Your code:
$the_query = new WP_Query( array(
'posts_per_page' =>'2',
'paged' => $paged
));
Replace With this:
global $wp_query;
$paged = (get_query_var('paged')) ? get_query_var('paged') : 1;
$args = array_merge( $wp_query->query, array( 'posts_per_page' =>'2','paged' => $paged ) );
query_posts( $args );
NOTE: This code is not tested so first backup your page.