Abstract

This study explores the restructuring of Nepali into a federal system and examines the impact of geopolitics on this transition. The research addresses the question: How has Nepal’s geopolitical context influenced its federal restructuring process? The study’s problem statement focuses on the complexities of decentralizing power in a geopolitically sensitive region, where balancing national sovereignty and regional autonomy is crucial. The objective is to analyze how federalism and geopolitics have shaped Nepal's governance transformation. Using a qualitative research design, the study employs secondary data analysis from legal documents, historical records, and scholarly articles, following APA format. The findings indicate that Nepal’s transition to federalism was driven by both internal factors ethnic diversity, historical exclusion of marginalized communities and external geopolitical pressures from neighbouring India and China. The delegation of power to provincial governments has improved local governance, but challenges remain, particularly in managing financial autonomy and addressing ethnic divisions. The conclusion highlights that federalism was necessary for Nepal to address its internal diversity and geopolitical realities, ensuring a more inclusive and sustainable governance structure. Nepal’s federal restructuring is a significant case of how geopolitics and governance models interact in state-building efforts.