Political Environment

Presenters:
Seema Chhetri
Sonika Dali
 Political Environment
• Political Environment is the state, government and its institutions and
legislations and the public and private stakeholders who operate and
interact with or influence the system.

• Political Environment forms the basis of business environment in a

country.

• The political atmosphere should be good and very stable for a firm to
operate successfully.
Factors and Impact
 Political Ideology

• Socialism

• Communism

• Democracy

• Monarchism
 Political Structure

Nepal formally entered into the federalism after the promulgation of

new constitutions in 2072 BS. Nepal is now federal democratic
republican state. There are three layers of government now

• Federal government

• Provincial government

• Local government
 Political System

• Constitutions: fundamental law of land, constitutional supremacy: Nepal is

a federal democratic republican state

• Power Center: west ministerial prime minister system, PM is the power

house, ceremonial president (presidential system vs prime ministerial
system)

• Election system: Mixed election system (for federal and provincial

parliament)
 Political Parties
• Essential institution of democracy
• Offer citizens a choice in governance
• Driving vehicles for socio-economic development
• Offer unique benefits
 Political Condition of Nepal

2001 Dec 2007-May 2008

1990-1996
Royal Massacre Abolition of the Monarchy
Parliamentary Monarchy

1996 2005-2007 2008 onwards

Maoist Insurgency Suspension of Parliament and
Federal Republic
Lokantra Andolan
 Political Parties
Communist
Party of Nepal-KP Sharma Oli CPN(UNIFIED SOCIALIST)
Madhav Kumar Nepal

Nepali Congress People's Socialist Party

Sher Bahadur Deuba Upendra Yadav

Communist Party of Nepal Loktantrik Samajwadi Party

Pushpa Kamal Dahal Mahantha Thakur
 Political Institutions/Government

• Legislative

• Executive (government)

• Judiciary
 Outsider Influence
• India: wants to involve in the micromanagement/domestic affairs

• China: Chinese ambassador was quite active during the time of

dissolution of parliament.

• US: through indo-pacific strategy, there was pressure from the US not
to sign an extradition agreement during the visit of the Chinese
president, pressure to endorse the MCC in parliament