POLITICAL ECONOMY, CONFLICT AND DEMOCRACY: A CASE OF NEPAL

Nepal is facing serious problems of political instability and may get into civil war again if the chronic political issues remain unresolved. The aim of this paper is to study the relationship between political instability and socio-economic structure and existing political economy. It also aims to highlight that democracy without equality and fair distribution of resources cannot flourish and sustain. Paper gives historical background of political instability and lack of democratic consensus, and draws its relationship with the existing centralized political economy, inequality and unfair distribution of resources in Nepal. The research depends on the secondary data and journal articles, books, reports; newspapers are consulted and researched in this regard. The data indicates that the conflict and political instability in Nepal is due to the equality and centralized political economy. If Nepal does not have considerable and radical changes in socio-economic structures the conflict and political instability is likely to persist.