The People’s Movement in 2006 decisively broke the royal family’s hold on power. Gyanendra stepped down, and the Comprehensive Peace Accord formally ended the decade-long conflict. This moment was expected to open the door to a new political era. In practice, however, a small group of leaders came to dominate the system. Sher Bahadur Deuba, K.P. Sharma Oli, and Pushpa Kamal Dahal largely alternated power among themselves.
These leaders represented different ideological traditions. The Nepali Congress promoted liberal democracy, while the Communist Party of Nepal (Unified Marxist–Leninist) followed a Marxist-Leninist framework, and Dahal’s party championed hardline communism. Yet ideology rarely shaped political behaviour. Alliances shifted based on convenience rather than principle, leading to frequent government changes. Dahal, in particular, emerged as a key power broker, moving between the NC and UML to secure repeated terms as prime minister.
A Constitution That Couldn’t Stabilise Politics
The Constitution of Nepal 2015 was expected to stabilise the system by institutionalising federalism, republicanism, and secularism. Many believed this framework would address longstanding political challenges. That expectation proved overly optimistic. Instead of stability, Nepal entered a cycle of persistent coalition politics.
From 2015 to 2024, governments changed regularly. Political agreements remained fragile, as illustrated by Dahal’s third premiership (2022–2024), during which coalition partners shifted three times in just 19 months. Policy debates took a back seat to power negotiations, highlighting systemic weaknesses.
Governance failures also became increasingly evident. Corruption persisted in public institutions, and youth unemployment remained high, with more than one-fifth of young people unable to find work domestically. Large numbers of Nepalis continued to migrate for foreign employment. While remittances sustained the economy, they masked structural weaknesses—production declined while consumption rose, increasing dependence on imports. The trade deficit has now exceeded Rs 12 trillion. Public frustration gradually deepened, evolving from quiet dissatisfaction into open distrust, culminating in last year’s Gen Z movement.
Revised interest rate corridor system introduced
The Rise of Public Discontent
Political leaders underestimated the depth of this distrust. They assumed that elections and shifting coalitions would ease public discontent. That assumption collapsed in 2025, when the Gen Z movement erupted after the government banned social media platforms. The ban triggered widespread anger among young people who already felt excluded from decision-making.
What began as a small protest quickly escalated into a nationwide movement, with around 75 people losing their lives. The unrest ultimately forced the resignation of K.P. Sharma Oli and led to the dissolution of the House of Representatives.
The protests spread across urban centres, and their demands soon expanded beyond internet freedom. Demonstrators highlighted deeper systemic issues, including corruption, unemployment, and ineffective governance. The movement resonated widely because it captured a shared public sentiment: that the political system served parties more than citizens.
Students, professionals, and first-time voters formed the backbone of the protests. Unlike earlier movements, this one lacked a single leader and instead relied on decentralised coordination and digital mobilisation.
Tensions peaked as clashes between protesters and security forces intensified. On September 9, 2025, Oli resigned under mounting pressure. A transitional arrangement followed, with Sushila Karki leading an interim government tasked with restoring order and preparing for elections—reflecting Nepal’s recurring reliance on non-political figures during crises.
The general election on March 5, 2026, produced a historic outcome. The Rastriya Swatantra Party, led by Rabi Lamichhane, secured a near two-thirds majority, signalling a decisive rejection of traditional parties.
Youth voters played a crucial role in this shift. Balen Shah assumed office on March 27, 2026, symbolising a dramatic transformation in public expectations. His rise, as a non-traditional political figure and former mayor of Kathmandu, marked a departure from the leadership patterns of the past two decades.
Why the System Broke Down
Several factors explain this political shift. Decades of inaction, nepotism, and lack of urgency by traditional parties eroded public trust. Frequent government changes reinforced the perception that politics had become disconnected from governance. Meanwhile, unemployment and migration affected a large share of households, and the political class failed to recalibrate the economy. Leadership remained concentrated among a small group, fuelling perceptions of exclusion and patronage.
The Gen Z movement did more than topple a government—it reset public expectations. It demonstrated that young voters can organise, sustain pressure, and drive political change. It also ushered in a more demanding political climate, where citizens expect tangible results rather than rhetoric.
A New Era of Performance Politics
Under Shah and the Rastriya Swatantra Party, the focus has shifted to delivery. Within a month of taking office, the government unveiled a 100-point agenda alongside an 18-point commitment plan aimed at economic reform, improved governance, and greater accountability. These promises will ultimately be judged on performance.
Despite early setbacks—such as the resignations of the home and labour ministers, which exposed internal divisions—the government retains a strong mandate and sufficient political space to implement reforms if it remains focused. Public expectations, particularly among youth, are high. Citizens demand faster services, reduced corruption, and meaningful job creation at home. Patience is limited, and the same public that enabled this political shift is unlikely to hesitate in challenging it if results fall short.
