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. An insurgency led by Maoist extremists broke out in 1996. The ensuing ten-year civil war between insurgents and government forces witnessed the dissolution of the cabinet and parliament and assumption of absolute power by the king. Several weeks of mass protests in April 2006 were followed by several months of peace negotiations between the Maoists and government officials, and culminated in a November 2006 peace accord and the promulgation of an interim constitution. Following a nation-wide election in April 2008, the newly formed Constituent Assembly declared Nepal a federal democratic republic and abolished the monarchy at its first meeting the following month. The Constituent Assembly elected the country's first president in July. The Maoists, who received a plurality of votes in the Constituent Assembly election, formed a coalition government in August 2008.

Southern Asia, between China and India

28 00 N, 84 00 E

Asia

slightly larger than Arkansas

0 km (landlocked)

none (landlocked)

varies from cool summers and severe winters in north to subtropical summers and mild winters in south

Tarai or flat river plain of the Ganges in south, central hill region, rugged Himalayas in north

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

11,700 sq km (2003)

210.2 cu km (1999)

severe thunderstorms; flooding; landslides; drought and famine depending on the timing, intensity, and duration of the summer monsoons

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

landlocked; strategic location between China and India; contains eight of world's 10 highest peaks, including Mount Everest and Kanchenjunga - the world's tallest and third tallest - on the borders with China and India respectively

28,563,377 (July 2009 est.)

1.281% (2009 est.)

23.18 births/1,000 population (2009 est.)

6.97 deaths/1,000 population (July 2009 est.)

-3.39 migrant(s)/1,000 population (2009 est.)

2.64 children born/woman (2009 est.)

0.5% (2007 est.)

70,000 (2007 est.)

5,000 (2007 est.)

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)

Hindu 80.6%, Buddhist 10.7%, Muslim 4.2%, Kirant 3.6%, other 0.9% (2001 census)

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)

3.4% of GDP (2003)

federal democratic republic

14 zones (anchal, singular and plural); Bagmati, Bheri, Dhawalagiri, Gandaki, Janakpur, Karnali, Kosi, Lumbini, Mahakali, Mechi, Narayani, Rapti, Sagarmatha, Seti

1768 (unified by Prithvi Narayan SHAH)

Republic Day, 29 May; Democracy Day, 24 April

15 January 2007 (interim Constitution); note - in April 2008, a Constituent Assembly was elected to draft and promulgate a new constitution by May 2010

based on Hindu legal concepts and English common law; has not accepted compulsory ICJ jurisdiction

18 years of age; universal

unicameral Constituent Assembly (601 seats; 240 seats decided by direct popular vote; 335 seats by proportional representation; 26 appointed by the Cabinet (Council of Ministers))

Supreme Court or Sarbochha Adalat (the president appoints the chief justice is appointed by the monarch on recommendation of the Constitutional Council; the chief justice appoints other judges on the recommendation of the Judicial Council)

Chure Bhawar Rastriya Ekata Party [Keshav Prasad MAINALI]; Communist Party of Nepal (ML) [C.P. MAINALI]; Communist Party of Nepal (Unified) [Raj Singh SHRIS]; Communist Party of Nepal (United) [Ganesh SHAH]; Communist Party of Nepal/United Marxist-Leninist or CPN/UML [Jhalanath KHANAL]; Dalit Janajati Party [Vishwendraman PASHWAN]; Madhesi People's Rights Forum [Upendra YADAV]; National Democratic Party or NDP [Pashupati Shumsher RANA] (also called Rastriya Prajatantra Party or RPP); Nepal Loktantrik Samajbadi Dal [Upendra GACHCHHADAR]; Nepal Pariwar Dal [Vinod DANGI]; Nepal Rastriya Party [Khushilal YADAV]; Nepal Sadbhavana Party (Anandi Devi) [Shyam Sundar GUPTA]; Nepal Workers and Peasants Party or NWPP [Narayan Man BIJUKCHHE]; Nepali Congress Party or NCP [Girija Prasad KOIRALA]; Nepali Janata Dal [Bharat Prasad MAHATO]; Rastriya Janamorcha [Chitra BAHADUR K.C.]; Rastriya Janamukti Party [Malwar Singh THAPA]; Rastriya Janashakti Party or RJP [Surya Bahadur THAPA]; Rastriya Prajatantra Party Nepal [Kamal THAPA]; Sadbhavana Party (Mahato) [Rajendra MAHATO]; Samajbadi Prajatantrik Janata Party Nepal [Prem Bahadur SINGH]; Sanghiya Loktantrik Rastriya Manch [Kamal CHHARAHANG]; Terai-Madhes Democratic Party [Mahantha THAKUR]; United Communist Party of Nepal (Maoist) [Pushpa Kamal DAHAL, also known as PRACHANDA, chairman]

ADB, BIMSTEC, CP, FAO, G-77, IBRD, ICAO, ICC, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO (correspondent), ITSO, ITU, ITUC, MIGA, MINURCAT, MINUSTAH, MONUC, NAM, OPCW, SAARC, SACEP, UN, UNAMID, UNCTAD, UNESCO, UNIDO, UNIFIL, UNMIL, UNMIS, UNMIT, UNOCI, UNOMIG, UNTSO, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO

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

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 about one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. Bumper crops, better security, improved transportation, and increased tourism pushed growth past 5% in 2008, after growth had hovered around 3% - barely above the rate of population growth - for the previous three years. The deteriorating world economy in 2009 will challenge tourism and remittance growth, 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 and landlocked geographic location, its civil strife and labor unrest, and its susceptibility to natural disaster.

$31.09 billion (2008 est.)

$29.69 billion (2007)

$28.77 billion (2006)

$12.64 billion (2008 est.)

5.6% (2008 est.)

3.2% (2007 est.)

3.7% (2006 est.)

$1,100 (2008 est.)

$1,100 (2007 est.)

$1,000 (2006 est.)

14.6 million

46% (2008 est.)

42% (2004 est.)

30.9% (2004)

47.2 (2008)

7.7% (2008 est.)

6.4% (2007 est.)

6.5% (31 December 2008)

6.25% (31 December 2007)

NA% (31 December 2008)

$2.204 billion (16 July 2008)

$2.184 billion (31 December 2007)

$4.872 billion (16 July 2008)

$4.745 billion (31 December 2007)

$6.027 billion (16 July 2008)

$5.636 billion (31 December 2007)

$5.5 billion (31 December 2008)

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

tourism, carpets, textiles; small rice, jute, sugar, and oilseed mills; cigarettes, cement and brick production

1.8% (FY08)

2.703 billion kWh (2007 est.)

2.276 billion kWh (2006 est.)

165 million kWh (2007 est.)

560 million kWh (2008 est.)

0 bbl/day (2008 est.)

12,500 bbl/day (2008 est.)

0 bbl/day (2008)

12,500 bbl/day (2008 est.)

0 bbl (1 January 2006 est.)

0 cu m (2008 est.)

0 cu m (2008 est.)

0 cu m (2008 est.)

0 cu m (2008 est.)

0 cu m (1 January 2008 est.)

$241 million (2008)

$868 million f.o.b.; note - does not include unrecorded border trade with India (2008)

clothing, carpets, leather goods, jute goods, pulses, grain

India 69.3%, US 8.8%, Germany 4.1% (2007)

$3.229 billion f.o.b. (2008)

petroleum products, machinery and equipment, electrical goods

India 58.9%, China 13.6%, Japan 1.6% (2007)

$3.285 billion (2008)

$NA

$NA

Nepalese rupees (NPR) per US dollar - 65.21 (2008), 70.35 (2007), 72.446 (2006), 72.16 (2005), 73.674 (2004)

766,400 (2007)

1.157 million (2006)

AM 6, FM 80, shortwave 4 (2008)

9 (plus 9 repeaters) (2008)

.np

42,219 (2008)

337,100 (2007)

47 (2008)

Nepal Army (2009)

18 years of age for voluntary military service; 15 years of age for military training; no conscription (2008)

1.6% of GDP (2006)

joint border commission continues to work on contested sections of boundary with India, including the 400 square kilometer dispute over the source of the Kalapani River; India has instituted a stricter border regime to restrict transit of Maoist insurgents and illegal cross-border activities; approximately 106,000 Bhutanese Lhotshampas (Hindus) have been confined in refugee camps in southeastern Nepal since 1990

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