Financial viability of the federal model has been a big concern of Nepali policymakers and economists in recent times. Many argue that Nepal simply cannot sustain the ‘costly’ federalism. Uma Shankar Prasad, Associate Professor at Tribhuvan University’s Central Department of Economics, thinks the opposite is true: that federalism is the perfect antidote to Nepal’s underdevelopment. But how? Republica’s Biswas Baral and Mahabir Paudyal caught up with Prasad, who has carried out extensive studies on fiscal federalism in Nepal.
Biswo Poudel has a Phd in Agricultural and Resource Economics from the University of California, Berkley. He has for the past two years been serving as an economist with the Office of the Millennium Challenge. Lead author of “Vision 2030”, Poudel has closely studied Nepal’s economic ties with India and China.
It is said that one reason the ruling Congress-Maoist coalition could not muster two-thirds majority in favor of the constitution amendment bill was the vacillating stand of Rastriya
Prajatantra Party (RPP). Was RPP, as a party, in favor of or against the bill? Is it even one united party? Is it joining the government? What is its stand on key political issues? RPP
President and former Deputy Prime Minister and Foreign Minister Kamal Thapa shared his views with Biswas Baral and Mahabir Paudyal.