By P.R. Pradhan

 

Since former King Gyanendra Shah called for adopting the “Prithivi Path” as a roadmap for Nepal’s prosperous future, several foreign friends have asked me what this concept entails. In response, I explain that the Prithivi Path is a guiding framework for building an economically strong Nepal while safeguarding its independence, sovereignty, unity, and inclusiveness.

At the heart of the Prithivi Path lies the Divya Upadesh (Divine Counsel) of the great King Prithvi Narayan Shah, the unifier of modern Nepal. These teachings, delivered to his courtiers and priests towards the end of his life (around 1774–75), outline the fundamental domestic and foreign policies essential for national prosperity. The Counsel serves as a timeless blueprint for good governance, economic growth, and national security.

The text recounts the King’s motivations and strategies during the unification of Nepal, offering both historical facts and personal reflections.


Prithvi Narayan Shah described Nepal’s geopolitical position as a “yam between two boulders” — vulnerable between China and British India — underscoring the need for careful diplomacy.

He advocated a balanced approach in dealings with powerful neighbors, avoiding dependence on any one power.
His counsel emphasized strong governance, a capable military, and care for the welfare of soldiers and citizens alike.

The King warned against corruption, called for merit-based appointments, and stressed honesty and integrity in public service.


Written in the old Nepali dialect, the Divya Upadesh is considered a cornerstone of Nepali literature and a foundational text on statecraft.

Relevance in Today’s Context

Globally, major powers are prioritizing self-interest: U.S. President Donald Trump championed “Make America Great Again,” Indian Prime Minister Narendra Modi advances “India First,” and China is rising as a superpower with a successful mixed economy model blending socialism and market mechanisms. Meanwhile, the ideal of unfettered free-market capitalism is waning.

In this evolving world order, Nepal must apply the essence of the Divya Upadesh:

Strive for self-reliance in key sectors, particularly agriculture; Promote and protect domestic industries, replacing imports where feasible; Develop electric-powered transportation systems and electricity-based industries; Provide affordable electricity to both industries and households; Avoid over-reliance on electricity exports; instead, use energy to power national growth; Practice an independent foreign policy grounded in peace, Panchsheel, and non-alignment, maintaining equidistant relations with all friendly nations.

Kings Mahendra and Birendra largely adhered to the Prithivi Path during their reigns. However, after the 1990 political shift, Western influence pushed Nepal’s political parties to dismantle state-owned industries instead of reforming them under a public-private partnership model. Nearly all government industries were sold off, often under the pretext of unprofitability.

In a developing country like Nepal, the state’s role should not be judged solely on profit. In a market where “demand and supply” is distorted, brokerism has flourished. Today, a small circle of brokers dominates multiple sectors, undermining genuine economic growth. Dismantling this entrenched broker network is essential to revive Nepal’s productive capacity and economic sovereignty.

It is now widely acknowledged that the present model of federalism has failed to deliver. The country’s revenue is insufficient even to cover the inflated general expenditures that arose after the adoption of the new political system. This has placed a heavy burden on the national economy without producing proportional benefits for the people.

The concept of federalism, in its current form, should be abandoned. The number of local bodies must be reduced from the present 753 to around 300, ensuring efficiency and better resource management. Similarly, the size of the Federal Parliament should be downsized, and all other unnecessary administrative expenses must be eliminated.

The current practice of borrowing foreign loans merely to repay previous debts and interest is unsustainable and dangerous. If this trend continues unchecked, Nepal risks falling into a severe debt trap and, ultimately, facing the fate of a failed state. Immediate corrective measures are essential to restore fiscal discipline and protect the country’s economic sovereignty.