NEPAL PLUNGES INTO DEEP CRISIS
The infighting within the ruling Nepal Communist Party (NCP) did not get resolved and the Prime Minister K P Oli recommended the dissolution of Nepal parliament. A partisan President who has openly supported the faction led by PM Oli through promulgation of successive ordinances in favor of Mr Oli's government obliged by ordering dissolution of the house and announcement of fresh elections on April 30 and May 10.
Nepal economy that has been battered by COVID 19 pandemic has been facing challenges relating to governance with rampant corruption and foreign policy challenges with China, India and United States. The announcement of the elections has two fold impact. First, the caretaker government under the current Prime Minister can continue to make decisions without accountability. Second, the cost of elections itself will be an additional burden on the economy. The last elections government and candidates spend was estimated at Rs. 131.63 billion ($ 1.1 billion)
Nepal during the pandemic has already alienated itself from the world as the whole year was spent on party infighting. Foreign Direct Investments (FDI) has been low and interest of international investors that was visible in Investment Summit 2019 dwindled. The local business cartels have emerged stronger and they have been able to lobby well against opening up of the economy or reforms. Legislative reforms necessary to boost the economy stagnated.
The economy reeling under the crisis will see even more impact due to the uncertainty that will rule Nepal as legal wrangling and street protests will dominate. Investors will be in wait and watch mode for the year 2021.
Stay tuned for updates from Nepal Economic Forum and Bower Group Asia
picture courtesy The Kathmandu Post
Learner at CQU(Central Queensland Uni). Ex MD SGS, GM Coca-Cola Amatil PNG
4 年Sad but reality Sujit Da. We are somehow emotionally connected. Thanks Sujeev for sharing an objective and pragmatic perspective.
Director at Unicorp Advisors Pvt Ltd
4 年Nepal will take a much longer time to recover from the current doom. This process can only be acclerated should the political crisis eases out fast and in a constructive manner.
CEO at Khangri Sourcing
4 年And of course there’s always the savior of last resort ...Shree Pashupatinath !. There’s 6 months left to see if Nepal jumps from Scylla to Charybdis or our Janata finally have the guts to kick every single of these geriatric rodents and scavengers out ...this is the time now for everyone to openly take a risk and find CHANGE...
Founder at Tangent Waves
4 年If a choice needs to be made between KPO and PKD, election is a better choice without a real 3rd alternative as of now. The faith to rely on the Constitution and Democracy is still upheld.
Director - ETHNOBUREAUCRATICA
4 年The variety of demonstrations—be they supporters of royalty, youth or particular minorities --are emblematic of severe dissatisfaction with the governance that has evolved since the janta andolan. But factional dissatisfaction is easier to show than a reasonable process for blending perspectives and developing a practical platform of unity between the ruling government and the people it purports to serve. The present scenario highlights the dissatisfaction, but without coalescence of the disparate interest groups and a genuine desire to keep self-serving elected and unelected officials out of power, improvement through (yet more) elections, per se, shall not resolve this sociopolitical merry-go-round.?