In November 2006, the Nepal government and Maoist insurgents signed a landmark peace agreement that ended the 12-year conflict.  For the first time in years, the people of Nepal have reason to be optimistic that peace will return and democratic transition will take root. USAID shares that optimism, but implementation of the peace agreement and restoration of representative government in rural areas remain significant challenges.

Constrained severely by rugged terrain and limited resources, this small, landlocked country remains one of the poorest in the world. The protracted conflict has shattered the Nepalese economy and exacerbated poverty. Nepal is currently ranked the third lowest country in Asia on the Human Development Index with some of the worst poverty and health statistics regionally and globally.  

The Nepali government has expressed a strong commitment to addressing these economic and social development issues, and the US assistance program is aimed at supporting this commitment. Along with addressing root causes of the conflict such as social and gender inequality and poverty, US assistance will play a crucial role in supporting the transition to peace and in building strong and representative government. USAID/Nepal pursues a “peaceful, prosperous and democratic Nepal” as the goal of its development program.

Last updated: May 4, 2007