School-based Management (SBM) in Nepal: Practices and challenges Abstract School-based Management (SBM) refers to the system of administrating schools with active public contribution. Forces driving the move towards SBM demand more freedom, diversity and establishment of a strong network. Creating a network among such SBM, schools will be an important factor for achieving the desired outcomes. It takes time, effort and resources for the full implementation of SBM. It is very difficult for Nepal to move directly to the desired level of SBM because the process involved in it has several barriers. Implementation of reform policies that require breaking up of the traditional values and practices faces severe resistance not only from real interest groups but also from the genuine stakeholders. It helps to realize the possibility of transformation and build the capacities that address systematic, significant and sustained change across all schools. Key words: School-based management, administration, decentralization, economy, stakeholders. Background Governments all over the world are introducing a range of strategies aimed at improving the financing and delivery of education services, with more recent emphasis on improving quality as well as increasing quantity (enrollments) in education. One such approach is to decentralize education decision-making by increasing parental and community involvement in schools, popularly known as School-based Management (SBM). SBM focuses on decentralization in decision-making authority to parents and the community fosters demand and ensure that school provide the social and economic benefits that best reflect the priorities and values of those local communities (Lewis,2006). These days, a major concern in education in Asia and the world is to decentralize the authority of the central education offices back to individual schools, allowing schools to develop their own management policies ; school-based management (Chapman,2002). The aim is to empower principals and teachers or at strengthening their professional motivation, thereby enhance their sense of ownership to the school. In SBM system, tasks are set according to the characteristics and needs of the school itself. The members of the school have 1 Milan Poudel; Plan Internaonal Nepal; 2016 mi_lanpoudel@hotmail.com