Calhoun: The NPS Institutional Archive Theses and Dissertations Thesis Collection 2013-03 FEDERALISM IN NEPAL: DIVERGENT PERCEPTION AND CONVERGENT REQUIREMENT FOR DEMOCRATIC CONSOLIDATION Silwal, Narayan Monterey, California. Naval Postgraduate School http://hdl.handle.net/10945/32900 NAVAL POSTGRADUATE SCHOOL MONTEREY, CALIFORNIA THESIS FEDERALISM IN NEPAL: DIVERGENT PERCEPTION AND CONVERGENT REQUIREMENT FOR DEMOCRATIC CONSOLIDATION by Narayan Silwal March 2013 Thesis Co-Advisors: Thomas C. Bruneau Anshu Chatterjee Approved for public release; distribution is unlimited THIS PAGE INTENTIONALLY LEFT BLANK REPORT DOCUMENTATION PAGE Form Approved OMB No. 0704-0188 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704-0188) Washington DC 20503. 1. AGENCY USE ONLY (Leave blank) 2. REPORT DATE 3. REPORT TYPE AND DATES COVERED March 2013 Master’s Thesis 4. TITLE AND SUBTITLE 5. FUNDING NUMBERS FEDERALISM IN NEPAL: DIVERGENT PERCEPTION AND CONVERGENT REQUIREMENT FOR DEMOCRATIC CONSOLIDATION 6. AUTHOR(S) Narayan Silwal 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING ORGANIZATION Naval Postgraduate School REPORT NUMBER Monterey, CA 93943-5000 9. SPONSORING /MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSORING/MONITORING N/A AGENCY REPORT NUMBER 11. SUPPLEMENTARY NOTES The views expressed in this thesis are those of the author and do not reflect the official policy or position of the Department of Defense or the U.S. Government. IRB Protocol number ____N/A____. 12a. DISTRIBUTION / AVAILABILITY STATEMENT 12b. DISTRIBUTION CODE Approved for public release; distribution is unlimited. 13. ABSTRACT (maximum 200 words) Democratization, decentralization, ethnic identity, federalism, rights of indigenous people and politics of consensus are often-used terms in the contemporary political debate in Nepal. Despite political consensus on federalism as the founding notion of the Interim Constitution (2007), political parties with Constituent Assembly have failed to forge consensus on the nature of federalism. This thesis analyzes the complexity of politics in multi-ethnic societies, and specifically, the rise of the ethnic politics and federalism agenda of political parties in Nepal. The lack of ethnic- specific regions makes the identity issue more complex given that the Maoist platform promised ethnic-specific regions in the country upon coming to power. The issue was made more complicated due to complex geopolitics, inter- and intra-party squabbles for power, and unhealthy party competition for political benefits and attention. This thesis also suggests that the solution to state restructuring rests on the political parties and their commitment to democratic procedures because federalization and democratization of the state are mutually supportive, a lesson learned from India and Spain. Only political understanding at the highest possible levels and compromise of political interests putting people and national agenda at the center can solve the present political impasse revolving around federalism. 14. SUBJECT TERMS 15. NUMBER OF Federalism, Multi-ethnic Society, State Restructure, Constituent Assembly, Discrimination, Caste, PAGES Ethnic Identity, Maoist, Nepal, Federalization, Democratization, Peoples’ Movement, Interim 167 Constitution. 16. PRICE CODE 17. SECURITY 18. SECURITY 19. SECURITY 20. LIMITATION OF CLASSIFICATION OF CLASSIFICATION OF THIS CLASSIFICATION OF ABSTRACT REPORT PAGE ABSTRACT Unclassified Unclassified Unclassified UU NSN 7540-01-280-5500 Standard Form 298 (Rev. 2-89) Prescribed by ANSI Std. 239-18 i THIS PAGE INTENTIONALLY LEFT BLANK ii Approved for public release; distribution is unlimited. FEDERALISM IN NEPAL: DIVERGENT PERCEPTION AND CONVERGENT REQUIREMENT FOR DEMOCRATIC CONSOLIDATION Narayan Silwal Lieutenant Colonel, Nepal Army M.Sc., University of Madras, Chennai, 2008 Submitted in partial fulfillment of the requirements for the degree of MASTER OF ARTS IN SECURITY STUDIES (CIVIL-MILITARY RELATIONS) from the NAVAL POSTGRADUATE SCHOOL March 2013 Author: Narayan Silwal Approved by: Thomas C. Bruneau, PhD Thesis Co-Advisor Anshu Chatterjee, PhD Thesis Co-Advisor Harold A. Trinkunas, PhD Chair, Department of National Security Affairs iii THIS PAGE INTENTIONALLY LEFT BLANK iv ABSTRACT Democratization, decentralization, ethnic identity, federalism, rights of indigenous people and politics of consensus are often-used terms in the contemporary political debate in Nepal. Despite political consensus on federalism as the founding notion of the Interim Constitution (2007), political parties with Constituent Assembly have failed to forge consensus on the nature of federalism. This thesis analyzes the complexity of politics in multi-ethnic societies, and specifically, the rise of the ethnic politics and federalism agenda of political parties in Nepal. The lack of ethnic-specific regions makes the identity issue more complex given that the Maoist platform promised ethnic-specific regions in the country upon coming to power. The issue was made more complicated due to complex geopolitics, inter- and intra-party squabbles for power, and unhealthy party competition for political benefits and attention. This thesis also suggests that the solution to state restructuring rests on the political parties and their commitment to democratic procedures because federalization and democratization of the state are mutually supportive, a lesson learned from India and Spain. Only political understanding at the highest possible levels and compromise of political interests putting people and national agenda at the center can solve the present political impasse revolving around federalism. v THIS PAGE INTENTIONALLY LEFT BLANK vi TABLE OF CONTENTS I. INTRODUCTION........................................................................................................1 A. MAJOR RESEARCH QUESTION................................................................1 B. IMPORTANCE ................................................................................................2 C. PROBLEMS AND HYPOTHESES ...............................................................4 D. LITERATURE REVIEW ...............................................................................8 1. Various Federalist Designs and Their Contexts ................................8 2. Multiethnic Designs .............................................................................11 3. Possibility of Federalism in Nepal ....................................................13 E. METHODS AND SOURCES ........................................................................16 F. THESIS OVERVIEW ...................................................................................17 II. HISTORICAL SETTINGS: CASTE, ETHNICITY, DISCRIMINATION, IDENTITY POLITICS AND NEPAL’S TRANSITION TO FEDERAL SYSTEM .....................................................................................................................19 A. INTRODUCTION..........................................................................................19 B. BRIEF DESCRIPTION OF THE POLITICAL JOURNEY TO CONSTITUENT ASSEMBLY ELECTION ...............................................19 C. CLASS, CASTE AND ETHNICITY IN NEPAL ........................................22 1. National Caste System and Social Status .........................................25 2. People, Language and Migration ......................................................27 3. Indigenous People and Their Rights ................................................29 D. ISSUES OF INCLUSION AND EXCLUSION ...........................................31 1. Social Exclusion and Disparity .........................................................33 a. Women and Dalits: Most Deprived Segment of the Society ..36 2. Issue of Ethnic Identity in Nepal ......................................................37 3. Ethnic Movement in Terai ................................................................40 4. Citizenship Issue.................................................................................41 E. SOCIOECONOMIC PERSPECTIVE OF MAOIST INSURGENCY .....44 1. Why Did Peasants Support Maoist Insurgency? ............................46 2. Maoist’s Agenda and Socioeconomic Relations ..............................46 3. Hope in Radical Solution ...................................................................48 F. CONCLUSION ..............................................................................................48 III. STRUCTURE OF CA, POLITICAL PARTIES AND OTHER STAKEHOLDERS ON FEDERALISM ..................................................................51 A. INTRODUCTION..........................................................................................51 B. STRUCTURE OF CA AND CONSTITUTION DRAFTING PROCESS .......................................................................................................51 C. POLITICAL PARTIES, THEIR CONSTITUENCIES