Local Governance and Power Dynamics: A Study of Decentralization Practices in Nepal (1990-2006)

Abstract

This paper examines decentralization as a socio-political experiment in state restructuring and grassroots governance during Nepal’s post-1990 democratic transition. It focuses on the implementation of decentralization, particularly through the Local Self-Governance Act 1999, and analyzes how it reshaped local power relations and promoted democratic participation. The study adopts an interpretivist research paradigm and a qualitative methodology to explore how power was socially constructed, negotiated, and contested within institutional and community settings. The findings reveal that decentralization largely failed to achieve meaningful devolution because centralized authority and bureaucratic control remained dominant. Rather than transferring real decision-making power, decentralization often functioned as administrative deconcentration. Local institutions were increasingly dominated by traditional and emerging neo-elites, resulting in the marginalization of Dalits, Janajatis, women, and other disadvantaged groups despite the policy’s inclusive objectives. The Maoist insurgency further disrupted local governance, weakened democratic institutions, and reinforced central control, creating a prolonged democratic vacuum. The study concludes that although decentralization produced limited structural transformation, it strengthened grassroots demands for self-governance and contributed to Nepal’s transition toward federalism. It argues that decentralization in Nepal is not merely a policy outcome but a socially constructed process shaped by power relations, political conflict, and community agency. The paper provides qualitative insights into the local power dynamics that influenced Nepal’s democratic transformation.