Cooperation or Confrontation? Analyzing the Existing Policy Provisions, Intergovernmental Mechanisms, and Practical Challenges of Cooperative Federalism in Nepal
Abstract
This study examines the policy and practice of cooperative federalism in Nepal by analyzing constitutional mandates, legislative frameworks, and empirical evidence. The principles of cooperation, coexistence, and coordination established in the Constitution of Nepal serve as a foundation for institutionalizing cooperative federalism, with the caveat that political, fiscal, and administrative factors have challenged its effective implementation. Although decentralization processes have been initiated, political parties appear unwilling to devolve power, mostly considering centralization as a means of control rather than fostering intergovernmental collaboration. Furthermore, fiscal challenges, jurisdictional ambiguities, and weak institutional mechanisms impede effective federal governance. The findings show that legal ambiguities, political centralization, restricted financial independence, and the ineffectiveness of coordinating mechanisms have led to tenacious difficulties in cooperative governance, resulting in inefficiencies and conflicts among all tiers of government that undermine policy coherence and service delivery. This study demands a clearer devolution of powers, fiscal autonomy, institutionalized intergovernmental coordination, and a reduction in political interference to strengthen cooperative federalism. This approach eventually subsidizes a more resilient and sustainable governance agenda that aligns with constitutional principles of inclusive governance.
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References
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Dhungana, G. (2023). Disaster Management in Nepal: Current Practices and Opportunities. Harvard Humanitarian Initiative. Retrieved February 11, 2025, from https ://hhi.harvard.edu/news/disaster-management-nepal-current-practices-and-opportunities
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Elazar, D. J., Schleicher, D., Swedldw, B., & Wildavsky, A. (2021). Federalism & Political Culture. https://doi.org/10.4324/9780429337260
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Hanson, R. L. (2004). Intergovernmental relations. In V. Gray & R. Hanson (Eds.) Politics in the American states (8th ed., pp. 31-61). Washington, DC: Congressional Quarterly Press. Retrieved February 14, 2025, from https://us.sagepub.com/sites/default/ files/upm-assets/81344_book_item_81344. pdf
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Khanal, G. K. (2023, August 2). Promises and perils of fiscal federalism. The Kathmandu Post. Retrieved January 30, 2025, from https://kathmandupost.com/columns/2023/08/02/promises-and-perils-of-fiscal-federalism
Khanal, G. K. (2024). Public administration and its political economy in Nepal. Prashasan: The Nepalese Journal of Public Administration, 56(1), 15–32. https://doi.org/10.3126/prashasan.v56i1.67327
Khanal, U. (2022). Federalism in Nepal: An appraisal of the implementation of a prospective scenario. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4128283
Kincaid, J. (1990). From cooperative to coercive federalism. Annals of the American Academy of Political and Social Science, 509(1), 139–152. https://doi.org/10.1177/0002716290509001011
Ministry of Finance (2025). High-level Economic Reforms Recommendation Commission Report, 2081. Retrieved February 24, 2025, from https://mof.gov.np/divisions/epad/carousel-detail/7/
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Pokharel, T. (2020-2023). Surviving the Crisis: Making Intergovernmental Relations Strong for Fighting the Pandemic: A Case from Nepal. Asian Review for Public Administration. Vol. 31, Nos. 1&2, 23-46. http://www.eropa.co/nepal-2020-2023- vol-31-nos-12-pg-23-46.html
Prasai, K. (2020). Cooperatising cooperative federalismin Nepal. Journal of South Asian Studies, 26(3), 112-115. https://doi.org/10.21587/jsas.2020.26.3.005
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Smith, R. B., & Smith, N. N. (2022). Implementation of Federalism in Nepal: The Devil is detailed. Lex Scientia Law Review, 6(2), 223-264. https://doi.org/10.15294/lesrev.v6i1.54437
Subedi, G. (2023). Intergovernmental Interaction in Federal Nepal and Challenges in the Transitional Period. INTELLIGENCE Journal of Multidisciplinary Research, 2(1), 49–60. https://doi.org/10.3126/ijmr.v2i1.53620
Wagle, A. (2018). Fiscal imbalances in Nepal's federalism: An empirical analysis. NRB Economic Review, 30(1), 49–68. https://doi.org/10.3126/nrber.v30i1.52300
Watts, R. L. (2008). Comparing federal systems (3rd ed.).. McGill-Queen's University Press. https://archive.org/details/comparingfederal0002watt_e7n7
Watts, R.L. (2006). Origins of Cooperative and Competitive Federation. In Greer, S.L. (eds) Territory, Democracy and Justice. Palgrave Macmillan, London. https://doi.org/10.1057/9780230510388_10
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Zulueta-Fülscher, K. (2020). What is Federalism? International IDEA. Retrieved January 25, 2025, from https://www.idea.int/videos/what-federalism
Acharya, K. K., & Zafarullah, H. (2020). Institutionalizing federalism in Nepal: Operationalizing obstacles and procrastination Public Administration and Policy: An Asia-Pacific Journal, 23(2), 125- 139. https://doi.org/10.1108/PAP-03-2020-0013
Acharya, K.K. & Scott, J. (2022). Study of the capabilities and limitations of local governments in providing community services in Nepal. Public Administration and Policy: An Asia-Pacific Journal, 25(2), 169–184. https://doi.org/10.1108/pap-01-2022-0006
Acharya, K. K., Kandel, R., & Upadhyay, P. (2024). Structural barriers to intergovernmental relationships in Nepal. Dhaulagiri Journal of Sociology and Anthropology, 18(2), 46–59. https://doi.org/10.3126/dsaj.v18i2.73316
Adhikari, S. (2025). Challenges and obstacles in implementing National Pride projects in Nepal. Journal of Political Science and International Relations, 8(1), 20–30. https://doi.org/10.11648/j.jpsir.20250801.12
Asian Development Bank. (2022). Strengthening fiscal decentralization in Nepal's transition to federalism. https://doi.org/10.22617/ TCS220280
Bahl, R. W., Timofeev, A., & Yilmaz, S. (2022). Implementation of federalism: The case of Nepal. Public Budgeting and Finance.42(3), 23– 40. https://doi.org/10.1111/pbaf.12314
Bhattarai, P., Khadka, S., Puri, S., Khunk, A. (2023). Intergovernmental Conflicts in Federal Nepal: Are they Constructive or a Source for Destruction? Centre for Social Change (CSC). February 22, 2025, from https:// solconferences.ku.edu.np/wp-content/ uploads/2023/11/Intergovernmental- conflicts-in-Federal-Nepal_CSC-Nepal.pdf
Bhattarai, P., & Khadka, S. (2024). Governance, conflicts, and cooperation in federal Nepal. Government Monitoring Center (GMC) Nepal. February 29, 2025, from https://gmcnepal.org/publications/governance-conflicts- and-cooperation-in-federal-nepal/
Bhul, B. (2024). The fashion of federalism in Nepal: Challenges and opportunities. PAAN Journal, 30(1), 1760–1774. https://doi.org/10.3126/paanj.v30i1.66103
Bhusal T. (2023). Cooperative federalism in Nepal: Practice and prospects. In M. J. Vinod, S. V. Joseph, C.Chennatuserry, & D. N. Chryssochoou (Eds.) Cooperative Federalism in South Asia and Europe: Contemporary Issues and Trends. Routledge. https://doi. org/10.4324/9781003461197
Constitution of Nepal. 2072 BS (2015). Government of Nepal, Nepal Law Commission, New Baneshwor, Kathmandu. Retrieved February 18, 2025, from https://lawcommission.gov.np/category/1807/
Dangal, S. (2025). There were 256 Local Levels without chief administrative officers. Ratopati. Retrieved February 28, 2025, from https://www.ratopati.com/story/444340
Democracy Resource Center. (2024a). Nepal's Federal Civil Service Bill: An opportunity to advance administrative federalism. In political situation updates. Retrieved January 16, 2025, from https://www.democracyresource.or g/wp-cont ent/ uploads/2024/05/DRCN-PSU-9-Nepals- Federal-Civil-Service-Bill-An-Opportunity- to-Advance-Administrative-Federalism- Eng lish-Version-Ma y -2024.pdf ?utm_ source=chatgpt.com
Democracy Resource Center. (2024b). Delay in law-making in Nepal's Federal Parliament and its implications. Retrieved from https://www.democracyresource.org/delay-in-law-making-in-nepals-federal-parliament-and-its-implications/
Devkota, K. (2021). F iscal Federalism and Intergovernmental Relationships in Nepal. I nternational Center for Public Policy, Georgia State University. Retrieved January 16, 2025, from https://scholarworks.gsu.edu/icepp/104/
Devkota, K. (2022). Law processes in Nepal. International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University. Retrieved January 13, 2025, from https://icepp.gsu.edu/files/2022/05/2202-Law-Processes-in- Nepal.pdf
Devkota, K. (2024a). Fiscal federalism updates. The Kathmandu Post. Retrieved January 29, 2025, from https://kathmandupost.com/columns/2024/05/14/fiscal-federalism-update
Devkota, K. (2024b). Federal System Blueprint in Nepal. The Annapurna Express. Retrieved January 13, 2025, from https://theannapurnaexpress.com/story/48456/
Devkota, K. (2024c). Cooperative Federalism in the Nepali Constitution: A Comprehensive Analysis. Samsad Journal, 1(1), 51–66. https://doi.org/10.3126/sj.v1i1.75903
Dhungana, G. (2023). Disaster Management in Nepal: Current Practices and Opportunities. Harvard Humanitarian Initiative. Retrieved February 11, 2025, from https ://hhi.harvard.edu/news/disaster-management-nepal-current-practices-and-opportunities
Elazar, D. J. (1997). Exploring federalism. University of Alabama Press. https://archive.org/details/exploringfederal0000elaz/page/ n5/mode/2up
Elazar, D. J., Schleicher, D., Swedldw, B., & Wildavsky, A. (2021). Federalism & Political Culture. https://doi.org/10.4324/9780429337260
French, R. (2023, November 28 2023). Cooperative federalism in Nepal and Australia. The Kathmandu Post. Retrieved January 24, 2025, from https://kathmandupost.com/columns/2023/11/28/cooperative-federalism-in-nepal-and-australia
Finnigan, C., & Bhusal, T. (2019, March 13). Long Read: Nepal's federalist ambiguities. LSE South Asia Blog. Retrieved January 21, 2025, from https://blogs.lse.ac.uk/southasia/2019/03/13/long-read-nepals-federalist-ambiguities/
Guragain, G. P. & Pokharel, S. (2024). Enhancing federalism and decentralization in Nepal. South Asian Research Journal of Humanities and Social Sciences, 6(5), 198–207. https://doi.org/10.36346/sarjhss.2024.v06i05.001
Hanson, R. L. (2004). Intergovernmental relations. In V. Gray & R. Hanson (Eds.) Politics in the American states (8th ed., pp. 31-61). Washington, DC: Congressional Quarterly Press. Retrieved February 14, 2025, from https://us.sagepub.com/sites/default/ files/upm-assets/81344_book_item_81344. pdf
Hueglin, T. O. & Fenna, A. (2015). Comparative federalism: A systematic inquiry. (2nd ed.). University of Toronto Press. https://archive.org/details/isbn_2901442607223
International Crisis Group. (2021). Nepal's federalism: conflict , compromise, and constitutional implementation (Asia Report No. 326). https://www.crisisgroup.org/asia/south-asia/nepal
Khanal, G. K. (2023, August 2). Promises and perils of fiscal federalism. The Kathmandu Post. Retrieved January 30, 2025, from https://kathmandupost.com/columns/2023/08/02/promises-and-perils-of-fiscal-federalism
Khanal, G. K. (2024). Public administration and its political economy in Nepal. Prashasan: The Nepalese Journal of Public Administration, 56(1), 15–32. https://doi.org/10.3126/prashasan.v56i1.67327
Khanal, U. (2022). Federalism in Nepal: An appraisal of the implementation of a prospective scenario. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4128283
Kincaid, J. (1990). From cooperative to coercive federalism. Annals of the American Academy of Political and Social Science, 509(1), 139–152. https://doi.org/10.1177/0002716290509001011
Ministry of Finance (2025). High-level Economic Reforms Recommendation Commission Report, 2081. Retrieved February 24, 2025, from https://mof.gov.np/divisions/epad/carousel-detail/7/
Oates, W. E. (2005). Toward a second-generation theory of fiscal federalism. International Tax and Public Finance, 12, 349-373. https://doi.org/10.1007/s10797-005-1619-9
Pokharel, T. (2020-2023). Surviving the Crisis: Making Intergovernmental Relations Strong for Fighting the Pandemic: A Case from Nepal. Asian Review for Public Administration. Vol. 31, Nos. 1&2, 23-46. http://www.eropa.co/nepal-2020-2023- vol-31-nos-12-pg-23-46.html
Prasai, K. (2020). Cooperatising cooperative federalismin Nepal. Journal of South Asian Studies, 26(3), 112-115. https://doi.org/10.21587/jsas.2020.26.3.005
Rai, K. (2023). The relationship between the federal government, provinces, and local levels and the issues observed. Prasashan. Retrieved January 18, 2025, from https://www.prasashan.com/2023/09/17/472584/
Saito, Y., Joshi, N. K., & Rozo Rincon, M. (2024). Nepal's Fiscal Federation Update 2024. World Bank Group. Retrieved February 07, 2025, from http://documents.worldbank.org/curated/en/099050924102027545
Shah, R. K. (2019). Fiscal federalism in Nepal: Challenges and opportunities. Research Nepal Journal of Development Studies, 2(1), 151–170. https://doi.org/10.3126/rnjds.v2i1.25279
Smith, R. B., & Smith, N. N. (2022). Implementation of Federalism in Nepal: The Devil is detailed. Lex Scientia Law Review, 6(2), 223-264. https://doi.org/10.15294/lesrev.v6i1.54437
Subedi, G. (2023). Intergovernmental Interaction in Federal Nepal and Challenges in the Transitional Period. INTELLIGENCE Journal of Multidisciplinary Research, 2(1), 49–60. https://doi.org/10.3126/ijmr.v2i1.53620
Wagle, A. (2018). Fiscal imbalances in Nepal's federalism: An empirical analysis. NRB Economic Review, 30(1), 49–68. https://doi.org/10.3126/nrber.v30i1.52300
Watts, R. L. (2008). Comparing federal systems (3rd ed.).. McGill-Queen's University Press. https://archive.org/details/comparingfederal0002watt_e7n7
Watts, R.L. (2006). Origins of Cooperative and Competitive Federation. In Greer, S.L. (eds) Territory, Democracy and Justice. Palgrave Macmillan, London. https://doi.org/10.1057/9780230510388_10
World Bank. (2019). Nepal: Capacity needs assessment for the transition to federalism (Report). https://documents1.worldbank. org/curated/en/503181593615554741/pdf/Nepal-Capacity-Needs-Assessment- for-the-Transition-to-Federalism.pdf
Zulueta-Fülscher, K. (2020). What is Federalism? International IDEA. Retrieved January 25, 2025, from https://www.idea.int/videos/what-federalism
Published
2025-08-27
How to Cite
BHUL, Baburam.
Cooperation or Confrontation? Analyzing the Existing Policy Provisions, Intergovernmental Mechanisms, and Practical Challenges of Cooperative Federalism in Nepal.
, [S.l.], v. 9, n. 3, p. 282-301, aug. 2025.
Available at: <http://www.journal.iapa.or.id/pgr/article/view/1246>. Date accessed: 26 sep. 2025.
doi: https://doi.org/10.30589/pgr.v9i3.1246.
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Articles
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