This paper attempts to explore the intricate relationship between federalism and data management within Nepal, with a focus on the realities of Karnali Province. As Nepal transitions into a federal structure, effective data management becomes crucial for informed decision-making and impactful policies. The paper proposes a comprehensive framework to enhance evidence-based policymaking at local, provincial, and federal levels. Utilizing a mixed-method approach, the study reviews existing literature, analyzes current data practices in Nepal, and incorporates global best practices. Primary data was gathered through interviews and surveys with key stakeholders in Karnali Province. The findings reveal significant gaps in data infrastructure, human resource capabilities, and institutional frameworks, which impede effective data collection, analysis, and dissemination. Drawing from international models, the paper underscores the need to strengthen data infrastructure, build local capacity, and foster inter-governmental collaboration. Recommendations for local governments include establishing data management units and training staff. At the provincial level, the creation of a Provincial Data Management Authority and standardized data collection mechanisms are advocated. For the federal government, the paper recommends developing national data management policies, facilitating data-sharing platforms, and supporting capacity-building initiatives. In conclusion, the paper emphasizes the critical role of data management in federalism’s success in Nepal. By adopting the proposed framework and recommendations, Nepal can leverage data to drive development and improve governance, particularly in regions like Karnali Province. The strategic interventions aim to establish a culture of data-driven decision-making, ensuring policies and programs effectively meet citizens' needs.
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