Papers presented at the conference on "Federalism in Nepal: Lessons from Indian Experience", held during 30-31 August 2012.

This book draws on experiences in developing countries to bridge the gap between the conventional textbook treatment of fiscal decentralization and the actual practice of subnational government finance. The extensive literature about the theory and practice is surveyed and longstanding problems and new questions are addressed. It focuses on the key choices that must be made in decentralizing, on how economic and political factors shape the choices that countries make, and on how, by paying more attention to the need for a more comprehensive approach and the critical connections between different components of decentralization reform, everyone involved might get more for their money.

This comprehensive book critically analyzes the successes and failures of federalism in India, Pakistan, Malaysia, Nepal and Myanmar for the political accommodation of ethno-regional diversity and assesses their comparative democratic significance for other countries in Asia. This revised new edition incorporates updated demographic, religious and linguistic data for the case study countries and examines some of the major changes that have taken place in formally federal states since 2010, including the 18th Amendment of the Constitution in Pakistan in 2010, which gave a major turn to decentralization by empowering the provinces; the new federal democratic Constitution that was introduced in Nepal in 2015; and the abolition of the Planning Commission and the National Development Council in India. The author thematically examines the growing tensions between nation and state-building in ethnically plural societies; modes of federation-building in Asia; persistent ethnic tensions in federations and the relationship between federalism and democracy; and federalism and decentralization. The book will be of use to advanced undergraduate and postgraduate students of Asian politics, comparative federalism and modern Asian political history and institutions, as well as policy makers on ethnic conflict regulation and peace studies and stakeholders in ethnic power-sharing and political order.

"While there is extensive knowledge about how to design fiscal decentralization policies, considerably less is understood about how a decentralization program should be sequenced and implemented. Countries embarking on decentralization often struggle with decisions about the essential components of decentralization, including the order of an introduction of decentralization policies, the number of years necessary to bring a full program on line, and the components of the transition strategy. The authors argue that the sequencing of decentralization policies is an important determinant of its success. The consequences of a poorly sequenced decentralization program can range from minor delays and complications to ineffectiveness and subsequent failing support of decentralization efforts, macroeconomic instability, and fundamental failure in public sector delivery. At a minimum, the strategy of "making it up as we go" will not lead to the same structure of decentralization as will a planned strategy. The paper raises two questions: First, is there an optimal sequencing for decentralization policies and implementation? The answer is that there is, and that following these sequencing rules can reduce the costs and risks of implementing fiscal decentralization. Second, to what extent do countries follow these optimal sequencing rules? The answer is, in general, they do not. The gap between theory and practice is a result of the complexity of sequencing design, which discourages fiscal planners from implementing the full process. In addition, sequencing requires a sustained discipline and vision for its implementation, as well as overcoming pressures from political actors, especially in developing countries. "-- World Bank web site.

Battles of the New Republic: A Contemporary History of Nepal is a story of Nepal's transformation from war to peace, monarchy to republic, a Hindu kingdom to a secular state, and a unitary to a potentially federal state. Part-reportage, part-history, part-analysis, part-memoir, and part-biography of the key characters, the book breaks new ground in political writing from the region. With access to the most powerful leaders in the country as well as diplomats, it gives an unprecedented glimpse into Kathmandu's high politics. But this is coupled with ground-level reportage on the lives of ordinary citizens of the hills and the plains, striving for a democratic, just and equitable society. It tracks the hard grind of political negotiations at the heart of the instability in Nepal. It traces the rise of a popular rebellion, its integration into the mainstream, and its steady decline. It investigates Nepal's status as a partly-sovereign country, and reveals India's overwhelming role. It examines the angst of having to prove one's loyalties to one's own country, and exposes the Hindu hill upper-caste dominated power structures. Battles of the New Republic is a story of the deepening of democracy, of the death of a dream, and of that fundamental political dilemma - who exercises power, to what end, and for whose benefit.