Federalism vs centralised planning

Nepal's precarious socio-economic standing is the result of a highly centralised planning process.

The National Planning Commission is currently working on the 16th periodic plan which will last for five years beginning July 2024. Since planned development began nearly seven decades ago, Nepal has gone through 10 five-year plans and five three-year plans. Despite all these plans, the country continues to languish among the very few impoverished nations on earth. The main reason behind Nepal's precarious socio-economic standing is this highly centralised planning process which has been a spectacular failure. One seeming progress is that Nepal's status as a least developed country may be upgraded to a middle-income country by 2026. But one question arises: How can that be called upgradation if Nepal remains among the bottom 10 or 20 countries as per its socio-economic indicators?