The deeply troubling situation in Nepal is marked by three discernible trends. First, is the collapse of the ceasefire and commencement of violent activities, including strikes, blockades and attacks by the Maoists. This has led to the revival of counter-insurgency operations by the Royal Nepalese Army (RNA), reinforced by a fresh supply of arms and ammunition, and other military hardware from China.

Amidst the continuously expanding sphere of Maoist influence, political uncertainties and growing international interest, Nepal continues to remain one of the most volatile countries in South Asia. Recent developments have, once again, reconfirmed that while the Maoists have been successful in gradually pushing their agenda through violence and intimidation, the four-party coalition government led by Sher Bahadur Deuba is increasingly finding it difficult to evolve a coherent strategy to counter it.

The Maoist insurgency which began in February 1996 is the major security challenge facing Nepal, having affected almost all the 75 districts of the country. The Maoists' core demandsan interim government, an elected Constituent Assembly to frame a new Constitution, a republican state-revolve around issues which seemed to have been settled in the 1990 Constitution. This Constitution was promulgated following a people's movement marking a transition from a party-less panchayat system to a multi-party democracy with Constitutional monarchy and sovereignty resting with the people.