KATHMANDU: There are several forms of governance in practice across the globe. Nations have chosen the form of governance that best suits their political culture, promises political stability, and which ensures prosperity of their peoples.

In this context, we find that the different forms of governance have evolved over the course of history. This article argues in favour of federal socialism as the most suitable form of governance for Nepal, given our country’s ethnic, social and cultural diversity, as well as the urgent need for building a strong inclusive state so as to boost the nation building process.

Federal Socialism is an ideological principle that synthesizes socialism with a federal political system suited to multi-nationalities/ethnic, multi-lingual, and regionally diverse societies.

It seeks to reinterpret socialism in the context of identity-based federal restructuring, inclusive democracy, and the technological transformations of the 21st century. Federal Socialism represents a contemporary evolution of socialist thought, developed in response to the political, cultural, and socio-economic complexities of pluralistic societies.

While rooted in socialist system, it adapts those principles to federal governance structures, aiming to ensure both social justice and territorial autonomy.

This ideology has gained particular relevance in Nepal, where debates on federal restructuring and inclusion have shaped political discourse since the early 2010s.

It proposes that the emancipation of oppressed nationalities must be achieved through federal restructuring, while the emancipation of the working class must occur through a socialist politico-economic system.

The doctrine was first articulated in the Federal Socialist Party (2012) and formally institutionalized by the People’s Socialist Party in 2024–2025. It now serves as an emerging ideological framework which has begun to influence political discourse on federal reform, economic restructuring, and inclusive governance.

The ideological development of Federal Socialism gained momentum in 2012 AD, during the dissolution of Nepal’s first Constituent Assembly. Several major factors contributed to its emergence:

Debates on model of federalism during the final phase of first Constituent Assembly: Constitutional discussions revealed the need for a political system that could address historical exclusion while preserving national unity.

The debates highlighted contradictions between centralized governance and the demands of diverse nationalities, languages, and regions.

Post-conflict restructuring and the rise of inclusion discourse: Following the 2006 People’s Movement and the Comprehensive Peace Agreement, Nepal entered a phase of restructuring that called for greater autonomy, equity, and representation.

The years leading to 2012 AD crystallized the need for a doctrine combining socialism with federalism. This period laid the conceptual foundation for a new ideological orientation that was later incorporated into the Party’s doctrines and policies.

The promulgation of the Constitution reaffirmed national commitment to “socialism-oriented” governance. Although the term lacked explicit ideological definition, it served as a platform upon which Federal Socialism could be further theorized.

Federal implementation revealed structural challenges in political autonomy, recognition of identity, inclusive governance, and resource distribution. These challenges reinforced the need for a distinct doctrine—Federal Socialism—that integrates socialist economic principles with a federal institutional design.

The adoption of Federal Socialism represents a turning point in Nepal’s political evolution. Although administrative-geographical federalism gained early traction, it proved insufficient to address deep-rooted exclusion and centralization.

Federal Socialism, therefore, advocates for identity-based federalism grounded in Nepal’s socio-historical realities.

It conceptualizes federalism as a means for the emancipation of oppressed nationalities and socialism as a path to class emancipation—a unified approach to addressing structural inequalities and challenges of contemporary capitalism.

The Nepalese Path to Socialism: Federal Socialism, reaffirming commitments to federalism, republicanism, proportional inclusion, secularism, and social justice. This declaration established Federal Socialism as the party’s guiding ideological principle.

Theoretical Foundations

Federal Socialism commits to the emancipation of all communities suffering from class, nationality, regional, gender-based, or cultural exploitation and inequality.

It envisions a state that acts as the guardian of the vulnerable, ensures social security, expands opportunities, and distributes national resources equitably.

The doctrine builds on the premise that social systems evolve through contradictions inherent in historical conditions and that transformation must be guided by scientific analysis rather than belief-based systems.

Federal Socialism asserts that both federalism and socialism have been practiced and demonstrated across different historical contexts worldwide.

In Nepal, the significance of their convergence is heightened by the country’s multiethnic, multilingual, and multicultural composition.

The doctrine argues that Federalism enables recognition of identity, autonomy, and the emancipation of oppressed nationalities. Socialism enables socialization of means of production, class emancipation, and the equitable distribution of national resources.

It moves beyond political democracy to advance economic, social, and cultural democracy as integral components of governance.

Federal Socialism emphasizes scientific progress, technological innovation, and artificial intelligence as central drivers of modern transformation. It views technological advancement as an opportunity to deepen scientific socialism by enabling rational planning, productivity growth, and equitable distribution.

By linking socialist planning with scientific and technological development, the doctrine advocates for a transformative model capable of responding to global capitalism and domestic socioeconomic disparities.

The technological progress—particularly advancements in science, information technology, and artificial intelligence—enhances the relevance of scientific socialism in contemporary society.

It emphasizes that societal transformation is possible through human effort guided by scientific principles and rational planning.

Philosophical and Ideological Basis Federal Socialism draws from dialectical and historical materialism, Marxism, and the global experiences of socialist movements. It recognizes that class, nationality, ethnicity, and regional identity all shape social contradictions in multi-national societies.

Dialectical and historical materialism provide a scientific explanation for Nepal’s transformation—from monarchy to republicanism, unitary to federalism, and feudalism to capitalism—by locating political changes in underlying material conditions and social struggles.

Scientific socialism offers the methodological foundation for continuous adaptation to technological advancement and globalization.

Core Components of Federal Socialism

The ideological program outlines ten key elements, each representing a pillar of the federal-socialist system.

Identity-based federalism with parallel legislatures, cooperative governance, a federal judiciary, residual powers assigned to provinces, and veto rights for minority communities.

Socialist politico-economic orientation based on the gradual and stage-wise construction of socialism; Participatory and inclusive democracy that integrates all classes, nationalities, languages, religions, and cultural communities into the political mainstream; Socio-economic justice through the elimination of injustice, inequality, and discrimination, ensuring equal access to resources, opportunities, and state power, with protection for marginalized and excluded groups.

Equitable prosperity, recognizing that while prosperity may exist under capitalism, true prosperity for the working class and oppressed nationalities is achievable only under socialism; Good governance and integrity by eradicating corruption across political parties, bureaucracy, and the judiciary, and establishing accountability in public life.

Proportional inclusion and an electoral system that guarantee representation of all nationalities and communities in state institutions according to their population.

A welfare state and a social security framework that ensure equality of opportunity, equitable distribution of wealth, and the basic necessities of life for individuals unable to meet their needs on their own.

Ecological protection and balance through concrete measures to address global warming, pollution, and environmental degradation, thereby safeguarding environmental integrity; and Pluralistic nationalism and national unity that guarantee multinational identities by embracing the principle of “state within a state and nation within a nation.

Federal Economic Principles

Nepal’s current economic direction is dominated by crony capitalism, where political and business interests distort federalism and undermine public welfare.

Federal Socialism promotes a socialist market economy supported by harmonized fiscal, monetary, and economic policies.

Key principles include: Gradual socialization of the means of production; Strengthened fiscal federalism and provincial coordination; Balanced roles for public, private, and cooperative sectors under strategic state regulation; Production-based economic growth, prioritizing agriculture, innovation, and cooperatives; Reduction of inequality through redistributive policies; and A digital, technology-driven economy enhanced by artificial intelligence.

These principles aim to restructure economic power, increase productivity, and ensure equitable distribution of national wealth.

Federal Socialism proposes institutional reforms to strengthen direct democracy and promote inclusivity: It advocates a directly elected executive President with a two-term limit; a fully proportional parliamentary electoral system, an expert-based councils of ministers at all levels; mandatory diversity in top leadership, ensuring that the President and Vice President represent different genders, nationalities, and provinces; and direct election of executive leaders at federal, provincial, and local levels.

These proposals aim to strengthen federalism, enhance accountability, and distribute power more evenly, reducing excessive centralization.

Federal Socialism synthesizes the emancipation of nationalities and the working class to address Nepal’s historical inequalities while responding to contemporary global challenges.

Rooted in Marxism, scientific socialism, and dialectical and historical materialism, it represents both a continuation and an evolution of socialist thought, integrating a federal system of governance with political transformation.

By upholding a federal democratic republic, proportional inclusion, secularism, good governance, and equitable development, Federal Socialism offers a distinct ideological framework capable of guiding Nepal’s political and economic trajectory in the decades ahead. [The writer is the Chairperson of People’s Socialist Party, Federal Council]