International Relations4 min read

Corruption is Structural: A Case Study of Nepal

S
Samyak Duggirala

September 10, 2025

Recent protests have sparked public outrage as the streets of Kathmandu, Nepal's capital city, are filled with social unrest. Corruption is the root cause. The youth of Nepal are overwhelmingly fed up with a government that consistently overlooks their needs. Today's protests are nothing new. In fact, civil disobedience has slowly built up over the past few years as a reaction to the country's growing inequality. The tipping point was finally reached a few days ago as parliament decided to ban nearly 26 forms of social media, preventing the free dissemination of information. Almost immediately, Gen-Z protesters took to the streets to advocate against a fundamental violation of rights. The governmental response has been tragic. In multiple clashes, a total of 22 protestors have been killed by police. Fortunately, the ban has been withdrawn, and Prime Minister KP Sharma Oli has resigned. Although the Nepalese people have taken a great first step, rooting out corruption will still take prolonged effort.

Intervention only breeds dependency, debt, and corruption. If a state is given funding from a major world power, the hegemon expects a return on investment in the shape of political influence and soft power. For example, investments in healthcare, architecture, education, and governance are heralded as a blessing, but in reality, corruption ensues. Simply put, the government is now more focused on appealing to its "generous" benefactor instead of its own people, thus incentivizing deceit. Nepal is a prime example. Inequality has only skyrocketed in the country, despite economic growth on paper. Wealth remains unjustly concentrated in the hands of a privileged few. While it is easy to blame Nepal's predicament solely on corrupt leaders, it is vital to recognize that the root of this injustice lies with donor countries. By channeling vast resources directly to a select elite, these countries perpetuate a cycle of inequality and suffering for ordinary Nepalis. Crucially, for major world powers, developing countries are like pawns on the chessboard—simple pieces to move in order to progress the game of hegemony. For example, the $500 million MCC Program does not offer altruistic help to Nepalese citizens; it is meant to serve as a wedge against expanding Chinese influence. In fact, many in Nepal protested against its implementation due to growing distrust of Western aid and its perceived invisible political strings. Their concerns are not entirely unfounded. Indeed, a study from the University of Cambridge found that economic growth from aid was limited. Moreover, as US policy-making is subject to drastic swings in opposite directions, receivers of foreign investment are the ones negatively affected. For example, recent cuts to USAID push millions into irrecoverable situations. However, the next time a Democrat president restores these programs, the country is back to square one. The issue is inconsistency. The only guarantee for a country like Nepal is an uncertain economic landscape prone to disaster. As these nations build up over-reliance on the U.S, any cuts to funding can prove to be catastrophic at the worst times. History has revealed the fatal flaws in Western governance, as Bangladesh and Sri Lanka have both fallen victim to the same pervasive trap in recent years.

Nepal, with its South Asian contemporaries, has suffered at the hands of Non-Governmental Organizations (NGOs). In Kathmandu, more harm is done than good by NGOs. In a particularly disturbing example, nineteen Nepalese children were discovered in abusive living conditions in an NGO "orphanage". Corrupt organizations have empirically flourished under the millions of dollars in foreign aid granted to Nepal. What's worse is that most NGO's vie with one another for aid from their Western donor, decreasing their actual effectiveness in ameliorating the conditions of the Nepalese people. Investigative Journalists Rachel Browne and Alia Dharssi write, "NGOs fail to work together at the border, which would be more effective in helping more people." Overall, the system is flawed to its core.

Although the changing political landscape of today offers hope, the underlying issue is much deeper than the current face of government. Structural corruption runs deep. It starts with Western donations and ends with the endless suffering of the Nepalese people. The motivations for the West are simple: money, power, and influence. So long as aid continues, so will corruption. Crucially, that's by design of the global world leaders. If third-world countries remain dependent on larger ones, then the power dynamic of neocolonialism is kept in place. In Nepal, rooting out endemic corruption is not as simple as overthrowing a deceitful government. Unfortunately, the issue is embedded deep within US foreign policy and its deceptive strategies.

In Partnership with Capitol Commentary

About the Author

S
Samyak Duggirala

Capitol Commentary Writer

Centered in Arizona, Samyak focuses on local advocacy revolving around equity in education. His interests are focused on the intersection of global politics and civics education with a priority of ensuring equitable access to information.

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