A coherent national strategy can turn Nepal's geography into an advantage, its youth into innovators, and its politics into a source of stability
Nepal stands today at a moment of profound uncertainty. Political polarisation, politics fragmentation, unreliable economy, eroding public trust, fragile diplomacy, confused tools and institutions of the state, and growing geopolitical revelation have pushed the nation into a cycle of instability. Yet within this turbulence lies a silver lining once again to rethink national purpose and redesign governance.
What Nepal needs is not another government plan or party manifesto, but a coherent national strategy, one grounded in realism, anchored in national values, national character, and capable of providing stability, direction, and confidence.
The starting point of any credible strategy is a unifying vision. Nepal must aspire to be a prosperous, stable, and self-reliant nation that remains confidently engaged with New Delhi, Beijing, and the world. This vision goes beyond economic indicators; it calls for social harmony, equitable growth, and a political system that honours cultural heritage while adapting to the demands of a modern state.
A clear mission must then guide how the State operates. The mission should rest on three foundations: security of the nation, stability of the system, and transformation of the economy. Sovereignty and safety are the first obligations of the State. Predictable governance is the second. The ability of citizens to prosper with dignity is the third.
A national strategy must also rest on a set of core values that function as the country's moral compass. Nepal's revival requires an unwavering commitment to sovereignty, accountability, inclusiveness, meritocracy, innovation, and strategic neutrality. Sovereignty means resisting external pressure or influence that seeks to shape Nepal's choices. Accountability, honesty, and meritocracy are essential to restoring public trust eroded by years of political patronage. Inclusiveness is ensured not through federalism but through decentralisation, which becomes an instrument of empowerment for development. And neutrality allows Nepal the freedom to engage all major powers without being captured by any.
Strategic clarity requires a precise reading of the national and global environment. Nepal's strengths are considerable: a unique geographic position between two economic giants, a young and resilient population, and vast renewable energy potential. Yet weaknesses are equally stark: chronic political instability, entrenched corruption, a loose national identity, and an economy dangerously dependent on remittances. Opportunities include multi and mini lateral connectivity initiatives such as Bangladesh-Bhutan-India-Nepal (BBIN), Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), South Asian Association for Regional Cooperation (SAARC), digital transformation, hydropower exports, and constructive participation in global and regional platforms. The threats are undeniable – from climate shocks to the sharpening geopolitical rivalry among India, China, and the United States.
From that understanding, Nepal needs political consolidation so that governance becomes stable, predictable, and accountable. It requires economic transformation, a modernised national security, and a performance-based administration, and digital accountability. And Nepal must integrate strategically into emerging global groupings such as the BRICS Plus, the Shanghai Cooperation organisation (SCO), and the Asian Infrastructure Investment Bank (AIIB), not as a passive participant but as a nation with clear interests and positions.
To achieve these intents, Nepal must adopt strategic approaches that blend ambition with realism and pragmatism. Governance reform must focus on institutional overhaul rather than temporary anti-corruption drives. Economic strategy should prioritise hydropower, tourism, agro-industry, and digital services as the pillars of growth. Security strategy must integrate defense, intelligence, cyber readiness, and disaster preparedness. Diplomatically, Nepal must maintain equidistant, equivalent, and equi-centric engagement with all major powers while expanding partnerships with immediate neighbours.
However, strategy without execution is merely aspiration. Nepal must establish a "National Strategy and Policy Council" chaired by the Prime Minister to integrate planning, budgeting, and monitoring. Five-year rolling action plans linked to measurable indicators should transform political pledges into tangible progress. Institutions – not individuals – must drive implementation. The State must function beyond the personality of leaders and the lifespan of coalitions.
Resource mobilisation must reflect national priorities. With over 65 per cent of public expenditure going into recurrent spending, Nepal must shift its budget towards capital formation, infrastructure, education, and defense modernisation.
Monitoring and learning are essential for strategic success. Nepal needs a transparent, data-driven National Performance Dashboard to track progress in real time. An Annual Strategic Review Conference involving the Parliament, provinces, the private sector, and academia can promote collective ownership. A culture of learning – where failures inform better design – must replace the habitual cycle of crisis and reaction.
In an era of global volatility, Nepal must anticipate risks rather than react to them. Political risks require consensus-driven governance and constitutional flexibility. Economic risks demand diversification of trade partners and stronger food and energy security. Security risks require improved intelligence, cyber defense, and disaster readiness. Geopolitical risks compel Nepal to maintain principled neutrality, positioning itself as a bridge of understanding between India and China rather than an arena of rivalry.
Nepal's past planning has suffered from fragmentation: strategies without execution, policies without coherence, and implementation without accountability. The time has come to replace adhocism with strategic discipline. A coherent national strategy can turn Nepal's geography into an advantage, its youth into innovators, and its politics into a source of stability rather than uncertainty.
