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An Overview of Political Environment ofNepal
Prepared By:- Imran Khan MBA(SVCET)
September 15, 2015
Table of ContentsIntroductionPolitical StructureMajor Democratic MovementsCurrent Political SituationWorldwide Governance IndicatorsMajor problems faced by BusinessSome Facts
Nepalis a small, least developed, landlocked, Himalayan country.
Situated in South Asia betweenIndia (East, West & South) andChina(North).
Area:- 1,47,181 sq. km
Population-28.12 million(2014)- Hinduism(80.6%), Buddhist(10.7%), Islam(4.2%), Others( 4.5%) National Emblem National Flag
IntroductionNo major ethnic community; each minority group is dominant in some parts; many have social and economic relationship and shared culture with other groups as is common in any multi-ethnic nations around the world. That gives it a complex formation.
Official Name- State of Nepal (independent, indivisible, sovereign, secular)
Form of state Democratic Republic
Head of state-The president, currently Ram Baran Yadav
The executive-The prime minister, Currently Sushil Koirala is chosen by a vote of the constituent assembly; the cabinet is chosen by the prime minister in consultation with his party and any coalition partners.
National legislature- The Constituent Assembly (CA) has 601 members. Of these, 575 are elected and 26 are appointed by a Council of Ministers. The assembly was charged with drafting a new constitution. Legal system- The Supreme Court acts as the court of appeal and review, and has powers of original jurisdiction. It chairs over 16 appellate courts and 75 district courts.Divided into Development Regions, Zones, Districts, Municipalities & VDCs but is in the process to change into states after making of Constitution.
1951- End of 105 years Autocratic Rana rule.
1990- Protests to abolish Kings Autocracy Panchayat system , suppressed by security forces resulting in deaths and mass arrests.
1995- Start of Maoist revolution for more than a decade and more than13,000 were killed.
2006- Maoists and the 7 major political parties signed a 12 point agreement(CPA) to stop armed conflict and collectively fight against the king's autocracy.
Major Democratic Movements
Bloody war against monarchy
Royal Palace Massacre 20011 June - King Birendra, Queen Aishwarya and other close relatives killed in shooting by drunken Crown Prince Dipendra, who then shot himself.
End of monarchy
2007December - Parliament approved abolition of 240-year-old monarchy
2008January - A series of bomb blasts killed dozens in the southern Terai plains, where activists had been demanding regional autonomy.
2008May - The first CA was constituted on May 28, 2008, with mandate to deliver the Constitution by May 28, 2010
2008May - A Republic, Ram Baran Yadav 1st president.Current Situations
Standoff over Constitution
2010May - Governing coalition(NC & NCP-UML) and Maoist opposition extended deadline for drafting of new constitution to May 2011.
2011May - Constituent Assembly failed to meet deadline for drawing up new constitution.
2012May 27 - CA was dissolved after four extensions. Issue was on federalism & its structure.
2013November 19 - Election for 2nd time (CA) which will write a new constitution. Political deadlock as no party won a majority.
2014 January 21 CA fixed the deadline for delivery of the Constitution as January 22, 2015
2014February - Sushil Koirala, elected as 37th prime minister (26th PM within 25 yrs)
The United Madhesi alliance, and other janjatis tore and burnt the copies of preliminary draft of the constitution saying that it is not as per their demand.
Tharu minority living in the area demand their own, separate province.
July 20 to now- Madhesi partiesand RPP-N started protests in various parts of the country including bandh and is continue more than 1 month- world record
Ongoing clashes between demonstrators and security persons has resulted death of more than 2 dozen people.contd
Earthquake- Salt on wound2015April Major two earthquakes & series of strong aftershocks hit. EffectsDeath Above 10,000 Injury Above 22,000Post Disaster Needs Assessment (PDNA) report, a total loss of US$ 6.6 billion. Poverty is estimated to increase by at 2.5% to 3% .
What is Governance?
Governance consists of the traditions and institutions by which authority in a country is exercised. This includes the process by which governments are selected, monitored and replaced; the capacity of the government to effectively formulate and implement sound policies; and the respect of citizens and the state for the institutions that govern economic and social interactions among them.
90-100th percentile 75-90th percentile 50-75th percentile 25-50th percentile 10-25th percentile 0-10th percentile
Extent to which a country's citizens are able to participate in selecting their government, as well as freedom of expression, freedom of association, and a free media. Reflects perceptions of the likelihood that the government will be destabilized or overthrown by unconstitutional or violent means, including politically-motivated violence and terrorism.
Extent to which public power is exercised for private gain, including both petty and grand forms of corruption, as well as "capture" of the state by elites and private interests.
Major Problems faced by Business Interference- Govt & Political leadersLack of Finance-complex processSmall Market- dominated by Chinese & IndianLack of Mutual Trust- Dept, mgmt & employeesLack of Efficient manpowerLack of Technical KnowledgeLabor Problems- pressures to fulfill interestsLack of Infrastructure- power, transport
Some FactsGDP growth- 3.0% (2014/15) , 5.1%(2013/14) GDP by sector- Agriculture(35%), Industry(20%), Services(45%)Labor force - by occupation:Agriculture(81%), Industry(3%), Services(16%)Land- Cultivable(20%), Forest(33% ),Mountainous(47%)Inflation (CPI) -7.2%Population below poverty line- 25.2%Unemployment rate:38%