Nepal experiencing political and economic instability

Source: The post Nepal experiencing political and economic instability has been created, based on the article “Stabilising India–Nepal ties in changing times” published in “The Hindu” on 14th May 2024.

UPSC Syllabus Topic: GS Paper 2-international relations-India and its neighbourhood- relations.

Context: The article discusses Nepal’s current political and economic instability, its rushed transition to a secular federal republic, and the increasing influence of China at India’s expense. It suggests India should support Nepal’s development without interfering in its internal matters.

For detailed information on India–Nepal Relationship read Article 1, Article 2

Why is Nepal experiencing political and economic instability?

Rushed Constitution: Nepal’s decision to become a secular federal democratic republic was rushed and barely debated, contributing to instability.

Young Democracy: As a young democracy, Nepal has faced numerous upheavals and lacks experienced leaders and institutions to handle its challenges.

Loss of Hindu Identity: The country transitioned from being the world’s only Hindu kingdom to a secular state after the Maoist insurgency, causing confusion and dissatisfaction.

Calls for Monarchy Restoration: Due to weak democratic institutions, there are calls to restore the monarchy to ensure stability and safeguard democracy.

Federal Setup Concerns: The establishment of a genuine federal setup raises fears about potential disunity within Nepal.

Corruption and Misgovernance: Rampant corruption and misgovernance are significant issues, making it difficult for Nepal to thrive in the post-COVID-19 world.

How is China influencing Nepal’s politics?

Political Alliance Shift: The coalition changed, replacing the Nepali Congress with K.P. Sharma Oli’s party, known for being pro-China and anti-India.

Foreign Policy Influence: Nepal’s Foreign Minister made his first official visit to Beijing, breaking the tradition of visiting New Delhi first.

Belt and Road Initiative: Nepal agreed to revive cooperation on China’s Belt and Road Initiative despite warnings of a debt trap.

Military Cooperation: High-level military visits between Nepal and China have led to new understandings.

What role does India play in Nepal’s current situation?

1. India has been cautious, keeping a low profile and avoiding interference in Nepal’s internal affairs.
2. India must carefully address sensitive issues like Nepal’s identity and monarchy restoration to avoid mixed signals.
3. India can propose a transformative, sustainable development agenda focusing on health, education, food and nutrition, child development, gender, and jobs.
4. By fostering inter-linkages between industries and addressing Nepal’s demographic dividend, India can support Nepal’s stability and growth.

Question for practice:

Examine the factors contributing to Nepal’s political and economic instability.