Nepal's Economical and Political Turmoil - Year 2022

How will Nepal manage the geopolitical situation in the region against the backdrop of growing internal turmoil?

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Nepal's journey towards democratic transition is not linear. In the more than 70 years since the late 1940s, the country has witnessed a staggering seven events and not a single elected Prime Minister has completed his term. In that context, at least, three types of instability can appear: executive, legislative, and constitutional. Nepal's new constitution, drafted twice through the Constituent Assembly, which was elected in 2015, seems to have solved some major political problems, but the big issues related to economic development still need to be addressed. Issues related to economic transformation are overshadowed by inter-party and inter-party conflicts which not only tarnish the image of multilateral democracy but also affect people's confidence in the political system. Similarly, 

This conflict split the NCP into two factions: the Communist Party of Nepal, the United Marxist and Leninist (CPN-UML) and the Maoist Center, both came together and formed the NCP in 2018.

In addition, external factors also play a major role in shaping domestic politics (again), mainly because of the country's 'position' between two emerging powers: China and India and Nepal. Nepal's inability to raise its voice in international politics and policy is exacerbating the outside world situation for development and other initiatives. This article looks at the interface between politics, geopolitics, economy and other factors in terms of successful political and economic transitions in Nepal. 

The interface between politics and geopolitics

Initially, after the enactment of the Constitution in 2015, a new political movement began in Nepal and elections were held at all three levels, federal, provincial and local. A new government was formed in 2018 under the leadership of the Communist Party of Nepal (NCP), but as in the 1990s, this government was also brought down before the end of its term, mainly due to internal conflicts within the NCP. This conflict split the NCP into two factions: the Communist Party of Nepal, the United Marxist and Leninist (CPN-UML) and the Maoist Center, which came together to form the NCP in 2018. Although the history of the Communist Party is full of divisions. And (again) the merger when it came to the political scene, maybe that's why most of them use the prefix 'United' next to their name .  Reason 

The inter-party conflict within the NCP became so intense that it was able to drag the far north, south and west neighbors, the United States (US) and its allies into controversy where both real and imaginary issues were reduced. This further enhanced geopolitics in more ways than one. Nevertheless, it is becoming difficult for Nepal to get out of this geopolitical maelstrom, as the ideological position taken by the political parties has a greater impact on Nepal's geopolitics. Nepal signed the Belt and Road Initiative (BRI) of China and the Millennium Challenge Corporation (MCC) launched by the United States. Both had the goal of building Nepal's infrastructure, at least in principle, but the geopolitical and geopolitical dimensions, for good or bad reasons, divided Nepal's politics so much that all other important issues were sidelined during the political transition. . The effects of this geopolitical rivalry have often been felt in Nepal's relations with its neighbors. The border with India in 2020-2021 and then with China is a good example in that regard. Many think their times were definitely part of the region's wider geopolitical rivalry. Yet, this does not negate the fact that the two have no boundary issues. What happened in 2020-21 is reminiscent of the political events of the 1990s when foreign policy was being used as a tool in domestic politics. Parliament has been dissolved twice in recent years, but notably in 2020-21, the Supreme Court restored it twice. But it toppled the two-thirds majority government led by the Nationalist Congress Party and then taken over by the Nepali Congress Party (NC) which has only 61 MPs in the 275-member house and other coalition partners who came mostly. From the left of the political spectrum. With the help of these coalition partners, Parliament, now, is poised to complete the first full term of the House elected in 2018. 

At least in principle, the two aimed to build Nepal's infrastructure, but the geopolitical and geopolitical dimensions, for good or bad reasons, its repetition divided Nepal's politics so much that all other important issues were sidelined during the political transition.

Moreover, Nepal's high-level geopolitical activities have always made the external environment hostile to Nepal, which also affects Nepal's two vast neighbors: China and India have their own ideas about the political system and relations with Nepal. Western countries have played an important role in democratization and development in Nepal, but they tend to take advantage of such support for their own strategic interests by using Nepal as a launching pad, the consequences of which may be felt once again in the interior. Politics as well. Therefore, the future of democratic politics and political stability will depend on how political parties strike a balance between domestic politics and international relations, including relations between China, India and the West. Nepal's geographical location and cultural ties are its two important neighbors: While demanding closer ties and better balance between India and China, changes in the political economy are slowly shifting people's livelihoods beyond the region. Nepal will also have to maintain cordial relations with the West, which is not only their long-term development partner. In recent years, the level of interaction with the Diaspora and Western countries in Nepal has also increased dramatically. Also, in terms of Nepal’s relations with China and India, it is not affordable to have equal relations with both due to the civility and cultural closeness between the two. The level of interaction with the Diaspora and Western countries in Nepal has also increased dramatically. Also, in terms of Nepal’s relations with China and India, it is not affordable to have equal relations with both due to the civility and cultural closeness between the two. The level of interaction with the Diaspora and Western countries in Nepal has also increased dramatically. Also, in terms of Nepal’s relations with China and India, it is not affordable to have equal relations with both due to the civility and cultural closeness between the two. 

Financial dilemma

Nepal's economic situation is unsatisfactory, 31. There is certainly not enough economic activity for a young population that does not meet the minimum requirements of a rights-based constitution that includes fundamental rights. Although, the preamble to the constitution emphasizes the existence of a ‘socio-democratic state’, the ‘social elements’ are either missing or are seldom implemented through policies and programs and there is a huge disparity in social services. For example, when political leaders receive free medical treatment abroad from across the state, the general public, for their part, will have to rely heavily on private hospitals owned by the political class and their close friends, which can certainly be mentioned. , Garrett Hardin called the 'tragedy of the Commons'. This is also applicable to other aspects of life, including knowledge/education and emplpoyment. 

While the global economy is witnessing another crisis, Nepal certainly cannot remain immune in this highly interdependent world. Nepal's economy is already reeling from the crisis in more ways than one. There are some indicators in this regard such as worrying trade deficit and balance of payments, high inflation, rising commodity and fuel prices and possible liquidity crunch in the supply chain. But the fact is that it did not happen overnight. The economy already has inherent structural problems, and part of those structural problems lies in the strategic prescriptions of local and international development agencies, and part in relation to Nepal's inability to adjust its economy to the changing nature of the political economy. However, The biggest question is that Nepal has not been able to develop a product-based economy and there is no pillow to support it in times of crisis despite its huge potential. For example, although agriculture remains the backbone of the livelihood, the fact remains that the total production in this area is not enough to feed a population of 30 million. This is also giving impetus to the excavating state institutions. The recent global economic crisis is expected to affect Nepal as well. Even though the Nepalese government has already taken some drastic measures, the situation could worsen if the fundamentals of the economy are not changed. The recent global economic crisis is expected to affect Nepal as well. Even though the Nepalese government has already taken some drastic measures, the situation could worsen if the fundamentals of the economy are not changed. The recent global economic crisis is expected to affect Nepal as well. Even though the Nepalese government has already taken some drastic measures, the situation could worsen if the fundamentals of the economy are not changed.

The preamble to the Constitution emphasizes the existence of a ‘socio-democratic state’ but the ‘social elements’ are either missing or rarely implemented through policies and programs and there is a huge disparity in social services.

There is a huge trade deficit, and foreign exchange is coming at a time when the country is just holding multiple elections. Analysts are of the opinion that as long as remittances are sent and agriculture remains stable, Nepal will definitely not face a major economic crisis as many countries in the region, including Sri Lanka, are going through it. Pegging Nepali currency with Indian currency will definitely be useful in that crisis as well as there are advantages of open border with India which allows people to work as well as buy goods across the border.

Briefly the situation in Nepal 

Nepal is facing many problems. Yet the solution to Nepal's problems is certainly well understood but not properly implemented. The politicization of social and political issues is mainly done by ‘political communism’ which works only for public consumption and to radicalize society in more than one way. Still, Nepal can certainly hope for the best as the current political system has successfully conducted elections at the local level which is certainly a sign of a bright political future. That being said, two factors will play an important role in the future: (1) how Nepal balances national politics and geopolitics, and (2) how economically self-sufficient Nepal will be in the years to come.

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