The Return of Political Instability

Source: nepalitimes.com

         Politics refers to the process, where the combined ideas, knowledge, etc. are brought to run a country or nation. And Political Instability refers to a sudden change in government. In other words, Political Instability can be defined as the sudden or instant change in government or collapse of government due to various reasons.  

        Political Instability in Nepal has become one of the major issues behind nation economic downfall. There are numerous causes beyond it. One of the leading problems is due to the form of executive between different political parties. Parties having different ideology came together, which bring conflicts and leads to fall of government. Another seed beside the instability in Nepal is due to the instability in Nepal is due to more unemployment rate. Government is unable to provide employment which result poverty. Because of both poverty and unemployment, People of the nation let out their anger to the government, which leads instable government and government may fall.

   

        Because of instable political situation in Nepal, it returns us with many negative impacts. Nepal can be a place of tourism. But, here, no activities regarding to promote are run due to the limited capital. So, here, foreign investment can be brought here to build infrastructure. But because of instable politics conditions, people from foreign or investment company are afraid to invest their capital here, which result negative impacts in country GDP. 

        Another Consequences is that Country's foreign currency reserve will be taken. So, how foreign currency reserve will taken?  Here is the answer. Business or production industry will slowly begin to windup their business because the government doesn't look over those business or unable to provide subsidy or unable to provide security. If the business were shutdown, especially production business, then country has to bring commodity from outside the nation. Nepal is already in trade deficits and due to instable government, it will increase the trade deficits, which takes nation's foreign currency reserve.

        

        Government also face problem here. Government can't meet their expectations. They are unable to spend their budget, especially they cannot made capital expenditure. The country also faces other economic problem such as liquidity crises in banking sectors, which leads inflation, Amount of loan will be increased, government may be unable to pay salaries, value of money will be down, or exchange rate will be high and so forth... 

        To conclude, Political Instability brings many negative impacts on country economy as well as in other sectors. Political parties should play a leading role to make stable government, which will help for the country growth.