[edit] EconomyAgriculture sustains 76% of the population and accounts for about 40% of the GDP; services comprise 41%, and industry 22%. Nepal remains isolated from the world’s major land, air and sea transport routes though air traffic is frequent. Hilly and mountainous terrain in the northern two-thirds of the country has made the building of roads and other infrastructure difficult and expensive. There were just over 8,500 km of paved roads, and one 59 km railway line in the south in 2003. There is only one reliable road route from India to the Kathmandu Valley. The only practical seaport of entry for goods bound for Kathmandu is Kolkata in India. Internally, the poor state of development of the road system (22 of 75 administrative districts lack road links) makes volume distribution unrealistic.
A Rs.500 banknote of The Republic of Nepal. (Yet the watermark on the right contains picture of King Gyanendra, later admitted clerical error by state owned Nepal Rastra Bank.[10])
Aviation is in a better state, with 48 airports, ten of them with paved runways. There is less than one telephone per 19 people; landline telephone services are not adequate nationwide but concentrated in cities and district headquarters; mobile telephony is in a reasonable state in most parts of the country with increased accessibility and affordability. There were around 175,000 Internet connections in 2005, but after the imposition of the "state of emergency", intermittent losses of service were reported. Uninterrupted Internet connections have resumed after the brief period of confusion as Nepal's second major people's revolution took place to overthrow the King's absolute power.[11] Its landlocked location and[12] technological backwardness and the long-running civil war have also prevented Nepal from fully developing its economy. The country receives foreign aid from India, Japan, the United Kingdom, the United States, the European Union, China, Switzerland, and Scandinavian countries. The government's budget is about US$1.153 billion, with expenditures of $1.789bn (FY05/06). The inflation rate has dropped to 2.9% after a period of higher inflation during the 1990s. The Nepali Rupee has been tied to the Indian Rupee at an exchange rate of 1.6 for many years. Since the loosening of exchange rate controls in the early 1990s, the black market for foreign exchange has all but disappeared. A long-standing economic agreement underpins a close relationship with India. The distribution of wealth among the Nepali is consistent with that in many developed and developing countries: the highest 10% of households control 39.1% of the national wealth and the lowest 10% control only 2.6%. Nepal's workforce of about 10 million suffers from a severe shortage of skilled labour. Agriculture employs 81% of the workforce, services 16% and manufacturing/craft-based industry 3%. Agricultural produce——mostly grown in the Terai region bordering India——includes rice, corn, wheat, sugarcane, root crops, milk, and water buffalo meat. Industry mainly involves the processing of agricultural produce, including jute, sugarcane, tobacco, and grain. The spectacular landscape and deep, exotic culture of Nepal represents considerable potential for tourism, but growth in this export industry has been stifled by recent political events. The rate of unemployment and underemployment approaches half of the working-age population. Thus many Nepali citizens move to India in search of work, the Gulf countries and Malaysia being new sources of work. Poverty is acute.[13] Nepal receives US$50 million a year through the Gurkha soldiers who serve in the Indian and British armies and are highly esteemed for their skill and bravery. The total remittance value is worth around 1 billion USD, including money sent from Persian Gulf and Malaysia, who combined employ around 700,000 Nepali citizens. Nepal's GDP for the year 2005 is estimated at just over US$39 billion (adjusted to Purchasing Power Parity), making it the 83rd-largest economy in the world. Per-capita income is less than US$ 300. Nepal's exports of mainly carpets, clothing, leather goods, jute goods and grain total $822 million. Import commodities of mainly gold, machinery and equipment, petroleum products and fertilizer total US$2 bn. India (53.7%), the US (17.4%), and Germany (7.1%) are its main export partners. Nepal's import partners include India (47.5%), the United Arab Emirates (11.2%), China (10.7%), Saudi Arabia (4.9%), and Singapore (4%). [edit] Government and politicsUntil 1990, Nepal was an absolute monarchy running under the executive control of the king. Faced with a people's movement against the absolute monarchy, King Birendra, in 1990, agreed to large-scale political reforms by creating a parliamentary monarchy with the king as the head of state and a prime minister as the head of the government. Nepal's legislature was bicameral consisting of a House of Representatives called the Pratinidhi Sawa and a National Council called the Rastriya Sawa. The House of Representatives consists of 205 members directly elected by the people. The National Council had sixty members, ten nominated by the king, thirty-five elected by the House of Representatives and the remaining fifteen elected by an electoral college made up of chairs of villages and towns. The legislature had a five-year term, but was dissolvable by the king before its term could end. All Nepali citizens 18 years and older became eligible to vote. The executive comprised the King and the Council of Ministers (the Cabinet). The leader of the coalition or party securing the maximum seats in an election was appointed as the Prime Minister. The Cabinet was appointed by the king on the recommendation of the Prime Minister. Governments in Nepal have tended to be highly unstable; no government has survived for more than two years since 1991, either through internal collapse or parliamentary dissolution by the monarch on the recommendation of prime minister according to the constitution. The movement in April, 2006, brought about a change in the nation: an interim constitution was promulgated, with the King giving up power, and an interim House of Representatives was formed with Maoist members after the new government held peace talks with the Maoist rebels. The number of seats were also increased to 330. In April, 2007, the Communist Party of Nepal (Maoist) joined the interim government of Nepal. On December 28, 2007, the interim parliament passed a bill that would make Nepal a federal republic, with the Prime Minister becoming head of state. The bill is yet to be passed by the Constituent Assembly.[14] [edit] Military and foreign affairsNepal's military consists of the Nepalese Army which includes the Nepalese Army Air Service, (the air force unit under it).Nepalese Police Force is the civilan police and the Armed Police Force Nepal[15] is the paramilitary force. Service is voluntary and the minimum age for enlistment is 18 years. Nepal spends $99.2 million (2004) on its military—1.5% of its GDP. Most of the equipment and arms are supplied by India. Nepal has close ties with both of its neighbours, India and China. In accordance with a long standing treaty, Indian and Nepalese citizens may travel to each others' countries without a passport or visa. Nepalese citizens may work in India without legal restriction. Although Nepal and India typically have close ties, from time to time Nepal becomes caught up in the problematic Sino-Indian relationship. India considers Nepal as part of its realm of influence, and views Chinese aid with concern. In 2005, after King Gyanendra took over, Nepalese relations with India, the US, and the UK worsened. These three foreign countries were vociferous opponents to the crackdown on civil liberties in Nepal. [edit] Demographics
The Population Density map of Nepal.
Perched on the southern slopes of the Himalayan Mountains, State of Nepal is as ethnically diverse as its terrain of fertile plains, broad valleys, and the highest mountain peaks in the world. The Nepalese are descendants of three major migrations from India, Tibet, and North Burma and Yunnan via Assam. Among the earliest inhabitants were the Kirat of east mid-region, Newar of the Kathmandu Valley and aboriginal Tharu in the southern Terai region. The ancestors of the Brahman and Chetri caste groups came from India Kumaon, Garwal and Kashmir, while other ethnic groups trace their origins to North Burma and Yunnan and Tibet, e.g. the Gurung and Magar in the west, Rai and Limbu in the east, and Sherpa and Bhotia in the north. In the Terai, a part of the Ganges Basin with 20% of the land, much of the population is physically and culturally similar to the Indo-Aryans of northern India. Indo-Aryan and East Asian looking mixed people live in the hill region. The mountainous highlands are sparsely populated. Kathmandu Valley, in the middle hill region, constitutes a small fraction of the nation's area but is the most densely populated, with almost 5% of the population. Nepal is a multilingual, multireligious and multiethnic society. These data are largely derived from Nepal's 2001 census results published in the Nepal Population Report 2002.
Languages Spoken in Nepal.
Differences between Hindus and Buddhists have been in general very subtle and academic in nature due to the intermingling of Hindu and Buddhist beliefs. Both share common temples and worship common deities and many of Nepal's Hindus could also be regarded as Buddhists and vice versa. Gurkhas are from Nepal. Buddhism was relatively more common among the Newar. Among the other natives of Nepal, those most influenced by Hinduism were the Magar, Sunwar, Limbu and Rai. Hindu influence is less prominent among the Gurung, Bhutia, and Thakali groups, who employ Buddhist monks for their religious ceremonies.[11][6] The northern mountains are sparsely populated. A majority of the population live in the central highland despite the migration of a significant section of the population to the fertile Terai belt in recent years. Kathmandu, with a population of around 800,000 (Metropolitan area: 1,5 million) is the largest city in the country. [edit] CultureNepalese culture is diverse and it reflects people of different ethnic origins. A typical Nepalese meal is dal-bhat, a kind of a lentil soup served with rice, vegetables and pickles. However, the Newar community has its own unique cuisine. It consists of non-vegetarian and vegetarian items as well as alcoholic and non-alcoholic beverages. Mustard oil and a host of spices, such as cumin, sesame seeds, turmeric, garlic, ginger, methi (fenugreek), bay leaves, cloves, cinnamon, pepper, chili, mustard seeds, vinegar, etc. are used in cooking. The cuisine served in the festivals is considered as the best diet cuisine. Folklore is an integral part of Nepalese society. Traditional stories are rooted in the reality of day-to-day life—tales of love, affection, battles, and demons and ghosts; they reflect and explain local lifestyles, cultures and belief systems. Many Nepalese folktales are enacted in dance and music. The Newar community is very rich in cultural diversity. Most of the festivals observed in the Kathmandu valley are in the Newar community. The Newars are also well known for their music and dance. The Newar Music consists mainly of percussion instruments. Wind instruments such as flutes and similar instruments are also used. String instruments are very rare. There are songs pertaining to particular seasons and festivals. Paahan chare music is most probably the fastest played music whereas the Dapa the slowest. The dhimay music are the loudest ones. There are certain musical instruments such as Dhimay and Bhusya which are played as instrumental only and are not accompanied with songs. The Newar Dance can be broadly classified as masked dance and dance without the use of masks. The most representative of Newari dance is Lakhey dance. Almost all the settlements of Newar have Lakhey dance at least once a year. Almost all of these Lakhey dances are held in the Goonlaa month. So, they are called Goonlaa Lakhey. However, the most famous Lakhey dance is the Majipa Lakhey dance. It is performed by the Ranjitkars of Kathmandu. The dance takes place for a week during the week containing the full moon of Yenlaa month. The Lakhey are considered as the saviors of children. Likewise, in hills people enjoy their own kind of music, playing saarangi (string instrument), madal and flute. They also have many popular folk songs like lok geet and lok dohari. The Nepali year begins in mid-April and is divided into 12 months. Saturday is the official weekly holiday. Main holidays include the National Day (birthday of the king) December 28, Prithvi Jayanti, (January 11), and Martyr's Day (February 18) and a mix of Hindu and Buddhist festivals such as dashain in autumn, and tihar late autumn. During tihar, the Newar community celebrates its New Year as per local calendar (Nepal Sambat). Most houses in rural lowland of Nepal are made up of a tight bamboo framework with mud and cow-dung walls. These dwellings remain cool in summers and retain warmth in winters. Dwellings in higher latitudes are mostly stone masonary walls with slate and thatch roof and timber based.
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