Getting Smart and Scaling Up: The Impact of Organized Crime on Governance in Developing Countries. A Case Study of Nepal

Abstract

The structure of this case study is as follows. Section I discusses the political, institutional, social, and regional context. It elaborates the current political contestation in Nepal, new processes of inclusion and caste and ethnic mobilization, as well as deeply-entrenched norms of patronage, clientelism, and corruption. It also provides an overview and assessment of key justice and law enforcement institutions, which have a particularly important bearing on crime. Finally, it situates domestic political processes within the context of the geostrategic contestation in which Nepal finds itself. In the first part of Section II, the chapter analyzes crime in support of political objectives. The areas covered include the role of crime and illicit economic activities in bandhs, party fundraising (with a focus on the Maoist and Madhesi groups), tender acquisition, and the usurpation of public funds. The second part of this section reviews the role of crime in Nepal in support of international terrorism and geostrategic competition. In the third part, Section II discusses economically-motivated crime in Nepal, including tax evasion and extortion, drug production and trafficking, illegal logging, illegal trade in wildlife, and human trafficking. Section III discusses the donor context and the effectiveness of various donor initiatives to reduce corruption and promote good governance. After the conclusions presented in Section IV, Section V offers recommendations