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New Govt, Old Challenges

  3 min 19 sec to read

The way the CPN-UML, the second largest party in the Constituent Assembly (CA), boycotted newly elected Prime Minister Sushil Koirala’s swearing-in ceremony on Feb 10 and the UCPN (Maoist), the third largest party in the CA, voted against him in parliament a day before despite an earlier public statement to support him, shows that the new government faces a bumpy road ahead in achieving its main objective of promulgating the new constitution within a year. The reason behind the UML’s boycott is apparently the PM’s refusal to give the party the home ministry. But the reason behind the UCPN (Maoist) voting against Koirala in the parliament is not clear yet; the party simply ignored its previous public statement to support a Koirala-led government. 
 
These two instances are just a symptom of the kind of challenges the new government faces on the political front; they signal how old problems of power game are very much likely to haunt the new government and thus affect the constitution drafting process. The political impact of UML’s boycott is already seen – Koirala has not been able to expand his Cabinet even almost after a week of assuming office. Clearly, drafting the new constitution within the stipulated time is going to be an uphill task for the government led by Koirala who was elected the prime minister more than two months after the CA election. 
 
The new constitution is possible only with the consensus and unity among all political parties. Forging such consensus is the biggest challenge that the new government faces.  
 
Similarly, it is a validly-drawn conclusion that the new government faces a number of old challenges on the economic front as well. Long hours of load-shedding, a double-digit inflation, low capital expenditure, low foreign investment and high rate of unemployment are some of the chronic problems that the new government has inherited from its predecessor. 
 
The problem of power outage has become chronic. It has taken a huge toll on the country’s manufacturing sector. Almost all parties, including PM Koirala’s Nepali Congress, have made commitments in their election manifestos to end the power crisis within the next five years. If this target has to be achieved, then the new government has no time to lose; it must start creating the right environment for foreign investment in hydropower right now.
 
Besides, a number of bills related with the country’s business and economic sector have been pending at the parliament for a long time. Successive governments have failed to get them enacted through the parliament. Special Economic Zone Act, Electricity Act, Bank and Financial Institution Act etc are some of the bills pending at parliament. On the other hand, there are a number of crucial laws which have not been even tabled at the parliament. Some of them include the drafts of Industrial Enterprises Act, Labour Act, Anti-dumping Act, Company Act (amendment), and Foreign Trade Regulation Act, among over a dozen others. Similarly there are some policies such as Foreign Investment and Technology Transfer Policy, Integrated Intellectual Property Policy which need the government’s endorsement. 
 
The private sector hopes the new government will act fast to implement these laws and policies at the earliest possible. Another major expectation of the private sector is the issue of peace and constitution should no more overshadow the agenda of economic development. The government should play the role of a facilitator to form common economic agenda of all the political parties. It means even if the parties differ on political issues, they should stand together on the economic issues. Similarly, the government has to do everything at its disposal to foster the environment for entrepreneurship in the country.   

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