Opinion | Political stability as an economic issue
Summary
Nepal's political instability hinders economic progress by increasing investment risk, causing fiscal indiscipline, and disrupting institutional capacity. The upcoming election offers a chance to choose stability as a foundation for sustained growth.
Key Points
- Political instability in Nepal raises uncertainty, discouraging investment and slowing economic growth.
- Frequent government changes prevent long-term reforms and erode institutional memory, undermining economic transformation.
- Populist spending increases fiscal strain, with social protection programs expanding rapidly without targeted design.
- Infrastructure projects like the Melamchi Water Supply have faced repeated delays due to administrative and political instability.
