Federalism as an experiment in Nepal
KATHMANDU: We are all familiar with the term ‘Federalism’, which, in simple terms, means the division of government into tiers.
In Nepal, federal, provincial, and local levels have been implemented as the three tiers of government.
Federalism comes with both advantages and disadvantages.
When viewed particularly in the context of Nepal, two prominent topics often debated are the size of Nepal’s territory and the annual budget allocation.
Nepal has experienced various political and administrative philosophies over time. Here, we will closely examine the positive and negative aspects of federalism to understand why it remains a relatively new experiment in our governance system.
Positive Aspects of Federalism
Federalism offers several positive outcomes, especially in Nepal’s context. Some key advantages include:
i) Decentralisation of Power:
Unlike other governance models, federalism promotes decentralisation, reaching down to the grassroots level. In Nepal, the federal, provincial, and local levels each function independently. Most administrative offices have been decentralised, providing convenience to people. Tasks that previously required visiting multiple, often distant offices can now be completed at the local level.
Decentralisation has not only affected governmental administration but also political parties, service-oriented private firms, industries, and companies. People now enjoy easier access to services at their doorsteps. The education system, too, has been decentralised with the introduction of the Basic Level Examination conducted by local governing bodies based on geopolitical divisions.
ii) Training of Manpower:
Federalism trains manpower beginning at the local level. Daily administrative and political activities help develop skills that prepare individuals for higher responsibilities. For example, a mayor working at the local level gains experience that aids their performance at the provincial or federal level later on. This applies to bureaucrats and employees in both governmental and private institutions.
Decentralising the school education system empowers stakeholders and officials, nurturing future leaders who will serve the nation. As a result, federalism helps produce knowledgeable politicians, entrepreneurs, employees, and citizens capable of addressing national challenges effectively.
iii) Representation of Voices:
The earlier administrative system struggled to represent the voices of citizens adequately. Federalism attempts to address this by ensuring representation from local to federal levels. Local governments even have ward-level representatives chosen based on inclusion principles. Federalism, therefore, succeeds in representing both majority and minority groups, enabling people to seek solutions to their problems. Issues are assessed and addressed through the different tiers of government, starting at the local level and moving upward. This process increases political and administrative awareness among the people.
iv) Better Laws, Policies, and Economic Reforms:
Under federalism, each tier of government has the responsibility to formulate its own laws, policies, and economic reforms to sustain governance. Local governments manage their budgets and seek aid from provincial and federal levels as needed. This strengthens the country’s administrative system. Local governments can create laws and policies tailored to their society’s unique needs, including considerations of livelihood, services, trade, education, health, infrastructure, and cultural and religious values. Provincial governments analyze local laws to draft policies for the province, while the federal government studies provincial laws to formulate national policies. This layered approach fosters progress that citizens expect from their government.
Negative Aspects of Federalism
Like any system, federalism also has drawbacks, especially in Nepal’s context:
i) Costly and Expensive:
Nepal is a small country compared to other federal nations, so the cost factor is significant. Decentralisation increases the cost of government operations unless each tier can generate sufficient revenue through investments and profits. Building infrastructures for federal, provincial, and local governments requires more manpower, operating costs, and budgets. Government employees’ benefits must also increase, adding further financial burdens. Additionally, citizens may face multiple taxes levied by different government tiers, increasing their overall tax burden.
ii) Psychological Ego Due to Possession of Power:
In government offices, even at the local level, employees may develop a psychological ego driven by the power of their position. This phenomenon extends to elected representatives, who become aware of the influence they hold through votes. Thus, decentralisation can foster a thirst for political and administrative power as a psychological motivator, sometimes leading to unhealthy behavior.
In Defense of Federalism as an Experiment
Federalism has been Nepal’s governance model since the promulgation of the new constitution in 2072 B.S. We have explored the perspectives of people, government employees, private sector members, and representatives, summarizing the general merits and demerits of federalism. These factors should be analyzed through mixed research methods—both qualitative and quantitative—using working models and reliable data. This will help in making informed decisions and planning public awareness campaigns to satisfy citizens with the current model or to consider alternative governance models.
Furthermore, the demerits of federalism can be transformed into merits. The costs involved in building government infrastructures are, in fact, investments and assets for the government. The psychological factor of power thirst is not unique to Nepal; it is a universal human trait. Ethical governance must be promoted to establish healthy relations between rulers and the ruled, fostering mutual respect and accountability.
