Opinion

Rebuilding democracy from the ashes: Nepal needs to create jobs and invest in education

The economic impact of the riots is dire – an estimated $22.5 billion in damage, pushing a country already struggling with poverty and underdevelopment further back. Experts warn that it could take at least 15 to 30 years to recover

By Vidhu Prakash Kayastha

Nepal's Federal Parliament building burns amid raging Gen Z protests against corruption and the social media crackdown in Kathmandu, Nepal, on Tuesday, September 9, 2025. Photo: Skanda Gautam/THT

In the hot sun of September 2025, the movement started by the 'Gen Z' generation on the streets of Nepal turned into a tragic riot. Thousands of unarmed students in school uniform spontaneously participated in the movement. Their demands were not for an immediate change of government. Nor were they moving towards vandalism and violence. Their demands were for the lifting of the ban on social media. Also, they came to the streets to peacefully protest against the corruption that is rampant in the country. Before they reached the Parliament building premises, the unarmed students were shot at. Nineteen young people who had dreams of a better Nepal collapsed instantly and died with their dreams unfulfilled forever.

The peaceful demonstration against corrupt leaders quickly descended into chaos. Rumours spread that an unseen force had deliberately provoked the violence, suggesting the riot had been orchestrated in advance. The once orderly crowd turned into a rampaging mob, setting fire to Singha Durbar, the Parliament building, and the Supreme Court. Across the country, government installations – including police stations, municipal offices, and district headquarters – were reduced to rubble and ashes.

The houses of leaders and business establishments were set on fire. Former Prime Minister Sher Bahadur Deuba and his wife Arju Rana, who was also the Foreign Minister, were brutally beaten by the mob. Their houses were burnt down. The uncontrollable mob burnt down the houses of the incumbent Prime Minister KP Oli, as well as former Prime Ministers Prachanda, Madhav Kumar Nepal, Jhalanath Khanal, and Dr. Baburam Bhattarai, as well as the houses of incumbent and former ministers. The houses of former President Bidya Bhandari and other politicians were also not spared.

More than 75 people died in the incidents, which were comparable to the unrest seen in Bangladesh and Sri Lanka. Prime Minister Oli resigned within 30 hours of the riots. A non-political 'interim government' was hastily formed. Parliament was dissolved. People associated with NGOs were made ministers in the government.

Nepal's youth power that toppled the old regime in two days captured the world's attention. But as the dust settled a month later, the reality became clear. This interim government has become a 'change in name only,' full of promises and rhetoric, but no concrete action. This government, which talks about transparency and youth power, seems to have failed to bring about real reforms. The Gen Z youth of the movement have been disappointed, and the country is once again close to instability.

The main responsibilities of the interim government were clear – to stabilise the country, take steps against corruption, and prepare for fair elections. Everything looks good on paper – an investigation into corruption, assurances to lift social media restrictions, and the announcement of an election date of March 5, 2026. But in practice, all these tasks are slow and half-finished. Election preparations have been bogged down by internal disputes and technical problems.

The Gen Z protesters are also divided now on how to use their power. The old leaders in the political parties are not yet ready to give up their seats. The old customs of self-interest and nepotism continue.

The economic impact of the riots is dire – an estimated $22.5 billion in damage, pushing a country already struggling with poverty and underdevelopment further back. Experts warn that it could take at least 15 to 30 years to recover. The government's approach to addressing the problem appears weak. There is no concrete policy on unemployment, which was the main reason for the protests. There are no plans to create jobs or invest in youth education. Instead, the government is forming committees for show, which have so far yielded no tangible results.

Internationally, Nepal has also become even weaker. The country has always been in a state of tension caught as it is between India and China, and the interests of Western powers are also getting involved. After the protests, external powers are trying to increase their influence, which threatens to increase instability in the country. Instead of strengthening Nepal's sovereignty, the interim government has become inactive. It has given external powers the opportunity to act according to their convenience and interests.

Public opinion has also turned negative towards the government. Criticism has mounted that the interim government, born of a 'Gen Z revolution,' is undemocratic. Many are demanding youth participation, but the government is not paying attention to it. The same youth who toppled the old regime are now asking, 'Is this what our sacrifice meant?'

The interim government led by former Chief Justice Sushila Karki, which was initially seen as a courageous attempt at fair governance, now appears to be in a deep crisis. Nearly two months after its formation, the government is still incomplete. Ministers have not been appointed to important ministries such as foreign affairs, defense, and tourism. This government, which was formed with the aim of bringing stability before the general elections of 2082 Falgun 21, has now become a symbol of inaction. The main problem is the lack of political consensus. Karki, who is seen as a tough and honest judge, was initially supported by the Gen-Z movement and divided parties. But when she tried to select ministers on the basis of merit and honesty, those same parties began to back down.