ABSTRACT
Federalism has long been used as an institutional arrangement for recognition and accommodation of social and cultural diversity, although originally this was not so. Asia is the world’s most diverse continent in ethnic terms, and when such ethnic groups are rooted in a particular territory within a country in which there is little protection for the ethnic minorities, the diversity-claims for territory, political association, special safeguards and a homeland for the minorities within the same polity becomes compelling, calling for solution. However, all form of diversity are not amenable to a federal solution; in fact, many may require just a democratic solution. This chapter first highlights the importance of diversity for federalism; analyzes the nature of cultural diversity in an Asian federation within the overall context of Asia; and explains why and what type of federal solutions were required in federations in Asia, with particular attention to the long-pending federal solution in such countries as Sri Lanka. In conclusion, it point out the difficulties Nepal has faced in devising federal units simply based on territorial boundaries because ethnicity and territory do not in most cases accord with each other. It highlights how Nepal has sought to overcome this by a more inclusive and democratic method of power-sharing for the minorities.
