The political Nepal of today
Since May 28, 2008, Nepal has officially been a federal parliamentary republic. The country is organized as a federation of 7 states, each with its own legislation and Prime Minister. The Constitution was definitively adopted in 2015, and as far as the organization of powers is concerned, Nepal is a unitary state. The political system is parliamentary, and the government must have the support of parliament. The electoral system is first-past-the-post.
There are over 15 political parties in Nepal, but political life is essentially governed by the three main parties: the Communist Party of Nepal (Unified Marxist-Leninist), founded in 1990 following the merger of two former Communist parties; the Nepali Congress, a member of the Socialist International and chaired by Sher Bahadur Deuba; and the CPN-M, the Communist Party of Nepal (Maoist). It is at the origin of the "people's war": the Maoist guerrilla war which raged from 1996 to 2006 via its armed branch, the Nepalese People's Army.
Bidya Devi Bhandari, Vice Chairperson of the Communist Party of Nepal (Unified Marxist-Leninist), was elected President of the Republic by the Parliament in 2015 and re-elected in 2018. She is the first woman to hold this office. She signed a revision of a penal code deemed archaic and defended women's rights. In March 2023 it is Ram Chandra Poudel who is elected President of the country under the label of the Nepali Congress with 68,54 % of the votes against Subash Chandra Nemwang, of the Nepalese Communist Party.
A difficult geopolitical position
Sandwiched between India and China, two giants with long-standing political and economic rivalries, Nepal is logically the scene of their struggles for influence. Overall, Nepal's economy remains largely dependent on Indian imports. In particular, India buys Nepal's hydroelectric power at very low prices, a production that can be further developed thanks to the opportunities offered by the Himalayan terrain. Nepal is also an issue for China, which intends to play a strategic role in the region. Pro-Tibetan activists in Kathmandu provide support to those fleeing Tibet over the Himalayan passes to India. There are an estimated 20,000 Tibetan refugees living in Nepal. China puts pressure on Nepal to monitor the passes and stop supporting Tibetan refugees, which also leads the international press to report on the "cultural genocide" and mistreatment of Tibet. The Nepalese government has little room for manoeuvre: it is under pressure from the international community, which is opposed to a policy of firmness towards the Tibetans, and also from China, which wants the opposite. Nepal can only oppose China with difficulty, as this Asian giant is its counterweight to the cumbersome influence of India. China is trying to advance its interests by proposing cooperation projects to Nepal. Nepal's position in regional geopolitics can be both an asset and a danger. Will this country be able to build and secure its economy while preserving the originality of its culture and the integrity of its natural environment?
Economic development compromised by numerous obstacles
Despite a clear progression in recent years, Nepal is still among the poorest countries in the world. Its economy is still largely based on agriculture, which provides employment for 80% of the population and accounts for 40% of GDP, but this resource is fragile because it is directly dependent on the climate. Despite the importance of agriculture, the country is not self-sufficient, particularly due to a very high population growth rate. In the absence of minerals in sufficient quantities to enable profitable exploitation, Nepalese industry is limited to the processing of agricultural products and represents only a small economic contribution. The paper and textile industries play a predominant role. One of the great economic hopes of the country lies in the appropriation of the gigantic hydroelectric potential represented by the large rivers. In spite of this important hydroelectric potential, the technologies are still old and explain in part the chronic lack of electricity.
In terms of infrastructure, economic development is hampered by the country's landlocked position between India and China, difficult access to many regions and vulnerability to natural disasters. Other important obstacles slow down or block the progress of the economy, such as the low level of foreign financial investment and the lack of a qualified workforce. On the other hand, for several decades now, the tourism sector has been encouraged by the authorities as a promising sector. Today it is relatively dynamic, constitutes one of the first resources of income for the country and its prospects are good. The trekkers' paradise has a good number of natural wonders, to which is added a cultural and religious heritage of the first plan. But tourism is no exception to the rule. It is built on private and foreign capital, and the population participates little in this development. The problem of redistribution of wealth exists and only a small number of Nepalese benefit from the economic benefits of tourism.
On the positive side, remittances from expatriate Nepalese have in recent years supported consumption, which is the main driver of growth. Nepal's economy is supported by international financial aid: India and China contribute significant sums, albeit within a geopolitical framework that is uncomfortable for Nepal. Substantial sums have been used to rebuild tourist sites, so that the country can once again benefit from tourism revenues as quickly as possible. However, the inhabitants of mountain villages, for example, are still living in makeshift housing and struggling to get by. Nepal's economy is still largely affected by the 2015 earthquake and covid-19 in 2020, but is slowly recovering.
