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OPINION

The Merchants of Poverty in Nepal

Nepal’s democracy emerged from a long and arduous struggle for freedom and rights, culminating in the restoration of multiparty politics. Yet, over the years, the country has faced growing challenges in its democratic journey.
By Dr. Vidhu Prakash Kayastha

Nepal’s democracy emerged from a long and arduous struggle for freedom and rights, culminating in the restoration of multiparty politics. Yet, over the years, the country has faced growing challenges in its democratic journey. One of the most significant obstacles today is the erosion of leadership quality, which undermines the democratic framework. This issue has created an uncertain future for Nepal, as incompetent leadership, characterized by corruption, nepotism, and a lack of vision, weakens the very institutions meant to sustain the country’s democratic ideals.


The Role of Leadership in a Democracy


In any democratic society, the quality of leadership is pivotal. It is the competence, knowledge, and foresight of leaders that determine a nation’s progress. However, in Nepal, the selection of leaders often prioritizes popularity, political alliances, and familial ties over merit. As a result, ineffective leadership has become the norm, severely hampering the country’s growth and development.


Consequences of Incompetent Leadership


The consequences of this leadership failure are far-reaching. First, it leads to ineffective policies that fail to address the pressing needs of the nation. Corruption becomes rampant as leaders prioritize personal gain over public welfare, while nepotism strengthens the hold of political dynasties. Social inequalities are left unaddressed, and the deepening divide between the rich and the poor remains largely ignored. Perhaps the most damaging consequence of all is the erosion of public trust in democracy itself. As the populace loses faith in their leaders, a sense of disillusionment takes hold, stalling any meaningful change.


The Merchants of Poverty: Political Leaders, Business Tycoons, and Bureaucrats


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Poverty: A Multidimensional Problem, Nepalese Context


While the problem of poor leadership is severe, there is another significant factor that perpetuates Nepal's poverty: the collaboration between political leaders, business elites, and corrupt bureaucrats. Together, they act as "merchants of poverty," exploiting the country’s resources for personal gain while keeping most of the population trapped in economic deprivation. Despite Nepal’s vast natural resources, strategic location between two economic giants (India and China), and a hardworking populace, the developmental potential of the country remains stifled by these three influential groups.


Political Leaders: The Architects of Inequality


Political leaders in Nepal have long been associated with inefficiency and self-interest. They often fail to serve the public and instead act as opportunists, using their positions for personal gain. One of the primary ways they sustain the cycle of poverty is through control over state resources. In Nepal’s governance system, patronage networks are deeply entrenched, with politicians diverting public funds to projects that benefit their supporters, families, or business partners. This misallocation of resources not only wastes taxpayer money but also exacerbates social inequalities. Infrastructure projects such as roads, schools, and hospitals often suffer delays or are poorly executed, used instead as political bargaining chips.


Furthermore, the frequent changes in government and political instability result in short-term policies and an inability to implement long-term developmental plans. Political leaders are more focused on staying in power than addressing the structural issues that contribute to poverty. Their lack of accountability, combined with a culture of impunity, means they rarely face consequences for their actions, further entrenching their hold over the system.


Big Business Houses: Exploiting the System


While political leaders control state resources, large business houses in Nepal have become the real drivers of economic power. The country’s economic landscape is dominated by a few powerful business groups that thrive in a crony capitalist environment. These conglomerates benefit from political favoritism, while the state turns a blind eye to monopolistic practices, environmental damage, and labor exploitation.


Key sectors such as construction, tourism, and energy are largely controlled by these elite business houses, which receive preferential treatment in government contracts, land acquisition, and tax exemptions. This dominance has created an economic oligarchy that monopolizes resources, while most of the population remains trapped in low-wage, insecure jobs. These business groups stifle competition, hinder entrepreneurship, and prioritize profit over the welfare of ordinary citizens. The concentration of economic power in the hands of a few continues to widen the wealth gap, as most Nepalis struggle to make ends meet.


Bureaucracy: The Enablers of Corruption


The role of Nepal’s bureaucracy cannot be overlooked in perpetuating the cycle of poverty. Civil servants, who should be working for the people, often play a central role in enabling corruption and inefficiency. Nepali bureaucracy is notorious for its poor performance and lack of transparency. Officials, who are supposed to ensure the fair distribution of resources and implement government policies, often engage in corrupt practices such as accepting bribes, delaying processes, or making illegal gains.


Nepal’s bureaucratic system is one of the most corrupt in the region. Many civil servants misuse their power to illegally acquire land, approve substandard construction projects, or issue fraudulent permits. This creates a system of patronage, where bureaucrats work hand in hand with politicians and business tycoons to siphon off public resources. For the average Nepali citizen, this means unnecessary delays in accessing essential services such as healthcare, education, and permits. As a result, the public’s trust in government institutions has severely eroded, and many view civil servants as obstacles to progress rather than public servants.


A Vicious Cycle of Inequality


The collaboration between political leaders, big business houses, and corrupt bureaucrats forms a vicious cycle that keeps Nepal locked in poverty. Each group benefits from the other’s corruption and inefficiency, while ordinary Nepalis suffer. Politicians rely on business elites for campaign funding and survival, businesses depend on corrupt bureaucrats to secure favorable policies, and bureaucrats enrich themselves through bribes and favoritism. This closed network further entrenches inequality, ensuring that the country’s wealth remains concentrated in the hands of a few.


Breaking the Cycle: A Call to Action


Nepal’s democracy is at a crossroads. To break free from the grip of these "merchants of poverty," the country must undergo significant reforms. The political system needs to prioritize public welfare over personal gain, and leaders must be chosen for their competency and commitment to long-term development. Business practices must be regulated to ensure fair competition, and industries should contribute more to national progress. The bureaucracy must be reformed to eradicate corruption and inefficiency, with civil servants held accountable for their actions.


Ultimately, it is up to the citizens of Nepal to demand better governance and reclaim their right to a just society. Only through collective action, responsible leadership, and a commitment to reform can Nepal hope to break free from the chains of poverty and build a more prosperous future. The merchants of poverty must no longer be allowed to control the country’s destiny for their own gain.


 

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