English Transcript

Last Updated 30/01/2008 14:04:00

Introduction
Nepal is a landlocked country and is home to the world's highest mountain, Mount Everest - a popular tourist destination Nepal is also one of the least developed nations in the world and is heavily reliant on foreign aid The country has been ruled for most of its history by a royal family However, in 2006 the parliament voted unanimously to curtail the king's powers In the same year, a peace accord was signed to end a 10-year Maoist insurgency that left more than 12,000 people dead

Full country name: Kingdom of Nepal
Population: 277 million
Languages: Nepali and about 70 local languages and dialects
Religion: Hinduism (official), Buddhism
Ethnic diversity: Gurungs, Magars, Rais, Limbus, Sunwars, Sherpas, Manangpas, Lopas, Newars Tharus, Yadavas, Satar, Rajvanshis, Dhimals, Brahmins, Chhetris and Thakuris
Life expectancy: 60 years (women), 60 years (men)
Literacy: 37 per cent
Capital: Kathmandu
Total land area: 147,000 square kilometres
Border countries: India, China
Political Status: Parliamentary democracy and constitutional monarchy
Head of State: King Gyanendra Bir Bikram Shah Dev
Head of Government: Prime Minister Girija Prasad Koirala
Currency: Nepali rupee
Major trading partners: India, United States, Germany
________________________________________
Issues
• Nepal relies heavily on aid, with about 40 per cent of the population living below the poverty line The nation's already fragile economy has been hit hard by a 10-year Maoist rebellion
• The Maoists and the government signed a peace deal in November 2006 aimed at ending the conflict It is hoped the agreement will improve stability in Nepal by allowing former rebels into the political mainstream
• Pollution from cars, a growing population, increased housing and deforestation are all creating environmental problems
• Nepal has strained relations with its tiny neighbour, Bhutan, over the presence in Nepal of about 100,000 Bhutanese refugees of Nepali origin The two countries have held many rounds of talks seeking a resolution to the issue
________________________________________
History
The land of Nepal has an ancient culture, but it was not until the late 18th century that the kingdom of Nepal was created, when King Prithvi Narayan Shah united a group of warring Himalayan principalities

In the early 1800s Nepal doubled its size by conquering parts of its southern neighbour, India The move led to a two-year confrontation (1814-1816) with the British Nepal was defeated and surrendered one third of its territory Following the war Nepal maintained a policy of isolationism, closing its borders to all foreigners until 1951

In 1946, General Jung Bahadur Rana declared himself prime minister and made the office hereditary He began the Rana government, which lasted until 1950, when the newly formed Nepali Congress Party led an armed revolt to end the dictatorship The monarchy was restored to absolute power in 1951

Nepal became the focus of international attention in 1953 when New Zealander Edmund Hillary and Nepal's Sherpa Tenzig Norgay became the first climbers to reach the summit of Everest, the world's highest mountain

Violence flared in 1990 as people began demanding reforms, including democratic government, a multi-party system, and a constitutional monarchy Fifty people were killed in the protests The king responded by agreeing to relinquish power, draft a new constitution and hold multi-party democratic elections

The Nepali Congress Party won the first elections in May 1991 The new government introduced economic reforms which had an inflationary effect, leading to sporadic civil and political unrest Shifting political alliances led to regular parliamentary dissolutions, early elections and frequent changes of government

Nepal's political instability was compounded in February 1996, when the leaders of the Maoist United People's Front began a violent insurgency with the aim of overthrowing the monarchy

Nepal was thrown into turmoil in June 2001 when several members of the royal family, including King Birendra, were killed in a gun attack attributed to a drunken Crown Prince Dipendra, who then turned his gun upon himself The crown prince died shortly after the attack and the king's brother, Gyanendra, became king

Later in 2001, the prime minister, Sher Bahadur Deuba, brokered a ceasefire with the Maoists However, the rebels broke the truce, leading the king to declare a state of emergency and involve the military in the conflict for the first time

Political infighting ensued between members of Mr Deuba's ruling Nepali Congress Party over whether to extend the state of emergency, prompting the king to dissolve parliament on May 22, 2002 In October the king sacked Mr Deuba and installed a new government led by the Rastriya Prajatantra Party

A ceasefire agreement with the Maoists was brokered by the government in January 2003 but it collapsed seven months later, bringing a return to violence

King Gyanendra stepped into Nepali politics again in February 2005, when he dismissed the prime minister and his government, declared a state of emergency and assumed direct power, citing the need to defeat the Maoist rebels

In early 2006, the main opposition parties united with the Maoists to call for the restoration of democracy Weeks of strikes and protests followed, and by April the king agreed to reinstate parliament

Later that month, veteran politician Girija Prasad Koirala was sworn in as prime minister

The parliament voted unanimously to curtail the king's political powers in May - ending his control over the army, forcing him to pay taxes and leaving him open to questions in parliament and the courts

The government and Maoist rebels signed landmark peace accord on November 20, 2006, marking an end to the civil war that claimed at least 12,500 lives

An interim parliament was established in January 2007, which includes rebel leaders
________________________________________
Government
Democratic politics was introduced to Nepal in 1991, when the king relinquished power following public protests A new constitution was drafted and multi-party elections were held in May of that year

Nepal has two houses of parliament: the House of Representatives and the National Council

There are seven major political parties including the Nepali Congress Party, the Nepal Democratic Party, the Nepal Communist Party and the Nepal Workers and Peasants Party

In 2002, King Gyanendra dismissed the popularly elected government for "incompetence" and assumed executive powers for himself

He seized power again in February 2005, claiming the government was not doing enough to defeat the Maoist rebellion Following weeks of protests organised by the Maoists and the main opposition parties, the king restored democracy in April 2006 Weeks later the parliament voted unanimously to curtail the king's political powers

In January, an interim parliament was set up to include the rebels, who signed a peace deal with the government two months earlier

The new assembly will oversee elections expected in June 2007 to a body that will rewrite Nepal's constitution permanently and decide the monarch's fate
________________________________________
Economy
Nepal is one of the poorest countries in the world, with an estimated per capita income of approximately $US250 Poverty and malnutrition are widespread and the incidence of disease is high

Over 80 per cent of the population live in rural areas and rely on subsistence agriculture for survival Main agricultural crops include jute, sugarcane, tobacco and grain Despite this, agriculture's contribution to Nepal's overall economic performance halved from 72 per cent in 1974 to 37 per cent in 2002 Agricultural production is hampered by unfavourable weather, environmental degradation, inadequate rural infrastructure, and land ownership/tenancy problems

At the same time, tourism has grown, as has trade, especially in textiles and carpets However, the Maoist insurgency has greatly reduced tourist numbers in the past few years

The government has taken steps to restructure the economy by introducing tax reform; privatising public enterprises; dismantling trade barriers; liberalising the foreign exchange system; and encouraging industry growth, particularly in export-oriented industries such as carpets and clothing

Nepal's entry into the World Trade Organisation (WTO) was approved in September 2003