Kathmandu— The foundation of modern society – complex institutions built on rationality, reciprocity, and trust – is facing a crisis in Nepal. These institutions, encompassing both formal and informal norms, organizations, and rules, are vital for peaceful interaction, social and economic benefits, and predictable conduct. However, lingering institutional erosion has hampered the Nepali government’s capacity to respond effectively to challenges, while arbitrary decision-making threatens democratic principles. The lack of trust is impacting governance at all levels, from policy creation to public service delivery.

Institutional Weakness and Governance Challenges

Stable institutions are crucial for organizing society, regulating lives, and shaping predictable behavior, but Nepal’s current state is hindering these functions. This weakness manifests in the government’s diminished capacity to address issues ranging from business imperatives to ecological concerns. The absence of institutionalized decision-making processes makes it difficult to meet diverse needs, adapt to change, and curb the influence of those seeking personal gain. A key issue is the adversarial nature of parliamentary politics, which requires constant negotiation but can also exacerbate societal demands.

The Need for Institutional Renewal

Institutional renewal is seen as essential for improving governance effectiveness, coordinating efforts, and strengthening state machinery. Prolonged periods of ineffective government lead to corruption, crime, abuse of human rights, and a drain on resources needed for public investment. This necessitates a focus on transparency, accountability, and the promotion of meritocratic officials capable of addressing poverty, inequality, and scarcity. The author emphasizes that institutional renewal means replenishing both public and private institutions with creative ideas and talented individuals.

Shifting Dynamics and Modern Governance

Institution building is now viewed as a structure for social, economic, and political regulation, fair distribution of benefits, and the realization of an egalitarian society. The information revolution has transformed decision-making processes, engaging citizens at the grassroots level and balancing top-down and bottom-up management. This coordination between legislative, executive, and judicial branches can create a virtuous cycle of political efficacy and positive social outcomes. There’s been a shift from identity-based loyalty to impersonal networks, suggesting a potential for institutions to overshadow strongmen in Nepali politics.

Challenges to Reform and Public Trust

Despite efforts towards institutional strengthening, Nepal faces significant challenges including the pervasive influence of political interests and the enforcement failure of the rule of law. Fragmentation within political parties hinders consensus-building, while patronage networks and the allocation of state posts based on party affiliation undermine impersonal institutional roles. The author notes that activist impulses from radical parties can distort markets and weaken the state, further complicating reform efforts. A history of leaders recruiting party workers into constitutional organs, including the judiciary, has damaged institutional integrity and fueled public distrust.

Addressing Deep-Rooted Issues

The growth of political instinct within both the government and interest groups is seen as detrimental to effective public policy. The recent experience of the Rastriya Swatantra Party (RSP), which initially gained support by rejecting established parties, illustrates this point – it now faces similar contradictions in leadership and policy. Amending the constitution remains a contentious issue, with debates over secularism, federalism, and even the restoration of a monarchy. Ultimately, wider acceptance of institutional and constitutional arrangements is crucial for ensuring political stability and building public trust.

Nepal’s future hinges on its ability to address these deep-rooted issues and cultivate a culture of strong, accountable institutions that prioritize public service over personal gain. The longevity of these institutions will shape social learning and build confidence in the government, civil society, and business sectors.

Originally published on abcnews.com.np.