The political crisis that triggered off in Nepal with Prime Minster Prachanda’s resignation yet again indicates not only the trials and tribulations of a fledgling democratic process but also points to the geopolitical vulnerability of the country sandwiched as it is between the two Asian giants. While India considers Nepal a part of its sphere of influence, it is increasingly being challenged by China’s inroads into Nepal. In fact, the growing Nepal-China nexus should be seen in the context of India-China power competition in Asia.

Ever since the peace agreement signed between the Maoists and Nepal government in 2006, Nepal has been in the middle of political crisis delaying the constitution making process. The recent row between the Nepal Army and the government leading to the resignation of Prime Minister, Pushpa Kamal Dahal protesting the President’s intervention in the decision, has aggravated the situation further. The fact is that UCPN-Maoist is not only the largest political party in the Parliament but also important to the success of peace process. The House needs two-third’s majority to pass the bills.

There has been a major shift in China’s foreign policy towards Nepal since the Maoist ascendance to power. China had earlier adopted a policy of ‘non-intervention’ in the internal matters of Nepal and largely stayed out of Nepalese internal politics. However, the demise of the monarchy and the ascendance of political parties have forced China to reshape its Nepal policy. Moreover, frequent protests by Tibetans in recent months alerted the Chinese to the possibility of the China-Tibet border being misused.

In the just concluded two-day conference at the IDSA on “Changing Political Context in India’s Neighbourhood: Prospects of Regional Cooperation”, Dr Hari P. Bhattaria from Tribhuvan University, Nepal alluded to the problem of integration of over 19,000 former Maoists in the Nepal Army or para-military forces in Security Sector Reforms.

No other recent visit to India has been so eagerly awaited as that of Pushpa Kumar Dahal, alias Prachanda, the Maoist revolutionary turned democrat and Prime Minister of ‘New Nepal’. His party received a thumping mandate from the electorate in the last elections and but for the fact that 50 per cent of the seats were to be filled up by proportional representation, it could have easily crossed the half way mark in the constituent assembly. Thus, under the existing electoral procedure, the Maoists were forced to bank on other political parties to form a government.

The year 2008 has witnessed yet another disastrous flood in North Bihar. Floods in Bihar have been almost an annual phenomenon. Though the capacity of the river flow was well below the danger line this time around, the situation was in fact aggravated by a breach in the Eastern embankment. Estimates indicate that around thirty lakh people have been displaced and their livelihoods devastated in sixteen districts of north-eastern Bihar. At the same time, around 50,000 people have been affected in Sunsari district of Nepal.