Opinion: Democracy in South Asia at a crossroads — Lessons from Nepal

Corruption, crony capitalism, and neglect of the youth are eating away at the foundations of governance

By Geetartha Pathak

In the autumn of 2025, the world is once again reminded that democracy is not a finished product — it is fragile, especially in countries where political elites use power for personal gain. The streets of Kathmandu burning in anger, Bangladesh’s youth-led uprising of 2024, Sri Lanka’s economic collapse, Pakistan’s cycle of coups and instability — all these events show a common story. Ordinary people are suffering under corruption, unemployment, and failed promises, while a small class of elites and crony capitalists enrich themselves at the expense of the majority.

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India, the largest democracy, has so far escaped such violent convulsions. But the warning signs are visible. With rising unemployment, religious divisiveness, and an arrogant political class, the question arises: Could India face a Nepal-like explosion of frustration?

Crony Capitalism

Across South Asia, political elites and their corporate allies have mastered the art of siphoning off public wealth. Contracts for infrastructure, energy, or mining are often awarded not on merit but through connections, bribery, or party loyalty. This crony capitalism creates monopolies, shuts out small entrepreneurs, and channels public money into private pockets.

In Bangladesh, the quota system for civil service jobs became a flashpoint in 2024. Students saw it as a way for the ruling Awami League to secure loyalists’ futures, while millions of young graduates were left jobless. Anger boiled over into mass protests that eventually forced Sheikh Hasina to flee the country. At the core was not just the quota, but decades of corruption, nepotism, and economic exclusion.

In Nepal, a generation of young people saw political leaders living lavishly while ordinary families survived on remittances. When the government banned Facebook and YouTube this month, supposedly for “registration issues,” it was the last straw. Protests turned deadly, with over a dozen killed. Prime Minister Oli resigned, and the army stepped in. Youth anger at unemployment (above 20 per cent) and blatant corruption created the explosion.

In Sri Lanka, the Rajapaksa family’s misrule and corruption pushed the economy into bankruptcy in 2022. Foreign reserves vanished, inflation spiralled, and even basic goods like fuel and medicine disappeared. People stormed the presidential palace in Colombo. The Rajapaksas were forced out, but the structural rot remains —political elites looting public money while ordinary people starve.

Nepal and Bangladesh have already erupted; Sri Lanka is rebuilding after its collapse, and Pakistan continues in chronic instability

Pakistan, long trapped between military and civilian elites, shows how crony capitalism and weak institutions feed instability. Powerful dynasties — Bhuttos, Sharifs — accumulate wealth, while the army protects its own empire of businesses. The result is chronic poverty, unemployment, and a cycle of IMF bailouts. Youth make up 64 per cent of Pakistan’s population, but they see no future, leading to mass migration or recruitment into extremist groups.

India’s democratic system is much older and stronger than Nepal’s or Bangladesh’s. Yet, under the surface, similar tensions are growing. With 65 per cent of the population under 35, India has a “youth bulge.” But unemployment is a crisis. Over 20 per cent of people aged 15–24 are jobless. Even among those educated, only about 20 per cent of engineering graduates are employable. Frustration is growing.

The rise of crony capitalism is a big concern for India. Big businesses close to those in power are expanding rapidly. Small and medium enterprises — once the backbone of employment — struggle for loans and fair opportunities. Critics argue that wealth is being concentrated in the hands of a few families and corporations. Instead of addressing jobs and poverty, political discourse is increasingly dominated by religious polarisation and identity politics. This creates a distraction while real economic issues worsen.

Corruption and nepotism are rising in India. From local levels to higher offices, corruption remains deeply entrenched. Public funds for welfare schemes, infrastructure, and social development are often diverted through inflated contracts and political favouritism.

India’s Shield

Now, many people are asking — are we nearing a Nepal-style crisis in India? The answer is not immediately, but risks are rising. India still has buffers that Nepal lacked: A federal system that allows States some autonomy, a vibrant civil society, student movements, media (though under pressure), and a tradition of democratic elections where governments change peacefully.

But if unemployment remains high, corruption is unchecked, and politics is focused only on religion and power games, then anger could erupt. Digital platforms give India’s youth the same tools Nepali and Bangladeshi students used to mobilise. A sudden spark — such as a corruption scandal, a policy seen as unjust, or a clampdown on online spaces — could ignite unrest.

Avoid Nepal’s Mistakes

If South Asia wants to prevent democratic collapse and avoid repeating Nepal’s and Sri Lanka’s mistakes, certain urgent steps are necessary.

Governments must prioritise job creation, especially in sectors like manufacturing, renewable energy, health, and technology. Skill development programmes should be genuine, not cosmetic. Youth must feel there is a future for them at home.

Transparent public procurement, independent regulators, and strong anti-corruption watchdogs are needed. Political funding should be transparent so that big corporations cannot buy influence unchecked.

Millions of Indian youth cannot read a Class II text even in high school. Poor-quality education creates unemployable graduates. A massive investment in schools, vocational training, and affordable universities is necessary.

Politics cannot revolve only around identity, religion, or dynasty. Parties must open up to youth leaders, not just recycle the same families. Mechanisms like youth parliaments, student advisory boards, and mentorship programmes could bring fresh voices.

Peaceful protest, freedom of expression, and social media spaces must be safeguarded. Suppressing dissent often backfires, as seen in Nepal’s internet bans or Bangladesh’s crackdown.
Learning From Others

South Asian countries must learn from each other. Sri Lanka shows what happens when corruption drains national wealth. Bangladesh shows how ignoring youth anger can topple a regime. Nepal shows the dangers of internet clampdowns and elite arrogance. Pakistan shows how military-civilian elite capture keeps the nation in poverty. India should not assume it is immune.

Democracy in South Asia is at a crossroads. Corruption, crony capitalism, and neglect of the youth are eating away at the foundations of governance. Nepal and Bangladesh have already erupted. Sri Lanka is rebuilding after its collapse. Pakistan continues in chronic instability.

India’s story is not yet one of collapse, but the symptoms are present — rising unemployment, corporate capture, corruption, and divisive politics. If unaddressed, these pressures may one day spill into the streets in ways as dramatic as Kathmandu’s protests.

With its size, diversity, and strong civil society, India can still chart a different path. The way forward lies in jobs, education, anti-corruption reforms, and giving young people a genuine stake in democracy. Only then can democracy in India and South Asia move from exhaustion to renewal.

(The author is a senior journalist from Assam)