Looking back at the history of Nepal's governance, it appears that a unitary state system governed from the center has been practiced for a long time.

It is necessary to accept the harsh truth that the unitary system could not manage the geographical, ethnic, linguistic and cultural diversity of the country. Nepal was divided into four development zones in 2029 BS and five development zones in 2037 BS, which was a weak attempt at administrative decentralization. Rights were reserved at the center. As a result, equal participation in development and access to it by all was not possible. This failure, the dissatisfaction generated by the 2047 BS constitution, and finally the 'people's war' that began in 2052 BS radically changed the political horizon of Nepal.

Among the great achievements of the ten-year Maoist conflict and the 2062/63 BS people's movement, the declaration of a federal democratic republic, the end of the monarchy and the comprehensive peace agreement are milestones in history. The achievement of a republic is a strong foundation for ensuring national unity, social justice, economic prosperity and good governance for a diverse nation. In the unitary system, when the center tried to suppress all identities under the umbrella of a single nationality, neglect and discrimination were felt. 

Federalism has brought diverse ethnic, linguistic and cultural groups into the mainstream of the state through 7 provinces. It has constitutionally ensured their right to self-governance. When a community sees its participation and respect in the state, its sense of belonging to the nation automatically increases. Federalism aims to address existing social and economic discrimination. It has provided opportunities for indigenous peoples, Dalits, women and marginalized communities to lead in local and provincial governments. Approximately 40-45 percent of women, Dalits and tribals to be represented at the local level is a product of this system. The mandatory presence of women in executive positions such as deputy chiefs has made local governments inclusive and accountable. It fulfills the constitutional obligation of building an egalitarian society based on plurality. Federalism finds a way to solve local-level problems by giving them a political form. It strengthens the national spirit, not fragmentation. 

In a unitary state system, everything from planning to budget allocation was at the discretion of the center. This has led to widespread regional imbalances and inequalities in the mobilization of resources required for development and budget distribution. Federalism has envisioned a radical change in this. The most important aspect of federalism is fiscal federalism. The old practice of providing resources and means at the behest of the center has been ended and a constitutional provision has been made for the equitable distribution and transfer of revenue through the 'National Natural Resources and Finance Commission'. Four types of grants (equalization, conditional, complementary and special) from the center go to the local and provincial levels.

Local governments have been given the authority to collect taxes and fees, develop and manage local infrastructure, drinking water, agriculture, small hydropower, etc. This is expected to ensure proper utilization and mobilization of resources available at the local level and accelerate development work. It is believed that rapid progress will be achieved if the people participate in the development of their own areas. This is because the people have direct oversight over the plans and budgets prepared by the local government. The intention is to make development people-oriented and accountable to the people.

A total of 761 governments are in existence, including 753 local governments, 7 provincial governments and the federal government. This means that people do not have to go to Singha Durbar to find solutions to their problems. Instead, the government itself has reached the doorsteps of the people. Federalism extends the principle of separation of powers and checks and balances by allocating state power to the federal, provincial and local levels. It completely eliminates the threat of authoritarian rule and makes the multi-party competitive democratic republican system of governance sustainable. With people's representatives leading the government at the local level, pressure has been created to make the administrative machinery more accountable and responsive to the service recipients.

Many problems have been seen during the implementation of federalism. For example, the control-oriented mentality of the center, the apathy of the bureaucracy, double taxation, and the suspicion that federalism is at risk due to weak spending capacity are not unfounded. In this context, the concept of federal centralism becomes important. Federal centralism does not mean the absolute power of the center, but the need for a strong and effective center in matters of national interest.

Problems arise in federalism, but finding solutions to them is its success. Now we need to work on these points:

• Collect revenue from one place and distribute it fairly
• Make the Finance Commission fully autonomous and functional
• Immediately draft provincial laws that have been stalled due to the lack of federal laws 
• Remove the system of District Coordination Committees or limit its work to pure coordination
• Restructure the administration by forming a Provincial Service Commission
• Make the National Coordination Council effective, clarify the powers of the provincial and local levels by reviewing the expansion of the list of powers 
• Political parties should orient leaders/workers about the essence, responsibilities, and service-oriented governance system of federalism
• Implement new standards of public finance management to prevent corruption and waste

Nepal's practice of federalism is no different from other federalism experiences in the world. Countries like America and Yugoslavia are both successful and unsuccessful examples. The key to success is not the governance structure. Rather, it is the relationship between the services provided by the state to the people and the state's capacity. Federalism is not a goal, but a tool to achieve the goal. If this tool is used properly, sustainable peace, good governance, development and prosperity are possible in the country.