Nepal: background information

History

Nepal is a landlocked kingdom bordering Tibet to the north and northwest, and India to the west, south and east.

Credit: WaterAid / Josh Hobbins

For centuries Nepal was a monarchy ruled by hereditary premiers. This changed in 1951 when a cabinet system of government was instituted. Further reforms established a multiparty democracy within the framework of a constitutional monarchy in 1990.

The Maoist-inspired Nepalese Communist Party pulled out of constitutional politics in 1996 and launched an armed struggle against the parliamentary regime.

The guerrillas attracted large-scale support and with over 10,000 personnel under arms led an insurgency which officially ended with a ceasefire in January 2003.

In June 2001, the monarchy was almost destroyed when ten members of the Royal family, including the King, were massacred in a family dispute by the heir apparent. The senior remaining Royal, Gyanenda, assumed the throne, but lacked the popularity of his predecessor amongst ordinary Nepalese.

The regime currently faces many problems, with continued struggles from the Maoists, a squabbling parliament and a very weak economy.

Geography and economy

Nepal is a landlocked kingdom bordering Tibet to the north and northwest, and India to the west, south and east. Most of the land lies on the southern slope of the Himalayas, extending down from the highest peaks through hill country to the upper edge of the Ganges Plain. Wildlife includes tigers, leopards, elephants, buffalo, deer and rhinos.

The official language is Nepali. Other languages spoken include Maithili and Bhojpuri, whilst English is spoken in business and travel contexts. The population is mainly Hindu and Buddhist with a small Muslim minority.

The economy is mainly based on agriculture, accounting for the livelihood for over 80% of the population 41% of GDP. Most industrial activity involves processing of agricultural produce including jute, sugarcane, tobacco, and grain.

Credit: WaterAid / Caroline Penn

The economically important textile and carpet production contracted significantly in 2001 due to the overall slowdown in the world economy and pressures by Maoist insurgents on factory owners and workers.

Tourism, a second key source of foreign exchange, has also declined in recent years as a result of Maoist activities, the 2001 massacre of many members of the royal family, and the September 11 terrorist attacks in the US.