The rise of the Rastriya Swatantra Party (RSP) as a significant political force is partly attributed to a recent youth-led Gen Z movement, along with increasing dissatisfaction with traditional political parties that have long failed to meet the expectations of the general public. This change in the country’s internal political dynamics affects its external affairs regarding foreign policy matters. Now, the incoming government has the important task of reevaluating and resetting foreign policy matters. It is necessary to do so for better alignment with the needs and expectations of citizens.

The RSP issued a civil contract while campaigning for votes in the March polls. It emphasises the importance of balanced diplomatic relations and aims to utilise the capabilities of the diaspora to foster economic growth. The foreign policy mentioned in the party’s civil contract aligns with the Constitution, which emphasises world peace, the UN Charter, non-alignment, the five principles of peaceful coexistence and international law as guiding principles. It means some of the foreign policy will be continued with the new incoming government. The incoming government also intends to focus on economic diplomacy, international cooperation, diversifying opportunities for direct investment and expanding economic relations beyond neighbouring countries. Additionally, it highlights the importance of Nepal’s soft power diplomacy.

As the party promised to change Nepal’s status from a buffer state to a vibrant bridge, it needs to devise policies, plans and programmes in a way that will benefit the people. What kind of comparative advantage do we have in which productivity must be considered while executing foreign policy? The major question is how we can gain the confidence of both neighbours—India and China—for trilateral economic connectivity, given their unfinished projects and long border disputes in the region.

The great power dynamics, including India, China and the West, have largely shaped Nepal’s foreign policy in practical terms. All three powers have had a significant impact on Nepal’s economy, politics and culture. The US has provided economic support through the Millennium Challenge Corporation (MCC) to build and upgrade energy infrastructure, especially transmission lines.

On the other hand, China has been investing heavily in infrastructure projects in Nepal through the Belt and Road Initiative (BRI). India has also been investing in various sectors, ranging from education to infrastructure. As a major trading partner for Nepal, India has been providing access to markets in South Asia. Despite the presence of major powers, other non-state actors also have their own interests in the country, given its geopolitical situation. Therefore, we can assert that Nepal has transitioned from a non-aligned foreign policy to a multi-aligned one. The multi-aligned policy must be motivated by economic development, whereas the non-aligned policy needs to be confined within the security dimension due to the security concerns of its immediate neighbours, who have substantial influence in the region.

The RSP’s civil contract also prioritises leveraging the technical know-how, skills and experiences of the diaspora as a resource for economic development. The idea aims to reduce the country’s dependency on remittances and transition it towards a production and export-oriented economy. However, the country’s economic development aspirations depend on how effectively the incoming government manages the differences among major powers and ensures that their interests are not harmed through balanced diplomacy, which is often challenging to maintain, especially given the competing interests of neighbouring countries. Nepal cannot choose one over another. This limitation is imposed by the geopolitical situation, which is a crucial part of the country’s survival strategy.

The international community has flooded the party with congratulatory notes. It has two meanings: One is to acknowledge the election process and signal legitimacy, and another is to desire friendly relations with the incoming government. As a result, the governments of India, the UK, Bangladesh and the US have sent congratulatory messages to the party for the historic success in the election.

As the RSP has promised to pursue an economically oriented foreign policy, digital connectivity and infrastructure development, the incoming government has an opportunity to work hand in hand with China and ensure an environment of economic development, thereby maintaining stability in the region. The Chinese government seems hopeful that the new government can first establish a new agency for working with China. It would be best if this agency were of a commercial nature and employed a group of young Nepali people who have had extensive interactions with China and have excellent relations with it. As we know, any government that establishes diplomatic relations with China and adheres to the one-China policy will certainly continue to foster friendly relations. Nepal’s development requires various resources that China can provide and is capable of delivering. However, Nepal has not fully taken advantage of the opportunity to implement a market-oriented policy. Now, it is the right time for the incoming government to do so.

The foreign policy of the country must prioritise rational decision-making over emotional responses. Leaders should demonstrate maturity in their process of diplomatic engagements. Effective communication, genuine efforts to resolve issues, and thorough policy analysis should be evident in diplomatic interactions. Consequently, the policy of engagement should be approached with caution. This is particularly important as the RSP has introduced new, youthful leaders into the political arena, which is commendable, and they are expected to govern for at least five years. There can be no room for errors or excuses, as the public’s hopes for stability and development depend on their leadership.

In responding to international events, it is crucial to ensure that actions align with national interests. We are now at a pivotal moment to observe how the incoming RSP government will reassess policies and redefine relationships while steering the country in an increasingly competitive global landscape. In the end, given the current volatile geopolitical climate, it appears that the rule-based order has been facing a crisis. At this moment in history, Nepal must adopt balanced diplomacy and pursue its own national interests suitable for Nepali soil. Nevertheless, it’s time to redefine Nepal’s foreign policy and its approach.