The Organization

The Federalism & Localization Center (FLC) was established on August 8, 2024, under a unique model of shared ownership, participation, and responsibility. It brings together representatives and leaders from major political parties, experts, professionals, and practitioners with proven experience in federalism, intergovernmental relations, public policy, governance, inclusion, and related fields under a common institutional platform.


FLC was established following consultations with the Chief Ministers of all seven provinces and leaders from across the political spectrum. It was conceived to address knowledge gaps, promote informed policy debate, and foster constructive dialogue among key stakeholders at the federal, provincial, and local levels. A central objective of FLC is to contribute to the effective implementation of Nepal's federal system and to strengthen and safeguard the constitutional roles, rights, and responsibilities of provincial and local governments.

In a relatively short period, FLC has successfully facilitated constructive engagement among political leaders, governments, parliamentarians, experts, civil society, academia, and development partners. Its ability to bring together stakeholders with diverse political and institutional perspectives has demonstrated the relevance of an independent platform dedicated to dialogue, research, collaboration, and consensus-building on federalism and governance.

Registered as a non-profit company under Nepal's Company Act, 2006, FLC operates on a not-for-profit basis, with any surplus generated through its activities managed in accordance with the applicable legal and institutional provisions. The Center is committed to advancing federalism, democracy, intergovernmental relations, good governance, inclusion, and evidence-based public policy. In particular, FLC seeks to contribute to the institutional strengthening of Nepal's provinces and local governments as essential pillars of the federal democratic system.

What We Do

The Federalism & Localization Center undertakes research, policy analysis, training, seminars, conferences, policy dialogues, stakeholder consultations, advocacy, and knowledge-sharing on key issues related to federal and subnational governance.
Our major areas of work include:

  • Political, fiscal, and administrative dimensions of federalism
  • Democracy, the rule of law, constitutionalism, and good governance
  • Parliamentary affairs, law-making, and post-legislative scrutiny
  • Intergovernmental relations and intergovernmental coordination
  • Public finance, fiscal federalism, fiscal transfers, and subnational revenue
  • Provincial and local governance, institutional development, and public administration
  • Sectoral governance and intergovernmental cooperation in areas such as education, health, agriculture, industry, climate change, water resources, and infrastructure
  • Governance reform, legislation, and public policy
  • Youth engagement, women's participation, social inclusion, and the empowerment of marginalized communities
  • Other emerging issues relevant to federal, provincial, and local governance

Our Vision

The Federalism & Localization Center envisions becoming Nepal's leading independent resource hub and knowledge institution on federalism, subnational governance, and intergovernmental relations.
In the coming years, FLC aims to:

  • Develop specialized teams of experts and researchers in all seven provinces
  • Establish and strengthen provincial-level institutional platforms and offices
  • Deepen engagement with provincial and local governments and grassroots stakeholders
  • Build a strong national and provincial knowledge base on federalism and governance
  • Strengthen the institutional, technical, and policy capacity of provincial and local governments
  • Promote effective intergovernmental relations, inter-provincial cooperation, and collaborative governance
  • Support evidence-based policy reform and the effective implementation of Nepal's federal constitutional framework
  • Serve as a trusted platform for dialogue, consensus-building, research, and policy innovation

Key Achievements

National and Provincial Dialogues
Since its establishment, FLC has emerged as an active platform for dialogue and engagement on Nepal's evolving federal system.
Key achievements include:

  • Organized national-level dialogues and interactions involving members of the House of Representatives and National Assembly, ministers, political party leaders, parliamentary committees, experts, and other key stakeholders.
  • Conducted interaction and dialogue programs across all seven provinces, engaging Chief Ministers, Provincial Assembly Speakers, ministers, members of Provincial Assemblies, senior government officials, experts, and civil society representatives.
  • Organized dialogues on constitutional amendment, federalism, and the division and exercise of powers, bringing together political parties and stakeholders from federal, provincial, and local levels.
  • Conducted federalism awareness and youth dialogues across all seven provinces, encouraging the participation of young people in discussions on Nepal's federal democratic future.
  • Facilitated the Hetauda Declaration (November 1, 2025), a 25-point joint commitment of the Economic Affairs and Planning Ministers of all seven provinces to strengthen fiscal federalism, accountability, and good governance. The Declaration called for stronger provincial fiscal autonomy, enhanced revenue authority, coordinated inter-provincial fiscal policies and laws, greater internal resource mobilization, and improved fiscal coordination between provincial and local governments. It also provided for the establishment of a permanent Provincial Economic Affairs Council comprising the seven provincial Economic Affairs Ministers to advance a shared fiscal agenda and strengthen coordination with the federal government.
  • Co-organized the Inter-Provincial Education Conference: Relationships, Collaboration and Future Directions in Birgunj, together with the Federalism Study Center of Madhesh University. The conference brought together Education Ministers from all seven provinces, senior provincial education officials, and representatives of universities. It concluded with the adoption of a 14-point Birgunj Declaration and a decision to establish a coordination mechanism among the Education Ministers of all seven provinces to strengthen inter-provincial cooperation and coordination in the education sector.

Budget Consultations, Post-Legislative Scrutiny and Research
FLC has also contributed to strengthening evidence-based policy dialogue through research, consultations, and knowledge-sharing.
Its key initiatives include:

  • Conducting pre-budget and post-budget consultations at both federal and provincial levels, bringing together policymakers, elected representatives, government officials, experts, and other stakeholders.
  • Facilitating discussions on Post-Legislative Scrutiny (PLS) with representatives and officials from the Federal Parliament and Provincial Assemblies to promote more effective implementation, monitoring, and review of legislation.
  • Producing the Provincial Revenue Study: A Trend Analysis (2025) and contributing to policy discussions on provincial fiscal capacity, revenue mobilization, and equitable intergovernmental fiscal transfers.
  • Initiating research and policy dialogue on inter-provincial learning, cooperation, and collaboration in key sectors, including education, health, agriculture, and industry.
  • Completing provincial-level analyses and research on the practices, achievements, challenges, and institutional development of Nepal's federal system, contributing to policy briefs and consolidated national-level analysis.
  • Promoting the exchange of knowledge and experience among provinces to identify innovative practices and encourage policy learning.

Consensus-Building and Collaboration
One of FLC's distinctive strengths is its ability to bring together diverse actors and institutions around common issues of national importance.
FLC has:

  • Brought together leaders and representatives from major political parties, governments, parliaments, civil society, academia, research institutions, and development partners for constructive and non-partisan dialogue.
  • Created platforms for engagement among federal, provincial, and local governments to promote greater understanding and cooperation.
  • Facilitated inter-provincial dialogue and collaboration on common policy and governance challenges.
  • Promoted consensus-building on key issues related to the implementation and strengthening of federalism.
  • Encouraged inclusive participation and dialogue among political leaders, experts, women, youth, marginalized communities, and other stakeholders.

Institutional Growth and Recognition
Within a relatively short period of its establishment, FLC has developed into a credible and increasingly recognized platform for research, dialogue, and policy engagement on federalism and governance.
FLC has:

  • Established itself as a credible, independent, and non-partisan think tank and dialogue platform on federalism, subnational governance, and intergovernmental relations.
  • Developed engagement and networks across all seven provinces and at the federal and local levels.
  • Expanded strategic collaboration with government institutions, Provincial Assemblies, universities, research institutions, civil society organizations, development partners, and other stakeholders.
  • Strengthened its role as a platform for research, policy dialogue, capacity development, inter-provincial cooperation, and consensus-building.
  • Continued to build institutional foundations for becoming a long-term national resource hub dedicated to the effective implementation and continuous strengthening of Nepal's federal democratic system.

Looking Ahead

FLC is committed to strengthening its role as a bridge between research, policy, politics, and practice. Building on its growing national and provincial networks, FLC will continue to promote evidence-based policymaking, constructive dialogue, stronger intergovernmental relations, and effective cooperation among Nepal’s federal, provincial, and local governments.