From Non-Alignment to Strategic Balancing: Evolution of Nepal’s Foreign Policy in the 21st Century

Abstract

Background: Nepal's foreign policy has historically been grounded in non-alignment, yet intensifying India-China competition, economic interdependence, and domestic political transformation have increasingly challenged this traditional orientation. This study examines whether Nepal's contemporary foreign policy represents a transition from non-alignment toward strategic balancing.

Methods: The study employs a qualitative single-case design covering 2000 to the present. Evidence is drawn from official policy documents, diplomatic statements, reports of international organizations, and peer-reviewed scholarship. The data are examined through thematic analysis and process tracing to identify patterns of continuity, diversification, hedging, and strategic adjustment.

Results: The findings indicate that non-alignment remains an important normative identity, while Nepal's operational foreign policy increasingly reflects strategic balancing. This transition is evident in simultaneous engagement with India and China, diversification of economic and development partnerships, participation in both Chinese and Western-supported initiatives, and continued reliance on multilateral institutions. Geopolitical competition, economic dependency, and domestic political change emerge as the principal drivers of this transformation.

Conclusion: Nepal has not abandoned non-alignment. Instead, it increasingly combines normative non-alignment with pragmatic strategic balancing to preserve autonomy under conditions of asymmetric interdependence.

Novelty: The study distinguishes hedging from strategic balancing and develops an integrated small-state framework explaining Nepal's gradual transition from normative non-alignment toward multidimensional strategic balancing.