The Role of Nepotism and Cronyism in Nepal’s Corruption Problem

  

Introduction

Personal connections often outweigh merit for many in Nepal, thereby creating a vicious circle of nepotism that hinders progress. The saying goes, "it's not what you know, it's who you know", and that seems unfortunately true here. Nepotism- giving one's friends or family favors regarding contracts, jobs, or promotions-and cronyism, giving favor to close friends or associates, especially in politics, have penetrated every field of Nepalese life, business to politics. This sets up a situation whereby character and merit may be put beneath loyalty to friends and family. The strongly generalized culture of nepotism promotes corruption and, in the process, resource misallocation increases the gap between the rich and the less privileged. When equal competition and accountability have been minimized by the concentration of public resources in the hands of a few, then outright disillusionment occurs among citizens of the country. It is essential to comprehend the scope of these practices as they have an impact on daily life in addition to governance.  Where most of the population are faced with structural challenges, the effects of nepotism also rebound in public services, health care, and education, therefore setting never ending cycles of inequality against poverty. It is an instilled culture of connection over skill that stalls a nation full of promise.

The historical causes of nepotism and cronyism, societal repercussions, and practical remedies that can help to eliminate this deeply entrenched issue in Nepal-are what the blog will dwell on. We try to explain with cases and professional perspectives how such practices breed institutional distrust among the citizens and hamper development of the country. We also want to be able to shed light on how change might unlock a door toward the direction of an equal future for all Nepalese citizens, where integrity and accountability are prioritized over connections and favoritism.

Background Research

Nepotism and cronyism are deeply entrenched in Nepal’s political and administrative systems as that plays a significant role in countries corruption problem. In the government agencies political connection or appointments or family connections are prioritized over merits, competency and transparency.  This has led to systematic merit breakdown as those who are qualified are suppressed and those who are less qualified are given opportunity by having better connection in politics. As a result, public trust in government decreases and economic development and social progress is limited. The problem is extended as politician’s reward their loyal subordinated or their family members with the influence of political influence. This practice increases the level of corruption which is difficult to break.

The relevant literature on nepotism, cronyism and corruption highlight’s how these practices undermine governance and development in countries like Nepal. Several keys’ theories for understanding how favoritism decreases public trust and increases corruption.

1. Principal-Agent theory: This theory explains that corruption will take place or increases when government officials prioritize their personal interest over the public good. In systems affected by nepotism and cronyism the officials are often appointed based on connection or loyalty rather than merit, leading to poor accountability and governance. In Nepal this is widespread in government agencies were political connection bypasses qualities.

2. Patronage Theory: This system focuses on how the leaders of politics distributes the positions and resources maintaining cycles of cronyism. In Nepal political leaders mostly appoint family members or close friends or allies to official positions which creating networks that are resistance to reform transparency which leads to widespread corruption.

3. Elite capture Theory: This theory occurs when a small group of politically connected individuals dominates public institutions and exploiting resources for their personal benefit. Research shows that in Nepal political elites often control key state institution and businesses leading to undermining meritocracy and perpetuating inequality.

4.Rent-Seeking and Resource Curse Theories These theories explain how countries with abundant resources often experience higher level of corruption. Due to the availability of international aid in Nepal it has created opportunities for rent seeking behavior where political elites use nepotism to extract wealth without contributing to broader societal development.   

5.Global and South Asian Research: This research shows link between favoritism and increased corruption, weakening governance and economic performance. South Asia research highlight’s that these practices in civil service and public sectors result in inefficiency and underdevelopment. In Nepal it is similar in sectors like public service, judiciary and state-owned enterprises.

In the context of Nepal nepotism and cronyism in public institutions are pervasive and affecting key factors such as education, healthcare and public enterprises. These practices lead to the compromise of quality services, efficiency and institutional integrity resulting in a significant impact on development and public welfare.

1.Education Sector:

 Nepotism and cronyism have severely undermined the quality and effectiveness of Nepal’s education system. Due to having favoritism from administrative appointments to teaching positions it has led to numerous inefficiencies and a decline in educational standards.

•Appointment of unqualified personnel: Positions in public schools and universities are often filled by individuals with political or personnel connections rather than those who actually have the qualifications or experiences. This affects the education quality provided to the students as the teachers who lack skills or expertise are placed in key roles. 

• Corruption in Resource allocation: Nepotism leads to misallocation of educational resources as funds intended for the schools and university may be transferred to individuals or projects with strong political backings. In some cases, infrastructure projects involving individual with strong political background results in poor quality construction or incomplete projects.

• Examination and Merit: Cronyism and nepotism often infiltrate examination boards leading to unfair practices where student with strong connections receive results. This discourages students who performs based on merit and leads to lowering the quality of the talent pool entering the workforce.

2. Healthcare sector:

The healthcare sector in Nepal is another critical area where nepotism and cronyism have heavy influence mostly in terms of service delivery, management and access to quality health care.

• Political Appointments in healthcare managements: Hospitals and health care are often managed by those who the strong political connections rather than the one who have experience. This leads to inefficient hospital administration, lack of accountability and poor patience care. Leaders with political power often prioritize personal or political interest over public interest which leads to mismanagement or degrading health care.

•Employment practices: Health care sector in Nepal is well known for hiring based on personal connections rather than the merit resulting in overstaff but inefficient in workforce. Additionally, the promotion within the health care sector is based on strong political connections rather than merit which may lead to lowering staff morale.

3.Public Enterprises:

Nepal’s public enterprises including state owned companies are frequently mismanaged due to being appointed with the help of string political connection and lacking necessary management skills or expertise.

• Politicization of leadership: Public enterprises such as Nepal Electrical Authority or Nepal Telecom where the leaders are often appointed based connections rather than merits. It leads to financial losses, poor performance and mismanagement due to cronyism in leadership.

• Public contracting and resource misallocation: Nepotism affects how public contracts are provided where lucrative projects often given to companies with ties to government officials. This leads to delay of project, low quality of infrastructure. This affects the country’s economic development.

4. Public service:

Nepotism and cronyism are also uncontrolled in Nepal’s civil service where there is political interference in recruitment and promotions.

•  Meritocracy Undermined: Public service positions to local government roles are often filled with strong political connections regardless of their qualifications and expertise. Merit based system are bypassed leading to inefficiency and a lack of motivation among the qualified.

•  Corruption in Promotion and Transfer: Promotion within the public service often favors individuals with a political or personal connections leading to a hierarchal system that rewards loyalty rather than competence. Civil servants may seek out for favorable posting and avoid unfavorable transfer with the help of strong political connections leading to inefficiency and corruptions within government operations.

Research Methodology

Role of Nepotism & Cronyism in the Corruption Scenery- A Holistic Approach: This study followed a multidimensional research method where an integrated strategy involving both qualitative and quantitative methodologies was used to delve deep into the conditionality that nepotism nexus controls corruption practices in Nepal. The use of both methods provides a holistic vision about the intricacies and implications-political, social or otherwise-of these practices in Nepal.

1. Literature Review

Existing studies, articles and reports on corruption, nepotism and cronyism in Nepal were identified through a comprehensive literature review. These comprised academic journals; official publications (by the government); as well some other theoretical notes from non-governmental organizations (NGOs) which engaged in anti-corruption advocacy. The review gave me a strong foundation of understanding the backdrop as to how historical and cultural context regarding these issues were shaped.

2. Case Studies

Various case studies of specific incidents of nepotism and cronyism were analyzed in order to reflect the practical aspects of these corrupt practices. The case studies illustrated deleterious effects on the individuals, organizations, and society, providing concrete examples of the manner in which systemic corruption operates.

3. Data Analysis

Qualitative data from interviews were examined thematically, identifying salient features and recurring themes concerning the impact of nepotism and cronyism. Quantitative survey data were processed with statistical analysis with the purpose of establishing correlations and trends that clearly described public sentiment and experiences.

Objectives Of The Blog

Thus, the objectives of the research are presented on issues related to corruption with particular focus on cronyism and nepotism endemic in Nepal. The research seeks to achieve the following:

1. Definition of Nepotism and Cronyism: The two terms, having considerable implications for the nation, must be elaborately defined within the perspective of Nepali politics and administration.

2. Assess Incidence: How widespread these two practices, labeled in recent times as such, are in the context of governance formation and functioning of the agencies in Nepal as such.

3. Investigate Mechanisms: In what ways are political nepotism and cronyism enforced in the political landscape of Nepal and what is their relevance to decision-making.

4. Evaluate Consequences for Meritocracy: How far is its scope with regard to the process of competitive recruitment and promotion of people in the public and the private domain.

5. Impact on Governance: how does nepotism and cronyism affect governance in terms of the people’s perception of the government, the culture of accountability, and the ability to reform the system of governance in general.

6. Case Studies: Identify a few cases, where these 'nepotims' and/or the cronyism took place in front of very nose but how indirectly driving up corruption levels among such sectors.

7. The Most General Opinion: As far back as you can recall your country, did its people believe in government and those structures which per political task tend to churn over into the hands of politicians' pals -- sent from god damn cronyism?

8. Effects of Cronyism and Nepotism on Governance: Evaluate the manner in which cronyism, and nepotism in a system result to unwanted tendencies where people of no relevancy gain positions leading to system and moral decay.

9. The Effects of these Practices on Merit System: Evaluate how these practices impact the meritocratic system in employment systems of hiring based on the culture of efficiency and ultimately cut off the meritocracy culture completely.

10. Public Engagement: Assess the effect of the allegations of nepotism on citizens’ political participation and trust in government institutions especially in a context of political dynasties in Nepal.

Findings and Discussion

Nepotism and Cronyism is an ongoing issue in Nepal, with its roots deep within the Nepalese social, political, and economic area. It shows up as favoritism towards family members or close friends in employment, political appointments, and business opportunities. This practice can be seen in government sectors, political parties, and powerful families where power and privilege are passed down on generations without any proper reason or eligibility. Nepotism has contributed to corruption, ineffectiveness of government and loss of opportunities for deserving people, increasing inequality and slowing the country's progress.

1.Political Influence and Governance

The Nepalese government has seen the form of nepotism and Cronyism can be seen all over the government. The country government is usually seen a pattern with the rulers who usually have a legacy followed by the father to the son/daughter or the other members of the family. The government is seen to be ruled by a certain family then be passed through the generations. Nepal got its democracy on May 28, 2008, but even after that we still follow the system of passing power to next generation by nepotism and Cronyism in the system. There are also cases of rules being made and exploited by nepotic families. This can lead to a series of other issues; corruption increases as all the organizations are run by a single family                                 

2. Judiciary and Legal System

There is a saying that if the government is wrong the Judiciary will be there to provide Justice. But in terms of Nepal this can’t be Said the same as the country Judiciary system favors nepotism and cronyism more than justice. The Judicial system of Nepal which was supposed to be a Separate body which would not be influenced by any other body has a history of being influenced by the royal family in the past and then various political parties in the present. The influence of Nepotism and Political party over the Judicial system can be seen in various ways. Often time the Decision made by Judiciary are contradictory and in favor of the party they are connected to.

At the same time the people appointed as the Cabinet members are usually people close to the chief justice rather than the once who are willing to be wise and justful. A clear example of this can be seen in Under the Former Chief Justice Khil Raj Regmi under whose 2 of his own members were accused of corruption. Khil Raj Regmi had various allegations in his time as he shown his own abuse of power and Nepotism. Similarly Former Chief Justice Cholendra Shumsher Rana was involved in a major controversy when it was alleged that he influenced the appointment of his brother to a high-profile government position.

Chief Justice Rana,
-The Kathmandu Post

3.Economic Impact and Business Environment

There can see a nepotism in other section than just the government and judicial system of Nepal. The country’s Economic and business Sector. Nepotism has extended to the business sector, where politicians have used their influence and power to place their own family members and friends in positions of power within state-owned businesses. In some cases, government contracts and tenders are awarded to businesses owned or managed by politicians' relatives or friends or even which the politicians themselves have investment in.

Families with businesses are more often seen in Nepal’s private sector, and ownership is frequently passed down through the family. While this is common in many parts of the world, Nepal's lack of transparent corporate governance practices can result in the removal of more qualified individuals from leadership positions.

Nepotism has a negative impact on business. When unqualified people are placed in various positions high or low. Nepal's industries lose their ability to compete. This has a direct impact on the economy as potential investors are lost as they don’t wish to invest in a market where corruption and nepotism are high.

4.Cronyism in Public Appointments

Nepotism and Cronyism can be Seen in In the Nepalese government at various levels thought the lowest levels to Kharidar to higher post. The influence of High-level mister over the posting of JOB at various levels is quite high. With people who favors the Minister are Often the once who get the jobs and rest are ditched. This creates a high sense of Nepotism and cronyism in the Nepalese government. Due to these factors the government is filled with Unqualified Personals who only favors the higher up’s and not the public. This leads to the government not being able to function properly and increase in bribery, and Abuse of power within the government. Also leads to the Loss of qualified Personal and increase in the unemployment within the country. One of the examples for this could be “The secretariat of the Karnali Providence chief, Tilak Pariyar has 12 government employees. Among them 9 are the close relatives.”  

list of officers in the provincial office

        

5.Nepotism and Cronyism in education system

Nepotism also prevails in the education system of Nepal. The future of the country is as corrupt as other sectors of the country. On various levels of this sector from appointment of teachers to the board members of an organization(school/college) there can be seen a heavy amount of nepotism and corruption. This leads to having unqualified teachers and members who run the school. Due to this the students can’t get the necessary education and creates a lack of education within the country at same time the various grants provided to these organizations be misused.

 There being a lack of schools providing proper school education and skills there seems to be a competition between parents and students to get seats on the school who provide the necessary education and skills are high. As this competition going on we can see schools providing the seats to people who are known closer to the higher ups of the school or anyone involved with it alongside taking gifts and aid from the parents of the student who are given these seats. Due to this the students who are well deserving of education and skills are deprived of the need and others tend to gain this opportunity which they don’t make proper use of the seat.

Self-reflection

 

 Anuska Singh(UID-0381096)- A society thrives only when opportunities are decided by talent and effort and not by network connections; this makes my drive for the advocacy of openness and transparency in all walks of life stronger. But I also found it difficult to accept how complex everything was. It is always discouraging to witness a deeply ingrained habit that should be overcome. This is the challenge I learned must be dealt with through persistence and dedication to lifelong learning.

Writing this blog also made me reflect on how the young generation could work against this tradition. Of course, values can change and shift as people become more knowledgeable and better educated and may focus on responsibility and transparency. I came to realize that while the barriers to change are powerful, the incentive toward change can be equally powerful. It calls for the collaboration of all in society: the citizens, the activists, and the legislators in contributing toward the better system. We can work toward a future where integrity and merit overcome relationship and favoritism by being aware and actively engaged.

Brajesh Maharjan(UID-0381039)- Nepotism and cronyism have been central to Nepal’s ongoing corruption as it plays a significant role in perpetuating corruption in Nepal. It creates deep rooted issues that undermine government fairness and development. Practices involving unfair advantages to family members or friends rather than selecting individuals based on merit or qualification leading to lack of transparency and inefficiency. This erodes the trust of citizens in public institutions and creates a culture of favoritism that obstructs transparency and accountability.

 Nepotism the favoritism shown to family members has been particularly prevalent in political and bureaucratic appointments where many key positions are often filled by relatives of politicians and influential figures. This not only limits social mobility but also perpetuates where positions are inherited rather than earned. This limits the opportunities for qualified individuals and contributes to inefficiency in governance. From personal observation this has led to leaders are more concerned about their personal interest rather than serving the public.

Cronyism is the preference of close friends or close allies providing high level contracts and business opportunities are frequently awarded based on personal connections leading to inefficiencies and misallocation of public resources. This practice weakens the institutional checks, and the cycle of corruption becomes self-reinforcing.

On a broader scale these practices erode public trust in institution. As a nation fostering transparency and developing stronger institutional framework can reduce the influence of nepotism and cronyism. As an individual I recognize the need to challenge these norms not only by advocating for meritocracy but also by holding myself accountable for not contributing or accepting such practice in my personal and professional life

Sneha Gautam(UID-0380847)- Both nepotism and cronyism add to the culture of favoritism that perpetually undermines governance, exacerbating corruption in Nepal, where a culture exists in which personal connections overshadow merit. It highly contributes to the corruption problems within the country's political and social fabric.

The historical patronages carried out under the monarchy have grown into modern political tools where powerful figures reward their cohorts for corruption across all sectors, public and private, including government and judiciary. A socio-economic structure which favors growth and development of an individual over everyone else creates policies and regulations that hinders many people to have access to power or resources.

Moreover, weak institutional frameworks further aggravate the problem by lacking effective checks and balances that ensure accountability. In other words, it corrodes public trust, with economic resources being shifted in the wrong direction-that is, away from essential services. Consequently, this undermines democratic processes and increases social inequalities.

The reality on the other hand is that although there are laws in Nepal to prevent corruption, often, there is a lack of implementation, and it is possible for the powerful to manipulate the courts and the law for their benefit. That is why people don’t care about their actions.

Elimination of nepotism and cronyism requires address in all prevention level and those includes strengthening the existing legal systems, increasing transparency and fairness in hiring processes to be based on merit in civil service which means the civil society especially the media has an important role to ensure accountability of the players in the system.

Prabin Adhikari(UID-0380845)-Reflecting on prevalent issues of nepotism and favoritism depicts the intense impact in governance and society of Nepal. Corruption, a major problem in Nepal not only erodes the effectiveness but also conserves culture of favoritism. It further increases the practices and traditions of favoritism and nepotism.

Acknowledging the historical context, specially the aftermath of monarchy fall, clears how political changeover can create environment aid to corruption. The word of democracy has often been concealed by the exploitation of political power or personal benefits. The practice of nepotism and cronyism are troubling. This practice has hindered rights of deserving candidates from getting employment in Public as well as private sectors in Nepal.  This practice erodes the public trust and also alienates skilled individuals who are left as undervalued and disillusioned.

Moreover, the number form transparency international depicts a broader societal frustration. Nepal in the low-ranking list in terms of corruption perception signals Nepal to deep rooted issue that demand immediate attention and reformation. It is crucial for Nepal to cultivate strong institutions and culture of accountability to combat these practices effectively.

Eventually, this reflection underscores the need for systematic change. Addressing corruption through transparent government is must for Nepal. In order to eradicate nepotism a strong voice should be raised by citizens, which gives warning signal and messages that public are aware about these practices. We can even ask for foreign assist in terms of financial and expertise assistance to minimize cronyism and nepotism. 

Sridhika Bhandari(UID-0380879)- A critical reflection on Nepal’s corruption and the role of nepotism and cronyism provides a historical and sociological insight into a country’s community ties and governance mechanisms. What amazes me is that all of these practices contribute to creating environments where personal affiliations take precedence over performance. By appointing relatives into important positions, there are high probabilities that such positions will be occupied by people who may not be most qualified to do so. As a result, stakeholders experience poor or unsatisfactory governance, leading to a high tendency for the populace to lose faith. When citizens observe resources have been allocated through the window of favoritism their faith in institutions erodes, and their sense of worth as active citizens diminishes. Furthermore, corruption preserves system-induced discrimination by granting positions to a limited number of people, resulting in prolonged poverty and exclusion of the poor and other vulnerable groups left out of opportunities. Encouraging transparency and accountability in leadership, putting skill above relationships, is crucial for society to advance. To build a better nation favoritism and nepotism should end and with that, everyone should be treated equally. This also provides an opportunity to highlight how crucial it is to give more people a voice in our society. Promoting a democratic environment means allowing everybody an opportunity to express their opinions, contributing in creating a fairer and more inclusive community. Therefore, there is a need for demand and fight for integrity, so that leaders do not abuse their power to exploit those weaker than them.

Saksham Shrestha(UID-0381033) -The Society of Nepal being a country with a high value of relation between people, the problem of corruption and cronyism has taken it place within the roots of the culture of the country. Nepotism and cronyism are both forms of favoritism in which people having power abuse it is giving advantages to family members, close friends, or friends, often without being sure if they deserve it or qualifications. Nepotism favors family members only, whereas cronyism extends to friends or close associates. Both practices can lead to unfair advantages in hiring, promotions, or awarding contracts, because individuals are chosen based on personal connections rather than competence

Nepotism and cronyism can be seen within the smallest things to highest levels of issue can there be seen the problem of nepotism within the country. Sectors from employment at public and private level, political positions, health sector, education sector and even religious area seems to have been affected by nepotism and cronyism. Nepotism in these sectors often favors certain groups of people where others are met with unfairness and injustice.  nepotism cases are often unheard or often neglected by the government due to it being seemed like it not that important, but it’s like the insect that slowly corrupts and slows the development of Nepal. It allows people to be in a position which they are not qualified for or gaining extra favors effects an organization effectiveness and Loss of Possible Effective personnel for that organization.

Denis Khadka(UID-0380942)-As I start digging into the deep underground of corruption in Nepal it appears just how much nepotism and cronyism are not systemic issues but something that is deeply embedded in our culture as well. As I sit reflecting on my own experiences and observations, the implications of these practices trouble me. We enjoy blaming politicians for these illiberal attitudes, but I know all too well that they can rear up to manifest themselves in our lives from career opportunities to even personal relationships.
I'm sure of nepotism being more two-faced stand.  I have seen many people much more talented than others get pushed to the side because they did not know so and so… it makes you wonder, at what price does this favoritism really come? This fact is pretty maddening, and also makes me feel rather powerless. How do we unseat a system that is so embedded in the fabric of our culture?

More broadly, cronyism is not just a question of individual relationships; it signals deeper social acceptance and an endorsement of parasitic economic activity. I have seen how this mentality results in a culture of complacency that cycles corruption into lives as something insignificant, or worse yet normal. Things like this weigh heavily on my mind and have got me thinking about the beliefs I hold, as well as some of my own habits. What questions do I ask to fight for fairness and transparency, but also understand that this is a system that does value loyalty over experience?

Eventually we were looking at ourselves and it put us in remember that inward change does not begin with another. Transparency and accountability, if we lend our shoulders for both to stand on the platform of honesty, we can add a lot towards culture of integrity which will empower all beginning from every citizen. The journey to inner realization underpins the significance of working together and systemic changes for Nepal. We must question our own positions and always advocate for ourselves

CONCLUSION

 In conclusion, combating cronyism and nepotism is essential to reducing corruption in Nepal and restoring public confidence in the government. It is only possible to establish anti-corruption measures so that legal actions complement civic responsibility and deny the use of personal relationships in attaining public service. Only through these efforts can we dream to build a more democratic and fairly grown society for improving the trends of political participation and for sustainable development. Realizing civil society and media involvement, bottom-franchise organizations may improve the supervisory activity to increase accountability and involve civil society in governance to cultivate ethic-based leadership. Furthermore, public awareness campaigns and education might encourage the public to raise their voices for accountability and raise awareness of such unethical behavior. Therefore, integrity rather than self-interest should be the top priority for organizations and public service. In addition to improving governance and changing the political situation of Nepal, this is crucial for raising the economic status and fostering communal relations, which will ultimately lead to a better future for all of its residents.

 Project timeline

• October 22:Researched on  The Role of Nepotism and Cronyism in Nepal’s Corruption Problem , gathered information and media files.
• October 24:Finalized blog and reviewed by every team members
• October 25:Final Review, Published a blogpost , shared on social media

References:

NIRAJ ACHARYA. (2024, April 23). The Dark Truth of Judicial System of Nepal ?#nirajacharya [Video]. YouTube. https://www.youtube.com/watch?v=POfaj2DuN7A

Anand Nepal. (2024, July 29). Karnali Chief Tilak Pariyar extreme nepotism: sons, daughter in law, grand sons, nephew on payroll [Video]. YouTube. https://www.youtube.com/watch?v=lxX26bIPAHM

NLT blog: Say no to nepotism and favoritism. (2021b, September 1). Nepal Live Today. https://www.nepallivetoday.com/2021/09/01/nlt-blog-say-no-to-nepotism-and-favoritism/

From Bribery to Nepotism: Fighting Back Corruption in Nepal. (n.d.). https://myrepublica.nagariknetwork.com/news/from-bribery-to-nepotism-fighting-back-corruption-in-nepal/

Nepal: Political puzzle in judiciary. (n.d.). Khabarhub. https://english.khabarhub.com/2021/28/222602/

What is the controversy about Chief Justice Rana? (2021, October 26). The Kathmandu Post. https://kathmandupost.com/national/2021/10/26/what-is-the-controversy-about-chief-justice-rana