I have often wondered why Nepalis tolerate such a poor government and so many hardships. They work very hard and they are smart, individually. I have just heard a couple of things that makes me think that Nepal will continue to stagnate.
1. One of my clerks just finished her end of the school year exams. One exam was on caste. Apparently caste and where you are to stay in society is even taught in high school.
2. Another clerk was explaining the festival were are currently having (bringing water from Patan to Kathmandu on a giant wooden chariot.) He was very proud that his caste is responsible for this festival.
3. I just watched a TedX talk on open defecation in India. In India over half the population defecate in the open and over half the people on the planet who defecate in the open are in India. Even in Bangladesh and in African countries the proportion is less than 10%. They explored why and the reason is the caste system in India.
Even though pit toilets are easy to construct and cheap ($50.00), Indians refuse to build one until they can build one that will hold 20 years of waste. These huge pits cost about $1000 and few Indians can afford this.
1. Open defecation causes a huge increase in child death. So, this practice has a huge social cost.
2. The reason Indians won't build the smaller ones is that they have to be emptied every year. This is beneath the dignity of their caste, so they defecate in the open, instead.
The refusal to build pit toilets is due to the perception that they will be become "unclean" in their caste and lose status when they have to empty a pit toilet.
In India, caste rules their lives. I think that is true in Nepal, which, in many ways, is India-lite. The people seem to fully expect and tolerate a corrupt and almost useless government because they seem to believe they don't have the dignity (caste worthiness) to live any better.
I would think that the internet would spread new ideas in Nepal. But, the Nepali seem very resistant to change. I have read many cases about Indians be very afraid of losing caste status. It seems that Nepalis may be the same way. This is because your caste seems to be the main safety net and group support that caste members have.
And, when you add in the fact that Nepal is land-locked, they have it even harder.
I think that as long as Nepalis cling to the caste system, they will continue to stagnate as a country. It seems so ingrained in their culture.