Basantapur Square, close to Kathmandu's Durbar Square, site of the former royal palace, now a bustling venue for souvenir sellers and other vendord
Courtesy Harvey Follender

The Nepali Congress Party

The Nepali Congress Party, a reform-oriented centrist party, has been in continuous operation since it was founded under a slightly different name in 1947. Elected to office in 1959 in a landslide victory, the Nepali Congress Party government sought to liberalize society through a democratic process. The palace coup of 1960 led to the imprisonment of the powerful Nepali Congress Party leader, B.P. Koirala, and other party stalwarts; many other members sought sanctuary in exile in India.

Although political parties were prohibited from 1960 to 1963 and continued to be outlawed during the panchayat system under the aegis of the Associations and Organizations (Control) Act of 1963, the Nepali Congress Party persisted. The party placed great emphasis on eliminating the feudal economy and building a basis for socioeconomic development. It proposed nationalizing basic industries and instituting progressive taxes on land, urban housing, salaries, profits, and foreign investments. While in exile, the Nepali Congress Party served as the nucleus around which other opposition groups clustered and even instigated popular uprisings in the Hill and Tarai regions. During this time, the Nepali Congress Party refused the overtures of a radical faction of the Communist Party of Nepal for a tactical alliance.

Although the Nepali Congress Party demonstrated its ability to endure, it was weakened over time by defection, factionalism, and external pressures. Nevertheless, it continued to be the only organized party to press for democratization. In the 1980 referendum, it supported the multiparty option in opposition to the panchayat system. In 1981 the party boycotted the Rashtriya Panchayat elections and rejected the new government. The death in 1982 of B.P. Koirala, who had consistently advocated constitutional reforms and a broad-based policy of national reconciliation, further weakened the party.

In the 1980s, the Nepali Congress Party abandoned its socialistic economic program in favor of a mixed economy, privatization, and a market economy in certain sectors. Its foreign policy orientation was to nonalignment and good relations with India. Although the party also boycotted the 1986 elections to the Rashtriya Panchayat, its members were allowed to run in the 1987 local elections. In defiance of the ban on demonstrations, the Nepali Congress Party organized mass rallies in January 1990 that ultimately triggered the prodemocracy movement.

Following the humiliating defeat of party leader K.P. Bhattarai by the communist factions in the 1991 parliamentary elections, Girija Prasad (G.P.) Koirala was chosen by the Nepali Congress Party as leader of its Parliamentary Board. As prime minister, he formed the first elected democratic government in Nepal in thirtytwo years. G.P. Koirala was the third of the Koirala brothers to become prime minister. Along with his elder brother, B.P. Koirala, he was arrested in 1960 and was not released until 1967. After a period of exile that began in 1971, he returned to Nepal in 1979 under a general amnesty. He was elected general secretary of the party in 1976 in a convention at Patna and played a key role in the prodemocracy movement. G.P. Koirala was known for favoring reconciliation with the left, but he also wanted to pursue national unity and Western-style democracy.

Data as of September 1991

NOTE: The information regarding Nepal on this page is re-published from The Library of Congress Country Studies and the CIA World Factbook. No claims are made regarding the accuracy of Nepal The Nepali Congress Party information contained here. All suggestions for corrections of any errors about Nepal The Nepali Congress Party should be addressed to the Library of Congress and the CIA.