The second policy convention of the CPN-UML kicked off in Lalitpur on Friday with party chairman and Prime Minister KP Sharma Oli proposing “Nepali style of Socialism” in his political report.

This is a kind of policy departure in the UML from the party’s core principle of people’s multiparty democracy propagated by the late Madan Bhandari. In his new document, Oli states that socialism with Nepali characteristics will adopt a competitive, people-oriented, and transparent economic policy.

The party will discuss Oli's new proposal, as well as former President Bidya Devi Bhandari’s attempt to reenter UML politics, in the next two days. An emotional letter was distributed on behalf of Bhandari at the policy convention by her supporters.

Bhandari, a former vice-chairwoman of the party, was recently barred from obtaining the party membership. Some senior UML leaders have sought a party decision to allow her to reenter active politics.

After Bhandari started challenging Oli’s leadership, his supporters urged Bhandari that it is immoral and unethical for someone who has already become the country’s president to rejoin the party politics.

“It will continuously encourage the development of a new progressive mode of production, support the development of productive forces, ensure economic justice and a dignified livelihood for the working class, promote abundant economic output, equitable distribution, proper use of cooperatives, environmental protection, promotion and advancement of labour, and continuous inspiration for innovation and invention,” Oli’s proposal states.

“The latest technologies developed by the global human community will be adopted as needed to achieve rapid economic growth.”

Oli has not proposed abandoning the existing plurality and diversity in the Nepali society as well as its democratic credentials.

The plurality and diversity that characterise Nepali society will be harmoniously advanced within the socialist system, Oli writes. “Unity will be promoted not in a monolithic way, but in diversity.”

Taking into account the experiences of the global communist movement and socialist systems, continuous efforts will be made to keep the communist party rooted in the people, maintaining its character as a true companion of people’s feelings, Oli says in the document presented to over 2,000 party members.

The party will undergo “constant purification” to prevent corruption and bureaucratic tendencies that may arise while leading state bodies, he added.

“Efforts will be made to promote the glorious aspects of Nepali history, the vibrant dimensions of its culture, and the essence of Nepali identity. Socialism will not be seen as a sudden, foreign, or artificial system, but rather as a natural outcome of thousands of years of Nepali historical development—an extension and successor to that legacy,” said Oli.

Other core values of the Nepali style of socialism would be protecting national interests, upholding national pride, identity and independence. Advancing them will be essential responsibilities of socialism, Oli added.

Oli also proposed the idea of comprehensive democracy, ‘prosperous Nepal, happy Nepali’, and equal access to the means of production. Work will centre on industrialisation, service sector, agriculture, social justice, balancing geopolitics, long-term vision of development, and eradication of poverty, he said.

“In order to achieve these goals, where we have to focus on fundamental rights guaranteed by the constitution, the agrarian economy will be transformed into one based on small, medium, and large-scale industries, businesses, and the service sector.”

With the implementation of the “Digital Nepal” concept, government administration, the business sector, public and private services, records, data, and financial transactions will be digitised, said Oli. The entire economic and governance system will be based on information technology.

To achieve these goals, policies and the promotion of social harmony, national unity, and a strong democracy will be pursued. Modern agriculture and prosperous farmers; maximum utilisation of national resources; exploration, study, research, extraction, processing, and utilisation of mineral resources; economic upliftment of citizens through cooperatives; industrialisation and transformation of the economy and tourism for national advancement will be pursued, the document says.

At the meeting, Karna Thapa, a leader close to Bhandari, will present a “different paper” at the policy convention, according to a UML leader. The party has decided to allow Standing Committee member Thapa to express his view at the ongoing policy convention, another leader said.

Once General Secretary Shankar Pokharel presents his organisational report, Thapa will present his dissent verbally. The leadership has also agreed to distribute copies of his report to the representatives.

Thapa will read out a 32-page report mainly opposing the decision not to renew the party membership of former President Bhandari, removing the age limit of 70 years to hold party leadership positions, and scrapping the two-term limit for top leaders.

It has been proposed to limit the number of UML central committee members to 251. Party Vice-chairman Bishnu Poudel presented the proposed amendments at the second statute convention on Friday. The committee will be reduced from 301-strong to 251.

Oli has stated that the issue of former President Bhandari’s membership renewal is not a matter for discussion at the statute convention. Addressing the opening session of the convention, Oli said that questions being raised over her membership are not legal or statutory concerns.

“These questions are to be discussed in other committees,” he said. “It will be discussed in the Secretariat, Standing Committee, and Politburo. This time, we will only focus on the topics specific to this convention.”

In his paper, Oli also analyses the political characteristics of Nepali parties including the Nepali Congress.

Oli termed the ruling Congress as a “tested political force”, one that is “unfit” for making the country prosperous.

Oli described Congress as a traditional force on matters of defending democracy, running the state, and building a prosperous society. He accuses his coalition partner of failing to protect the achievements that the country gained after 1951.

Criticising the Congress party’s economic approach, Oli adds, the neoliberal economic policy it has adopted makes it “incapable of leading the campaign for prosperity”. Neoliberalism has already failed globally, and there is no possibility of this ideology providing any guidance to Nepal, he noted.

Oli also mentions in detail the existing boundary dispute between Nepal and India and his recent meeting with Chinese President Xi Jinping in Tianjin.

Under the section ‘Nation’, Oli says that then-prime minister Matrika Prasad Koirala had permitted the establishment of 17 Indian military check posts along Nepal’s northern border. “Actions were taken in a way that harmed Nepal’s national interests in water resources.”

Contrary to the clear provisions of the Sugauli Treaty, which defines Nepal’s western border as Mahakali River, the origin of the Mahakali—Limpiyadhura, Lipulekh, and Kalapani (approximately 396 square kilometers)—is currently under India’s control, he said.

Oli stated that during his meeting with the Chinese president, he clearly expressed Nepal’s disagreement over the India-China agreement concerning Lipulekh. India and China on August 20 renewed the agreement on reopening the trade route via Lipulekh pass.

Oli said that the position he presented to the Chinese president regarding Lipulekh has been recorded in audio, video, and diplomatic notes exchanged between the two countries.

“In the official talks with the President of China, I clearly said that India and China cannot make an agreement to conduct trade through our territory—Lipulekh—without Nepal’s consent. We expressed our disagreement unequivocally.”

He further mentioned that after he expressed Nepal’s disagreement, President Xi assured him that China would not undermine Nepal’s sovereignty.

“He [Xi Jinping] said, ‘We are aware of your concerns. Nepal’s sovereignty will not be compromised, and we will not allow that to happen. We support Nepal. The border issue is between Nepal and India, and you should resolve it through diplomatic means.’”

Oli concluded by saying that Nepal would hold discussions with India to resolve the border dispute.