The Nepal election date has been set for 22 November 2007. Prime Minister Koirala has promised that the polls will not be postponed again and urged the government to swiftly complete all necessary preparations in order to hold the elections on the scheduled date.

However, there are major challenges ahead. Incidents of killings, extortions, rapes and other heinous crimes have become everyday news in the country. Former US President Mr. Carter during his recent four day visit to the country expressed deep concern on the possibility of a free and fair poll. Separatist movements are raising their heads. In south Nepal it is the upsurge of the suppressed Madhesis. According to the Nepal government's Central Bureau of Statistics, there are over 103 castes and ethnicities, at least 92 different languages, and over 10 different religions in Nepal.

There are at least four major challenges immediately facing the country. First, how to legitimize the democratic process in this multi-ethnic and multi-cultural Himalayan state, where the fundamental institutions of democracy are almost non-existent, and law and order has suffered so grievously?

Second, how will Nepal conduct free and fair elections to a constituent assembly and ratify this document if the people are not free to choose their representatives owing to fear and threats from insurgents? Importantly, can the Nepalese overcome their "veil of ignorance" and come to an "original position" to draft and ratify a just and liberal democratic constitution for Nepal?

The third challenge is absolving the Hindu status of Nepal and declaring it a secular country. This radical change is bound to create a backlash in Nepal. The 18 May declaration by Nepal's parliament ending the country's distinction as the world's only Hindu state was one of several hard decisions taken by the new government to coax Maoist rebels to join in a peaceful political process. Nevertheless, the move has bred new conflict within the country's Hindu majority, which enjoys strong influence throughout the country. A number of traditional symbols of the country are closely associated with the Hindu tradition, such as the sanctity of cows. Cows are revered in Nepal and understood as incarnations of Laxmi, the goddess of wealth and the 'better half of Vishnu.' The cow is also the national animal of Nepal. Cow slaughter is illegal in Nepal. Therefore, these factors are bound to be major hurdles in creating vibrant democratic institutions.

Fourth, ending the Monarchy in Nepal and replacing it with a Republic, is another major hurdle on the road to a smooth transition to democracy. The eight parties have agreed to decide the fate of the monarchy at the first meeting of the elected CA. This could again unleash violence on a large scale. There is strong support for the palace and the Army and particularly its Guards Unit which is responsible for the safety of the King. Certain segments of the population in Nepal are in favour of keeping the monarchy in tact, which in turn could lead to polarization and divide the country.

For smooth functioning of democracy, law and order is a pre requisite. Unfortunately, the coalition government is unable to ensure this. The impending radical changes in Nepal may become an obstacle to democratic formation. It needs a strong force to manage and handle it. The former US president has also deplored the poor law and order conditions in Nepal. A safe environment is a core requirement for progress in democracy. Mr. Carter declared that police forces in Nepal are not effective, as it did not enjoy adequate political support or the confidence of the people.

The open border between Nepal and India has been one of the main contributing factors to the increasing magnitude of international migration. Illegal trade associated with free movement of people across the border has been a matter of concern for both countries. It is therefore necessary to regulate the movement of people along the border between Nepal and India.

Another major crisis is poor economic growth. Nepal's economic performance during the first six months of 2007 was characterized by slow growth, rising inflation, and weak export. The government has therefore revised its Gross Domestic Product (GDP) growth forecast from 5% to 3.8% mainly due to decline in agricultural production. Slow economic growth and endemic poverty will sharpen the appeal of the separatist elements.

The most important risk of running coalition politics are the inherent contradictions that prevail in the society today. Maoist leader Prachanda has assured former US president Carter assuring of a successful transition to democratic governance. However, this may not be easy to achieve. Presently, most of the arms and ammunition of the Maoist forces are locked up under UN supervision. With a change in the present situation and disagreement on major issues, it could lead to the reemergence of Maoist violence plunging the country into deep trouble.