It is argued that lack of vision among political leaders and the ruling elite, and the inability to understand the consequences of socio-economic exclusion, are the roots of current political crisis in Nepal. The centralization of power, together with a bias towards urban development over the three decades of import substitution regime, encouraged corruption, and increased poverty and inequality in the country' both horizontal (between territorial, ethnic and religious groups) and vertical (between classes within the society) inequality. In the absence of genuine political commitments and institutional reforms, the minority and under-privileged classes have been excluded from opportunities in governance and mainstream politics since the unification of the country 238 years ago. There is a need to introduce bold reforms in economic policy, politics and the institutional setup to sustain growth and increase collective voice and a bargaining power for all disadvantaged groups. Nepal would have been politically a more stable nation today if political leaders and the ruling elite had a vision for the nation, intellectual depth to understand the consequences of socio-economic exclusion and appropriate strategies to address them.