Nepal is an Alpine Himalayan country. It has a relatively large population for a mountainous country of the region. About 39 % of the total population lived below the poverty line of $3.20 a day in late 2019. Three decades of Political turmoil and a low-key insurgency means that the country’s economic performance was below the modest levels. Still, it is trying to enhance its economic performance and improve its social indicators.
Underdevelopment is the key challenge confronting the South Asian region. All progressives of the region have to address the problem of underdevelopment. Peace, pluralism and tolerance are the essential prerequisites for development. This page discusses the various developmental challenges confronting Nepal. It explores the various potential strategies Nepal can employ to get a wholesome developmental breakthrough in the near future. We appreciate your participation inour debates. Feel free to join our discussion by posting relevant articles, research papers, podcasts and video clips on the subject on this website.
Nepal: An Introductory Profile
Introduction
In 1951, the Nepali monarch ended the century-old system of rule by hereditary premiers and instituted a cabinet system that brought political parties into the government. That arrangement lasted until 1960, when political parties were again banned, but was reinstated in 1990 with the establishment of a multiparty democracy within the framework of a constitutional monarchy. An insurgency led by Maoists broke out in 1996. The ensuing 10-year civil war between Maoist and government forces witnessed the dissolution of the cabinet and parliament and the re-assumption of absolute power by the king in 2002. 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 late 2006 peace accord and the 2007 promulgation of an interim constitution. Following a nationwide Constituent Assembly (CA) election in 2008, the newly formed CA declared Nepal a federal democratic republic, abolished the monarchy, and elected the country’s first president. After the CA failed to draft a constitution by a May 2012 deadline set by the Supreme Court, then-Prime Minister Baburam BHATTARAI dissolved the CA. Months of negotiations ensued until March 2013 when the major political parties agreed to create an interim government headed by then-Chief Justice Khil Raj REGMI with a mandate to hold elections for a new CA. Elections were held in November 2013, in which the Nepali Congress won the largest share of seats in the CA and in February 2014 formed a coalition government with the second place Communist Party of Nepal-Unified Marxist-Leninist and with Nepali Congress President Sushil KOIRALA as prime minister. Nepal’s new constitution came into effect in September 2015.
Geography and Location
Area: total: 147,181 sq km
land: 143,351 sq km
water: 3,830 sq km
country comparison to the world: 94
Land boundaries: total: 3,159 km
border countries (2): China 1,389 km, India 1,770 km
Coastline: 0 km (landlocked)
Climate: varies from cool summers and severe winters in north to subtropical summers and mild winters in south
Terrain: Tarai or flat river plain of the Ganges in south; central hill region with rugged Himalayas in north
Elevation: mean elevation: 2,565 m
elevation extremes: lowest point: Kanchan Kalan 70 m
highest point: Mount Everest 8,850 m (highest peak in Asia and highest point on earth above sea level)
Natural resources: quartz, water, timber, hydropower, scenic beauty, small deposits of lignite, copper, cobalt, iron ore
Land use: agricultural land: 28.8%
arable land: 15.1%
permanent crops: 1.2%
permanent pasture: 12.5%
forest: 25.4%
other: 45.8% (2011 est.)
Irrigated land: 13,320 sq km (2012)
Total renewable water resources: 210.2 cu km (2011)
Freshwater withdrawal (domestic/industrial/agricultural): total: 9.5 cu km/yr (2%/0%/98%)
per capita: 334.7 cu m/yr (2006)
Natural hazards: severe thunderstorm s; flooding; landslides; drought and famine depending on the timing, intensity, and duration of the summer monsoons
Environment—current issues: deforestation (overuse of wood for fuel and lack of alternatives); contam inated water (with human and anim al wastes, agricultural runoff, and industrial effluents); wildlife conservation; vehicular emissions
Environment—international agreements: party to:Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Tropical Timber 83, Tropical Timber 94, Wetlands
signed, but not ratified: M arine Life Conservation
Geography—note: 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 mountains—on the borders with China and India respectively
People
Ethnic groups: Chhettri 16.6%, Brahman-Hill 12.2%, Magar 7.1%, Tharu 6.6%, Tamang 5.8%, Newar 5%, Kami 4.8%, Muslim 4.4%, Yadav 4%, Rai 2.3%, Gurung 2%, Damai/Dholii 1.8%, Thakuri 1.6%, Limbu 1.5%, Sarki 1.4%, Teli 1.4%, Chamar/Harijan/Ram 1.3%, Koiri/Kushwaha 1.2%, other 19%
note: 125 caste/ethnic groups were reported in the 2011 national census (2011 est.)
Languages: Nepali (official) 44.6%, Maithali 11.7%, Bhojpuri 6%, Tharu 5.8%, Tamang 5.1%, Newar 3.2%, Magar 3%, Bajjika 3%, Urdu 2.6%, Avadhi 1.9%, Limbu 1.3%, Gurung 1.2%, other 10.4%, unspecified 0.2%
note: 123 languages reported as mother tongue in 2011 national census; many in government and business also speak English (2011 est.)
Religions: Hindu 81.3%, Buddhist 9%, Muslim 4.4%, Kirant 3.1%, Christian 1.4%, other 0.5%, unspecifed 0.2% (2011 est.)
Population: 31,551,305 (July 2015 est.)
country comparison to the world: 42
Age structure: 0–14 years: 30.72% (male 4,937,627/female 4,755,972)
15–24 years: 22.51% (male 3,580,083/female 3,522,047)
25–54 years: 36.5% (male 5,552,621/female 5,964,599)
55–64 years: 5.67% (male 874,350/female 913,683)
65 years and over: 4.6% (male 668,760/female 781,563) (2015
Dependency ratios: total dependency ratio: 61.8%
youth dependency ratio: 52.9%
elderly dependency ratio: 9%
potential support ratio: 11.1% (2015 est.)
Median age: total: 23.4 years
male: 22.8 years
female:24 years (2015 est.)
country comparison to the world: 165
Population growth rate: 1.79% (2015 est.)
country comparison to the world: 64
Birth rate: 20.64 births/1,000 population (2015 est.)
country comparison to the world: 80
Death rate: 6.56 deaths/1,000 population (2015 est.)
country comparison to the world: 146
Net migration rate: 3.86 migrant(s)/1,000 population (2015 est.)
country comparison to the world: 33
Urbanization: urban population: 18.6% of total population (2015)
rate of urbanization: 3.18% annual rate of change (2010–15 est.)
Major urban areas—population: KATHMANDU (capital) 1.183 million (2015)
Sex ratio: at birth: 1.04 male(s)/female
total population: 0.98 male(s)/female (2015 est.)
Mother’s mean age at first birth: 20.1
note: median age at first birth among women 25–29 (2011 est.)
Maternal mortality rate: 258 deaths/100,000 live births (2015 est.)
country comparison to the world: 60
Infant mortality rate: total: 39.14 deaths/1,000 live births
male: 39.24 deaths/1,000 live births
female:39.04 deaths/1,000 live births (2015 est.)
country comparison to the world: 52
Life expectancy at birth: total population: 67.52 years
male: 66.18 years
female: 68.92 years (2015 est.)
country comparison to the world: 166
Total fertility rate: 2.24 children born/woman (2015 est.)
country comparison to the world: 96
Health expenditures: 6% of GDP (2013)
country comparison to the world: 125
Hospital bed density: 5 beds/1,000 population (2006)
Drinking water source:
improved:
urban: 90.9% of population
rural: 91.8% of population
total: 91.6% of population
unimproved:
urban: 9.1% of population
rural: 8.2% of population
total: 8.4% of population (2015 est.)
Sanitation facility access:
improved:
urban: 56% of population
rural: 43.5% of population
total: 45.8% of population
unimproved:
urban: 44% of population
rural: 56.5% of population
total: 54.2% of population (2015 est.)
Major infectious diseases: degree of risk: high
food or waterborne diseases: bacterial diarrhea, hepatitis A and E, and typhoid fever
vectorborne disease: Japanese encephalitis, malaria, and dengue
Children under the age of 5 years underweight:30.1% (2014)
country comparison to the world: 17
Education expenditures: 4.7% of GDP (2014)
country comparison to the world: 87
Literacy: definition: age 15 and over can read and write
total population: 63.9%
male: 76.4%
female: 53.1% (2015 est.)
School life expectancy (primary to tertiary education): total: 12 years
male: 12 years
female:13 years (2013)
Child labor—children ages 5–14: total number:2,467,549
percentage: 34% (2008 est.)
Unemployment, youth ages 15–24: total: 3.5%
male: 4.2%
female: 2.9% (2008 est.)
Government and Politics
Country name: conventional long form: Federal Democratic Republic of Nepal
conventional short form: Nepal
local long form: Sanghiya Loktantrik Ganatantra Nepal
local short form: Nepal
etymology: the Newar people of the Kathmandu Valley and surrounding areas apparently gave their name to the country; the terms “Nepal,” “Newar,” “Nepar,” and “Newal” are phonetically different forms of the same word
Government type: federal parliamentary republic
Capital: name: Kathmandu
Administrative divisions: 14 zones (anchal, singular and plural); Bagmati, Bheri, Dhawalagiri, Gandaki, Janakpur, Karnali, Kosi, Lumbini, Mahakali, Mechi, Narayani, Rapti, Sagarmatha, Seti
Independence: 1768 (unified by Prithvi Narayan SHAH)
National holiday: Republic Day, 28 May (2008), the abdication of Gyanendra SHAH, last Nepalese monarch, and the establishment of a federal republic
Constitution: several previous; latest adopted 20 September 2015; amended January 2016
Legal system: English common law and Hindu legal concepts
International law organization participation: has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt
Executive branch: chief of state: President Bidhya Devi BHANDARI (since 29 October 2015); Vice President Nanda Bahadar PUN (since 31 October 2015)
head of government: Prime Minister Khadga Prasad OLI (since 12 October 2015)
cabinet: Council of Ministers appointed by the prime minister; cabinet dominated by the Nepali Congress and the Communist Party of Nepal-United Marxist-Leninist
elections/appointments: president indirectly elected by the Constituency Assembly; term extends until the new constitution is promulgated; president elected on 29 October 2015 (next election NA); prime minister indirectly elected by the Constituent Assembly
election results: Bidhya Devi BHANDARI elected president; Constituent Assembly vote count—Bidhya Devi BHANDARI (CPN-UML) 327, Kul Bahadur GURUNG (NC) 214; BHANDARIIs Nepal’s first woman president
Legislative branch: description: unicameral Constituent Assembly or Sambidhan Sabha (601 seats; 240 members directly elected in single-seat constituencies by simple majority vote, 335 directly elected in a single nationwide constituency by proportional representation (PR) vote and 26 appointed by the cabinet (Council of Ministers); note—political parties allocated more than 30 percent of the PR seats are obliged to follow specified quotas for ethnic groups and within them equal percentages of men and women
elections: last held on 19 November 2013 (next to be held NA)
election results: percent of vote by party—NC 26%, CPN-UML 24%, Unified Communist Party of Nepal (Maoist) 15%, Rastriya Prajatantra Party Nepal 7%; other 28%; seats by party—NC 196, CPN-UML 175, UCPN(M) 80, Rastriya Prajantantra Party Nepal 24, other smaller parties 100; note—26 seats filled by the new Cabinet have not yet been appointed
Judicial branch: highest court(s): Supreme Court (consists of the chief justice and up to 14 judges)
judge selection and term of office: the Supreme Court chief justice appointed by the prime minister on the recommendation of the Constitutional Council; other judges appointed by the prime minister on the recommendation of the Judicial Council; judges serve until age 65
subordinate courts: appellate and district courts
note: Nepal’s judiciary was restructured under its 2007 Interim Constitution
Political parties and leaders: note: 122 political parties participated in the 19 November 2013 election and the 30 parties listed below were elected to serve in the Constituent Assembly
Akhanda Nepal Party [Kumar KHADKA]
Communist Party of Nepal-Marxist Leninist or CPN-ML [C.P. MAINALI]
Communist Party of Nepal-Unified Marxist-Leninist or CPN -UML [Jhala Nath KHANAL]
Communist Party of Nepal (United) or CPN (United) [Jaydev JOSHI]
Dalit Janajati Party [Bishwendra PASHWAN]
Federal Socialist Party [Ashok RAI]
Jana Jagaran Party Nepal (Awareness Party Nepal) [Lok Mani DHAKAL]
Khambuwan Rastriya Morcha-Nepal [Ram Kumar RAI]
Madhesi People’s Rights Forum-Democratic [Bijay Kumar GACHCHADAR]
Madhesi People’s Rights Forum-Nepal [Upendra YADAV]
Madhesi People’s Rights Forum-Republican
Madhesh Samata Party Nepal [Meghraj SAHANI]
National Madhes Socialist Party [Sharat Singh BHANDARI]
Nepal Rastriya Party [Keshav Man SHAKYA]
Nepal Pariwar Dal [Ek Nath DHAKAL]
Nepal Workers and Peasants Party [Narayan Man BIJUKCHHE]
Nepali Congress or NC [Sushil KOIRALA]
Nepali Janata Dal [Hari Charan SHAH]
Rastriya Janamorcha Nepal [Chitra Bahadur K. C.]
Rastriya Janamukti Party [Malwar Singh THAPA]
Rastriya Prajatantra Party
Rastriya Prajatantra Party-Nepal [Kama
Rastriya Prajatantra Party-Nepal [Kamal THAPA]
Sadbhavana Party [Rajendra MAHATO]
Samajbadi Prajatanytrik Janata Party Nepal [Prem Bahadur SINGH]
Sanghiya Sadbhavana Party [Anil Kumar JHA]
Sanghiye Loktantrik Rastriya Manch [Rukmini CHAUDHARY]
Terai Madhesh Democratic Party [Mahantha THAKUR]
Terai-Madhesh Sadbhavana Party-Nepal [Mahendra YADAV]
Tharuhat Terai Party Nepal [Bhanuram CHAUDARY]
Unified Communist Party of Nepal (Maoist) or UCPN (M) [Pushpa Kamal DAHAL, also known as Comrade PRACHANDA]
Political pressure groups and leaders: other: various groups advocating regional autonomy such as the Federal State Limbuwan Council in far eastern Nepal
International organization participation: ADB, BIMSTEC, CD, CP, FAO, G-77, IAEA, IBRD, ICAO, ICC (NGOs), ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, MIN URSO, MINUSMA, MINUSTAH, MONUSCO, NAM, OPCW, SAARC, SACEP, UN, UNAMID, UNCTAD, UND OF, UNESCO, UNIDO, UNIFIL, UNMIL, UNMISS, UNOCI, UNTSO, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO
Flag description: 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 longas these heavenly bodies
note: Nepal is the only country in the world whose flag is not rectangular or square
National symbol(s): rhododendron blossom; national color: red
National anthem: name: “Sayaun Thunga Phool Ka” (Hundreds of Flowers)
lyrics/music: Pradeep Kumar RAI/Ambar GURUNG
note: adopted 2007; after the abolition of the monarchy in 2006, a new anthem was required because of the previous anthem’s praise for the king.
Economy
Economy—overview: Nepal is among the poorest and least developed countries in the world, with about one-quarter of its population living below the poverty line. Nepal is heavily dependent on remittances, which amount to as much as 29% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for almost 70% 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 commercially feasible capacity. Nepal and India signed trade and investment agreements in 2014 that increase Nepal’s hydropower potential, but political uncertainty and a difficult business climate have hampered foreign investment.
Nepal was hit by massive earthquakes in early 2015, which damaged or destroyed infrastructure and homes and set back economic development. Political gridlock in the past several years and recent public protests, predominantly in the southern Tarai region, have hindered post-earthquake recovery and prevented much-needed economic reform. Additional challenges to Nepal’s growth include its landlocked geographic location, persistent power shortages, and underdeveloped transportation infrastructure.
GDP (purchasing power parity): $70.09 billion (2015 est.)
$67.81 billion (2014 est.)
$64.35 billion (2013 est.)
note: data are in 2015 US dollars
country comparison to the world: 98
GDP (official exchange rate): $21.36 billion (2015 est.)
GDP—real growth rate: 3.4% (2015 est.)
5.4% (2014 est.)
4.1% (2013 est.)
country comparison to the world: 89
GDP—per capita (PPP): $2,500 (2015 est.)
$2,400 (2014 est.)
$2,300 (2013 est.)
note: data are in 2015 US dollars
country comparison to the world: 197
GDP—composition, by sector of origin:
agriculture: 31.7%
industry: 15.1%
services: 53.2% (FY2014/15 est.)
Agriculture—products: pulses, rice, corn, wheat, sugarcane, jute, root crops; milk, water buffalo meat
Industries: tourism, carpets, textiles; small rice, jute, sugar, and oilseed mills; cigarettes, cement and brick production
Industrial production growth rate: 2.6% (2015 est.)
country comparison to the world: 98
Labor force: 15.2 million
note: severe lack of skilled labor (2013 est.)
country comparison to the world: 39
Labor force—by occupation:
agriculture: 69%
industry: 12%
services: 19% (2014 est.)
Unemployment rate: 46% (2008 est.)
42% (2004 est.)
country comparison to the world: 199
Population below poverty line: 25.2% (2011 est.)
Household income or consumption by percent Age share: lowest: 10%: 3.2%
highest: 10%: 29.5% (2011)
Distribution of family income—Gini index : 32.8 (2010)
47.2 (2008 est.)
country comparison to the world: 106
Budget: revenues: $4.257 billion
expenditures: $4.203 billion (2015 est.)
Taxes and other revenues: 19.9% of GDP (2015 est.)
country comparison to the world: 159
Budget surplus (+) or deficit (–): 0.2% of GDP (2015 est.)
country comparison to the world: 26
Public debt: 30% of GDP (FY 2012/13 est.)
32% of GDP (2013 est.) (FY11/12)
country comparison to the world: 143
Fiscal year: 16 July—15 July
Inflation rate (consumer prices): 7.2% (2015 est.) 9% (2014 est.)
country comparison to the world: 194
Market value of publicly traded shares: $11.81 billion (31 October 2015 est.)
$9.574 billion (31 October 2014)
$5.235 billion (31 December 2010 est.)
country comparison to the world: 71
Current account balance: $1.067 billion (2015 est.)
$908 million (2014 est.)
country comparison to the world: 36
Exports: $924.2 million (2015 est.)
$1.078 billion (2014 est.)
country comparison to the world: 163
Exports—commodities: clothing, pulses, carpets, textiles, juice, jute goods
Exports—partners: India 61.2%, US 9.4% (2015)
Imports: $8.56 billion (2015 est.)
$7.72 billion (2014 est.)
country comparison to the world: 106
Imports—commodities: petroleum products, machinery and equipment, gold, electrical goods, medicine
Imports—partners: India 61.4%, China 15.4% (2015)
Reserves of foreign exchange and gold: $71.83 billion (30 July 2015 est.)
$6.191 billion (30 July 2014 est.)
country comparison to the world: 32
Debt—external: $3.727 billion (31 December 2014 est.)
$3.833 billion (31 December 2013 est.)
country comparison to the world: 137
Exchange rates: Nepalese rupees (NPR) per US dollar—
102.4 (2015 est.)
97.6 (2014 est.)
99.53 (2013 est.)
85.2 (2012 est.)
Energy
Electricity—production: 3.516 billion kWh (2012 est.)
country comparison to the world: 129
Electricity—consumption: 3.239 billion kWh (2012 est.)
country comparison to the world: 131
Electricity—exports: 4 million kWh (2012 est.)
country comparison to the world: 92
Electricity—imports: 793 million kWh (2012 est.)
country comparison to the world: 68
Electricity—installed generating capacity: 763,000 kW (2012 est.)
country comparison to the world: 131
Electricity—from fossil fuels: 7.5% of total installed capacity (2012 est.)
country comparison to the world: 202
Electricity—from hydroelectric plants: 92.5% of total installed capacity (2012 est.)
country comparison to the world: 11
Refined petroleum products—consumption: 20,000 bbl/day (2013 est.)
country comparison to the world: 128
Refined petroleum products—imports: 19,990 bbl/day (2012 est.)
Carbon dioxide emissions from consumption of energy: 3.638 million Mt (2012 est.)
country comparison to the world: 136
Communications and Transport
Telephones—fixed lines: total subscriptions: 840,000
subscriptions per 100 inhabitants: 3 (2014 est.)
country comparison to the world: 85
Telephones—mobile cellular: total: 23.2 million
subscriptions per 100 inhabitants: 75 (2014 est.)
country comparison to the world: 52
Telephone system: general assessment: poor telephone and telegraph service; fair radiotelephone communication service and mobile-cellular telephone network
domestic: mobile-cellular telephone subscribership base is increasing with roughly 90% of the population living in areas covered by mobile carriers
international: country code—977; radiotelephone communications; microwave and fiber landlines to India; satellite earth station—1 Intelsat (Indian Ocean) (2011)
Broadcast media: state operates 2 TV stations, as well as national and regional radio stations; roughly 30 independent TV channels are registered with only about half in regular operation; nearly 400 FM radio stations are licensed with roughly 300 operational (2007)
Radio broadcast stations: AM 6, FM 80, shortwave 4 (2008)
Television broadcast stations: 9 (plus9 repeaters) (2008)
Internet country code: .np
Internet hosts: 41,256 (2012)
country comparison to the world: 100
Internet users: total: 3.8 million
percent of population: 12.1% (2014 est.)
country comparison to the world: 80
Railways: total: 53 km
narrow gauge: 53 km 0.762-m gauge (2014)
country comparison to the world: 131
Roadways: total: 10,844 km
paved: 4,952 km
unpaved: 5,892 km (2010)
country comparison to the world: 132
Defense and Security
Military branches: Nepal Army (2012)
Military service age and obligation: 18 years of age for voluntary military service; no conscription (2014)
Military expenditures: NA% (2012)
1.41% of GDP (2011)
Disputes—international: joint border commission continues to work on contested sections of boundary with India, including the 400 sq km 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
Refugees and internally displaced persons: refugees (country of origin): 15,000 (Tibet/China) (2014); fewer than 18,000 (Bhutan) (2015)
IDPs: 40,700 (remaining from ten-year Maoist insurgency that officially ended in 2006; figure does not include people displaced since 2007 by inter-communal violence and insecurity in the Terai region; 2015 earthquakes) (2015)
Stateless persons: undetermined (2015); note—the UNHCR is working with the Nepali Government to address the large number of individuals lacking citizenship certificates in Nepal; smaller numbers of Bhutanese Hindu refugees of Nepali origin (the Lhotsampa) who were stripped of Bhutanese nationality and forced to flee their country in the late 1980s and early 1990s—and undocumented Tibetan refugees who arrived in Nepal prior to the 1990s—are considered stateless
Illicit drugs: illicit producer of cannabis and hashish for the domestic and international drug markets; transit point for opiates from Southeast Asia to the West.
Source: The CIA World Fact Book 2017
