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    Assignment 5

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    Rex Shrestha
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    Assignment 5

    Uploaded by

    Rex Shrestha
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    Essay

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    Essay

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    Download as doc, pdf, or txt
    25 views1 page

    Assignment 5

    Uploaded by

    Rex Shrestha
    Essay

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    Is the countrys poor performance linked to our political instability?

    Nepals economic growth is sliding for consecutive years, making the aforementioned question pertinent. conomic growth and political instability have the positive correlation. ! prolonged political instability has left Nepals significant number of the poor and vulnerable completely neglected. "umanitarian sufferings, especially in the food#insecure and disaster# prone areas are much worse. Inequality in income in urban slums is also the rising concern to be contained in inter#party priority of inclusive growth. !s increasing uncertainties in restructuring developmental roadmap is alarmingly being delayed, the development partners have already shown their concerns about the future of their loan and grant assistance. $olitical conflict, prolonged and unresolved peace process, irregular political changes, and uncertainty into the market#place have reversed economic growth. %he investors complain they have been paying higher entry or e&it costs when they invest. %his is the reason why prospective investors are compelled to decrease their investment to minimi'e these costs. %he lesson is to develop intervention measures when weaker, and so#called consensus#based reform is rapidly e&perimented at a time when political instability adversely affects the growth prospects. (f course, price stability, higher education and technical qualifications of the population, increasing factor productivity, technological modernity, e&port promotion etc. may not be directly related to political stability. )ut political stability in the long run ultimately ensures a relative price stability, improves educational and qualification status of the people, increases factor productivity, enables technology transfer, promotes e&ports. %hose are the factors essential for economic growth. *oreover, long term political stability provides a friendly atmosphere for evolution of democracy. +emocratic political order in turn, can ensure political stability.

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