I don't believe that the mass has to be well educated for democracy to flourish. You can always smart people up with good leaders. The problem in Nepal as I see is not the literacy rate of people or rather lack of. It is the short-sightedness and lack of sense of belonging, accountability and of duty towards the country.

Let's say there are 100 sheep on a grazing field and 5 shepherds responsible of bringing 25 sheep each back in the farm every evening. The these 5 shepherds are well organized, disciplined and know very well their responsibility, the task will become very simple. But if these 5 shepherds don't get along at all, don't communicate with each other very well and can't stand each other, bringing the sheep back in the farm from the grazing field will be a struggle. Each one will want to have his herd in first, will do anything to achieve this and will eventually create a mess and chaos on the field.
And that is the situation of nepalese leaders. So the problem is not democracy.