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Neo-fascism, a modern revival of authoritarian ideologies characterized by nationalism, anti-liberalism, and the erosion of democratic norms, is increasingly shaping global politics. Once associated with the authoritarian regimes of the early 20th century, such as Benito Mussolini’s Italy, neo-fascism is now emerging in various parts of the world, including Nepal. Despite its democratic framework, Nepal is witnessing the rise of neo-fascist elements within its political parties and leaders, threatening core democratic principles and minority rights.

While South Asia has had limited direct exposure to European fascism, authoritarianism, nationalism, and militarism have manifested regionally in troubling ways. Countries like India, Pakistan, Sri Lanka, and Nepal exhibit patterns resembling neo-fascism, challenging democratic norms and inclusivity. In Nepal, both old and emerging political parties and their leaders are adopting tactics and ideologies reminiscent of fascism, undermining the nation's democratic ethos.

Nepal, with its fragile democracy and history of political instability, provides fertile ground for the rise of neo-fascist tendencies. Political parties—both traditional and new—have displayed authoritarian traits, employed exclusive nationalist rhetoric, and sought to centralize power at the expense of democratic institutions and minority rights.

A remnant of the bygone royal regime, Rastriya Prajatantra Party (RPP) embodies a yearning for monarchical centralization. The RPP often calls for the restoration of a Hindu state, promoting exclusionary nationalism that marginalizes Nepal’s religious and cultural diversity. Its leaders glorify the monarchy as a symbol of unity and stability, reminiscent of fascist ideals of a strong, centralized authority. The party’s resistance to federalism and advocacy for a unitary state align with neo-fascist tendencies of eroding regional autonomy.

The Communist Party of Nepal (Maoist Centre), under the leadership of Pushpa Kamal Dahal (Prachanda), has also exhibited authoritarian characteristics. During the decade-long insurgency, the Maoists relied on militarization and the glorification of Prachanda’s leadership, fostering a cult of personality that echoes Mussolini’s tactics. Even in the post-insurgency period, the party’s hierarchical structure and intolerance for dissent within its ranks reveal authoritarian tendencies. The party's leaders have used populist rhetoric to consolidate power while sidelining opposition voices, undermining democratic discourse.

In recent years, concerns have grown over the influence of neo-fascism within Madhes-based political parties in Nepal. These parties, which represent the Madhesi community, have historically advocated for marginalized groups’ rights and greater autonomy. However, some factions are increasingly adopting ultra- regionalist, authoritarian ideologies, characterized by aggressive regionalism, ethnic superiority, and exclusionary politics. This shift threatens the inclusive federalism enshrined in Nepal's constitution, raising fears about undermining democratic values and political pluralism. As these parties navigate their identity and power, it is crucial for Nepal to ensure that democratic principles and federalism are upheld amidst rising nationalist pressures.

Emerging political figures like Rabi Lamichhane and his Rastriya Swatantra Party (RSP) have capitalized on populist and nationalist sentiments. Lamichhane’s rhetoric often targets foreign influence, invoking fears of national sovereignty being undermined. While this approach garners public support, it risks fostering xenophobia and scapegoating minorities, particularly the Madhesi and indigenous communities. This exclusive nationalism, combined with Lamichhane’s attempts to position himself as a strong leader, reflects neo-fascist tendencies.

Even mainstream parties like the Nepali Congress (NC) and the Communist Party of Nepal (Unified Marxist-Leninist) are not exempt from neo-fascist tendencies. Leaders like KP Sharma Oli of the UML have frequently used divisive nationalism to strengthen their hold on power. During his multiple terms as prime minister, Oli oversaw a growing centralization of authority, efforts to undermine parliamentary processes, and the sidelining of provincial governments. His frequent use of national security threats to justify his policies echoes neo-fascist tactics of consolidating power through fear and division.

Neo-fascism in Nepal often manifests in exclusive nationalist rhetoric that sidelines ethnic, linguistic, and religious minorities. Political parties frame federalism and decentralization as threats to national unity, undermining the representation and autonomy of Madhesi, Dalit, and indigenous communities. The opposition to inclusive policies fosters a narrow vision of national identity, eroding Nepal’s rich multicultural heritage.

The suppression of dissent is another hallmark of fascism evident in Nepal. Successive governments have restricted media freedom, targeted journalists and activists, and leveraged cyber laws to curb online expression. These actions echo tactics used by neo-fascist regimes globally to silence opposition and control public discourse. The increased surveillance of civil society groups and restrictions on peaceful protests further signal a drift toward authoritarianism.

Nepal’s political leaders frequently invoke national security concerns to justify expanding military and police powers. For example, the government’s decision to militarize border areas under the pretext of protecting sovereignty has been criticized as overreach. Similarly, the increased reliance on security forces to manage civil unrest fosters a climate of fear and normalizes authoritarian measures.

Social media has become a powerful tool for spreading nationalist rhetoric and neo-fascist ideologies in Nepal. The widespread use and abuse of platforms have fueled the rise of figures like Kathmandu Mayor Balendra Saha and RSP leader Lamichhane. Political leaders and parties leverage platforms such as Facebook and Twitter to amplify ultra-nationalist messages, frequently targeting minorities and critics. The swift spread of misinformation and polarizing content divides society, providing fertile ground for neo-fascist ideas to flourish.

The rise of neo-fascism in Nepal threatens its democratic framework, inclusivity, and civil liberties. Continued erosion of democratic institutions, suppression of dissent, and centralization of power could undermine Nepal’s progress toward becoming a stable, pluralistic society.

Moreover, Nepal’s geopolitical position between India and China makes rising nationalism particularly risky. Anti-foreign rhetoric could strain diplomatic relations, disrupt trade, and hinder regional cooperation.

As Bertrand Russell warned, fascism thrives in times of unrest, using propaganda and nationalism to scapegoat minorities and consolidate power. Nepal’s path forward requires vigilance, an informed citizenry, and a robust civil society. Political parties must commit to democratic norms, promote inclusivity, and resist the temptation to exploit nationalist sentiments for short-term gains.

Strengthening democratic institutions, ensuring media freedom, and fostering interethnic dialogue are critical to countering neo-fascist tendencies. Nepal must safeguard its democratic achievements and uphold the values of pluralism, equity, and justice for all its people.

Nepal Rastra Bank (NRB) introduced a policy requiring payment systems like WeChat Pay, Alipay and PayPal to register in Nepal in 2019 after these platforms started handling large transactions worth hundreds of thousands of rupees illegally.

Although many operators registered in Nepal and are operating legally as per the established regulations, there are still complaints that these platforms are still handling large transactions by violating the regulations. Police have arrested several people conducting such illegal payments multiple times.

In 2018, 2021 and 2023, police made several arrests to nab people conducting illegal transactions through WeChat Pay. Those arrested for such transactions in 2018 included restaurant owners and Nepali sellers working for multinational companies, according to police. In 2021, police arrested some Nepalis and Chinese nationals for conducting transactions worth millions of rupees through WeChat Pay. Last year, police arrested a few people from a restaurant in Bouddha for sending hundreds of thousands of rupees to China through WeChat Pay.

Following the police action, the Department of Revenue Investigation (DRI) also took interest into these cases and conducted its own investigation. An official of the DRI said that an investigation conducted about five years ago concluded that transactions through WeChat Pay were causing revenue evasion worth around Rs 50m.

Chandi Prasad Ghimire, director general of DRI, said that they have filed 30-35 complaints related to foreign exchange misappropriation through WeChat Pay. “Some cases were filed against people arrested by the police, while some were filed following our investigation,” Ghimire said. He urged businesses not to evade revenue through WeChat Pay or any other means and to follow legal procedures.

Although banks like NMB Bank and Machhapuchchhre Bank support QR-based WeChat Pay payments in Nepal, illegal payments are still occurring through WeChat Pay QR codes issued in China. This has caused significant economic damage to the country as transacted amounts go directly to Chinese bank accounts.

The latest case from the Central Investigation Bureau (CIB) of Nepal Police confirms that illegal fund transfers through WeChat have not stopped. SP Sudhir Shahi of CIB said the bureau cannot divulge further details about these cases as investigations are ongoing.

WeChat Pay permitted to do transactions

“Chinese traders were earlier using WeChat Pay for transactions in Nepal. They would send money directly to Chinese bank accounts,” a Nepali trader said. “Although authorities brought laws to stop such transactions, we hear this is still happening.”

The proliferation of such illegal activities led to foreign exchange misappropriation. This attracted the central bank’s attention. Consequently, NRB’s Foreign Exchange Management Department issued a circular in May 2019, terming WeChat Pay illegal and directing people not to use it. The central bank stated in the circular that using payment systems linked to foreign payment systems (like WeChat Pay, Alipay and POS machines issued from foreign countries, etc.) without Nepal Rastra Bank approval was illegal.

Subsequently, the central bank made provisions to recognize WeChat Pay through Payment and Settlement Regulations. After this, First Pay Technology Pvt Ltd applied for a Payment System Operator (PSO) license in Feb 2020 with a paid-up capital of Rs 100m. NMB Bank and Machhapuchchhre Bank also received licenses. First Pay entered an agreement with Tencent Company of China to bring WeChat Pay to Nepal legally. First Pay and these two banks have over 6,000 merchants including hotels and restaurants in tourist areas across the country.

Nepal Bankers Association Chairperson and Machhapuchchhre Bank CEO Santosh Koirala said it is necessary to bring such illegal payments into the legal framework.

Nepal Rastra Bank Spokesperson Ramu Paudel insisted that illegal payments are not happening now as systems are in place for WeChat Pay transactions to remain within the country. According to him, the payment system was established targeting Chinese tourists specifically for transparent transactions.

Similarly, AliPay can now process payments through all banks via Nepal Clearing Hosuse’s Nepal Pay. Foreign visitors can open convertible foreign currency accounts at Nepali banks and financial institutions valid for their visa duration. This facility expires after their visa ends.

Higher risk of illegal payments in Chinese tourist hubs

Thamel, Lumbini, Patan, Jhamsikhel, Bouddha and Rasuwa are some of the places frequented by Chinese tourists in Nepal. WeChat Pay stands have been installed at hotels, restaurants and travel agencies in these areas, according to Koirala. However, there still is risk of foreign currency misuse as Chinese service providers can use WeChat Pay QR codes issued in China to receive payments from Chinese nationals for the services they provide in Nepal.

Opposition parties have recently intensified their criticism of the government. They have raised issues such as the ruling coalition's attempts to amend the constitution and the government's reluctance to convene the winter session of parliament. Additionally, they have criticized the administration for bypassing standard legislative procedures by introducing ordinances.

The government’s move to introduce constitutional changes has sparked significant debate. When the two ruling parties—the CPN-UML and the Nepali Congress—formed an alliance, they signed a seven-point agreement that included revisions to various constitutional articles as a key component. The ruling parties argue that these amendments are necessary to ensure stability at both the central and provincial levels, which they view as a prerequisite for effective governance.

One major focus of these proposed reforms is the electoral system. The Congress and UML have proposed replacing the current Proportional Representation (PR) system, which they claim fosters instability. Under the current arrangement, 165 members of the Lower House are elected through the first-past-the-post (FPTP) method, while 110 are chosen through PR. The PR system allows smaller parties with fewer FPTP seats to wield significant influence in government formation. The proposed reforms include shifting the PR system to the National Assembly and electing all House of Representatives members via FPTP. They also suggest reducing the total number of PR seats from 110 to 60.

However, these proposals have faced strong opposition. The Maoist Centre and Madhesi parties have expressed concerns over the potential impact of such changes. The Maoist Centre, in particular, argues that eliminating the PR system from the House of Representatives—or relegating it to the National Assembly—undermines the foundational principles of Nepal's federal democratic republic, which aims to protect the rights of marginalized communities.

Madhesi parties have also opposed the proposed reforms, especially suggestions to raise the electoral threshold for national party eligibility from 3 percent to 5 or 6 percent. They argue that such changes would significantly disadvantage smaller and regional parties, potentially reducing their representation in parliament. Further, the ruling parties’ plan to streamline Nepal's governance structure—by reducing the total number of federal, provincial, and local representatives—has drawn criticism. Proposals to lower the number of local units from 753 to 500 and provincial lawmakers to save resources have left smaller parties feeling excluded and marginalized.

Despite their ambitions, the ruling parties face a significant hurdle: they lack the two-thirds majority in parliament required to pass these constitutional amendments. Meanwhile, the opposition has accused Prime Minister Oli’s administration of deliberately delaying the winter session of parliament, which is nearing its end. By avoiding parliament, the government has enacted major laws through ordinances, angering opposition parties such as the Maoist Centre and others.

These ordinances, which address issues related to investment, business, and land, have been welcomed by the corporate sector but criticized by opposition parties for undermining democratic norms. The opposition fears that the administration's reliance on ordinances over parliamentary debate sets a dangerous precedent for democracy.

One particularly contentious issue involves a potential ordinance that could split smaller parties facing internal discord. This legislation could result in parliamentarians returning to their original parties, weakening smaller factions like the Unified Socialist. For instance, four or five lawmakers might leave the Unified Socialist and rejoin the UML if this ordinance is implemented. Similarly, the Rastriya Swatantra Party (RSP) could face internal splits due to tensions between its leadership and estranged members.

The government’s delay in convening the winter session is also seen as an attempt to avoid parliamentary confrontation over sensitive issues, such as the legal troubles facing RSP Chair Rabi Lamichhane. By delaying the session, the administration hopes to resolve Lamichhane’s case and shield itself from opposition attacks.

These developments have widened the rift between the government and opposition parties. However, the opposition currently lacks the numbers to pose a significant threat to the administration. For now, the government remains secure, though political tensions continue to simmer.

The author is a freelance journalist

As in his first tenure (2017–2021), US President Donald Trump has signaled his intention to adopt an aggressive Indo-Pacific Strategy (IPS) to counter China's growing influence in the region. While his administration’s exact approach remains to be seen, Trump’s actions thus far suggest a more unilateral and hardline strategy compared to his predecessor, Joe Biden, who focused on fostering partnerships and multilateral cooperation in the region.

A key question is whether Trump will continue Biden’s approach of strengthening ties with allies and regional partners or pivot to a more isolated stance, prioritizing direct US action. Another point of uncertainty is whether his administration will focus on a military-centric strategy or emphasize economic engagement with countries in the Indo-Pacific. But one thing appears certain: the Trump administration's IPS strategy is likely to adopt a more confrontational tone. This approach could aggravate not only Beijing but also some US partners in the region.

Shortly after taking office, US Secretary of State Marco Rubio held a high-profile meeting with foreign ministers from Australia, India and Japan—the member nations of the Quadrilateral Security Dialogue or "Quad." A statement from the US State Department emphasized the group's shared commitment to a “"Free and Open Indo-Pacific,” where democratic values, rule of law, sovereignty, and territorial integrity are upheld.

The statement underscored the Quad's collective stance against unilateral actions that attempt to alter the regional status quo through coercion or force. “Our four nations maintain our conviction that international law, economic opportunity, peace, stability, and security—especially in the maritime domain—are essential for the prosperity of the Indo-Pacific region," the statement declared. It also highlighted commitments to strengthening regional maritime, economic, and technological security in response to rising threats, while promoting reliable and resilient supply chains. India, as the next host of the Quad Leaders' Summit, is set to play a pivotal role in steering the group's agenda.

China has criticized the Quad, labeling it as an attempt to encircle Beijing and undermine its strategic interests. China's opposition to the Quad's initiatives could escalate tensions in the region, especially as the Trump administration doubles down on its Indo-Pacific focus.

The Indo-Pacific Strategy introduced by the Biden administration in 2022 emphasized collaboration with India and other regional groupings to promote stability in South Asia. During Biden's tenure, India-US relations saw a significant deepening of their strategic partnership. However, Trump's return to power could strain this partnership, particularly due to his hardline stance on tariffs and trade. Trump has already suggested the possibility of imposing a 100 percent tariff on imports from BRICS nations, including India—a move that could severely impact the trade relationship between Washington and New Delhi.

Trump's approach to China is also likely to exacerbate existing tensions. Having already initiated a trade war with Beijing during his first term, Trump has signaled his intent to escalate economic pressure on China. In a recent press conference, he hinted at imposing a 10 percent across-the-board tariff on all Chinese goods as early as Feb 1. Such a move would likely lead to further deterioration in US-China relations, with significant ramifications for the global economy.

Beyond trade, Trump’s previous decisions—such as withdrawing from the Paris Climate Accord and the World Health Organization—have raised concerns about the US’ role in addressing global challenges. These moves could undermine US credibility and influence in the Indo-Pacific, where collaborative efforts on climate change, public health, and sustainable development are crucial.

Despite these challenges, Trump is expected to continue working with India to counter China's influence in the region. Reviving talks with North Korea, a hallmark of his first term, may also resurface as a diplomatic priority. However, Trump’s stance on Taiwan, a critical flashpoint in US-China relations, remains uncertain.

Nepal, a strategically located country in South Asia, is unlikely to remain unaffected by these geopolitical shifts. Nepal’s relations with both India and China are integral to its foreign policy, and any significant changes in US strategy toward these powers will have a ripple effect on Kathmandu's diplomatic calculus. For instance, further deterioration in US-China relations could constrain Nepal's ability to navigate its relationships with both nations.

Additionally, Trump's policies on global issues such as climate change, health and minority rights are likely to impact Nepal directly. The country, which is already grappling with the challenges of climate change, relies on international cooperation and funding to implement mitigation and adaptation strategies. A more isolationist US approach could hinder Nepal’s efforts in these areas. Changes in US funding or support for health services and rights related to sexual and gender minorities could also have social and economic repercussions.

As Trump’s administration takes shape, it will be crucial to monitor how his Indo-Pacific Strategy evolves and its implications for the region and beyond.