Foreign Policy of Nepal as a Small Power
Date
2025
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Abstract
The purpose of this study is to examine Nepal’s foreign policy from the perspective of small power theory. Small powers must navigate asymmetrical power structures in international relations and are characterized by their limited diplomatic, military, and economic capacities. Despite significant changes following the country’s transition to democracy, Nepal’s foreign policy has demonstrated remarkable resilience. Its active participation in various multilateral forums has been recognized as a notable achievement in the realm of foreign policy. However, all aspects of international relations—including military, economic, technological, diplomatic, and alignment systems—have undergone substantial transformations. Consequently, the global balance of power has shifted, enhancing Nepal’s geostrategic significance, primarily due to the rise of China and India as competing global powers.
This research work employs a qualitative research design, utilizing descriptive, analytical, and exploratory methods to investigate Nepal’s foreign policy from multiple perspectives. For the analysis, data were gathered from secondary sources, including constitutional provisions, official documents, treaties, party manifestos, parliamentary debates, academic literature, expert opinions, and media reports. A desk review, content analysis, and note transcribed methods were comprehensively employed for data collection.
Nepal is a medium-sized country; however, it is often regarded as a small state due to limitations in its economic, military, diplomatic, and external affairs, as well as its geographical position between two large neighbors. Despite these challenges, Nepal upholds its identity as a sovereign and independent nation with a rich and ancient civilization. Its strategic location at the center of South Asia, active participation in regional and international organizations, and its position between two rising powers are key factors contributing to its status as a small power. According to the study, Nepal’s historical heritage as an independent country and its geostrategic location significantly influence its foreign policy. Despite its limited resources, Nepal’s foreign policy has demonstrated flexibility, transitioning through various approaches—non-alignment, isolation, equiproximity, neutrality, and strategic balancing—all aimed at preserving its independence and sovereignty. However, the coherence and effectiveness of its foreign policy have been compromised by internal political dynamics characterized by ideological polarization and frequent vi policy shifts with changes in government. Additionally, a centralized and individualized policy-making culture has hindered the institutional capacity of Nepal’s Ministry of Foreign Affairs. The study also highlights Nepal’s vulnerability to both conventional and unconventional security threats, such as political unpredictability, frequent external intervention, and economic instability. It emphasizes that the effectiveness of Nepal’s foreign policy will rely on strengthening its institutional framework, enhancing policy coherence, and adapting to an evolving global geopolitical landscape, particularly in light of increasing tensions among major global powers.
Nepal’s distinct geopolitical position—often referred to as a “yam between three boulders”—with China as a rising superpower, India as a traditional ally, and the expanding influence of Western powers and donors—makes it a small power despite certain limitations. Nepal still continues to be dependent on its neighbors and international partners, while also playing a vital role in their strategic objectives. Therefore, Nepal needs to handle these intricate relationships through a non-aligned, balanced foreign policy that prioritizes its national interests. To achieve this, it becomes essential to foster national consensus among stakeholders, adopt a research driven approach to policymaking, strengthen institutional frameworks, and avoid security alliances that could jeopardize its relationships with neighboring countries and other international partners. By doing so, Nepal can effectively address the evolving geopolitical challenges and maintain its identity as a sovereign, independent, and stable country.
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Keywords
Foreign Policy, Small power, Global powers