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, but resigned in May 2009 after the president overruled a decision to fire the chief of the army staff. The Communist Party of Nepal-United Marxist-Leninist and the Nepali Congress party then formed a new coalition government with several smaller parties. The prime minister's resignation in June 2010 ushered in seven months of political gridlock until Jhala Nath KHANAL was elected as replacement in February 2011. His pressing tasks are to conclude the drafting of a new constitution by the late May 2011 deadline and to determine the future of the former Maoist combatants.

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

11,680 sq km (2008)

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

29,391,883 (July 2011 est.)

1.596% (2011 est.)

22.17 births/1,000 population (2011 est.)

6.81 deaths/1,000 population (July 2011 est.)

0.61 migrant(s)/1,000 population (2011 est.)

KATHMANDU (capital) 990,000 (2009)

2.47 children born/woman (2011 est.)

0.4% (2009 est.)

64,000 (2009 est.)

4,700 (2009 est.)

urban: 93% of population

rural: 87% of population

total: 88% of population

urban: 7% of population

rural: 13% of population

total: 12% of population (2008)

urban: 51% of population

rural: 27% of population

total: 31% of population

urban: 49% of population

rural: 73% of population

total: 69% of population (2008)

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 (official) 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)

4.6% of GDP (2009)

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, but the deadline has been extended to May 2011

English common law and Hindu legal concepts

has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt

18 years of age; universal

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

Supreme Court or Sarbochha Adalat (the president appoints the chief justice 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-Maoist (inactive); Communist Party of Nepal-Marxist Leninist or CPN-ML [C.P. MAINALI]; Communist Party of Nepal-Unified [Raj Singh SHRIS]; Communist Party of Nepal-United [Chandra Dev JOSHI]; Communist Party of Nepal-Unified Marxist-Leninist or CPN-UML [Jhalanath KHANAL]; Dalit Janajati Party [Vishwendraman PASHWAN]; Federal Democratic National Forum; Madhesi People's Rights Forum-Democratic [Bijay Kumar GACHHADAR]; Madhesi People's Rights Forum-Nepal [Upendra YADAV]; Nepal Loktantrik Samajbadi Dal [Upendra GACHCHHADAR]; Nepal Pariwar Dal [Eknath DHAKAL]; Nepal Sadbhavana Party-Anandi Devi [Sarita GIRI]; Nepal Workers and Peasants Party or [Narayan Man BIJUKCHHE]; Nepali Congress or NC [Sushil KOIRALA]; Nepali Janata Dal [Harish Chandra SHA]; Newa Rastriya Party [Keshav Man SHAKYA]; Rastriya Janamorcha [Chitra Bahadur K.C.]; Rastriya Janamukti Party [Malwar Singh THAPA]; Rastriya Janashakti Party or RJP [Surya Bahadur THAPA]; Rastriya Prajantantra Party [Pashupati Shumsher RANA]; Rastriya Prajantantra Party Nepal [Kamal THAPA]; Sadbhavana Party [Rajendra MAHATO]; Samajbadi Prajatantrik Janata Party Nepal [Prem Bahadur SINGH]; Terai Madhes Democratic Party [Mahantha THAKUR]; Unified Communist Party of Nepal (Maoist) [Pushpa Kamal DAHAL, also known as PRACHANDA]

ADB, BIMSTEC, CP, FAO, G-77, IAEA, IBRD, ICAO, ICC, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO (correspondent), ITSO, ITU, ITUC, MIGA, MINURSO, MINUSTAH, MONUSCO, NAM, OPCW, SAARC, SACEP, UN, UNAMID, UNCTAD, UNESCO, UNIDO, UNIFIL, UNMIL, UNMIS, UNMIT, UNOCI, UNTSO, UNWTO, UPU, 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 displays a white 12-pointed sun; the color red represents the rhododendron (Nepal's national flower) and is a sign of victory and bravery, the blue border signifies peace and harmony; the two right triangles are a combination of two single pennons (pennants) that originally symbolized the Himalaya Mountains while their charges represented the families of the king (upper) and the prime minister, but today they are understood to denote Hinduism and Buddhism, the country's two main religions; the moon represents the serenity of the Nepalese people and the shade and cool weather in the Himalayas, while the sun depicts the heat and higher temperatures of the lower parts of Nepal; the moon and the sun are also said to express the hope that the nation will endure as long as these heavenly bodies

Nepal is among the poorest and least developed countries in the world, with almost one-quarter 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. Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of feasible capacity, but political instability hampers foreign investment. Additional challenges to Nepal's growth include its landlocked geographic location, civil strife and labor unrest, and its susceptibility to natural disaster.

$35.81 billion (2010 est.)

$34.25 billion (2009 est.)

$32.66 billion (2008 est.)

$15.84 billion (2010 est.)

4.6% (2010 est.)

4.9% (2009 est.)

6.1% (2008 est.)

$1,200 (2010 est.)

$1,200 (2009 est.)

$1,200 (2008 est.)

18 million

46% (2008 est.)

42% (2004 est.)

24.7% (2008)

47.2 (2008)

36.7 (1996)

8.6% (September 2010 est.)

13.2% (September 2009 est.)

6.5% (31 December 2010)

6.5% (31 December 2009)

8% (31 December 2009 est.)

8% (31 December 2008 est.)

$3.03 billion (July 2010)

$2.712 billion (July 2009)

$9 billion (July 2010)

$7.923 billion (July 2009)

$6.11 billion (31 December 2009 est.)

$5.556 billion (31 December 2008)

$5.2 billion (31 December 2010 est.)

$5.485 billion (31 December 2009)

$4.894 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)

2.6 billion kWh (2009 est.)

2.243 billion kWh (2007 est.)

0 kWh (2010 est.)

213 million kWh (2008 est.)

0 bbl/day (2010 est.)

18,000 bbl/day (2009 est.)

0 bbl/day (2010 est.)

16,920 bbl/day (2007 est.)

0 bbl (1 January 2010 est.)

0 cu m (2010 est.)

0 cu m (2010 est.)

0 cu m (2010 est.)

0 cu m (2010 est.)

0 cu m (1 January 2010 est.)

$-449 million (2010)

$537 million (2009)

$849 million (2009)

$907 million (2008)

clothing, pulses, carpets, textiles, juice, pashima, jute goods

India 65.6%, US 8%, Bangladesh 6.04%, Germany 5% (2009)

$5.26 billion (2009)

$4.1 billion (2008)

petroleum products, machinery and equipment, gold, electrical goods, medicine

India 57%, China 13% (2009)

$4.5 billion (2009)

$3.285 billion (2008)

$NA

$NA

Nepalese rupees (NPR) per US dollar -

72.56 (2010)

77.44 (2009)

65.21 (2008)

70.35 (2007)

72.446 (2006)

820,500 (2009)

7.618 million (2009)

state operates 2 television stations as well as national and regional radio stations; more than 60 independent radio stations and a small number of independent television stations (2007)

.np

43,928 (2010)

577,800 (2009)

47 (2010)

Nepal Army (2010)

18 years of age for voluntary military service; 15 years of age for military training; no conscription (2011)

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