The Change In Nepal's Political System

Nepal is a developing country situated between China and India geographically. It remained almost in isolation from the outside world both economically and politically until the fall of more than one century long autocratic regime in 1951. Only after that, Nepal embarked on democratization and developmental process with the beginning of planned development effort in 1956. The political system is still fragile and has now been undergoing a major political transition with yet to settle peace process since 2006. The economy of Nepal has been undergoing a gradual change along with the political system, changing from a fully agrarian system to a semi-modern system. However, it shows that something is wrong as Nepal is still one of the poorest countries in the world. Economic development requires economic transformation to constantly generate new dynamic activities (Ocampo et al, 2009), which Nepal lacks. Additionally,

After adopting a series of structural adjustment programs, Nepal concluded the Poverty Reduction and Growth Facility (PRGF) program in 2007. However, after more than two decades of these programs, Nepal was still underdeveloped. These programs have actually weakened the government capacity and were not able to create institutional mechanism necessary for a strong economy. Instead the country became more fragile and volatile to unstable politics, with widespread poverty and rising inequality. Internal armed conflict erupted in 1996 and lasted a decade as a result of factors such as unemployment, poverty, isolation and lack of good governance. The peace process began in 2006 and it is not settled yet, therefore, Nepal is focusing on their political agenda thus leaving behind economic development