An Analysis of Corruption in Nepal: Causes, Forms, and Solutions
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This essay provides an in-depth analysis of corruption in Nepal, a nation grappling with significant challenges. It begins by outlining the historical and political context, emphasizing the shift from monarchy to a republican form of government and the subsequent turmoil. The essay highlights Nepal's ranking on the Corruption Perception Index and delves into the root causes of corruption, including poverty, inequality, and the lack of a strong civil society. It examines the various forms of corruption, from bureaucratic inefficiencies and bribery to the involvement of political leaders and even the royal family. The essay discusses the negative impacts of corruption on the lives of ordinary Nepalese citizens. Finally, it proposes strategies to counter corruption, such as promoting transparency, accountability, and the establishment of an ombudsman. The essay underscores the importance of education, a strong civil society, and potentially direct democracy to improve governance and address the issue of corruption effectively.
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Running head: CORRUPTION IN NEPAL
CORRUPTION IN NEPAL
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CORRUPTION IN NEPAL
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1CORRUPTION IN NEPAL
Background
Like most other third world countries of the world, corruption is also very much present
in the small Himalayan nation of Nepal. Ever since the massacre of the Nepalese Royal Family,
and the swift blow of the gradual political changes in the country demarcating a shift from
monarchy to republican form of government, the nation has witnessed a lot of turmoil. Though it
is not a fallen state, it has its share of problems which cannot be ignored (Adhikari 2016). Bound
together by commonality of language, history and culture, yet the country seems to be divided in
terms of the interests each factions espouse. Nepal is one of the most corrupt nations of the
world. According to the estimate provided by Corruption Perception Index (CPI) 2014, Nepal
ranks at 126th among the 175 countries chosen for the purpose of the analysis. The latest
statistical data of 2018 shows that there has been a slight improvement in the country, as Nepal is
at the 122nd level out of 175 countries (Baniamin and Jamil 2018).
This particular essay shall be devoted to the discussion of the issue of corruption in Nepal
with particular emphasis on the forms of corruption that exists in the country and thereby put
forward some recommendations to solve the issue.
Reasons behind corruption in Nepal
As in all other third world countries, the reason behind corruption in Nepal is also quite
similar. Poverty and inequality breeds a substantial amount of corruption in the country. In
Nepal, the gap between the rich and the poor is quite substantial. Not only this wide gap between
the rich and the poor is a result of corruption, but it also ensures corruption runs unabated in the
country. In the country of limited resources, the poor are always at the mercy of the rich ones.
The rich ones ensure that they maintain their status quo by exploiting by the poor. The elites lead
Background
Like most other third world countries of the world, corruption is also very much present
in the small Himalayan nation of Nepal. Ever since the massacre of the Nepalese Royal Family,
and the swift blow of the gradual political changes in the country demarcating a shift from
monarchy to republican form of government, the nation has witnessed a lot of turmoil. Though it
is not a fallen state, it has its share of problems which cannot be ignored (Adhikari 2016). Bound
together by commonality of language, history and culture, yet the country seems to be divided in
terms of the interests each factions espouse. Nepal is one of the most corrupt nations of the
world. According to the estimate provided by Corruption Perception Index (CPI) 2014, Nepal
ranks at 126th among the 175 countries chosen for the purpose of the analysis. The latest
statistical data of 2018 shows that there has been a slight improvement in the country, as Nepal is
at the 122nd level out of 175 countries (Baniamin and Jamil 2018).
This particular essay shall be devoted to the discussion of the issue of corruption in Nepal
with particular emphasis on the forms of corruption that exists in the country and thereby put
forward some recommendations to solve the issue.
Reasons behind corruption in Nepal
As in all other third world countries, the reason behind corruption in Nepal is also quite
similar. Poverty and inequality breeds a substantial amount of corruption in the country. In
Nepal, the gap between the rich and the poor is quite substantial. Not only this wide gap between
the rich and the poor is a result of corruption, but it also ensures corruption runs unabated in the
country. In the country of limited resources, the poor are always at the mercy of the rich ones.
The rich ones ensure that they maintain their status quo by exploiting by the poor. The elites lead

2CORRUPTION IN NEPAL
a lavish life and the poor languish whose interests are not taken care of. This is how corruption
leads to poverty, in the Nepalese scenario (Devkota 2017).
Poverty on the other hand also causes corrupt practices to proceed unabated. In Nepal, the
rate of income inequality is quite high, and thus education is the prerogative of just a small
section of the population. Naturally, a society where a considerable section of the population is
lagging behind in terms of education, that society cannot be expected to have a very vibrant civil
society. In Nepal, there is an absence of a strong civil society which is enlightened and is aware
of their rights as citizens, hence has been easier for the perpetrators of corrupt practices to
continue unabated. Moreover, the concept of schools were absent until the Ranas had taken over
the affairs of the country in the year 1846, however that was the prerogative only of the elites
(Meagher 2018).
A nation where the access to the agencies of the government meant to reach out to the
people in times of their needs is restricted heavily by the bureaucratic control, corruption is an
inevitable phenomenon. Such is the scenario in Nepal, where the level of accountability of the
government to the people is quite less, and it is extremely difficult for the common people to
reach out to the government offices for getting their work done. Inordinate delays and
hopelessness are the two adjectives that can be used to exemplify the nature of bureaucratic
control that prevails in Nepal. In such a situation, it is quite convenient for the rich ones to get
their official work done against a sum of money, while the poor ones are left to languish (Regmi
et al 2017).
a lavish life and the poor languish whose interests are not taken care of. This is how corruption
leads to poverty, in the Nepalese scenario (Devkota 2017).
Poverty on the other hand also causes corrupt practices to proceed unabated. In Nepal, the
rate of income inequality is quite high, and thus education is the prerogative of just a small
section of the population. Naturally, a society where a considerable section of the population is
lagging behind in terms of education, that society cannot be expected to have a very vibrant civil
society. In Nepal, there is an absence of a strong civil society which is enlightened and is aware
of their rights as citizens, hence has been easier for the perpetrators of corrupt practices to
continue unabated. Moreover, the concept of schools were absent until the Ranas had taken over
the affairs of the country in the year 1846, however that was the prerogative only of the elites
(Meagher 2018).
A nation where the access to the agencies of the government meant to reach out to the
people in times of their needs is restricted heavily by the bureaucratic control, corruption is an
inevitable phenomenon. Such is the scenario in Nepal, where the level of accountability of the
government to the people is quite less, and it is extremely difficult for the common people to
reach out to the government offices for getting their work done. Inordinate delays and
hopelessness are the two adjectives that can be used to exemplify the nature of bureaucratic
control that prevails in Nepal. In such a situation, it is quite convenient for the rich ones to get
their official work done against a sum of money, while the poor ones are left to languish (Regmi
et al 2017).

3CORRUPTION IN NEPAL
Forms of Corruption in Nepal
Corruption has a long history in Nepal which dates back to the days when the Rana and
the Shah dynasty were engaged in rivalry with each other for gaining control over the nation.
With each successive era, it has been witnessed that a lot of time had been devoted in
consolidating and safeguarding the rule, with little done to ensure that the common people lead a
life of prosperity. The kings are viewed upon in Nepal as representatives of Lord Vishnu,
however, they have failed in guaranteeing the people of the country what their duty ought to be
as being someone analogous to God. It was only in the 21st century when King Birendra had
ascended to the throne that he had introduced constitutional monarchy in the kingdom, marking a
departure from the system of Absolute Monarchy (Adhikari and Jayasinghe 2017).
That was a repercussion to the maoist insurgency in the kingdom which had gained the
popular support among the poor people who gained nothing by the successive dynastic rules in
the country. However the maoist insurgency being a relief for the people of the country had also
belied the promises it had made, of redeeming people from the evils of the kingly rue and shall
be ensuring fair distribution of resources in the country. The members holding influential
positions in the maoist faction often tended to strike fear in the minds of the people to achieve
their political aims of being powerful. The maoists snatching young males from their family to
train them into being soldiers, extorting money unjustifiably from people and violation of the
modesty of women are some of the unethical activities indulged by them. The leaders lead a
lavish life while the poor folks languish in poverty (Manandhar 2015).
Corruption in Nepal exerts a negative impact on the lives of the common people of the
country who are rendered helpless. On this note, the issue of royal massacre has to be invoked in
order to show that even the ones who holds influential position in deciding the state of affairs of
Forms of Corruption in Nepal
Corruption has a long history in Nepal which dates back to the days when the Rana and
the Shah dynasty were engaged in rivalry with each other for gaining control over the nation.
With each successive era, it has been witnessed that a lot of time had been devoted in
consolidating and safeguarding the rule, with little done to ensure that the common people lead a
life of prosperity. The kings are viewed upon in Nepal as representatives of Lord Vishnu,
however, they have failed in guaranteeing the people of the country what their duty ought to be
as being someone analogous to God. It was only in the 21st century when King Birendra had
ascended to the throne that he had introduced constitutional monarchy in the kingdom, marking a
departure from the system of Absolute Monarchy (Adhikari and Jayasinghe 2017).
That was a repercussion to the maoist insurgency in the kingdom which had gained the
popular support among the poor people who gained nothing by the successive dynastic rules in
the country. However the maoist insurgency being a relief for the people of the country had also
belied the promises it had made, of redeeming people from the evils of the kingly rue and shall
be ensuring fair distribution of resources in the country. The members holding influential
positions in the maoist faction often tended to strike fear in the minds of the people to achieve
their political aims of being powerful. The maoists snatching young males from their family to
train them into being soldiers, extorting money unjustifiably from people and violation of the
modesty of women are some of the unethical activities indulged by them. The leaders lead a
lavish life while the poor folks languish in poverty (Manandhar 2015).
Corruption in Nepal exerts a negative impact on the lives of the common people of the
country who are rendered helpless. On this note, the issue of royal massacre has to be invoked in
order to show that even the ones who holds influential position in deciding the state of affairs of
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4CORRUPTION IN NEPAL
the country are not immune at all. Till date the death of King Birendra and his entire family is a
mystery and the justification provided by King Gyanendra that Crown Prince Dipendra is
responsible for it holds no ground. The demolition of Prince Dipendra’s residence where the
massacre had taken place also indicates that the malicious truths had been covered up. The
surprising fact is that King Gyanendra’s family was also present on the day when the massacre
had taken place, however they had escaped unhurt. His wife was shot, but she had survived. This
makes it clear that corruption and the rivalry for the throne still exists within the royal circle
(Basnet 2017).
The members of the royal family also take liberty to commit crimes and they can escape
prosecution. For example, the son of King Gyanendra, Prince Paras is infamous all over Nepal
for his wayward lifestyle. He was complicit in a drug scandal at Thailand, debauchery both in the
country as well as abroad. Prince Paras had killed several people on the streets of Kathmandu
under his speeding car and there has been no legal proceedings against him. These instances have
taken place after Nepalese monarchy have become ornamental, which shows that the Parliament
is indifferent to the interests of the common people (Dahal 2018).
The parliamentary government is also not standing up to the expectations of the people.
The political leaders are made to represent the people in the assembly not on the basis of merit,
but on the basis of nepotism. Naturally, the donations that are provided to Nepal from foreign
countries are laundered for the personal gains of the politicians and their close aides, including
their family members and their close friends, instead of channelizing it to the betterment of the
country. Monarchy was rendered powerless relatively on the promise that parliamentary form of
government shall be catering to the needs and aspirations of the common people. However that
seem not to have fulfilled. The system of getting official work done by means of bribery is
the country are not immune at all. Till date the death of King Birendra and his entire family is a
mystery and the justification provided by King Gyanendra that Crown Prince Dipendra is
responsible for it holds no ground. The demolition of Prince Dipendra’s residence where the
massacre had taken place also indicates that the malicious truths had been covered up. The
surprising fact is that King Gyanendra’s family was also present on the day when the massacre
had taken place, however they had escaped unhurt. His wife was shot, but she had survived. This
makes it clear that corruption and the rivalry for the throne still exists within the royal circle
(Basnet 2017).
The members of the royal family also take liberty to commit crimes and they can escape
prosecution. For example, the son of King Gyanendra, Prince Paras is infamous all over Nepal
for his wayward lifestyle. He was complicit in a drug scandal at Thailand, debauchery both in the
country as well as abroad. Prince Paras had killed several people on the streets of Kathmandu
under his speeding car and there has been no legal proceedings against him. These instances have
taken place after Nepalese monarchy have become ornamental, which shows that the Parliament
is indifferent to the interests of the common people (Dahal 2018).
The parliamentary government is also not standing up to the expectations of the people.
The political leaders are made to represent the people in the assembly not on the basis of merit,
but on the basis of nepotism. Naturally, the donations that are provided to Nepal from foreign
countries are laundered for the personal gains of the politicians and their close aides, including
their family members and their close friends, instead of channelizing it to the betterment of the
country. Monarchy was rendered powerless relatively on the promise that parliamentary form of
government shall be catering to the needs and aspirations of the common people. However that
seem not to have fulfilled. The system of getting official work done by means of bribery is

5CORRUPTION IN NEPAL
something which is quite rampant in the country, which has almost been raised to the level of
regular phenomenon. The psyche of the people of Nepal has accepted this with resignation that
they shall have to give bribes in order to get their official works done (Schütte and Stephenson
2016).
Possible strategies to Counter Corruption
There must be more transparency and accountability in Nepal, on part of the government
towards the people. The country has undergone political changes and turmoil, stability must be
achieved for better governance. The Parliament must introduce the system of accountability to
counter corruption by means of establishing the arrangement of ombudsman which shall hold
both public and private officials accountable for their actions if that goes against the interest of
the public (Karkee and Comfort 2016). The citizens must educate themselves and ensure that
they build up a strong civil society. Nepal beings a small country can easily install the system of
direct democracy for ensuring better governance. The idea of having a Marxist revolution shall
be causing another episode of chaos in the country which shall further worsen the problems that
are prevailing in the country. As it is the country has undergone a lot of instability in the past and
further regime changes shall be detrimental to the common people as that shall not address the
issue of corruption effectively (Bhattarai 2018).
something which is quite rampant in the country, which has almost been raised to the level of
regular phenomenon. The psyche of the people of Nepal has accepted this with resignation that
they shall have to give bribes in order to get their official works done (Schütte and Stephenson
2016).
Possible strategies to Counter Corruption
There must be more transparency and accountability in Nepal, on part of the government
towards the people. The country has undergone political changes and turmoil, stability must be
achieved for better governance. The Parliament must introduce the system of accountability to
counter corruption by means of establishing the arrangement of ombudsman which shall hold
both public and private officials accountable for their actions if that goes against the interest of
the public (Karkee and Comfort 2016). The citizens must educate themselves and ensure that
they build up a strong civil society. Nepal beings a small country can easily install the system of
direct democracy for ensuring better governance. The idea of having a Marxist revolution shall
be causing another episode of chaos in the country which shall further worsen the problems that
are prevailing in the country. As it is the country has undergone a lot of instability in the past and
further regime changes shall be detrimental to the common people as that shall not address the
issue of corruption effectively (Bhattarai 2018).

6CORRUPTION IN NEPAL
References
Adhikari, P. and Jayasinghe, K., 2017, June. ‘Agents-in-focus’ and ‘Agents-in-context’: The
strong structuration analysis of central government accounting practices and reforms in Nepal. In
Accounting Forum (Vol. 41, No. 2, pp. 96-115). Elsevier.
Adhikari, P., 2016. Corruption in the Nepalese Government Sector: is Accounting involved? or
Corruption in the Public Sector with special reference to Nepal: is Accounting involved?.
Journal of the Institute of Chartered Accountants of Nepal.
Baniamin, H.M. and Jamil, I., 2018. Dynamics of corruption and citizens’ trust in anti-corruption
agencies in three South Asian countries. Public Organization Review, 18(3), pp.381-398.
Basnet, B., 2017. Contribution of Income Taxon Government Revenue of Nepal (Doctoral
dissertation, Central Department of Economics Tribhuvan University Kirtipur, Kathmandu).
Bhattarai, U.K., 2018. New Media and Its Role in Stabilizing Nepal: A Geopolitical Context. In
Media Diplomacy and Its Evolving Role in the Current Geopolitical Climate (pp. 36-55). IGI
Global.
Dahal, A., 2018. An Appalling Scenario Growing Corruption and Its Obnoxious Impacts on
Public Lives-With Special Reference of South-Asian Stigma. Int'l J. Soc. Sci. Stud., 6, p.74.
Devkota, S.R., 2017. The Politics of Poverty Alleviation in Nepal: Structural Analysis of
Socioeconomic Development from the Past Five Decades. Heidelberg Papers in South Asian
and Comparative Politics, (25).
Karkee, R. and Comfort, J., 2016. NGOs, foreign aid, and development in Nepal. Frontiers in
public health, 4, p.177.
References
Adhikari, P. and Jayasinghe, K., 2017, June. ‘Agents-in-focus’ and ‘Agents-in-context’: The
strong structuration analysis of central government accounting practices and reforms in Nepal. In
Accounting Forum (Vol. 41, No. 2, pp. 96-115). Elsevier.
Adhikari, P., 2016. Corruption in the Nepalese Government Sector: is Accounting involved? or
Corruption in the Public Sector with special reference to Nepal: is Accounting involved?.
Journal of the Institute of Chartered Accountants of Nepal.
Baniamin, H.M. and Jamil, I., 2018. Dynamics of corruption and citizens’ trust in anti-corruption
agencies in three South Asian countries. Public Organization Review, 18(3), pp.381-398.
Basnet, B., 2017. Contribution of Income Taxon Government Revenue of Nepal (Doctoral
dissertation, Central Department of Economics Tribhuvan University Kirtipur, Kathmandu).
Bhattarai, U.K., 2018. New Media and Its Role in Stabilizing Nepal: A Geopolitical Context. In
Media Diplomacy and Its Evolving Role in the Current Geopolitical Climate (pp. 36-55). IGI
Global.
Dahal, A., 2018. An Appalling Scenario Growing Corruption and Its Obnoxious Impacts on
Public Lives-With Special Reference of South-Asian Stigma. Int'l J. Soc. Sci. Stud., 6, p.74.
Devkota, S.R., 2017. The Politics of Poverty Alleviation in Nepal: Structural Analysis of
Socioeconomic Development from the Past Five Decades. Heidelberg Papers in South Asian
and Comparative Politics, (25).
Karkee, R. and Comfort, J., 2016. NGOs, foreign aid, and development in Nepal. Frontiers in
public health, 4, p.177.
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7CORRUPTION IN NEPAL
Manandhar, N., 2015. Anti-Corruption Lessons from Nepal. Government Anti-Corruption
Strategies: A Cross-Cultural Perspective, p.77.
Meagher, P., 2018. Roads to Somewhere: Localizing Governance of Rural Infrastructure
Programs in Nepal. In Devolution and Development (pp. 267-332). Routledge.
Regmi, P., Van Teijlingen, E., Simkhada, P. and Aryal, N., 2017. Local elections and community
health care in Nepal. Health Prospect, 16(2).
Schütte, S.A. and Stephenson, M.C., 2016. Specialised anti-corruption courts: A comparative
mapping. U4 Issue.
Manandhar, N., 2015. Anti-Corruption Lessons from Nepal. Government Anti-Corruption
Strategies: A Cross-Cultural Perspective, p.77.
Meagher, P., 2018. Roads to Somewhere: Localizing Governance of Rural Infrastructure
Programs in Nepal. In Devolution and Development (pp. 267-332). Routledge.
Regmi, P., Van Teijlingen, E., Simkhada, P. and Aryal, N., 2017. Local elections and community
health care in Nepal. Health Prospect, 16(2).
Schütte, S.A. and Stephenson, M.C., 2016. Specialised anti-corruption courts: A comparative
mapping. U4 Issue.
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