NEFPORT 44 - Political Economy in Transition

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DOCKING NEPAL’S ECONOMIC ANALYSIS

POLITICAL OVERVIEW POLITICAL OVERVIEW Due to the internal conflict within the ruling Nepal Communist Party (NCP), this review period saw dramatic turnovers in the political scenario of the country. President Bidya Devi Bhandari, on the recommendation of Prime Minister KP Sharma Oli dissolved the House of Representatives and announced the dates for mid-term elections. This move received widespread criticism and was deemed unconstitutional by several political leaders and as well as, civil society leaders. Following the dissolution of the lower house, cabinet members resigned, after which the government appointed officials to several Constitutional bodies, for which they were scrutinized again. Many political parties and civilians, especially the Dahal-Nepal led faction of the NCP led protests against the dissolution, while the Oli-led faction and his supporters organized mass gatherings and rallies in support of the Prime Minister. The Supreme Court of Nepal reinstated the House of Representatives (HoR) after conducting hearings on the 13 writ petitions filed against the PM’s decision for over a month. House of Representatives dissolved:

On 20 December, 2020, Prime Minister KP Sharma Oli called for the dissolution of Nepal’s parliament, which was swiftly endorsed by President Bidya Devi Bhandari citing Article 76 (1) and (7), and Article 85 of the Constitution. The President also announced the dates for the new elections which were to be held: on 30 April, 2021 and 10 May, 2021, a year ahead of schedule. The PM’s decision to dissolve the parliament came after the Dahal-Nepal faction of the Nepal Communist Party (NCP) planned to move a vote of no confidence against him. The NCP has seen a vertical split following the decision of house dissolution. PM Oli’s move was widely criticized

and deemed unconstitutional, as the current Constitution of Nepal does not give the Prime Minister any power to dissolve the Parliament. As many as 13 writ petitions were filed against the PM’s decision.1 Several opposition political parties--Nepali Congress, Rastra Samajbadi Party, Bibeksheel Sajha Party, as well as the Dahal-Nepal led NCP faction staged demonstrations and protests across the country ever since the dissolution of the Parliament. Seven ministers resigned over parliament dissolution: Seven

ministers from Oli’s cabinet the dissolution Representatives

PM KP Sharma resigned following of the House of condemning the

PM's move as unconstitutional. Those ministers who filed their resignations were closely affiliated to NCP cochair Pushpa Kamal Dahal and senior leader Madhav Kumar Nepal. Agriculture Minister Ghanshyam Bhusal, Energy Minister Barshaman Pun, Drinking Water Minister Bina Magar, Culture and Tourism Minister Yogesh Kumar Bhattarai, Education Minister Giriraj Mani Pokhrel, Forest Minister Shakti Basnet, and Labour Minister Rameshwor Ray Yadav were few Cabinet members who immediately resigned.2 The Supreme Court reinstated the Parliament: On 23 February, 2021,

the Supreme Court of Nepal reinstated the House of Representatives (HoR)


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