The policy of reform and opening-up initiated by Deng Xiaoping in 1978 transformed China into the world’s second-largest economy within just four decades. Yet this journey is not merely a matter of economic statistics. It is a living saga of how capable leadership lifted a nation from the depths of poverty and guided it toward the heights of prosperity. In particular, President Xi Jinping’s honest political leadership, unwavering accountability to the nation, and profound dedication to the people have elevated China’s development to a new level. During the same period, however, Nepal—China’s southwestern neighbor—continued to fall behind in the race for development. The question arises: what did China do that Nepal failed to do? And why was Nepal unable to benefit from China’s prosperity?
The first foundation of China’s success is its unwavering commitment to poverty alleviation. In the 1980s, more than 80 percent of China’s population lived below the poverty line. But China did not regard poverty as destiny; it treated it as a challenge. In 2013, President Xi Jinping advanced the concept of “targeted poverty alleviation.” Every poor household was identified, programs were designed according to their needs, and regular monitoring was ensured. Xi himself visited impoverished villages. From remote mountain areas to desert settlements, he traveled to understand the suffering of the people at close range. This was not merely an administrative order; it was the personal commitment of the head of state.
From the central government to the village level, the Party mechanism was mobilized. Millions of officials were deployed to villages. Roads, electricity, drinking water, education, and health services were extended to remote communities. Settlements that were geographically impossible to sustain were relocated to areas with better facilities. In 2020, China announced that the final 98.9 million rural poor had been lifted above the poverty line. According to the World Bank, China alone contributed 75 percent of the total global progress in poverty reduction over the past 40 years. This is not merely a statistic; it is the rejuvenation of a civilization.
The most important aspect of President Xi’s leadership is integrity and accountability. Soon after assuming power, he launched a historic anti-corruption campaign under the policy of catching both “tigers and flies.” From high-ranking leaders to local officials, no one was granted immunity. Millions of corrupt officials were brought under action. This restored the Chinese people’s trust in the state. Xi himself has said, “Power is given by the people, and therefore power must be used for the people.” This statement did not remain merely a phrase in a speech; it was reflected in implementation. The culture of discipline, moral education, and accountability within the Party made China’s administrative capacity far stronger than before. That is why China was able to complete major national projects within the set timeframe.
President Xi’s foresight is also clearly visible in China’s economic growth. Declaring a “new era,” he guided China toward high-quality development. The transformation from a production-oriented economy to an innovation-driven economy, global partnership through the Belt and Road Initiative, and the vision of the “Chinese Dream” lifted China to new heights. Under Xi’s leadership, China built the world’s largest high-speed railway network. It became a global leader in artificial intelligence, space technology, and green energy. Landing on the far side of the moon, sending a rover to Mars, and operating its own space station—all these achievements are the result of a clear national vision, personally led by President Xi.
Behind all these achievements lies China’s policy of peaceful development and coexistence. President Xi advanced the concept of a “community with a shared future for mankind.” Its essence is cooperation even amid competition, and dialogue even amid differences. China has not started any war in the past four decades. It has stood in favor of resolving border disputes through peaceful negotiations. Its historic mediation between Saudi Arabia and Iran, its peace proposal on the Ukraine crisis, and its development partnerships from Africa to Asia all demonstrate that China’s rise is not a path of military expansion, but one of cooperation and prosperity. Xi has said, “China will never build its development on the suffering of others.” This moral outlook has established China as a credible power on the world stage.
Now comes the question of Nepal. Nepal shares a border of more than 1,400 kilometers with China and has historical, cultural, and economic ties with it. Yet why could Nepal not benefit from China’s four-decade miracle? The answer is multidimensional.
First, political instability and the absence of leadership. When China adopted the policy of reform and opening-up, Nepal was trapped in a cycle of political change. The restoration of democracy in 1990, the republic in 2006, and the prolonged transition of constitution-making thereafter prevented Nepal from developing a clear vision for development. China did not change the direction of its economic policy even once in four decades. In Nepal, priorities changed with every change of government. The greatest weakness remained the absence of honest and accountable leadership. Nepal failed to establish a tradition of leadership dedicated to the country and the people in the manner demonstrated by President Xi. Power became not a medium of service, but an instrument of self-interest. Nepal did not show the same firm resolve against corruption that China demonstrated. As a result, citizens’ trust in the state continued to erode.
Second, weak governance and poor institutional capacity. Nepal lacked the level of centralized planning and local implementation model that China adopted in poverty alleviation. Inefficiency in public service delivery, corruption, and political power-sharing weakened the capacity of the state. Institutions from the planning commission to local governments existed on paper, but implementation remained consistently weak.
Third, the failure to utilize opportunities with neighboring China. China is the world’s largest source market for tourism. Despite being a center of natural beauty, cultural diversity, and religious significance, Nepal has been unable to consistently cross the mark of one million annual tourist arrivals. Lack of infrastructure, limited international airport capacity, and weak tourism promotion strategies prevented Nepal from benefiting from the potential of Chinese tourists. Plans to connect Nepal with China’s 45,000-kilometer high-speed railway network have remained confined to discussions for years.
Fourth, weakness in diplomatic balance. Nepal is a country situated between two large neighbors. But instead of making relations with China and India complementary, Nepal has often been entangled in the game of balancing one against the other. This has limited the development benefits that could have been gained from both neighbors. Nepal signed on to China’s Belt and Road Initiative, but the lack of domestic consensus and administrative capacity prevented concrete projects from moving forward.
Fifth, lack of investment in human capital. China’s massive investment in education, health, and skills development is the foundation of its current technological success. Nepal did invest in education, but the link between quality education and employment remained weak. Skilled human resources migrated abroad. China provided opportunities for its talent within the country, while Nepal sent its talent overseas. Billions of rupees enter Nepal every year in remittances, but investment of that income in productive sectors remains negligible.
Despite all this, there is no reason for despair. China’s development still keeps the door of opportunity open for Nepal. The lessons Nepal must learn from China’s experience are clear. First, political stability and honest leadership are prerequisites for development. The accountability to the people, zero tolerance toward corruption, and dedication to national development shown by President Xi are exemplary lessons for Nepal’s leaders as well. Second, poverty alleviation requires targeted, measurable, and monitorable programs. Third, investment in infrastructure is the engine of economic growth. Fourth, relations with neighbors must be viewed not as a zero-sum game, but through the lens of complementarity. Fifth, building human capital and creating employment within the country are the foundations of long-term prosperity.
China’s four-decade journey has shown that with honest leadership, correct policies, and national consensus, any country can change its destiny. President Xi Jinping’s sense of responsibility toward the nation, affection for the people, and strict campaign against corruption are sources of inspiration for the entire developing world. Nepal has natural resources, a young workforce, and a geostrategic location—assets that China itself did not possess in the same way four decades ago. China’s success has shown Nepal a mirror. The question now is whether Nepal will look into that mirror and learn its lessons, or whether it will spend another four decades losing opportunities.
