The pattern of development exhibited by Nepal can be explained in terms of the interactions between four variables: world system conditions, state, class and cultural values. The role of each of these variables has changed in different periods of Nepalese history. During its formative years, the expanding Gorkha state and cultural values in the form of Hindu religious ideology had been the major forces shaping Nepalese society. During subsequent periods, world system conditions in other words, global and regional capitalist conditions and the new classes they give rise to, have played a more active role in affecting the pattern of development and social change in Nepal. With a greater integration of the Nepalese state into the world system, the role of the state and the hold of dominant cultural values on the Nepalese society have weakened.
This paper first attempts to provide a conceptual framework for understanding the development process in Nepal. Second it undertakes a historical analysis of the development process in Nepal based on this framework. It also delves into the causes and consequences of the 1990 crisis.
