Restoration of the Shahs

In late 1950 King Tribhuvan was driving himself to a hunting trip at Nagarjun when he suddenly swerved James-Bond-style into the expecting Indian embassy, claimed political immunity and was flown to India. Meanwhile, the recently formed Nepali Congress party, led by BP Koirala, managed to take most of the Terai by force from the Ranas and established a provisional government that ruled from the border town of Birganj. India exerted its considerable influence and negotiated a solution to Nepal's turmoil, and King Tribhuvan returned in glory to Nepal in 1951 to set up a new government composed of demoted Ranas and members of the Nepali Congress party.

Although Nepal gradually reopened its long-closed doors and established relations with other nations, dreams of a new democratic system were not permanently realised. Tribhuvan died in 1955 and was succeeded by his cautious son Mahendra. A new constitution provided for a parliamentary system of government and in 1959 Nepal held its first general election. The Nepali Congress party won a clear victory and BP Koirala became the new prime minister. In late 1960, however, the king decided the government wasn't to his taste after all, had the cabinet arrested and swapped his ceremonial role for real control (much as King Gyanendra would do 46 years later).

In 1962 Mahendra decided that a partyless, indirect panchayat (council) system of government was more appropriate to Nepal. The real power remained with the king, who chose 16 members of the 35-member National Panchayat, and appointed the prime minister and his cabinet. Political parties were banned.

Mahendra died in 1972 and was succeeded by his 27-year-old British-educated son Birendra. Nepal's hippy community was unceremoniously booted out of the country when visa laws were tightened in the run-up to Birendra's coronation in 1975. Simmering discontent with corruption, the slow rate of development and the rising cost of living erupted into violent riots in Kathmandu in 1979. King Birendra announced a referendum to choose between the panchayat system and one that would permit political parties to operate. The result was 55% to 45% in favour of the panchayat system; democracy had been outvoted.

Nepal's military and police apparatus were among the least publicly accountable in the world and strict censorship was enforced. Mass arrests, torture and beatings of suspected activists are well documented, and the leaders of the main opposition, the Nepali Congress, spent the years between 1960 and 1990 in and out of prison.

During this time there were impressive movements towards development, namely in education and road construction, with the number of schools increasing from 300 in 1950 to over 40, 000 by 2000. But the relentless population growth (Nepal's population grew from 8.4 million in 1954 to 26 million in 2004) cancelled out many of these advances, turning Nepal from an exporter to a net importer of food within a generation. It is also widely accepted that a huge portion of foreign aid was routinely creamed off into royal and ministerial accounts.

During this time over one million hill people moved to the Terai in search of land and several million crossed the border to seek work in India (Nepalis are able to cross the border and work freely in India), creating a major population shift in favour of the now malaria-free Terai.