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The Nepalese Peace Process: Faster Changes, Slower Progress Padma Prasad Khatiwada IPS Paper 9 Abstract The ongoing structural reform process in Nepal is the outcome of over one decade of negotiations among the former ruling Monarch, Nepali political parties and the Maoist movement, under the impetus of civil society mobilisation for change – with demands ranging from power, rights and dignity for people at the community level. This paper analyses the ways in which the peace process, which put an end to the armed conflict in Nepal in 2006, has sought to address popular demands for inclusive democracy. It does so by reviewing the various cycles of negotiation, codification and materialisation of political reforms since the People’s Movement of 2006, the Comprehensive Peace Accord and the (first and second) Constituent Assemblies. It focuses in particular on one area of reform that has been widely debated among political and civil society sectors, namely, state restructuring through power decentralisation. Overall, the paper develops the arguments that although there is a widespread consensus that state institutions should be made more inclusive and representative of the makeup of society, the voices of power contenders, such as the Madhesi and Janajati communities, have failed to be adequately represented in constitutional debates. Their exclusion could lead to an undermining of all the achievements made so far in terms of laws and practices in favour of the marginalised communities and the achieved and pipelined progresses towards a democratic Nepal. This could further plunge the country into violence in an endless political transition. © Berghof Foundation Operations GmbH – CINEP/PPP 2014. All rights reserved. About the Publication This paper is one of three case study reports on Nepal produced in the course of the collaborative research project ‘Avoiding Conflict Relapse through Inclusive Political Settlements and State-building after Intra- State War’, running from February 2013 to February 2015. This project aims to examine the conditions for inclusive political settlements following protracted armed conflicts, with a specific focus on former armed power contenders turned state actors. It also aims to inform national and international practitioners and policy-makers on effective practices for enhancing participation, representation, and responsiveness in post-war state-building and governance. It is carried out in cooperation with the partner institutions CINEP/PPP (Colombia, Project Coordinators), Berghof Foundation (Germany, Project Research Coordinators), FLACSO (El Salvador), In Transformation Initiative (South Africa), Sudd Institute (South Sudan), Aceh Policy Institute (Aceh/Indonesia), and Friends for Peace (Nepal). The views expressed in this paper are those of the authors and do not necessarily reflect the views and opinions of the Berghof Foundation, CINEP/PPP, or their project partners. To find more publications for this project please visit www.berghof-foundation.com. For further information, please contact the project research coordinator, Dr. Véronique Dudouet, at [email protected]. About the Author Dr. Padma Prasad Khatiwada is a university lecturer, human rights activist and the treasurer of Friends for Peace (FFP) in Kathmandu, Nepal. He previously worked with several Nepali human rights organisations including the Informal Sector Service Center (INSEC), the Human Rights Alliance and SAAPE – a Network of civil society organizations in South Asia, for whom he co-authored Nepal’s Chapter in the Poverty and Vulnerability Report in South Asia (in 2009 and 2012), as well as a South Asia Regional Status Paper on Peace, Justice and Demilitarisation. He has also worked as a UN Volunteer (Disaster Management Specialist) with UNDP Nepal (2003-2004); as a Liaison Officer with the Ministry of Agriculture and Development; Trainer for the Ministry of Health and Population; as a Technical Member of the National Census Observation Committee (NCOC) for the 2011 Population and Housing Census; and as General Secretary of the Population Association of Nepal (PAN). Dr. Khatiwada has a PhD in Conflict Induced Forced Migration from Tribhuvan University in Kathmandu, and has taken several specialisation courses on forced migrations, federalism, governance, decentralisation and development at the universities of Oxford, Fribourg and Transcend Peace University. This project has been funded with support from the International Development Research Center in Ottawa. To cite this paper: Khatiwada, Padma Pr asad 2014. The Nepalese Peace Process: Faster Changes, Slower Progress, Inclusive Political Settlements Paper 9 . Berlin: Berghof Foundation. Via internet: www.ips-project.org. Page 2 | 31 Table of Contents 1 Introduction ......................................................................................................................................... 5 2 Arenas of Negotiation, Codification, and Materialisation of Nepal’s Political Settlement since 2006 .............. 7 2.1 The People’s Movement (March-April 2006) .................................................................................. 7 2.1.1 Negotiations and Codification: The 12-Point Understanding ............................................ 7 2.1.2 Materialisation ........................................................................................................... 8 2.2 Comprehensive Peace Accord ...................................................................................................... 9 2.2.1 Negotiations ............................................................................................................... 9 2.2.2 Codification ................................................................................................................ 9 2.2.3 Materialisation ......................................................................................................... 10 2.3 Interim Constitution ................................................................................................................. 11 2.3.1 Negotiation .............................................................................................................. 11 2.3.2 Codification .............................................................................................................. 12 2.4 Constituent Assembly ............................................................................................................... 13 3 Debates on State Restructuring: Towards an Inclusive Nepali State .......................................................... 14 3.1 Debate over the Nature of Federal Units ...................................................................................... 15 3.1.1 Three-Tier Federal Structure ....................................................................................... 15 3.1.2 Formation of Provinces .............................................................................................. 16 3.2 Provisions on Legal Governance ................................................................................................ 16 4 Conclusion ......................................................................................................................................... 17 References................................................................................................................................................. 19 Annex 1: Major Political Movements in Nepal (Both Armed and Unarmed) ........................................................ 21 Annex 2: Political Negotiation after 2006 in Nepal: A Conceptual Framework .................................................... 22 Annex 3: 12-Point Understanding Signed in New Delhi on 22 November 2005 .................................................. 23 Annex 4: Exercise by the First CA on State Restructuring ................................................................................. 25 Annex 5: Comprehensive List of Codifications in Nepal from 2005 to 2011 ....................................................... 30 Page 3 | 31 Acronyms CA Constituent Assembly CPA Comprehensive Peace Accord CPN (UML) Communist Party of Nepal (Unified Marxist and Leninist) CPN Communist Party of Nepal DC Disappearance Commission DDC District Development Committee FFP Friends for Peace FM Frequency Modulation FoDDC Federation of District Development Committee FPTP First-past-the-Post GoN Government of Nepal HMG His Majesty’s Government HoR House of Representatives IC Interim Constitution LPC Local Peace Council MoPR Ministry of Peace and Reconstruction NNDSWO Nepal National Dalit Social Welfare Organisation NPTF Nepal Peace Trust Fund OHCHR Office of United Nations High Commissioner for Human Rights PLA People’s Liberation Army PR Proportional Representation RNA Royal Nepalese Army SPA Seven Party Alliance TC Technical Committee TRC Truth and Reconciliation Commission UCPN Unified Communist Party of Nepal UML Unified Marxist and Leninist UNMIN United Mission to Nepal VDC Village Development Committee VoC Victim of Conflict Page 4 | 31 1 Introduction Nepal, the youngest republic in the world, has found itself at a junction. The founder of the state of Nepal viewed it as Dui Dhunga Bichko Tarul – the yam stuck between two boulders, symbolising that Nepal is a landlocked country inserted between two Asian giants – China and India (Sri Panch Prithvi Narayana Shahko Upades ND, 11). Nowadays, people ironically call it Dui Tarul Bichko Dhunga – the stone stuck