The Economy of Nepal
From Monarchy to Republic
Nepal moved from centuries of monarchy to a federal republic in 2008 and 2015, a political change with lasting economic effects.
Politics shaped the economy.
Monarchy
Kings ruled for centuries, with a period of party rule from the 1990s.
Civil war
A Maoist insurgency from 1996 to 2006 killed thousands and disrupted development.
Republic
The monarchy was abolished in 2008, and a new constitution in 2015 created a federal system.
Instability
Frequent changes of government have made policy continuity hard.
Governments come and go
A short-lived government often has too little time to complete major projects.
Ignoring political stability when studying growth
It matters a lot.
Key takeaways
- The monarchy ended in 2008.
- A civil war ran from 1996 to 2006.
- A new constitution came in 2015.
- Governments change often.
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