Wednesday, September 2, 2026

 

Negotiation Capacity and Nepal's Foreign Policy: Some Observations

Bishnu Raj Upreti, PhD[1]

1.           The context

In the present context, global change processes (GCP) are so fast and so heavy to deal on. The global change process is collectively named for climate change (McGrath, 2022; IPCC, 2022; GCP, 2021; UNDP, 2021) and related insecurities; food water and environmental insecurities (Upreti et.al., 2015); rapid advancement of information & technology and their consequences like cybercrimes (Khatiwada, 2021); energy crisis (Geiger, 2021), radicalization of religious, ethnic and isolated geographical sentiments; widened gaps between rich and poor and related feeling of injustice among poor population (Seeler, 2008); highly skewed use, and control of resources (CEO 2020; Upreti, 2010a,b,&c); growing scarcity of natural resources (Upreti, 2002); costal challenges; wars, and armed conflicts (Adhikari et.al., 2079BS); and other insecurities in different parts of the world (Barnettm 2007; Bob and Bronkhorst, 2010; Carius, 2006; Deudney, 1990; Eckstein, Kunzel. & Schafer, 2021; Floyd, 2008; Homer-Dixon, 1994 and 1999; ICAN, 2020; Upreti et al., 2079 BS). GCP has also bearing on trade and market (Karki, 2020; UNCTAD, 2022). Global change processes are particularly massive to cope by developing countries with poor human capacity, weak research, and bad governance (Mathew and Upreti, 2005; Mulligan, 2010; Silva, et.al., 2021).

What we observed around the world is intimate engagement of powerful countries in these issues for expanding economic, political, and strategic interests. Such engagement of global and regional powers makes the worsening situation even complicated for weaker counties and people (Upreti et. al., 2079 BS).  

The situation becomes even more problematic when the priority of the countries to deal with the global change processes are scattered, vague and largely ignored citing justification of inaction in a as generic bureaucratic style like referring to limitation of laws or rules, lack of required resources, etc.)  or manipulated these issues for personal benefits of certain influential individuals (or even some time organizations). Further, inter-ministerial coordination is very poor and human resources capacity is very weak (Upreti, 2010a,b,&c).

These all have direct effect on the negotiation capacity of the state. In this paper I am briefly discussing the state of negotiation capacity of Nepal and ways of addressing them. 

For the purpose of this paper, I define negotiation as a process that involves aims, tactics, strategies, targets, and timelines to deal on issues under discussion/debate by the active engagement of two sides with expectedly satisfaction of both parties of negotiation. Main focus on negotiation is finding an acceptable solution of a shared problem (Upreti, 2010a).

2.     The Issues of negotiation in foreign relation of Nepal:

It should be undeniable fact that any officials deployed by the government of Nepal in foreign countries and working in MoFA must be competent negotiators if we want to be relevant in the international arena. However, Nepal has not yet given attention to developing negotiation capacity of persons dealing with major negotiation issues presented at section 2.1. In this section, I am briefly discussing on the major issues of negotiation that Nepal has to deal on. They are:

2.1 Major negotiation areas

Negotiation on trade:

Some of the major concerns of Nepal on the trade negotiations are reducing or eliminating tariffs (e.g., taxes on certain imports of goods) and non-tariff barriers (NTBs) (rules and regulations of exporting counties that makes trade more difficult) including import licensing and other technical barriers to export of goods, and other restrictions like Voluntary Export Restraint (VER), subsidies, embargo.

Further, Nepal is now in the process of graduating from Least Developed Country (LDC) to Developing Country (DC) because it has met the two of three criteria, i.e., thresholds for Human Assets Index (HAI), and Economic and Environmental Vulnerability Index (EVI) for graduation. Nepal has to deal on the pandemic and other bigger health crisis (Sharma and Upreti, 2021).

In this context, dealing with such complex issues presented above require both subject matter competence as well as good negotiation skill, which is largely lacking.

Negotiation on agricultural issues:

Our agriculture export and imports are largely with India and Indian approach of dealing with agricultural negotiation is high handed (Upreti, et.al., 2079BS). Further, issues like seedbanks, food banks, gene and genetically modified organisms, tariff, sanitary-phytosanitary measures, agricultural technical barrier to trade, export promotion of high value low volume crops, fertilizers imports, seed export-import, food and animal products export and imports, etc. are global issues of negotiation where Nepali experts need not only technical aspects but also have to have strong legal competency and interpersonal skills.    

Negotiation on refugee issue:

Nepal had very poor performance on handling protracted issues. One among many examples is the Bhutanese refugee negotiation with Bhutan government, which was neither coherent nor consistent. Though the international sentiment and strong evidence were in our favour but we were not able to deal the issue properly.

Negotiation on border disputes:

Nepal has about 1850 KM border with India and about 1389 KM with China, two giant neighbours who have other several bordering countries. Further, Nepal India borders are open, which adds more complications. In this context, Nepal is facing long standing border dispute with India in several places with long standing deep rooted dispute in Susta of Mawalparasi and Limpiyadhura, Lipulekh and Kalapani areas of . Similarly, China-Nepal border issues are also of occasional concern (Acharya, 2020 and 2019). Hence, Nepal has to have strong negotiators with strong language competencies, communication skills, international laws, good inter-personal behaviour and strategic thinking. Further, most important characteristics of negotiators is their commitment and determination on national interest.

There are several irrefutable evidence (maps, historical documents, hydrological documents) to prove Limpiyadhura, Kalapani and Lipu Lekh as territories of Nepal according to the Treaty of Sugauli[2]. However, India, by its power and influence is resisting to accept the reality. In this context, Nepali negotiators have to deal with such situation for which they need a strong team of experts having complete knowledge of history, Mahakali River system, cartography, negotiation and communication skills.      

Negotiation on water issues:

Globally water is becoming a major security concern (UNDP, 2020) Similarly, water negotiation will be a major challenge in foreseeable future. India’s water scarcity and availability of water resources in Nepal makes unique situation at the time when India has already declared water as strategic concern of India (Upreti, 2013; Upreti et.al., 2015). Nepal has missed many opportunities in past negotiations related to water. Hence, it is high time to develop competence (all technical skills related to hydrology, meteorology and other river sciences, interpersonal and communication skills and legal compete  related border laws/international laws) in negotiation skills of Nepali negotiators.  

Negotiation on other issues of national interests

 In this inter-dependent and inter-connected world, it is very hard to comfortably sustain and progress in its own. Therefore, every country use strategy of trade-offs, give and take, bargaining, balancing, counter balancing, adaptation, containment, compromise, cooperation, collaboration, depending upon context and time to gain maximum from negotiation within the broad framework of national interests.

In the international negotiation, be it water, trade, agriculture, refugees, environment (, climate (IPCC, 2022; GCP 2021)) or border or any other issues, the guiding framework must be national interests of the country (Acharya, 2019; 2020). However, translating these concepts into practice of actual negotiation require at least a) competency, b) commitment, and c) skills.  Nepal needs to focus on developing these negotiation competencies. 

Negotiation for strengthening development cooperation:

One of the important issues is also to make negotiation for enhancing development cooperation and attracting resources and technologies for infrastructure development, which requires constant engagement with high competence. However, performance is weak as development cooperation support by Canada, Denmark and other countries are withdrawn and shrinking.  

Negotiation for climate change concerns:

Climate security is becoming a major concern globally and negotiation are going on in many fronts and in many thematic issues.  Countries like Nepal has great opportunity to get benefit from climate change related benefits if there is strong negotiation capacity and technical competences. Nepal is poor in this area too. 

Negotiations with foreign governments and regional and multilateral forums:

Negotiation is a specialized discipline and requires special knowledge and skills in addition to interpersonal relations and communication. Every foreign service personnel not necessarily have these skills but all of them have to negotiate. In this context developing competent negotiators is the responsibility of MoFA but it is not priority.

2.2 Representation of Nepal in United Nations, international & regional organizations and other forums

Competent (fluent language and having knowledge of the host country, strong English language proficiency) and in-depth knowledge of international relations and geo-political, geo-strategic, knowledge and skill are preconditions for a successful diplomat to appropriately represent Nepal in international forums and friendly countries.  However, all diplomats are not able to meet these minimum standards.   

2.3  Promotion and strengthening of friendly relations with countries and organizations

Nepali diplomats are struggling to enhance image of Nepal in many foreign countries mainly because of their lack of competences discussed in the section 2.2 above.

2.4  Others:

Other important functions of Ministry of Foreign Affairs that demand negotiation in different issues.   For example, we have great potential to drastically increase the number of Nepali Security forces in UN Peace Keeping Operation that not only enhance global position of Nepal but also generate financial resources and expands international relations. Similarly, Nepal has great scope of positioning as champion of climate change debate because of glacier melt (and related crisis) if our negotiation skill is enough to achieve them. Likewise, birthplace of Buddha, the Lumbini is another iconic scope for our global influence if deal properly. All these areas demand skillful negotiation.

3        Why Nepal is weak in international arena and consequences[3]

There are so many literatures highlighting weak negotiation capacity of Nepal (Acharya, 2020, 2019; Sharma and Upreti, 2021), which has resulted into unwanted consequences, be it a water negotiation with India, be it with WTO negotiation or be it on Bhutanese refugees, or other international forums and conventions. The main reasons for weak negotiation capacity are related to different reasons such as:

3.3  Influence of external interests: 

It is not uncommon for any powerful interest groups (be they Diplomatic and Consular Corps, United Nations and its specialized agencies or aid agencies or other organizations) to influence the key actors and players of international relations of particular countries for their organizational/national interests. Nepal is not an exception.

All total, 28 Residential Diplomatic Missions, 91 Non-Residential Diplomatic Missions, 13 United Nations, its Entities and Specialized Agencies, 31 Aid Agencies and other Missions are operating in Nepal, according to the according to the Protocol Division of the Ministry of Foreign Affairs of Nepal (MoFA, 2021). All of them are working according to their organizational aims and overt and covert interests. In addition, more than 33 Honorary Counsel are operating and led by almost all highly influential businesspersons of Nepal. Some of the Nepali businessmen taking honorary counselor responsibility of different countries were allegedly engaged in activities other than defined in their core responsibilities. One of them was even arrested in the black marketing/smuggling of thermal guns brought for COVID-19 treatment. 

Often it is said that King Mahendra played important role in maintaining non-alignment and neutrality of Nepal in an intimidating geopolitical situation with competition and uncertainties during 1960s and 1970s. In this regard Dr Bhesh Bahadur Thapa said, “You have the freedom not to agree with his political philosophy but when it came to national interests he stood firmly for Nepal, negotiated with big powers firmly, and put Nepal in such a trajectory which has to this day kept the country intact, independent, and sovereign[4]. Situation is degrading overtime in the last 4-5 decades. 

3.4  Bureaucratic disorientation:

While discussing with the senior and experienced international relations and diplomacy experts of Nepal (both ex-bureaucrats and others), it is realized that professionalism is eroding fastly overtime, no practice of in-depth study and analysis among the foreign service personnel, uniquely developed a culture of using influence to get continuous better foreign placement and other advantages. Hence, incompetent people or inappropriate way they are getting responsibility in the foreign mission. Consequently, Nepal’s position in international arena is becoming weaker and weaker.

3.5   Politicization of foreign affairs[5]:

We have structural problem at political level in Nepal regarding the dealing of foreign issues. Regrettably, international relation issues are merely used for internal political vested interests. Be it in negotiating issues and concerns of national interests or in appointing ambassadors and other important positions to be deployed abroad. Until and unless such behaviors are changed, it will be quite difficult to improve the current state of weak international relations of Nepal. 

Political leaders of Nepal as well as leadership in MoFA increasingly failed to realize required quality of a persons to be deployed as ambassador as having integrity; competency in subject matter of international relations and diplomacy; local language proficiency; competence in major international languages; and high interpersonal skill. Consequently, they send people who have ideological inclination towards their party during student time, or able to influence then by other means. This situation is common and even growing more resulting into failure of our diplomats to work for the national interests. Instead, they largely serve for minister or party appointing them. Consequently, credibility of Nepal and its heavy presence in international arena in the past 5-6 decades is eroding fast now.  

3.6  Lack of investment in capacity development:

Capacity of MoFA as well as the officials are too weak. I was assigned by the Government of Nepal to coordinate a high-level expert panel to collect and analyze evidence related to the India Nepal border disputes in Susta and Limpiyadhura, Lipulekh and Kalapani areas. During that time, I have ample opportunities to interact and assess institutional capacity of MoFA and its different departments and divisions as well as their leadership. Based on my 4 months’ work with them I realized that there is no serious efforts in investing in capacity building of the Ministry itself and its divisions and departments. It is unrealistic to expect high performance without developing institutional and individual capacity of staff. It was observed that only very few personnel were managing huge portfolios with scarce resources.   

3.7  Absence of strong think tank institutions:

Countries having successful international relations and foreign affairs strategically utilize knowledge and skills generated by thinktanks. Therefore, these countries have promoted, strengthened, and maintained autonomy of thinktanks and international departments/centers of academic institutions.

In Nepal, neither political leadership nor senior government officials realize the importance of think tanks. I have chance to lead the think tank called Policy Research Institute formed by Prime Minister K. P. Sharma Oli with very high spirit and massive mandate. However, I have deeply frustrating experiences on how bureaucrats repeatedly attempted to make it failed.  Their non-cooperation and deliberately orchestrated structural hurdles severely affected the functioning of PRI. The situation of the Institute of Foreign Affairs (IFA) is also not so encouraging, and it is also operating completely under the administrative shadow of MoFA.

Autonomy and independence, integrity, competency, quality, objectivity, and meaningful engagement of key stakeholders in generating knowledge are key to success of thinktank institutions, which are largely weak in Nepal because of lack of support from the state and its bureaucracy.       

3.8  Weak capacity Ministry of Foreign Affairs:

Capacity of Ministry of Foreign Affairs itself is weak, inter-ministerial coordination is extremely poor, rigid structure with highly bureaucratic in nature and therefore not able to cope with the fastly changing global and regional contexts.

There is lack of enough competent human resources for negotiation such as international lawyers, academically trained and professionally engaged thematic negotiators in MoFA. For example, negotiation on water resources require negotiators with sound knowledge of hydrology, history and strong knowledge of international water law and negotiation skills (which are quite unique than general communication).

Similar requirements are needed for trade, agriculture, or any issues under negotiation. But such competent human resources are needed for better achievement. The main reason of countries having better achievements from international negotiations are their high profile, highly competent, academically trained thematic and professional negotiators.  

3.9  Lack of documentation and archiving

We have extremely poor documentation and archiving practice in the government in general and MoFA in particular. I was coordinating a high-profile team of expert constituted by government of Nepal to collect and analyze the evidence related to India-Nepal borders. During that time, I have fair exposure on how MoFA has kept important records. It was poor and unsatisfactory.

Whatever it had, that was highly personalized record keeping system. In absence of one person, access to required documents was not possible and blocked every information until he or she is available. No access of other members of the division and nobody knows what documents are with particular persons. I tried to understand why such practice exist in the MoFA and found that there is very high mistrust and unhealthy competition (to defeat by hiding information) among the officials themselves.

We had several times requested to get specific documents kept by specific division. Every time we approached, we were told that the documents we are seeking is only available with a particular person, who is out of office.

Though the Department of Archaeology has started protection of the documents of national importance of the country, it is not yet able to do all. There is also inter-departmental and inter-ministerial problem of coordination that limits collection, protection and preservation of documents of historical and strategic importance.

While working on the evidence of borders collection, I came to know that important documents and maps of state were missing but they are with individuals. Similarly, many important documents available earlier (at the time of Panchayat) are now not available and a very easy and scaping answer is the move of MoFA from Sital Niwas (missed during the transfer time). Many documents are kept in several rooms with locked in Narayanhiti Building for long without even checking and we observed from outside that many of them are damaged by rats and bats[6]. I have formally requested from Policy Research Institute to Foreign Minister to take care of these important documents but so far there are no action. 

Many strategically important documents kept in Singh Darbar are said to be either born when Singh Darbar caught on major fire in 2030 BS or taken away by individuals which were never returned.  

4        Ways forward

Fundamental aim of foreign relation is to protect and promote national interest of Nepal by safeguarding freedom, sovereignty, territorial integrity, nationality, independence and dignity of Nepal, the rights of the Nepali people, border security, economic wellbeing, and prosperity of Nepal[7]. Therefore, policy, strategies, plans and activities must focus on protection and promotion of Nepal’s national interests based on the principle of realism (Korab-Karpowicz and Julian, 2018). The following areas form basis for achieving the aim of foreign relation of Nepal:

4.3  Political unity at domestic level for foreign policy

The precondition of improving foreign relations of Nepal is to have national consensus on international relations among the political parties and stand together (as they did in amending the constitution of Nepal while including Limpiyadhura-Lipulekh in the map of Nepal[8]). Nation must be united in foreign policy, national security policy and economic policy to achieve economic prosperity, political stability, and better international standing, which is largely missing in Nepal.  

4.4  Investment in capacity development

Nepal government has not internalized the importance of investing in human resource development specially in developing negotiation capacity of officials who are responsible for negotiating on the thematic issues listed and discussed in section 2.1. Only competent, skillful and committed negotiators can make difference and therefore government must invest enough in this area. Similarly, strong English language proficiency must be precondition of any negotiators and officials of foreign services and diplomats. In addition, the diplomats (be they from foreign service or political appointment) must have through knowledge of culture, history, economy, power dynamics of the country where they are deployed.  All diplomats must take at least 6 months language course of the local language of the country of their posting.  The responsibility for this course should be given to Bishwo Bhasa Campus (BBC) and accept the diplomats only if their language proficiency are approved by the BBC.    

 

4.5  Promotion and strengthening of think tank institutions

Government of Nepal must promote, strengthen and institutionalize existing government think tanks like Institute of Foreign Affairs (IFA), Policy Research Institute (PRI), Water and Energy Commission (WEC), ensure their institutional autonomy by law, provide enough financial resources (never let the think tanks to directly take money or advisors from donors and they have to groom and strengthen domestically to avoid injection of potential foreign vested interests). Government must have a clear policy and umbrella act on promoting and strengthening autonomous status of government think tanks and also guidelines for the other non-state think tanks operating in Nepal.      

4.6  Strengthening of Ministry of Foreign Affairs (MoF):

Strong, resourceful, competent MoFA is precondition for addressing all anomalies related to international relations and diplomacy Nepal is facing at present. Neither political leaders nor other ministries respects MoFA rules and standards at present because it is weak and ministry officials themselves are inconsistently behaving on many important issues. This situation must change. My 3 years of experiences of working with ministries reveal that coordination among ministries is very weak, they are slow in decision making and inaction is their major character. Further, discretionary allocation of financial resources without scientific justification and clear criteria of Ministry of Finance makes difficulties on functioning of important institutions of state like MoFA. PRI is the victim of such decision of MoFA for 3 years.

The existing organizational structure of MoFA is less relevant and incapable to deal with the complex global change processes discussed in the first section of this paper. Its diplomacy so far is passive and reactive, and it must make independent, proactive ad mature (PRI, 2079BS).

The staff of MoFA must be specialized on countries (China, India, USA, Europe, Middle East, Latin America, Africa) by focusing to language, culture, history, and political power relations of these countries. They need regular training on the changing context, negotiation skills, etc.

MoFA must have competent skillful negotiators and international law expert in its disposal to deal on many issues arises from the global change process.    

 

4.7  Strong provision on collection, digitizing and archiving

It is urgent and important to collect all documents related to international relations and diplomacy, digitize them and keep them at least in 3-4 sources with high security (Department of Archaeology, MoFA, Office of Prime Minister and Council of Ministers, MoF, Parliament Library, Headquarters of Nepal Army or at National Security Council Secretariat with strictly regulated provisions).

Many important documents of national importance are not with government but said to be with different individuals. Hence, these documents must be taken by the state (with some compensation if they are not taken by individuals from the state while serving the Government and the source must be proven) and digitize and store appropriately.   

5        Conclusions

Negotiation capacity of Nepal is extremely weak. Further, the GoN has not given priority to develop negotiation capacity of officials working in foreign ministry as well as other concerned ministries. Politicization of foreign ministry has extremely undermined the entire scope and opportunities of achieving foreign policy objectives of Nepal. Hence, it is urgent to change the existing style of operation of MoFA, develop political consensus in foreign policy issues and develop institutional capacity of MoFA by restructuring it, invest in capacity building of individuals engaged in negotiation and competent human resource development.  

 

References

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2.            Acharya, M. R. (2020). Nepal"s National Interests, Foreign Policy and Strategic Affairs. Policy Researach Insitute.

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6.            Conflict and Environment Observatory (CEO) (2020). How does war damage the environment? https://ceobs.org/how-does-war-damage-the-environment/

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30.       Upreti B. R. (2010b). Political change and challenges of Nepal: Reflection on armed conflict, peace process and state building. Volume 1 and Volume 2. Saarbrucken: Lambert Academic Publishing.

31.       Upreti B. R. (2010c). Issues to be addressed by the new security policy of Nepal. In: Phuyal H, Urscheler M, editors. The security sector legislation of the Federal Democratic Republic of Nepal: Commentaries. Geneva Centre for the Democratic Control of Armed Forces, National peace Campaign and Pacific Law Associates. Geneva: Brambauer, pp 107-112.

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[1] Bishnu Raj Upreti is currently leading government think tank Policy Research Institute (PRI). He has 42 years of experience in development cooperation, research and global change process in Asia, Europe, Latin America and Africa. He is author of more than 6 dozen of books, more than hundred chapters in books, 35 articles in peer reviewed international journals. He can be reached at: bishnu.upreti@gmail.com, @brupreti

[2] Our own study (the border evidence collection expert group work) as well as the technical report “Almora: a Gazetteer Volume XXXV of the District Gazetteers” of the United Provinces of Agra and Oudh authored by H.G. Walton in 1911 states that the Kali has its 'true source' in Kuthi-Yankti, which after the infall of Kalapani river takes the name of Kali.

[3] Interview of Dr. Bhekh Bahadur Thapa entitled “Challenges of Nepal's Foreign Policy” Available at:  https://www.youtube.com/watch?v=bALPRouP8X0

[4] Interview of Dr Thapa to Nepal live today newspaper. Details can be seen here: https://www.nepallivetoday.com/2022/01/02/dr-bhekh-bahadur-thapa-looks-back-at-nepals-foreign-policy-trajectory/

 

[5] How politicization has affected the foreign policy can be seen in details at:  https://www.nepallivetoday.com/2022/01/02/dr-bhekh-bahadur-thapa-looks-back-at-nepals-foreign-policy-trajectory/

[6] My office is in the same building first floor and these documents are locked in several rooms of the second floor. So many bats and rats run here and there around these stored rooms. 

[7] See article 5 of the Constitution of Nepal at: https://lawcommission.gov.np/en/wp-content/uploads/2021/01/Constitution-of-Nepal.pdf

[8] The Council of Ministers had approved the new map on 20 May 2020. On 22 May later it submitted to the Parliament and on 13 June 2020, Prime Minister KP Sharma Oli put forth for voting in the Lower House of Parliament and it was unanimously approved (except Sarita Giri and she was pulled back from the Parliament because of her disobey the whip of her party).

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