The New Elites: How Capitalists Shape Politics and Society in Nepal's Transitional Democracy

This paper examines the long-term effects on democracy and democratic politics in Nepal of the enrichment of Nepal’s emerging bourgeoisie since the reinstatement of a multiparty democratic political system in 1990. The real threat is that this rapidly growing economic power has gone hand in hand with the rise of a crony-capitalist political regime that is undermining democratic norms, increasing corruption and widening social and economic inequality. Applying a qualitative method approach, the paper outlines a wide range of academic and policy literature to demystify the often complex and puzzling relationship that exists between the duo of money and politics. The main findings are that capitalists exert influence on the state via several instruments, such as paying politicians, lobbying and the creation of nepotism and cronyism. A deep democratic deficit and powerful institutional scepticism characterise this relationship. Finally, the paper argues that independent and transformative institutional and regulatory changes (in transparency of political funding, in anti-corruption efforts) are essential for a fairer, more stable and democratic transitional political moment in Nepal.