp;
News that Home Minister Sudan Gurung allegedly had not paid rent on leased land, which illegally encroached on the lake in Pokhara did not help. &nbsp;
Prime Minister Shah himself has come under scrutiny for appointing a kitchen cabinet full of male buddies from his time as Kathmandu mayor. To douse criticism he brought in as adviser investigative journalist Deepa Dahal, who has exposed corruption in high places of the previous coalitions.&nbsp;
Shah’s appointment of another political adviser Asim Shah to the head Constitution Amendment Task Force, is also seen as problematic. He is a filmmaker and former lawmaker, but does not have a background in constitutional law.&nbsp;
Even more controversial is the Cabinet’s decision to appoint RSP Chair Rabi Lamichhane’s legal counsel, Narayan Kandel, as Attorney General. Kandel used to be a UK permanent resident, and does not have as much experience practicing law in Nepal.&nbsp;
Kandel’s appointment drew flak and raised eyebrows, and with the pending legal cases against Lamichhane this appointment represents a flagrant conflict of interest.
Health Minister Nisha Mehta was also accused of favouritism after reappointing Junu Shrestha, wife of Labour Minister Dipak Kumar Shah, as member of the Health Insurance Board which had earlier suspended her. The Labour Minister’s rambling rant at the Board’s meeting on Tuesday has not helped the RSP’s image.&nbsp;
(UPDATE: On Thursday, Prime Minister Shah sacked the Labour Minister after the RSP found him in breach of the party's code of conduct and discipline. He served 14 days in the Cabinet, one of the shortest tenures for a minister in Nepal )
It is hard to know what <a href="https://nepalitimes.com/news/ball-in-balen-s-court">Balendra Shah is thinking</a>, and how Rabi Lamichhane is going to justify some of these moves. After all, making politics, governance, and bureaucracy a meritocracy has been the core tenet of the RSP, and it risks alienating its mainly youth base if these missteps persist.
But at least for now, most RSP supporters seem to be giving the party the benefit of doubt.

Shristi Karki

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

1250x600

1084x550

thumbnail

viewImage

News

Nepal’s new government springs into action

Barely a month after the March election, newly elected lawmakers convened for the first session of Parliament on Thursday (picured above).
But the RSP had already hit the ground running in its first week in office. Prime Minister Balendra Shah and his trusted Home Minister Sudan Gurung conducted a slew of high profile arrests. &nbsp;
The former prime minister, home minister and Kathmandu CDO, among others, were detained in connection with the 8 September massacre outside Parliament.&nbsp;
The Cabinet unveiled its 100-point roadmap outlining sweeping institutional, economic and social reforms to ensure better service delivery, and setting deadlines for itself for the first 100 days in office.&nbsp;
Key priorities include strengthening digital governance, removing redundancy across the civil service, investigating assets of high-ranking political and government figures, depoliticising the bureaucracy and universities, as well as broader legal and constitutional reforms.
“The move to hold former leaders accountable sends a powerful signal that impunity is no longer politically untouchable,” says Pukar Malla of Governance Lab at Daayitwa Abhiyan. “On the reform agenda, the direction is right but the timeline is too compressed, 100 days is not enough to transform the system. It is only enough to establish the discipline of transformation.”
The RSP’s decisions have mostly been greeted with enthusiasm by the electorate which gave the party an almost two-thirds majority in Parliament. Nepalis are for the first time in decades genuinely hopeful about the country’s leadership.
“The enthusiasm is real because the pain is real. &nbsp;But people are not just asking for symptoms to be treated. They want the patterns underneath the symptoms to change,” says Malla. "That is where the leadership journey becomes much harder, because structural change is slower, more conflictual, and far less theatrical than headline decisions.”
The RSP’s prompt proactiveness signals a can-do approach designed to placate voters impatient to see immediate change, and also to warn influential figures of the past three decades that anyone can be dragged to jail or put on the immigration no-fly list. The message is also to the bureaucracy to pull its weight, and clean up its act.&nbsp;
But in public discourse, there is also a sense that anyone critical of the government’s decisions can be targeted and trolled. Enthusiasm about the new government &nbsp;seems to outweigh critical and nuanced reasoning about whether ‘Balen Sarkar’ can achieve targets it has given itself within the self-imposed timeframe.&nbsp;
Any concerns about the RSP’s perceived high-handedness or criticism of state overreach tends to be dismissed, branded as noisemaking by mouthpieces of old parties.
Critics say the arrest of Oli, Lekhak others did not follow due process, and displays the very partisanship and vendetta tactics of the legacy parties that the RSP vowed to dismantle.
“The detentions and the plans this government has made for the next 100 days might be necessary, but they seem to be optimised for public spectacle and rather than being deliberative steps for sustained reforms,” says researcher Dovan Rai of Body and Data.
She adds: “K P Oli failed because he put himself above the system, and it seems as though that power has just transferred from one personality to another. What we need is strong institutions, not strongmen that play the role of hero or villain.”
The RSP’s strategy to overhaul the state apparatus is high-stakes, aspirational and at times unquantifiable. The new leaders and the public must recognise that Nepal’s problems cannot be solved in 100 days.
The near two-thirds dominance in Parliament offers the RSP a chance to show results, but it is also an unforgiving majority. Failure is not an option.
Adds Pukar Malla: Political leadership may drive change from above, but civil society and citizen networks have to partner from below.”
The NC and the UML are licking their wounds, and again proved their obsolescence this week by trying to rehabilitate and reinstate old leaders. The UML is on warpath, and missed another opportunity to turn a new leaf by rejecting 36-year-old Suhang Nembang as parliamentary party leader.
People who did not vote for RSP must give the party a chance to deliver on promises. But the party's most effective opposition may have to be its own voters, who must play the check and balance role by insisting on results, and preventing fawning support for populist leaders resulting in authoritarian creep. &nbsp;&nbsp;
“The public now plays a critical role in holding the leadership accountable, it must go beyond small wins,” says Dovan Rai. “Support must not come from opportunism, and criticism must not be based on prejudice.”

RSP dos and don’ts

As a direct fallout of the Israel-American war on Iran, Nepal on Monday nearly doubled the price of aviation fuel in a move that is going to impact during the spring peak tourism season. The steep price hike of jet fuel appears to have been made to cushion the impact on the general public. The price of petrol, diesel and cooking gas were also hiked for the third time in a month on Thursday.&nbsp; Aviation turbine fuel (ATF) will now cost $2,237/ton up from $1,207. The cost of ATF in Kathmandu was <a href="https://nepalitimes.com/news/sky-high-fuel-price-hits-nepal-s-tourism-airlines" target="_blank">already one of the highest among Asian airports</a>, and this price hike will affect mostly long-haul flights to Istanbul, Seoul and Narita for airlines that need to refuel in Kathmandu.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260404130420_4ae075d1e871fc5608cf242d6e309005d30cfdb6e6d0ecfb45ca7388a851c6aa.png" data-media-id="editor_1" data-image-id="20260404130420_4ae075d1e871fc5608cf242d6e309005d30cfdb6e6d0ecfb45ca7388a851c6aa" data-rendition-name="original" width="1784" height="1294" loading="lazy" alt="aviation turbine fuel prices"> </figure>  Domestic airlines, which paid Rs127 per litre, will now have to pay Rs251 for their turboprop planes. “We have no recourse but to pass this on to passengers as a fuel surcharge,” said one executive of a domestic airline in Nepal. As it is, Nepal Oil Corporation levied a hefty tax on petrol and ATF in order to subsidise diesel and cooking gas. Many analysts were expecting a fuel price hike, but the near-doubling of the price of ATF means the new Nepal government is trying to protect ordinary citizens from raising the price of diesel and LPG even more than it has so far. Aviation fuel in Nepal is trucked in on tankers from Indian refineries and its price is highest in Kathmandu, and less in Bhairawa and Pokhara — transportation costs being higher depending on distance. But even in Bhairawa, ATF prices have doubled for the only international airline that serves it, Thai AirAsia.&nbsp; Most airlines flying Kathmandu from nearer airports in India, the Gulf and Southeast Asia will be less impacted because they can fly in on full tanks and need minimum refuelling in Kathmandu. But carriers like <a href="https://nepalitimes.com/banner/high-cost-lays-aviation-low-in-nepal" target="_blank">Turkish Airlines</a>, Cathay Pacific, Korean Air, &nbsp;and Nepal Airlines which fly wide body aircraft on long-distance routes will be hit hardest.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026040305040_a40db74375ebe0c28e7c35477bc262df9ae392a84e7bfa4033996181d69e0209.jpg" data-media-id="editor_3" data-image-id="2026040305040_a40db74375ebe0c28e7c35477bc262df9ae392a84e7bfa4033996181d69e0209" data-rendition-name="original" width="1032" height="689" loading="lazy" alt="sky high prices"> </figure>  However, ATF costs have also been raised in regional airports like Hong Kong, India and Singapore. Aviation fuel at New Delhi airport has risen to $1,698/ton. Korean Air is adopting emergency measures to reduce expenses to make up for rising fuel costs. South Korea gets nearly all its fuel from the Gulf, and the blocking of the Strait of Hormuz has been especially damaging for the country. Fuel makes up more than a third of the operating cost of airlines, and even a small increase in ATF prices can make a big difference. Crude oil prices have increased 50% since the West Asia war began on 28 February, and global ATF prices have doubled.&nbsp; Airlines in Asia, including Nepal, face a double shock. The first is the higher fuel cost, and the second is that fewer people are travelling. Nepal’s tourism arrivals fell in March compared to February. India has added up to 20% fuel surcharge on domestic flights, and has reduced flights by 12%. Chinese airlines have also been affected, with China Eastern preparing for a significant impact of the Gulf war. It has added fuel surcharges to new tickets, as have Cathay Pacific, Thai International and Air Asia. Vietnam has drastically cut the number of domestic flights, and the Philippines will ration ATF. Australia imports 90% of its ATF mainly from China which has stopped export to ensure domestic supply to its own airlines. Carriers like Qantas have curtailed flights, changing aircraft type on long-haul routes, and a fuel surcharge of up to 20% have been added to tickets. Most Asian airlines are adding fuel charges only to new tickets, and the increase will not affect the price of pre-sold tickets issued for April and May.

Fuel price shock hits Nepal aviation

In findings that have implications for Nepal’s protected areas, a new study has found that improving the landscape surrounding forest remnants can increase their ability to retain bird species — even in small or isolated forests.
For decades, traditional ecological theory has treated isolated and fragmented habitats as ‘ forest islands’, predicting species’ survival through area size and isolation.&nbsp;
But these models have long overlooked the nature of the matrix of farmland, vegetation, or open areas surrounding these habitat remnants.
Such isolated natural habitats can be found in Nepal’s buffer zones and the fringes of community forests. The study shows that such landscapes are critical, as species must move through, use, or avoid them when navigating between forested areas.
The <a href="http://tracking.uea.ac.uk/tracking/click?d=8MYmW7mKCe_pDHK0gufnd4135h9CEK9ecW1bs_ZY2c2VtsLk9TZkA9mtdXdfbkrQ_ArbffUyZMs8q3Gw9zphK1uEDizoBXdVpj92FYnX_YkWsLtY4L6Zty6ZL2EUIcnWCw2" target="_blank">research</a> published on Monday in Proceedings of the National Academy of Sciences (PNAS) provides strong evidence that the quality and structure of the matrix play a crucial role in biodiversity survival.
The study was led by scientists from the Instituto Federal de Educação, Ciência e Tecnologia Farroupilha in Brazil, Slippery Rock University in the US, and University of East Anglia (UEA) in the UK.&nbsp;
It shows that even modest increases in nearby tree cover can substantially boost the number of bird species that survive in forest remnants.
“This study clearly shows how high-quality surrounding landscapes increase species retention within forest remnants,” said <a href="http://tracking.uea.ac.uk/tracking/click?d=pVg8cp2ODeeuVS5IJq7Lsl8kfKtkBdELNH6sVVaqLNV5QoiDf-MUaq7WJe-WQBCn4vFy0xp-IzqHW4axYfM9vyk0f7VF_z_sEJbiNxvY3ZWK06Q84hKIx3DYWiXNs9kgkLXxCx-2NZv-4TCmREG6JFkLOl7VqiGtEOIEgVEYsfCNzVa0VBKdzLL_ufeN6lxa5Q2" target="_blank">Prof Carlos Peres</a> of UEA’s <a href="http://tracking.uea.ac.uk/tracking/click?d=eOv8flpEI55Dr2yTtxUGjWkuuYuciKFMR1pqBeIUaJg-sIg4LeIgwlKny1tQCqfplraf82tl1EwgwiFroclrgJ9y6wF49JNAcuqL_BtZroT50EsfWFuVJWAgOPkXhL0YlbvoBGOWdCD_Wg0X7vzPMEU6DTWGhEchSgfy_oKvkggoUE-LAjRlf4T2UU866zgYpg2" target="_blank">School of Environmental Sciences</a>. “Conservation gains from investing in a more hospitable matrix in agricultural and urban areas are far greater than previously realised.”
The study revealed that small forest patches retained significantly more bird species when surrounded by at least some tree cover rather than open water. Landscapes with greater surrounding tree cover supported richer bird communities overall.&nbsp;
Lead author Anderson Bueno from the Instituto Federal de Educação, Ciência e Tecnologia Farroupilha, said: “Habitat remnant size is not the whole story. Two forest remnants of the same size can support very different numbers of bird species - those surrounded by farmland with nearby trees may host more than twice as many species as isolated remnants within reservoirs.”
Indeed, the study showed that even small amounts of tree cover within just 300m &nbsp;of a forest remnant had a strong positive effect on species survival. Although the study was not done in Nepal, it has implications for buffer zones surrounding Tarai national parks where farms and urban buildup coexist.
Chase Mendenhall of Slippery Rock University hoped the study will support more effective land‑use policy and encourage governments and landowners to invest in wildlife‑friendly farming practices that support both biodiversity and agricultural productivity.
The findings highlight that, while protecting remaining forests is essential, restoring and improving the landscapes around them is also important. Planting native trees, restoring degraded vegetation, and creating wildlife-friendly agricultural land can dramatically reduce local extinction risks.
Human-modified landscapes now cover more than half of Earth’s land surface, increasing the significance of this study. The research team included 58 scientists from 19 countries to analyse results from 50 landscape-scale bird surveys across tropical and subtropical regions in the Americas, Africa, and Asia where natural landscapes have been heavily fragmented.
The unique design of the study compared two types of forest remnants: forest islands created by hydroelectric reservoirs, which represent the most extreme habitat fragmentation on Earth, and forest fragments embedded within terrestrial landscapes, often surrounded by agricultural land.
By comparing these contrasting systems, the researchers could quantify how much a more benign, tree-rich matrix can buffer species against local extinctions. More than 1,000 forest remnants were studies where almost 2,000 bird species were recorded, including critically endangered species.
The report in Proceedings of the National Academy of Sciences is titled <a href="http://tracking.uea.ac.uk/tracking/click?d=8MYmW7mKCe_pDHK0gufnd4135h9CEK9ecW1bs_ZY2c2r6PMIQ_jzL_CNMhAAeHgM-McOvX84Qk5c0jYTi0olrgtCl0TEP0iM4w3GMQlbjvOw8LVCWM18vSYS8nfif4QZ4ejxD8wBFM0OZC52VheA7vk1" target="_blank">‘High-quality surrounding landscapes mitigate avian extirpations from forest remnants’</a>.

Protecting nature outside national parks

<a href="https://www.triarchypress.net/michael-thompson.html" target="_blank">Michael Thompson</a>, who died on 18 March after suffering a stroke a few weeks earlier, was a former Gurkha officer, mountaineer, and <a href="https://soscbaha.org/lecture-series/cultural-theory-and-clumsiness-some-lessons-from-nepal/" target="_blank">founding pillar of Cultural Theory</a>.&nbsp;
His daughter Ursula said it was a peaceful end, Mike himself had asked to be taken off medical support after doctors said they could do no more.
Together with his PhD adviser, the late Mary Douglas and fellow PhD student Steve Rayner of Oxford’s Institute for Science, Innovation and Society, Mike chose to generalise from years of anthropological work—unlike other social anthropologists—to filter out common traits of human behaviour across time and space, and then to apply that to modern society and its conflicts.
Cultural Theory has also been used to explain water and energy conflicts in Nepal and California, seat belt and pension fund battles in Europe, the underlying social dynamics of kibbutz in Israel, and what Mike liked to call “argumentative technology assessment” plus much more.&nbsp;
Unlike other ‘descriptive’ social sciences, Cultural Theory is ‘interpretive' in its orientation, which makes many in the ‘descriptive tradition’ rather uneasy with its ‘uncomfortable knowledge’.
A classic example is the massive almost six-year exercise that resulted in the multi-country, multi-author 4-volume study Human Choice and Climate Change led by Steve Rayner and Elizabeth Malone for the US Department of Energy and the Pacific North-West Lab.
It was, and perhaps still is, the first time that the social sciences looked seriously into climate change. However, its insights and conclusions were uncomfortable enough for it to be ignored, and only Mike Hulme of the Tyndall Center covered it as a chapter in his book Why We Disagree About Climate Change a dozen years later.
During my various lectures around the world, I myself have found younger scholars in China, India, South Asia, South-East Asia, Africa and Latin America much more welcoming and open about Cultural Theory interpretations than in Europe or America.
Mike liked to say that his own work on Cultural Theory was initially conceptualised while <a href="https://archive.nepalitimes.com/news.php?id=3633" target="_blank">he was in Nepal climbing mountains</a>. He was part of the British expeditions on Annapurna’s South Face in 1970 and Everest Southwest Face in 1975.
Even while working on his PhD under Mary Douglas, which was published by Oxford University Press as Rubbish Theory: The Creation and Destruction of Value. Mary Douglas and others having done work on the Cultural Theory of everyday goods and consumption (including drinking), Mike’s Rubbish Theory showed how unwanted trash or scrap eventually became invaluable antique.&nbsp;
Unfortunately, OUP withdrew the book after its eminent economics professor-board member objected to the book showing the limitations of economics in explaining value.
When I asked his wife Anne why Mike was not republishing it, she said it was probably because he is practicing what he preaches, hoping to see if that book can transit from discarded ‘waste’ to achieve ‘antique value’. &nbsp;It did, and was being put up on Amazon for an astronomical sum until Pluto Press republished it.&nbsp;
In line with Cultural Theory, which examines and explains everyday life, Mike’s sociology of mountaineering expeditions was published in Diadem Books’ Mirrors in the Cliffs in 1983 as a hilarious but astute piece titled Sahibs and Sherpas.
I first met Mike in April 1986 at the now famous <a href="https://nepalitimes.com/news/in-memoriam-jack-d-ives-1931-2024-rqpsk7eh" target="_blank">Mohonk Mountain Conference</a> in upstate New York, the conference with most of the world’s eminent mountain experts which resulted in a major scientific paradigm shift – the debunking of the <a href="https://archive.nepalitimes.com/news.php?id=1211" target="_blank">Theory of Himalayan Degradation</a>.&nbsp;
It resulted in the book <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/Sustainable-Mountain-Development-Getting-the-Facts-Right-Jack-D-Ives,946" target="_blank">Uncertainty on a Himalayan Scale</a> (with Warburton and Hatley), which was republished in 2007 by Himal book with a long updating foreword by Mike and me.
Our collaboration continued across many centres in the US and Europe starting with San Diego’s Western Behaviourial Sciences Institute in 1989/90 where I first met Mary Douglas and Steve Rayner (and became the first person in Nepal to tele-conference via landline phone connected to San Diego’s computer system).&nbsp;
We continued on to Battelle Pacific Northwest National Lab in Washington state that resulted in the monumental 4-volume Human Choice and Climate Change, and involved work with Oxford’s James Martin Institute for Science and Civilization, King’s College London, LOS Center in Bergen, places in Germany and very much at the <a href="https://iiasa.ac.at/options-magazine/summer-2022/people-profile-from-everest-to-systems-analysis" target="_blank">International Institute for Applied Systems Analysis (IIASA/Laxenburg)</a> since the early 1990s.&nbsp;
During forays to Europe and transits through London, I often stayed with Mike and Anne at their London Highbury-Islington house and later in Bath when he moved there. Incidentally, they had bought the London house rather cheap before its gentrification (their neighbour was a school where Tony Blair’s young children studied).
Between <a href="https://archive.nepalitimes.com/news.php?id=4675" target="_blank">mountaineering </a>and Cultural Theory, Mike worked as a builder, and he single-handedly retrofitted their London home, which he later sold to buy a much bigger and better house in Bath with money to spare as retirement fund.
The idea of what was good versus bad development in the Himalaya from a perspective was further developed as an IIASA/Oxford Science and Society research resulting in our 2017 book Aid, Technology and Development: the Lessons from Nepal.&nbsp;
While he was in Nepal for that research, we did manage to get him to deliver a <a href="https://soscbaha.org/lecture-series/cultural-theory-and-clumsiness-some-lessons-%20from-nepal/" target="_blank">Social Science Baha</a> lecture on the book’s essence, <a href="https://soscbaha.org/lecture-series/cultural-theory-and-clumsiness-some-lessons-from-nepal/" target="_blank">Cultural Theory and Clumsiness: Some Lessons from Nepal</a>.&nbsp;
Sometimes our collective writings came from discussions in the strangest of ways and places. After a long meeting at the IIASA schloss, we ended up in a pub for beer, and the discussions were around what it would take for a city to be a force for good and not one bad for the environment.&nbsp;
If such a city could be designed, one could plonk it on the middle of a degraded landscape, which theoretically should then heal itself. Someone less inebriated obviously took notes and circulated it, which eventually resulted in the Engineering Sustainability paper On Governance for Re-engineering City Infrastructure.
Another time, I had to give a keynote presentation at an IIED/Sussex STEPs Center dialogue in London’s Goodenough College on re-imagining Development in LDCs. Following that talk, we sat down and produced our Restoring Development Dharma with Toad’s Eye Science.
Just before Covid struck, we (including Bruce Beck and Joanne Linnerooth-Bayer from IIASA) had been working on a Cultural Theory examination of four schools of engineering thought, our last meeting was at Steve Rayner’s Keeble College in Oxford as part of that exercise.&nbsp;
Its earlier efforts were explored in our work on transboundary risk management in the Himalaya at Bergen’s LOS Center and also dealt with in a chapter in EARTHSCAN’s IIASA publication Transboundary Risk Management edited by Joanne and others.&nbsp;
It argued that risk is socially constructed in four distinctly varied ways, where facts and values are entangled, leading to competing technological preferences. Mike desperately wanted to follow up on the Keeble meeting at IIASA, but – given the Covid fears already underway – Anne put her foot down and had him quarantined at home.
Our other on-going effort was, given that IIASA was founded during the Cold War as a place for scientists of the Euro-American West and the Communist East to work together to build confidence for peace, but after the collapse of the Berlin Wall that division (hence raison d’etre) no longer existed – to develop a global North-South axis for IIASA’s work.&nbsp;
We believed that was where the great challenges of tomorrow development debates as well as environmental concerns (including climate change) would play out. Towards that end, he was working with a range of Global South scholars and was very anxious to see if an IIASA-Nepal Social Science Baha/South Asia Institute for History and Philosophy collaboration could be developed.&nbsp;
Mike retained interest in Nepal’s developments up to his very end, even when on hospital bed, asking his daughter to find out from me what was going on with Nepal’s March elections that saw a seismic upheaval which decimated all the old political parties.&nbsp;
When Ursula described the gist to him, I am sure he was inwardly pleased that it vindicated Cultural Theory as Political Science’s contention that moral high ground activist egalitarianism not given proper place at the policy table can strike back at insensitive bureaucratic hierarchism and market individualism’s crony capitalism with swift and lethal vengeance.
Michael Thompson’s physical presence will be greatly missed, but his impact on interpretive social science – and its extremely relevant application to Nepal’s and other LDC’s developmental conflicts – will live on.
Dipak Gyawali is an energy economist with the Nepal Academy of Science and Technology (NAST). He is a former minister of water resources.&nbsp;
To listen to Michael Thomson’s lecture at Social Science Baha in 2011 <a href="https://soscbaha.org/lecture-series/cultural-theory-and-clumsiness-some-lessons-from-nepal/" target="_blank">click here.</a>

Michael Thompson, 89

Nepal’s new government hit the ground running with the arrests of former Prime Minister K P Oli and home Minister Ramesh Lekhak early Saturday morning.&nbsp;
Their dramatic detentions followed an inquiry commission report recommending that Lekhak, Oli, and former Police chief Chandra Kuber Khapung be investigated and prosecuted for negligence in failing to stop the killing of 19 young protesters by security forces during the protests on 8 September.&nbsp;
Interim PM Sushila Karki’s government faced considerable criticism from GenZ activists at the end of her 7-month tenure for failing to release the report and hold the previous UML-NC coalition to account.&nbsp;
Karki had left any decision on the report’s findings to new RSP government, but her government released it after the content was leaked earlier this week, a day before Nepal’s newly elected lawmakers took their oath of office.
By making the arrests of Oli and Lekhak as its first order of business, the new government, and especially Home Minister Sudan Gurung and Prime Minister Balendra Shah, have tried to show that they are decisive and mean business.&nbsp;
It has been hailed by many as signalling that Nepal’s new and young leadership will back up its pledges with action. However, others including the UML and some constitutional experts, say that the arrests have not followed legal procedures. The UML has mobilised its affiliated groups to start nationwide street protests.&nbsp;
The main divide seems to be over the perception that the new government is only interested in justice for the perpetrators of the 8 September Parliament massacre, and not against those who organised arson and vandalism of government buildings, homes of politicians, businesses and the media the next day.&nbsp;
While some celebrate what they see as the beginning of justice for the victims and survivors of the September violence, political analysts and legal experts express alarm over a lack of adherence to the rule of law.&nbsp;
K P Oli has a lot of experience being behind bars. He was jailed a dozen times in 1970s by the Panchayat regime for his extreme left activism and then spent 14 years in prison between 1974-1988.
Critics argue that the former leaders were denied due process and label their arrest a “political vendetta."
RSP supporters had made similar arguments in October 2024 and April 2025 that the arrest of party chair Rabi Lamichhane over misappropriation of funds from numerous cooperatives were &nbsp;politically motivated.
‘What is happening is unacceptable,’ wrote former minister and diplomat Nilamber Acharya wrote on Saturday morning. ‘Such acts of revenge and crackdowns do not bode well.’
In response to accusations of the arrests being partisan and politically-motivated, Home Minister Sudan Gurung took to social media, saying that the new government is fulfilling its promises: ‘No one is above the law,’ he wrote. ‘This is not revenge, it is the beginning of justice. I believe now that the nation will now take a new direction.’
There is also concern the new leadership has jumped the gun to implement the findings of the inquiry commission, which has itself been criticised in some quarters for concentrating on the events of 8 September rather than investigating the perpetrators of the anarchy on 9 September.&nbsp;
The first meeting of the Council of Ministers made the immediate implementation of the GenZ Movement Inquiry Report its first priority.
But there are questions as to whether the execution of the report will be impartial. Home Minister Gurung will now dictate how the recommendations &nbsp;will be conducted, since he is himself referenced in the report in connection with the unrest on 9 September.&nbsp;
In fact, the report also outlines how supporters stormed Nakhu Prison on 9 September to organise Rabi Lamichhane’s jailbreak. Will Minister Gurung also go after his own party's leadership? &nbsp;
With the UML already calling for nationwide protests against the detention of its leaders, there is concern that Nepal is plunging straight into turmoil instead of stability.
The UML leadership has been unrepentant about the 8 September events. Oli has defiantly blamed infiltration and outside forces for the killings, and unlike the Nepali Congress the UML has not managed its own leadership changeover.&nbsp;
The NC under Gagan Thapa as well as the Nepali Communist Party of Maoist leader Pushpa Kamal Dahal have so far been silent about the detentions even though former Home Minister Ramesh Lekhak is from the NC.
Oli and Lekhak’s arrests will now be challenged in the courts. But their detention also signals to Nepal’s political old guard that the tables have turned: legacy leaders cannot be complacent and assume they will disappear from national consciousness for past deeds without being held accountable for what happened during their watch.
The RSP government under Prime Minister Balendra Shah seems determined not to let bygones be bygones. But while that is all and well, it remains to be see whether the party can deliver on the need of the electorate for tangible governance reform.
The danger is that the new rulers may be defined by the same tactics of political revenge as its predecessors in the name of meting out justice.

New Nepal government signals action

<a href="https://nepalitimes.com/news/ball-in-balen-s-court">Nepal’s newly-installed Prime Minister Balendra Shah</a> unveiled his Council of Ministers after taking the oath of office on Friday in Kathmandu.&nbsp; Besides Nepal's pre-existing problems, his team will immediately have to deal with the fallout of the West Asia conflict to satisfy an electorate impatient for change. The Rastriya Swatantra Party (RSP) won a majority in the 5 March election and capped the Cabinet size at 15. Shah, a structural engineer and musician, himself has taken charge of the Defence and Industry Ministries. There has been an attempt to make the Cabinet inclusive with women in five of the new portfolios.&nbsp; After much negotiation, the powerful Home Ministry, a bone of contention between Shah and RSP Chair Rabi Lamichhane, has gone to Sudan Gurung, a hitherto little-known figure who <a href="https://nepalitimes.com/here-now/who-or-what-is-hami-nepal">rose to prominence after the September GenZ protest</a> and won the election from Gorkha-2.&nbsp; Gurung will be in charge of Nepal’s internal security apparatus and maintaining law and order. And with Gurung, a close ally of the Prime Minister, in charge, some note the Home Ministry will be a hook for Shah if Lamichhane, with his share of controversies, steps out line.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_c7725ea5fb9ffbf96df25a7b3122520b7ae3ee10548aed3f37781a7e5440e51a.jpg" data-media-id="editor_2" data-image-id="20260327090324_c7725ea5fb9ffbf96df25a7b3122520b7ae3ee10548aed3f37781a7e5440e51a" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>  Notable RSP leaders, including vice-chair DP Aryal, were said to have been vying for the portfolio.&nbsp; Gurung is the founder of the non-profit Hami Nepal, which worked primarily in earthquake relief in 2015, and emerged onto the national stage during negotiations to appoint Sushila Karki as interim PM after the unrest. He was also involved in key negotiations that cemented Balendra Shah and Rabi Lamichhane’s political partnership in the runup to the election.&nbsp; Most new Cabinet members are not just first-time ministers, but are also freshmen lawmakers. Many are experts in their fields. Finance Minister Swarnim Wagle is an <a href="https://nepalitimes.com/here-now/nepal-needs-to-rebrand-itself">economist </a>with degrees from the London School of Economics and Harvard, and was previously Chief Economic Advisor at the UNDP Regional Bureau for Asia and the Pacific, and also served in Nepal’s National Planning Commission.&nbsp; Previously a member of Nepali Congress, Wagle exited the party in 2023 following differences with top leadership, and joined the RSP. Wagle won a by-election from Tanahu-1 in 2023 and won again from the same constituency in this month’s election.&nbsp; Shishir Khanal, who heads RSP’s foreign affairs department, has been appointed Minister of Foreign Affairs. &nbsp;Khanal is co-founder of Teach For Nepal, was briefly Education Minister when the RSP was part of the the Pushpa Kamal Dahal-led coalition government in 2023.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_b1a670bac12e2bf4df955134f58c8de7718d48f6be4e1f2df7c7c52f82e36e42.jpg" data-media-id="editor_4" data-image-id="20260327090324_b1a670bac12e2bf4df955134f58c8de7718d48f6be4e1f2df7c7c52f82e36e42" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>  Law Minister Sobita Gautam is a lawyer by profession and worked in governance and public policy before she was elected as the youngest MP in the 2022 election.&nbsp; Health Minister Nisha Mehta is a nurse and became a lawmaker under the Proportional Representation system in this election which swept the RSP to power with a near two-third majority.&nbsp; Education Minister Sasmit Pokharel, a first-time MP elected from Kathmandu-5, served as an aide to Balendra Shah when he was mayor of Kathmandu and a was member of the KMC City Planning Commission.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_5ed794d7bf0cac2844277521810225c4355746b9c3f7369f70cacc878c94641f.jpg" data-media-id="editor_5" data-image-id="20260327090324_5ed794d7bf0cac2844277521810225c4355746b9c3f7369f70cacc878c94641f" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>  Biraj Bhakta Shrestha is Energy Minister, and also served as the Minister for Youth and Sports in the Dahal-led coalition government in 2024. Before joining RSP, Shrestha was elected to the Bagmati Provincial Assembly in the 2017 elections representing the r<a href="https://nepalitimes.com/here-now/rsp-s-activist-dna">eformist Bibeksheel Sajha Party</a>. He will immediately face the challenge of addressing the <a href="https://nepalitimes.com/news/rough-road-ahead-for-new-nepal-rulers">impact of the West Asia war,</a> including rising petroleum prices and a shortage of cooking gas. Sita Badi, who was elected through the PR system, is Minister for Women, Children and Senior Citizens. She was born and brought up in the underserved and marginalised Badi community in Surkhet and has been advocating for the rights and welfare of women, children, and minority communities. Other ministers include RSP spokesperson Pratibha Rawal as Minister for Federal Affairs and General Administration as well as Land Management, and Gita Chaudhary as Minister for Agriculture, Sunil Lamsal is Physical Infrastrucutre, Transport, and Urban Development Minister, Khadka Raj (Ganesh) Paudel as Tourism and Civil Aviation Minister. Dipak Sah is the Labour and Employment Minister, and Bikram Timilsina is Communication Minister.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_b67c2d199d4897031583a5b7ec7ce43e88771167696e6161665eeb5fca25d3ed.jpg" data-media-id="editor_8" data-image-id="20260327090324_b67c2d199d4897031583a5b7ec7ce43e88771167696e6161665eeb5fca25d3ed" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>  Meanwhile, RSP vice-chair DP Aryal, who many thought would be home minister because of his proximity with Rabi Lamichhane has been proposed as Speaker of the House.&nbsp; Aryal previously served two brief stints as the Minister of Labour when RSP was part of the RSP’s coalition governments in 2023 and 2024. As minister Aryal came <a href="https://nepalitimes.com/editorial/skeletons-in-the-cabinet-k5x6py1v">under scrutiny </a>for his involvement in an employment agency that was investigated for illegal acquisition of wealth in 2020. If appointed House Speaker, Aryal will be expected to play a neutral and non-partisan role in Parliamentary affairs. &nbsp; With the full Cabinet announced on Friday, Prime Minister Shah and his team now have their work cut out for them. &nbsp;The government’s first priority will be ensuring the safety and long-term security of the almost two million <a href="https://nepalitimes.com/here-now/migrant-workers-in-wartime">Nepalis living and working in the Gulf</a> amid the ongoing conflict in the region, and taking steps to cushion Nepal’s economy from the Israel-US war on Iran. The new leaders will also be tasked with implementing the findings of the Karki Commission report on the September violence that paved the way for the election and the rise of the RSP. &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_69b36bc62737e44ade4080be36688f9c2f92201356e1df2072cef8ecc6a9be5d.jpg" data-media-id="editor_11" data-image-id="20260327090324_69b36bc62737e44ade4080be36688f9c2f92201356e1df2072cef8ecc6a9be5d" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> <figcaption>Snapshots from PM Balen Shah's swearing-in ceremony</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_69b36bc62737e44ade4080be36688f9c2f92201356e1df2072cef8ecc6a9be5d.jpg" data-media-id="editor_12" data-image-id="20260327090324_69b36bc62737e44ade4080be36688f9c2f92201356e1df2072cef8ecc6a9be5d" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_8646d490883154f696bcdc6e2375084419f2eefaaf0ef0c7e2710aa6e2d94a8a.jpg" data-media-id="editor_13" data-image-id="20260327090324_8646d490883154f696bcdc6e2375084419f2eefaaf0ef0c7e2710aa6e2d94a8a" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_89d17d6584593be1eb23eb1d4872c3b7c600e1620f3aca48dbff4838364a1e3c.jpg" data-media-id="editor_14" data-image-id="20260327090324_89d17d6584593be1eb23eb1d4872c3b7c600e1620f3aca48dbff4838364a1e3c" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>  &nbsp;Full list of ministers: Prime Minsiter: Balendra Shah Home Minister: Sudan Gurung Finance Minister: Swarnim Wagle Foreign Affairs Minister: Shishir Khanal Law, Justice and Parliamentary Affairs Ministry: Sobita Gautam Energy, Water and Irrigation Minister: Biraj Bhakta Shrestha Education Minister: Sasmit Pokharel Physical Infrastrucutre, Transport, and Urban Development Minister: Sunil Lamsal Communication and Information Ministry: Bikram Timilsina General Administration Minister: Pratibha Rawal Women, Children and Senior Citizens Minister: Sita Badi Health and Population Minister: Nisha Mehta Agriculture Minister: Gita Chaudhary Culture, Tourism and Civil Aviation Minister: Khadka Raj (Ganesh) Paudel&nbsp; Labour Minister: Dipak Sah

Nepal swears in new Cabinet

On Friday, Balendra Shah is taking his oath of office as Nepal's prime minister in a capital city of which he was a mayor till six months ago.
At 35, he will be among Nepal’s youngest prime ministers. His reticence and reclusiveness have reinforced his brand as a doer rather than a talker. This was a persona he cultivated as mayor of someone who cleaned up the city by managing garbage. But he also chased off sidewalk vendors in an effort to ‘beautify’ the city.&nbsp;
After being elected, Shah did not attend RSP events in official capacity, and he was absent at an MP orientation last week.&nbsp;
His refusal to engage with the press, and even stopping to post on social media, have added to the air of reclusiveness. But as prime minister, he may have to communicate more even if it just to stop conspiracy theories and intrigue.&nbsp;
The people he will now represent would like to know, and have a right to know, what he is up to. Otherwise the feeling will grow that Nepal is entering uncharted territory. Governance, the economy and investment do not like uncertainty.
Political scientist Pyakuryal notes that calling Balen a 'man of few words' may serve as a useful epithet if he governs with quiet efficiency rather than fanfare. "But as Prime Minister, he must engage the nation’s will, not simply manage from above," she says.
She adds: "The real test lies in his choice of style: will he lead exclusively, keeping decisions close, or inclusively, opening space for dialogue and shared ownership of governance?"
Nepal's newly-elected lawmakers were sworn in on Thursday. And once sworn in as PM on Friday, Balendra Shah is set to appoint a ‘minimalist’ Cabinet. Although the Constitution caps the size of the Council of Ministers at 25, the party has decided to stick to maximum 18 and not split ministries to accommodate loyalists as was done in the past.&nbsp;
&nbsp;"The Cabinet must support the leadership of the Prime Minister while ensuring accountability to the Parliament,” notes political scientist Sucheta Pyakuryal. “But the questions that come to mind are: will the RSP MPs readily submit to Balen’s leadership and is Balen’s absence from the party’s official events an unwillingness or hesitation to submit to the party?”
Prime Minister Sushila Karki and her ministers ended their interim tenures this week, and she was lauded for upholding her commitment to hold a free, fair and peaceful election. But her image was tarnished for her reluctance to release the investigation report on the September violence, as well as recommending her Home Minister Om Prakash Aryal for a National Assembly seat, and her personal secretary to the National Trust for Nature Conservation. President Ram Chandra Poudel has put Aryal’s nomination on hold. &nbsp;
The Investigation Commission report leaked on Wednesday said the state failed to stop the firing on protestors by Police on 8 September and blamed the Army for not preventing the arson next day. It recommended the prosecution of prime minister KP Oli, home minister Ramesh Lekhak, and Police chief Chandra Kuber Khapung.
Notable names said to be in consideration for the Cabinet include many who are experts in their fields, and RSP wants a young lawmaker as Speaker. The new government will plunge headlong into the economic fallout of the West Asia war.
RSP, with its near two-third majority, does not have to placate any coalition partner, so Nepal is at long last expected to have a stable government after 35 years. Despite hopes that there will not be the usual horse-trading this time, there is tension between supporters of RSP chair Rabi Lamichhane and Balendra Shah. The two have been negotiating in hotel rooms for Cabinet posts for loyalists.&nbsp;
Shah’s larger-than-life online persona and nationwide appeal delivered the RSP its overwhelming electoral victory this month, and this makes the party’s core leadership beholden to him. To what extent is Shah willing to meet Lamichhane’s demands is the critical question, and we will know the answer by this weekend.
Says Pyakuryal: “Because this election showcased personality politics rather than the regular party politics, the dangers of ego-clashes, power-tussles and intraparty realpolitik become very real and this kind of equation can greatly hamper the spirit of democracy, representation and collective good."

<figure>
 <video controls src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327020320_f91bd3e51c1dd198b099a24daac8c52384b408174506e7f5a0ced1db76773824.mp4" alt="" width="100%" height="100%"></video>
 <figcaption>Animation: ANUP TAMU</figcaption>
</figure>

Ball in Balen’s court

Nepalis impatient for a government that delivers are hopeful about a new youth-leadership that takes office this weekend. But the leaders will face a major challenge from Day 1.
Even at the best of times, it would have been difficult for prime minister Balendra Shah and his RSP ministers to solve Nepal’s problems, but fallout from the West Asia war will make that task much harder.
All the mainstays of Nepal’s economy are already being impacted: overseas remittances, its petroleum import bill, and tourism has suffered a direct hit right at the start of spring arrivals.
Nepal is somewhat cushioned because India has managed petroleum supply disruptions following US desanctioning of Russian crude to its refineries. Diesel, petrol, aviation fuel and LPG make up 26% of Nepal’s imports, all of it through India.
Nepal Oil Corporation announced another hike in petroleum products this week. LPG cylinders are being sold half-full, and there is talk of an odd-even ban on ICE vehicles. 
Despite all this, Nepalis seem to have a false sense of complacency, amidst high expectations of the ability of the new government to solve the country’s polycrises. 
Perhaps Nepalis had a rehearsal of a fuel shortage during the 2015 Blockade, when they improvised. The country is also better placed this time to cushion the fuel shock because of the increase in EVs and more electrification of household cooking.
“The increase in electric vehicles provides some relief, but it is not enough,” energy economist Dipak Gyawali told Nepali Times earlier this month. “Most critical services still run on diesel, and they cannot be replaced overnight.” 
Nepal is second only to Norway in global EV adoption in both private vehicles as well as intercity microbus services. But if the war escalates fuel shortages would affect the general population. Almost 80% of registered private vehicles in Nepal are two-wheelers. 
Aviation is suffering a double whammy: an increase in the price of aviation turbine fuel worldwide, and the cancellation of flights through Doha, Dubai and Kuwait — the main entry point for tourists to Nepal.
Nepal was just reaching pre-Covid arrival figures in February when the conflict started. But March has seen only 64,000 international visitors so far — half the February figure. 
PLANNING AHEAD
Travel trade specialist Raj Gyawali posted on LinkedIn: ‘Chinese arrivals were up 30.6% in a single month. If Nepal pivots hard toward Chinese tourism right now — incentives, fast-track visas, trade missions to operators — the autumn season might be salvageable.’
‘But the window to act is weeks, not months,’ he adds. But so far, it seems like it is business as usual as the country waits for a new government to take charge. 
There is the even larger challenge of repatriating and reintegrating some of the 2 million Nepalis in the West Asia war zone who may want to return for safety, or because they are laid off. 
Half the $11 billion Nepal officially received last year came from West Asia, and it increased by 40% just in the last seven months. A sharp drop in remittances due to the collapse of Gulf economies will have a multiplier impact on Nepal’s economy, adding to the vicious cycle of joblessness and outmigration. 
The RSP manifesto pledged to create 1.2 million jobs across IT, construction, tourism, agriculture, manufacturing and service sectors in the next five years so Nepalis would not have to migrate. That would have been a challenge even without a war in the Gulf.
Other Asian countries that have migrant workers in West Asia have already been hit hard. The Philippines declared a national energy emergency this week and government offices moved to a four-day work week. 
Burma has imposed odd-even rules for private vehicles, Vietnam has reduced domestic flights, and people have been encouraged to work from home.

New government heads into a polycrisis

Sometimes, we need to take a step back to realise what a tectonic movement Nepali politics witnessed this month.
In a region and world ruled by elected authoritarians, Nepalis &nbsp;went to the ballot box freely to express a collective will for change.
These faces in this group photo of the RSP’s 180 freshly-minted MPs at the ballroom of the Royal Tulip Hotel on Wednesday is symbolic of what Nepal has come through.&nbsp;
The ship of state righted itself after the September Storm, installing an interim government that held an election within six months in which voters banished obsolete politicians and their parties into oblivion.
Nepalis, fed up with the inept kakistocracy of the past three decades, took the country into a post-ideological phase — replacing Marxists, Maoists and monarchists &nbsp;with a belief in a new governing culture that rewards delivery and accountability. And they have trusted the RSP to carry it through.
Nepal’s history has never been linear, it jerks ahead in lurches. The polity also tends to take one step forward and two steps back, so the public’s great expectations is tempered by a sense of cautious optimism and guarded pessimism.
This could be the great leap forward that Nepalis have waited for and deserve, but it could also be a Gramscian interregnum in which the old is dead and the new is not yet born. We will have to wait to see whether this transitional period will also see ‘morbid symptoms’.
As disruptor-in-chief, it was the Balendra Shah ‘wave’ or ‘craze’ that propelled the RSP to power. The former Kathmandu mayor needed a party platform, and the RSP’s tainted leader Rabi Lamichhane required a booster. Nepal's voters were looking for a saviour.
Personality-wise Shah and Lamichhane are poles apart: one is Type B and the other Type A. One is enigmatic, the other phlegmatic. But yin and yang do also tend to complement each other.&nbsp;
Kathmandu’s chattering class is already making self-fulfilling prophecies about the two falling out, and are fishing for hints that they already have. Shah’s absence from the RSP’s orientation this week was taken as a clue.&nbsp;
Closing the two-day tutorial on Wednesday, Lamichhane delivered a fiery 30-minute speech that laid out the RSP’s main agenda: to function differently from the old parties, serve the people, avoid middlemen, become true lawmakers without taking the law into their own hands.&nbsp;
“The old political parties contributed to history, we will build the future with a new political contract with citizens,” he said, trying to rise over past controversies and his abrasive rhetoric to sound statesmanlike.&nbsp;
GIVE AND TAKE
Lamichhane is said to be in touch with the reclusive Shah to announce a compact cabinet next week. Its composition will be an indication of how much give-and-take there was, and whether the criteria for selecting ministers is competence or loyalty.
Will RSP ministers behave like rulers or service providers? The new government will dive right into the economic fallout of the West Asia war with soaring fuel &nbsp;prices, inflation and uncertainty about remittance inflows.
On Thursday, Gagan Thapa resigned as NC chair, taking moral responsibility for the party’s election loss. The UML’s unrepentant K P Oli does not share the same sentiment about who is responsible for his own party’s historic downfall.&nbsp;
NCP chair Pushpa Kamal Dahal, who was luckier than his cross-party cohort, is now a comparative relic in a Parliament largely comprised of freshmen and sophomore lawmakers.
But the NC, UML and NCP still control provincial and most municipal governments. The old parties could try to make things difficult for the RSP at the centre, but it is also an opportunity for them to clean up their act ahead of local elections next year.&nbsp;
Another test for the RSP will be dealing with a heavily-politicised klepto-bureaucracy which has to frontend its policy decisions. &nbsp;

Kunda Dixit

People’s power

Samsung Nepal has opened pre-orders for the Galaxy A57 5G and A37 5G. Both phones run Samsung’s One UI 8.5, featuring AI capabilities like voice transcription, Circle to Search, and photo editing. They feature a 50MP triple-camera system, a Super AMOLED display, and six years of OS and security updates.

Galaxy A series

The war in West Asia has exposed the fragility of the economic architecture Nepal has built on over two generations. If the conflict continues, growth across developing Asia will slow and prices will rise. For Nepal, this will be felt through higher living costs, weaker economic activity, and growing uncertainty for the millions of families who depend on remittances.&nbsp; Nepal now needs to structurally transform from exporting labour to investing in domestic job creation. &nbsp; The country's current path toward a knowledge economy has a blind spot. A <a href="https://iids.org.np/wp-content/uploads/2025/02/unleashing.pdf" target="_blank">report</a> by the Institute for Integrated Development Studies (IIDS) in Kathmandu shows that IT export companies alone generated 7,228 jobs and income for 66,509 freelancers.&nbsp; We are building digital labour export, not an economy that accumulates institutional knowledge. The Nepali Upwork developer and a migrant construction worker in the Gulf are engaged in the same economic activity, but with different tools. Nepal’s reliance on a <a href="https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?locations=NP" target="_blank">remittance-driven economy,</a> means the country has failed to create enough <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">quality jobs</a> at home. For millions of young people, leaving the country is not a choice but a necessity to survive and support families back home. <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">Remittances</a> have no doubt helped reduce poverty. Thirty years ago, 55% of Nepal’s population lived on less than $2.15 a day, now it is 20% after the absolute poverty line was revised upwards. This progress has come at a cost — &nbsp;an economy that depends more on exporting workers than creating opportunities at home. This development reflects a deeper political failure to create meaningful jobs within the country. Since the democratic transition in 1991, Nepal’s leadership has largely recycled the same faces, with limited progress on job creation or industrial growth.&nbsp; Nepal cannot build a <a href="https://nipore.org/accelerating-nepals-startups/" target="_blank">knowledge economy</a> while its most ambitious people are outbound to Doha and Tokyo. We are also not just losing ‘labour’. We are losing the entrepreneurial risk tolerance of our youth.&nbsp; If the most ambitious 25-year-olds are abroad, who is left to support innovation and entrepreneurship? The same people who are working tirelessly abroad, are our biggest asset for development. Their work ethic and the know-how inurban renewal could well fit into the new RSP government’s mandate of 7% annual growth.&nbsp; The <a href="https://english.biznessnews.com/posts/-nepal%E2%80%99s-it-exports-cross-1-billion-" target="_blank">$1B milestone</a> of IT exports is a celebratory moment for Nepal. However, that cannot lead to a pathway to a $100 billion economy without innovation ecosystems that go beyond individual labour export. Companies like SecurityPal and industry associations such as NASIT have made significant efforts in building such an environment, recently championed by private sector leaders as a &nbsp;<a href="https://www.securitypalhq.com/blog/silicon-peaks" target="_blank">Silicon Peaks</a> model that emphasises a home growth tech cluster. The need to accelerate this transition is even more urgent with the escalating conflict in West Asia. &nbsp;The recent International Labour Organisation (ILO) <a href="https://www.ilo.org/sites/default/files/2026-03/Nepal%20LDC%20Graduation%20Employment%20Impacts%20Report.pdf" target="_blank">report</a> shows that LDC graduation is expected to adversely impact manufacturing with losses of $1 billion by 2030.&nbsp; If manufacturing takes such a large hit from losing trade preferences, then Nepal’s services and IT sectors need to structurally transform and shift from exporting individual talent to building firms. &nbsp; A generation’s frustration has finally forced a shift in Nepal’s political structure, handing the new government a clear mandate to fix failures. But the question still persists: what prevents Nepal from achieving sustained, productivity-driven growth? &nbsp;&nbsp; RSP is in the right place at the right time to put Nepal's economy on a firm footing. At the heart of Nepal’s economic underperformance lies a major development binding constraint: low returns to investment on projects.&nbsp; The government invests like a high-growth economy, with gross capital formation at around <a href="https://data.worldbank.org/indicator/NE.GDI.FTOT.ZS?locations=NP" target="_blank">25–30 percent of GDP</a>. Yet economic growth remains modest. The problem is not how much the country invests, but how little it gets in return. One way to see this is by looking at how much investment is required to generate growth.&nbsp; Nepal needs large amounts of capital to produce relatively small gains in output (graph, below). For instance, in 2024, the ICOR was 8.29, this suggests that Nepal had to invest more than 8 units of capital to produce a one unit of additional economic output.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811.jpg" data-media-id="editor_9" data-image-id="20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811" data-rendition-name="original" width="1827" height="925" loading="lazy" alt="Economy graph"> <figcaption>Source: Author's calculation based on a Growth Diagnostic simulation</figcaption> </figure>  This reflects a deeper issue in how investment is allocated and executed. Capital is often locked in low-productivity sectors or diluted by delays, inefficiencies, and policy uncertainty.&nbsp; As a result, even high levels of investment fail to translate into sustained growth. Until investment shifts toward productive, firm-building activities, higher spending alone will not deliver results. &nbsp; To reverse this, the government must focus on raising the returns to investment by enabling firms to grow and compete. This requires a shift from managing scarcity to creating an environment where capital can generate consistent and predictable returns. A central priority should be given to attracting and retaining both domestic and foreign private investment. Investors do not just respond to direct incentives, but also to policy stability in the country. Nepal’s economy cannot sustain high growth if its human capital continues to leave the country.&nbsp; The goal should not simply be to create jobs, but to build companies that scale, innovate, and compete beyond Nepal. This requires supporting sectors with strong productivity potential and ensuring that firms can expand without being constrained by infrastructure gaps or regulatory friction. Finally, the state must improve the quality of its own investment. Public spending should focus on lowering the cost of doing business through reliable electricity, efficient logistics, and digital infrastructure.&nbsp; The GenZ movement took two days to bring change. The economic transformation of Nepal might take a generation. The RSP can accelerate this transition, but only if it focuses on building a better investment climate for business and not just feeding the global labour pool. Kailash Raj Pandey is an MPA/ID and MBA candidate at Harvard Kennedy School and MIT Sloan School of Management and a fellow at MIT Kuo Sharper Center for Innovation and Prosperity.&nbsp; Siddhartha Raymajhí is a policy researcher based in Kathmandu.

Nepal’s new government springs into action

RSP dos and don’ts

Fuel price shock hits Nepal aviation

Protecting nature outside national parks

Michael Thompson, 89

New Nepal government signals action

Nepal swears in new Cabinet

Ball in Balen’s court

New government heads into a polycrisis

People’s power

Galaxy A series

Creating a firm future for Nepal

Know your Ministers

Nepal’s new government springs into action