By Nirmal P. Acharya
The new government was sworn in on March 27, with 35-year-old leader of the Rastriya Swatantra Party (National Independence Party), Balendra Shah, becoming the prime minister. This change of ruling party broke the decades-long monopoly of traditional parties and marked a generational shift in Nepal’s political landscape.
To predict Nepal’s future national fortune, it may be necessary to observe whether the new government can solve the following four major problems:
Politics: Can the young team manage the country well?
This is a rare “Generation Z” government in the political history of Nepal, but it also faces real challenges:
- Historical advantage: The party holds nearly two-thirds of the seats in the parliament, providing a rare stable governance window in the past and promising to end the 18-year period with 15 changes of government.
- Experience deficiency: As a newly established party for only a few years, it lacks an organizational network across the country, and its governance experience and connections within the bureaucratic system are almost non-existent.
Economy: The Gap Between Ambitious Goals and Reality:
The new government has set an ambitious goal of raising the GDP to 100 billion US dollars within five years, but it is facing a severe test right from the start.
- High inflationary pressure: Due to the situation in the Middle East, the prices of imported rice and edible oil in Nepal have risen, and a cost-of-living crisis is imminent.
- Bold reforms: The finance minister has decided to abolish 15 outdated laws, including the Foreign Investment Restriction Act, and is attempting to simplify procedures to attract foreign investment and promote the development of the private sector.
- Dependence on remittances: The economy is heavily reliant on remittances. The new government must create sufficient jobs to retain the hundreds of thousands of young people who are forced to work abroad each year.
Public Welfare: Can Anti-corruption and Welfare Promises Be Fulfilled?
The appeal of the new government is built on the promise of “integrity and efficiency”, and it is already taking action:
- Administrative digitalization: It was announced that public service processes will be simplified through digital means and digital medical reform will be implemented.
- Medical safety net: Public and private hospitals are required to set aside 10% of their beds for free treatment of impoverished patients.
- Anti-corruption determination: It was promised to investigate the assets of public officials, but this will undoubtedly touch upon the huge vested interest groups.
Diplomacy: How to Walk the Tightrope Between “Elephants”?
- “Pro-Nepal” Principle: The new prime minister has clearly stated that he will firmly adhere to a “pro-Nepal” foreign policy.
- Balanced Strategy: Emphasizing the hope of maintaining strong relations with both China and India, but on issues such as historical maps and trade routes, attention still needs to be paid to the reactions of neighboring countries.
Overall, Nepal is standing at a crossroads brimming with hope. The young government enjoys unprecedented public support. If it can take advantage of this momentum to implement reforms, stabilize the economy and fulfill its anti-corruption pledges, this “land of snow-capped mountains” will witness a genuine turning point. However, if it lacks governance experience or faces obstacles in reform, the surging public sentiment could quickly turn against it.
Kathmandu is filled with the spirit of spring. All the members of the new government are young people, and they exude the vitality of youth. The people have every reason to be hopeful about the future. Hopefully, the young new prime minister can handle every governance challenge as smoothly and gracefully as performing a song.
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