Dilemma: Economic or political?

In a simplistic portrayal, Nepal still grapples with a form of religious influence. The singular force of Pashupatinath, serving as a sanctuary during crises—be it the Covid-19 pandemic or a devastating earthquake—offers solace. While grand solutions have been found for these issues, economic and political resolutions may remain elusive for some time.

Navigating the intricate pathways that lie between the lines appears to be a daunting endeavor as Nepal approaches the impending era. This challenge permeates various spheres—economic, political, religious, and cultural—casting a formidable shadow over the nation’s trajectory. A glimmer of hope emerges, as youth, akin to a silver lining within a clouded sky, has unfurled its momentum from the eastern reaches to the western expanses of Nepal.

Facts about political parties 

The political parties are not yet prepared for economic, social, or political progress. They must exhibit clear intent and scale their developmental agendas. However, the timing of such actions remains uncertain. Several parties face disintegration/registration challenges and power struggles. Neither the future nor existing ideologies are distinctly conveyed to people.

Many youth-led forces, along with leftist parties, advocate for a state structure transcending provincial boundaries. Yet, CPN (Maoist Center) claims credit for initiating federalism, while Maoist Center Chairman Pushpa Kamal Dahal acknowledges federalism’s burden and proposes renaming provinces along ethnic lines. All in all, the Maoists’ stance remains unclear. Are other political forces simply passive observers, or are they aligned with this movement?

Amidst uneven diplomatic dialogues, the Bhutanese refugee issue, and the Lalita Niwas scandal, international perceptions and diplomacy seem to be subject to mockery. New scandals like the 100 kg gold smuggling risk further weakening Nepal's diplomacy and trapping political parties in a long-term predicament. The victory of independent candidates in the recently-held elections reflects frustrations of voters.

Balancing democracy and economy 

To achieve an economic action plan, numerous obstacles must be overcome. Although laws are well-drafted, their execution often falters. Commissions and executing bodies lack effectiveness. The lingering effects of impunity and power dynamics persist across sectors. Citizens distancing themselves from political parties signals a worrying trend. Political leaders must proactively address this shift.

Economic trends demand a circulative corrective approach in every nation. Examples from the US, the UK, China and India underscore the importance of a strong economy. National innovative schemes, nuclear experiments regulation, political transition and public sector reforms are necessary. Despite challenges, the UK is projected to sustain a 2.5 percent annual economic growth rate. A progressive economic approach suggests that sustained, gradual growth surpasses rapid expansion.

Nepal’s presumed leaders acknowledge that citizens possess the power to remove them, demonstrated by the overthrow of the long-standing monarchy. A united movement could challenge politics rooted in impunity. The ongoing power struggle between political expulsive and impulsive elements may lead to chaos, as witnessed in Nepal's history. The key lies in addressing public concerns and ensuring a stable transition.

Realpolitik or ragtag? 

While Nepali Congress has historically held influence, its contributions to political and economic development are questionable. It tends to propose impulsive agendas when in opposition, but substantial progress is lacking. Attempts at reform are active but lack enduring impact. Democratic ideals persist, regardless of whether they pertain to economics or politics.

The CPN-UML is consolidating following significant fragmentation. While drafting reformative policies on economy and polity, the party’s focus on implementation lags. Will policy formulation alone yield tangible outcomes?

The Maoists initially aimed for rapid, comprehensive development, exemplified by their aspiration for double-digit economic growth. However, their ambitions quickly fizzled out. Now wonder, the party, which was the largest political party in the Constituent Assembly (CA) election, is languishing at third today. Short-term progress in both politics and economics remains challenging.

Remittances play a crucial role in Nepal's present, significantly contributing to GDP growth. Research highlights their impact on education and poverty alleviation. Urbanization is also driven by remittance inflow. Nepal became eligible for graduation from least developed country (LDC) in 2018. However, a comprehensive agenda for this transformation is lacking. Nepal is entitled to various facilities from donor agencies as a developing nation, but political instability and lack of capacity is hindering the country from utilizing them to the fullest. Development-driven diplomacy is key for sustained economic growth, but patience is crucial.

Final thoughts

The intertwined eco-political dynamics outlined above present a perplexing situation. Effective, rational leadership is vital for the country. But it is too much to ask from our leaders. Economic progress requires catalytic actions. An overly reactive catalyst can hasten economic growth, but a strategic, retrospective approach offers a steadier path to economic advancement.