In terms of differences in wealth and access to political power, Nepalese society could be divided into a small ruling elite; a growing, intermediate-sized group of government officials, large landholders, and merchants; and the vast majority of the population, consisting of a peasant base. These divisions are descriptive, functional class categories rather than social class entities based on the Marxian concept of the social relations of production. In a way, all three classes were a long continuum in Nepal's social structure because most members of the ruling elite and government functionaries had their direct roots in the rural landed class, which was one stratum of the farming population Even though the agricultural sector as a whole faced similar economic and technological circumstances, it was diverse and contained several strata in landholding, relative economic dependence, and independence. The numerically small intermediate stratum of the farmers was only slightly less diverse than the rest of the rural population in terms of members' ethnic and geographical backgrounds. The relative economic and educational advantages of this group and its occupational activities, however, made its members relatively homogeneous in terms of shared interest. They generally aspired to achieve a middle- or elite-class status
The smallest and least diverse of the three categories was the ruling elite, largely composed of high-caste, educated Paharis, namely different strata of Brahmans and Chhetris. At the zenith of this class was the monarch, whose authority was derived from the orthodox Hindu contention that the king was the reincarnation of Vishnu, whose assigned role in the Hindu trinity is protection. The monarch's authority was not based on electoral support
The continued expansion of the bureaucracy was a direct response to a consistent increase in the educated population. Because of the lack of development, a large number of educated people failed to find gainful employment upon graduation. Because they constituted the most potent revolutionary force, and happened to be geographically concentrated in urban centers, the ruling class was almost compelled to absorb them into an already bloated bureaucracy in order to neutralize any sociopolitical disturbance they might cause
In the 1980s, a significant number of college- and universityeducated people residing in Kathmandu Valley cities discovered a second employment outlet. Development consultant firms and associated services have emerged throughout Kathmandu. Because of the growing pressure on foreign donors to hire Nepalese consultants for development feasibility and evaluation projects, these firms were able to tap into the large pool of foreign aid money and have generated a significant number of jobs. This opportunity has allowed many of the more educated to attain middle class status
