The soft-balancing strategy in Nepal’s foreign policy

Abstract

This paper examines Nepal’s soft-balancing (hedging) foreign-policy within the competitive triangle of India - China - the United States, using Kuik’s (2021) three-attribute framework: (i) eschewing rigid alignments, (ii) pursuing seemingly contradictory measures to manage risk, and (iii) inclusive diversification for fallback options. The findings indicate that Nepal does not bandwagon with any side yet engages multi-directionally: it refrains from military alliances while maintaining defense cooperation with all three major powers and participating in multiple regional economic development initiatives. This approach generates a flexible strategy, enabling Nepal to leverage its buffer position between India and China to safeguard strategic autonomy, reduce dependency, and promote stability and development.