Tuesday, October 04, 2005

Intelligence Brief: Nepal

Drafted By: Dr. Michael A. Weinstein

Nepal, landlocked and bordered by the rising Asian powers of India and China, has become the object of competition among its neighbors as the country has descended into severe instability. The only Hindu kingdom in the world, with a generally impoverished population of 27.7 million people and few strategic resources, Nepal interests New Delhi and Beijing as a geostrategic prize in the new "great game" for spheres of influence in Central Asia. [See: The 'Great Game' Heats Up in Central Asia]

Except for a brief period of parliamentary government after World War II, Nepal was an absolute monarchy until 1989, when King Birendra, bowing to pressure from a coalition of political parties and social movements, instituted a constitutional monarchy. The new parliamentary system was riven by fractious partisanship, failure of leadership, corruption and the persistence of poverty. In 1996, the Communist Party of Nepal (Maoist) (C.P.N.(M.)) abandoned parliamentarism and initiated an armed "people's war" in the countryside aimed at overthrowing the constitutional monarchy and establishing a "socialist republic."

The Maoist insurgency gained support among the 80 percent of Nepalese living in rural areas and now is estimated to control up to 70 percent of the countryside. The campaign to suppress the insurgency by the Royal Nepalese Army (R.N.A.) has been marked by brutality and torture on both sides, most recently documented by U.N. Special Rapporteur on Torture Manfred Nowak in a September 16, 2005 press conference following his investigative trip to Nepal.

A further plunge into instability came in February 2005, when King Gyanendra, who had assumed the throne after the heir apparent had killed his parents and himself, dissolved parliament and declared a state of emergency, suspending civil liberties, imposing press censorship and banning opposition demonstrations, in the name of fighting the insurgency more effectively and suppressing corruption. [See: "Sacking the Government Brings International Attention to Nepal"]

Gyanendra's seizure of absolute power has not calmed Nepal's political turmoil and has led to international censure, including the withdrawal of military aid to Kathmandu by New Delhi and Washington. On April 30, Gyanendra lifted the state of emergency, but did not surrender control and has not moved to re-establish the parliamentary system. Since then, Nepal has been in a state of political flux, in which the three parties to the domestic conflict -- the king, the Maoists and the parliamentary parties -- have maneuvered for advantage in an intensely uncertain situation.

Nepalese Instability: Tri-partite Conflict

The crisis precipitated by Gyanendra's February seizure of absolute power threw the parliamentary parties into the position of either attempting to mount resistance in order to recoup their losses or accepting defeat. Particularly after the king revoked the state of emergency in April, they chose the former, pursuing a three-pronged campaign to delegitimize his rule and render him unable to govern. Forming the same kind of coalition that had forced the institution of a parliamentary system in 1989, they subsumed their rivalries under a common program of restoring democracy.

As Gyanendra remained unyielding, the parliamentary parties radicalized their positions. The crisis ratcheted up to a higher level, when, in late August, the Nepali Congress Party (N.C.P.) -- the largest parliamentary grouping, which has close ties to New Delhi -- announced that it had decided to delete the goal of achieving a constitutional monarchy from its constitution. The Communist Party of Nepal (U.M.L.), the second biggest grouping, had already abandoned constitutional monarchy for a "democratic republic."

In response to the parliamentary parties' break with the monarchy, the Maoist insurgency announced a three-month cease fire and has begun releasing some of its R.N.A. prisoners, although Nepalese media report that it continues to carry out abductions of school teachers and students for "re-education." Registering a shift in the balance of power, the seven-party parliamentary coalition announced on September 16 that it would form a team to negotiate independently with the Maoists. The coalition made it clear that talks were premised on the insurgency ending violence against civilians and that the Maoists would not be permitted to join the coalition unless they laid down their arms.

Along with abandoning their commitment to monarchy and moving towards the Maoists, the parliamentary parties, with the support of student and other civil-society groups, initiated an ongoing series of street demonstrations in Kathmandu, aimed at forcing Gyanendra to restore democracy, that have attracted up to 7,000 participants and have met with mass arrests -- including temporary detention of top party leaders -- and often violent suppression by government security forces.

Faced with international isolation, the collaboration of the Maoists and the parliamentary parties and the emergence of "people power," Gyanendra has held fast to his refusal to institute a cease fire to match the Maoist's initiative and has urged the parliamentary parties to negotiate with him.

Each actor in the tri-partite conflict is playing a risky game with uncertain results.

The Maoists, who have used previous cease fires to rearm and regroup, are growing increasingly confident that their people's war strategy of surrounding Nepal's cities and precipitating urban insurrection is succeeding. Their commitment to a future parliamentary regime is at best suspect.

The parliamentary parties hope to emerge as victors by playing both sides against the middle, counting on the support of New Delhi and its Western allies, and on people power.

Gyanendra is counting on the continued backing of the R.N.A., military aid from Beijing to make up for New Delhi's suspension and residual popular commitment to the monarchy.

At present, it is impossible to predict who will emerge on top or whether there will eventually be a compromise between two or among all of the parties.

The Bottom Line

New Delhi, which counts Nepal within its sphere of influence -- due to its preponderant economic power in the country, cultural affinities and strategic advantages -- has been most severely impacted by the crisis. Indian analysts report on a power struggle in New Delhi between the Ministry of External Affairs, which backs the parliamentary parties and their efforts to negotiate with the Maoists, and the Home and Defense Ministries, which place their bets on Gyanendra, fearing a Maoist takeover and a spread of Maoist insurgencies into India, exacerbated by border insecurity. Thus far, New Delhi has chosen to back the parliamentary parties, but there is no assurance that the strategy will succeed or that it can be pursued effectively given intra-governmental conflicts.

As New Delhi faces hard choices, Beijing has seized the opportunity to move in and offer Kathmandu arms deals, one of which has already been signed. Islamabad is rumored to be doing the same. Washington and London have been left with no option but to back New Delhi as they try to pressure Gyanendra to restore constitutional monarchy and accept international mediation to end the Maoist insurgency.

The latest moves in the new great game highlight the uncertainties and shifting opportunity structures that emerge when strategically valuable, weak states begin to implode. Beijing has nothing to lose by backing Gyanendra and will win big if he holds on to power. New Delhi, which allowed the situation to get out of control, faces the possible diminution of its influence. As the crisis has deepened, New Delhi has sent troops to Indian states bordering Nepal to contain an escalated conflict.

Uncertainty is the watchword in Nepal, where much depends on how the parliamentary coalition plays its hand as it seeks to finesse the Maoists and the king.
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