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Democracy and Governance Assessment: Nepal

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Democracy and Governance Assessment: Nepal NEPAL DEMOCRACY AND GOVERNANCE ASSESSMENT SEPTEMBER 2005 This publication was produced for review by the United States Agency for International Development. It was prepared by ARD, Inc. AUTHORS: Sue Nelson, Team Leader Bishnu P. Adhikari, Democracy and Governance Advisor, USAID/Nepal Harry W. Blair, Ph.D., Political Scientist Judy Dunbar, USAID Program Specialist, DCHA/CMM Veeraya Kate Somvongsiri, USAID Democracy Specialist, DCHA/DG ARD, Inc. Task Order under Democracy and Governance Analytical Services IQC USAID Contract No. DFD100-04-00227-00 NEPAL: DEMOCRACY AND GOVERNANCE ASSESSMENT SEPTEMBER 2005 DISCLAIMER The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. CONTENTS ACRONYMS AND ABBREVIATIONS.......................................................................iii EXECUTIVE SUMMARY ............................................................................................v I.0 INTRODUCTION...................................................................................................1 1.1 ASSESSMENT OBJECTIVES..........................................................................................................1 1.2 BACKGROUND.................................................................................................................................1 2.0 DEFINING THE DEMOCRACY AND GOVERNANCE PROBLEM ....................3 2.1 CONSENSUS..........................................................................................................3 2.2 RULE OF LAW ........................................................................................................4 2.3 COMPETITION........................................................................................................5 2.4 INCLUSION.............................................................................................................6 2.5 GOVERNANCE ........................................................................................................7 3.0 ARENAS AND ACTORS .....................................................................................9 3.1 THE LEGAL ARENA ................................................................................................9 3.1.1 Constitutional Sphere.................................................................................9 3.1.2 Judicial Sphere........................................................................................10 3.2 COMPETITIVE ARENA ...........................................................................................12 3.2.1 Electoral Sphere.......................................................................................13 3.2.2 Parties ......................................................................................................15 3.3 GOVERNANCE ARENA ..........................................................................................17 3.3.1 Legislative Branch....................................................................................18 3.3.2 Executive Branch .....................................................................................19 3.3.3 Constitutional Commissions....................................................................21 3.3.4 Local Governance ...................................................................................22 3.3.5 Security Sector........................................................................................23 3.4 CIVIL SOCIETY.....................................................................................................25 3.4.1 Citizenry ..................................................................................................25 3.4.2 Civil Society Organizations .....................................................................26 3.4.3 Media.......................................................................................................27 3.5 MAOISTS.............................................................................................................29 3.6 INTERNATIONAL COMMUNITY ................................................................................30 4.0 CRITICAL ISSUES ...........................................................................................31 4.1 LACK OF COMMITMENT TO DEMOCRATIC VALUES AND SYSTEMS ............................31 4.2 INABILITY OF PRINCIPAL ACTORS AND INSTITUTIONS TO GOVERN EFFECTIVELY ......31 4.3 MARGINALIZATION AND DISENFRANCHISEMENT OF POPULATION .............................32 5.0 RECOMMENDATIONS.....................................................................................33 5.1 STRATEGIC FOCUS...............................................................................................33 5.2 PROGRAMMATIC PRIORITIES ................................................................................34 5.2.1 Building Commitment to a Representative Multiparty Democracy..........34 5.2.2 Strengthening Institutional and Human Capacity for Good Governance35 5.3 PROMOTING EQUALITY AND INCLUSION.................................................................37 NEPAL DEMOCRACY AND GOVERNANCE ASSESSMENT i 5.4 INSTITUTIONAL PRIORITIES...................................................................................38 5.4.1 Political Parties.........................................................................................38 5.4.2 Parliament ................................................................................................39 5.4.3 Other Institutions ......................................................................................39 5.5 ASSUMPTIONS AND SCENARIOS .............................................................................40 5.5.1 Possible Scenarios and Their Implications for Programming .................40 5.5.2 Preparing for Peace ................................................................................42 5.6 ASSESSMENT RECOMMENDATIONS AND USAID/NEPAL’S 2006-2009 STRATEGY ........................................................................................42 ANNEXES Annex 1: Principal Actors in the Nepal Political System ....................................44 Annex 2: Arenas and Institutions ..........................................................................45 Annex 3: Political Timeline: Parliament and Prime Ministers.............................47 Annex 4: Possibilities for Compromise ................................................................48 Annex 5: Electoral and Party Data.........................................................................50 Annex 6: Survey Data .............................................................................................52 Annex 7: Corruption Complaints Per Ministry .....................................................53 Annex 8: Democracy and Governance: Matrix of Donors ..................................55 Annex 9: Comments on USAID’s SAGUN Project................................................59 ATTACHMENTS Attachment A: Contacts .........................................................................................61 Attachment B: Statement of Work.........................................................................66 Attachment C: References .....................................................................................69 ii NEPAL DEMOCRACY AND GOVERNANCE ASSESSMENT ACRONYMS AND ABBREVIATIONS CIAA Commission for the Investigation of Abuses of Authority CBO Community Based Organization CPN-UML Communist Party of Nepal/United Marxist-Leninist CSO Civil Society Organization DANIDA Danish International Development Agency DC District Committee DCHA Democracy, Conflict and Humanitarian Assistance DDC District Development Committee DDR Disarmament, Demobilization and Reintegration DFID Department for International Development (UK) DG Democracy and Governance EU European Union GNI Gross National Income ICG International Crisis Group IDEA International Institute for Democratic and Electoral Assistance IFES International Foundation for Electoral Systems MP Member of Parliament NC Nepali Congress NC-D Nepali Congress- Democratic NCCS Nepal Centre for Contemporary Studies NDI National Democratic Institute for International Affairs NGO Nongovernmental Organization NSP Nepal Sadbhawana Party OPMCM Office of the Prime Minister and Council of Ministers PR Proportional Representation NEPAL DEMOCRACY AND GOVERNANCE ASSESSMENT iii RCCC Royal Commission on Corruption Control RNA Royal Nepalese Army RPP Rastriya Prajantra Party SAGUN Strengthened Actions for Governance in Utilization of Natural Resources TADA Terrorism and Disruptive Act TAF The Asia Foundation UNDP United Nations Development Programme UNHCHR United Nations High Commissioner for Human Rights UPF United People’s Front USAID US Agency for International Development VDC Village Development Committee iv NEPAL DEMOCRACY AND GOVERNANCE ASSESSMENT EXECUTIVE SUMMARY Nepal started a democratic transition in 1990 that has never been fully realized. Political party immaturity, vested interests, and a 200-year history of absolute monarchy continues to hinder democratic development and good governance practices. The elitist nature of Nepali society and politics still excludes large portions of the country and population, and the Maoist insurgency that started in the mid- 1990s rooted easily in the country’s marginal areas. Facilitated by the absence of central authority in rural areas, the insurgents’ use of
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