Udbodh Bhandari

Nepal has witnessed the formation of a total of 51 governments from February 18, 1951 to May 13, 2021. Five governments were formed under the chairmanship of kings and one under the then Supreme Court Chief Justice Khilaraj Regmi. None of these governments completed their full five-year tenure in office. The existence of a large number of political parties, which usually cobbled together to form the new government, was one source of government instability. In order to ensure minimum stability of government, Constitution of Nepal, 2015 has prohibited the tabling of a no-confidence vote against the prime minister during the first two years of his or her term. So, how the long-term political instability has hit the socio-political, economic and cultural setup has been a matter of an academic debate. This article seeks to discuss as to how chronic political instability has been a stumbling block to the country’s yearning for prosperity and happiness of its citizens.
The political instability generally denotes a government's proclivity to collapse due to conflicts or rampant competition among or within various political parties. Political instability has a clear impact on community security, as societies that are politically unstable experience unrest and security changes. In this respect, political stability, consistency in economic policies, and high-quality human resources are required for the country's socio-economic development. When we talk about political stability in the context of growth, we mean a specific type of stability: the rule of law, strong institutions, a responsive and efficient bureaucracy, low corruption, and an investment-friendly business climate.
Further, if members of the economic society are to prepare in advance and be guaranteed a relatively stable relationship between their contribution to economic activity and their rewards, some level of political stability is required. In this regard, the United Nations divides the field of sustainable development into four major components: economic sustainability, environmental sustainability, political stability, and social stability.
The majority of the researchers concluded that political instability harms economic growth in at least two ways. For starters, it disrupts market activities and labour relations, which has a direct negative impact on productivity. Second, during periods of insecurity in the political environment, the level of investment will be lower. Moreover, the importance of political and social stability of economic performance has been debated since Adam Smith. The main argument supporting the notion is that political stability is a necessary condition for the economy to function optimally. In a research conducted in 61 developed and developing countries, it is revealed that the relationship between political stability and economic growth is positive and significant from 1996 to 2009, especially when changes in per capita income. Political stability and nonviolence levels were also observed.

Stability and growth
Development and economic growth that is based on a clear scientific foundation and a finely tuned strategy can only be strengthened by the pervasiveness of security and political stability that is consistent with the needs of the citizen to achieve a prominent place of development and progress. Because stability implies a predictable political environment, the economy may fare well in terms of attracting foreign direct investment. In this sense, political stability over time is important for economic growth because any violation of a stable environment threatens market stability and leads to a lower rate of economic growth.
More importantly, economic performance is driven by political stability. It is determined by the behaviour of key economic variables such as economic growth, income distribution inequality, inflation, poverty levels, and fiscal and monetary policy decisions, among others. So, economic growth and political stability are inextricably linked. To improve political stability and contribute to long-term increases in economic growth rates, indicators such as participation, government effectiveness, regulatory quality, and the rule of law must be strengthened.

Global instances
Some African states that have achieved high growth rates have remarkably stable political systems. Tanzania has multiparty democracy with sound political stability that essentially allows it to receive aid from donor countries, fuelling its economic growth. However, many Latin American countries that have more free and democratic regimes suffer from the slow economic growth, high unemployment rates and prolonged income inequality, resulting in various types and magnitudes of political instability. Furthermore, political stability has contributed to the Romanian economic development at least from 1990 to 2011.
Similarly, Ghana was a failed state for a certain time, but with resilience and determination, it made a complete upturn toward political stability, good governance, and sustainable development. In the 1960s, Sub-Saharan Africa was marred by coups, and the atmosphere was rife with suspicions as the number of armed insurgencies increased. Moreover, countries such as Mexico, Colombia, and some Central American countries have undergone the process of political and social instability as violent crime and corporate greed linked to organised crimes became more prevalent.
In the initial years of the incumbent government, many of the national, provincial, and local level development projects, including that of pride projects have been completed and many projects have taken off. Nevertheless, political instability persists. It is imperative to conduct research concentrate on the nexus between political insecurity, economic growth and financial development in countries, including Nepal.

(A social development specialist, Bhandari works at development and research projects. aruudbodh@gmail.com)