Education and Economic Development in Nepal: A Comprehensive Analysis and Case Study of Religion-Backed Schooling

Nepal, a landlocked South Asian nation characterized by significant social and geographic inequalities, continues to face deep-rooted challenges in its education sector. Despite notable improvements in literacy and primary school enrollment, systemic barriers hinder equitable access to quality education, especially at higher levels. This study aims to examine the structural and economic dimensions of Nepal's education crisis, assess the limitations of conventional funding models, and explore the potential of community-based educational initiatives with religious affiliation to address educational exclusion among marginalized populations. The paper adopts a qualitative case study approach, focusing on the Khawalung Girls' Education Program. It analyzes the program's structure, community role, and outcomes to evaluate how faith-based models operate in areas underserved by the state. Findings indicate that while conventional mechanisms, such as state funding, private investment, and international aid, have often struggled to adequately reach disadvantaged groups, such initiatives show potential in providing access to education by leveraging local trust, community participation, and cultural legitimacy. However, these programs face critical constraints, including financial instability, teacher shortages, and curricular limitations imposed by national regulations. The study highlights the need for a multidimensional education reform strategy that incorporates collaboration among public institutions, private stakeholders, and religious or community-based organizations. Such integrative approaches are essential for creating a more inclusive, resilient, and equitable education system in Nepal, with broader implications for national development and poverty reduction.