This book analyses the problem of the increasing political exclusion of ethnic, caste and gender groups in democratic Nepal and discusses its consequences for democracy and the stability of the country. While outlining alternative democratic institutions and proposing specific institutions that can include the diverse socio-cultural groups in Nepal, this book: - analyses the Maoist insurgency, arguing that political exclusion was a major cause for its genesis and growth; - examines the causes for the lack of democratic consolidation in Nepal; - provides the first comprehensive critique of the 1990 Constitution, identifying it as an important factor leading to the political exclusion of ethnic groups; - suggests the setting up of a new Constituent Assembly to address the social and political crisis in Nepal; - makes important recommendations to shape an inclusive and democratic Nepal which include federalism; a powerful House of Nationalities; a proportional electoral system; affirmative action policies and reservations; declaration of a secular state; a centralized judicial review; and the protection of minority rights in the Constitution. Overall, the author argues that unless Nepal's ruling elite becoms senstive to the needs of marginalized and excluded groups, the country could witness an escalation in violence. Highlighting a wide range of issues crucial to strengthening democracy in Nepal, this book is of interest ot students and academics studing Nepal and South Asia.