Democratic politics in Nepal being extremely fictionalised successive governments in Nepal found it difficult to implement governmental policies and programmes. One result of this was that the rate of economic growth was modest, but it did not match the rate at which population grew.

Here, it is sufficient to note that massive unemployment and illiteracy in a society that had an ethnically and religiously fragmented population provided a fertile ground for the emergence of Maoist movement in Nepal. The Maoists were once a part of the mainstream politics under the banner of United Peoples Front of Nepal (UPFN) led by Baburam Bhattarai.

Following a split in the party, the Baburam faction failed to get the recognition of the Election Commission to participate in the mid-term elections in 1994. This group joined hands with the Communist Party of Nepal (Maoists). The declared aim of the Maoists is to establish a ‘people’s government’ through peoples war that is inspired by Marxism-Leninism-Maoism. In 1996 they launched the Peoples Movement by carrying out attacks in different parts of Nepal.

Characterising the states as a semi-feudal organisation, the Maoists held it responsible for the prevailing socioeconomic ills within the country. They have also projected India and the US as the imperialist powers trying to subvert the interests of the people of Nepal by aligning with the rightist forces within Nepal.

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Among other demands, they have asked for the revocation of the Treaty of Peace and Friendship signed with India in 1950, controlling and systematising the open border, discontinuation of Gorkha recruitment in the Indian armed forces and preventing the cultural imperialism through Hindi films and magazines. By the end of 2000 AD, the Maoists were active in over two thirds of the 75 districts of Nepal.

They had set up ‘people’s government in five districts of western Nepal. In the areas under their control, the Maoists do local policing, settle local disputes, collect levies from the people and even set up banks. The government of Nepal has used force, persuasion and negotiation to tackle the Maoist problem.

Since March 2001, several rounds of peace negotiations have been held between the government and the Maoists. But due to irreconcilable differences and mutual suspicion, these efforts have not borne result. Terror and violence by the insurgents continued and the security forces have stepped up counter insurgency operations. According to official sources, by early 2004, the fight against the eight year Maoist insurgency has claimed nearly 8,000 lives on both sides, including 2,800 security force personnel.