The frequent and uncontrolled incidences of conflicts of interest have allowed kleptocracy to flourish unchecked. Conflicts of interest are particularly rampant in public procurement, which accounts for one-third of Nepal’s GDP expenditure and involves extensive transactions across all levels of government.
The current legal and regulatory framework designed to separate private business interests from public institutions is weak, particularly at the sub-national level. This weakness enables both the abuse of public authority by those entrusted with representing public interests and the exploitation of opaque decision-making processes by kleptocratic networks for private gain. The lines between public duty and personal interest are further blurred by the increasing number of businesspeople who have secured elected positions across all three levels of government.
Decisions that are driven by personal gain rather than public benefit lead to substandard outcomes and inefficiencies. Ultimately, it is the public that bears the social, economic, and safety costs of poorly executed projects and initiatives. Communities are left with defective infrastructure, delayed services, and wasted resources, which undermine trust in governance and exacerbate societal inequalities.
Niti Foundation is supporting the establishment of rules-based approaches to regulate the interests of public officials and lawmakers, furthering the objectives of good governance as envisioned in the 2015 Constitution and advancing citizens’ aspirations for a more accountable and transparent government.