Mistrust will be endemic in Nepali politics

Significance

Bhandari acted after deciding that neither Prime Minister KP Oli nor opposition leader SB Deuba had the support of a majority of MPs, even though each claimed he did. Oli was reappointed premier on May 13 despite losing a May 10 vote of confidence.

Impacts

• The political imbroglio will hinder Nepal’s ability to manage its surge in COVID-19 cases.
• India and China, which vie for influence over Nepal, will hedge their bets by tacitly reaching out to all sides in the crisis.
• Chronic government instability will dissuade prospective investors from doing business in Nepal.