Answer: The statement cannot be justified because Nepal isn't small, neither figuratively nor in literal sense.
Nepal is bigger than half the countries in the world. The nation of England, which originally was/is smaller than Nepal in size, once ended up owning half of Earth, and, directly or indirectly subjugating 2/3rd of all human beings on Earth.
The world we live in today is very much a world defined by the English conquerors/invaders/colonizers. Nation states like the USA, Canada, Australia, wouldn't even exist if not for the English people. This question wouldn't have been asked in English, I wouldn't have written this answer in English, and, you wouldn't have read this answer in English, if not for the English people. The architect of the modern world came from a country that was/is smaller than Nepal in size. So, how can you/anyone justify Nepal is small?
*Note: I do get the gist of the question. It was meant to highlight the immense diversity of people, languages, and, socio-cultural norms in Nepal. But once you realize that Nepal isn't small at all, the second half of your question becomes obvious and doesn't need justifications. Nepal is diverse and resembles the world cause Nepal is not small but big.
