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The Hindu
4 days ago
- Politics
- The Hindu
A year of rhetoric, broken promises, and weak governance for Nepal's Oli
Nepal Prime Minister K.P. Sharma Oli has completed a year in office with the two largest parties — the Nepali Congress and his own CPN-UML — continuing the coalition that they forged with several promises, including amendments to the constitution, good governance, and a boost to development. While promises have remained largely unfulfilled, public dissatisfaction has grown. Analysts describe Mr. Oli's one year in office as unsuccessful across key sectors — governance, legislation, development, and foreign relations. 'It's a disaster on all fronts,' says Hari Sharma, a political commentator. 'If we were to talk about achievements, there is nothing visible… nothing that the people could really feel.' When Mr. Oli signed a seven-point deal with Congress President Sher Bahadur Deuba on July 1 last year — which set the stage for Mr. Oli's fourth stint in power starting two weeks later on July 15 — the message the duo tried to convey was that a strong and stable government was what Nepal needed to usher in stability and ensure good governance. With Congress, the single largest party with 88 seats, backing Mr. Oli — whose Communist Party of Nepal (Unified Marxist-Leninist) holds 79 seats — they controlled a comfortable majority in Parliament. But even on the legislative front, the government's weakness was starkly exposed, triggering public outcry. Amending the constitution was a core agenda of the two parties. They peddled the idea that the electoral system envisioned by the constitution, promulgated 10 years ago, made it nearly impossible for any single party to secure a majority, inevitably leading to hung parliaments and a cycle of unstable coalition governments. They proclaimed that Nepal's development was stymied by the lack of a stable and strong government. But the constitutional amendment was a ruse from the outset, a smokescreen to justify their return to power, say commentators. Whether the said amendments were even possible is a secondary question; the primary question is whether they ever truly intended to, says Ajaya Bhadra Khanal, research director at the Centre for Social Innovation and Foreign Policy, a Kathmandu-based think tank. 'As a matter of fact, constitutional amendments were never on the Oli government's agenda. This idea was tossed around to justify the coalition of the two largest parties, which is an unusual practice in parliamentary democracy,' says Mr. Khanal. 'What has actually been established over the past year is a politics of collusion, enabling the subversion of the rule of law in the interest of the ruling parties.' Just as Mr. Oli neared the first anniversary of his government, reports surfaced that one of his Cabinet Ministers was involved in corruption. For several weeks, lawmakers have been raising issues of bad governance and irregularities. Corruption concerns Mr. Oli, a loquacious leader by nature, is never tired of asserting that he won't tolerate corruption, but chooses to maintain silence on the issues of irregularities, including those involving Ministers from his own party. 'Forget achievements and progress; under Oli, corruption has been socialised. And this is even more dangerous,' says Tula Shah, a political analyst. 'The normalisation of corruption epitomises governance failure.' A couple of months ago, Home Minister Ramesh Lekhak's name appeared in connection with a scheme under which millions were allegedly being collected from unsuspecting Nepalis going abroad on visit visas. After a hue and cry in the media and Parliament, the government formed a committee to investigate the matter. By the Oli government's own admission, the 'visit visa scam' had been going on for many years under various governments. Analysts say pointing to previous governments is a deflection tactic by the Oli government, when it should have taken stern measures and asked the Home Minister to resign. 'No government, or its leader for that matter, can avoid responsibility by claiming it has not committed corruption; checking corruption is the primary duty of any government,' says Mr. Shah. 'Implementing strong measures to curb corruption is one of the ways to earn public trust, and the government has failed in this.' Foreign relations fiasco Nepal's foreign policy is mainly shaped by its relations with two countries — India and China, its two neighbours. Ever since Mr. Oli became Prime Minister for the first time in 2018 — after the promulgation of the constitution in 2015 — he has made a habit of taking India head-on. He used Delhi's lukewarm response to the constitution and the subsequent border blockade to whip up ultra-nationalist fervor among his political base. His relations with New Delhi have not been the best. Yet, ever since assuming office last year, Mr. Oli has been keenly waiting for a visit to India. In November, he went to China, in a departure from the general tradition of visiting India first. During the Beijing visit, he secured a deal under the Belt and Road Initiative to carry forward a dozen projects in Nepal with Chinese funding. However, analysts say that does not signify an improved relationship. 'We have not seen any progress under that deal as well,' says Mr. Sharma. According to him, Mr. Oli, who never misses a chance to take a jibe at India, has spent the entire year waiting for an invite from Delhi. 'There is clearly a lack of trust from both neighbours,' he said. 'So, on the foreign policy front as well, Oli has not been successful.' Public dissatisfaction From the very outset, the government has earned notoriety for being intolerant of criticism and for its vindictive attitude. Those criticising the government or people in power on social media have been prosecuted through misuse of laws. In March, pro-monarchy protests attracted many people — though not all were calling for the monarchy's return. Many had joined simply to express dissatisfaction with misgovernance. The way the Oli government handled the protests — two people were killed and several others injured — led to more discontent among the general public. In recent months, even some members of the ruling parties have voiced criticism of the Oli government over its failures in basic areas like service delivery. Improved public service delivery is one way to measure how the government is functioning, but on this front too, the current administration has failed miserably, say analysts. 'The dilapidated condition of a major highway is a clear example of the central government's failure,' says Mr. Sharma. 'Over the past year, the road has remained unchanged, which means the government has done nothing.' A Bill related to civil service was mired in controversy after it was discovered that some interest groups from outside Parliament had influenced the insertion of a provision without lawmakers' knowledge. After the incident was widely reported, a committee to look into the matter was formed. But the episode exposed the weakness of the legislature, where the two big parties control enough seats to pass Bills. A few months ago, the government introduced a flurry of ordinances to change laws it claimed were hindering economic activities. That too raised questions about the 'strength' of the government Mr. Oli claims to lead. Ignoring such incidents that have eroded public faith in the government, Prime Minister Oli's outrageous daily claims of development and governance come as an affront to the people, commentators say. 'All in all, it's a rhetoric-filled one year for Mr. Oli,' says Mr. Sharma. 'More in talk, nothing in substance.' (Sanjeev Satgainya is an independent journalist based in Kathmandu)
The Diplomat
08-07-2025
- Business
- The Diplomat
Why the MCC's Continuation is in the Interest of Nepal — and the US
After putting MCC projects on hold in January this year, the Trump administration recently said that its projects in Nepal would go ahead. The Millennium Challenge Corporation (MCC), an American bilateral foreign aid agency, has been mired in controversy in Nepal since the get-go. It signed a $500 million compact with Nepal in September 2017. Proposed projects aimed to maintain road quality, increase the availability and reliability of electricity, and facilitate cross-border electricity trade between Nepal and India, which in turn would 'spur investments, accelerate economic growth, and reduce poverty.' As part of the deal, besides the $500 million the Americans were giving, Nepal would pitch in $197 million for the completion of the MCC projects. The projects ran into controversy after senior American officials started linking them to the Indo-Pacific Strategy (IPS), an American military construct designed to curtail China's rise. The common sentiment was that Nepal should not be a part of any military or strategic pact, especially one that harms its relations with China, the large neighbor to the north. Early in 2022, senior American officials like the MCC's then-Vice President Fatema Z. Sumar and the then-U.S. Assistant Secretary of State Donald Lu threatened Nepal's political leadership that the failure to ratify the MCC on time could lead to a 'review' of America's ties with Nepal. The compact's stipulation that future disputes in the projects would be settled in line with the compact's provisions — and not Nepal's domestic laws — also irked Nepalis. At the height of the MCC disputes in 2022, Nepali political leaders, especially senior hands in the country's largest party, the Nepali Congress, strongly backed the MCC projects, even when it was not a popular thing to do. Many left-leaning leaders, too, lent their tacit support to the compact — provided it was amended before parliamentary ratification. Eventually, a middle way was found: Nepal's parliament would ratify the compact while also passing an accompanying 'interpretative declaration.' Among other things, the declaration clarified that the compact's endorsement did not mean Nepal will be 'a part of any United States' strategy, military or security alliance including the Indo-Pacific Strategy.' And in case of disputes, the Constitution of Nepal would prevail over the compact. The ratification came at the end of 2022, and the Americans accepted the interpretative declaration, clearing the way for project implementation. Nepal's interests had been secured and the country had locked in an advantageous deal. First, the MCC projects would be built on grants, thus creating no additional liability on the Nepali state. Second, its time-bound nature would be a breath of fresh air in a country where vital infrastructure projects tend to be delayed by years or even decades. Third, as the power lines being built with American money would be used to take Nepal's excess energy to India, it would help Nepal realize its old dream of prospering through the export of its electricity. Then, Donald Trump came to power in January 2025 and declared that all American aid projects, including the MCC, had been put on hold. This created confusion in Nepal as it was unclear whether the funds for Nepal would be exempted. In fact, the common belief was that the Nepal compact was dead and buried — even though it had been signed during Trump's first term as U.S. president. Nepal's liberal-minded politicians had staked their careers and credibility to push for the compact's ratification—and now the Americans were seemingly backing out. Pulling the plug on the compact would thus have made it difficult for the Nepali political class to endorse any future American project or funding. Amid this uncertainty, in the middle of June, the U.S. Embassy in Kathmandu announced that Nepal had been exempted from budget cuts and the MCC projects were still scheduled for completion by their original August 2028 deadline. The announcement was timely. The projects' cancellation would have damaged bilateral ties and harmed Nepal's interests. The U.S. helps balance the oft-overwhelming influence of India and China, Nepal's two big (and only) neighbors, which is why the U.S. is often called Nepal's 'sky' or 'third' neighbor. When India blockaded landlocked Nepal in 2015-16, the United States consistently highlighted the resulting hardships of Nepali people, helping build international pressure on India to quickly lift the embargo. Even for the United States, reneging on the compact would have backfired. (It still could if Trump changes his mind again.) If their goal is to check China's rise in the region, it can only be done by winning the confidence of smaller countries like Nepal and helping them in their development endeavors. The lofty democratic ideals American officials like to emphasize tend to grate when not backed by such solid support. Of late, the U.S. has taken some dubious decisions like the suspension of visa interviews for Nepali students wanting to study in the U.S., and shutting down the USAID that was supporting key health initiatives in Nepal. But the continuity of the MCC projects suggests the Americans are not 'abandoning' Nepal. Even more importantly for Nepalis, the MCC's presence in Nepal undercuts the 'foreign policy myth' that the U.S. views Nepal through Indian lens.
The Star
08-07-2025
- Politics
- The Star
Crowds celebrate Nepal ex-king's birthday in show of support
Nepal's former King Gyanendra Shah (R) receives a well-wisher on his birthday at his residence in Kathmandu on July 7, 2025. - AFP KATHMANDU: Hundreds of well-wishers lined up outside the home of Nepal's deposed king to celebrate his 78th birthday on Monday (July 7), the latest pro-monarchy show of support in the Himalayan republic. Gyanendra Shah, the last king of Nepal, was deposed in 2008 at the end of a decade-long civil war. "I am thankful to everyone who came," Shah said in a brief address to the crowd, dressed in a brown suit jacket and sporting a traditional Nepali cloth hat. In the past year, public support for the restoration of the monarchy has grown - in tandem with dissatisfaction over political instability, corruption and slow economic development in the country of 30 million people. Waving flags and carrying banners, supporters lined the streets near Shah's residence, some honking traditional trumpets and thumping drums. Nepal's royal palace in the capital Kathmandu is now a museum, and Shah's home is a sprawling estate fortified with high walls. "I wish him a long life, and hope to see monarchy return soon," Prajuna Shrestha, a 33-year-old businesswoman, said. Shah accepted flowers and traditional offerings as his grandchildren stood behind him. Nepal's Prime Minister KP Sharma Oli, 73, began his fourth term last year after his Communist Party forged a coalition government with the centre-left Nepali Congress in the often-volatile parliament. "We need a king because it was the monarchy that first unified Nepal," Shrestha added. "If we look at the current situation, politics has deteriorated and the politicians have ruined our country." Shah was crowned in 2001 after his elder brother king Birendra Bir Bikram Shah and his family were killed in a palace massacre. His coronation took place as a Maoist insurgency was raging in far-flung corners of Nepal. Shah suspended the constitution and dissolved parliament in 2005, triggering a democratic uprising in which the Maoists sided with Nepal's political establishment to orchestrate huge street protests. That eventually precipitated the end of the conflict, with parliament voting in 2008 to abolish Nepal's 240-year-old Hindu monarchy. Abdicated king Shah had largely refrained from commenting on Nepal's fractious politics, but has recently made several public appearances with supporters. According to the World Bank, Nepal is currently facing multiple challenges, with more than 80 per cent of the workforce in informal employment. The bank also notes however, that real GDP grew by 4.9 per cent in the first half of the 2025 financial year - up from 4.3 per cent in the same period a year earlier - primarily due to a "pickup in agricultural and industrial sectors". Headline inflation over the same period also eased to five per cent, down from 6.5 per cent the year before. - AFP
France 24
07-07-2025
- Politics
- France 24
Crowds celebrate Nepal ex-king's birthday in show of support
Gyanendra Shah, the last king of Nepal, was deposed in 2008 at the end of a decade-long civil war. "I am thankful to everyone who came," Shah said in a brief address to the crowd, dressed in a brown suit jacket and sporting a traditional Nepali cloth hat. In the past year, public support for the restoration of the monarchy has grown -- in tandem with dissatisfaction over political instability, corruption and slow economic development in the country of 30 million people. Waving flags and carrying banners, supporters lined the streets near Shah's residence, some honking traditional trumpets and thumping drums. Nepal's royal palace in the capital Kathmandu is now a museum, and Shah's home is a sprawling estate fortified with high walls. "I wish him a long life, and hope to see monarchy return soon," Prajuna Shrestha, a 33-year-old businesswoman, told AFP. Shah accepted flowers and traditional offerings as his grandchildren stood behind him. 'Politics has deteriorated' Nepal's Prime Minister KP Sharma Oli, 73, began his fourth term last year after his Communist Party forged a coalition government with the centre-left Nepali Congress in the often-volatile parliament. "We need a king because it was the monarchy that first unified Nepal," Shrestha added. "If we look at the current situation, politics has deteriorated, and the politicians have ruined our country." Shah was crowned in 2001 after his elder brother king Birendra Bir Bikram Shah and his family were killed in a palace massacre. His coronation took place as a Maoist insurgency was raging in far-flung corners of Nepal. Shah suspended the constitution and dissolved parliament in 2005, triggering a democratic uprising in which the Maoists sided with Nepal's political establishment to orchestrate huge street protests. That eventually precipitated the end of the conflict, with parliament voting in 2008 to abolish Nepal's 240-year-old Hindu monarchy. Abdicated king Shah had largely refrained from commenting on Nepal's fractious politics, but has recently made several public appearances with supporters. According to the World Bank, Nepal is currently facing multiple challenges, with more than 80 percent of the workforce in informal employment. The bank also notes however, that real GDP grew by 4.9 percent in the first half of the 2025 financial year -- up from 4.3 percent in the same period a year earlier -- primarily due to a "pickup in agricultural and industrial sectors".
Int'l Business Times
07-07-2025
- Politics
- Int'l Business Times
Crowds Celebrate Nepal Ex-king's Birthday In Show Of Support
Hundreds of well-wishers lined up outside the home of Nepal's deposed king to celebrate his 78th birthday on Monday, the latest pro-monarchy show of support in the Himalayan republic. Gyanendra Shah, the last king of Nepal, was deposed in 2008 at the end of a decade-long civil war. "I am thankful to everyone who came," Shah said in a brief address to the crowd, dressed in a brown suit jacket and sporting a traditional Nepali cloth hat. In the past year, public support for the restoration of the monarchy has grown -- in tandem with dissatisfaction over political instability, corruption and slow economic development in the country of 30 million people. Waving flags and carrying banners, supporters lined the streets near Shah's residence, some honking traditional trumpets and thumping drums. Nepal's royal palace in the capital Kathmandu is now a museum, and Shah's home is a sprawling estate fortified with high walls. "I wish him a long life, and hope to see monarchy return soon," Prajuna Shrestha, a 33-year-old businesswoman, told AFP. Shah accepted flowers and traditional offerings as his grandchildren stood behind him. Nepal's Prime Minister KP Sharma Oli, 73, began his fourth term last year after his Communist Party forged a coalition government with the centre-left Nepali Congress in the often-volatile parliament. "We need a king because it was the monarchy that first unified Nepal," Shrestha added. "If we look at the current situation, politics has deteriorated, and the politicians have ruined our country." Shah was crowned in 2001 after his elder brother king Birendra Bir Bikram Shah and his family were killed in a palace massacre. His coronation took place as a Maoist insurgency was raging in far-flung corners of Nepal. Shah suspended the constitution and dissolved parliament in 2005, triggering a democratic uprising in which the Maoists sided with Nepal's political establishment to orchestrate huge street protests. That eventually precipitated the end of the conflict, with parliament voting in 2008 to abolish Nepal's 240-year-old Hindu monarchy. Abdicated king Shah had largely refrained from commenting on Nepal's fractious politics, but has recently made several public appearances with supporters. According to the World Bank, Nepal is currently facing multiple challenges, with more than 80 percent of the workforce in informal employment. The bank also notes however, that real GDP grew by 4.9 percent in the first half of the 2025 financial year -- up from 4.3 percent in the same period a year earlier -- primarily due to a "pickup in agricultural and industrial sectors". Headline inflation over the same period also eased to five percent, down from 6.5 percent the year before, Nepal's former King Gyanendra Shah celebrated his 78th birthday with well-wishers at his residence in Kathmandu AFP
