Current Political Situation
One of the poorest countries in the world, Nepal has been ruled by a hereditary monarchy since 1768. Nepal's first experiment with democracy began in 1951 and ended 8 years later when the King suspended parliament and introduced a one-party system.
In April 2006, a 20-day popular revolution brought an end to the monarchy's direct rule. Parliament was reinstated and power was transferred to Prime Minister Koirala and the Seven Party Alliance. In November 2006, Prime Minister Koirala and Maoist Chairman Prachanda signed a 10-point Comprehensive Peace Agreement (CPA), formally bringing an end to 11 years of civil war. The CPA promised political, social, and economic transformation, as well as protection of human rights, relocation of internally displaced persons, Constituent Assembly (CA) elections, and management of arms and armies under U.N. supervision.
The first phase of Maoist combatant and weapons registration has been completed. The second phase of this process, verification of the more than 30,000 combatants, began in mid-June. Meanwhile, the interim constitution was promulgated and an interim parliament was formed with the participation of the Maoists on April 1. With the CA elections slated for November 22, the interim parliament continues to work on passing electoral laws.
Despite the positive momentum toward peace, the process is being tested by continued Maoist misbehavior, particularly by its youth wing. Other pressures on the peace process include ongoing violence in Nepal's Terai region and demonstrations by a variety of minority groups demanding federal restructuring of the state, the right to self-determination, and proportional representation in the CA.
USAID/OTI Nepal Program
In August 2006, the U.S. Agency for International Development's Office of Transition Initiatives (USAID/OTI) began a 2-year, $15,000,000 program in Nepal. The program supports a peaceful, democratic transition in Nepal. The program has the following objectives:
- to increase access to information and diversify public debate on issues critical to political transition, and
- to increase the effectiveness of key political transition institutions.
USAID/OTI's flexibility and fast-response capabilities uniquely enable the program to implement a wide variety of activities, such as supporting social inclusion in the CA elections, strengthening the media, facilitating community stabilization, and providing information to diversify public debate on the political transition process. To date, the program has approved 59 small-grant activities totaling more than $2 million.

Initial activities of the USAID/OTI program focused on building the capacity of the National Monitoring Committee on Code of Conduct for Ceasefire, the first official body to monitor the peace agreements. Once the CPA was signed, USAID/OTI assisted the Ministry for Peace and Reconstruction with the distribution of more than 100,000 of copies of the agreement throughout the country. Simultaneously, the program worked with local nongovernmental organizations to supplement the information with posters, leaflets, dramas, and community workshops and dialogues on the CPA. In preparation for the CA elections, USAID/OTI commissioned a survey to monitor the voter registration process, feedback from which will provided critical information to the Election Commission prior to the elections. Other program activities include environmental and gender-based monitoring in areas around Maoist cantonment sites.
In addition, strengthening the media has been a key focus of the USAID/OTI program. Media-strengthening activities have included the following:
- enhancing radio station broadcasting capabilities, including using portable technology to bring information to remote, radio-blind areas,
- instituting a permanent FM radio station in the remote district of Humla,
- launching a live, national toll-free call-in radio show that provides listeners across Nepal with access to elected representatives, government officials, and civil society leaders, and
- supporting a popular television debate show that focuses on the issues that Nepali youth are facing during the transition process.
During the pre-election period, USAID/OTI will support a voter education campaign, along with election reporting, through 40 radio stations covering all 75 districts of Nepal.
Responding to the increasing political unrest in the Terai, USAID/OTI aired public service announcements featuring political and civil society leaders promoting communal harmony amid fears of rising ethnic tensions. Ongoing activities in the Terai include dialogues on social inclusion and cultural harmony among ethnic groups. And amid complaints of media bias in the coverage of the recent unrest, USAID/OTI funded a media-monitoring project in the Terai. In July 2007, USAID/OTI will open a field office in the region that will focus intensely on critical Terai districts.
The Road to Peace: Where Do We Stand?
2006
April 24 - King reinstates parliament.
November 21 - Ten-point CPA signed between the government and the Maoists.
November 28 - Arms management agreement signed between the government, the Maoists, and the U.N.
2007
January 15 - Interim constitution promulgated and interim parliament formed.
February 22 - First phase of Maoist soldiers and weapons registration completed.
March 9 - Constitution amended to include the demands of the Madhesis.
April 1 - Interim government formed.
Jun 13 - Electoral bills passed. Elections announced for Nov. 22, 2007.
For additional information, please contact: Gordon Shettle, OTI/ANE Program Manager, 202-712-1243, gshettle@usaid.gov