Thus far it is evident that the rural livelihoods in southern Morang are embedded within a deeply inequitable agrarian structure, with dual surplus appropriation by landlords and merchant capital. However, it is important to remember that feudalism, like capitalism itself, is not a static system, but is dynamic and subject to evolution and flux. While changes to the feudal system over the last few centuries were explored in Chapter 3, this chapter explores the contemporary trajectory of change. The last three decades in particular have marked a new era in Nepal's agrarian political economy. As noted earlier in this book, pre-capitalist inequalities have not been undermined, and these in part contributed to the 10-year civil war and waves of more recent ethnic unrest. However, at a national level, Nepal has also undergone significant economic change following neoliberal restructuring.

Within this context, capitalism is articulating with rural pre-capitalist economic formations like never before. A key argument is that there is growing ‘agrarian stress’ associated with climatic-ecological pressures, expanding capitalist markets with an associated wave of monetisation and cultural change. In its wake, farmers are becoming more dependent than ever before on off-farm labour in the capitalist sector both locally and overseas, to supplement the meagre returns gained from the land under feudal agriculture This has intensified throughout the 17 years within which this research has taken place. We explore these changes in turn below.