Shaky coalition and the economy

Inadequate investment in education has led to a huge outflow of students and foreign currency.

The “common minimum programme” is the basis for the newly formed government's economic and development policy. But the policy is not well laid out, and it simply lists wishes like double-digit growth and enumerates the economic problems besetting the country like dwindling foreign reserves and rising inflation. Finance Minister Bishnu Prasad Poudel acknowledges that the economy is in a deep crisis, but a more urgent challenge for the government is maintaining cordial relations among the seven coalition partners. So it is more likely to be preoccupied with keeping its parliamentary arithmetic intact than taking bold steps to propel the economy upward. The current challenges in the economy can be grouped under four categories: (i) Political economy, (ii) Productivity and employment, (iii) External sector, and (iv) Federal and local spending.