Building the Foundations of Modern Nepal

The institutions that UNDP has helped build and develop in the last 60 years have played a key role in Nepal’s modern history.

July 28, 2026

Collage of four buildings: red brick complex, glass tower, white-columned palace with fountain.

In the early 1970s, Kathmandu’s Jhochhen Tole—famously known as Freak Street—was the ultimate destination on the global “Hippie Trail.” Travelers flocked from Europe to Asia looking for a cheap holiday, legal weed shops and a spiritual atmosphere.

Today, Nepal’s global identity has evolved far beyond those early days. The country now welcomes over a million tourists annually, drawn by its world-class heritage and breathtaking Himalayas. Behind this incredible transformation lies a 60-year journey of institutional growth. As UNDP marks six decades of partnership in Nepal, we look back at how we helped build the foundational institutions driving the nation’s modern economy, governance, and resilience.

Photo of a busy street with a pagoda-style temple on the left and colorful shops, with pedestrians. — Jhochhen street, Kathmandu during the 1970's.

Transforming tourism into an economic pillar

Tourism is now a cornerstone of Nepal's economy, employing over 200,000 Nepalis and contributing more than seven percent to the national GDP. Around 1.14 million foreign tourists visited Nepal in 2024 to enjoy its natural beauty, for pilgrimages and cultural experiences, and to trek in the lap of the world’s tallest mountains. Nepal Tourism Board did a lot of work to take Nepal to the world and to change global perception about what Nepal had to offer. The board itself was established in 1998 with UNDP support.

The Tourism Board and United Nations Development Programme (UNDP) have partnered on various tourism development and promotion projects. In 1998, a year after UNDP began its first tourism project - the Partnership for Quality Tourism with the government of Nepal - it helped establish NTB and modernized destination promotion. Following this, the Tourism for Rural Poverty Alleviation Programme, created sustainable jobs for disadvantaged groups across six districts. This included Taplejung in the east to Rupandehi and Dolpa in the west between 2002 and 2007.

Photograph of hikers along a rocky trail beside a small stream, with snow-capped mountains behind. — Photo: UNDP Nepal

In 2021, NTB and UNDP launched the Sustainable Tourism for Livelihood Recovery Project to help uplift tourism-dependent communities who had been the hardest hit by the pandemic. It helped over 20,000 people receive short-term work opportunities - mainly in developing and upgrading small-scale tourism infrastructure in tourist destinations. The ongoing Sustainable Tourism Project is part of this same long-running partnership, and aims to boost tourism and economic growth in Nepal by improving facilities, promoting Nepal on international platforms and encouraging collaboration between the public and private sectors.

Photo of five workers in safety vests and hard hats, wearing masks, in a pine forest.

Wooden covered bridge over a rushing rocky stream with snow-capped mountains in the distance.

Two workers in yellow hard hats and red clothing bend over a tool on a dirt slope in a forest.

Nepal Tourism Board is one of many institutions that UNDP has supported in its 60-year history in Nepal. It also helped establish and formalize the Nepal Academy of Tourism and Hotel Management (formerly the Hotel Management and Tourism Training Centre) in 1972 with support from the International Labour Organisation for producing trained manpower in the tourism sector.

Three people posing on a camel in a desert, black-and-white photograph.

Graphic, black-and-white site plan with grid-like blocks and a circular facility on the right.

White neoclassical estate with columns and manicured lawn under a cloudy sky.

Strengthening governance and human rights

A resilient nation requires strong, inclusive institutions. Over the decades, UNDP has provided critical technical and operational support to establish Nepal's core democratic pillars including the National Human Rights Commission of Nepal, the Election Commission of Nepal, National Dalit Commission, the National Women’s Commission, the Nepal Bar Association, and the Office of the Attorney General.

Man in a suit wearing a Nepali hat sits at a desk with papers and two computer monitors.

White colonial-style building with a decorative gate and circular garden in front.

Formal meeting in a conference room with attendees around a long table.

Photograph: four people on a stage with a blue banner backdrop and a flower arrangement.

Photo of a blue archway labeled National Human Rights Commission with a white government building behind.

Brick multi-story office building with blue-tinted windows, gated entrance, and a white canopy.

The National Human Rights Commission of Nepal is a crucial institution that UNDP supported in formalizing in 2000, helping protect and foster human and civil rights. The Federal Parliament Secretariat, the seven provincial assemblies, and their secretariats were also set up with UNDP’s technical assistance through the Parliament Support Project as well. Similarly, crucial policy and infrastructural support was provided to the National Dalit Commission, the National Women’s Commission, Nepal Bar Association, the Office of the Attorney General among others obtained both technical and physical/infrastructural support including developing policy, guidelines and strategies for better service delivery. Furthermore, the Election Commission of Nepal received institutional strengthening, professional capacity building, and operational support to hold inclusive elections through UNDP’s Electoral Support Project between 2008 and 2022.

Large conference hall with dozens of attendees at blue desks facing a stage, logos on desk fronts.

Man in white shirt and a woman gesturing while speaking at conference table, map on the wall.

Group at a rocky outdoor site with rubble; a relief worker in a blue and white vest faces away.

Powering rural livelihoods

Beyond governance and tourism, sustainable development requires reliable access to energy. Partnering with the Nepal Electricity Authority, UNDP’s Renewable Energy for Rural Livelihood program has brought off-grid renewable power to some of the most remote villages.

Today, more than 300,000 people living in rural Nepali villages now have access to renewable energy through an additional 10 MW of off-grid generation under the UNDP’s Renewable Energy for Rural Livelihood program.

Farmer crouches among white chickens in a wooden chicken coop lit by warm lamps.

Lumber mill worker guides a long wooden beam into a cutting machine, surrounded by stacked boards.

People in a rustic shelter cooking over a fire, wearing bright green skirts and red tops.

Photograph of a fenced outdoor electrical substation with transformers on a rocky hillside.

Aerial photograph of a rugged coastline with a winding river and a small red-roofed building.

The work that UNDP has done is visible across Nepal, from heritage sites and trekking routes to renewable energy and institution-building. This has supported a sustainable and inclusive development journey for Nepal, empowering diverse communities, modernising infrastructure, and advancing local and national institutions.