Nepal

§1. Nepal Introduction

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.

§2. Nepal Geography

Location:
  Southern Asia, between China and India

Geographic coordinates:
  28 00 N, 84 00 E

Map references:
  Asia

Area:
  total: 140,800 km²
  land: 136,800 km²
  water: 4,000 km²

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 km² (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

§3. Nepal People

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.)

§4. Nepal Government

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

§5. Nepal Economy

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 m³ (2003 est.)

Natural gas - consumption:
  0 m³ (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

§6. Nepal Communications

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)

§7. Nepal Transportation

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)

§8. Nepal Military

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.)

§9. Nepal Transnational Issues

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


<Factbook 2006>
