Corruption and impunity are closely intertwined issues – each contributes to the other – and they are serious constraints to policy reform and effective performance across all of the Nepali government.  Corruption and impunity have become institutionalized within the Nepali state over decades by politicians and bureaucrats seeking personal enrichment and control over institutions. They have become legitimized through cultures of collusion across society at large.  

As Nepal transitions to a new federal system, there is frequent confusion due to a lack of norms and guidance, creating a serious risk for redistribution or re-entrenchment of corruption.   At the same time, a great deal of resistance to change within political parties and the bureaucracies can be linked to a reluctance to disturb long-established kleptocratic networks. Any work on accountability in the public policy sphere requires attentiveness to reducing discretionary space and informal arrangements in public administration.