About the Book In an era when foreigners had to seek government permission to travel outside the Kathmandu Valley, the geologist Toni Hagen, born 1917 in Switzerland, with a Swiss team, was allowed to explore the countryside, an experience that inspired him to see more of this "unknown" land. Thus began a relationship with a country that grew into a close friendship over the course of half a century. He was later appointed by the United Nations to conduct the first geological survey of Nepal, making him the original "UN expert" in the country. He spent nearly a decade in this field, during which he travelled more than 14,000 km on foot. His explorations took him all over Nepal and he saw the country like no one else before him, and very few have since. Throughout the rest of his life Hagen became deeply involved in the study and practice of development in Asia and elsewhere.

About the Author Toni Hagen is well known as a true pioneer in Swiss development aid. This book summarizes his experiences as a development practitioner in Nepal and elsewhere. While many experts of his generation understood "development" as a primarily technical process, Hagen had visions that included political institutions. In this book, Hagen offers a panoply of insights and recommendations for development and democratic transition that are still telling for the development community in the 21st century. The major theme is the virtues of decentralisation. Contrasting Nepal and Switzerland, he argues that development and democracy in Switzerland have strongly benefited from the decentralized organization of the Swiss state. The main lesson Nepal can learn from the Swiss experience, according to Hagen, is that democracy arises from the grass roots and that a centralized structure does not allow democracy to be learned locally. The advantages listed in the literature are manifold: decentralisation brings the state closer to the people and helps to develop a sense of ownership among its citizens. More decentralisation, - this is the lesson that Hagen teaches - could be a viable option for Nepal as well.

Foreword Ten years before his death, my father, Toni Hagen, conceived the plan of writing a book about his experiences as a geologist and development worker in Nepal. Publishing responsibilities were assumed by the Himalasia Foundation, in the series entitled Man and Environment under the guidance of Susanne von der Heide. A comparison of the country's development with that of Switzerland was an obvious choice of topic, given that both countries have much in common: a large number of ethnic groups and languages, and, as their most valuable natural resources, water and hydro power. Switzerland is a model for many Nepalese.

Unfortunately my father was not destined to complete this book. He did, though, compose most of the chapters. In the case of the remaining ones, he left behind only tables and key words, or else notations for drawing on summaries from various articles or talks. Sandra Hörger, the screenwriter of the film The Ring of the Buddha, about my father's life in Nepal, was able to complete these chapters with great competence, since she possessed detailed information about many of the projects mentioned.

Preface The frequent assertions of the commonality between Switzerland and Nepal based on their landlocked mountain location seem unwarranted. There are other countries similarly handicapped. The only thing Switzerland and Nepal share is the vestige of a foreign military service tradition epitomized by the Swiss Guard at the Vatican Palace and the Gurkha sentry at Buckingham Palace. In this case too, there is a difference in why these traditions continue. The former is due to ritual acquiescence, whereas the latter is due to economic compulsion. Otherwise, any comparison between Switzerland and Nepal would be forced to settle not on similarities but rather on contrasts. Physical 'determinism' has placed the two countries in the same league. However, human 'possibilism' has contributed to their extreme contrast at the level of political and economic development. That is, democratic Switzerland has become very rich, while feudalistic Nepal remains shackled in poverty. This book, Decentralization and Development - The Role of Democratic Principles, by Dr. Toni Hagen, highlights aspects of the political and economic disparity between the two countries.

Introduction Toni Hagen is well known as a true pioneer in Swiss development aid. This book summarises his experiences as a development practitioner in Nepal and elsewhere. While many experts of his generation understood "development" as a primarily technical process, Hagen had visions that included political institutions. Addressing questions of political development, he was an early protagonist of "good governance" and he knew what he was talking about. Hagen, in this book, offers a panoply of insights and recommendations for deve lopment and democratic transition that are still telling for the development community in the 21st century. The major theme of Toni Hagen's book is the virtues of Decentralization. Contrasting Nepal and Switzerland, he argues that development and democracy in Switzerland have strongly benefited from the decentralised organisation of the Swiss state. The main lesson Nepal can learn from the Swiss experience, according to Hagen, is that democracy arises from the grass roots and that a centralised structure does not allow democracy to be learned locally. Indeed, political science recognises that devolution of power, fiscal decentralization and even federalism are frequently helpful institutional devices for promoting development and democracy.

**Contents and Sample Pages**