The situation has become so severe that even conflict zones like the Russia-Ukraine war are increasingly viewed as viable destinations
The root of this crisis lies in the country's persistent instability, marked by frequent government changes, pervasive corruption, and miss allocating of budgets.
Driven by the dire lack of economic opportunities at home, an estimated 3,000 Nepalese youth are compelled to leave the country every day to seek work abroad. The situation has become so severe that even conflict zones like the Russia-Ukraine war are increasingly viewed as viable destinations, with Russia recruiting as many as 15,000 Nepalis to fight in its war. Another stark example of this desperation is the plight of eighty-three Nepali youths who arrived in Kuwait in 2022.Upon arrival, their passports were seized by their employers, leaving them trapped without the means to return home or secure compensation for their labor. The root of this crisis lies in the country's persistent instability, marked by frequent government changes, pervasive corruption, and miss allocating of budgets. To prevent the collapse of democracy, it is crucial to address the systemic failures of current political practices and implement radical reforms.Foremost among these is the urgent implementation of citizen engagement in the budget formulation process.
Bureaucratic inefficiencies and political maneuvering skew budgetary processes towards personal and partisan gain, undermining equitable development. Politicians often channel funds to projects that secure votes rather than addressing national priorities, resulting in a faulty allocation of taxpayers’ money that benefits a select few. This patronage system leads to the neglect of critical sectors such as healthcare, education, and infrastructure. Moreover, the lack of transparency and robust oversight mechanisms allows for the misappropriation of funds, further eroding public trust in government institutions. Such practices not only waste valuable taxpayers' money but also impede long-term development goals, creating a cycle of corruption that weakens the very foundations of representative governance.
Nepal, a nation that proudly upholds its democratic ideals, now finds itself at a critical juncture where the integrity of its democratic framework is increasingly questioned by its younger generation. On paper, Nepal boasts the hallmarks of a democracy—regular elections, multiple political parties, and a constitution enshrining democratic principles. Yet, in practice, these ideals often starkly contrast with reality, marred by corruption and nepotism, rendering meritocracy a mere mockery. To make matters worse, Nepalese people are extremely frustrated with high tax rates comparable to those in Scandinavian countries, yet the public services they receive often resemble those found in war-torn countries like Syria or Somalia.
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At the heart of Nepal's democratic dysfunction lies a culture of political patronage and corruption. This system leads to the neglect of critical sectors such as healthcare, education, and infrastructure, perpetuating socio-economic disparities. Moreover, the lack of transparency and robust oversight mechanisms allows for the misappropriation of funds, further eroding public trust in government institutions. Such practices waste valuable taxpayers' money and impede long-term development goals, creating a cycle of corruption and mismanagement that hinders overall progress.
The recent budget fiasco in Nepal, which sparked widespread protests even within the parliament, serves as a glaring example of this destructive trend. To address these systemic issues, it is necessary to introduce financial referendums—also known as referendums on financial matters. By allowing citizens to directly vote on budgetary decisions and financial policies, such referendums promote transparency, accountability, and more equitable resource distribution.
Financial referendum is a cornerstone of democracy, empowering citizens to directly influence fiscal decisions typically reserved for elected officials and political parties. By allowing citizens to vote to approve or reject government budgets and large scale infrastructure projects, these referendums enhance transparency and hold authorities accountable in financial planning. More importantly, they empower taxpayers by giving them a direct voice in shaping fiscal policies that directly impact their livelihoods.This process ultimately strengthens the democratic framework and restores public confidence in the system.
Also, financial referendums provide communities a platform to deliberate on the merits and costs of major infrastructure projects requiring significant government expenditures, such as investments in education, sports, tourism, and healthcare. This participatory approach not only ensures public buy-in but also aligns government spending with community needs and priorities. Additionally, it minimizes biodiversity and human health related disasters that can arise from large-scale infrastructure projects, ensuring that ecological concerns are considered in decision-making processes to protect human health, the natural environment, and cultural heritage.
Nepal must draw lessons from countries that have successfully implemented financial referendums. For instance, many cantons and municipalities in Switzerland hold referendums allowing citizens to vote directly on local budgets. In the Swiss city of Zurich, voters annually decide on the city's budget, including allocations for infrastructure, education, and social services. In the United States, California residents frequently vote on propositions involving tax increases or bond issuances for various projects. Italy conducted a national referendum in 2011 on austerity measures, including government spending limits aimed at reducing public debt. Italian citizens directly voted on these fiscal policies, reflecting their preferences for better economic management. Similarly, the Brazilian city Rio de Janeiro held a fiscal referendum in 2009 to gauge public support for hosting the 2016 Summer Olympics, allowing citizens to have a direct say in significant national decisions on budget allocation and the development of large scale infrastructure targeted for the Olympics.
The implementation of financial referendums in Nepal would help bridge the inherent disconnect between elected officials and citizen preferences. By directly involving citizens in critical financial decisions, these referendums promote informed public debate and civic engagement, enhancing the legitimacy and effectiveness of fiscal policies. They also serve as a crucial mechanism for governments to gauge public sentiment accurately and address issues that are important to taxpayers.
Participation in financial referendums cultivates a sense of civic duty and responsibility encouraging citizen’s deeper engagement with public policies as they also have to hold themselves accountable for the fiscal decisions. This compels decision-makers to justify their proposals transparently, ensuring that government spending reflects the public interest rather than political expediency. However, for the referendums to be effective, the citizenry must also make an effort to educate themselves on complex fiscal issues, remain politically aware, and collaborate with elected officials to aid in the budget formulation process.
The process of initiating a financial referendum involves drafting a proposal, which can originate from government bodies, political parties, universities, and citizen groups advocating for specific fiscal policies. Once the proposal garners sufficient signatures from citizens, it can move to the legislative channel for approval through a phase of vigorous campaigning and public debate. During this period, proponents and opponents present their arguments, data, and perspectives, educating voters on the implications of their decisions. This approach necessitates that elected officials engage with their constituency year-round, rather than only during the election cycle every five years.
On voting day, eligible citizens cast their ballots, utilizing various voting methods to ensure accessibility and accuracy. The most effective way to cast a vote is using a secure internet voting platform so that Nepalese people around the world can also participate. Post-vote, the results are publicly announced, with the referendum's legal implications—whether binding or advisory—determining the subsequent course of action by policymakers.
Nepal has to take advantage of the new found opportunity provided by the Internet and smartphones to allow citizens to participate in financial referendums. Doing so would signify a progressive step by the government towards inclusive governance and citizen-centered budget allocation. These referendums strengthen the democratic framework, reaffirming principles of government by and for the people.They also serve to bridge the gap between government actions and citizen aspirations. This shift will position Nepal on a path where the voices of its people, not just politicians, steer the nation's development trajectory. This approach ensures that responsibility is shared between the constituency and the elected officials.
Looking ahead, technological advancements are poised to revolutionize real-time voter engagement and ensure highly secure, tamper-proof voting processes. The Nepali populace could participate in monthly referendums on various topics beyond fiscal policies, utilizing AI, smartphones, and the Internet to guarantee widespread participation from around the world as well as transparency.Financial referendums are particularly crucial in countries like Nepal, which is crippled by extreme corruption.
