The Economy of Nepal
The 2015 Border Blockade
A blockade of border points with India in late 2015 caused severe fuel and medicine shortages, prompting Nepal to reduce its dependence on India.
Dependence has a price.
Cause
Protests by groups in the plains over the new constitution disrupted border crossings.
Impact
Fuel, cooking gas and medicine ran short, and prices soared.
Response
Nepal signed trade and transit deals with China, though geography limits them.
Lesson
Overdependence on one route exposes a landlocked country.
A petrol queue
Motorists waited days for fuel during the shortage.
Assuming alternatives can quickly replace an established route
Mountains make it hard.
Key takeaways
- The blockade began in 2015.
- Fuel shortages hit hard.
- Nepal turned to China for a backup.
- Geography limits diversification.
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