Nepal’s Diplomatic Landscape: Strengthening Global Ties in the 21st Century

In the 18th century, King Prithvi Narayan Shah, who unified small scattered states to what is Nepal today, famously described Nepal as “a yam between two boulders” — the boulders being India and China. Shah’s statement remains relevant to date, with many scholars still using his reference in current geopolitical discussions. Following that saying, Nepal was often, and primarily, characterized as a landlocked nation between the two civilizations in the 19th and 20th centuries. However, now, in the new millennium, Nepal is gradually transitioning its image from a landlocked state to a land-linked nation, positioning herself as a bridge between the two giants. 

With a population of around 30 million, and situated in a strategic location, Nepal possesses many tools to leverage her ‘small’ power in the global arena. Nepal has a clear foreign policy vision based on neutrality, non-alignment and a commitment to international law in a world marked by turbulence and uncertainty. As the 21st century is often referred to as the Asian Century, the country is also faced with the opportunity to utilize this era to advance economic growth and fulfil her developmental aspirations.

There are multiple diplomatic avenues that can aid Nepal to engage her advantages to lead the foreign policy in the right direction. Enhancing economic diplomacy, engaging in Track II diplomacy, being a vocal advocate on climate change and promoting cultural exchanges are a few such key areas. Likewise, a development-oriented approach, greater focus on Nepali migrant labor, tourism promotion, and active public and soft diplomacy can also play a vital role. Nepal’s commitment to regionalism and multilateralism, along with strong engagement with the diaspora, will help position Nepal more effectively on the global stage. 

Political scientist Chandra D. Bhatta noted that the current century, marked by uncertainty, demands fresh impetus in the foreign policy operations of the nation-states. He emphasised that while foreign policy principles are shaped by geography, political history, regional and global interactions, domestic needs, and national interests, its core principles remain consistent. “These principles are often articulated through the constitution in the form of a state’s directive guidelines, considered as fundamentals of foreign policy.”

Strength of Non-Alignment and Multilateralism 

The fundamental objective of Nepal’s foreign policy, as per the constitution, is to enhance the dignity of the nation by safeguarding sovereignty, territorial integrity, independence, and promoting economic wellbeing and prosperity of Nepal. It is also aimed at contributing to global peace, harmony and security. The Foreign Policy- 2077 document also outlines various aspects of the country’s foreign policy for the future. 

Article 51 of the constitution clearly states that Nepal’s foreign policy should be independent and based on the Charter of the United Nations, non-alignment, the principles of Panchsheel, international law, and global peace norms. 

Reiterating the same, former Chief of the Army Staff of the Nepali Army, General Rajendra Chhetri, stated that Nepal’s foreign policy is based on principles of Panchsheel. “Nepal is surrounded by two rising powers – India and China, and shares very close and cordial relations with both countries,” he said, adding, “In the current era, global attention is focused on these two nations as they rapidly advance toward becoming global powerhouses, strengthening both economically and militarily.”

General Chhetri also emphasized that Nepal, as a close neighbour, can benefit from geographical proximity to India and China, as its diplomatic landscape is strategically unique given its geo-strategic location.

Nepal has actively contributed to global diplomacy, serving as a UN Human Rights Council member in 2018-2020 and 2021-2023. The country has also chaired and participated in several UN committees, roles as force commanders and deputy force commanders in peacekeeping missions. Today, the Himalayan nation is a top contributor to UN peacekeeping, demonstrating its commitment to global peace through defense diplomacy.

On the regional front, Nepal is the chair of the South Asian Association for Regional Cooperation (SAARC), and an active member of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). Additionally, it is a member of the Asian Cooperation Dialogue and a dialogue partner of the Shanghai Cooperation Organisation (SCO). These engagements highlight Nepal’s role in fostering regional harmony and strengthening diplomatic ties in South Asia and beyond.

Climate Change and Sagarmatha Sambaad 

Nepal has been experiencing severe effects of climate change, with melting glaciers, and an increased threat to the livelihood of people living in this region. Interestingly, despite being a minimal contributor to carbon emissions and environmental pollution, the Himalayan nation faces disproportionate consequences of climate change. 

To address this issue, Nepal needs to amplify its voice, and be seen and heard more in the global community. As part of this effort, the Government of Nepal is set to host the first ever edition of Sagarmatha Sambaad between May 16 and 18, in Kathmandu. Prime Minister of Nepal K.P. Sharma Oli has stressed that the dialogue will primarily focus on climate change, particularly in the context of mountains. He has said that climate change is not only a part of the poly-crisis that the world faces today. “It could equally morph into a ‘perma-crisis’ that would hover above the heads of coming generations.”

Transit and Labor Diplomacy

Nepal’s foreign policy places a strong emphasis on economic diplomacy, which involves the employment of economic resources in pursuit of a specific foreign policy objective, particularly advocating the business interests of the sending state. Although Nepal introduced the idea of economic diplomacy in the mid-1990s, the Ministry of Foreign Affairs recently established a dedicated division to oversee its functions. 

The policy document has also launched the term ‘transit diplomacy’ recognizing Nepal’s strategic location between two of the world’s fastest-growing economies. 

Wang Peng, a research fellow at the Institute of State Governance, Huazhong University, Wuhan, suggested that Nepal should position itself as a port, rather than being comfortable with the idea of being a bridge. “This way, Nepal can benefit from both her neighbours as China and India would first seek Nepal’s permission to use its ports for export and import.” He explained that goods from China’s Tibet Autonomous Region could transit through Nepal to India, and similarly, goods from Indian cities could pass through Nepal to Tibet, as this route is much shorter and more efficient.

Nepal’s labor diplomacy has become increasingly important as remittances contribute to nearly 25% of Nepal’s GDP. Therefore, it is essential for Nepal to safeguard her workers employed in various foreign countries, ensure fair wages, and their eventual return with valuable skills and experience to contribute to the nation’s growth.

Likewise, as countries across the globe are prioritizing public diplomacy and soft power as important diplomatic tools, Nepal too must strategically enhance its global presence in cultural, educational, and people-to-people diplomacy.

Nepal’s participation in United Nations Peacekeeping Operations (UNPKOs) has strengthened its global reputation as a peace-loving nation. Furthermore, the ‘Zone of Peace’ proposal, introduced by late King Birendra, reflected Nepal’s commitment to peace, non-proliferation, and a nuclear-free South Asia.

Engaging Diaspora and Cultural Tourism 

The diaspora community or the Non-Resident Nepalis (NRNs) are yet another strong element of Nepal’s diplomacy. The Ministry of Foreign Affairs operates a Brain Gain unit to engage and utilize the skills and expertise of the Nepali diaspora. The unit is designed to recognize and foster contributions to Nepal’s social and economic progress by the Nepali experts and professionals around the world.

Jiba Lamichhane, an entrepreneur and former president of the Non-Resident Nepali Association (NRNA), states that migration was traditionally seen as a ‘brain drain.’ However, he was quick to emphasize that this perception is gradually shifting. “With advancements in information technology, a person’s geographical location is no longer as important as it once was,” he said. Lamichhane stresses that people can now make intellectual and economic contributions regardless of where they live. “This era is the era of ‘brain gain’ and ‘brain circulation.’” 

On the other hand, cultural diplomacy is also a vital part of a nation’s foreign policy. Nepal, as the birthplace of Lord Buddha, and home to revered Hindu sites like Pashupatinath and Muktinath, holds immense cultural and religious significance. There is a strong possibility of developing Lumbini, the birthplace of Buddha, into a world peace city – a centre of spirituality and peace.

Given its rich cultural heritage and UNESCO sites, Nepal already has a strong foundation for cultural diplomacy that could attract cultural and spiritual enthusiasts from around the world.

Political Science scholar Professor Meena Vaidya Malla highlighted the need for evolved diplomatic capabilities to strengthen Nepal’s presence in the international community. Foreign policy and diplomacy go hand in hand, Malla stated, “Nepal must enhance its ability to negotiate, bargain, and engage effectively with other nations while safeguarding its national interest and sovereignty.”

Nepal’s Priorities and Engagements 

A perspective paper titled Nepal’s National Interests, Foreign Policy and Strategic Affairs, published by the Policy Research Institute and authored by former Foreign Secretary Madhu Raman Acharya outlines the layers of engagement Nepal should develop, both within its neighbourhood and beyond. Acharya points out that Nepal must prioritize its diplomatic efforts based on strategic importance and investment in foreign relations. 

According to him, Nepal’s external engagement should follow this order of significance: immediate neighbours (India and China), big powers (USA, UK, France, and Russia), major partner countries, remittance generating countries, the extended neighbourhood, UN and other international and regional organizations, and other countries respectively. 

The author mentions that though our past policies of ‘equidistance’ have paid off to some extent, our neighbourhood policy is not just about India and China. Acharya states that since we cannot avoid them, we should develop a policy framework of our own to engage ourselves in the neighbourhood.

Bishow Parajuli, who has four decades of experience in development, humanitarian work, multilateral affairs, and management at the UN, stated that Nepal is at the forefront of expanding global ties and strengthening its diplomatic landscape. “For a country like Nepal, the strength of its ties and partnerships should matter more than just expanding formal diplomatic relations. The focus should be on strengthening investment, trade, and development support to benefit Nepal,” he added.

Parajuli stated that Nepal should continue to play a key role in global peace through peacekeeping and other strategic areas such as human rights, climate change, and sustainable development. 

As the influence and power of her neighbours expand in the current geopolitical era, Nepal can work on its potential to evolve into a transit state, and as a ‘dynamic bridge’ between its two neighbours, which together have a population of 2.7 billion. 

During his state visit to Nepal in 2019, President Xi Jinping assured that China would support Nepal in transforming from a ‘landlocked’ to a ‘land-linked’ country. Additionally, Nepal and China have agreed to work on developing the Trans-Himalayan Multi-Dimensional Connectivity Network after signing the Belt and Road Initiative (BRI) in 2017, and finalizing the framework for BRI cooperation in 2024.

To achieve this, Nepal must enhance her connectivity through air, road, railways, inland waterways, information and technology, transmission lines, and petroleum pipelines.

Nepal must actively harness economic diplomacy, multilateralism, and strategic connectivity to secure its national interests in an increasingly interconnected world. Strengthening global partnerships, investing in infrastructure, and leveraging its unique geographic position are the critical elements that Nepal must engage in to transition into a key player in regional and global affairs, ensuring sustainable growth and prosperity in the 21st century.