A Small State between Two Major Powers: Nepal’s Foreign Policy Since 1816

Abstract

Nepal is a small state situated in a geo-strategic location between two major powers—China and India, the former being a great state, and the latter a middle state. Nepal has asymmetric relations with both India and China in terms of national power. Nepalese psyche has been shaped by the very geostrategic situation since the time immemorial. However, Nepal as a modern state was born only in 1768, since then it has adopted different strategies for its survival according to the changes in international, regional and domestic power equations. During the initial phase (1768-1814), Nepal was called Gorkha empire and it had pursued a grand strategy of sub-regional hegemony while being mindful of the sensibilities of the big powers in the North and the South. Nepal made a transition from imperial grand strategy to small power diplomacy in 1816 when it was defeated in Anglo-Nepal War (1814-16). From 1848, when Jung Bahadur came to power, Nepal started to fully bandwagon with the British colonialists in India. After that, Nepal had followed strategies of ‘special relationship’ with its neighbors, non-alignment, balancing, balking, neutrality, equidistance, equiproximity and trilateral cooperation depending upon changes in domestic, and regional as well as international politics.

Conceptualizing Strategic Risk-Taking by Small States Under Game Theory (A Constructivist Analysis)

“…By the time of King Mahendra, it was considered that the 1950 Indo-Nepal Treaty as well as a subsequent Trade Treaty between India and Nepal had actually compromised the latter's independence (Adhikari, 2018). Accordingly, Nepal made the move of re-establishing diplomatic relations with China in 1955 (Adhikari, 2018). In 1960, Nepal also concluded a Peace and Friendship Treaty with China.…”

“…During this period, Nepal also declared its neutrality and non-alignment. However, this act was resented by India (Adhikari, 2018). This explains that for a small state, even the act of so-called neutrality may be taken as a loss by the 'Hegemon' and an attempt of strategic risk-taking by the small state.…”

“…This explains that for a small state, even the act of so-called neutrality may be taken as a loss by the 'Hegemon' and an attempt of strategic risk-taking by the small state. Owing to its peculiar perception regarding Nepal of acting belligerent, India imposed a trade blockade on Nepal in 1989 (Adhikari, 2018) that ultimately led to end of absolute monarchy in the country in 1990.…”

“…Following the restoration of multiparty parliamentary system of democracy in Nepal in 1990, Nepal's interim Prime Minister Krishna Prasad Bhattarai reverted to closer relations with India (Upadhya, 2012) (Adhikari, 2018). This, however, initiated great power rivalry for gaining influence in Nepal.…”

Charting a New Foreign Policy Direction: Will It Deliver Better?

“…As such, Nepal has been "engaged extensively with India and China in various areas of cooperation" (MoFA, 2019b, p. 11). With the rise of China and India as the new economic powerhouses of the world, Nepal can tap the opportunity for greater economic cooperation with both the neighbours by formulating the strategies of small state economic diplomacy (Adhikari, 2018). Besides, Nepal needs to promote genial relations with its labour destination countries, especially Gulf Cooperation Council countries, since its economy is basically dependent upon remittance from these countries (KC, 2018).…”