Nepal

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. 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. The country is now governed by the king and his appointed cabinet, which has negotiated a cease-fire with the Maoist insurgents, until elections can be held at some unspecified future date. 

Geography

   Nepal

Top of Page

Location:

Southern Asia, between China and India 

Geographic coordinates:

28 00 N, 84 00 E 

Map references:

Area:

total: 140,800 sq km 
water: 4,000 sq km 
land: 136,800 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:

Terai 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 (1999) 

Natural resources:

quartz, water, timber, hydropower, scenic beauty, small deposits of lignite, copper, cobalt, iron ore 

Land use:

arable land: 20.27% 
permanent crops: 0.49% 
other: 79.24% (1998 est.) 

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, Nuclear Test Ban, Ozone Layer Protection, Tropical Timber 83, Tropical Timber 94, Wetlands 
signed, but not ratified: Marine Dumping, 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:

26,469,569 (July 2003 est.) 

Age structure:

0-14 years: 39.7% (male 5,424,396; female 5,080,171) 
15-64 years: 56.7% (male 7,692,134; female 7,320,059) 
65 years and over: 3.6% (male 468,697; female 484,112) (2003 est.) 

Median age:

total: 19.7 years 
male: 19.6 years 
female: 19.9 years (2002) 

Population growth rate:

2.26% (2003 est.) 

Birth rate:

32.46 births/1,000 population (2003 est.) 

Death rate:

9.84 deaths/1,000 population (2003 est.) 

Net migration rate:

0 migrant(s)/1,000 population (2003 est.) 

Sex ratio:

at birth: 1.05 male(s)/female 
under 15 years: 1.07 male(s)/female 
15-64 years: 1.05 male(s)/female 
65 years and over: 0.97 male(s)/female 
total population: 1.05 male(s)/female (2003 est.) 

Infant mortality rate:

total: 70.57 deaths/1,000 live births 
female: 72.27 deaths/1,000 live births (2003 est.) 
male: 68.95 deaths/1,000 live births 

Life expectancy at birth:

total population: 59 years 
male: 59.36 years 
female: 58.63 years (2003 est.) 

Total fertility rate:

4.39 children born/woman (2003 est.) 

HIV/AIDS - adult prevalence rate:

0.5% (2001 est.) 

HIV/AIDS - people living with HIV/AIDS:

58,000 (2001 est.) 

HIV/AIDS - deaths:

2,400 (2001 est.) 

Nationality:

noun: Nepalese (singular and plural) 
adjective: Nepalese 

Ethnic groups:

Brahman, Chetri, Newar, Gurung, Magar, Tamang, Rai, Limbu, Sherpa, Tharu, and others (1995) 

Religions:

Hinduism 86.2%, Buddhism 7.8%, Islam 3.8%, other 2.2% 
note: only official Hindu state in the world (1995) 

Languages:

Nepali (official; spoken by 90% of the population), about a dozen other languages and about 30 major dialects; note - many in government and business also speak English (1995) 

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 

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: Prime Minister Surya Bahadur THAPA (since 4 June 2003); note - Prime Minister CHAND resigned 30 May 2003 
cabinet: Cabinet appointed by the monarch on the recommendation of the prime minister 
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 Price DIPENDRA, is believed to have been responsible for the shootings before fatally wounding himself; immediately following the shootings and while still clinging to life, 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) 
note: Nepal's Parliament was dissolved on 22 May 2002 
election results: House of Representatives - percent of vote by party - NC 37.3%, CPN/UML 31.6%, NDP 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 
elections: House of Representatives - last held 3 and 17 May 1999 (next election NA) 

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) [Surya Bahadur THAPA, chairman]; National People's Front (Rastriya Jana Morcha) [Chitra Bahadur, chairman]; Nepal Sadbhavana (Goodwill) Party or NSP [Bhadri Prasad MANDAL, acting party president]; Nepal Workers and Peasants Party or NWPP [Narayan Man BIJUKCHHE, party chairman]; Nepali Congress or NC [Girija Prasad KOIRALA, party president; Sushil KOIRALA, general secretary]; Samyukta Janmorcha Nepal [Lila Mani POKHAREL, general secretary] 

Political pressure groups and leaders:

Maoist guerrilla-based insurgency [Pushpa Kamal DAHAL also known as Prahanda, chairman; and chief negotiator, Dr. Baburam BHATTARAI, from Communist Party of Nepal/Maoist]; numerous small, left-leaning student groups in the capital; several small, radical Nepalese antimonarchist groups 

International organization participation:

AsDB, CP, ESCAP, FAO, G-77, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM (observer), ISO (correspondent), ITU, MONUC, NAM, OPCW, SAARC, UN, UNAMSIL, UNCTAD, UNESCO, UNIDO, UNMEE, UNMIBH, UNMIK, UNMISET, UNMOP, UNMOT, UNTSO, UPU, WCO, WFTU, WHO, WIPO, WMO, WToO, WTrO (observer) 

Diplomatic representation in the US:

chief of mission: Ambassador-designate Jai Pratap RANA 
FAX: [1] (202) 667-5534 
consulate(s) general: New York 
telephone: [1] (202) 667-4550 
chancery: 2131 Leroy Place NW, Washington, DC 20008 

Diplomatic representation from the US:

chief of mission: Ambassador Michael E. MALINOWSKI 
embassy: Panipokhari, Kathmandu 
mailing address: use embassy street address 
telephone: [977] (1) 411179 
FAX: [977] (1) 419963 

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 42% of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for over 80% of the population and accounting for 40% of GDP. Industrial activity mainly involves the processing of agricultural produce including jute, sugarcane, tobacco, and grain. Textile and carpet production, accounting for about 80% of foreign exchange earnings in recent years, contracted in 2001-02 due to the overall slowdown in the world economy and pressures by Maoist insurgents on factory owners and workers. Security concerns in the wake of the Maoist conflict and the September 11, 2001 terrorist attacks in the US have led to a decrease in tourism, another key source of foreign exchange. Since 1991, the government has been moving forward with economic reforms, e.g., by reducing business licenses and registration requirements to simplify investment procedures, reducing subsidies, privatizing state industries, and laying off civil servants. 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, and its susceptibility to natural disaster. The international community's role of funding more than 60% of Nepal's development budget and more than 28% of total budgetary expenditures will likely continue as a major ingredient of growth. 

GDP:

purchasing power parity - $36 billion (2002 est.) 

GDP - real growth rate:

-0.6% (2002 est.) 

GDP - per capita:

purchasing power parity - $1,400 (2002 est.) 

GDP - composition by sector:

agriculture: 40% 
industry: 20% 
services: 40% (2002 est.) 

Population below poverty line:

42% (1995-96) 

Household income or consumption by percentage share:

lowest 10%: 3.2% 
highest 10%: 29.8% (1995-96) 

Distribution of family income - Gini index:

36.7 (FY95) 

Inflation rate (consumer prices):

2.8% (2001 est.) 

Labor force:

10 million 
note: severe lack of skilled labor (1996 est.) 

Labor force - by occupation:

agriculture 81%, services 16%, industry 3% 

Unemployment rate:

47% (2001 est.) 

Budget:

revenues: $665 million 
expenditures: $1.1 billion, including capital expenditures of $NA (FY99 est.) 

Industries:

tourism, carpet, textile; small rice, jute, sugar, and oilseed mills; cigarette; cement and brick production 

Industrial production growth rate:

8.7% (FY 99) 

Electricity - production:

1.755 billion kWh (2001) 

Electricity - production by source:

fossil fuel: 8.5% 
hydro: 91.5% 
other: 0% (2001) 
nuclear: 0% 

Electricity - consumption:

1.764 billion kWh (2001) 

Electricity - exports:

95 million kWh (2001) 

Electricity - imports:

227 million kWh (2001) 

Oil - production:

0 bbl/day (2001 est.) 

Oil - consumption:

16,000 bbl/day (2001 est.) 

Oil - exports:

NA (2001) 

Oil - imports:

NA (2001) 

Agriculture - products:

rice, corn, wheat, sugarcane, root crops; milk, water buffalo meat 

Exports:

$720 million f.o.b., but does not include unrecorded border trade with India (2001 est.) 

Exports - commodities:

carpets, clothing, leather goods, jute goods, grain 

Exports - partners:

India 48%, US 26%, Germany 11%, Japan 2%, UK 2% (FY00) 

Imports:

$1.6 billion f.o.b. (2001 est.) 

Imports - commodities:

gold, machinery and equipment, petroleum products, fertilizer 

Imports - partners:

India 41%, Singapore 11%, China 10%, UK 8%, Hong Kong 5%, Saudi Arabia 4%, Thailand 2% (FY00) 

Debt - external:

$2.55 billion (FY00) 

Economic aid - recipient:

$424 million (FY00) 

Currency:

Nepalese rupee (NPR) 

Currency code:

NPR 

Exchange rates:

Nepalese rupees per US dollar - 77.8766 (2002), 74.9492 (2001), 71.0938 (2000), 68.2394 (1999), 65.9758 (1998) 

Fiscal year:

16 July - 15 July 

Communications

   Nepal

Top of Page

Telephones - main lines in use:

236,816 (January 2000) 

Telephones - mobile cellular:

NA 

Telephone system:

general assessment: poor telephone and telegraph service; fair radiotelephone communication service and mobile cellular telephone network 
domestic: NA 
international: 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 Service Providers (ISPs):

6 (2000) 

Internet users:

60,000 (2002) 

Transportation

   Nepal

Top of Page

Railways:

total: 59 km 
narrow gauge: 59 km 0.762-m gauge (2002) 

Highways:

total: 13,223 km 
paved: 4,073 km 
unpaved: 9,150 km (April 1999) 

Waterways:

none 

Ports and harbors:

none 

Airports:

45 (2002) 

Airports - with paved runways:

total: 9 
over 3,047 m: 1 
1,524 to 2,437 m: 1 
914 to 1,523 m: 7 (2002) 

Airports - with unpaved runways:

total: 36 
1,524 to 2,437 m: 1 
914 to 1,523 m: 7 
under 914 m: 28 (2002) 

Military

   Nepal

Top of Page

Military branches:

Royal Nepalese Army (includes Royal Nepalese Army Air Service), Nepalese Police Force 

Military manpower - military age:

17 years of age (2003 est.) 

Military manpower - availability:

males age 15-49: 6,674,014 (2003 est.) 

Military manpower - fit for military service:

males age 15-49: 3,467,511 (2003 est.) 

Military manpower - reaching military age annually:

males: 303,222 (2003 est.) 

Military expenditures - dollar figure:

$57.22 million (FY02) 

Military expenditures - percent of GDP:

1.1% (FY02) 

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 

Illicit drugs:

illicit producer of cannabis for the domestic and international drug markets; transit point for opiates from Southeast Asia to the West