This thesis investigates the problems inherent in the creation of federalism in Nepal. That Nepal must become a federal state is secured via the 2007 Interim Constitution; yet the negotiations on its structure have so far dragged on for years. The standstill is investigated through interviews with key stakeholders and Nepalese observers to get a full view of the situation. These interviews are then paired with political documents and a theoretical framework predominantly constructed from Arend Lijphart and Larry Diamond´s writings on the creation and structuring of democracies. 

We have used the information and theories to investigate what the disagreements on federalism are based on, what might have caused them, and whether they have any adverse effects. Our findings have shown that while there are in fact serious disagreements on the subject, they are solvable if only there is adequate political will to do so. This means that the largest problems lies in the ideological differences and understanding of democratic structures and the parties’ struggles for power. What seems to be motivating the politicians to delay federalism is that they fear they might lose their power and privilege and it has become evident that for their motivations to change something radical must happen