Rule of law

The Rule of Law, as defined by The University of Iowa Center for International Finance and Development states the "The rule of law does not have a precise definition, and its meaning can vary between different nations and legal traditions. Generally, however, it can be understood as a legal-political regime under which the law restrains the government by promoting certain liberties and creating order and predictability regarding how a country functions. In the most basic sense, the rule of law is a system that attempts to protect the rights of citizens from arbitrary and abusive use of government power."

To successfully implement the rule of law, an efficient, effective, and Independent judiciary is critical. The rule of law essential for the safekeeping of the social order and civil liberties. With the rule of law, both individuals and the government must submit to the law's supremacy. As neither the individual nor state is above the law, the rule of law a powerful protective layer over individual rights and liberties.

With a market economy, the rule of law is extremely important as many market players from all over the world come together for complex transactions. Law is very important, as it is a common factor in which parties can complete complex transactions. It provides market players with confidence that disputes can be efficiently and fairly be solved and is considered a stabilizing factor that helps set the "rules of the game" in critical areas such as investments, property, and contracts.

In Nepal, there are legal systems in place, but they do not function. There are many who are above the law, and the law does not protect those who need it most.