Three developments, namely, the decline of parties, poor governance and a growing financial crisis with negative economic growth are collectively responsible for the political instability Uttar Pradesh has experienced. Due to ethnic mobilisation, parties confined to their narrow sectarian bases have been unable to aggregate public opinion, obtain majority support and form stable governments. This has led to short-lived coalitions, which have not been able to formulate long-term policies that can address the felt needs of the people contributing in turn to the breakdown of governance and instability. Fiscal indiscipline by governments has also pushed the state into a debt trap and serious economic decline, which is responsible for the disillusionment among the electorate witnessed in the recent elections. These negative features have developed since the late 1980s. The paper concludes that reform of parties is an urgent necessity without which the prospects of a functioning party system, effective governance and political stability remain dim.
