Nepal's Political Crisis: The Battle Between Monarchy and Democracy

1.

What is the Political history of Nepal?

• Nepal's political history is marked by the rise and fall of monarchies, dynasties, and significant movements that shaped the country's governance structure. The ousting of King Gyanendra Shah is a significant event in Nepal’s transition from a monarchy to a republic. Below is a detailed elaboration of Nepal's political history, including the events that led to Gyanendra Shah’s ouster.

Events	Analysis
Unification and the Shah Dynasty (1768)	The political history of Nepal begins with the unification of various small kingdoms and principalities in the 18th century by Prithvi Narayan Shah, the King of Gorkha. In 1768, after several decades of conflict, Prithvi Narayan Shah succeeded in unifying the fragmented territories, creating the Kingdom of Nepal. This marked the beginning of the Shah Dynasty, which would rule Nepal for over two centuries.
Absolute Monarchy (1768–1846)	Following the unification, Nepal was ruled as an absolute monarchy, where the Shah kings held complete control over the political, military, and economic spheres. The monarchy was central to the governance of the kingdom, and the kings wielded immense power, often without any institutionalized checks or balances. During this period, Nepal expanded its territories, but it also faced internal and external challenges, including conflicts with the British in India, culminating in the Sugauli Treaty of 1815, which ceded parts of Nepal's territory to the British.
Rana Dynasty Rule (1846–1951)	From 1846, the Rana Dynasty took control of Nepal's politics through a palace coup. Although the Shah kings remained as nominal rulers, the Ranas dominated the political landscape as hereditary prime ministers. The Rana family centralized power in their hands and effectively reduced the Shah monarchs to symbolic figures. The Rana period is often criticized for being autocratic, feudal, and oppressive, and while the country experienced internal stability, the Rana oligarchy restricted political freedoms and the development of a more democratic political culture.
End of the Rana Dynasty and the Restoration of the Shah Monarchy (1951)	In 1951, King Tribhuvan (son of King Prithvi Narayan Shah) was able to escape to India with the support of Indian authorities, which eventually led to the overthrow of the Rana regime. The Rana dynasty's rule came to an end, and the Shah monarch was restored to power. However, King Tribhuvan only ruled with considerable influence from India, which played a major role in shaping Nepal’s political landscape. In 1959, the first general elections were held, leading to the formation of a parliamentary democracy, though it was short-lived.
The Rise of the Panchayat System (1960–1990)	In 1960, King Mahendra, Tribhuvan’s son, dissolved the first democratically elected government, citing instability and the inability to handle national crises. He imposed a partyless system called Panchayat in 1961. Under this system, King Mahendra held absolute power, sidelining political parties and dismantling the parliamentary system. The monarchy regained significant control over governance, with the king appointing officials and making decisions without popular consultation. The Panchayat system lasted for three decades and was marked by repression of political freedoms, particularly against political parties and leaders who advocated for a more democratic system.
The Jana Andolan and Transition to Constitutional Monarchy (1990)	The Jana Andolan (People's Movement) of 1990 marked a turning point in Nepal’s political history. After decades of autocratic rule under the Panchayat system, widespread protests erupted across the country, driven by demands for democracy and greater political freedom. The movement was fueled by dissatisfaction with the absolute monarchy, widespread poverty, and the lack of democratic representation. In response to the movement and growing pressure, King Birendra (Mahendra’s son) eventually agreed to adopt a new constitution and restore a multi-party democracy. This led to the Panchayat system’s end and the establishment of a constitutional monarchy. Nepal’s first multi-party parliamentary elections were held in 1991, and the country moved towards a system where the monarchy retained a ceremonial role while political power shifted to elected representatives.
The Outbreak of Civil War and the King’s Return to Absolute Power (2001–2005)	Despite the restoration of democracy in 1990, political instability continued. The Maoist insurgency began in the mid-1990s, leading to a decade-long civil war. The Communist Party of Nepal (Maoist) sought to overthrow the monarchy and establish a people’s republic. In 2001, a tragic event occurred when King Birendra was assassinated in what is still a highly debated incident, often referred to as the palace massacre. Birendra’s son, Gyanendra Shah, was crowned king in his place. The civil war intensified, and the monarchy lost much of its popular support. In 2005, in response to increasing political instability, Gyanendra dismissed the government and took absolute power by assuming direct control over the country.
The People’s Movement of 2006 (Jana Andolan II)	Gyanendra’s move to seize absolute power in 2005 sparked the Jana Andolan II, a second wave of pro-democracy protests. The movement, led by political parties, civil society, and the Maoists, called for the restoration of democracy and an end to the monarchy. The protests led to Gyanendra’s forced abdication of power. In April 2006, after several weeks of mass protests and strikes, Gyanendra was forced to restore the parliament and negotiate with political parties.
The Abolition of the Monarchy (2008)	After the Jana Andolan II, political dialogue between the monarchy, political parties, and the Maoists resulted in the abolition of the monarchy in 2008. Nepal officially became a federal democratic republic, marking the end of over two centuries of monarchical rule. On May 28, 2008, Nepal’s Constituent Assembly voted to abolish the monarchy, declaring Nepal a republic. King Gyanendra, who had been the last monarch, was ousted from the throne, and he left the royal palace in Kathmandu.

2.

What is the difference between Monarchy and Democracy?

3.

Enlist various monarchical and democratic countries in the world?

4.

What is the Current Political system of Nepal?

• Nepal currently is a federal democratic republic with a multi-party political system.
• The country is governed by a parliamentary democracy, where the President is the ceremonial head of state, and the Prime Minister, as the head of government, holds executive power.
• Nepal has a bicameral parliament consisting of the House of Representatives and the National Assembly.
• The judiciary is independent, and the political system is guided by the Constitution of Nepal, which was adopted in 2015, establishing a framework for federalism, secularism, and democracy.
• Nepal follows proportional representation (PR).
• The other electoral system is the first-past-the-post (FPTP), under which whoever wins more votes gets elected, to elect the Federal Parliament and Provincial Assemblies.
• In Nepal’s 275-member House of Representatives, 165 members are elected under FPTP and the remaining 110 under the PR system.
• Experts believe the tendency to blame others for political instability stems from successive governments’ quest for power.
• Nepal has not seen any government complete its full term ever since the restoration of democracy in 1990.

5.

What is Nepal's current political situation?

• KP Oli, the leader of the Communist Party of Nepal (Unified Marxist-Leninist), or CPN (UML) is leading the country’s government for the fourth time since 2015.
• He replaced former Maoist guerrilla “Lider Maximo" Pushpa Kamal Dahal, who was at the helm since 2009.
• Oli and the Nepali Congress party’s president Sher Bahadur Deuba, 78, will rotate in holding the prime minister’s post until the next general election in 2027.
• Recently, after the so-called support for Gyanendra Shah increased in the last few weeks, PM Oli challenged the former king to return to mainstream politics.

6.

What are the reasons for the recent Nepal protest?

• People in Nepal have grown frustrated with the republic, saying it has failed to bring about political stability and blaming it for a struggling economy and widespread corruption.

Reasons	Analysis
Political Instability	Political instability in Nepal has been a recurring issue due to a variety of factors, which have hindered the country’s development and governance. Nepal has seen numerous short-lived coalition governments since the end of the monarchy, with frequent changes in leadership. One of the major sources of political instability was the drafting of Nepal's new constitution, which was promulgated in 2015 after a long process of negotiation. The constitution has faced criticism from various groups, including the Madhesi community, indigenous groups, and opposition parties. Disputes over issues like federal boundaries, representation, and language rights have contributed to ongoing instability. Nepal has not seen any government complete its full term ever since the restoration of democracy in 1990. It witnessed 14 governments since the abolition of the monarchy, hampering economic growth and discouraging investment.
Corruption	Adding to public anger in 2023 were two big corruption scandals in which major political parties were allegedly involved. In the fake refugee scandal and the Lalita Niwas land grab, top politicians and scores of high-level government officials were arrested despite parties attempting to intervene in order to protect their officials. Nepal ranked 110th in the Corruption Perception index in 2023 and there are reports that with the adaptation of federal structures, local bodies too are reporting increased corruption.
Economic Challenges	Nepal is among the poorest and least developed countries in the world, with a per capita income of $680 in 2015. The mainstay of the economy is agriculture, providing a livelihood for more than 70% of the population and accounting for 42% of GDP. In 2020, the economy contracted by 2.1% due to the COVID-19 pandemic, which severely affected key sectors like tourism and remittances. In 2023, Nepal’s GDP per capita is around $1,400 USD (compared to the world average of around $12,000). Growing economic woes are causing anger among people, providing a breeding ground for regressive forces that aim to overturn the system.
Unemployment	Nepal’s economic environment is marked by slow growth, high unemployment and widespread underemployment. The scarcity of job opportunities perpetuates a cycle of poverty and restricts economic mobility. Nepal faces a severe unemployment crisis, leading many young workers to migrate abroad for better opportunities. In recent years, the youth unemployment rate reflecting the percentage of individuals aged 15–24 who are jobless but actively seeking employment has been a critical metric of the country’s economic challenges.

7.

Why does Nepal want the King back?

• Many in Nepal have grown frustrated with the republic, arguing that it has failed to bring about political stability and is to blame for the struggling economy and widespread corruption.
• As a result, there is a growing demand for a constitutional monarchy that would establish Nepal as a parliamentary democracy with a Hindu identity.
• This political shift reflects deep-seated discontent among segments of the population who feel that the current system has not delivered on its promises.
• Participants in the protest rally expressed their hope for a change in the political system to prevent the country from further deterioration.
• Many citizens believe that the abolition of the monarchy in 2008 led to increased instability, with successive governments failing to ensure governance and economic prosperity.
• Calls for the restoration of the monarchy are rooted in the belief that a Hindu state with a king could provide a stronger sense of national identity and leadership.
• Monarchists, who have launched a fresh wave of protests in recent months, have accused established political parties, including that of Prime Minister KP Sharma Oli, of being corrupt and failing to lead the country out of poverty and political chaos.
• They argue that the current republican system has led to political fragmentation, rampant corruption, and an economic downturn, forcing many Nepalese into poverty and unemployment.
• The demand for a constitutional monarchy has gained traction among various social and political groups, who see it as a way to bring back stability and reinforce Nepal’s traditional values.
• With mounting pressure from the public, it remains to be seen whether the political establishment will address these concerns or continue to face growing unrest and opposition.

8.

Why is the Nepal government suspecting India’s role in the pro-monarchy uprising?

• Nepal government suspects India's role in pro-monarchy uprising as Yogi's posters were held at Kathmandu rally.
• According to PM KP Sharma Oli’s supporters, Adityanath’s poster at the former monarch’s rally was evidence of an ‘India hand’ behind him, raising questions over the credibility of the gathering.
• Meanwhile, without naming Adityanath, Prime Minister Oli, at a programme in Kathmandu on Monday, said, “We don't use photographs of foreign leaders in our rallies.”
• Relations between Nepal's royals and the Gorakhnath Peeth, currently presided by UP CM Yogi Adityanath, run strong as the revered Peeth remains the presiding deity of the Shah dynasty of Nepal.
• The latest controversy erupted on March 30,Sunday when the supporters of erstwhile Nepal king Gyanendra Shah flashed the poster carrying the picture of UP CM Yogi Adityanath at a rally outside Kathmandu airport while welcoming King Gaynendra.
• Yogi Adityanath has been a strong proponent of reinstating Nepal's status as a Hindu nation and is idolized by many in Nepal partly due to his stand on the issue and also due to the centuries-old ties between the erstwhile monarchy of Nepal and the Gorakhsh Peeth that yogi heads.
• The Shah dynasty of Nepal, which ruled the Himalayan nation till 2006 when monarchy ended, calls itself Gorakhpanthi or the followers of Baba Gorakhnath.
• According to Dwarika Tiwari, who has been looking after the mutt's administration since 1972, Birendra once visited the Gorakhnath Temple to offer khichdi on Makar Sankranti.
• Mr.Dwarika told TOI that despite the monarchy ending in Nepal, an amount of Rs 10,000 is offered every year to the Goraksh Peeth during Makar Sankranti, and Rs 5,000 each on the king's birthday and Dussehra.
• Despite old ties that run deep, the appearance of Yogi's posters at the rally in Kathmandu has created a controversy.
• Yogi Adityanath, the then Gorakhpur MP, had visited Nepal in 2015 and addressed a huge rally of 10,000 people where he made the demand for making Nepal a Hindu rashtra.

9.

What turned the Nepal protests violent?

• The recent protest, initially meant to be a peaceful demonstration, escalated into violence following the actions of its convenor, Durga Prasai.
• According to authorities, Prasai breached security barricades while riding a bulletproof vehicle and proceeded towards Baneshwor, where the Parliament building is located.
• This act of defiance against security arrangements triggered chaos, leading to violent clashes between the protestors and law enforcement personnel.

• In response to the aggressive move, police forces attempted to contain the situation, but tensions quickly spiraled out of control.
• Protestors engaged in arson and vandalism, causing extensive damage to both public and private property.
• Reports confirm that 14 buildings were set on fire, while nine others suffered significant damage.
• Additionally, nine government vehicles were torched, and six private vehicles faced similar destruction.
• The violent demonstration also resulted in numerous casualties. According to police reports, 53 personnel from the Nepal Police, 22 from the Armed Police Force, and 35 protestors sustained injuries during the clashes.
• The agitation also took a direct turn against media establishments, as protestors targeted the Kantipur Television building and the Annapurna Media House in the Tinkune area.
• These attacks have raised concerns about the safety of journalists and press freedom amidst growing political unrest.
• As law enforcement officers sought to control the situation, several protest leaders, including the general secretary of the Rastriya Prajatantra Party, Dhawal Shumsher Rana, and central member Rabindra Mishra, were taken into custody. However, the key figure behind the violent demonstration, Durga Prasai, remains at large, according to Superintendent of Police Apil Bohara of the Kathmandu District Police Range.

• The scale of destruction and injuries resulting from the protest underscores the volatile nature of political demonstrations and the challenges in maintaining law and order.
• Authorities continue their efforts to track down Prasai and other instigators while also assessing the extent of the damage inflicted during the unrest.

10.

What is the Treaty of Peace and Friendship between India and Nepal?

• The India-Nepal Treaty of Peace and Friendship of 1950 forms the bedrock of the special relations that exist between India and Nepal.
• The treaty talks about the reciprocal treatment of Indian and Nepali citizens in the two countries, in residence, property, business and movement.

• It also establishes national treatment for both Indian and Nepalese businesses.

11.

What is the significance of India Nepal relations?

• India and Nepal share a multifaceted relationship characterized by deep-rooted historical, cultural, political, economic, and strategic ties

AREAS OF COOPERATION	SIGNIFICANCE
Historical & Cultural	The two nations share common religions (Hinduism, Buddhism), festivals (Diwali, Holi), Languages (Maithili, Bhojpuri, and Hindi). The Embassy of India in Nepal, in collaboration with Lumbini Development Trust and Lumbini Buddhist University organized the inaugural India-Nepal Cultural Festival in Lumbini on 8 December 2023. The festival showcased the rich cultural heritage and traditions of India and Nepal, with a focus on Buddhism. Kashi Tamil Sangamam-In 2023, a Nepalese delegation participated in the Kashi Tamil Sangamam in Varanasi, an event highlighting South Asian cultural unity. Proposed Ramayana Circuit-both the countries are planning to boost religious tourism by connecting key sites linked to epic like Ayodhya & Janakpur.
Economic Cooperation	India & Nepal hold strong economic ties, with India being Nepal's largest trade and investment partner significantly contributing to both Nepali imports and exports and also providing transit for almost the entire third country trade of Nepal. Recently India-Nepal Inter-Governmental Committee meeting on trade transit and cooperation to combat unauthorised trade concluded in Kathmandu, (January,2025). Indian firms are among the largest investors in Nepal, accounting for 33.5% of the total FDI stock in Nepal. Revised treaty of transit,2023 that would provide Nepal access to inland waterways of India Nepal-india Joint Economic Council (JEC) 1994-established to promote trade and joint ventures.
Defence Cooperation	India and Nepal have long standing and extensive mutually beneficial cooperation in the field of defence and security. Indian and Nepal Army has been working together on the modernization drive of the Nepali Army providing capacity building, equipment , Joint military exercises. The strong relations between the both armies are exemplified through the Gorkha Regiment. Currently around 32,000 Gurkha soldiers from Nepal are serving in the Indian Army.
Electricity Cooperation	One of the most important areas of mutually beneficial cooperation in the India-Nepal bilateral relations is the collaboration in the power sector. The Joint Vision Statement on Power Sector Cooperation issued on 2 April 2022 during the visit of Prime Minister of Nepal to India, laid out a comprehensive roadmap for bilateral cooperation in the sector. The export of electricity from Nepal to India reached around 650 MW in 2023. Nepal earned more than Rs 10 billion from electricity exports, helping to reduce the trade deficit and augment foreign exchange earnings. In 2023, a long-term power trade agreement was signed to export 10,000 megawatts of electricity from Nepal to India over 10 years.
Hydroelectricity Export and Regional Cooperation	Significant partnerships have been formed to build cross-border transmission lines. Nepal has started exporting hydroelectricity to Bangladesh under a tripartite agreement with India and Bangladesh. Nepal plans to export 40 MW of electricity to Bangladesh in 2025, with potential increases in the future.
Humanitarian Assistance	India has been a longstanding partner of Nepal during emergencies and crisis situations. Nepali nationals in conflict zones, have been evacuated along with Indian nationals under Government of India’s evacuation efforts under ‘Operation Ajay’, ‘Operation Ganga’ etc. India was also the first responder when a devastating 7.8 magnitude earthquake struck Nepal on 25 April 2015 (followed by a powerful aftershock of 7.4 magnitude on 12 May 2015). The Government of India announced a post-earthquake reconstruction package of US$ 1 billion during the International Conference on Nepal’s Reconstruction held in Kathmandu on 25 June 2015. Similarly, when the Covid-19 Pandemic hit the world, the Government of India worked overtime to ensure that the supply lines of trade between India and Nepal remained open. Nepal was one of the first countries to receive the Made in India- COVID-19 vaccine on 21 January 2021, paving the way for Nepal’s nationwide vaccination drive.
Education	India’s development partnership with Nepal also extends to the field of human resource cooperation. The Government of India provides more than 1500 scholarships each year, covering study in India as well as Nepal and encompassing courses ranging from medicine, engineering, agriculture, business, nursing, Ayurveda & other traditional medicine, music, dance etc. For Government officials and other professionals, Nepal has also been an important partner under the Indian Technical & Economic Cooperation (ITEC) program started in 1964. Since 2007 alone, more than 2300 professionals, bureaucrats and defence personnel from Nepal have undergone this capacity building programme.
Digital Financial Connectivity	Nepal and India decided to establish and enhance digital financial connectivity. Indians traveling to Nepal can now make payments through their mobile phones.
Oil pipeline
Multilateral engagements	India and Nepal are members of several multilateral forums. These include BBIN Corridor (Bangladesh, Bhutan, India, and Nepal), BIMSTEC (Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation), Non-Aligned Movement, and SAARC (South Asian Association for Regional Cooperation) etc.

12.

What are the challenges in India Nepal relations?

Challenges	Analysis
Issues with Peace and Friendship Treaty	The issue of replacing the 1950 Treaty of Peace and Friendship with India according to the spirit and aspirations of the Nepalese and according to the need of the time and situation is the most critical issue in the relationship between India and Nepal. The Nepalese government argued that the treaty was signed at a time when Nepal was weak and not in a position to articulate its demands. This treaty is described not only unequally but as an attack on Nepal's sovereignty on the ground that the circumstances in which the treaty was signed have changed and therefore, there is no relevance of this treaty anymore.
Territorial Disputes	After the abrogation of article 370 in Kashmir, the Indian government issued a map showing the changed political map of Kashmir. Nepal raised objection to this new map, accusing India of portraying certain regions of Nepal as Indian territory. They claimed that the strategically important areas of Kalapani, Lipulekh and Limpiadhura were part of Nepal. In June, 2020, the parliament of Nepal voted unanimously to amend the Constitution to redraw the country's new political map. Meanwhile, in 2020, India had inaugurated a new road to Mansarovar from Kalapani region to cut short the time and distance through Lipulekh pass. The issue flamed anti-Indian sentiments in Nepal.
The Madhesi Issue	In 2015, Nepal adopted a new Constitution, replacing the interim Constitution of 2007. The provisions of the new Constitution created widespread resentment among Madhesis. Madhesis are an ethnic group, living in the central and eastern Region of Nepal. Owing to geographical contiguity, they have linguistic, religious, cultural, and matrimonial links with India. Madhesis accused that the new Constitution failed to grant them adequate representation in the Parliament. Therefore, they held a blockade along the open border with India causing disruptions in supply of food and fuel. This five-month long blockade unleashed havoc for the local populations. This further flamed anti-India sentiments as it was perceived that the blockade had the tacit support of India.
Chinese Interference	In addition to internal instability in Nepal, China is also trying to make inroads. In recent years, Nepal has been more inclined towards China. Currently, China is the largest source of FDI in Nepal. It is also developing Trans-Himalayan Economic Corridor that will connect China’s Tibet with Nepal. This will bring China closer to India. Besides, China and Nepal have signed a Memorandum of Understanding to cooperate within the BRI framework. Nepal also supports China’s inclusion in SAARC.
Political Instability	The internal politics of Nepal often determine the nature of India-Nepal relations. Often, anti-Indian sentiments are flamed for narrow political gains in Nepal. Vested interests in Nepal have managed to block India-Nepal hydro-power cooperation. Because of this, despite having around 83,000 MW hydro-electricity potential, Nepal remains a net importer of electricity. Achal Kumar Malhotra, Ambassador (retd), says, “If I were to identify one constant factor in India’s relations with its neighbouring countries, I would describe it as some sort of trust deficit.”
Security Threat	The porous and poorly guarded border between India and Nepal allows terrorist groups to exploit it for smuggling weapons, ammunition, trained members and fake currency, which poses a significant security risk to India. Open border between India and Nepal leads to illegal migration and human trafficking threatening Indian security.
Trust Deficit	The trust between India and Nepal has weakened over time due to India’s slow implementation of projects. Some Nepalese ethnic groups feel that India interferes too much in Nepal’s politics and undermines their political independence, leading to a dislike for India.

13.

What is China's factor in the Nepal protest?

• Kathmandu recently released a report showing that four districts were at risk of losing hundreds of hectares to Beijing as it expanded its road projects.
• Protesters in Nepal this week burnt the effigies of Chinese President Xi Jinping after a recent government report indicated Beijing had encroached on 36 hectares of Nepalese land, roughly the size of 26 football fields.
• According to the document released by Nepal’s Survey Department in early November, four districts sharing a border with China – Sankhuwasabha, Rasuwa, Sindhupalchowk and Humla were seen losing territories as Beijing expanded its road projects.
• According to the document released by Nepal’s Survey Department in early November, four districts sharing a border with China – Sankhuwasabha, Rasuwa, Sindhupalchowk and Humla were seen losing territories as Beijing expanded its road projects.
• The government data suggested Nepal stood to lose a further several hundred hectares of land to Beijing.

14.

Enlist views of various scholars on India-Nepal relations?

15.

What can be the possible way ahead?

• The situation in Nepal is complex, with growing dissatisfaction over the republic and calls for the restoration of the monarchy.
• Moving forward, there needs to be a multipronged approach to address various loopholes in the current political system.

What is the relevance of the topic for UPSC CSE?

For Prelims: India-Nepal Relations, India-Nepal Treaty of Peace and Friendship of 1950, Kalapani Boundary Issue, India’s Neighbourhood First Policy.

For Mains: India-Nepal Relations - Significance, Associated Challenges and Ways to Resolve the Challenges.

Some Previous Years Prelims Questions