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Will Nepal's ongoing restructuring of the government improve the performance of the public sector? The signs are not positive. The process of restructuring is driven by ideological and perceived political opportunity, rather than by an analysis of the public services that the government provides to society. In this short Policy Brief, we raise the concern that the lack of emphasis placed on the local government level in the restructuring of the public sectorand the possibility that the district level might disappear in a future federal structureis likely to worsen the already poor performance of Nepals public sector in terms of providing responsive, effective, and accountable public services.