Government instability will be endemic in Nepal

Significance

KP Sharma Oli’s Communist Party of Nepal (Unified Marxist-Leninist) left the ruling coalition that was formed shortly after the November general election when it became clear that Prime Minister Pushpa Kamal Dahal (‘Prachanda’) was supporting Paudel rather than its candidate Subas Chandra Nembang. Deuba’s party is not part of the government.

Impacts

• Enduring political instability will make it harder for the government to attend to pressing issues regarding the economy and security.
• India and China will double down on efforts to influence the direction of Nepali politics.
• Provincial governments will likely struggle as much as the federal administration to ensure stability.