For Prime Minister Pushpa Kamal Dahal the past week has been eventful in more ways than one. His Home Minister Rabi Lamichhane’s troubles is shaking the coalition, and there are rumours of the NC and the UML in talks. By-elections in Ilam and Bajhang are set to become a referendum on legacy parties.&nbsp;
In the midst of all this, there was the overnight state visit of the emir of Qatar which was so epic the government declared a national holiday. Qatar and Nepal signed a commerce agreement, and to sweeten the deal the emir was gifted two elephants.&nbsp;
The Qatari visit set the stage for the third Nepal Investment Summit on 28-29 April that will showcase 150 projects for potential investors, including schemes for hydropower, transport, tourism, and agriculture.
Previous investment summits in 2017 and 2019 pledged $13.5 billion and $17 billion respectively, of which not much ever materialised. This time, the investment climate is worse because of political instability, too few laws, and too much red tape. &nbsp;
“The state of Nepal’s economy, combined with bureaucratic hurdles and the challenges faced by foreign investors in land and resource acquisition, has made attracting FDI difficult,” says Pushkar Bajracharya, formerly of &nbsp;the National Planning Commission.&nbsp;
Read also: <a href="https://nepalitimes.com/opinion/comment/nepal-looks-at-alternative-investments">Nepal looks at alternative investments</a>, Siddhant Raj Pandey
The same woes from the last two investment summits persist. Nepal has had three coalition governments in the last two years, banks are flush with cash because no one is borrowing, &nbsp;and there is a mass exodus of skilled Nepalis.&nbsp;
“Lack of political stability results in policy instability,” explains economist Posh Raj Pandey. “This is why Nepal’s FDI has not lived up to commitments. Potential investors have decided that internal risk factors outweigh any business opportunities.”&nbsp;
Everyone went to sleep after the last investment summit, and there was little preparation for this hurriedly planned one. Nepal’s private sector has long urged the government to amend laws to improve the investment climate. The government did amend nine out of dozens of laws, but through ordinance on Tuesday. &nbsp;
“What kind of message are we sending to internationals when we amend laws through ordinance rather than Parliament?" asks Pandey. “Amendment will not inspire confidence unless they are put into practice, which we historically have not done.”
Read also: <a href="https://nepalitimes.com/editorial/invest-in-investment">Invest in investment</a>, Nepali Times
While some experts think ordinances speed things up, they admit most legal changes brought to address Nepal's investment environment have been ad hoc and limited to paper.
Forget foreign investors, even domestic businesses face obstacles and corruption. Nepal’s internet service providers (ISPs) and the Nepal Telecommunication Authority are on the warpath.&nbsp;
ISPs have been unable to pay Indian firms that provide &nbsp;bandwidth after the government refused to provide them with INR, citing unpaid royalties and taxes.
Such stonewalling is present in just about every sector, dissuading investors in IT, banking and the service industry. Most investors are in natural resource extraction, which has little value added.&nbsp;
Read also: <a href="https://nepalitimes.com/editorial/invest-in-investment">Invest in investment</a>, Nepali Times
This time the government is &nbsp;giving investors a shopping list that includes 18 hydropower projects and 19 transport schemes.&nbsp;
“While hydropower may create short-term jobs, efficiency-seeking investment in the manufacturing, agricultural, and other sectors will create more long-term opportunities for Nepalis, and will be in our best interest,” says Pandey. &nbsp;&nbsp;
Although the summit will have attendees from over 50 countries, most potential investors are from India and China.
“Current investment summits seem to be guided by India and China’s vested interest in Nepal rather than the market and economic possibilities here,” notes Bajracharya. However, Nepal can leverage its proximity to hitch its wagons to these two giant locomotives.&nbsp;
Adds Bajracharya “Our long-term prospects look good, because India and China are set to overtake the US as the world's biggest economies over the next few years, which will attract investors from elsewhere. Our immediate goal must be to first create a conducive investment climate. After that, investments will come.” &nbsp;
Read also: <a href="https://nepalitimes.com/opinion/killing-investment-in-nepal-in-10-easy-steps">Killing investment in Nepal in 10 easy steps</a>, Dibesh Karmacharya

Shristi Karki

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Why invest in Nepal?

"I shut down my poultry farm as the villagers did not buy fresh chicken from me,” sums up a Dalit farmer from Arghakhanchi district why he had to leave for work.&nbsp;
Most people can sell fresh meat in their villages and make a good profit but Dalits still cannot because people will not buy from them due to caste stigma. Dalits have no choice but to sell their poultry to outside suppliers for lower profits.&nbsp;
“Other hoteliers found out my caste and used it to push me out of competition. They informed my customers of my caste and discouraged them from staying at my hotel,” a Dalit hotelier shares.&nbsp;
The hotel was close to a medical school and had earned a good reputation among hospital visitors, at least until they discovered his caste.
As ‘higher’ caste customers stopped coming, he moved his hotel to the East-West highway, where customers, in a rush, do not have time to worry about the caste of the owner.&nbsp;
Read also: <a href="https://nepalitimes.com/opinion/comment/nepal-looks-at-alternative-investments">Nepal looks at alternative investments</a>, Siddhant Raj Pandey
“They will knock me out of the business if they know my caste,” says a Dalit who owns a pipe manufacturing business in Western Tarai. He has been in the business for several years. Due to fear of ostracisation from non-Dalits who dominate the industry, he has erased his caste name from all his documents and uses a non-Dalit surname.&nbsp;
These three incidents illustrate deeply rooted caste barriers blocking Dalits from entering and thriving in business even as they make up 14% of Nepal’s 29 million population.
Yet, due to Nepal’s hierarchical caste system, Dalits continue to be looked down upon as ‘untouchable’ and of ‘lower’ rank, and non-Dalits, as per caste norms, do not eat food and beverage items touched by them.&nbsp;
In a 2018 Tribhuvan University study, even seven years after anti-caste discrimination laws were passed, 34% of Hill Dalits and 28% of Madhesi Dalits reported routinely facing caste-based discrimination.&nbsp;
Caste-based barriers obstruct Dalits from freely participating and thriving in business, yielding at least three distinct types of market and non-market barriers.&nbsp;
Read also: <a href="https://nepalitimes.com/opinion/success-in-nepal-means-not-having-to-work">Success in Nepal means not having to work</a>, Anil Chitrakar
First, caste bias means ‘higher’ caste groups avoid buying goods and services from Dalits, except for menial labour. In their 2019 book Good Economics for Hard Times, Nobel laureates in economics Abhijit Banerjee and Esther Duflo show that social norms such as caste and patriarchy, and not just price, shape business decisions.&nbsp;
In Nepal’s case, ‘upper’ caste customers examine not only the price and quality of what they are buying but also the social value of goods and services.&nbsp;
Second, companies use caste norms to sideline Dalits out of competition. Development economists confirm that firms often deploy caste and ethnic discrimination to remove their competitors from the playing field.&nbsp;
Third, Nepal’s Dalits do not have easy access to resources such as land, capital, and networks that are usually a precondition to enter and thrive in business. Impoverished by decades of exclusion and discrimination, Dalits do not have collateral for loans. They face social stigma and stereotypes and do not get access to idea-and-trust-based loans.&nbsp;
Read also: <a href="https://nepalitimes.com/editorial/invest-in-investment">Invest in investment</a>, Nepali Times
As a result, they are forced to get by with low capital and higher interest rates. Dalits also do not have strong business networks, nor do they have access to the social spaces where business decisions are made. They do not have a strong community support system, which could compensate for low capital and weak policy networks.&nbsp;
These caste barriers not only block the entry of Dalits into business but also create market failures. Just like the Dalit hotelier in Bhairawa who was pushed out of the market, discriminatory practices allow only a few castes to dominate, forcing customers to buy in a market not governed by price and quality but by non-market measures. Eventually, such caste-based business practices create conditions for cartels and monopolies, blocking the free market.&nbsp;
Caste-biased business practices also yield inefficient resource allocation. Caste-based preferences in recruitment mean businesses are forced to draw from smaller talent pools, and Dalits miss out on opportunities for human development. Resources such as land and capital do not move across social groups, ultimately leading to unequal income distribution and lower economic growth.&nbsp;
Despite the challenges, Nepal is committed to ending discrimination in employment and business. In 1974, Nepal ratified the ILO Convention 111–Discrimination (Employment and Occupation) Convention, 1958. In 2002, the country enacted the Bonded Labour (Prohibition) Act, formally ending forced labour such as Kamaiya, Haliya and Haruwa-Charuwa. In 2020, Nepal Rastra Bank issued a guidance note to encourage loans to Dalits of up to one million rupees on concessional interest rates.&nbsp;
While the commitments on paper have been swift, they have not led to tangible results. In 2023, the ILO Experts’ Committee called for Nepal to implement Convention 111 to address discrimination against Dalits and to promote their access to productive resources such as land and capital.
Read Also: <a href="https://www.nepalitimes.com/banner/caste-aside">Caste Aside</a>, Nepali Times
Ahead of its upcoming graduation to middle-income country status in 2026, Nepal has prioritised private sector-led development, hoping to increase investment from domestic and international investors. The Nepal Investment Summit this weekend is designed to attract investments.&nbsp;
While these are welcome moves, Nepal should not miss the opportunity to free itself from barriers holding back the Dalit community. By unlocking Dalits from discrimination, Nepal can add to its human capital, ensure fair income distribution, increase resource allocation efficiency, and augment economic growth.&nbsp;
We need research on how caste-based discrimination has reinforced market failures. The business development capacity of Dalits needs to be enhanced by creating better access to information and business networks. Nepal’s macro and micro-economic policies should combat visible and invisible caste-based business barriers.&nbsp;
Monetary policies can grant Dalits access to non-collateralised finance at concessional interest rates, and tax exemptions can create a level playing field. Finally, there could be a policy guarantee that the government, as one of the largest buyers, purchases goods and services from Dalits.
Read also: <a href="https://nepalitimes.com/here-now/dalit-lives-must-matter">Dalit lives must matter</a>, Shristi Karki

Subhash Nepali

Putting Dalits back in business

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;

People’s power

The RSP and its prime minister are being sworn in this week after gaining an unprecedented election victory. This is a welcome change for many Nepalis who see it as a remedy to decades of coalition instability.&nbsp; Yet Nepal’s political history suggests otherwise. No majority government has ever completed its full term. This reveals a deeper structural problem: weakly institutionalised parties dominated by personalities rather than ideas. 1951: Dissatisfaction with the oppressive Rana regime among the educated elite led to the creation of political parties like the Nepali Congress (NC), Praja Parishad (later merged into the Nepali Congress), Gorkha Parishad, and the Nepal Communist Party.&nbsp; They emerged secretly, mainly in India during the height of that country’s independence. They organised a successful armed uprising against the Rana rule.&nbsp; 1959: The NC won a two-thirds supermajority in the first general election. Within a year, King Mahendra staged a coup and established the partyless absolute monarchy called the Panchayat system.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260322130332_a416ab5703287898f0566dc6d2a6b95d797ce2f4ed55bffcfae2e8edc7737c5e.jpg" data-media-id="editor_0" data-image-id="20260322130332_a416ab5703287898f0566dc6d2a6b95d797ce2f4ed55bffcfae2e8edc7737c5e" data-rendition-name="original" width="675" height="849" loading="lazy" alt="Mahendra and BP"> </figure>  1991: After the People’s Movement, the ban on parties was lifted and Nepal became a constitutional monarchy. Elections were held under a new Constitution and the NC won 110 out of 205 seats, joining the United Leftist Front which functioned as a loose coalition.&nbsp; Prime Minister Girija Prasad Koirala’s first term ended with his resignation due to infighting, particularly with Ganesh Man Singh, who accused him of <a href="https://doi.org/10.2307/2645025" target="_blank">“emerging as a dictator, downgrading democratic norms and values, and even selling out national interests.”</a> Parliament was dissolved and the NC ended up losing the ensuing elections. 1994: Following the NC’s defeat, a <a href="https://doi.org/10.2307/2645025" target="_blank">hung parliament emerged</a> with the UML forming a minority government that lasted only nine months before collapsing after a no-confidence vote, allowing a NC-led coalition to return to power.&nbsp; 1999: Voters gave the NC a second chance and the party won 111 out of 205 seats. The party was divided between supporters of Koirala and Krishna Prasad Bhattarai, who became prime minister. &nbsp;The internal NC power struggle intensified and Koirala became prime minister again only to face bribery scandals, the Maoist insurgency, and the royal massacre.&nbsp; In 2001, under growing pressure from both the public and the party, <a href="https://www.nytimes.com/2001/07/20/world/nepal-premier-resigns-caught-in-chaos-after-royal-blood-bath.html" target="_blank">Koirala was forced to resign</a> to be replaced by Sher Bahadur Deuba. The party eventually split into Koirala’s NC and Deuba’s NC (Democratic). &nbsp;In this chaos, king Gyanendra dissolved the parliament and assumed executive powers.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260322130332_e107b95de5641044f72a13fd20f417d16b9a2d1ecbae3492126ee5fd4244bd84.jpg" data-media-id="editor_4" data-image-id="20260322130332_e107b95de5641044f72a13fd20f417d16b9a2d1ecbae3492126ee5fd4244bd84" data-rendition-name="original" width="1250" height="753" loading="lazy" alt="Deuba and Girija"> </figure>  2017: This was the first election under the federal constitution. The UML and Maoists created a surprise pre-electoral alliance, breaking the Maoist coalition with the NC. The left alliance won a massive victory with the UML winning 121 seats and the Maoists 53 seats. Prime Minister K P Oli fell out with Pushpa Kamal Dahal of the Maoists. The House was dissolved, with the UML itself breaking into factions. What followed was seven shaky coalition governments in eight years.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260322130352_8b09b374d7fcb811e0a652c7f60b30eea4b9052a19ed3d768ba8ca9aaeb4dec7.jpg" data-media-id="editor_5" data-image-id="20260322130352_8b09b374d7fcb811e0a652c7f60b30eea4b9052a19ed3d768ba8ca9aaeb4dec7" data-rendition-name="original" width="667" height="1000" loading="lazy" alt="Oli and Prachanda"> </figure>  2022: The RSP was formed only four months prior to elections, but managed to become the fourth-largest party. In this month’s &nbsp;election, the RSP won a commanding parliamentary majority by presenting itself to the electorate as different from the discredited old parties.&nbsp; The RSP leadership structure is largely personality-driven and opaque. Party leader Rabi Lamichhane joined the governing coalition with the Maoists and UML securing four ministerial positions. Lamichhane became Home Minister and Deputy Prime Minister, using his swing vote to be the kingmaker party in the coalition. Lamichhane was embroiled in various scandals which he blamed on political vendetta. There was internal dissent within the party and among supporters who felt the coalition betrayed RSP’s founding ideals.&nbsp; Lamichhane <a href="https://thediplomat.com/2023/02/key-ally-quits-government-in-nepal/" target="_blank">reportedly</a> bypassed the party’s internal mechanisms, unilaterally deciding to pull out of the government without broad consultation.&nbsp; The youth-led September protests gave the RSP an opportunity to represent GenZ aspirations, and its popularity was cemented after Balendra Shah joined the party as a prime ministerial candidate.&nbsp; With its dramatic election victory, there is a question whether the &nbsp;party can separate itself from its two leaders, and have internal democracy. Or will it just be a vessel for new political elites to continue staying in power?&nbsp; ‘BALEN PARTY’ The RSP has increasingly relied on the same tactics that the NC once used in its heyday. Backed by Balendra Shah’s meteoric rise to fame, the RSP is called ‘The Balen Party’. <a href="https://nepalitimes.com/opinion/cyberia/rsp-s-pr-list-is-not-good-pr" target="_blank">RSP’s PR list</a> includes celebrities, actors, singers, pageant winners, business personalities, and athletes to maximise visibility and public appeal. Many of these soon-to-be MPs have little to no experience working in government, or together as a team. Which is perhaps why they needed a two-day orientation last week. In today’s attention economy, political currency depends on visibility. This is why the RSP’s strategy to harness Shah’s popularity was necessary to secure victory, while Shah needed a political platform for the election.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260322130348_abd1522a1f4f8ad4a0861c3916d86bd9688deafc7c44081b976378405d2b8e39.jpg" data-media-id="editor_8" data-image-id="20260322130348_abd1522a1f4f8ad4a0861c3916d86bd9688deafc7c44081b976378405d2b8e39" data-rendition-name="original" width="900" height="900" loading="lazy" alt="Balen and Rabi"> </figure>  Political parties are essential for a democracy, but when they &nbsp;revolve around one dominant leader, internal institutions become weak, and decision-making becomes centralised in the leader rather than in party committees, rules, or ideological platforms.&nbsp; This is exactly what led to the downfall of the NC and the UML. Both over the years were ridden with inter- and intra-party strife and failed the electorate. RSP must take a lesson from this and unite to institutionalise beyond its two personalities. Or it will suffer the same fate as the legacy parties. Since its inception, RSP has espoused a populist and anti-establishment agenda. The ‘new’ RSP with the Balendra brand gained massive support by being a clear ‘other’.&nbsp; The RSP can fall into the same trap as the NC and the UML by defining itself by what it is not, rather than what it is for. Beyond the external enemies they oppose, these parties often struggle to articulate what they actually stand for.&nbsp; RSP positions itself as an alternative to established parties — a pragmatic, results-oriented political force rather than one driven by traditional ideologies. However,<a href="https://www.cambridge.org/core/books/abs/theorizing-in-comparative-politics/parties-and-ideology/8386083191B53EC86A239B8852D4A6A6" target="_blank"> ideology gives a party identity and direction.</a> Without ideological grounding, RSP risks becoming a hollow vessel for power-chasing politicians who oppose each other’s every move, a story that is all too familiar.&nbsp; RSP can no longer define itself as being anti-establishment. It is now the establishment.&nbsp; While RSP might look like Congress 2.0 to many who have seen Nepal’s democratic trajectory, RSP does differ from past majority parties in both positive and negative ways.&nbsp; Times have also changed. Nepal is no longer a monarchy, literacy rates are much higher, social media has made information more accessible, and Nepalis are less forgiving, as seen by the events that transpired on 8-9 September 2025.&nbsp; The RSP has fielded more qualified candidates, and they could steer the country in the right direction. Many are experts in their fields and have had years of experience prior to joining politics. Having experts from such different backgrounds is a huge asset.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260322130352_426011e8c377bffcef6fcb4371325b36fb940eb5a8ab66d3c76ff5cf6f1943c7.jpg" data-media-id="editor_10" data-image-id="20260322130352_426011e8c377bffcef6fcb4371325b36fb940eb5a8ab66d3c76ff5cf6f1943c7" data-rendition-name="original" width="1600" height="1066" loading="lazy" alt="RSP new MPs"> </figure>  Moreover, having MPs from various other parties/fields can also prevent a cult following of hardcore loyalists within the party.&nbsp; There are members loyal to certain RSP leaders in the party, but there are also those who will not hesitate to go against their leaders if need be. The RSP has little opposition in Parliament, so its own members may have to take on a check-and-balance role. Nepal is in a much better spot institutionally compared to what it was like back in the early days of its democracy. There is a Constitution, there is no active conflict, the monarchy is no longer an existential threat to democracy, and the local and provincial governmental bodies have had the time to settle.&nbsp; This means the RSP is in a better position to work without the basic institutional hurdles that previous governments faced, but it will not be able to hide behind institutional issues if it fails to deliver.&nbsp; In the past, majority parties could easily pin the blame on an authoritarian monarchy, a Maoist conflict, a lack of consensus during the constitution-building process, or a newly implemented federal system.&nbsp; Most of these were just excuses for incompetency. Governments were formed and fell based on self-serving negotiations, but they managed to keep the parties afloat, and the citizenry was willing to give them a second, third, or even fourth chance.&nbsp; The RSP will not have this privilege. Nepal has many problems, but its governmental bodies are better institutionalised than when the NC last had a majority. A challenge for RSP now would be fixing broken institutions, not building new ones. A recurring issue during Balendra Shah’s tenure as Kathmandu’s mayor were his <a href="https://kathmandupost.com/politics/2026/01/28/can-nepal-s-viral-mayor-run-the-country" target="_blank">disputes with the bureaucracy</a> that resulted in months of unpaid salary for KMC staff, a lack of collaboration between him and Deputy Mayor Sunita Dangol, and rarely any public appearances.&nbsp; The RSP is inheriting a bureaucracy tainted by deep-seated patronage networks. Sustaining a government requires institutional collaboration and a willingness to work together, not disruption and division.&nbsp; While Nepal has seen the rise of many populist figures in its democratic history, the RSP’s victory based on Balendra Shah’s fame is new. Populism is usually harmful for a democracy because it punishes dissent, turns criticism into betrayal, and fuels hyper-nationalism, authoritarianism, and polarisation. A trend of punishing criticism is already visible on online spaces. Without an effective parliamentary opposition, the responsibility for democratic accountability will fall on the media and civil society. If the trend of intolerance to criticism deepens, Nepal risks sliding toward a majoritarian politics where popularity replaces accountability. Time and again, the Nepali people have given opportunities to parties that promise change, only to face disappointment. Nepal’s political history shows that majority governments fail not because they lack seats, but because they lack institutions.&nbsp; The electoral earthquake Nepal just witnessed could bring sweeping reforms or drown the country’s fragile democracy. If RSP hopes to succeed where others failed, it must build a party that outlives its founders. Suvexa Pradhan Tuladhar is an Early Career Policy Research Fellow at the Nepal Institute for Policy Research (NIPoRe).

Will it be different this time in Nepal?

This week, the RSP held a two-day closed orientation camp for its newly elected members of Parliament. The party has also decided to assign parliamentary and Cabinet roles to leaders only after the new MPs are sworn in on 28 March.&nbsp;
This means the new prime minister and his cabinet of 15 ministers are likely to be installed closer to the Nepali New Year, and the expectation is that it will also usher in a new era of governance and politics in Nepal.&nbsp;
Between now and then, there is much speculation regarding who will become new ministers and from which camp—Balendra Shah's or Rabi Lamichanne’s. Meanwhile, the final argument in the petition against the Rabi Lamichanne case revision is set for Thursday, with a verdict expected on the same day.
“In the past, parties did anything to form coalitions and to keep them from splitting ministries and appointing anyone they wanted to, even going against the spirit of the Constitution, but the RSP doesn’t need to partake in any such activities,” says political analyst Indra Adhikari.
Adhikari notes that governance failures in the past was often the result of coalition governments formed through political bargaining that meant the primary party often had to compromise on their agenda.&nbsp;
“But nothing is stopping the party from fulfilling its election manifesto,” she says. “And if they aren’t able to deliver, we know Nepalis are prone to protests, so another revolt is also a possibility.”
Journalist and author Mohan Mainali agrees that the everyday Parliamentary proceedings should go smoothly for new government because of their majority.&nbsp;
But there are questions as to what a near two-thirds majority allows the RSP to achieve in Parliament. Its 182 seats in the Lower House allows the party to enact and amend laws without hurdles and bypass Upper House’s request for Bill revisions. But the RSP has no presence in the National Assembly, and that means that its majority in the Lower House is not enough to amend the Constitution.&nbsp;
“The Constitution poses no obstacles for the RSP to work on improving governance, development and delivery,” says Mainali. &nbsp;“If they do show some performance, it will be easier for them to go into the next election and ask for a two-thirds majority to also amend the constitution,” he adds.
The last coalition government of the UML and Nepali Congress before the GenZ protests had been built upon a primary agreement to make amendments to the Constitution. So, depending on the nature of amendments, the RSP might find some support within the National Assembly at a time when some of the older parties, such as the Nepali Congress, have committed to supporting the new government as well as internal party reforms.
“What we need is a structural overhaul, from our laws and foreign policy to economy and security apparatus, and for this the RSP needs to champion collaboration and consultation for the sake of nation building,” says Indra Adhikari. “So it all comes down to the understanding and judgment of the RSP’s leadership. If they try to go at it alone, it will lead nowhere.”
To be sure, the provincial government could also clean up their act before the next local and provincial elections, which would help the older parties to regain some of their lost footing and rebuild trust.
As it stands, RSP lawmakers will also have to learn to work with each other. Mainali notes that the RSP not being bound by one clear ideology might lead to future problems, including the rumoured animosity between party president Rabi Lamichhane and prime minister-in-waiting Balendra Shah.
“Parties that came before the RSP had an ideology, whether they followed them or not, but the RSP is made of different kinds of people,” says Mainali. “If they are not motivated by a common goal of achieving something tangible in the next five years, it might be difficult for them to stay together.”
Adds Adhikari: “Balendra and Rabi don’t seem to be compatible. Rabi has already failed when it comes to the matters of governance, and Balendra won’t carry that burden. Additionally, there is a struggle between the two in terms of party hierarchy.”
Speaking at the closing of the two-day orientation, from which Balendra Shah was noticably absent, Rabi Lamichanne said that the RSP’s image as intolerant needs to be changed, and that the country is not heading towards totalitarianism but is in the hands of good, new people.
Regardless of the assurance, the general public has seen Balendra Shah and Lamichanne’s disposition in the last several years, and analysts are worried that their personalities and ambition might lead to an environment of increased intolerance.&nbsp;
As it stands in absence of a strong opposition, the responsibility falls on the media and the civil society to be the watchdog and play an effective check and balance role.&nbsp;
“Seeing how Balendra has ignored the media so far and Rabi has made inflammatory remarks in the past, they are probably more intolerant than the likes of Trump and Modi,” says Mainali. He notes that the party does not just have technical human resource and cyber army but a large number of dedicated supporters.&nbsp;
The media must thus continue to build trust by highlighting good work, educating the public on the importance of impartial journalism in democracy and debate any Bill purposed in Parliament, Mainali adds.&nbsp;
Says Adhikari: “The media should praise the government when they do well, motivate them, but it should also point out wrongdoings without fear, and provide recommendations to do better. Otherwise, absolute power corrupts absolutely, which we have seen happen happen in America with Trump and in India with Modi, where extremism has taken over and democracy has been curtailed.”

Balancing act

Deadly floods two years ago along the southern fringes of Kathmandu Valley killed 200 people. Climate change was blamed, but the destruction was magnified by quarries and sand mining owned by local politicians and crony contractors. Disaster mitigation and environmental risk was not a priority for any of the political parties that ran and won Nepal’s election last week. Although the RSP has a supermajority, rural municipalities that grant mining contracts are still ruled by the established parties that supply aggregates and sand to feed &nbsp;Kathmandu’s construction boom. Here in Lele Valley, residents are worried about another monsoon season that will start in June and fear more floods bringing unmanaged gravel from quarries down the Nallu River.&nbsp; The house of Sanumaya Nagarkoti, 65, and ten neighbours were washed away by the flood on the night of 28 September 2024. She and her husband petitioned the ward and municipal council to remove the crushers but no one listened. The slopes above are scarred by landslides from two years ago, and the banks of the river are strewn with bounders the size of cars that were brought down. “We live in constant fear of landslides,” says Chakra Nagarkoti, “the heavy crusher machinery and tipper trucks also constantly shake the house.”&nbsp; Google Earth images show that 24.6 hectares of mountain flanks have been excavated since 2010, and despite the disaster no lessons have been learnt.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260319090348_bdce7f17500eadac0ce0814c32c2b4190d01325976fd4d29db9985148459c0bc.jpg" data-media-id="editor_0" data-image-id="20260319090348_bdce7f17500eadac0ce0814c32c2b4190d01325976fd4d29db9985148459c0bc" data-rendition-name="original" width="1500" height="907" loading="lazy" alt="Lele"> <figcaption>Photo: GOOGLE EARTH</figcaption> </figure>  The RSP might have got a near two-thirds majority in Parliament but decision-making at the community level is controlled by politicians in cahoots with contractors.&nbsp; Along the Mahadev Khola, the Department of Mines cancelled excavation permits for crushers citing flood and landslide risk. Yet there are still 21 contractors mining stones and sand.&nbsp; Nearby Godavari Municipality also instructed operators who had not renewed permits to close down. No action was taken. One of them is Vinayak Multipurpose which delivers aggregate and stones for United Cement. Local ward chair Milan Silwal, has a stake in Vinayak and locals accuse him of taking the side of industry.&nbsp; Another slope is being gouged out near Mahadev Khola, and comparing satellite imagery from 2010 shows that the scar on the mountain is now five times bigger.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260319090348_21a8f7f7f9d6cc784c35719da737b20283f934bbe16c9de971d91bf01012499a.jpg" data-media-id="editor_1" data-image-id="20260319090348_21a8f7f7f9d6cc784c35719da737b20283f934bbe16c9de971d91bf01012499a" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Lele"> <figcaption>United Cement operating near Mahadev Khola. Photo: ARCHANA DARJI</figcaption> </figure>  Nearby stands the lone house of 55-year-old Sabina Tamang, who lives with her husband and daughter. Due to the sound of the stone-breakers, they cannot hear each other speak. “Last year, a landslide destroyed our cowshed and latrine,” she says. “Next it is going to be our home.”&nbsp; DRY SPRINGS Lele gets its water from several perennial springs which have gone dry in recent years. One of them is near where the cement factory quarries limestone. “We hardly get any water, and the little that does flow is murky and red,” says local resident Rajesh Shrestha. A parliamentary committee directive ordered excavation to stop 15 years ago after a similar flood to the one in 2024.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260319090352_af7da754299116578cc1dd91d5318ec337b69e74b0676599260b7c57c6ec6fd7.png" data-media-id="editor_2" data-image-id="20260319090352_af7da754299116578cc1dd91d5318ec337b69e74b0676599260b7c57c6ec6fd7" data-rendition-name="original" width="1440" height="494" loading="lazy" alt="Lele"> <figcaption>Lele over the years. Photo: GOOGLE EARTH</figcaption> </figure>  United Cement’s manager Hari Upreti says his company has fulfilled all requirements and has permission to mine 15 hectares of its own property and 4 hectares of government land. “We have the Department of Mines permit which is valid till 2036 and extract 1,600 tons of limestone every day,” says Upreti. “The local community knew about the mining and if there is a problem with springs going dry it is not because of us.” Environmental researcher Uttambabu Shrestha, however, says there is a direct correlation between the quarry operation and floods, landslides and dry springs.&nbsp; “Extraction should not be allowed without an environmental impact assessment, and companies must stick to set limits,” he says. Investigation of permits show that there is collusion between local officials and contractors. Godavari-6 Chair Bishnuman Maharjan has investment in two quarries and crusher companies operating along Nallu Khola. A paper trail links Maharjan also to Sagarmatha Stone Crusher and Mankamana Aggregate Industries. IMPUNITY&nbsp; Godavari Municipality published a notice in June 2024, instructing crusher companies to submit environmental reports within two weeks, covering initial examination and impact assessment. It also told them to pay local development fees and clear outstanding dues. The municipality even wrote to the Department of Mines clarifying that it had issued permits to only five out of 27 contractors. Within a month, the Department wrote to the District Administration Office (DAO) and District Police Office instructing them to stop illegal excavation, and sent a copy to the Lalitpur Division Forest Office. The DAO then wrote to Lalitpur Police naming Machindranath Multipurpose as operating illegally and should be shut down. There was no followup. The municipality then issued fines worth Rs 60 million to it and one other company for non-compliance. The companies stalled, disputing the calculations.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260319090356_6e96403d3c5be4aef4d030974d6d92029a0eb396deafd19c511978dae30dd3d2.jpg" data-media-id="editor_3" data-image-id="20260319090356_6e96403d3c5be4aef4d030974d6d92029a0eb396deafd19c511978dae30dd3d2" data-rendition-name="original" width="4000" height="2250" loading="lazy" alt="Lele"> <figcaption>Another site of extraction near Mahadev Khola in Godavari. </figcaption> </figure>  Machhindranath Multipurpose operator Kedar Timalsina Shashi denies doing anything wrong, and says the landslides were collateral damage because of the steep terrain. When contacted Godavari Municipality Deputy Mayor Muna Adhikari declined to comment. It has been 10 years since Rajesh Shrestha, Nikesh Shrestha, and others raised their voices against the environmental destruction caused by the construction mafia. An agreement was finally reached two years ago between locals and mining and transport businessmen, stipulating that stone mines must close permanently by mid-2025. The agreement also stated that check dams must be built to manage mining debris, and damaged structures must be restored to their original state. Trees were to be planted at sites where stone mines had operated. But the mines in the catchment are still in operation with 500 tipper trucks working on the site every day, transporting stones and aggregate. Local youth have continued holding sit-in street protests and at Lalitpur DAO.&nbsp; After one sit-in, the mines closed for about a month but they started back up a month later.&nbsp; Birendra Maharjan owns one of the crusher units, and says he follows all environmental protocols. He told us: “You need stones to build, and we must dig to extract stones. Some trees have to be cut, people get employment, and besides, floods and landslides happen across Nepal.” &nbsp;&nbsp; Centre for Investigative Journalism – Nepal.

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