While Nepal’s coalition government under Prime Minister Pushpa Kamal Dahal of the Communist Party of Nepal (Maoist Center) remained stable in 2023, domestic politics was overshadowed by strains in the country’s economy which suffered a recession for the first time in six decades. Economic woes, corruption, a poor job market and high inflation have caused resentment, leading to sporadic public demonstrations against the government. Murmurs of discontent in the coalition are stirring, but what the country needs is political stability.
Nepal’s foreign policy attaches major importance to its immediate, big and powerful neighbours — India and China — as well as other development partners and multilateral agencies. The United States has also been gradually increasing its influence in Nepal. Prime Minister Dahal visited these three countries in 2023 to signal Nepal’s desire…