Nepal and Bhutan in 2011

Nepal’s political transition to a democratic federal republic remains incomplete. A November 2011 agreement on post-conflict integration and rehabilitation offers reason for hope. Continued disagreements over the structure of the federal state and its form of government have delayed the constitution-making process. Corruption, impunity, and weak infrastructure combine to erode Nepali confidence in effective governance. Bhutan’s democratic exercise continues to be carefully controlled by entrenched elites, but the country held its first-ever local elections successfully and economic growth stabilized