The mass frustration among Nepal’s Gen Z, driven by deep-rooted corruption and fragile governance, erupted into a peaceful protest on 8 September 2025. For years, young Nepalis have watched their country languish at the bottom of global rankings: with a Transparency International score of 38, Nepal ranks 108th worldwide, reflecting a state plagued by weak administration and failing political accountability.
Gen Z, with constant access to global information through digital platforms, could no longer ignore the gap between Nepal’s stagnant governance and the progress unfolding elsewhere. Their disillusionment with the nation’s economic and political condition crystallized into an unprecedented wave of dissent.
The election of Nepal’s first female Prime Minister, former Chief Justice Sushila Karki, marked the most visible victory of this protest. Her appointment is historic not just in terms of gender, but because it demonstrates the immense power of public pressure—especially from the younger generation—to demand change. Expectations now run high that her administration, grounded in judicial integrity, will launch long-overdue reforms and curtail corruption.
Yet political change alone will not satisfy the aspirations fuelling this movement. Nepal has secured a legal and constitutional way forward, but without an equally robust economic roadmap, the movement risks losing momentum. Lessons from other nations show both the promise and peril that come in the wake of people’s protests.
In 2008, Iceland’s youth rose against corrupt bankers and unaccountable leaders after the financial system collapsed. GDP plummeted by 6.5 percent in 2010, unemployment soared, startups folded, and young people lost access to credit. Yet Iceland emerged stronger: it rebuilt its financial sector with transparency, reinforced judicial independence, and expanded social welfare. The result was not only recovery but also renewed trust in governance.
Eastern European states, such as Estonia, faced similar turmoil. Confronted with governance inefficiencies and economic stagnation, Estonia transformed itself through digital reforms: e-governance, online payment systems, and transparent procurement. This slashed opportunities for bribery and red tape, creating one of the most admired governance models globally.
The Arab Spring in Tunisia (2010–11) toppled President Ben Ali but also triggered immense economic hardship. World Bank data highlights how unemployment, fiscal deficits, and livelihood crises engulfed the nation. GDP growth stagnated around 1.4 percent, forcing Tunisia to rely on external support from the International Monetary Fund (IMF) and World Bank. Development eventually resumed, but progress was painfully slow, reminding us that protests can succeed politically yet falter economically if not backed by strong strategies.
Chile in 2019 offers another case. Protests shrank the economy by –2.1 percent in Q4 that year, with annual GDP growth falling to 1.1 percent. But constitutional reform, youth engagement, targeted fiscal measures, and stronger social safety nets enabled recovery. Trust was restored, demand revived, and growth rebounded.
The Gen Z movement will carry meaning only if it translates into economic revival, fair governance, and reduced corruption. The results of any protest must be tangible in people’s lives. Superficial political reshuffling without real financial and social improvements risks alienating the very citizens who fought for change.
What Nepalis demand is clear: jobs, security, and a healthy financial environment. Progress must be steady, visible, and reported transparently. Publishing progress reports, setting clear timelines, and ensuring equal benefits from reforms are essential. Judicial accountability lies at the core of this transformation: without it, transparency and fairness will remain elusive.
Nepal’s recovery must begin with uncompromising action against corruption across all sectors. Gen Z will not tolerate even a trace of it. Reforms should include transparent procurement and digital tax collection systems, strong, independent oversight bodies, modern e-governance to cut red tape, and policies that restore trust among citizens and investors alike.
Education must also be depoliticized. Scholarships granted by embassies should not be politicized, nor should teaching jobs be manipulated by parties. A clean education system with modern curricula focused on skills and employability will create a pipeline of capable young workers.
In the job market, frustration is fuelled by unemployment, unfair wages, and politically influenced hiring. These conditions drive brain drain and mass foreign employment. Nepal needs a youth-centric employment strategy: modernization of the agro-industrial sector, digital job platforms, recognition of part-time work, and strict implementation of constitutional labour rights.
Infrastructure development is another sore point. Projects riddled with corruption collapse within years, wasting public funds. Private contractors collude with politicians, inflating costs while delivering substandard work. Effective monitoring and evaluation could reverse this cycle, ensuring durable, high-quality infrastructure.
What Nepalis demand is clear: jobs, security, and a healthy financial environment. Progress must be steady, visible, and reported transparently. Publishing progress reports, setting clear timelines, and ensuring equal benefits from reforms are essential.
Nepal also holds untapped potential in sectors like hydropower and eco-tourism. By investing in hydropower, the nation could export electricity to India and Bangladesh, creating a steady revenue stream. Adventure tourism, trekking, and cultural heritage promotion can boost eco-tourism. Incentives for green projects and small- to medium-scale industries can spark a new wave of growth.
Above all, reforms must focus on judicial integrity. Without a transparent, efficient, and fair legal system, neither corruption nor economic inefficiency can be meaningfully addressed. Specialized fast-track benches or tribunals for corruption cases, with strict timelines, could demonstrate real—not symbolic—accountability.
Equally critical are property rights and contract enforcement. Domestic and foreign investors alike hesitate to commit capital where agreements can be broken with impunity. A transparent legal system that upholds contracts could unlock vast amounts of investment in industries, startups, and infrastructure.
Judicial independence must be guaranteed, shielding judges and law enforcement from political interference. Specialized business courts and mediation centres could provide quicker dispute resolution, lowering the cost of doing business and encouraging entrepreneurship.
The Gen Z protest represents more than just political upheaval; it is a once-in-a-generation chance to rebuild Nepal’s governance and economic frameworks. But the momentum will fade if reforms remain confined to politics.
Economic revival, backed by judicial reform, is the only sustainable way to honour the sacrifices and hopes of the youth. If Nepal seizes this moment, it can emerge stronger, fairer, and more resilient. If it fails, the sense of betrayal could deepen disillusionment beyond repair.
Nepal’s youth have spoken. Now it is the responsibility of the state to deliver—not just with words, but with results.
The writer is a student of economics at Patan Multiple Campus.
Views are personal.
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