A standoff between Nepal's prime minister and its president has brought the country to the brink of crisis. The resignation of Maoist Prime Minister Prachanda threatens the survival of a peace agreement between Maoist rebels and the government that ended a decade-long civil war. The Maoists say they remain committed to change through the ballot box and the constitutional order, but hardliners may yet prevail and a bloody battle for control of the nation could resume.

Civil war was both a cause and an effect of Nepal's status as one of the world's poorest countries. The vicious insurgency that reduced the government's effective control to territory just beyond the capital of Katmandu was spurred by a ruling class that was unable to better the lives of the vast majority of Nepalese. The war scared off investment, halted development and ensured that poverty remained the norm. A decade of vicious conflict claimed over 12,000 lives.

The abject failure of the Nepalese monarchy to successfully rule led to peace negotiations. The result was a 2006 accord that brought the Maoists out of the political wilderness and the king's relinquishing of sovereignty back to Parliament. In parliamentary elections held in April 2008, the Maoists won the largest bloc of seats, propelling their leader, Mr. Pushpa Kamal Dahal, better known as Prachanda, into the prime minister's office at the head of a coalition government.