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Introduction
Geography
People
Government
Economy
Communications
Transportation
Military
Transnational Issues

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This page was last updated on 29 March, 2006

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| Introduction | Nepal | Top of Page

Background:

In 1951, the Nepalese monarch ended the century-old system of rule by hereditary premiers and instituted a cabinet system of government. Reforms in 1990 established a multiparty democracy within the framework of a constitutional monarchy. A Maoist insurgency, launched in 1996, has gained traction and is threatening to bring down the regime, especially after a negotiated cease-fire between the Maoists and government forces broke down in August 2003. In 2001, the crown prince massacred ten members of the royal family, including the king and queen, and then took his own life. In October 2002, the new king dismissed the prime minister and his cabinet for "incompetence" after they dissolved the parliament and were subsequently unable to hold elections because of the ongoing insurgency. While stopping short of reestablishing parliament, the king in June 2004 reinstated the most recently elected prime minister who formed a four-party coalition government. Citing dissatisfaction with the government's lack of progress in addressing the Maoist insurgency and corruption, the king in February 2005 dissolved the government, declared a state of emergency, imprisoned party leaders, and assumed power. The King's government subsequently released party leaders and officially ended the state of emergency in May 2005.

| Geography | Nepal | Top of Page

Location: | Southern Asia, between China and India
Geographic coordinates: | 28 00 N, 84 00 E
Map references: | Asia
Area: | total: 140,800 sq km land: 136,800 sq km water: 4,000 sq km
Area - comparative: | slightly larger than Arkansas
Land boundaries: | total: 2,926 km border countries: China 1,236 km, India 1,690 km
Coastline: | 0 km (landlocked)
Maritime claims: | none (landlocked)
Climate: | varies from cool summers and severe winters in north to subtropical summers and mild winters in south
Terrain: | Tarai or flat river plain of the Ganges in south, central hill region, rugged Himalayas in north
Elevation extremes: | lowest point: Kanchan Kalan 70 m highest point: Mount Everest 8,850 m
Natural resources: | quartz, water, timber, hydropower, scenic beauty, small deposits of lignite, copper, cobalt, iron ore
Land use: | arable land: 16.07% permanent crops: 0.85% other: 83.08% (2005)
Irrigated land: | 11,350 sq km (1998 est.)
Natural hazards: | severe thunderstorms, flooding, landslides, drought, and famine depending on the timing, intensity, and duration of the summer monsoons
Environment - current issues: | deforestation (overuse of wood for fuel and lack of alternatives); contaminated water (with human and animal wastes, agricultural runoff, and industrial effluents); wildlife conservation; vehicular emissions
Environment - international agreements: | party to: Biodiversity, Climate Change, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Tropical Timber 83, Tropical Timber 94, Wetlands signed, but not ratified: Marine Life Conservation
Geography - note: | landlocked; strategic location between China and India; contains eight of world's 10 highest peaks, including Mount Everest - the world's tallest - on the border with China

| People | Nepal | Top of Page

Population: | 28,287,147 (July 2006 est.)
Age structure: | 0-14 years: 38.7% (male 5,648,959/female 5,291,447) 15-64 years: 57.6% (male 8,365,526/female 7,925,941) 65 years and over: 3.7% (male 513,777/female 541,497) (2006 est.)
Median age: | total: 20.3 years male: 20.1 years female: 20.4 years (2006 est.)
Population growth rate: | 2.17% (2006 est.)
Birth rate: | 30.98 births/1,000 population (2006 est.)
Death rate: | 9.31 deaths/1,000 population (2006 est.)
Net migration rate: | 0 migrant(s)/1,000 population (2006 est.)
Sex ratio: | at birth: 1.05 male(s)/female under 15 years: 1.07 male(s)/female 15-64 years: 1.06 male(s)/female 65 years and over: 0.95 male(s)/female total population: 1.06 male(s)/female (2006 est.)
Infant mortality rate: | total: 65.32 deaths/1,000 live births male: 63.56 deaths/1,000 live births female: 67.17 deaths/1,000 live births (2006 est.)
Life expectancy at birth: | total population: 60.18 years male: 60.43 years female: 59.91 years (2006 est.)
Total fertility rate: | 4.1 children born/woman (2006 est.)
HIV/AIDS - adult prevalence rate: | 0.5% (2001 est.)
HIV/AIDS - people living with HIV/AIDS: | 61,000 (2001 est.)
HIV/AIDS - deaths: | 3,100 (2003 est.)
Nationality: | noun: Nepalese (singular and plural) adjective: Nepalese
Ethnic groups: | Chhettri 15.5%, Brahman-Hill 12.5%, Magar 7%, Tharu 6.6%, Tamang 5.5%, Newar 5.4%, Muslim 4.2%, Kami 3.9%, Yadav 3.9%, other 32.7%, unspecified 2.8% (2001 census)
Religions: | Hindu 80.6%, Buddhist 10.7%, Muslim 4.2%, Kirant 3.6%, other 0.9% (2001 census) note: only official Hindu state in the world
Languages: | Nepali 47.8%, Maithali 12.1%, Bhojpuri 7.4%, Tharu (Dagaura/Rana) 5.8%, Tamang 5.1%, Newar 3.6%, Magar 3.3%, Awadhi 2.4%, other 10%, unspecified 2.5% (2001 census) note: many in government and business also speak English
Literacy: | definition: age 15 and over can read and write total population: 45.2% male: 62.7% female: 27.6% (2003 est.)

| Government | Nepal | Top of Page

Country name: | conventional long form: Kingdom of Nepal conventional short form: Nepal
Government type: | parliamentary democracy and constitutional monarchy (since May 2002 parliament has remained suspended and since 1 February 2005 power rests with the palace)
Capital: | Kathmandu
Administrative divisions: | 14 zones (anchal, singular and plural); Bagmati, Bheri, Dhawalagiri, Gandaki, Janakpur, Karnali, Kosi, Lumbini, Mahakali, Mechi, Narayani, Rapti, Sagarmatha, Seti
Independence: | 1768 (unified by Prithvi Narayan Shah)
National holiday: | Birthday of King GYANENDRA, 7 July (1946)
Constitution: | 9 November 1990
Legal system: | based on Hindu legal concepts and English common law; has not accepted compulsory ICJ jurisdiction
Suffrage: | 18 years of age; universal

Executive branch:

chief of state: King GYANENDRA Bir Bikram Shah (succeeded to the throne 4 June 2001 following the death of his nephew, King DIPENDRA Bir Bikram Shah)
head of government: King GYANENDRA Bir Bikram Shah; note - in February 2005, the King sacked Sher Bahadur DEUBA, the last Prime Minister he appointed
cabinet: Cabinet appointed by the monarch on the recommendation of the prime minister; note - in February 2005 the King dissolved the Cabinet and set up his own Cabinet, which he chairs
elections: none; the monarch is hereditary; following legislative elections, the leader of the majority party or leader of a majority coalition is usually appointed prime minister by the monarch
note: King BIRENDRA Bir Bikram Shah Dev died in a bloody shooting at the royal palace on 1 June 2001 that also claimed the lives of most of the royal family; King BIRENDRA's son, Crown Prince DIPENDRA, is believed to have been responsible for the shootings before fatally wounding himself; immediately following the shootings and while still alive, DIPENDRA was crowned king; he died three days later and was succeeded by his uncle

Legislative branch:

bicameral Parliament consists of the National Council (60 seats; 35 appointed by the House of Representatives, 10 by the king, and 15 elected by an electoral college; one-third of the members elected every two years to serve six-year terms) and the House of Representatives (205 seats; members elected by popular vote to serve five-year terms)
elections: House of Representatives - last held 3 and 17 May 1999 (elections have been postponed due to security concerns related to the Maoist insurgency); note - Nepal's Parliament was dissolved on 22 May 2002
election results: House of Representatives (for 1999 parliament) - percent of vote by party - NC 37.3%, CPN/UML 31.6%, NDP (RPP) 10.4%, NSP 3.2%, Rastriya Jana Morcha 1.4%, Samyukta Janmorcha Nepal 0.8%, NWPP 0.5%, others 14.8%; seats by party - NC 113, CPN/UML 69, NDP 11, NSP 5, Rastriya Jana Morcha 5, Samyukta Janmorcha Nepal 1, NWPP 1; note - NC, NSP, and NDP have since each split into two parties

Judicial branch: | Supreme Court or Sarbochha Adalat (chief justice is appointed by the monarch on recommendation of the Constitutional Council; the other judges are appointed by the monarch on the recommendation of the Judicial Council)

Political parties and leaders:

Communist Party of Nepal/United Marxist-Leninist or CPN/UML [Madhav Kumar NEPAL, general secretary]; National Democratic Party or NDP (also called Rastriya Prajantra Party or RPP) [Pashupati Shumsher RANA, chairman]; Nepali Congress-Democratic [Sher Bahadur DEUBA, president]; Nepali Congress or NC [Girija Prasad KOIRALA, party president, Sushil KOIRALA, vice president]; Nepal Sadbhavana (Goodwill) Party or NSP - Mandal [Bhadri Prasad MANDAL, party president]; Nepal Sadbhavana Party - Ananda Devi [Ananda DEVI, president]; Nepal Workers and Peasants Party or NWPP [Narayan Man BIJUKCHHE, party chairman]; People's Front Nepal (Rastriya Jana Morcha) [Amik SHERCHAN, chairman]; Rastriya Janashakti Party or RJP [Surya Bahadur THAPA, chairman]; note - split from RPP in March 2005; Samyukta Janmorcha Nepal [leader NA]; note - merged with People's Front Nepal or PFN in 2002

Political pressure groups and leaders: | Maoist guerrilla-based insurgency [Pushpa Kamal DAHAL, also known as PRACHANDA, chairman; Dr. Baburam BHATTARAI]; numerous small, left-leaning student groups in the capital; several small, radical Nepalese antimonarchist groups
International organization participation: | AsDB, BIMSTEC, CP, FAO, G-77, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM (observer), IPU, ISO (correspondent), ITU, MIGA, MINUSTAH, MONUC, NAM, ONUB, OPCW, SAARC, SACEP, UN, UNAMSIL, UNCTAD, UNDOF, UNESCO, UNIDO, UNMEE, UNMIL, UNMIS, UNOCI, UNTSO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WToO, WTO
Diplomatic representation in the US: | chief of mission: Ambassador Kedar Bhakta SHRESTHA chancery: 2131 Leroy Place NW, Washington, DC 20008 telephone: [1] (202) 667-4550 FAX: [1] (202) 667-5534 consulate(s) general: New York
Diplomatic representation from the US: | chief of mission: Ambassador James F. MORIARTY embassy: Pani Pokhari, Kathmandu mailing address: use embassy street address telephone: [977] (1) 411-1179 FAX: [977] (1) 441-9963
Flag description: | red with a blue border around the unique shape of two overlapping right triangles; the smaller, upper triangle bears a white stylized moon and the larger, lower triangle bears a white 12-pointed sun

| Economy | Nepal | Top of Page

Economy - overview:

Nepal is among the poorest and least developed countries in the world with almost one-third of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for three-fourths of the population and accounting for 38% of GDP. Industrial activity mainly involves the processing of agricultural produce including jute, sugarcane, tobacco, and grain. Security concerns relating to the Maoist conflict have led to a decrease in tourism, a key source of foreign exchange. Nepal has considerable scope for exploiting its potential in hydropower and tourism, areas of recent foreign investment interest. Prospects for foreign trade or investment in other sectors will remain poor, however, because of the small size of the economy, its technological backwardness, its remoteness, its landlocked geographic location, its civil strife, and its susceptibility to natural disaster.

GDP (purchasing power parity): | $42.26 billion (2005 est.)
GDP (official exchange rate): | $6.627 billion (2005 est.)
GDP - real growth rate: | 2.5% (2005 est.)
GDP - per capita (PPP): | $1,500 (2005 est.)
GDP - composition by sector: | agriculture: 38% industry: 21% services: 41% (2005 est.)
Labor force: | 10.4 million note: severe lack of skilled labor (2004 est.)
Labor force - by occupation: | agriculture 76%, industry 6%, services 18%
Unemployment rate: | 42% (2004 est.)
Population below poverty line: | 31% (2003-2004)
Household income or consumption by percentage share: | lowest 10%: 2.6% highest 10%: 39.1% (2003-2004)
Distribution of family income - Gini index: | 37.7 (FY04/05)
Inflation rate (consumer prices): | 7.8% (October 2005 est.)
Budget: | revenues: $1.153 billion expenditures: $1.789 billion; including capital expenditures of $NA (FY05/06)
Agriculture - products: | rice, corn, wheat, sugarcane, root crops; milk, water buffalo meat
Industries: | tourism, carpet, textile; small rice, jute, sugar, and oilseed mills; cigarettes, cement and brick production
Industrial production growth rate: | 3.8% (FY04/05)
Electricity - production: | 2.565 billion kWh (2005)
Electricity - consumption: | 1.85 billion kWh (2005)
Electricity - exports: | 111 million kWh (2005)
Electricity - imports: | 241 million kWh (2005)
Oil - production: | 0 bbl/day (2005 est.)
Oil - consumption: | 11,980 bbl/day (2005 est.)
Oil - exports: | NA bbl/day
Oil - imports: | NA bbl/day
Natural gas - production: | 0 cu m (2003 est.)
Natural gas - consumption: | 0 cu m (2003 est.)
Exports: | $822 million f.o.b.; note - does not include unrecorded border trade with India (2005 est.)
Exports - commodities: | carpets, clothing, leather goods, jute goods, grain
Exports - partners: | India 47.4%, US 22.7%, Germany 8.4% (2004)
Imports: | $2 billion f.o.b. (2005 est.)
Imports - commodities: | gold, machinery and equipment, petroleum products, fertilizer
Imports - partners: | India 46.3%, China 10.8%, UAE 9.3%, Saudi Arabia 4.1% (2004)
Debt - external: | $3.34 billion (March 2005)
Economic aid - recipient: | $424 million (FY00/01)
Currency (code): | Nepalese rupee (NPR)
Exchange rates: | Nepalese rupees per US dollar - 71.368 (2005), 73.674 (2004), 76.141 (2003), 77.877 (2002), 74.949 (2001)
Fiscal year: | 16 July - 15 July

| Communications | Nepal | Top of Page

Telephones - main lines in use: | 417,900 (2004)
Telephones - mobile cellular: | 116,800 (2004)
Telephone system: | general assessment: poor telephone and telegraph service; fair radiotelephone communication service and mobile cellular telephone network domestic: NA international: country code - 977; radiotelephone communications; microwave landline to India; satellite earth station - 1 Intelsat (Indian Ocean)
Radio broadcast stations: | AM 6, FM 5, shortwave 1 (January 2000)
Television broadcast stations: | 1 (plus 9 repeaters) (1998)
Internet country code: | .np
Internet hosts: | 7,846 (2005)
Internet users: | 175,000 (2005)

| Transportation | Nepal | Top of Page

Airports: | 48 (2005)
Airports - with paved runways: | total: 10 over 3,047 m: 1 914 to 1,523 m: 7 under 914 m: 2 (2005)
Airports - with unpaved runways: | total: 38 1,524 to 2,437 m: 1 914 to 1,523 m: 8 under 914 m: 29 (2005)
Railways: | total: 59 km narrow gauge: 59 km 0.762-m gauge (2004)
Roadways: | total: 15,905 km paved: 8,573 km unpaved: 7,332 km (2003)

| Military | Nepal | Top of Page

Military branches: | Royal Nepalese Army (includes Royal Nepalese Army Air Service); Nepalese Police Force
Military service age and obligation: | 18 years of age for voluntary military service (2001)
Manpower available for military service: | males age 18-49: 6,107,091 (2005 est.)
Manpower fit for military service: | males age 18-49: 4.193 million (2005 est.)
Manpower reaching military service age annually: | males: 308,031 (2005 est.)
Military expenditures - dollar figure: | $104.9 million (2005 est.)
Military expenditures - percent of GDP: | 1.5% (2005 est.)

| Transnational Issues | Nepal | Top of Page

Disputes - international: | joint border commission continues to work on small disputed sections of boundary with India; India has instituted a stricter border regime to restrict transit of Maoist insurgents and illegal cross-border activities
Refugees and internally displaced persons: | refugees (country of origin): 104,915 (Bhutan) IDPs: 100,000-200,000 (ongoing conflict between government forces and Maoist rebels; displacement spread across the country) (2005)
Illicit drugs: | illicit producer of cannabis and hashish for the domestic and international drug markets; transit point for opiates from Southeast Asia to the West

This page was last updated on 29 March, 2006