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Pakistan

2015-01-14T04:24:54Z

GoraGurung: /* See Also */ these links not belong, not in page format style not belonging (sorry poor english)

{{Country
|name =اسلامی جمہوریۂ پاکستان ''Islāmī Jumhūrīyah Pākistān''
|map =Pakistan rel 2002.jpg
|map2 =Pakistan location.png
|flag =Flag of Pakistan.png
|arms =Arms of Pakistan.png
|capital =Islamabad
|capital-raw =
|government =Semi-presidential republic
|government-raw =
|language =Urdu, English
|king =
|queen =
|monarch-raw =
|president =Asif Ali Zardari
|president-raw =
|chancellor =
|chancellor-raw =
|pm =Raja Pervaiz Ashraf
|pm-raw =
|area =340,403 sq mi
|pop =187,342,000
|pop-basis =2011
|gdp =$475.5 billion
|gdp-year =2007
|gdp-pc =$2,943
|currency =Rupee
|idd =
|tld =
}}
The '''Islamic Republic of Pakistan''' is a country of south [[Asia]] created in 1947 as a state for [[Muslim]]s on August 14, 1947. It is bordered by [[Iran]], [[Afghanistan]], [[India]] and [[China]], and has a coastline on the [[Arabian Sea]]. Its capital is [[Islamabad]]; other major centres include [[Karachi]], [[Lahore]] and [[Peshawar]]. The nation is about 97% Muslim <ref>http://www.uh.edu/~sriaz/religion/index.html</ref>. Pakistan, a large poor country with a weak economy--but with nuclear weapons--is friendly to the U.S. but hostile to neighboring India, a much larger country. Pakistan has an unstable political system, with [[Taliban]] terrorists growing in strength in remote mountain regions, where they support the insurgency in neighboring [[Afghanistan]].

==People==
[[File:Tomb of Mohamad Ali Jinnah Karachi 2007.jpg|thumb|left|280px|Tomb of Mohamad Ali Jinnah, Karachi, 2007.]]
The majority of Pakistan's population lives in the Indus River valley and in an arc formed by the cities of Faisalabad, Lahore, Rawalpindi/Islamabad, and Peshawar. Although Urdu is an official language of Pakistan, it is spoken as a first language by only 8% of the population; 48% speak Punjabi, 12% Sindhi, 10% Saraiki, 8% Pushtu, 3% Baloch, and 3% other. Urdu, Punjabi, Pushtu, and Baloch are Indo-European languages. English is the other official language, and is widely used in government, commerce, the officer ranks of the military, and in many institutions of higher learning.
*Population (2008 est.): 162 million, plus 2 million refugees from Afghanistan
*Annual growth rate (2006 est.): 2.09%.
*Ethnic groups: Punjabi, Sindhi, Pushtun, Baloch, Muhajir (i.e., Urdu-speaking immigrants from India and their descendants), Saraiki, and Hazara.
*Religions: Muslim 97%; small minorities of Christians, Hindus, and others.
*Languages: Urdu (national and official), English, Punjabi, Sindhi, Pushtu, Baloch, Hindko, Brahui, Saraiki (Punjabi variant).
*Education: Literacy (2004 est.)--48.7%; male 61.7%; female 35.2%.
*Health: Infant mortality rate (2006 est.)--68.84/1,000. Life expectancy (2006 est.)--men 62.73 yrs., women 64.83 yrs.
*Work force (2004 est.): Agriculture--42%; services--38%; industry--20%.

==Government and Political Conditions==
[[File:Aiwane Sadr Presidency official residence of the President of Pakistan.jpeg|thumb|300px|Residence of the President of Pakistan.]]
Pervez Musharraf ran Pakistan from 1999, when as army chief he ousted Prime Minister Nawaz Sharif. After losing the support of the army, and in the face of impeachment threats, Musharraf resigned in August 2008. He was replaced by President Asif Ali Zardari (b. 1955) of the PPP party.<ref>A playboy, in 1987 he married [[Benazir Bhutto]] (1953-2007), leader of the PPP party. She was the daughter of Zulfikar Ali Bhutto, who was the daughter of former president (1971–73) and prime minister (1973–77). She served two terms as prime minister, in 1988–90 and in 1993–96. They had three children. Zadari spent three years in prison and is called “Mr. Ten Percent" because of his fondness for cash kickbacks on government contracts.</ref> However Zardari was so weak in late 2009 that his government seems near collapse. In November 2009 Zardari relinquished his position in Pakistan’s nuclear command structure, turning it over to the prime minister, in what appeared to be an effort to avoid impeachment or prosecution, and retain at least a figurehead post. Zardari is head of the Pakistan Muslim League-Nawaz Party (PML-N), taking over after the assassination in 2007 of his wife, former Prime Minister Benazar Bhutto.

Both Musharraf and Zardari are friendly to the United States, and hostile to the Taliban, which has strong support in remote mountainous districts. Indeed the growing strength of the Taliban is one of the major reasons for the strength of the insurgency it sponsors in neighboring Afghanistan, Inside Pakistan terrorism has grown more severe, with suicide bombers targeting police, government offices and public places.

===Parties===
[[File:Farooq Naek Pakistan.jpg|thumb|left|250px|Farooq Naek, Chairman of the Senate of Pakistan.]]
The Pakistan Muslim League (PML), Pakistan People's Party (PPP), and Pakistan Muslim League - Nawaz (PML-N) are national political parties, while the Muttahid Majlis-e-Amal (MMA)--an umbrella group of six religious parties, including the Jamaat-il-Islami--gained significant influence during the 2002 election. After those elections, the Pakistani political system remained highly fragmented, with no group winning a substantial majority of seats in the national assembly, and religious groups banding together in the MMA to earn a significant portion of seats for the first time. In the 2008 elections, the PPP won 121 seats, the PML-N won 91, and Mushariff's supporters won only 54 sears.

===Constitution===
The Pakistan Constitution of 1973, amended substantially in 1985 under Zia ul-Haq, was suspended by the military government in October 1999. It was restored on December 31, 2002. The president is chosen for a five-year term by an electoral college consisting of the Senate, National Assembly, and the provincial assemblies.
===Prime Minister office===
The prime minister is selected by the National Assembly for a four-year term. The bicameral parliament--or Majlis-e-Shoora--consists of the Senate (100 seats; members are indirectly elected by provincial assemblies to serve four-year terms) and the National Assembly (342 seats; 60 seats reserved for women, 10 seats reserved for minorities; members elected by popular vote serve four-year terms). Each of the four provinces--Punjab, Sindh, Northwest Frontier, and Balochistan--has a Chief Minister and provincial assembly. The Northern Areas, Azad Kashmir and the Federally Administered Tribal Areas (FATA) are administered by the federal government but enjoy considerable autonomy. The cabinet, National Security Council, and governors serve at the president's discretion.
===Judiciary===
[[File:Punjab University Lahore Pakistan.jpg|thumb|250px|Punjab University, Lahore.]]
The judicial system comprises a Supreme Court, provincial high courts, and Federal Islamic (or Shari'a) Court. The Supreme Court is Pakistan's highest court. The president appoints the chief justice and they together determine the other judicial appointments. Each province has a high court, the justices of which are appointed by the president after conferring with the chief justice of the Supreme Court and the provincial chief justice. The judiciary is proscribed from issuing any order contrary to the decisions of the President. Federal Sharia Court hears cases that primarily involve Sharia, or Islamic law. Legislation enacted in 1991 gave legal status to Sharia. Although Sharia was declared the law of the land, it did not replace the existing legal code.

===Provinces===
According to the constitution, Pakistan is a federation of four provinces: Baluchistan, the North-West Frontier Province (NWFP), Punjab, and Sindh. Governors appointed by the president head the provinces. There is also the Federally Administered Tribal Areas (FATA), and the Islamabad Capital Territory, which consists of the capital city of Islamabad. These areas and territory are under the jurisdiction of the federal government. The Northern Areas are administered as a de facto "Union Territory" and are treated as an integral part of Pakistan. The Pakistani-administered portion of the disputed Jammu and Kashmir region includes Azad Kashmir, a separate and autonomous government that maintains strong ties to Pakistan.

Pakistan is a country with very poor human rights record, particularly against minorities such as [[Christian]]s, [[Hindu]]s, [[Jew]]s, Ahmadiyya Muslims and the Muhajir Urdu <ref>[http://www.christianpost.com/article/20060822/23922.htm]</ref><ref>[http://www.religioustolerance.org/rt_pakis.htm]</ref><ref>[http://www.domini.org/openbook/pak20020925.htm]</ref>
<ref>[http://www.missio-aachen.de/menschen-kulturen/nachrichten/Sangla_Hill_attack_continues_to_draw_condemnation.asp]</ref>
<ref>[http://www.asianews.it/view.php?l=en&art=4928]</ref><ref>[http://www.christianresponse.org/articles/291/cartoon-protestors-in-pakistan-target-christians]</ref>
<ref>[http://www.michnews.com/cgi-bin/artman/exec/view.cgi/242/11159]</ref>

===Principal Government Officials===
*President--Asif Ali Zardari<ref name="CIA World Factbook">https://www.cia.gov/library/publications/the-world-factbook/geos/pk.html</ref>
*Prime Minister (head of government)--Raja Pervaiz Ashraf

*Ambassador to the U.S.--Husain Haqqani<ref>http://www.state.gov/s/cpr/rls/dpl/spring_summer2008/110047.htm</ref>


[[File:Lt -Gen -Ahmad-Shuja-Pasha Pakistan.jpg|thumb|left|Lt. Gen. Ahmad Shuja Pasha, the director general of the country’s spy agency.]]

===Foreign Relations===
After September 11, 2001, Pakistan's prominence in the international community increased significantly, as it pledged its alliance with the U.S. in the war on terror and made a commitment to eliminate terrorist camps on its territory. Historically, Pakistan has had difficult and volatile relations with India, long-standing close relations with China, extensive security and economic interests in the Persian Gulf, and wide-ranging bilateral relations with the United States and other Western countries. It expresses a strong desire for a stable Afghanistan.

====India====
[[File:Flags of India and Pakistan.jpg|thumb|left|300px|Flags of India and Pakistan at the border.]]
Since partition, relations between Pakistan and India have been characterized by rivalry and suspicion. Although many issues divide the two countries, the most sensitive one since independence has been the status of Kashmir.

At the time of partition, the princely state of Kashmir, though ruled by a Hindu Maharajah, had an overwhelmingly Muslim population. When the Maharajah hesitated in acceding to either Pakistan or India in 1947, some of his Muslim subjects, later aided by tribesmen from Pakistan, revolted in favor of joining Pakistan. In exchange for military assistance in containing the revolt, the Kashmiri ruler offered his allegiance to India. Indian troops occupied the eastern portion of Kashmir, including its capital, Srinagar, while the western part came under Pakistani control.

India submitted this dispute to the United Nations on January 1, 1948. One year later, the UN arranged a cease-fire along a line dividing Kashmir but leaving the northern end of the line not demarcated and the Vale of Kashmir (with the majority of the population) under Indian control. India and Pakistan agreed to a resolution that called for a UN-supervised plebiscite to determine the state's future This plebiscite has not occurred because the main precondition, the withdrawal of both nations’ forces from Kashmir, has failed to take place.

Full-scale hostilities erupted in September 1965, when India alleged that insurgents trained and supplied by Pakistan were operating in India-controlled Kashmir. Hostilities ceased 3 weeks later, following mediation efforts by the UN and interested countries. In January 1966, the leaders of India and Pakistan met in Tashkent, U.S.S.R., and agreed to attempt a peaceful settlement of Kashmir and their other differences.
[[File:Iran Pakistan India gas pipeline.JPG|thumb|300px|Iran-Pakistan-India gas pipeline.]]
Following the 1971 Indo-Pakistan conflict, President Zulfiqar Ali Bhutto and Indian Prime Minister Indira Gandhi met in the hill station of Shimla, India, in July 1972. They agreed to a line of control in Kashmir resulting from the December 17, 1971, cease-fire, and endorsed the principle of settlement of bilateral disputes through peaceful means. In 1974, Pakistan and India agreed to resume postal and telecommunications linkages and to enact measures to facilitate travel. Trade and diplomatic relations were restored in 1976 after a hiatus of 5 years.

India's nuclear test in 1974 generated great uncertainty in Pakistan and is generally acknowledged to have been the impetus for Pakistan's nuclear weapons development program. In 1983, the Pakistani and Indian Governments accused each other of aiding separatists in their respective countries--Sikhs in India's Punjab state and Sindhis in Pakistan's Sindh province. In April 1984, tensions erupted after troops were deployed to the Siachen Glacier, a high-altitude, desolate area close to the China border not demarcated by the cease-fire agreement (Karachi Agreement) signed by Pakistan and India in 1949.

Tensions diminished after Rajiv Gandhi became Prime Minister in November 1984 and after a group of Sikh hijackers was brought to trial by Pakistan in March 1985. In December 1985, President Zia and Prime Minister Gandhi pledged not to attack each other's nuclear facilities. A formal "no attack" agreement was signed in January 1991. In early 1986, the Indian and Pakistani Governments began high-level talks to resolve the Siachen Glacier border dispute and to improve trade.

Bilateral tensions increased in early 1990, when Kashmiri militants began a campaign of violence against Indian Government authority in Jammu and Kashmir. Subsequent high-level bilateral meetings relieved the tensions between India and Pakistan, but relations worsened again after the destruction of the Ayodhya mosque by Hindu extremists in December 1992 and terrorist bombings in Bombay in March 1993. Talks between the Foreign Secretaries of both countries in January 1994 ended in deadlock.
More recently, the Indo-Pakistani relationship has veered sharply between rapprochement and conflict. After taking office in February 1997, Prime Minister Nawaz Sharif moved to resume official dialog with India. A number of meetings at the foreign secretary and prime ministerial level took place, with positive atmospherics but little concrete progress. The relationship improved markedly when Indian Prime Minister Vajpayee traveled to Lahore for a summit with Sharif in February 1999. There was considerable hope that the meeting could lead to a breakthrough.

In spring 1999, infiltrators from Pakistan occupied positions on the Indian side of the Line of Control in the remote, mountainous area of Kashmir near Kargil, threatening the ability of India to supply its forces on Siachen Glacier. By early summer, serious fighting flared in the Kargil sector. The infiltrators withdrew following a meeting between Prime Minister Sharif and President Clinton in July. Relations between India and Pakistan were particularly strained during the 1999 coup in Islamabad. Then, just weeks after the September 11, 2001 attack on the United States, an attack on India's Parliament on December 13 further strained this relationship.

====Better relations since 2004====
The prospects for better relations between India and Pakistan improved in early January 2004 when a summit meeting of the South Asian Association for Regional Cooperation (SAARC) permitted India’s Prime Minister Vajpayee to meet with President Musharraf. Both leaders agreed to establish a Composite Dialogue to resolve their disputes. The Composite Dialogue focuses on eight issues: confidence building measures, Kashmir, Wullar barrage, promotion of friendly exchanges, Siachen glacier, Sir creek, terrorism and drug trafficking, and economic and commercial cooperation.

Relations further improved when President Musharraf met Indian Prime Minister Manmohan Singh in New York in October 2004. Additional steps aimed at improving relations were announced when Indian Foreign Minister Natwar Singh visited Islamabad in February 2005 and in April 2005 when President Musharraf traveled to India to view a cricket match and hold discussions. In a further display of improved relations, bus service commenced from Pakistan-controlled Kashmir to Srinagar in April 2005. After a destructive earthquake hit the Kashmir region in October 2005, the two countries cooperated with each other to deal with the humanitarian crisis.

Musharraf and Singh last met in September 2006, when they condemned all acts of terrorism and agreed to continue the search for options acceptable to both sides for a peaceful, negotiated settlement of all issues, including the issue of Jammu and Kashmir. The foreign secretaries of both nations opened the fourth round of the Composite Dialogue in Islamabad on March 13-14, 2007.

====Afghanistan====
[[File:Afghan Pakistani NATO.jpg|thumb|320px|Afghan - Pakistani - NATO 29th Tripartite Commission, 2009.]]
Following the 1979 Soviet invasion of Afghanistan, the Pakistani Government, with American encouragement and Saudi money, played a vital role in supporting the Afghan resistance movement and assisting Afghan refugees. After the Soviet withdrawal in February 1989, Pakistan, with cooperation from the world community, continued to provide extensive support for displaced Afghans. Continued turmoil in Afghanistan prevented the refugees from returning to their country. In 1999, more than 1.2 million registered Afghan refugees remained in Pakistan. By 2009 there are 2 million refugees living in squalid camps. Pakistan was one of three countries to recognize the Taliban regime of Afghanistan. International pressure after September 11, 2001, prompted Pakistan to reassess its relations with the Taliban regime and support the U.S. and international coalition in Operation Enduring Freedom to remove the Taliban from power. Pakistan has publicly expressed its support to Afghanistan's President Karzai and has pledged $100 million toward Afghanistan's reconstruction. Both nations are also working to strengthen cooperation along their rugged border, including making preparations to hold joint jirgas in their restive border areas.

====China====
In 1950, Pakistan was among the first countries to recognize the Communist [[China]] (PRC). Following the Sino-Indian hostilities of 1962, Pakistan's relations with China became stronger; since then, the countries have regularly exchanged high-level visits resulting in various agreements. China has provided economic, military, and technical assistance to Pakistan. Favorable relations with China have been a pillar of Pakistan's foreign policy. The PRC strongly supported Pakistan's opposition to Soviet involvement in Afghanistan and is perceived by Pakistan as a regional counterweight to India and Russia.

====Iran and the Persian Gulf====
Historically, Pakistan has had close geopolitical and cultural-religious linkages with Iran. However, strains in the relationship appeared following the Iranian revolution. Pakistan and Iran supported different factions in the Afghan conflict. Also, some Pakistanis suspect Iranian government support for the sectarian violence that has plagued Pakistan. However, relations between the countries have improved since their policies toward Afghanistan have converged with the fall of the Taliban. Both countries contend that they are on the road to strong and lasting friendly relations.

Pakistan historically has provided military personnel to strengthen Gulf-state defenses and to reinforce its own security interests in the area.

===Relations with the United States===
[[File:Karachi Pakistan.jpg|thumb|280px|Karachi.]]
The United States and Pakistan established diplomatic relations in 1947. The U.S. agreement to provide economic and military assistance to Pakistan and the latter's partnership in the Baghdad Pact/CENTO and SEATO strengthened relations between the nations. However, the U.S. suspension of military assistance during the 1965 Indo-Pakistan war generated a widespread feeling in Pakistan that the United States was not a reliable ally. Even though the United States suspended military assistance to both countries involved in the conflict, the suspension of aid affected Pakistan much more severely. Gradually, relations improved, and arms sales were renewed in 1975. Then, in April 1979, the United States cut off economic assistance to Pakistan, except food assistance, as required under the Symington Amendment to the Foreign Assistance Act of 1961, due to concerns about Pakistan's nuclear program.

The Soviet invasion of Afghanistan in December 1979 highlighted the common interest of Pakistan and the United States in peace and stability in South Asia. In 1981, the United States and Pakistan agreed on a $3.2 billion military and economic assistance program aimed at helping Pakistan deal with the heightened threat to security in the region and its economic development needs.

Recognizing national security concerns and accepting Pakistan's assurances that it did not intend to construct a nuclear weapon, Congress waived restrictions (Symington Amendment) on military assistance to Pakistan. In March 1986, the two countries agreed on a second multi-year (FY 1988-93) $4 billion economic development and security assistance program. On October 1, 1990, however, the United States suspended all military assistance and new economic aid to Pakistan under the Pressler Amendment, which required that the President certify annually that Pakistan "does not possess a nuclear explosive device."
[[File:Pakistani soldier.jpg|thumb|180px|Pakistani soldier.]]
Several incidents of violence against American officials and U.S. mission employees in Pakistan have marred the relationship. In November 1979, false rumors that the United States had participated in the seizure of the Grand Mosque in Mecca provoked a mob attack on the U.S. Embassy in Islamabad in which the chancery was set on fire resulting in the loss of life of American and Pakistani staff. In 1989, an attack on the American Center in Islamabad resulted in six Pakistanis being killed in crossfire with the police. In March 1995, two American employees of the consulate in Karachi were killed and one wounded in an attack on the home-to-office shuttle. In November 1997, four U.S. businessmen were brutally murdered while being driven to work in Karachi. In March 2002 a suicide attacker detonated explosives in a church in Islamabad, killing two Americans associated with the Embassy and three others. There were also unsuccessful attacks by terrorists on the Consulate General in Karachi in May 2002. Another bomb was detonated near American and other businesses in Karachi in November 2005, killing three people and wounding 15 others. On March 2, 2006, a suicide bomber detonated a car packed with explosives as a vehicle carrying an American Foreign Service officer passed by on its way to Consulate Karachi. The diplomat, the Consulate’s locally-employed driver and three other people were killed in the blast; 52 others were wounded.

The decision by India to conduct nuclear tests in May 1998 and Pakistan's matching response set back U.S. relations in the region, which had seen renewed U.S. Government interest during the second Clinton Administration. A presidential visit scheduled for the first quarter of 1998 was postponed and, under the Glenn Amendment, sanctions restricted the provision of credits, military sales, economic assistance, and loans to the government. The October 1999 overthrow of the democratically elected Sharif government triggered an additional layer of sanctions under Section 508 of the Foreign Appropriations Act, which include restrictions on foreign military financing and economic assistance. U.S. Government assistance to Pakistan was subsequently limited mainly to refugee and counter-narcotics assistance.

The U.S.-Pakistan relationship changed significantly once Pakistan agreed to support the U.S. campaign to eliminate the Taliban in Afghanistan and to join the United States in the Global War on Terror. Since September 2001, Pakistan has provided extensive assistance in the war on terror by capturing more than 600 al-Qaida members and their allies. The United States has stepped up its economic assistance to Pakistan, providing debt relief and support for a major effort for education reform. During President Musharraf's visit to the United States in 2003, President Bush announced that the United States would provide Pakistan with $3 billion in economic and military aid over 5 years. This assistance package commenced during FY 2005.

Following the region’s tragic October 8, 2005 earthquake, the United States responded immediately and generously to Pakistan’s call for assistance. The response was consistent with U.S. humanitarian values and our deep commitment to Pakistan. At the subsequent reconstruction conference in Islamabad on November 19, 2005, the U.S. announced a $510 million commitment to Pakistan for earthquake relief and reconstruction, including humanitarian assistance, military support for relief operations, and anticipated U.S. private contributions.

President Bush and President Musharraf have affirmed the long-term, strategic partnership between their two countries. In 2004, the United States recognized closer bilateral ties with Pakistan by designating Pakistan as a Major Non-NATO Ally. President Bush visited Pakistan in March 2006, where he and President Musharraf reaffirmed their shared commitment to a broad and lasting strategic partnership, agreeing to continue their cooperation on a number of issues including: the war on terror, security in the region, strengthening democratic institutions, trade and investment, education, and earthquake relief and reconstruction.

The United States and Pakistan concluded the sale to Pakistan of F-16 aircraft in late 2006, further reflecting their deepening strategic partnership. President Musharraf visited Washington in September 2006, where he held a bilateral meeting with President Bush and also participated in a trilateral meeting with President Bush and President Karzai of Afghanistan. The U.S.-Pakistan strategic partnership is based on the shared interests of the United States and Pakistan in building stable and sustainable democracy and in promoting peace and security, stability, prosperity, and democracy in South Asia and across the globe.

====Osama Bin Laden====
On May 2, 2011, United States special forces raided a private compound in [[Abbottabad]], Pakistan, 62 miles north of [[Islamabad]]. That evening, President Obama announced that [[Osama bin Laden]] had been killed in the raid. <ref>http://www.guardian.co.uk/world/2011/may/02/osama-bin-laden-dead-obama</ref> Reaction within Pakistan was mixed, with some calling it a welcome end to the life of a mass murderer, and others calling it a disturbing violation of national sovereignty. <ref>http://www.christiannewstoday.com/Christian_News_Report_5080.html</ref>

Although the Pakistani government had long declared that Osama bin Laden was not hiding in their country,<ref>http://www.guardian.co.uk/uk/2009/dec/03/brown-praises-pakistan-terrorism-fight</ref> <ref>http://articles.timesofindia.indiatimes.com/2003-02-07/pakistan/27281957_1_al-qaeda-pakistan-president-pervez-musharraf-state-colin-powell</ref>U.S. intelligence estimated in 2011 that bin Laden had been hiding there for five to six years,<ref>http://www.bbc.co.uk/news/world-south-asia-13268517</ref> and counter-terrorism advisor John Brennan said it was "inconceivable that Bin Laden did not have a support system" in the country. Pakistani President Asif Ali Zardari responded with an op-ed to the Washington Post, rejecting claims that his government helped Al-Qaeda by writing "such baseless speculation may make exciting cable news, but it doesn’t reflect fact."<ref>http://www.washingtonpost.com/opinions/pakistan-did-its-part/2011/05/02/AFHxmybF_story.html</ref>

==Defense==
[[File:Pakistan armed forces.jpg|thumb|left|330px|Pakistan Day Parade.]]
Pakistan has the world's eighth-largest armed forces, which is generally well trained and disciplined. However, budget constraints and nation-building duties have reduced Pakistan's training tempo, which if not reversed, could affect the operational readiness of the armed forces. Likewise, Pakistan has had an increasingly difficult time maintaining its aging fleet of U.S., Chinese, U.K., and French equipment. While industrial capabilities have expanded significantly, limited budget resources and sanctions have significantly constrained the government's efforts to modernize its armed forces.

Until 1990, the United States provided military aid to Pakistan to modernize its conventional defensive capability. The United States allocated about 40% of its assistance package to non-reimbursable credits for military purchases, the third-largest program behind Israel and Egypt. The remainder of the aid program was devoted to economic assistance. Sanctions put in place in 1990 denied Pakistan further military assistance due to the discovery of its program to develop nuclear weapons. Sanctions were tightened following Pakistan's nuclear tests in response to India's May 1998 tests and the military coup of 1999. Pakistan has remained a non-signatory of the Nuclear non-Proliferation Treaty.

The events of September 11, 2001, and Pakistan's agreement to support the United States led to a waiver of the sanctions, and military assistance resumed to provide spare parts and equipment to enhance Pakistan's capacity to police its western border with Afghanistan and address its legitimate security concerns. In 2003, President Bush announced that the United States would provide Pakistan with $3 billion in economic and military aid over 5 years. This assistance package commenced during FY 2005.

==Economy==
[[File:Manora Tallest Lighthouse of Pakistan.jpg|thumb|300px|Manora, Tallest Lighthouse of Pakistan.]]

With a per capita GDP of about $690 (current U.S. $), the World Bank considers Pakistan a low-income country. No more than 48.7% of adults are literate, and life expectancy is about 63 years. The population, currently about 165 million, is growing at 2.09% annually.

In 2000, the government made significant macroeconomic reforms: Privatizing Pakistan's state-subsidized utilities, reforming the banking sector, instituting a world-class anti-money laundering law, cracking down on piracy of intellectual property, and moving to quickly resolving investor disputes. After September 11, 2001, and Pakistan's proclaimed commitment to fighting terror, many international sanctions, particularly those imposed by the United States, were lifted. Pakistan's economic prospects began to increase significantly due to unprecedented inflows of foreign assistance at the end of 2001. This trend is expected to continue through 2009. Foreign exchange reserves and exports grew to record levels after a sharp decline. The International Monetary Fund lauded Pakistan for its commitment in meeting lender requirements for a $1.3 billion IMF Poverty Reduction and Growth Facility loan, which it completed in 2004, forgoing the final permitted tranche. The Government of Pakistan has been successful in issuing sovereign bonds, and has issued $600 million in Islamic bonds, putting Pakistan back on the investment map. Pakistan's search for additional foreign direct investment has been hampered by concerns about the security situation, domestic and regional political uncertainties, and questions about judicial transparency.
[[File:Boat Karachi Pakistan.jpg|thumb|left|180px|Dhow in Karachi.]]
U.S. assistance has played a key role in moving Pakistan's economy from the brink of collapse to setting record high levels of foreign reserves and exports, dramatically lowering levels of solid debt. Also, despite the earthquake in 2005, GDP growth remained strong at 6.6% in fiscal year 2005/2006. In 2002, the United States led Paris Club efforts to reschedule Pakistan's debt on generous terms, and in April 2003 the United States reduced Pakistan's bilateral official debt by $1 billion. In 2004, approximately $500 million more in bilateral debt was granted. Consumer price inflation eased slightly to an average of 8% in 2005/2006 from 9.3% in 2004/2005.

Low levels of spending in the social services and high population growth have contributed to persistent poverty and unequal income distribution. The trends of resources being devoted to socioeconomic development and infrastructure projects have been improving since 2002, although expenditures remain below global averages. Pakistan's extreme poverty and underdevelopment are key concerns, especially in rural areas. The government has reined in the fiscal mismanagement that produced massive foreign debt, and officials have committed to using international assistance--including a major part of the $3 billion five-year U.S. assistance package--to address Pakistan's long-term needs in the health and education sectors.
*GDP (2005 est., current U.S. $): $110.7 billion.
*Real GDP growth rate (2005): 7.8%.
*Per capita GDP (2005 est., current U.S. $): $690.
*Natural resources: Arable land, natural gas, limited oil, substantial hydropower potential, coal, iron ore, copper, salt, limestone.
*Agriculture: Products--wheat, cotton, rice, sugarcane, eggs, fruits, vegetables, milk, beef, mutton.
*Industry: Types--textiles & apparel, food processing, pharmaceuticals, construction materials, shrimp, fertilizer, and paper products.
*Trade (2005 est.): Exports--$14.85 billion: textiles (garments, bed linen, cotton cloth, and yarn), rice, leather goods, sports goods, carpets, rugs, chemicals & manufactures. Major partners--U.S. 22.6%, United Arab Emirates 8.9%, U.K. 5.8%, China 5.4%, Germany 4.7%. Imports--$21.26 billion: petroleum, petroleum products, machinery, plastics, paper and paper board, transportation equipment, edible oils, pulses, iron and steel, tea. Major partners--China 14.0%, Saudi Arabia 10.5%, United Arab Emirates 9.0%, Japan 6.2%, U.S. 5.1%, Kuwait 5.1%, Germany 4.9%.

====Reform====
[[File:Karachi Pakistan market.jpg|thumb|250px|Textile market on the sidewalks of Karachi.]]
The government started pursuing market-based economic reform policies in the early 1980s. These reforms began to take hold in 1988, when the government launched an ambitious IMF-assisted structural adjustment program in response to chronic and unsustainable fiscal and external account deficits. The government began to remove barriers to foreign trade and investment, reform the financial system, ease foreign exchange controls, and privatize dozens of state-owned enterprises.

Although the economy became more structurally sound, it remained vulnerable to external and internal shocks, such as in 1992-93, when devastating floods and political uncertainty combined to depress economic growth sharply. The Asian financial crisis seriously affected Pakistan's major markets for its textile exports. For example, average real GDP growth from 1992 to 1998 dipped to 4.1% annually. Economic reform also was set back by Pakistan's nuclear tests in May 1998, and the subsequent economic sanctions imposed by the G-7. International default was narrowly averted by the partial waiver of sanctions and the subsequent reinstatement of Pakistan's IMF enhanced structural adjustment facility/extended fund facility in early 1999, followed by Paris Club and London Club re-scheduling. After taking power in late 1999, President Musharraf instituted policies to stabilize Pakistan's macroeconomic situation. Pakistan continues to struggle with these reforms, having mixed success, especially in reducing its budget and current account deficits.

====Agriculture and Natural Resources====
[[Image:KASHMIR.jpg|200px|thumb|left|A flower seller in the Pakistani province of Kashmir]]
Pakistan's principal natural resources are arable land, water, hydroelectric potential, and natural gas reserves. About 28% of Pakistan's total land area is under cultivation and is watered by one of the largest irrigation systems in the world. Agriculture accounts for about 21% of GDP and employs about 42% of the labor force. The most important crops are cotton, wheat, rice, sugarcane, fruits, and vegetables, which together account for more than 75% of the value of total crop output. Despite intensive farming practices, Pakistan remains a net food importer. Pakistan exports rice, fish, fruits, and vegetables and imports vegetable oil, wheat, cotton (net importer), pulses, and consumer foods.

The economic importance of agriculture has declined since independence, when its share of GDP was around 53%. Following the poor harvest of 1993, the government introduced agriculture assistance policies, including increased support prices for many agricultural commodities and expanded availability of agricultural credit. From 1993 to 1997, real growth in the agricultural sector averaged 5.7% but declined to less than 3% in 2005. Agricultural reforms, including increased wheat and oilseed production, play a central role in the government's economic reform package. Heavy rains in 2005 provided the benefit of larger than average cotton, wheat, and rice crops, but also caused damage due to flooding and avalanches.

Pakistan has extensive energy resources, including fairly sizable natural gas reserves, some proven oil reserves, coal, and large hydropower potential. However, exploitation of energy resources has been slow due to a shortage of capital and domestic and international political constraints. For instance, domestic gas and petroleum production totals only about half the country's energy needs, and dependence on imported oil contributes to Pakistan's persistent trade deficits and shortage of foreign exchange. The government announced that privatization in the oil and gas sector is a priority.
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====Industry====
Pakistan's manufacturing sector accounts for about 25% of GDP. Cotton textile production and apparel manufacturing are Pakistan's largest industries, accounting for about 70% of total exports. Other major industries include food processing, beverages, construction materials, clothing, and paper products. As technology improves in the industrial sector, it continues to grow. In 2005/2006, the manufacturing sector grew by 8.6%. Despite government efforts to privatize large-scale parastatal units, the public sector continues to account for a significant proportion of industry. In the face of an increasing trade deficit, the government seeks to diversify the country's industrial base and bolster export industries. Net foreign investment in Pakistani industries is only 0.5% of GDP.

====Foreign Trade and Aid====
[[File:Islamabad wet road Pakistan.jpg|thumb|320px|left|[[Islamabad]].]]
Weak world demand for its exports and domestic political uncertainty have contributed to Pakistan's high trade deficit. In 2004, growth rebounded to approximately 6% with substantial improvement in public and external debt indicators and remained robust with 7.8% growth in 2005. Foreign reserves are at an all-time high of $11.5 billion. Pakistan's exports, which grew by 14.4% in 2005/2006, continue to be dominated by cotton textiles and apparel, despite government diversification efforts. Major imports include petroleum and petroleum products, edible oil, wheat, chemicals, fertilizer, capital goods, industrial raw materials, and consumer products, rising to 38.8% to $25.6 billion. External imbalance has left Pakistan with a growing foreign debt burden. The fiscal imbalance is reflected in a high level of total net public debt, which reached an estimated 92.6% of GDP in 2000-01, more than half involving external liabilities, but decreased to 72.7% in 2003. The fiscal deficit widened from 5.6% of GDP in 1994-95 to 7.7% in 1997-98 before declining to 4.5% in 2006. Despite a rise in tax collection, defense and development expenditure along with transfers to the provinces all rose in the 2006 budget, widening the deficit. Support for loss-making, state-owned enterprises and a weak domestic tax base are critical elements in the recurring fiscal deficits. The Pakistan Telecommunications Company Ltd. (PTCL) represented the largest of Pakistan’s privatization programs for 2005. Despite its economic and political difficulties, Pakistan has taken steps to liberalize its trade and investment regimes, either unilaterally or in the context of commitments made with the World Trade Organization (WTO), IMF, and the World Bank. In 2004-2005, efforts in several crucial areas seemingly intensified, resulting in Pakistan becoming a more open and secure market for its trading partners.

Pakistan has received significant loan/grant assistance from international financial institutions (e.g., the IMF, the World Bank, and the Asian Development Bank) and bilateral donors, particularly after it began using its military/financial resources in the war on terror. The United States pledged $3 billion for FY 2005 to FY 2009 in economic and military aid to Pakistan. In addition, the IMF and World Bank have pledged $1 billion in loans to Pakistan. In 2004 to 2007 alone, the World Bank has pledged over $500 million in investment projects.

==History==
[[Image:Badshahi Mosque, Pakistan.jpg|thumb|260px|Badshahi Mosque.]]
Pakistan, along with parts of western India, contains the archeological remains of an urban civilization dating back 4,500 years. Alexander the Great included the Indus Valley in his empire in 326 B.C., and his successors founded the Indo-Greek kingdom of Bactria based in what is today Afghanistan and extending to Peshawar. Following the rise of the Central Asian Kushan Empire in later centuries, the Buddhist culture of Afghanistan and Pakistan, centered on the city of Taxila just west of Islamabad, experienced a cultural renaissance known as the Gandhara period.

Pakistan's Islamic history began with the arrival of Muslim traders in the 8th century in Sindh. The collapse of the Mughal Empire in the 18th century provided an opportunity for the English East India Company to extend its control over much of the subcontinent. The Sikh adventurer, Ranjit Singh, carved out a dominion that extended from Kabul to Srinagar and Lahore, encompassing much of the northern area of modern Pakistan. British rule replaced the Sikhs in the first half of the 19th century. In a decision that had far-reaching consequences, the British permitted the Hindu Maharaja of Kashmir, a Sikh appointee, to continue in power.

Pakistan emerged from an extended period of agitation by Muslims in the subcontinent to express their national identity free from British colonial domination as well as domination by what they perceived as a Hindu-controlled Indian National Congress. Muslim anti-colonial leaders formed the All-India Muslim League in 1906. Initially, the League adopted the same objective as the Congress--self-government for India within the British Empire--but Congress and the League were unable to agree on a formula that would ensure the protection of Muslim religious, economic, and political rights.

====Pakistan and Partition====
[[File:Pashtun girl.jpg|thumb|Pashtun girl from the NWFP.]]
The idea of a separate Muslim state in the British Raj first emerged in the 1930s. On March 23, 1940, Muhammad Ali Jinnah, leader of the Muslim League, formally endorsed the "Lahore Resolution," calling for the creation of an independent state in regions where Muslims constituted a majority. At the end of World War II, the United Kingdom moved with increasing urgency to grant India independence. The Congress Party and the Muslim League, however, could not agree on the terms for a Constitution or establishing an interim government. In June 1947, the British Government declared that it would bestow full dominion status upon two successor states--India and Pakistan, formed from areas in the subcontinent in which Muslims were the majority population. Under this arrangement, the various princely states could freely join either India or Pakistan. Accordingly, on August 14, 1947 Pakistan, comprising West Pakistan with the provinces of Punjab, Sindh, Balochistan, and the Northwest Frontier Province (NWFP), and East Pakistan with the province of Bengal, became independent. East Pakistan later became the independent nation of Bangladesh in 1971.

The Maharaja of Kashmir was reluctant to make a decision on accession to either Pakistan or India. However, armed incursions into the state by tribesman from the NWFP led him to seek military assistance from India. The Maharaja signed accession papers in October 1947 and allowed Indian troops into the state. The Government of Pakistan, however, refused to recognize the accession and campaigned to reverse the decision. The status of Kashmir remains in dispute to this day.
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====Independence====
[[File:Muhammad Ali Jinnah.jpg|thumb|220px|Muhammad Ali Jinnah in his youth, in traditional dress.]]
With the death in 1948 of its first head of state, Muhammad Ali Jinnah, and the assassination in 1951 of its first prime minister, Liaqat Ali Khan, political instability and economic difficulty became prominent features of post-independence Pakistan. On October 7, 1958, President Iskander Mirza, with the support of the army, suspended the 1956 Constitution, imposed martial law, and canceled the elections scheduled for January 1959. Twenty days later the military sent Mirza into exile to Britain, and Gen. Mohammad Ayub Khan assumed control of a military dictatorship. After Pakistan's loss in the 1965 war against India, Ayub Khan's power declined. Subsequent political and economic grievances inspired agitation movements that compelled his resignation in March 1969. He handed over responsibility for governing to the commander in chief of the army, General Agha Mohammed Yahya Khan, who became President and Chief Martial Law Administrator.

General elections held in December 1970 polarized relations between the eastern and western sections of Pakistan. The Awami League, which advocated autonomy for the more populous East Pakistan, swept the East Pakistan seats to gain a majority in Pakistan as a whole. The Pakistan Peoples Party (PPP), founded and led by Ayub Khan's former Foreign Minister Zulfikar Ali Bhutto, won a majority of the seats in West Pakistan, but the country was completely split with neither major party having any support in the other area. Negotiations to form a coalition government broke down. On March 26, 1971, following a bloody crackdown by the Pakistan Army, Bengali nationalists declared an independent People's Republic of Bangladesh. As fighting grew between the army and the Bengalis, an estimated 10 million Bengalis sought refuge in India. On April 17, 1971, Bengali nationalists formed a provisional government in an area bordering India, and in November 1971, India sent its military into East Pakistan to intervene on the side of the Bangladeshis. On December 16, Pakistani forces surrendered in Dhaka, and East Pakistan became the new nation of Bangladesh. Yahya Khan then resigned the presidency and handed over leadership of the western part of Pakistan to Bhutto, who became President and the first civilian Chief Martial Law Administrator.

Bhutto moved decisively to restore national confidence and pursued an active foreign policy, taking a leading role in Islamic and Third World forums. Although Pakistan did not formally join the Non-Aligned Movement until 1979, the position of the Bhutto government coincided largely with that of the non-aligned nations. Domestically, Bhutto pursued a populist agenda and nationalized major industries and the banking system. In 1973, he promulgated a new Constitution accepted by most political elements and relinquished the presidency to become prime minister. Although Bhutto continued his populist and socialist rhetoric, he increasingly relied on Pakistan's urban industrialists and rural landlords. Over time the economy stagnated, largely as a result of the dislocation and uncertainty produced by Bhutto's frequently changing economic policies. When Bhutto proclaimed his own victory in the March 1977 national elections, the opposition Pakistan National Alliance (PNA) denounced the results as fraudulent and demanded new elections. Bhutto resisted and later arrested the PNA leadership.

====Muhammad Zia ul-Haq====
With increasing anti-government unrest, the army grew restive. On July 5, 1977, the military removed Bhutto from power and arrested him, declared martial law, and suspended portions of the 1973 Constitution. Chief of Army Staff Gen. Muhammad Zia ul-Haq became Chief Martial Law Administrator and promised to hold new elections within 3 months.

Zia released Bhutto and asserted that he could contest new elections scheduled for October 1977. However, after it became clear that Bhutto's popularity had survived his government, Zia postponed the elections and began criminal investigations of the senior PPP leadership. Subsequently, Bhutto was convicted and sentenced to death for an alleged conspiracy to murder a political opponent. Despite international appeals on his behalf, Bhutto was hanged on April 6, 1979.

Zia assumed the presidency and called for elections in November. However, fearful of a PPP victory, Zia banned political activity in October 1979, and postponed national elections. This same year Zia also passed into law the Hudood Ordinance, which provides for harsh Quranic punishments for violations of Shari'a (Islamic law).

In 1980, most center and left parties, led by the PPP, formed the Movement for the Restoration of Democracy (MRD). The MRD demanded Zia's resignation, an end to martial law, new elections, and restoration of the Constitution, as it existed before Zia's takeover. In early December 1984, President Zia proclaimed a national referendum for December 19 on his "Islamization" program. After non-party based polls were held for the National and Provincial Assemblies in 1985, President Zia appointed Muhammad Khan Junejo as the Prime Minister. He implicitly linked approval of "Islamization" with a mandate for his continued presidency. Zia's opponents, led by the MRD, boycotted the elections. When the government claimed a 63% turnout, with more than 90% approving the referendum, many observers questioned the figures.

====Sharif and Bhutto Civilian Governments====
[[File:B Bhutto.jpg|thumb|left|Benazir Bhutto.]]
On August 17, 1988, a plane carrying President Zia, American Ambassador Arnold Raphel, U.S. Brig. General Herbert Wassom, and 28 Pakistani military officers crashed on a return flight from a military equipment trial near Bahawalpur, killing all on board. In accordance with the Constitution, Chairman of the Senate Ghulam Ishaq Khan became Acting President and announced that elections scheduled for November 1988 would take place. Elections were held on a party basis. On one side was an eight-party alliance and on the other, the PPP. The PPP won 94 seats out of 207 and the Islamic Democratic Alliance (IJI) won 54. Muhammad Khan Junejo lost from his home constituency. The president was bound to invite the PPP to from the government, but he delayed doing so for two weeks in order to give the IJI time to muster the support of other groups. Ultimately, the president asked PPP Co-chairperson [[Benazir Bhutto]] to form a government.

The PPP, under Benazir Bhutto's leadership, succeeded in forming a coalition government with several smaller parties, including the Muttahida Qaumi Movement (MQM).

Differing interpretations of constitutional authority, debates over the powers of the central government relative to those of the provinces, and the antagonistic relationship between the Bhutto administration and opposition governments in Punjab and Balochistan seriously impeded social and economic reform programs. Ethnic conflict, primarily in Sindh province, exacerbated these problems. A fragmentation in the governing coalition and the military's reluctance to support an apparently ineffectual and corrupt government were accompanied by a significant deterioration in law and order.

In August 1990, President Khan, citing his powers under the eighth amendment to the Constitution, dismissed the Bhutto government and dissolved the national and provincial assemblies. New elections, held in October 1990, confirmed the political ascendancy of the IJI. In addition to a two-thirds majority in the National Assembly, the alliance won control of all four provincial parliaments and enjoyed the support of the military and of President Khan. Muhammad Nawaz Sharif, as leader of the PML, the most prominent party in the IJI, was elected prime minister by the National Assembly.

Sharif emerged as the most secure and powerful Pakistani prime minister since the mid-1970s. Under his rule, the IJI achieved several important political victories. The implementation of Sharif's economic reform program; involving privatization, deregulation, and encouragement of private sector economic growth, greatly improved Pakistan's economic performance and business climate. The passage into law in May 1991 of a Shari'a bill, providing for widespread Islamization, legitimized the IJI government among much of Pakistani society.

However, Nawaz Sharif was not able to reconcile the different objectives of IJI's constituent parties. The largest religious party, Jamaat-i-Islami (JI), abandoned the alliance because of its antagonism to what it regarded as PML hegemony. The government was weakened further by the military's suppression of the MQM, which had entered into coalition with the IJI to contain PPP influence, and allegations of corruption directed at Nawaz Sharif. In April 1993, President Khan, citing "maladministration, corruption, and nepotism" and espousal of political violence, dismissed the Sharif government, but the following month the Pakistan Supreme Court reinstated the National Assembly and the Nawaz Sharif government. Continued tensions between Sharif and Khan resulted in governmental gridlock and the Chief of Army Staff brokered an arrangement under which both the President and the Prime Minister resigned their offices in July 1993.

An interim government, headed by Moeen Qureshi, a former World Bank Vice President, took office with a mandate to hold national and provincial assembly elections in October. Despite its brief term, the Qureshi government adopted political, economic, and social reforms that generated considerable domestic support and foreign admiration.

In the October 1993 elections, the PPP won a plurality of seats in the National Assembly, and Benazir Bhutto was asked to form a government. However, because it did not acquire a majority in the National Assembly, the PPP's control of the government depended upon the continued support of numerous independent parties, particularly the PML/J (Pakistan Muslim League-Junejo). The unfavorable circumstances surrounding PPP rule--the imperative of preserving a coalition government, the formidable opposition of Nawaz Sharif's PML/N (Pakistani Muslim League-Nawaz) movement, and the insecure provincial administrations--presented significant difficulties for the government of Prime Minister Bhutto. However, the election of Prime Minister Bhutto's close associate, Farooq Leghari, as President in November 1993 gave her a stronger power base.
[[File:Faisal mosque Pakistan.jpg|thumb|290px|Faisal mosque, [[Islamabad]].]]
In November 1996, President Leghari dismissed the Bhutto government, charging it with corruption, mismanagement of the economy, and implication in extrajudicial killings in Karachi. Elections in February 1997, resulted in an overwhelming victory for the PML/N, and President Leghari called upon Nawaz Sharif to form a government. In March 1997, with the unanimous support of the National Assembly, Sharif amended the Constitution, stripping the President of the power to dismiss the government and making his power to appoint military service chiefs and provincial governors contingent on the "advice" of the Prime Minister. Another amendment prohibited elected members from "floor crossing" or voting against party positions. The Sharif government also engaged in a protracted dispute with the judiciary, culminating in the storming of the Supreme Court by ruling party loyalists and the engineered dismissal of the Chief Justice and the resignation of President Leghari in December 1997.

The new President elected by Parliament, Rafiq Tarar, was a close associate of the Prime Minister. A one-sided, anti-corruption campaign was used to target opposition politicians and critics of the regime. Similarly, the government moved to restrict press criticism and ordered the arrest and beating of prominent journalists. As domestic criticism of Sharif's administration intensified, Sharif attempted to replace Chief of Army Staff General Pervez Musharraf on October 12, 1999, with a family loyalist, Director General of the Interservice Intelligence Directorate, Lt. Gen. Ziauddin. Although General Musharraf was out of the country at the time, the army moved quickly to depose Sharif.

====Pervez Musharraf====
[[File:Pervez Musharraf.jpg|thumb|280px|[[Pervez Musharraf]].]]
Following the October 12 ouster of the government of Prime Minister Sharif, the military-led government stated its intention to restructure the political and electoral systems. On October 14, 1999, General Musharraf declared a state of emergency and issued the Provisional Constitutional Order (PCO), which suspended the federal and provincial Parliaments, held the Constitution in abeyance, and designated Musharraf as Chief Executive. Musharraf appointed an eight-member National Security Council to function as Pakistan's supreme governing body, with mixed military/civilian appointees; a civilian Cabinet; and a National Reconstruction Bureau to formulate structural reforms. On May 12, 2000, Pakistan's Supreme Court unanimously validated the October 1999 coup and granted Musharraf executive and legislative authority for 3 years from the coup date. On June 20, 2001, Musharraf named himself as president and was sworn in.

After the World Trade Center and the Pentagon were attacked on September 11, 2001, Musharraf pledged complete cooperation with the United States in the war on terror, which included locating and shutting down terrorist training camps within Pakistan's borders, cracking down on extremist groups and withdrawing support for the Taliban regime in Afghanistan. In a referendum held on April 30, 2002, Musharraf's presidency was extended by five more years. The handover from military to civilian rule came with parliamentary elections in November 2002, and the appointment of a civilian prime minister, Mir Zafarullah Khan Jamali. Having previously promised to give up his army post and become a civilian president, General Musharraf announced in late 2004 that he would retain his military role. In August 2004, Shaukat Aziz was sworn in as prime minister, having won a parliamentary vote of confidence, 191 of 342 votes, in which the opposition abstained.

On October 8, 2005 a magnitude 7.6 earthquake struck Pakistan, India, and Afghanistan. The epicenter of the earthquake was near Muzaffarabad, the capital of Pakistani-administered Kashmir, and approximately 60 miles north-northeast of Islamabad. An estimated 75,000 people were killed and 2.5 million people were left homeless. The disaster of such a huge magnitude galvanized an international rescue and reconstruction effort in support of the affected region. The earthquake cost Pakistan $1.1 billion on resettling those affected.

====Assassination of Benazir Bhutto====
Bhutto returned to Pakistan in the fall of 2007 after a self-imposed exile, seeking to win popular support for a return to office as prime minister, in addition to highlighting the military rule of Musharraf. On December 27, 2007, she was assassinated at a rally in Rawalpindi.

==Further reading==
* Jones, Owen Bennett. ''Pakistan: Eye of the Storm'' (3rd ed. 2009)
* Nawaz, Shuja. ''Crossed Swords: Pakistan, Its Army, and the Wars Within'' (2008) 600pp [http://www.amazon.com/Crossed-Swords-Pakistan-Army-Within/dp/0195476603/ref=pd_sim_b_1 excerpt and text search]
* Shaikh, Farzana. ''Making Sense of Pakistan'' (2009) [http://www.amazon.com/Making-Sense-Pakistan-Columbia-Hurst/dp/023114962X/ref=sr_1_1?ie=UTF8&s=books&qid=1253054909&sr=1-1 excerpt and text search]

*[http://news.bbc.co.uk/2/hi/south_asia/6663305.stm Pakistan Christians demand help], BBC News, 16 May 2007.

==See Also==
* [[Asian painting]]

==External links==
*[http://www.fas.org/blog/ssp/2007/05/pakistani_nuclear_forces_2007.php Pakistani Nuclear Forces, 2007]
*[http://www.foreignpolicy.com/articles/2010/10/07/the_black_hole_of_pakistan The Black Hole of Pakistan.]

{| style="width: 100%; background:transparent; border: 2px solid #000099;" cellspacing="0" cellpadding="1"
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{{Asian Countries}}
[[Category:Pakistan]]
[[Category:Indian History]]
[[Category:Afghanistan War]]

==References==
{{reflist|2}}

{{Terrorism}}
{{Asian Countries}}

[[Category:Middle Eastern Countries]]
[[Category:Muslim-Majority Countries]]
[[Category:Islam]]
[[Category:Terrorist Organizations]]
[[Category:Terrorism]]
[[Category:Anti-American]]
[[Category:Threats]]
[[Category:Man-Made Disasters]]
[[Category:Welfare State]]
[[Category:Police State]]
[[Category:Gun control]]
[[Category:Oppression]]

India

2015-01-14T04:21:43Z

GoraGurung: /* See Also */

{{Country
|name =''भारत गणराज्य Bhārat Gaharājya''
|map =India rel01.jpg
|map2 =India location.png
|flag =Flag of India svg.png
|arms =Emblem of India.png
|capital =New Delhi
|capital-raw =
|government =Federal Republic
|government-raw =
|language =Hindi, English
|king =
|queen =
|monarch-raw =
|president =Pranab Mukherjee
|president-raw =
|chancellor =
|chancellor-raw =
|pm =Narendra Modi
|pm-raw =
|area =3,287,590 sq mi
|pop =1,189,866,154 (2011)
|pop-basis =
|gdp =
|gdp-year =$4.2 trillion (2006)
|gdp-pc =$3,800 (2006)
|currency =[[rupee]]
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}}
The '''Republic of India''' is a major [[Social democracy|social democratic]] nation located in [[South Asia]] with a [[population]] of 1.1 billion people. It spans from the [[Himalayas]] in the north to the [[Indian Ocean]]. It borders [[China]], [[Pakistan]], [[Bangladesh]], [[Nepal]], [[Bhutan]] and [[Myanmar]]. India is the 7th largest country in the world in terms of area and second most populous country (standing at around 1.1 billion according to 2006 estimate), only behind China. Founded on August 15th, 1947, the country was known as the ''Union of India'' until it re-declared itself a [[democratic republic]]. Though India is the world's fourth largest economy in terms of purchasing power parity, it has high levels of [[poverty]], [[illiteracy]], [[overpopulation]], [[corruption]] and [[crime]].

==Etymology==
The name "India" came from the word 'Indus', which derives from the [[Persian]] word "[[Hindu]]" which was used to describe the Sindhu river (now known as the [[Indus]]).

==People==
[[File:Indians.jpg|right]]
Although India occupies only 2.4% of the world's land area, it supports over 15% of the world's population; only China has a larger population. India's median age is 25, one of the youngest among large economies. About 70% live in more than 550,000 villages, and the remainder in more than 200 towns and cities. Over the thousands of years of its history, India has been invaded from the Iranian plateau, Central Asia, Arabia, Afghanistan, and the West; Indian people and culture have absorbed and modified these influences to produce a remarkable racial and cultural synthesis.

Religion, [[caste]], and language are major determinants of social and political organization in India today. However, with more job opportunities in the private sector and better chances of upward social mobility, India has begun a quiet social transformation in this area. The government has recognized 18 official languages;<ref>"In the early 1900s ... English was ascendant in India. ... It was the lingua franca to which Indians, who spoke more than a dozen distinct languages, turned when they did not otherwise understand one another." ([http://www.amazon.com/The-Man-Who-Knew-Infinity/dp/0671750615 ''The Man Who Knew Infinity''], page 25 - [[Robert Kanigel]])</ref> Hindi, the national language, is the most widely spoken, although English is a national lingua franca. Although 81% of its people are Hindu, India also is the home of more than 138 million Muslims--one of the world's largest [[Muslim]] populations. The population also includes [[Christian]]s, [[Sikh]]s, [[Jain]]s, [[Buddhist]]s, and [[Parsi]]s.

The Hindu [[caste system]] reflects Indian occupational and socially defined hierarchies. Ancient [[Sanskrit]] sources divide society into four major categories, priests ([[Brahmin]]), warriors ([[Kshatriya]]), traders-[[merchant]]s ([[Vaishya]]) and farmers/laborers ([[Shudra]]). Although these categories are understood throughout India, they describe reality only in the most general terms. They omit, for example, the tribes and those once known as "[[untouchables]]." In reality, Indian society is divided into thousands of jatis--local, endogamous groups based on occupation--and organized hierarchically according to complex ideas of purity and pollution. Discrimination based on caste is officially illegal, but remains prevalent, especially in rural areas. Nevertheless, the government has made strong efforts to minimize the importance of caste through active affirmative action and social policies. Moreover, caste has been diluted if not subsumed in the economically prosperous and heterogeneous cities, where an increasing percentage of India's population lives. In the countryside, expanding education, land reform and economic opportunity through access to information, communication, transport, and credit have lessened the harshest elements of the caste system.

==Religions==

===Overview===
[[File:Indian family going to church.jpg|thumb|Indian family going to church.]]
India has over 900 million [[Hindu]]s, 150 millions [[Muslim]]s, 25 million [[Christian]]s and 20 million [[Sikh]]s among the many religious groups that make up the country<ref>https://www.cia.gov/library/publications/the-world-factbook/geos/in.html</ref> including communities of [[Jain]]s, [[Buddhist]]s, and [[Bahai]].

India is the region where four major world religions were founded:
*[[Hinduism]]
*[[Buddhism]]
*[[Jainism]]
*[[Sikhism]]

Today, Hinduism and Buddhism are the world's third- and fourth-largest religions respectively, after Christianity and Islam, with a collective 1.4 billion followers.

===Hinduism in India===
[[Image:Krishna a la flute.gif|right|180px]]
Hinduism as it is identified today has existed in India for over 4000 years; in the past it had spread to the rest of South-East [[Asia]] and [[Indonesia]], although Hinduism is practiced outside India today only in the island of [[Bali]].

The beliefs and practices of the pre-classical era (1500–500BC) are called the "historical Vedic religion". Modern Hinduism grew out of the [[Vedas]],a large corpus of texts originating in Ancient India. They form the oldest layer of [[Sanskrit]] literature and the oldest sacred texts of Hinduism.[, the oldest of which is the [[Rigveda]], dated to 1700–1100BC. The Vedas center on worship of deities such as [[Indra]], Varuna and Agni, and on the Soma ritual. They performed fire-sacrifices, called yajña and chanted Vedic mantras but did not build temples or icons. The oldest Vedic traditions exhibit strong similarities to [[Zoroastrian]]ism and with other Indo-European religions. During the Epic and Puranic periods, the earliest versions of the epic poems [[Ramayana]] and [[Mahabharata]] were written roughly from 500–100BC, although these were orally transmitted for centuries prior to this period. The epics contain mythological stories about the rulers and wars of ancient India, and are interspersed with religious and philosophical treatises. The later Puranas recount tales about devas and devis, their interactions with humans and their battles against demons.

===Buddhism in India===

Buddhism originated in Eastern India in the 6th century B.C. and spread to the rest of Asia through individual and organized missionaries, although there are few practicing Buddhists left in India today.

===Jainism in India===

Jainism originated in Eastern India in the 6th century B.C. and spread to the rest of India; today they are mostly concentrated in the Southern and Western parts of the country.

===Sikhism in India===

Sikhism is a monotheistic religion that originated in India in the 16th century A.D.

===Other Religions in India===

[[Christianity]] arrived in India in the first century A.D., possibly through the travels of the [[Apostle Thomas]], whose tomb in the Indian city of Chennai is a major pilgrimage site for Christians in India.

[[Islam]] arrived in the latter half of the 8th century A.D. as a consequence of both war and trade. It continued to spread with invasions, wars and forced conversions by Afghans and Turkic Mongols. They slowly integrated into the society and formed India's Islamic tradition. The [[Taj Mahal]], India's national monument, was built by a Muslim emperor named Shah Jahan. Islam is practiced by around 13.4% of all Indians.
[[Image:Taj Mahal.jpg|thumb|Taj Mahal]]

Although small in number, India does have a Jewish community. The first identifiably [[Judaism|Jewish]] migrants arrived in India as the Bene Israel group. There is some debate as to the Jewishness of a possibly older group of Indians in the Northeastern part of the country called the Bnei Menashe.

===Religious Persecution===

While for many years India has been known as an area of the world where a melting pot of religions could be practiced freely, troubling and persistent persecution against [[Christian]]s by the [[Hindu]] majority arose in the 1990s and has continued since that time. In October 2008, 38 Christians were killed and 30,000 fled from efforts of Hindu nationalist militants to force them to convert to Hinduism.<ref>http://www.msnbc.msn.com/id/27380721</ref>

There are also frequent attacks upon Indian Christians by [[Muslims]] in India, who make up a large proportion of the population. They subject the Indian Christian population to harrassment and intimidation, particularly those who were previously Muslims. In 2006, a Muslim who converted to Christianity in the Indian state of Kashmir was shot dead by [[Jihadism|Jihadist]] militants.<ref>http://www.speroforum.com/site/article.asp?id=6705</ref>

==Government==
According to its Constitution, India is a "sovereign, socialist, secular, democratic republic." Like the United States, India has a federal form of government. However, the central government in India has greater power in relation to its states, and has adopted a British-style parliamentary system.

The government exercises its broad administrative powers in the name of the president, whose duties are largely ceremonial. A special electoral college elects the president and vice president indirectly for 5-year terms. Their terms are staggered, and the vice president does not automatically become president following the death or removal from office of the president.

Real national executive power is centered in the Council of Ministers (Cabinet), led by the prime minister. The president appoints the prime minister, who is designated by legislators of the political party or coalition commanding a parliamentary majority in the Lok Sabha (lower house). The president then appoints subordinate ministers on the advice of the prime minister.
[[File:Delhi Tomb of Imam Zamin Qutub Minar Complex.jpg|thumb|left|Tomb of Imam Zamin Qutub, Delhi.]]
India's bicameral Parliament consists of the Rajya Sabha (Council of States) and the Lok Sabha (House of the People). The Council of Ministers is responsible to the Lok Sabha.

The legislatures of the states and union territories elect 233 members to the Rajya Sabha, and the president appoints another 12. The members of the Rajya Sabha serve 6-year terms, with one-third up for election every 2 years. The Lok Sabha consists of 545 members, who serve 5-year terms; 543 are directly elected, and two are appointed.

India's independent judicial system began under the British, and its concepts and procedures resemble those of Anglo-Saxon countries. The Supreme Court consists of a chief justice and 25 other justices, all appointed by the president on the advice of the prime minister.

India has 28 states* and 7 union territories. At the state level, some legislatures are bicameral, patterned after the two houses of the national parliament. The states' chief ministers are responsible to the legislatures in the same way the prime minister is responsible to Parliament.

Each state also has a presidentially appointed governor, who may assume certain broad powers when directed by the central government. The central government exerts greater control over the union territories than over the states, although some territories have gained more power to administer their own affairs. Local governments in India have less autonomy than their counterparts in the United States. Some states are trying to revitalize the traditional village councils, or panchayats, to promote popular democratic participation at the village level, where much of the population still lives. Over half a million panchayats exist throughout India.

 

==Principal Government Officials==
*President--Pranab Mukherjee
*Vice President--Mohammed Hamid Ansari
*Prime Minister--Narendra Modi
*Home Minister--Sushilkumar Shinde
*Minister of External Affairs--Salman Khurshid
*Ambassador to the U.S.--Nirupama Rao
*Ambassador to the UN--Hardeep Singh Puri

===Politics ===
The governing coalition led by the Indian National Congress sailed to a decisive victory in India’s parliamentary elections in May 2009, adding 57 seats. The election gave a second term to prime minister Manmohan Singh, age 77, a soft-spoken economic reformer, and ended the prospect of political instability in the world’s most populous democracy. The election confirmed that Sonia Gandhi, age 62, dominates the Congress Party. She is the the Italian-born widow of the assassinated former prime minister [[Rajiv Gandhi]] and the daughter-in-law of the prime minister before him, [[Indira Gandhi]], who was also assassinated. The Congress-led coalition built its near-majority with an appeal to the rural poor. During its first term, buoyed by robust economic growth, it used record government revenues to increase social spending, not just raising health and education budgets, but also starting an ambitious public works program in the countryside and a costly loan repayment waiver for farmers. Mrs. Gandhi won support by casting herself as a leader who relinquished power, turning down her party’s appeals to become prime minister, first in 2004 and again this time. Instead, she chose the soft-spoken economist, Mr. Singh, and between them, they controlled the party and the government. She took care of the politics of keeping the coalition together, while he served as the chief executive who followed her advice.

[[File:India-14.jpg|thumb|390px]]
Emerging as the nation's single largest party in the April/May 2004 Lok Sabha election, Congress currently leads a coalition government under Prime Minister Manmohan Singh. Party President Sonia Gandhi was re-elected by the Party National Executive in May 2005. Also a Member of Parliament, she heads the Congress Lok Sabha delegation. Congress prides itself as a secular, left of center party, with a long history of political dominance. Although its performance in national elections had steadily declined during the last 12 years, its surprise victory in 2004 was a result of recruiting strong allies into the UPA, the anti-incumbency factor among voters, and its courtship of India's many poor, rural and Muslim voters. Congress political fortunes suffered badly in the 1990s, as many traditional supporters were lost to emerging regional and caste-based parties, such as the Bahujan Samaj Party and the Samajwadi Party, but have rebounded since its May 2004 ascension to power. It currently rules either directly or in coalition with its allies in 9 states. In November 2005, the Congress regained the Chief Ministership of Jammu and Kashmir state, under a power-sharing agreement.

The Bharatiya Janata Party (BJP), led by Rajnath Singh, holds the second-largest number of seats in the Lok Sabha. Former Prime Minister Atal Bihari Vajpayee serves as Chairman of the BJP Parliamentary Party, and former Deputy Prime Minister L.K. Advani is Leader of the Opposition. The Hindu-nationalist BJP draws its political strength mainly from the "Hindi Belt" in the northern and western regions of India.

The party holds power in the states of Gujarat, Madhya Pradesh, Rajasthan, Chhattisgarh, and Orissa--in coalition with the Biju Janata Dal. Popularly viewed as the party of the northern upper caste and trading communities, the BJP made strong inroads into lower castes in recent national and state assembly elections. The party must balance the competing interests of Hindu nationalists, (who advocate construction of a temple on a disputed site in Ayodhya, and other primarily religious issues), and center-right modernizers who see the BJP as a party of economic and political reform.
[[Image:Haveli in Mandawa, India.jpg|240px|right|Haveli in Mandawa.]]

Four Communist and Marxist parties are united in a bloc called the "Left Front," which controls 57 parliamentary seats. The Left Front rules the states of West Bengal and Kerala. Although it has not joined the government, Left Front support provides the crucial seats necessary for the UPA to retain power in New Delhi; without its support, the UPA government would fall. It advocates a secular and Communist ideology and opposes many aspects of economic liberalization and globalization, resulting in dissonance with Prime Minister Singh's liberal economic approach.

==Foreign Relations==
:''See also: [[Foreign relations of India]]''

India's size, population, and strategic location give it a prominent voice in international affairs, and its growing economic strength, military prowess, and scientific and technical capacity give it added weight. The end of the Cold War dramatically affected Indian foreign policy. India remains a leader of the developing world and the Non-Aligned Movement (NAM). India is now strengthening its political and commercial ties with the United States, Japan, the European Union, Iran, China, and the Association of Southeast Asian Nations. India is an active member of the South Asian Association for Regional Cooperation (SAARC).

Always an active member of the United Nations, India now seeks a permanent seat on the UN Security Council. India has a long tradition of participating in UN peacekeeping operations.

==Bilateral and Regional Relations==

===Tense relations with Pakistan===

India and Pakistan have been locked in a tense rivalry since the partition of the subcontinent upon achieving independence from Great Britain in 1947. The principal source of contention has been Kashmir, whose Hindu Maharaja at that time chose to join India, although a majority of his subjects were Muslim. India maintains that his decision and subsequent elections in Kashmir have made it an integral part of India. This dispute triggered wars between the two countries in 1947 and 1965 and provoked the Kargil conflict in 1999.

Pakistan and India fought a war in December 1971 following a political crisis in what was then East Pakistan and the flight of millions of Bengali refugees to India. The brief conflict left the situation largely unchanged in the west, where the two armies reached an impasse, but a decisive Indian victory in the east resulted in the creation of Bangladesh.
[[File:Iran Pakistan India gas pipeline.JPG|thumb|left|300px|Iran-Pakistan-India gas pipeline.]]
Since the 1971 war, Pakistan and India have made slow progress toward normalization of relations. In July 1972, Indian Prime Minister Indira Gandhi and Pakistani President Zulfikar Ali Bhutto met in the Indian hill station of Simla. They signed an agreement by which India would return all personnel and captured territory in the west and the two countries would "settle their differences by peaceful means through bilateral negotiations." Diplomatic and trade relations were re-established in 1976.

The 1979 Soviet invasion of Afghanistan caused new strains between India and Pakistan. Pakistan supported the Afghan resistance, while India implicitly supported the Soviet occupation. In the following eight years, India voiced increasing concern over Pakistani arms purchases, U.S. military aid to Pakistan, and Pakistan's nuclear weapons program. In an effort to curtail tensions, the two countries formed a joint commission. In December 1988, Prime Ministers Rajiv Gandhi and Benazir Bhutto concluded a pact not to attack each other's nuclear facilities and initiated agreements on cultural exchanges and civil aviation.

In 1997, high-level Indo-Pakistani talks resumed after a three-year pause. The Prime Ministers of India and Pakistan met twice, and the foreign secretaries conducted three rounds of talks. In June 1997 at Lahore, the foreign secretaries identified eight "outstanding issues" around which continuing talks would be focused. The dispute over the status of Jammu and Kashmir, an issue since partition, remains the major stumbling block in their dialogue. India maintains that the entire former princely state is an integral part of the Indian union, while Pakistan insists upon the implementation of UN resolutions calling for self-determination for the people of the state.

In September 1997, the talks broke down over the structure of how to deal with the issues of Kashmir and peace and security. Pakistan advocated that separate working groups treat each issue. India responded that the two issues be taken up along with six others on a simultaneous basis. In May 1998 India, and then Pakistan, conducted nuclear tests. Attempts to restart dialogue between the two nations were given a major boost by the February 1999 meeting of both Prime Ministers in Lahore and their signing of three agreements. These efforts were stalled by the intrusion of Pakistani-backed forces into Indian-held territory near Kargil in May 1999 (that nearly turned into full scale war), and by the military coup in Pakistan that overturned the Nawaz Sharif government in October the same year. In July 2001, Mr. Vajpayee and General Pervez Musharraf, leader of Pakistan after the coup, met in Agra, but talks ended after two days without result.

After an attack on the Indian Parliament in December 2001, India-Pakistan relations cooled further as India accused Pakistan of involvement. Tensions increased, fueled by killings in Jammu and Kashmir, peaking in a troop buildup by both sides in early 2002.

Prime Minister Vajpayee's April 18, 2003 speech in Srinagar (Kashmir) revived bilateral efforts to normalize relations. In November 2003, Prime Minister Vajpayee and President Musharraf agreed to a ceasefire, which still holds, along the Line-of-Control in Jammu and Kashmir. After a series of confidence building measures, Prime Minister Vajpayee and President Musharraf met on the sidelines of the January 2004 SAARC summit in Islamabad and agreed to commence a Composite Dialogue addressing outstanding issues between India and Pakistan, including Kashmir. The UPA government has continued the Composite Dialogue with Pakistan.

In February 2004, India and Pakistan agreed to restart the "2+6" Composite Dialogue formula, which provides for talks on Peace and Security and Jammu and Kashmir, followed by technical and Secretary-level discussions on six other bilateral disputes: Siachen Glacier, Wuller Barrage/Tulbul Navigation Project, Sir Creek estuary, Terrorism and Drug Trafficking, Economic and Commercial cooperation, and the Promotion of Friendly Exchanges in various fields. The Foreign Secretary talks resumed in November 2006, after a three-month delay following the July 11, 2006 terrorist bombings in Mumbai. The meeting generated modest progress, with the two sides agreeing to establish a joint mechanism on counter-terrorism and agreeing to a follow-on meeting in February 2007. The restart of the Composite Dialogue process is especially significant, given the almost six years that transpired since the two sides agreed to this formula in 1997-98.

Following the October 2005 earthquake in Kashmir, the two governments coordinated relief efforts and opened access points along the Line-of-Control to allow relief supplies to flow from India to Pakistan and to allow Kashmiris from both sides to visit one another.

===South Asian Association for Regional Cooperation (SAARC)===

Certain aspects of India's relations within the subcontinent are conducted through the South Asian Association for Regional Cooperation (SAARC). Its members are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, with the People's Republic of China, Iran, Japan, European Union, Republic of Korea, and the U.S. as observers. Established in 1985, SAARC encourages cooperation in agriculture, rural development, science and technology, culture, health, population control, narcotics, and terrorism.

SAARC has intentionally stressed these "core issues" and avoided those which could prove divisive, although political dialogue is often conducted on the margins of SAARC meetings. In 1993, India and its SAARC partners signed an agreement gradually to lower tariffs within the region. Forward movement in SAARC had slowed because of tension between India and Pakistan, and the SAARC summit scheduled for 1999 was not held until January 2002. In addition, to boost the process of normalizing India's relationship with Pakistan, the January 2004 SAARC summit in Islamabad produced an agreement to establish a South Asia Free Trade Area (SAFTA). All the member governments have ratified SAFTA, which was slated to come into force on January 1, 2006, with a series of graduated tariff cuts through 2015. As of December 2006, however, the FTA partners were still negotiating sensitive product lists, rules of origin, and technical assistance. India hosted the 2007 SAARC summit, which called for greater regional cooperation on trade, environmental, social, and counterterrorism issues.

===Relations with China===

Despite suspicions remaining from a 1962 border conflict between India and [[China]] and continuing territorial/boundary disputes, Sino-Indian relations have improved gradually since 1988. Both countries have sought to reduce tensions along the frontier, expand trade and cultural ties, and normalize relations. Their bilateral trade reached $24 billion in 2006. China is India's second-largest trading partner behind the U.S.

A series of high-level visits between the two nations has improved relations. In December 1996, Chinese President Jiang Zemin visited India on a tour of South Asia. While in New Delhi, he and the Indian Prime Minister signed a series of confidence-building measures along the disputed border, including troop reductions and weapons limitations.

Chinese Premier Wen Jiabao invited Prime Minister Vajpayee to visit China in June 2003. They recognized the common goals of both countries and made the commitment to build a "long-term constructive and cooperative partnership" to peacefully promote their mutual political and economic goals without encroaching upon their good relations with other countries. In Beijing, Prime Minister Vajpayee proposed the designation of special representatives to discuss the border dispute at the political level, a process that is still under way.

In November 2006, President Hu Jintao made an official state visit to India, further cementing Sino-Indian relations. India and China are building on growing economic ties to improve other aspects of their relationship such as counter-terrorism, energy, and trade. In another symbol of improved ties, the two countries opened the Nathu La Pass to bilateral trade in July 2006 for the first time in 40 years. Though it is the first direct land trade route in decades, trade is expected to be local and small since the pass is open only four months a year.

===Russia===

The collapse of the Soviet Union in 1991 and the emergence of the Commonwealth of Independent States (CIS) had major repercussions for Indian foreign policy. India's substantial trade with the region plummeted after the Soviet collapse and has yet to recover. Longstanding military supply relationships were similarly disrupted due to questions over financing. Russia nonetheless remains India's largest supplier of military systems and spare parts.

Russia and India have not renewed the 1971 Indo-Soviet Peace and Friendship Treaty and follow what both describe as a more pragmatic, less ideological relationship. The visit of Russian President Boris Yeltsin to India in January 1993 helped cement this new relationship. The pace of high-level visits has since increased, as has discussion of major defense purchases. UPA leader Sonia Gandhi and Prime Minister Singh visited Russia in July 2005. President Vladimir Putin traveled to India in January 2007 to attend an Indo-Russia Summit and was the guest of honor at India's Republic Day celebrations.

==Defense==
The supreme command of the Indian armed forces is vested in the President of India. Policies concerning India's defense, and the armed forces as a whole, are formulated and confirmed by the Cabinet.

===Indian Army===

The Indian Army numbers over 1.1 million strong and fields 34 divisions. Its primary task is to safeguard the territorial integrity of the country against external threats. The Army has been heavily committed in the recent past to counterterrorism operations in Jammu and Kashmir, as well as the in the Northeast. Its current modernization program focuses on obtaining equipment to be used in combating terror. The Army often provides aid to civil authorities and assists the government in organizing relief operations.

===Indian Navy===

The Indian Navy is by far the most capable navy in the region. The Navy's primary missions are the defense of India and of India's vital sea lines of communication. India relies on the sea for 90% of its oil and natural gas and over 90% of its foreign trade. The Navy currently operates one aircraft carrier with two on order, 14 submarines, and 15 major surface combatants. It is capable of projecting power within the Indian Ocean basin and occasionally operates in the South China Sea, the Mediterranean Sea and the Arabian Gulf. Fleet introduction of the Brahmos cruise missile and the possible lease of nuclear submarines from Russia will add significantly to the Indian Navy's flexibility and striking power.

Although small, the Indian Coast Guard has been expanding rapidly in recent years. Indian Navy officers typically fill top Coast Guard positions to ensure coordination between the two services. India's Coast Guard is responsible for control of India's huge exclusive economic zone.

===Indian Air Force===

The Indian Air Force is becoming a 21st century force through modernization, new tactics and the acquisition of modern aircraft, such as the SU-30MKI, a new advanced jet trainer (BAE Hawk) and the indigenously produced advanced light [[helicopter]] (Dhruv). In June 2007, the Indian Government announced intentions to release a request for proposals for 126 multi-role combat aircraft for the Indian Air Force.

==Economy==

===General overview===
[[File:India...jpg|right|340px]]

India's population is estimated at more than 1.1 billion and is growing at 1.3% a year. It has the world's 12th largest economy--and the third largest in [[Asia]] behind [[Japan]] and [[China]]--with total [[GDP]] of around $1 trillion ($1,000 billion). Services, industry, and [[agriculture]] account for 55%, 27%, and 18% of GDP respectively. Nearly two-thirds of the population depends on agriculture for its livelihood. 700 million Indians live on $2 per day or less, but there is a large and growing [[middle class]] of 325-350 million with disposable income for consumer goods.

India is continuing to move forward with market-oriented economic reforms that began in 1991. Recent reforms include liberalized foreign investment and exchange regimes, industrial decontrol, significant reductions in [[tariff]]s and other trade barriers, reform and modernization of the financial sector, significant adjustments in government monetary and fiscal policies, and safeguarding intellectual property rights.

Real GDP growth for the fiscal year ending March 31, 2007 was 9.4%, up from 9.0% growth in the previous year. Growth for the year ending March 31, 2008 is expected to be between 8.5-9.0%. Foreign portfolio and direct investment inflows have risen significantly in recent years. They have contributed to $255 billion in foreign exchange reserves by June 2007. Government receipts from privatization were about $3 billion in fiscal year 2003-2004, but the privatization program has stalled since then.

Economic growth is constrained by inadequate infrastructure, a cumbersome bureaucracy, corruption, labor market rigidities, regulatory and foreign investment controls, the "reservation" of key products for small-scale industries, and high (although declining) fiscal deficits. The outlook for further trade liberalization is mixed. India eliminated quotas on 1,420 consumer imports in 2002 and has incrementally lowered non-agricultural customs duties in recent successive budgets. However, the tax structure is complex, with compounding effects of various taxes.

The [[United States]] is India's largest trading partner. Bilateral trade in 2006 was $32 billion. Principal U.S. exports are diagnostic or lab reagents, aircraft and parts, advanced machinery, [[cotton]], [[fertilizer]]s, ferrous waste/scrap metal, and computer hardware. Major U.S. imports from India include [[textile]]s and ready-made garments, Internet-enabled services, agricultural and related products, gems and jewelry, leather products, and chemicals.

The rapidly growing software sector is boosting service exports and modernizing India's economy. Software exports crossed $28 billion in FY 2006-2007, while business process outsourcing (BPO) revenues hit $8.3 billion in 2006-2007. Personal computer penetration is 14 per 1,000 persons. The cellular/mobile market surged to 140 million subscribers by November 2006. The country has 54 million [[cable TV]] customers.

The United States is India's largest investment partner, with a 13% share. India's total inflow of U.S. direct investment is estimated at more than $9 billion through 2006. Proposals for direct foreign investment are considered by the Foreign Investment Promotion Board and generally receive government approval. Automatic approvals are available for investments involving up to 100% foreign equity, depending on the kind of industry. Foreign investment is particularly sought after in power generation, telecommunications, ports, roads, petroleum exploration/processing, and mining.

India's external debt was $155 billion in 2006-2007, up from $126 billion in 2005-2006. Foreign assistance was approximately $3 billion in 2006-2007, with the United States providing about $126 million in development assistance. The [[World Bank]] plans to double aid to India to almost $3 billion a year, with focus on infrastructure, education, health, and rural livelihoods.

===Agriculture===
[[Image:Varma Lady Carrying Fruits.jpg|thumb|Lady Carrying Fruits by Ravi Varma.]]
India has a cultivated area of 138 million hectares which almost equals that of the [[European Union]]. A lot of the land has good agriculture potential especially where water supplies are available. Arable farming, especially cereals is the main kind of farming. India, which has two thirds of its working population relying on the land to earn a living, desperately needs to improve agriculture production in order to develop its economy.

When India became independent from [[Britain]] in 1947 the Indian government recognized agriculture as a key area for economic development. Despite this there has been limited modernization of the sector. There hasn’t been an effective land reform package introduced to redistribute land from wealthy landlords to landless peasants. In the 1990’s almost half of rural families had plots of 0.5 hectares or no land at all, but a quarter of India’s agricultural land was owned by five percent of rich landowning families. This has made it nearly impossible to mechanize and introduce modern farm practices.

The dominant type of farming throughout India is intensive [[Subsistence farming]]. It is used especially in rural areas with high population density, where people depend on being able to feed themselves. [[Rice]] is very important for this type of farming, especially in the Indus and Ganges flood plains. Other crops such as wheat and millet are grown in drier parts of peninsular India. Farming is a family affair, with all planting, flooding and harvesting done by hand. One of the reasons rural Indians have such large families is to provide free labour to help harvest crops. This adds to the pressure on India’s service sector and India’s agriculture sector to meet the demands of India’s ever-growing population.

India is a country that has benefited from the Green revolution. This refers to the development and introduction of genetically modified, high yield varieties of staple crops, such as rice and wheat. These ‘miracle’ crops produce high yields and are resistant to disease and pests. Due to the Green revolution, India has managed to become a net exporter of food.

There is however some problems linked to the Green revolution. It depends on large inputs of chemical fertilizers and pesticides that may be costly and harmful to the soil in the long run. Labour is often replaced with machinery, so rural unemployment goes up and more people leave the land and go to towns, increasing rural-urban migration. A well-educated farm population and capital investment are needed. It only really benefits comparatively few, large-scale farmers; large numbers of small-scale farmers may not be able to benefit from the process.

For a large number of Indian farmers a better solution would be the introduction of more intermediate technology and a more effective programme of land reform. While the Green revolution has brought some positive results, the vast majority of India’s rice farmers use traditional farm practices that depend heavily on the natural environment. The need to match food production to match India’s growing population is a major concern for government.

===Industry===

When India became independent in 1947 it had a largely underdeveloped Industrial system, with textiles and food processing been the key industries in the country. Only two percent of the working population had been employed in industry, which was concentrated in the major cities; [[Mumbai]], [[Kolkata]] and [[Chennai]]. On gaining independence the new government was determined to reduce India’s dependence on imported goods and to promote greater wealth and employment throughout the country.

The size of India’s population provided it a large home market and the country had some natural resources (coal and Iron) a large and cheap labour force and outputs from agriculture (cotton, Jute) Mineral resources encouraged the government to develop heavy industries, such as Iron and steel, shipbuilding and chemicals. Despite these advantages development was relatively slow and only benefited a few growth centers. In addition, by the 1980’s, many heavy industries were in decline, Industrial policy has changed to emphasize Agri-industries, consumer goods industries and small craft industries, rural development (community based development and self-help schemes) and high technology industries.

Agri-industries would be advantageous to India in that it already employs a large number of people in the agricultural sector. The development of fertilizers, machinery and food processing benefits rural communities and helps in the modernization of India’s agricultural system.

[[Consumer goods]] industries are more labour intensive than large-scale heavy industries, so more jobs are created as a result. They also benefit from low labour costs and traditional skills, which make them more competitive in, export markets. E.g. jewellary, clothing, leather goods etc.

With more than 70% of India’s population living in rural areas, jobs need to be taken to these people rather than encouraging migration to urban areas. This involves support for community development projects and self-help schemes that improve skills levels among the workforce.

High technology (Hi-tech) industries are attracted to India by the growing number of India’s skilled workers (Which produces more university graduates than USA and Canada combined) low costs and improved communication systems. These high value industries add a modern face to Indian industry. Many major multinationals, such as [[IBM]] and [[Texas instruments]], have located in India. Large numbers of locally owned companies have also set up to supply software components to western markets. (See [[Spin-off Effect]])

Although the government has tried to spread industry across the country, this growing sector remains concentrated in a growing number of city regions. The most important are [[Calcutta]], [[Bombay]] and [[Bangalore]]. Bangalore is known as ‘India’s silicon valley’ as a result of all the high-tech industries which have set up there.
===Education===
[[File:Sikh pilgrim at the Golden Temple in Amritsar India.jpg|thumb|300px|Sikh pilgrim at the Golden Temple in Amritsar.]]
India has a large number of universities, but the quality ranges from poor to medicore. The best students head to the U.S. or Britain. To cover this weakness, the government in July 2009 announced plans to expand the higher education budget by 40%, to $3.1-billion, for 2009-10.

The government in 2009 allotted an extra $435-million to the prestigious Indian Institutes of Technology and the National Institutes of Technology, and $170.5-million more to open 16 central universities in states that lack one. In keeping with its agenda of inclusive economic growth, the government has also announced interest-free loans for disadvantaged students to take technical and professional courses.

To increase India’s college-going rate to 21% by 2017, Prime Minister Singh has announced plans to start five new Indian Institutes of Science Education and Research, eight new Indian Institutes of Technology, seven new Indian Institutes of Management, and 20 new Indian Institutes of Information Technology — thus doubling the number of top-tier institutions in the country. He also wants to set up 16 central universities, 14 “world class” universities, and almost 400 colleges.

==History==
See [[History of India]]

==Further reading==
* Cohen, Stephen P. ''India: Emerging Power'' (2002) [http://www.amazon.com/gp/reader/0815715013/ref=sib_dp_pt/103-4827826-5463040#reader-link excerpt and online search from Amazon.com]
* Guha, Ramachandra. ''India After Gandhi: The History of the World's Largest Democracy'' (2008) [http://www.amazon.com/India-After-Gandhi-History-Democracy/dp/0060958588/ref=sr_1_8?ie=UTF8&s=books&qid=1242545228&sr=1-8 excerpt and text search]
* Nilekani, Nandan. ''Imagining India: The Idea of a Renewed Nation'' (2009) business in India [http://www.amazon.com/Imagining-India-Idea-Renewed-Nation/dp/1594202044/ref=sr_1_1?ie=UTF8&s=books&qid=1242545602&sr=1-1 excerpt and text search]
* Panagariya, Arvind. ''India: The Emerging Giant'' (2008) 544 pp., The major recent history; for advanced readers. [http://www.amazon.com/India-Emerging-Giant-Arvind/dp/0195315030/ref=sr_1_1?ie=UTF8&s=books&qid=1222697254&sr=8-1 excerpt and text search]
* Wolpert, Stanley. ''India'' (4th ed. 2009), 264pp; excellent overview and introduction [http://www.amazon.com/India-Stanley-Wolpert/dp/0520260325/ref=sr_1_1?ie=UTF8&s=books&qid=1255296028&sr=8-1 excerpt and text search]
===Guides===
* ''India'' (Lonely Planet Guide) by Sarina Singh et al. (2007) [http://www.amazon.com/India-Country-Guide-Sarina-Singh/dp/1741043085/ref=sr_1_4?ie=UTF8&s=books&qid=1242545228&sr=1-4 excerpt and text search]
* '' India'' (Eyewitness Travel Guides by DK Publishing (2002) [http://www.amazon.com/India-Eyewitness-Travel-Guides-Publishing/dp/0789483955/ref=sr_1_18?ie=UTF8&s=books&qid=1242545500&sr=1-18 excerpt and text search]
* ''India - Culture Smart!: a quick guide to customs and etiquette'' by Nicki Grihault (2006) [http://www.amazon.com/India-Culture-Smart-customs-etiquette/dp/1857333055/ref=sr_1_5?ie=UTF8&s=books&qid=1242545228&sr=1-5 excerpt and text search]
* ''The Rough Guide to India'' (2008) [http://www.amazon.com/Rough-Guide-India-Travel-Guides/dp/1858289947/ref=sr_1_10?ie=UTF8&s=books&qid=1242545228&sr=1-10 excerpt and text search]

==References==
<div class="references-small">
<references/>
</div>

==See Also==
* [[World History Lecture Three]] for more information on Ancient India.
* [[Anti-conversion legislation in India]]
* [[Oriental art]]
* [[Indian Painting]]
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{{Copyright Details (US Government)|source=[http://www.state.gov/r/pa/ei/bgn/3454.htm]}}

{{Asian Countries}}
[[Category:India]]
[[Category:Indian History]]
[[Category:Buddhism]]

Nepal

2015-01-14T04:20:06Z

GoraGurung: /* Economy */

{{Country
|name =नेपाल ''Nepal''
|map =Nepal rel 90.JPG
|map2 =Nepal location.png
|flag =Flag of Nepal.png
|arms =Arms of Nepal.png
|capital =Kathmandu
|capital-raw =
|government =Federal republic
|government-raw =
|language =Nepali
|king =
|queen =
|monarch-raw =
|president =Ram Baran Yadav
|president-raw =
|chancellor =
|chancellor-raw =
|pm =Sushil Koirala
|pm-raw =
|area =56,136 sq. miles
|pop =26,532,332 est.
|pop-basis =2011
|gdp =$65 billion
|gdp-year =2011
|gdp-pc =$2300
|currency =Nepalese rupee
|idd =
|tld =
}}
'''Nepal''' is a landlocked Himalayan country in South [[Asia]]. It is bordered by [[Tibet]] and [[China]] to the north and by [[India]] to the south, east and west. Nepal is home to eight of the world's top ten highest mountains, including [[Mount Everest]]. Kathmandu is the capital and largest city.

==Geography==
*Area: 147,181 sq. km. (56,136 sq. mi.), about the size and shape of Tennessee, bordering China and India.
*Cities: Capital--Kathmandu (3 districts) (pop. 2.2 million est.). Other cities--Biratnagar, Patan, Pokhara, Birgunj, Dharan, Nepalgunj.
*Terrain: Flat and fertile in the southern Terai region; terraced cultivation and swiftly flowing mountain rivers in the central hills; and the high Himalayas in the north. Eight of the world's ten highest peaks are in Nepal, including Mount Everest. Kathmandu, the capital, is in a broad valley at 1,310 meters (4,300 ft.) elevation.
*Climate: Subtropical in the south to cool summers and severe winters in the northern mountains. The monsoon season is from June through September, during which showers occur almost every day, bringing 75 to 150 centimeters (30-60 in.) of rain.
*Time zone: Nepal is 10 hours and 45 minutes ahead of Eastern Standard Time and does not observe daylight saving time.

==People==
[[File:Nepal ethnic groups map.jpg|thumb|left|320px|Ethnic groups.]]
Perched on the southern slopes of the Himalayan Mountains, 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 central Asia.

Among the earliest inhabitants were the Newars of the Kathmandu Valley and aboriginal Tharus in the southern Terai region. The ancestors of the Brahman and Chetri caste groups came from India, while other ethnic groups trace their origins to central Asia and Tibet, including the Gurungs and Magars in the west, Rais and Limbus in the east, and Sherpas and Bhotias in the north.

The Terai, a part of the Ganges Basin with 20% of Nepal's land, is the country's breadbasket. Much of the population is physically and culturally similar to the Indo-Aryan people of northern India. People of Indo-Aryan and Mongoloid origin live in the hill regions. The mountainous highlands are sparsely populated. The Kathmandu Valley, in the middle hill region, constitutes a small fraction of the nation's area but is the most densely populated, with over 7% of the population.
[[File:Monk Nepal Venerable Aggacitta.jpg|thumb|left|Monk Venerable Aggacitta.]]
Religion is important in Nepal; the Kathmandu Valley alone has more than 2,700 religious shrines. According to the 2001 census, Nepal is about 81% Hindu. Buddhists account for about 11% of the population. The interim constitution promulgated on January 15, 2007 declared the country a "secular state." Buddhist and Hindu shrines and festivals are respected and celebrated by many. The government celebrates most Hindu and some Buddhist holidays. Nepal also has small Muslim and Christian minorities. Certain animistic practices of old indigenous religions also survive.

Nepali is the official language, although a dozen different languages and about 30 major dialects are spoken throughout the country. Derived from Sanskrit, Nepali is related to the Indian language, Hindi, and is spoken by about 90% of the population. Many Nepalese in government and business also speak Hindi and English.
*Population (2007 estimate): 29 million.
*Annual growth rate (2007 estimate): 2.132%.
*Population breakdown/distribution: Rural (86%); female (50%); in the southern Terai region (49%); in the hills (44%); in the mountains (7%).
*Ethnic groups (caste and ethnicity are often used interchangeably): Pahari, Brahman, Chetri, Newar, Gurung, Magar, Tamang, Rai, Limbu, Sherpa, Tharu, and others.
*Religions: Hinduism (81%), Buddhism (11%), Islam (4%), and others (4%).
*Languages: Nepali and more than 12 others.
*Education: Years compulsory--0. Attendance--primary 80.4%, secondary 20%. Literacy--49% (63% male, 35% female).
*Health: Infant mortality rate (2007 estimate)--63.7 deaths/1,000 live births. Life expectancy (2007 estimate)--61.9 years for males and 65.5 years for females.
*Work force: Agriculture--71%; industry--3%; services--11%; other--1%.

==Government==
A Maoist insurgency--punctuated by cease-fires in 2001, 2003, 2005, and the latest one from April 26, 2006--has been ongoing since 1996. After King Gyanendra announced the reinstatement of Parliament on April 24, 2006, the Maoists declared a three-month unilateral ceasefire on April 26, 2006 which the new Koirala government reciprocated on May 3, 2006. Since then the Seven-Party Alliance (SPA) and the Maoists have signed five agreements, culminating in the comprehensive peace agreement of November 21, 2006, effectively ending the insurgency. However, Maoist violence and intimidation have continued since the agreement.

The main agenda of the SPA and the Maoists is to hold a Constituent Assembly (CA) election. The Constituent Assembly would draft and promulgate a new constitution defining the future political system in Nepal. The interim constitution, adopted on January 15, 2007, expressed full commitment to democratic ideals and norms, including competitive multi-party democracy, civil liberties, fundamental human rights, adult enfranchisement, periodic elections, press freedom, an independent judiciary, and the rule of law. The interim constitution also guaranteed the basic rights of Nepali citizens to formulate a constitution for themselves and to participate in the Constituent Assembly in an environment free from fear. The interim constitution transferred all powers of the King as head of state to the prime minister and stripped the King of any ceremonial constitutional role. Under the interim constitution, the fate of the monarchy will be decided by the first meeting of the Constituent Assembly. The interim Parliament is a unicameral house.
[[File:Nepal 2012.jpg|300px|right]]
After promulgation of the interim constitution, many socially marginalized ethnic communities, including the Madhesis of the lowland Terai, began widespread protests against the proposed proportional representation system incorporated in the new constitution. After a Maoist shot and killed one of the demonstrators, violent protests erupted with clashes between police and demonstrators and attacks on government facilities in at least 10 districts, resulting in the death of over 30 people. Prime Minister Koirala, in an address to the nation on February 7, 2007 promised to amend the constitution to meet the demands of the Terai people. However, the situation remains tense, with continuing protests and violence.

Nepal's judiciary is legally separated from the executive and legislative branches and, in practice, has increasingly shown the will to be independent of political influence. However, by asserting executive control over the judiciary, the interim constitution called into question this independence. Under the interim constitution, the Prime Minister appoints the Chief Justice on the recommendation of the Constitutional Council, and the Chief Justice appoints other judges on the recommendation of the Judicial Council. All lower court decisions, including acquittals, are subject to appeal. The Supreme Court is the court of last appeal.

===Principal Government Officials===
====Cabinet Ministers====
*Prime Minister, Defense--Girija Prasad Koirala
*Peace and Reconstruction--Ram Chandra Paudel
*Foreign Affairs--Sahana Pradhan
*Information and Communications--Krishna Bahadur Mahara
*Education and Sports--Pradip Nepal
*Environment, Science and Technology--Mahantha Thakur
*Finance--Dr. Ram Sharan Mahat
*Law, Justice and Parliamentary Affairs--Narendra Bikram Nembang
*Home Affairs--Krishna Prasad Sitaula
*Local Development--Dev Prasad Gurung
*Industry, Commerce and Supplies--Rajendra Mahato
*Culture, Tourism and Civil Aviation--Prithvi Subba Gurung
*Forest and Soil-Conservation--Matrika Prasad Yadav
*Agriculture and Cooperatives--Chhabilal Biswokarma
*Physical Planning and Works--Hisila Yami
*Land-Reforms and Management--Jagat Bahadur Bogati
*Women, Children and Social Welfare--Khadga Bahadur Biswokarma
*Health and Population--Giriraj Mani Pokharel

====State Ministers====
*Labour and Transport Management--Ramesh Lekhak
*Water Resources--Gyanendra Bahadur Karki
*General Administration--Ram Chandra Yadav
*Law, Justice and Parliamentary Affairs--Indra Bahadur Gurung
*Education--Mohan Singh Rathour

===Foreign Relations===
[[File:Nepal map.jpg|left|340px]]
As a small, landlocked country wedged between two much larger and far stronger powers, Nepal seeks good relations with both India and China. Nepal formally established relations with China in 1956 and, since then, their bilateral relations have generally been good. Because of strong cultural, religious, linguistic, and economic ties, Nepal's association with India traditionally has been close. India and Nepal restored trade relations in 1990 after a break caused by India's security concerns over Nepal's relations with China. A bilateral trade treaty signed with India in 1991 is renewed every five years. The most recent renewal was on March 6, 2007, which expires on March 5, 2012. A transit treaty with India, which allows Nepal to trade with other countries through the Calcutta/Haldia ports, was extended on March 30, 2006 for seven years.

Nepal played an active role in the formation of the economic development-oriented South Asian Association for Regional Cooperation (SAARC) and is the site of its secretariat. Nepal is also a signatory of the agreement on South Asian Free Trade Area (SAFTA), which came into force on January 1, 2006. A SAFTA tariff liberalization program (TLP) was scheduled to be implemented July 1, 2006. All member countries, except for Nepal, whose TLP started on August 1, 2006, reduced tariffs for each other. However, on July 1, 2006, Pakistan officially toughened its stance of not trading with India under the SAFTA arrangements and did not announce TLP for India. Due to the stalemate between India and Pakistan, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation Free Trade Agreement (BIMSTEC-FTA), which was initially scheduled to come into force on July 1, 2006, was deferred indefinitely. The BIMSTEC Summit scheduled for February 8, 2007, in India was also deferred due to political instability in member states, including Nepal. On international issues, Nepal follows a non-aligned policy and often votes with the Non-Aligned Movement in the United Nations. Nepal participates in a number of UN specialized agencies and is a member of the World Trade Organization, World Bank, International Monetary Fund, Colombo Plan, and Asian Development Bank.

===Human Rights===
Since political reform began in 1990, some progress has been achieved in the transition to a more open society with greater respect for human rights; however, substantial problems remain. Poorly trained police sometimes use excessive force in quelling violent demonstrations. In addition, there have been reports of torture during detention and widespread reports of custodial abuse. In 2000, the government established the National Human Rights Commission, a government-appointed commission with a mandate to investigate human rights violations. The government is sometimes slow to follow the commission's recommendations or to enforce accountability for recent and past abuses. The King's February 2005 dismissal of the government, subsequent imposition of emergency rule and suspension of many civil rights--including freedom of expression, assembly, and privacy--was a setback for human rights in Nepal. During this three-month period, censors were deployed to major newspapers, and many political leaders were kept under house arrest. The King's government restricted the media from publishing interviews, articles, or news items against the spirit of the royal proclamation of February 1, 2005 or in support of terrorist or destructive activities. The reinstated government, led by Prime Minister Koirala, reversed these decisions in May 2006. The interim constitution promulgated on January 15, 2007 ensured unrestricted freedom of expression.

Both the Maoists and security personnel have committed numerous human rights violations. The Maoists have used tactics such as kidnapping, torture, bombings, intimidation, killings, and conscription of children. Within the Nepalese security forces, violations ranged from disappearances to executions. After the royal takeover on February 1, 2005 and subsequent imposition of the state of emergency, the security forces arrested many political leaders, student leaders, journalists, and human rights activists under the Public Security Act of 1989, although all were released by June 2005 when the King ended the state of emergency.

After the April 2006 cease-fire announced by the government and the Maoists, incidents of human rights violations by the government declined substantially while incidents of human rights violations by the Maoists remained relatively unabated. Even after signing a comprehensive peace agreement with the government in November 2006, Maoists' extortion, abduction, and intimidation largely remained uncontrolled. Although activities by other political parties have increased significantly in the rural parts of Nepal, political party representatives, police, non-governmental organization (NGO) workers, and journalists reported continuous threats and intimidation by Maoist cadres. During the January-February 2007 uprising in the Terai, reports of government security forces using excessive force to quell demonstrations were common.

There are three major daily English-language newspapers, "The Kathmandu Post," "The Himalayan Times" and "The Rising Nepal." The last and its vernacular sister publication are owned by a government corporation. There are hundreds of smaller daily and weekly periodicals that are privately owned and of varying journalistic quality. Views expressed since the 1990 move to democracy are varied and vigorous. Currently, 75 radio and four television stations are privately owned and operated, following liberalization of licensing regulations. Radio Nepal and Nepal Television are government-owned and operated. There are nearly 200 cable television operators nationwide, and satellite dishes to receive television broadcasts abound.

Trafficking in women and child labor remain serious problems. Discrimination against women and lower castes is prevalent.

==Defense==
Nepal's military consists of the nearly 95,000-strong Nepalese Army (NA), which is organized into six divisions (Far-Western, Mid-Western, Western, Central, Eastern, and Valley Divisions) with separate Aviation, Parachute, and Security Brigades as well as brigade-sized directorates encompassing air defense, artillery, engineers, logistics, and signals which provide general support to the NA. The Prime Minister is the Supreme Commander of the NA. The Prime Minister is currently Minister of Defense. General Rookmangud Katawal is Chief of the Army Staff (COAS), also the senior commissioned officer of the NA.

Since 1958, the NA has contributed over 50,000 peacekeepers to 28 peacekeeping missions such as the UN Interim Force in Lebanon (UNIFIL), the UN Protection Force (UNPROFOR) in the former Yugoslavia, the UN Operational Mission in Somalia II (UNOSOMII), the UN Mission in Haiti (UNMIH), and the UN Mission of Support in East Timor (UNTAET). NA units are presently serving in the UN Mission in Sierra Leone (UNAMSIL), the UN Mission in the Democratic Republic of the Congo (MONUC), and the UN Mission in Haiti (MINUSTOH), among others. Approximately 3,400 of the world-famous Nepalese Gurkha forces serve in the British Army, and 40,000 serve in the Indian Army.

==Economy==

Nepal ranks among the world's poorest countries, with a per capita income of around $2300. Based on national calorie/GNP criteria, an estimated 31% of the population is below the poverty line. An isolated, agrarian society until the mid-20th century, Nepal entered the modern era in 1951 without schools, hospitals, roads, telecommunications, electric power, industry, or a civil service. The country has, however, made progress toward sustainable economic growth since the 1950s and is committed to a program of economic liberalization.
[[File:Nepal cow.jpg|right]]
Nepal launched its tenth five-year economic development plan in 2002; its currency has been made convertible; and fourteen state enterprises have been privatized, seven liquidated and two dissolved. Foreign aid accounts for more than half the development budget. The Government of Nepal has shown an increasing commitment to fiscal transparency, good governance, and accountability. Also in 2002, the government began to prioritize development projects and eliminate wasteful spending. In consultation with civil society and donors, the government cut 160 development projects that were driven by political patronage.

Agriculture remains Nepal's principal economic activity, employing over 71% of the population and providing 38% of GDP. Only about 25% of the total area is cultivable; another 33% is forested; most of the rest is mountainous. Rice and wheat are the main food crops. The lowland Terai region produces an agricultural surplus, part of which supplies the food-deficient hill areas. Because of Nepal's dependence on agriculture, the annual monsoon rain, or lack of it, strongly influences economic growth.

Nepal's exports increased 2.8% in FY 2005/2006 compared to an increase of 8.3% in FY 2004/2005. Imports grew by 9.8% in FY 2005/2006 compared with 9.2% in FY 2004/2005. Exports were constrained by a prolonged phase of general strikes, industrial closures, and political turmoil during the second half of FY 2005/2006 and also by a significant drop in Nepal's main export, ready-made textile products. The trade deficit for FY 2004/2005 was $1.2 billion, which widened to $1.4 billion in FY 2005/2006. Real GDP growth during 1996-2002 averaged less than 5%. Real growth experienced a one-time jump in 1999, rising to 6%, before slipping back below 5%. In 2002, GDP recorded a negative growth rate of 0.33%, largely because of the Maoist insurgency. GDP grew 3.1% in FY 2002/2003 and 3.6% in FY 2003/2004, and again slipped to 2.4% in 2004/2005 and to 2.4% in FY 2005/2006, according to the Central Bureau of Statistics.

Despite its growing trade deficit, Nepal traditionally has a balance of payments (BOP) surplus due to remittances from Nepalese working abroad. In FY 2005/2006, Nepal recorded a balance of payments surplus of $355 million, as compared to $79 million in FY 2004/2005. The lower BOP surplus in FY 2004/2005 was mainly attributed to the lower inflow of net government loans, and the higher surplus in FY 2005/2006 was due to resumption of foreign loans and assistance after the April 2006 People's Movement. Both the current account and the capital account registered significant growth in FY 2005/2006. Nepal receives substantial amounts of external assistance from India, the United Kingdom, the United States, Japan, Germany, and the Scandinavian countries. Several multilateral organizations--including the World Bank, the Asian Development Bank, and the UN Development Program--also provide assistance. Such assistance decreased substantially in FY 2004/2005 after the royal takeover of February 1, 2005 and also because of the Maoist conflict, which undermined development activities throughout most of Nepal. On April 23, 2004, Nepal became the 147th member of the World Trade Organization (WTO).

With eight of the world's ten highest mountain peaks--including Mt. Everest at 8,848 m (29,000 ft)--Nepal is a tourist destination for hikers and mountain climbers. However, the decade-long insurgency and a global economic slowdown threatened the tourism industry. Figures from the Department of Immigration showed a 4% increase in arrivals in 2006, but these remained well below numbers during 1999, the peak tourism year. Recent tourist arrivals have given relief to the tourism-based hotel, trekking, mountaineering, and aviation industries. Since the political parties and Maoists brokered a comprehensive peace agreement in November 2006, the tourism industry hoped that guest arrivals in Nepal would bounce quickly back to 1999 levels and higher.

Swift rivers flowing south through the Himalayas have massive hydroelectric potential to service domestic power needs and growing demand from India. Only about 1% of Nepal's hydroelectric potential is currently tapped. Several hydroelectric projects, at Kulekhani and Marsyangdi, were completed in the early to late 1980s. In the early 1990s, one large public-sector project, the Kali Gandaki A (144 megawatts--MW), and a number of private projects were planned; some have been completed. Kali Gandaki A started commercial operation in August 2002. The most significant privately financed hydroelectric projects currently in operation are the Khimti Khola (60 MW) and Bhote Koshi (36 MW) projects.

The environmental impact of Nepal's hydroelectric projects has been limited by the fact that most are "run-of-river," with only one storage project undertaken to date. The planned private-sector West Seti (750 MW) storage project is dedicated to electricity exports. An Australian company signed a power purchase agreement with the Indian Power Trading Corporation in September 2002 and has the lead on the project. Negotiations with India for a power purchase agreement have been underway for several years, but agreement on pricing and capital financing remains a problem. The Government of Nepal has taken up the issue of project financing for the West Seti project with the EXIM Bank of China. The Department of Electricity Development recently obtained proposals from 14 foreign companies for survey licenses of three projects--600 MW Budhi Gandaki, 402 MW Arun III, and 300 MW Upper Karnali. The Ministry of Water Resources is currently evaluating the proposals and has not awarded the survey licenses. Currently, domestic demand for electricity is increasing at 8%-10% a year.

Population pressure on natural resources is increasing. Overpopulation is already straining the "carrying capacity" of the middle hill areas, particularly the Kathmandu Valley, resulting in the depletion of forest cover for crops, fuel and fodder, and contributing to erosion and flooding. Additionally, water supplies within the Kathmandu Valley are not considered safe for consumption, and disease outbreaks are not uncommon. Although steep mountain terrain makes exploitation difficult, mineral surveys have found small deposits of limestone, magnesite, zinc, copper, iron, mica, lead, and cobalt.

Progress has been achieved in education, health, and infrastructure. A countrywide primary education system is under development, and Tribhuvan University has several campuses. Although eradication efforts continue, malaria has been controlled in the fertile but previously uninhabitable Terai region in the south. Kathmandu is linked to India and nearby hill regions by an expanding highway network.
*GDP (2005/2006): $7.7 billion.
*Annual growth rate of real GDP (FY 2005/2006): 2.38%.
*Per capita income (gross national product, FY 2005/2006): $322.
*Avg. inflation rate (Consumer Price Index, November 2006 est.): 8.6%.
*Natural resources: Water, hydropower, scenic beauty, limited but fertile agricultural land, timber.
*Agriculture (38% of GDP): Products--rice, wheat, maize, sugarcane, oilseed, jute, millet, potatoes. Cultivated land--25%.
*Industry (10% of GDP): Types--carpets, pashmina, garments, cement, cigarettes, bricks, sugar, soap, matches, jute, hydroelectric power.
*Trade (2005/2006): Exports--$834 million: carpets, pashmina, garments. Major markets--Germany and the U.S. Imports--$2.2 billion: manufactured goods. Major supplier--India.
*Central government budget (FY 2006/2007): $1.9 billion; military allocation $139 million.
*Official exchange rate (as of July 16, 2006): 74.10 Nepalese rupees=U.S. $1.00.
*Fiscal year: July 16-July 15.

==History==
====Early History====
[[File:Nepal temple.JPG|left|Temple.]]
Modern Nepal was created in the latter half of the 18th century when Prithvi Narayan Shah, the ruler of the small principality of Gorkha, formed a unified country from a number of independent hill states. The country was frequently called the Gorkha Kingdom, the source of the term "Gurkha" used for Nepali soldiers.

After 1800, the heirs of Prithvi Narayan Shah proved unable to maintain firm political control over Nepal. A period of internal turmoil followed, heightened by Nepal's defeat by the British in a war from 1814 to 1816. Stability was restored after 1846 when the Rana family gained power, entrenched itself through hereditary prime ministers, and reduced the monarch to a figurehead. The Rana regime, a highly centralized autocracy, pursued a policy of isolating Nepal from external influences. This policy helped Nepal maintain its national independence during the colonial era, but also impeded the country's economic development.

In 1950, King Tribhuvan, a direct descendant of Prithvi Narayan Shah, fled his "palace prison" to newly independent India, touching off an armed revolt against the Rana administration. This allowed the return of the Shah family to power and, eventually, the appointment of a non-Rana prime minister. A period of quasi-constitutional rule followed, during which the monarch, assisted by the leaders of fledgling political parties, governed the country. During the 1950s, efforts were made to frame a constitution for Nepal that would establish a representative form of government, based on the British model.
{{Clear}}

====Democracy Develops====
In early 1959, King Mahendra, who had succeeded his father Tribhuvan in 1955, issued a new constitution and the first democratic elections for a national assembly were held. The Nepali Congress Party, a moderate socialist group, gained a substantial victory in the election. Its leader, B.P. Koirala, formed a government and served as Prime Minister.

Declaring parliamentary democracy a failure eighteen months later, King Mahendra dismissed the Koirala government and promulgated a new constitution on December 16, 1962. The new constitution established a "partyless" system of panchayats (councils), which King Mahendra claimed was a democratic form of government closer to Nepalese traditions. As a hierarchical structure progressing from village assemblies to a Rastriya Panchayat (National Parliament), the Panchayat system enshrined the absolute power of the monarchy and kept the King as head of state with sole authority over all governmental institutions, including the Cabinet (Council of Ministers) and the Parliament.

King Mahendra was succeeded by his 27-year-old son, King Birendra, in 1972. Amid student demonstrations and anti-regime activities in 1979, King Birendra called for a national referendum to decide the nature of Nepal's government--either the continuation of the Panchayat system with democratic reforms or the establishment of a multiparty system. The referendum was held in May 1980, and the Panchayat system won a narrow victory. The King carried out the promised reforms, including selection of the prime minister by the Rastriya Panchayat.

====Movement to Restore Democracy====
In 1990, the political parties again pressed the King and the government for change. Leftist parties united under a common banner of the United Left Front and joined forces with the Nepali Congress Party to launch strikes and demonstrations in the major cities of Nepal. This "Movement to Restore Democracy" was initially dealt with severely, with more than 50 persons killed by police gunfire and hundreds arrested. In April, the King capitulated. Consequently, he dissolved the Panchayat system, lifted the ban on political parties, and released all political prisoners.

An interim government was sworn in on April 19, 1990, headed by Krishna Prasad Bhattarai as Prime Minister presiding over a cabinet made up of members of the Nepali Congress Party, the communist parties of Nepal, royal appointees, and independents. The new government drafted and promulgated a new constitution in November 1990, which enshrined fundamental human rights and established Nepal as a parliamentary democracy under a constitutional monarch. International observers characterized the May 1991 elections as free and fair, in which the Nepali Congress Party won 110 out of 205 seats to form the government.

In mid-1994, the Parliament was dissolved due to dissension within the Nepali Congress Party. The subsequent general election held November 15, 1994, gave no party a majority. The 1994 elections resulted in a Nepali Congress Party defeat and a hung Parliament, with a minority government led by the Communist Party of Nepal-United Marxist Leninist Party (CPN-UML); this made Nepal the world's first communist monarchy, with Man Mohan Adhikary as Prime Minister. The next five years saw five successive unstable coalition governments and the beginning of a Maoist insurgency.

Following the May 1999 general elections, the Nepali Congress Party once again headed a majority government after winning 113 out of 205 seats. But the pattern of short-lived governments persisted. There were three Nepali Congress Party Prime Ministers after the 1999 elections: K.P. Bhattarai (5/31/99-3/17/00); G. P. Koirala (3/20/00-7/19/01); and Sher Bahadur Deuba (7/23/01-10/04/02).

On June 1, 2001, Crown Prince Dipendra reportedly shot and killed his father King Birendra, his mother Queen Aishwarya, his brother, his sister, his father's younger brother Prince Dhirendra, and several aunts before turning the gun on himself. After his death two days later, the late King's surviving brother Gyanendra was proclaimed King.

====Maoist Insurgency====
In February 1996, the leaders of the Maoist United People's Front began a violent insurgency, waged through killings, torture, bombings, kidnappings, extortion, and intimidation against civilians, police, and public officials in more than 50 of the country's 75 districts. Over 13,000 police, civilians, and insurgents were killed in the conflict. The government and Maoists held peace talks in August, September, and November of 2001, but they were unsuccessful, and the Maoists resumed their violent insurgency. Shortly after the 2001 peace talks failed, King Gyanendra declared a state of emergency, which the Parliament approved by a two-thirds vote. On the recommendation of Prime Minister Sher Bahadur Deuba, the King dissolved the House on May 22, 2002.

====Struggle for Democracy Continues====
In a sudden turn of events on October 4, 2002, King Gyanendra removed Prime Minister Deuba and assumed executive power. The entire Council of Ministers was also dissolved, and the November 13, 2002 elections to the dissolved House of Representatives were called off. After a week-long consultation with the leaders of various political parties, on October 11, 2002, the King appointed Lokendra Bahadur Chand as Prime Minister with a five-point directive that included creating an environment of peace and security as well as holding elections to the local bodies and the House of Representatives.

Under Chand's premiership, the government and Maoists declared a cease-fire on January 29, 2003. This marked the second cease-fire with the Maoists; the first, in 2001, had been broken by the Maoists. The 2003 cease-fire included an agreement to undertake initiatives to resolve the Maoist problem through dialogue and bring the Communist Party of Nepal (Maoist) back into mainstream politics. After the announcement of the 2003 cease-fire, the Chand government held two rounds of peace talks with the Maoists, in April and May. But in its effort to end political instability, it failed to secure the support of the leading political parties. In the face of growing pressure from political parties and their mass movement, Chand resigned from his post on May 30, 2003, after only seven months in power.

The King appointed Surya Bahadur Thapa as the new Prime Minister on June 4, 2003, amidst opposition from the major political parties. Another round of peace talks was held in mid-August 2003, but on August 27, 2003 the Maoists broke the second cease-fire. Thapa resigned in May 2004 as a result of political pressure. In June 2004, the King reinstated formerly dismissed Sher Bahadur Deuba as Prime Minister.

====King's Direct Rule====
Citing a steady deterioration of conditions in the country, King Gyanendra dismissed the Cabinet and constituted a Council of Ministers under his own chairmanship on February 1, 2005. He stated that the Council of Ministers (i.e., Cabinet) would try to reactivate multi-party democracy within three years. The King subsequently declared a state of emergency and suspended almost all fundamental rights for nearly three months. His new government was sworn in on February 2, 2005. The Council of Ministers under the King's chairmanship was reshuffled twice during the King's 15 months of direct rule.

====People's Movement====
In April 2006, the major political parties, in cooperation with the Maoists, organized massive countrywide demonstrations for the restoration of democracy, forcing the King to relinquish power. On April 24, 2006, King Gyanendra reinstated the 1999 Parliament. Former Prime Minister Girija Prasad Koirala of the Nepali Congress Party was selected by the Seven-Party Alliance (SPA) of political parties to again lead the government. The Maoists declared a unilateral cease-fire on April 26, and the new Koirala government announced its own unilateral cease-fire and plans for peace talks with the Maoist insurgents on May 3, 2006. The SPA and the Maoists have since signed a number of agreements, including, in November 2006, a comprehensive peace agreement to end the decade-long insurgency. Both sides also agreed to an arms management process and elections for a Constituent Assembly. On January 15, 2007 a 329-member interim Parliament, including 83 Maoist representatives and other party representatives, was constituted. The first sitting of the Parliament unanimously endorsed an interim constitution, which replaced the constitution of 1990. On April 1, 2007, the ruling eight-party government formed an interim Council of Ministers through political consensus, including five Maoist ministers.

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|style=" background-color: none;"| Some content for this article is in the [[Public Domain]] in the United States because it is a work of the United States Federal Government under the terms of Title 17, Chapter 1, Section 105 of the U.S. Code
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{{Asian Countries}}
[[Category:Landlocked Countries]]
[[Category:Hinduism]]
[[Category:Buddhism]]

Nepal

2015-01-14T04:16:03Z

GoraGurung:

{{Country
|name =नेपाल ''Nepal''
|map =Nepal rel 90.JPG
|map2 =Nepal location.png
|flag =Flag of Nepal.png
|arms =Arms of Nepal.png
|capital =Kathmandu
|capital-raw =
|government =Federal republic
|government-raw =
|language =Nepali
|king =
|queen =
|monarch-raw =
|president =Ram Baran Yadav
|president-raw =
|chancellor =
|chancellor-raw =
|pm =Sushil Koirala
|pm-raw =
|area =56,136 sq. miles
|pop =26,532,332 est.
|pop-basis =2011
|gdp =$65 billion
|gdp-year =2011
|gdp-pc =$2300
|currency =Nepalese rupee
|idd =
|tld =
}}
'''Nepal''' is a landlocked Himalayan country in South [[Asia]]. It is bordered by [[Tibet]] and [[China]] to the north and by [[India]] to the south, east and west. Nepal is home to eight of the world's top ten highest mountains, including [[Mount Everest]]. Kathmandu is the capital and largest city.

==Geography==
*Area: 147,181 sq. km. (56,136 sq. mi.), about the size and shape of Tennessee, bordering China and India.
*Cities: Capital--Kathmandu (3 districts) (pop. 2.2 million est.). Other cities--Biratnagar, Patan, Pokhara, Birgunj, Dharan, Nepalgunj.
*Terrain: Flat and fertile in the southern Terai region; terraced cultivation and swiftly flowing mountain rivers in the central hills; and the high Himalayas in the north. Eight of the world's ten highest peaks are in Nepal, including Mount Everest. Kathmandu, the capital, is in a broad valley at 1,310 meters (4,300 ft.) elevation.
*Climate: Subtropical in the south to cool summers and severe winters in the northern mountains. The monsoon season is from June through September, during which showers occur almost every day, bringing 75 to 150 centimeters (30-60 in.) of rain.
*Time zone: Nepal is 10 hours and 45 minutes ahead of Eastern Standard Time and does not observe daylight saving time.

==People==
[[File:Nepal ethnic groups map.jpg|thumb|left|320px|Ethnic groups.]]
Perched on the southern slopes of the Himalayan Mountains, 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 central Asia.

Among the earliest inhabitants were the Newars of the Kathmandu Valley and aboriginal Tharus in the southern Terai region. The ancestors of the Brahman and Chetri caste groups came from India, while other ethnic groups trace their origins to central Asia and Tibet, including the Gurungs and Magars in the west, Rais and Limbus in the east, and Sherpas and Bhotias in the north.

The Terai, a part of the Ganges Basin with 20% of Nepal's land, is the country's breadbasket. Much of the population is physically and culturally similar to the Indo-Aryan people of northern India. People of Indo-Aryan and Mongoloid origin live in the hill regions. The mountainous highlands are sparsely populated. The Kathmandu Valley, in the middle hill region, constitutes a small fraction of the nation's area but is the most densely populated, with over 7% of the population.
[[File:Monk Nepal Venerable Aggacitta.jpg|thumb|left|Monk Venerable Aggacitta.]]
Religion is important in Nepal; the Kathmandu Valley alone has more than 2,700 religious shrines. According to the 2001 census, Nepal is about 81% Hindu. Buddhists account for about 11% of the population. The interim constitution promulgated on January 15, 2007 declared the country a "secular state." Buddhist and Hindu shrines and festivals are respected and celebrated by many. The government celebrates most Hindu and some Buddhist holidays. Nepal also has small Muslim and Christian minorities. Certain animistic practices of old indigenous religions also survive.

Nepali is the official language, although a dozen different languages and about 30 major dialects are spoken throughout the country. Derived from Sanskrit, Nepali is related to the Indian language, Hindi, and is spoken by about 90% of the population. Many Nepalese in government and business also speak Hindi and English.
*Population (2007 estimate): 29 million.
*Annual growth rate (2007 estimate): 2.132%.
*Population breakdown/distribution: Rural (86%); female (50%); in the southern Terai region (49%); in the hills (44%); in the mountains (7%).
*Ethnic groups (caste and ethnicity are often used interchangeably): Pahari, Brahman, Chetri, Newar, Gurung, Magar, Tamang, Rai, Limbu, Sherpa, Tharu, and others.
*Religions: Hinduism (81%), Buddhism (11%), Islam (4%), and others (4%).
*Languages: Nepali and more than 12 others.
*Education: Years compulsory--0. Attendance--primary 80.4%, secondary 20%. Literacy--49% (63% male, 35% female).
*Health: Infant mortality rate (2007 estimate)--63.7 deaths/1,000 live births. Life expectancy (2007 estimate)--61.9 years for males and 65.5 years for females.
*Work force: Agriculture--71%; industry--3%; services--11%; other--1%.

==Government==
A Maoist insurgency--punctuated by cease-fires in 2001, 2003, 2005, and the latest one from April 26, 2006--has been ongoing since 1996. After King Gyanendra announced the reinstatement of Parliament on April 24, 2006, the Maoists declared a three-month unilateral ceasefire on April 26, 2006 which the new Koirala government reciprocated on May 3, 2006. Since then the Seven-Party Alliance (SPA) and the Maoists have signed five agreements, culminating in the comprehensive peace agreement of November 21, 2006, effectively ending the insurgency. However, Maoist violence and intimidation have continued since the agreement.

The main agenda of the SPA and the Maoists is to hold a Constituent Assembly (CA) election. The Constituent Assembly would draft and promulgate a new constitution defining the future political system in Nepal. The interim constitution, adopted on January 15, 2007, expressed full commitment to democratic ideals and norms, including competitive multi-party democracy, civil liberties, fundamental human rights, adult enfranchisement, periodic elections, press freedom, an independent judiciary, and the rule of law. The interim constitution also guaranteed the basic rights of Nepali citizens to formulate a constitution for themselves and to participate in the Constituent Assembly in an environment free from fear. The interim constitution transferred all powers of the King as head of state to the prime minister and stripped the King of any ceremonial constitutional role. Under the interim constitution, the fate of the monarchy will be decided by the first meeting of the Constituent Assembly. The interim Parliament is a unicameral house.
[[File:Nepal 2012.jpg|300px|right]]
After promulgation of the interim constitution, many socially marginalized ethnic communities, including the Madhesis of the lowland Terai, began widespread protests against the proposed proportional representation system incorporated in the new constitution. After a Maoist shot and killed one of the demonstrators, violent protests erupted with clashes between police and demonstrators and attacks on government facilities in at least 10 districts, resulting in the death of over 30 people. Prime Minister Koirala, in an address to the nation on February 7, 2007 promised to amend the constitution to meet the demands of the Terai people. However, the situation remains tense, with continuing protests and violence.

Nepal's judiciary is legally separated from the executive and legislative branches and, in practice, has increasingly shown the will to be independent of political influence. However, by asserting executive control over the judiciary, the interim constitution called into question this independence. Under the interim constitution, the Prime Minister appoints the Chief Justice on the recommendation of the Constitutional Council, and the Chief Justice appoints other judges on the recommendation of the Judicial Council. All lower court decisions, including acquittals, are subject to appeal. The Supreme Court is the court of last appeal.

===Principal Government Officials===
====Cabinet Ministers====
*Prime Minister, Defense--Girija Prasad Koirala
*Peace and Reconstruction--Ram Chandra Paudel
*Foreign Affairs--Sahana Pradhan
*Information and Communications--Krishna Bahadur Mahara
*Education and Sports--Pradip Nepal
*Environment, Science and Technology--Mahantha Thakur
*Finance--Dr. Ram Sharan Mahat
*Law, Justice and Parliamentary Affairs--Narendra Bikram Nembang
*Home Affairs--Krishna Prasad Sitaula
*Local Development--Dev Prasad Gurung
*Industry, Commerce and Supplies--Rajendra Mahato
*Culture, Tourism and Civil Aviation--Prithvi Subba Gurung
*Forest and Soil-Conservation--Matrika Prasad Yadav
*Agriculture and Cooperatives--Chhabilal Biswokarma
*Physical Planning and Works--Hisila Yami
*Land-Reforms and Management--Jagat Bahadur Bogati
*Women, Children and Social Welfare--Khadga Bahadur Biswokarma
*Health and Population--Giriraj Mani Pokharel

====State Ministers====
*Labour and Transport Management--Ramesh Lekhak
*Water Resources--Gyanendra Bahadur Karki
*General Administration--Ram Chandra Yadav
*Law, Justice and Parliamentary Affairs--Indra Bahadur Gurung
*Education--Mohan Singh Rathour

===Foreign Relations===
[[File:Nepal map.jpg|left|340px]]
As a small, landlocked country wedged between two much larger and far stronger powers, Nepal seeks good relations with both India and China. Nepal formally established relations with China in 1956 and, since then, their bilateral relations have generally been good. Because of strong cultural, religious, linguistic, and economic ties, Nepal's association with India traditionally has been close. India and Nepal restored trade relations in 1990 after a break caused by India's security concerns over Nepal's relations with China. A bilateral trade treaty signed with India in 1991 is renewed every five years. The most recent renewal was on March 6, 2007, which expires on March 5, 2012. A transit treaty with India, which allows Nepal to trade with other countries through the Calcutta/Haldia ports, was extended on March 30, 2006 for seven years.

Nepal played an active role in the formation of the economic development-oriented South Asian Association for Regional Cooperation (SAARC) and is the site of its secretariat. Nepal is also a signatory of the agreement on South Asian Free Trade Area (SAFTA), which came into force on January 1, 2006. A SAFTA tariff liberalization program (TLP) was scheduled to be implemented July 1, 2006. All member countries, except for Nepal, whose TLP started on August 1, 2006, reduced tariffs for each other. However, on July 1, 2006, Pakistan officially toughened its stance of not trading with India under the SAFTA arrangements and did not announce TLP for India. Due to the stalemate between India and Pakistan, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation Free Trade Agreement (BIMSTEC-FTA), which was initially scheduled to come into force on July 1, 2006, was deferred indefinitely. The BIMSTEC Summit scheduled for February 8, 2007, in India was also deferred due to political instability in member states, including Nepal. On international issues, Nepal follows a non-aligned policy and often votes with the Non-Aligned Movement in the United Nations. Nepal participates in a number of UN specialized agencies and is a member of the World Trade Organization, World Bank, International Monetary Fund, Colombo Plan, and Asian Development Bank.

===Human Rights===
Since political reform began in 1990, some progress has been achieved in the transition to a more open society with greater respect for human rights; however, substantial problems remain. Poorly trained police sometimes use excessive force in quelling violent demonstrations. In addition, there have been reports of torture during detention and widespread reports of custodial abuse. In 2000, the government established the National Human Rights Commission, a government-appointed commission with a mandate to investigate human rights violations. The government is sometimes slow to follow the commission's recommendations or to enforce accountability for recent and past abuses. The King's February 2005 dismissal of the government, subsequent imposition of emergency rule and suspension of many civil rights--including freedom of expression, assembly, and privacy--was a setback for human rights in Nepal. During this three-month period, censors were deployed to major newspapers, and many political leaders were kept under house arrest. The King's government restricted the media from publishing interviews, articles, or news items against the spirit of the royal proclamation of February 1, 2005 or in support of terrorist or destructive activities. The reinstated government, led by Prime Minister Koirala, reversed these decisions in May 2006. The interim constitution promulgated on January 15, 2007 ensured unrestricted freedom of expression.

Both the Maoists and security personnel have committed numerous human rights violations. The Maoists have used tactics such as kidnapping, torture, bombings, intimidation, killings, and conscription of children. Within the Nepalese security forces, violations ranged from disappearances to executions. After the royal takeover on February 1, 2005 and subsequent imposition of the state of emergency, the security forces arrested many political leaders, student leaders, journalists, and human rights activists under the Public Security Act of 1989, although all were released by June 2005 when the King ended the state of emergency.

After the April 2006 cease-fire announced by the government and the Maoists, incidents of human rights violations by the government declined substantially while incidents of human rights violations by the Maoists remained relatively unabated. Even after signing a comprehensive peace agreement with the government in November 2006, Maoists' extortion, abduction, and intimidation largely remained uncontrolled. Although activities by other political parties have increased significantly in the rural parts of Nepal, political party representatives, police, non-governmental organization (NGO) workers, and journalists reported continuous threats and intimidation by Maoist cadres. During the January-February 2007 uprising in the Terai, reports of government security forces using excessive force to quell demonstrations were common.

There are three major daily English-language newspapers, "The Kathmandu Post," "The Himalayan Times" and "The Rising Nepal." The last and its vernacular sister publication are owned by a government corporation. There are hundreds of smaller daily and weekly periodicals that are privately owned and of varying journalistic quality. Views expressed since the 1990 move to democracy are varied and vigorous. Currently, 75 radio and four television stations are privately owned and operated, following liberalization of licensing regulations. Radio Nepal and Nepal Television are government-owned and operated. There are nearly 200 cable television operators nationwide, and satellite dishes to receive television broadcasts abound.

Trafficking in women and child labor remain serious problems. Discrimination against women and lower castes is prevalent.

==Defense==
Nepal's military consists of the nearly 95,000-strong Nepalese Army (NA), which is organized into six divisions (Far-Western, Mid-Western, Western, Central, Eastern, and Valley Divisions) with separate Aviation, Parachute, and Security Brigades as well as brigade-sized directorates encompassing air defense, artillery, engineers, logistics, and signals which provide general support to the NA. The Prime Minister is the Supreme Commander of the NA. The Prime Minister is currently Minister of Defense. General Rookmangud Katawal is Chief of the Army Staff (COAS), also the senior commissioned officer of the NA.

Since 1958, the NA has contributed over 50,000 peacekeepers to 28 peacekeeping missions such as the UN Interim Force in Lebanon (UNIFIL), the UN Protection Force (UNPROFOR) in the former Yugoslavia, the UN Operational Mission in Somalia II (UNOSOMII), the UN Mission in Haiti (UNMIH), and the UN Mission of Support in East Timor (UNTAET). NA units are presently serving in the UN Mission in Sierra Leone (UNAMSIL), the UN Mission in the Democratic Republic of the Congo (MONUC), and the UN Mission in Haiti (MINUSTOH), among others. Approximately 3,400 of the world-famous Nepalese Gurkha forces serve in the British Army, and 40,000 serve in the Indian Army.

==Economy==

Nepal ranks among the world's poorest countries, with a per capita income of around $322. Based on national calorie/GNP criteria, an estimated 31% of the population is below the poverty line. An isolated, agrarian society until the mid-20th century, Nepal entered the modern era in 1951 without schools, hospitals, roads, telecommunications, electric power, industry, or a civil service. The country has, however, made progress toward sustainable economic growth since the 1950s and is committed to a program of economic liberalization.
[[File:Nepal cow.jpg|right]]
Nepal launched its tenth five-year economic development plan in 2002; its currency has been made convertible; and fourteen state enterprises have been privatized, seven liquidated and two dissolved. Foreign aid accounts for more than half the development budget. The Government of Nepal has shown an increasing commitment to fiscal transparency, good governance, and accountability. Also in 2002, the government began to prioritize development projects and eliminate wasteful spending. In consultation with civil society and donors, the government cut 160 development projects that were driven by political patronage.

Agriculture remains Nepal's principal economic activity, employing over 71% of the population and providing 38% of GDP. Only about 25% of the total area is cultivable; another 33% is forested; most of the rest is mountainous. Rice and wheat are the main food crops. The lowland Terai region produces an agricultural surplus, part of which supplies the food-deficient hill areas. Because of Nepal's dependence on agriculture, the annual monsoon rain, or lack of it, strongly influences economic growth.

Nepal's exports increased 2.8% in FY 2005/2006 compared to an increase of 8.3% in FY 2004/2005. Imports grew by 9.8% in FY 2005/2006 compared with 9.2% in FY 2004/2005. Exports were constrained by a prolonged phase of general strikes, industrial closures, and political turmoil during the second half of FY 2005/2006 and also by a significant drop in Nepal's main export, ready-made textile products. The trade deficit for FY 2004/2005 was $1.2 billion, which widened to $1.4 billion in FY 2005/2006. Real GDP growth during 1996-2002 averaged less than 5%. Real growth experienced a one-time jump in 1999, rising to 6%, before slipping back below 5%. In 2002, GDP recorded a negative growth rate of 0.33%, largely because of the Maoist insurgency. GDP grew 3.1% in FY 2002/2003 and 3.6% in FY 2003/2004, and again slipped to 2.4% in 2004/2005 and to 2.4% in FY 2005/2006, according to the Central Bureau of Statistics.

Despite its growing trade deficit, Nepal traditionally has a balance of payments (BOP) surplus due to remittances from Nepalese working abroad. In FY 2005/2006, Nepal recorded a balance of payments surplus of $355 million, as compared to $79 million in FY 2004/2005. The lower BOP surplus in FY 2004/2005 was mainly attributed to the lower inflow of net government loans, and the higher surplus in FY 2005/2006 was due to resumption of foreign loans and assistance after the April 2006 People's Movement. Both the current account and the capital account registered significant growth in FY 2005/2006. Nepal receives substantial amounts of external assistance from India, the United Kingdom, the United States, Japan, Germany, and the Scandinavian countries. Several multilateral organizations--including the World Bank, the Asian Development Bank, and the UN Development Program--also provide assistance. Such assistance decreased substantially in FY 2004/2005 after the royal takeover of February 1, 2005 and also because of the Maoist conflict, which undermined development activities throughout most of Nepal. On April 23, 2004, Nepal became the 147th member of the World Trade Organization (WTO).

With eight of the world's ten highest mountain peaks--including Mt. Everest at 8,848 m (29,000 ft)--Nepal is a tourist destination for hikers and mountain climbers. However, the decade-long insurgency and a global economic slowdown threatened the tourism industry. Figures from the Department of Immigration showed a 4% increase in arrivals in 2006, but these remained well below numbers during 1999, the peak tourism year. Recent tourist arrivals have given relief to the tourism-based hotel, trekking, mountaineering, and aviation industries. Since the political parties and Maoists brokered a comprehensive peace agreement in November 2006, the tourism industry hoped that guest arrivals in Nepal would bounce quickly back to 1999 levels and higher.

Swift rivers flowing south through the Himalayas have massive hydroelectric potential to service domestic power needs and growing demand from India. Only about 1% of Nepal's hydroelectric potential is currently tapped. Several hydroelectric projects, at Kulekhani and Marsyangdi, were completed in the early to late 1980s. In the early 1990s, one large public-sector project, the Kali Gandaki A (144 megawatts--MW), and a number of private projects were planned; some have been completed. Kali Gandaki A started commercial operation in August 2002. The most significant privately financed hydroelectric projects currently in operation are the Khimti Khola (60 MW) and Bhote Koshi (36 MW) projects.

The environmental impact of Nepal's hydroelectric projects has been limited by the fact that most are "run-of-river," with only one storage project undertaken to date. The planned private-sector West Seti (750 MW) storage project is dedicated to electricity exports. An Australian company signed a power purchase agreement with the Indian Power Trading Corporation in September 2002 and has the lead on the project. Negotiations with India for a power purchase agreement have been underway for several years, but agreement on pricing and capital financing remains a problem. The Government of Nepal has taken up the issue of project financing for the West Seti project with the EXIM Bank of China. The Department of Electricity Development recently obtained proposals from 14 foreign companies for survey licenses of three projects--600 MW Budhi Gandaki, 402 MW Arun III, and 300 MW Upper Karnali. The Ministry of Water Resources is currently evaluating the proposals and has not awarded the survey licenses. Currently, domestic demand for electricity is increasing at 8%-10% a year.

Population pressure on natural resources is increasing. Overpopulation is already straining the "carrying capacity" of the middle hill areas, particularly the Kathmandu Valley, resulting in the depletion of forest cover for crops, fuel and fodder, and contributing to erosion and flooding. Additionally, water supplies within the Kathmandu Valley are not considered safe for consumption, and disease outbreaks are not uncommon. Although steep mountain terrain makes exploitation difficult, mineral surveys have found small deposits of limestone, magnesite, zinc, copper, iron, mica, lead, and cobalt.

Progress has been achieved in education, health, and infrastructure. A countrywide primary education system is under development, and Tribhuvan University has several campuses. Although eradication efforts continue, malaria has been controlled in the fertile but previously uninhabitable Terai region in the south. Kathmandu is linked to India and nearby hill regions by an expanding highway network.
*GDP (2005/2006): $7.7 billion.
*Annual growth rate of real GDP (FY 2005/2006): 2.38%.
*Per capita income (gross national product, FY 2005/2006): $322.
*Avg. inflation rate (Consumer Price Index, November 2006 est.): 8.6%.
*Natural resources: Water, hydropower, scenic beauty, limited but fertile agricultural land, timber.
*Agriculture (38% of GDP): Products--rice, wheat, maize, sugarcane, oilseed, jute, millet, potatoes. Cultivated land--25%.
*Industry (10% of GDP): Types--carpets, pashmina, garments, cement, cigarettes, bricks, sugar, soap, matches, jute, hydroelectric power.
*Trade (2005/2006): Exports--$834 million: carpets, pashmina, garments. Major markets--Germany and the U.S. Imports--$2.2 billion: manufactured goods. Major supplier--India.
*Central government budget (FY 2006/2007): $1.9 billion; military allocation $139 million.
*Official exchange rate (as of July 16, 2006): 74.10 Nepalese rupees=U.S. $1.00.
*Fiscal year: July 16-July 15.

==History==
====Early History====
[[File:Nepal temple.JPG|left|Temple.]]
Modern Nepal was created in the latter half of the 18th century when Prithvi Narayan Shah, the ruler of the small principality of Gorkha, formed a unified country from a number of independent hill states. The country was frequently called the Gorkha Kingdom, the source of the term "Gurkha" used for Nepali soldiers.

After 1800, the heirs of Prithvi Narayan Shah proved unable to maintain firm political control over Nepal. A period of internal turmoil followed, heightened by Nepal's defeat by the British in a war from 1814 to 1816. Stability was restored after 1846 when the Rana family gained power, entrenched itself through hereditary prime ministers, and reduced the monarch to a figurehead. The Rana regime, a highly centralized autocracy, pursued a policy of isolating Nepal from external influences. This policy helped Nepal maintain its national independence during the colonial era, but also impeded the country's economic development.

In 1950, King Tribhuvan, a direct descendant of Prithvi Narayan Shah, fled his "palace prison" to newly independent India, touching off an armed revolt against the Rana administration. This allowed the return of the Shah family to power and, eventually, the appointment of a non-Rana prime minister. A period of quasi-constitutional rule followed, during which the monarch, assisted by the leaders of fledgling political parties, governed the country. During the 1950s, efforts were made to frame a constitution for Nepal that would establish a representative form of government, based on the British model.
{{Clear}}

====Democracy Develops====
In early 1959, King Mahendra, who had succeeded his father Tribhuvan in 1955, issued a new constitution and the first democratic elections for a national assembly were held. The Nepali Congress Party, a moderate socialist group, gained a substantial victory in the election. Its leader, B.P. Koirala, formed a government and served as Prime Minister.

Declaring parliamentary democracy a failure eighteen months later, King Mahendra dismissed the Koirala government and promulgated a new constitution on December 16, 1962. The new constitution established a "partyless" system of panchayats (councils), which King Mahendra claimed was a democratic form of government closer to Nepalese traditions. As a hierarchical structure progressing from village assemblies to a Rastriya Panchayat (National Parliament), the Panchayat system enshrined the absolute power of the monarchy and kept the King as head of state with sole authority over all governmental institutions, including the Cabinet (Council of Ministers) and the Parliament.

King Mahendra was succeeded by his 27-year-old son, King Birendra, in 1972. Amid student demonstrations and anti-regime activities in 1979, King Birendra called for a national referendum to decide the nature of Nepal's government--either the continuation of the Panchayat system with democratic reforms or the establishment of a multiparty system. The referendum was held in May 1980, and the Panchayat system won a narrow victory. The King carried out the promised reforms, including selection of the prime minister by the Rastriya Panchayat.

====Movement to Restore Democracy====
In 1990, the political parties again pressed the King and the government for change. Leftist parties united under a common banner of the United Left Front and joined forces with the Nepali Congress Party to launch strikes and demonstrations in the major cities of Nepal. This "Movement to Restore Democracy" was initially dealt with severely, with more than 50 persons killed by police gunfire and hundreds arrested. In April, the King capitulated. Consequently, he dissolved the Panchayat system, lifted the ban on political parties, and released all political prisoners.

An interim government was sworn in on April 19, 1990, headed by Krishna Prasad Bhattarai as Prime Minister presiding over a cabinet made up of members of the Nepali Congress Party, the communist parties of Nepal, royal appointees, and independents. The new government drafted and promulgated a new constitution in November 1990, which enshrined fundamental human rights and established Nepal as a parliamentary democracy under a constitutional monarch. International observers characterized the May 1991 elections as free and fair, in which the Nepali Congress Party won 110 out of 205 seats to form the government.

In mid-1994, the Parliament was dissolved due to dissension within the Nepali Congress Party. The subsequent general election held November 15, 1994, gave no party a majority. The 1994 elections resulted in a Nepali Congress Party defeat and a hung Parliament, with a minority government led by the Communist Party of Nepal-United Marxist Leninist Party (CPN-UML); this made Nepal the world's first communist monarchy, with Man Mohan Adhikary as Prime Minister. The next five years saw five successive unstable coalition governments and the beginning of a Maoist insurgency.

Following the May 1999 general elections, the Nepali Congress Party once again headed a majority government after winning 113 out of 205 seats. But the pattern of short-lived governments persisted. There were three Nepali Congress Party Prime Ministers after the 1999 elections: K.P. Bhattarai (5/31/99-3/17/00); G. P. Koirala (3/20/00-7/19/01); and Sher Bahadur Deuba (7/23/01-10/04/02).

On June 1, 2001, Crown Prince Dipendra reportedly shot and killed his father King Birendra, his mother Queen Aishwarya, his brother, his sister, his father's younger brother Prince Dhirendra, and several aunts before turning the gun on himself. After his death two days later, the late King's surviving brother Gyanendra was proclaimed King.

====Maoist Insurgency====
In February 1996, the leaders of the Maoist United People's Front began a violent insurgency, waged through killings, torture, bombings, kidnappings, extortion, and intimidation against civilians, police, and public officials in more than 50 of the country's 75 districts. Over 13,000 police, civilians, and insurgents were killed in the conflict. The government and Maoists held peace talks in August, September, and November of 2001, but they were unsuccessful, and the Maoists resumed their violent insurgency. Shortly after the 2001 peace talks failed, King Gyanendra declared a state of emergency, which the Parliament approved by a two-thirds vote. On the recommendation of Prime Minister Sher Bahadur Deuba, the King dissolved the House on May 22, 2002.

====Struggle for Democracy Continues====
In a sudden turn of events on October 4, 2002, King Gyanendra removed Prime Minister Deuba and assumed executive power. The entire Council of Ministers was also dissolved, and the November 13, 2002 elections to the dissolved House of Representatives were called off. After a week-long consultation with the leaders of various political parties, on October 11, 2002, the King appointed Lokendra Bahadur Chand as Prime Minister with a five-point directive that included creating an environment of peace and security as well as holding elections to the local bodies and the House of Representatives.

Under Chand's premiership, the government and Maoists declared a cease-fire on January 29, 2003. This marked the second cease-fire with the Maoists; the first, in 2001, had been broken by the Maoists. The 2003 cease-fire included an agreement to undertake initiatives to resolve the Maoist problem through dialogue and bring the Communist Party of Nepal (Maoist) back into mainstream politics. After the announcement of the 2003 cease-fire, the Chand government held two rounds of peace talks with the Maoists, in April and May. But in its effort to end political instability, it failed to secure the support of the leading political parties. In the face of growing pressure from political parties and their mass movement, Chand resigned from his post on May 30, 2003, after only seven months in power.

The King appointed Surya Bahadur Thapa as the new Prime Minister on June 4, 2003, amidst opposition from the major political parties. Another round of peace talks was held in mid-August 2003, but on August 27, 2003 the Maoists broke the second cease-fire. Thapa resigned in May 2004 as a result of political pressure. In June 2004, the King reinstated formerly dismissed Sher Bahadur Deuba as Prime Minister.

====King's Direct Rule====
Citing a steady deterioration of conditions in the country, King Gyanendra dismissed the Cabinet and constituted a Council of Ministers under his own chairmanship on February 1, 2005. He stated that the Council of Ministers (i.e., Cabinet) would try to reactivate multi-party democracy within three years. The King subsequently declared a state of emergency and suspended almost all fundamental rights for nearly three months. His new government was sworn in on February 2, 2005. The Council of Ministers under the King's chairmanship was reshuffled twice during the King's 15 months of direct rule.

====People's Movement====
In April 2006, the major political parties, in cooperation with the Maoists, organized massive countrywide demonstrations for the restoration of democracy, forcing the King to relinquish power. On April 24, 2006, King Gyanendra reinstated the 1999 Parliament. Former Prime Minister Girija Prasad Koirala of the Nepali Congress Party was selected by the Seven-Party Alliance (SPA) of political parties to again lead the government. The Maoists declared a unilateral cease-fire on April 26, and the new Koirala government announced its own unilateral cease-fire and plans for peace talks with the Maoist insurgents on May 3, 2006. The SPA and the Maoists have since signed a number of agreements, including, in November 2006, a comprehensive peace agreement to end the decade-long insurgency. Both sides also agreed to an arms management process and elections for a Constituent Assembly. On January 15, 2007 a 329-member interim Parliament, including 83 Maoist representatives and other party representatives, was constituted. The first sitting of the Parliament unanimously endorsed an interim constitution, which replaced the constitution of 1990. On April 1, 2007, the ruling eight-party government formed an interim Council of Ministers through political consensus, including five Maoist ministers.

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!colspan=2 style="width: 100%; text-align: center; background-color: #000088; color: white; "|'''Copyright Details'''
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|style=" background-color: none;"| Some content for this article is in the [[Public Domain]] in the United States because it is a work of the United States Federal Government under the terms of Title 17, Chapter 1, Section 105 of the U.S. Code
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|style="background-color: none;border-top: 2px solid black"| File available from the {{{1|[[United States Federal Government]] [http://www.state.gov/r/pa/ei/bgn/5283.htm]}}}.
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{{Asian Countries}}
[[Category:Landlocked Countries]]
[[Category:Hinduism]]
[[Category:Buddhism]]

Nepal

2015-01-14T04:14:36Z

GoraGurung:

{{Country
|name =नेपाल ''Nepal''
|map =Nepal rel 90.JPG
|map2 =Nepal location.png
|flag =Flag of Nepal.png
|arms =Arms of Nepal.png
|capital =Kathmandu
|capital-raw =
|government =Federal republic
|government-raw =
|language =Nepali
|king =
|queen =
|monarch-raw =
|president =Ram Baran Yadav
|president-raw =
|chancellor =
|chancellor-raw =
|pm =Sushil Koirala
|pm-raw =
|area =56,136 sq. miles
|pop =29,519,114 est.
|pop-basis =2008
|gdp =$7.7 billion
|gdp-year =2007
|gdp-pc =$322
|currency =Nepalese rupee
|idd =
|tld =
}}
'''Nepal''' is a landlocked Himalayan country in South [[Asia]]. It is bordered by [[Tibet]] and [[China]] to the north and by [[India]] to the south, east and west. Nepal is home to eight of the world's top ten highest mountains, including [[Mount Everest]]. Kathmandu is the capital and largest city.

==Geography==
*Area: 147,181 sq. km. (56,136 sq. mi.), about the size and shape of Tennessee, bordering China and India.
*Cities: Capital--Kathmandu (3 districts) (pop. 2.2 million est.). Other cities--Biratnagar, Patan, Pokhara, Birgunj, Dharan, Nepalgunj.
*Terrain: Flat and fertile in the southern Terai region; terraced cultivation and swiftly flowing mountain rivers in the central hills; and the high Himalayas in the north. Eight of the world's ten highest peaks are in Nepal, including Mount Everest. Kathmandu, the capital, is in a broad valley at 1,310 meters (4,300 ft.) elevation.
*Climate: Subtropical in the south to cool summers and severe winters in the northern mountains. The monsoon season is from June through September, during which showers occur almost every day, bringing 75 to 150 centimeters (30-60 in.) of rain.
*Time zone: Nepal is 10 hours and 45 minutes ahead of Eastern Standard Time and does not observe daylight saving time.

==People==
[[File:Nepal ethnic groups map.jpg|thumb|left|320px|Ethnic groups.]]
Perched on the southern slopes of the Himalayan Mountains, 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 central Asia.

Among the earliest inhabitants were the Newars of the Kathmandu Valley and aboriginal Tharus in the southern Terai region. The ancestors of the Brahman and Chetri caste groups came from India, while other ethnic groups trace their origins to central Asia and Tibet, including the Gurungs and Magars in the west, Rais and Limbus in the east, and Sherpas and Bhotias in the north.

The Terai, a part of the Ganges Basin with 20% of Nepal's land, is the country's breadbasket. Much of the population is physically and culturally similar to the Indo-Aryan people of northern India. People of Indo-Aryan and Mongoloid origin live in the hill regions. The mountainous highlands are sparsely populated. The Kathmandu Valley, in the middle hill region, constitutes a small fraction of the nation's area but is the most densely populated, with over 7% of the population.
[[File:Monk Nepal Venerable Aggacitta.jpg|thumb|left|Monk Venerable Aggacitta.]]
Religion is important in Nepal; the Kathmandu Valley alone has more than 2,700 religious shrines. According to the 2001 census, Nepal is about 81% Hindu. Buddhists account for about 11% of the population. The interim constitution promulgated on January 15, 2007 declared the country a "secular state." Buddhist and Hindu shrines and festivals are respected and celebrated by many. The government celebrates most Hindu and some Buddhist holidays. Nepal also has small Muslim and Christian minorities. Certain animistic practices of old indigenous religions also survive.

Nepali is the official language, although a dozen different languages and about 30 major dialects are spoken throughout the country. Derived from Sanskrit, Nepali is related to the Indian language, Hindi, and is spoken by about 90% of the population. Many Nepalese in government and business also speak Hindi and English.
*Population (2007 estimate): 29 million.
*Annual growth rate (2007 estimate): 2.132%.
*Population breakdown/distribution: Rural (86%); female (50%); in the southern Terai region (49%); in the hills (44%); in the mountains (7%).
*Ethnic groups (caste and ethnicity are often used interchangeably): Pahari, Brahman, Chetri, Newar, Gurung, Magar, Tamang, Rai, Limbu, Sherpa, Tharu, and others.
*Religions: Hinduism (81%), Buddhism (11%), Islam (4%), and others (4%).
*Languages: Nepali and more than 12 others.
*Education: Years compulsory--0. Attendance--primary 80.4%, secondary 20%. Literacy--49% (63% male, 35% female).
*Health: Infant mortality rate (2007 estimate)--63.7 deaths/1,000 live births. Life expectancy (2007 estimate)--61.9 years for males and 65.5 years for females.
*Work force: Agriculture--71%; industry--3%; services--11%; other--1%.

==Government==
A Maoist insurgency--punctuated by cease-fires in 2001, 2003, 2005, and the latest one from April 26, 2006--has been ongoing since 1996. After King Gyanendra announced the reinstatement of Parliament on April 24, 2006, the Maoists declared a three-month unilateral ceasefire on April 26, 2006 which the new Koirala government reciprocated on May 3, 2006. Since then the Seven-Party Alliance (SPA) and the Maoists have signed five agreements, culminating in the comprehensive peace agreement of November 21, 2006, effectively ending the insurgency. However, Maoist violence and intimidation have continued since the agreement.

The main agenda of the SPA and the Maoists is to hold a Constituent Assembly (CA) election. The Constituent Assembly would draft and promulgate a new constitution defining the future political system in Nepal. The interim constitution, adopted on January 15, 2007, expressed full commitment to democratic ideals and norms, including competitive multi-party democracy, civil liberties, fundamental human rights, adult enfranchisement, periodic elections, press freedom, an independent judiciary, and the rule of law. The interim constitution also guaranteed the basic rights of Nepali citizens to formulate a constitution for themselves and to participate in the Constituent Assembly in an environment free from fear. The interim constitution transferred all powers of the King as head of state to the prime minister and stripped the King of any ceremonial constitutional role. Under the interim constitution, the fate of the monarchy will be decided by the first meeting of the Constituent Assembly. The interim Parliament is a unicameral house.
[[File:Nepal 2012.jpg|300px|right]]
After promulgation of the interim constitution, many socially marginalized ethnic communities, including the Madhesis of the lowland Terai, began widespread protests against the proposed proportional representation system incorporated in the new constitution. After a Maoist shot and killed one of the demonstrators, violent protests erupted with clashes between police and demonstrators and attacks on government facilities in at least 10 districts, resulting in the death of over 30 people. Prime Minister Koirala, in an address to the nation on February 7, 2007 promised to amend the constitution to meet the demands of the Terai people. However, the situation remains tense, with continuing protests and violence.

Nepal's judiciary is legally separated from the executive and legislative branches and, in practice, has increasingly shown the will to be independent of political influence. However, by asserting executive control over the judiciary, the interim constitution called into question this independence. Under the interim constitution, the Prime Minister appoints the Chief Justice on the recommendation of the Constitutional Council, and the Chief Justice appoints other judges on the recommendation of the Judicial Council. All lower court decisions, including acquittals, are subject to appeal. The Supreme Court is the court of last appeal.

===Principal Government Officials===
====Cabinet Ministers====
*Prime Minister, Defense--Girija Prasad Koirala
*Peace and Reconstruction--Ram Chandra Paudel
*Foreign Affairs--Sahana Pradhan
*Information and Communications--Krishna Bahadur Mahara
*Education and Sports--Pradip Nepal
*Environment, Science and Technology--Mahantha Thakur
*Finance--Dr. Ram Sharan Mahat
*Law, Justice and Parliamentary Affairs--Narendra Bikram Nembang
*Home Affairs--Krishna Prasad Sitaula
*Local Development--Dev Prasad Gurung
*Industry, Commerce and Supplies--Rajendra Mahato
*Culture, Tourism and Civil Aviation--Prithvi Subba Gurung
*Forest and Soil-Conservation--Matrika Prasad Yadav
*Agriculture and Cooperatives--Chhabilal Biswokarma
*Physical Planning and Works--Hisila Yami
*Land-Reforms and Management--Jagat Bahadur Bogati
*Women, Children and Social Welfare--Khadga Bahadur Biswokarma
*Health and Population--Giriraj Mani Pokharel

====State Ministers====
*Labour and Transport Management--Ramesh Lekhak
*Water Resources--Gyanendra Bahadur Karki
*General Administration--Ram Chandra Yadav
*Law, Justice and Parliamentary Affairs--Indra Bahadur Gurung
*Education--Mohan Singh Rathour

===Foreign Relations===
[[File:Nepal map.jpg|left|340px]]
As a small, landlocked country wedged between two much larger and far stronger powers, Nepal seeks good relations with both India and China. Nepal formally established relations with China in 1956 and, since then, their bilateral relations have generally been good. Because of strong cultural, religious, linguistic, and economic ties, Nepal's association with India traditionally has been close. India and Nepal restored trade relations in 1990 after a break caused by India's security concerns over Nepal's relations with China. A bilateral trade treaty signed with India in 1991 is renewed every five years. The most recent renewal was on March 6, 2007, which expires on March 5, 2012. A transit treaty with India, which allows Nepal to trade with other countries through the Calcutta/Haldia ports, was extended on March 30, 2006 for seven years.

Nepal played an active role in the formation of the economic development-oriented South Asian Association for Regional Cooperation (SAARC) and is the site of its secretariat. Nepal is also a signatory of the agreement on South Asian Free Trade Area (SAFTA), which came into force on January 1, 2006. A SAFTA tariff liberalization program (TLP) was scheduled to be implemented July 1, 2006. All member countries, except for Nepal, whose TLP started on August 1, 2006, reduced tariffs for each other. However, on July 1, 2006, Pakistan officially toughened its stance of not trading with India under the SAFTA arrangements and did not announce TLP for India. Due to the stalemate between India and Pakistan, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation Free Trade Agreement (BIMSTEC-FTA), which was initially scheduled to come into force on July 1, 2006, was deferred indefinitely. The BIMSTEC Summit scheduled for February 8, 2007, in India was also deferred due to political instability in member states, including Nepal. On international issues, Nepal follows a non-aligned policy and often votes with the Non-Aligned Movement in the United Nations. Nepal participates in a number of UN specialized agencies and is a member of the World Trade Organization, World Bank, International Monetary Fund, Colombo Plan, and Asian Development Bank.

===Human Rights===
Since political reform began in 1990, some progress has been achieved in the transition to a more open society with greater respect for human rights; however, substantial problems remain. Poorly trained police sometimes use excessive force in quelling violent demonstrations. In addition, there have been reports of torture during detention and widespread reports of custodial abuse. In 2000, the government established the National Human Rights Commission, a government-appointed commission with a mandate to investigate human rights violations. The government is sometimes slow to follow the commission's recommendations or to enforce accountability for recent and past abuses. The King's February 2005 dismissal of the government, subsequent imposition of emergency rule and suspension of many civil rights--including freedom of expression, assembly, and privacy--was a setback for human rights in Nepal. During this three-month period, censors were deployed to major newspapers, and many political leaders were kept under house arrest. The King's government restricted the media from publishing interviews, articles, or news items against the spirit of the royal proclamation of February 1, 2005 or in support of terrorist or destructive activities. The reinstated government, led by Prime Minister Koirala, reversed these decisions in May 2006. The interim constitution promulgated on January 15, 2007 ensured unrestricted freedom of expression.

Both the Maoists and security personnel have committed numerous human rights violations. The Maoists have used tactics such as kidnapping, torture, bombings, intimidation, killings, and conscription of children. Within the Nepalese security forces, violations ranged from disappearances to executions. After the royal takeover on February 1, 2005 and subsequent imposition of the state of emergency, the security forces arrested many political leaders, student leaders, journalists, and human rights activists under the Public Security Act of 1989, although all were released by June 2005 when the King ended the state of emergency.

After the April 2006 cease-fire announced by the government and the Maoists, incidents of human rights violations by the government declined substantially while incidents of human rights violations by the Maoists remained relatively unabated. Even after signing a comprehensive peace agreement with the government in November 2006, Maoists' extortion, abduction, and intimidation largely remained uncontrolled. Although activities by other political parties have increased significantly in the rural parts of Nepal, political party representatives, police, non-governmental organization (NGO) workers, and journalists reported continuous threats and intimidation by Maoist cadres. During the January-February 2007 uprising in the Terai, reports of government security forces using excessive force to quell demonstrations were common.

There are three major daily English-language newspapers, "The Kathmandu Post," "The Himalayan Times" and "The Rising Nepal." The last and its vernacular sister publication are owned by a government corporation. There are hundreds of smaller daily and weekly periodicals that are privately owned and of varying journalistic quality. Views expressed since the 1990 move to democracy are varied and vigorous. Currently, 75 radio and four television stations are privately owned and operated, following liberalization of licensing regulations. Radio Nepal and Nepal Television are government-owned and operated. There are nearly 200 cable television operators nationwide, and satellite dishes to receive television broadcasts abound.

Trafficking in women and child labor remain serious problems. Discrimination against women and lower castes is prevalent.

==Defense==
Nepal's military consists of the nearly 95,000-strong Nepalese Army (NA), which is organized into six divisions (Far-Western, Mid-Western, Western, Central, Eastern, and Valley Divisions) with separate Aviation, Parachute, and Security Brigades as well as brigade-sized directorates encompassing air defense, artillery, engineers, logistics, and signals which provide general support to the NA. The Prime Minister is the Supreme Commander of the NA. The Prime Minister is currently Minister of Defense. General Rookmangud Katawal is Chief of the Army Staff (COAS), also the senior commissioned officer of the NA.

Since 1958, the NA has contributed over 50,000 peacekeepers to 28 peacekeeping missions such as the UN Interim Force in Lebanon (UNIFIL), the UN Protection Force (UNPROFOR) in the former Yugoslavia, the UN Operational Mission in Somalia II (UNOSOMII), the UN Mission in Haiti (UNMIH), and the UN Mission of Support in East Timor (UNTAET). NA units are presently serving in the UN Mission in Sierra Leone (UNAMSIL), the UN Mission in the Democratic Republic of the Congo (MONUC), and the UN Mission in Haiti (MINUSTOH), among others. Approximately 3,400 of the world-famous Nepalese Gurkha forces serve in the British Army, and 40,000 serve in the Indian Army.

==Economy==

Nepal ranks among the world's poorest countries, with a per capita income of around $322. Based on national calorie/GNP criteria, an estimated 31% of the population is below the poverty line. An isolated, agrarian society until the mid-20th century, Nepal entered the modern era in 1951 without schools, hospitals, roads, telecommunications, electric power, industry, or a civil service. The country has, however, made progress toward sustainable economic growth since the 1950s and is committed to a program of economic liberalization.
[[File:Nepal cow.jpg|right]]
Nepal launched its tenth five-year economic development plan in 2002; its currency has been made convertible; and fourteen state enterprises have been privatized, seven liquidated and two dissolved. Foreign aid accounts for more than half the development budget. The Government of Nepal has shown an increasing commitment to fiscal transparency, good governance, and accountability. Also in 2002, the government began to prioritize development projects and eliminate wasteful spending. In consultation with civil society and donors, the government cut 160 development projects that were driven by political patronage.

Agriculture remains Nepal's principal economic activity, employing over 71% of the population and providing 38% of GDP. Only about 25% of the total area is cultivable; another 33% is forested; most of the rest is mountainous. Rice and wheat are the main food crops. The lowland Terai region produces an agricultural surplus, part of which supplies the food-deficient hill areas. Because of Nepal's dependence on agriculture, the annual monsoon rain, or lack of it, strongly influences economic growth.

Nepal's exports increased 2.8% in FY 2005/2006 compared to an increase of 8.3% in FY 2004/2005. Imports grew by 9.8% in FY 2005/2006 compared with 9.2% in FY 2004/2005. Exports were constrained by a prolonged phase of general strikes, industrial closures, and political turmoil during the second half of FY 2005/2006 and also by a significant drop in Nepal's main export, ready-made textile products. The trade deficit for FY 2004/2005 was $1.2 billion, which widened to $1.4 billion in FY 2005/2006. Real GDP growth during 1996-2002 averaged less than 5%. Real growth experienced a one-time jump in 1999, rising to 6%, before slipping back below 5%. In 2002, GDP recorded a negative growth rate of 0.33%, largely because of the Maoist insurgency. GDP grew 3.1% in FY 2002/2003 and 3.6% in FY 2003/2004, and again slipped to 2.4% in 2004/2005 and to 2.4% in FY 2005/2006, according to the Central Bureau of Statistics.

Despite its growing trade deficit, Nepal traditionally has a balance of payments (BOP) surplus due to remittances from Nepalese working abroad. In FY 2005/2006, Nepal recorded a balance of payments surplus of $355 million, as compared to $79 million in FY 2004/2005. The lower BOP surplus in FY 2004/2005 was mainly attributed to the lower inflow of net government loans, and the higher surplus in FY 2005/2006 was due to resumption of foreign loans and assistance after the April 2006 People's Movement. Both the current account and the capital account registered significant growth in FY 2005/2006. Nepal receives substantial amounts of external assistance from India, the United Kingdom, the United States, Japan, Germany, and the Scandinavian countries. Several multilateral organizations--including the World Bank, the Asian Development Bank, and the UN Development Program--also provide assistance. Such assistance decreased substantially in FY 2004/2005 after the royal takeover of February 1, 2005 and also because of the Maoist conflict, which undermined development activities throughout most of Nepal. On April 23, 2004, Nepal became the 147th member of the World Trade Organization (WTO).

With eight of the world's ten highest mountain peaks--including Mt. Everest at 8,848 m (29,000 ft)--Nepal is a tourist destination for hikers and mountain climbers. However, the decade-long insurgency and a global economic slowdown threatened the tourism industry. Figures from the Department of Immigration showed a 4% increase in arrivals in 2006, but these remained well below numbers during 1999, the peak tourism year. Recent tourist arrivals have given relief to the tourism-based hotel, trekking, mountaineering, and aviation industries. Since the political parties and Maoists brokered a comprehensive peace agreement in November 2006, the tourism industry hoped that guest arrivals in Nepal would bounce quickly back to 1999 levels and higher.

Swift rivers flowing south through the Himalayas have massive hydroelectric potential to service domestic power needs and growing demand from India. Only about 1% of Nepal's hydroelectric potential is currently tapped. Several hydroelectric projects, at Kulekhani and Marsyangdi, were completed in the early to late 1980s. In the early 1990s, one large public-sector project, the Kali Gandaki A (144 megawatts--MW), and a number of private projects were planned; some have been completed. Kali Gandaki A started commercial operation in August 2002. The most significant privately financed hydroelectric projects currently in operation are the Khimti Khola (60 MW) and Bhote Koshi (36 MW) projects.

The environmental impact of Nepal's hydroelectric projects has been limited by the fact that most are "run-of-river," with only one storage project undertaken to date. The planned private-sector West Seti (750 MW) storage project is dedicated to electricity exports. An Australian company signed a power purchase agreement with the Indian Power Trading Corporation in September 2002 and has the lead on the project. Negotiations with India for a power purchase agreement have been underway for several years, but agreement on pricing and capital financing remains a problem. The Government of Nepal has taken up the issue of project financing for the West Seti project with the EXIM Bank of China. The Department of Electricity Development recently obtained proposals from 14 foreign companies for survey licenses of three projects--600 MW Budhi Gandaki, 402 MW Arun III, and 300 MW Upper Karnali. The Ministry of Water Resources is currently evaluating the proposals and has not awarded the survey licenses. Currently, domestic demand for electricity is increasing at 8%-10% a year.

Population pressure on natural resources is increasing. Overpopulation is already straining the "carrying capacity" of the middle hill areas, particularly the Kathmandu Valley, resulting in the depletion of forest cover for crops, fuel and fodder, and contributing to erosion and flooding. Additionally, water supplies within the Kathmandu Valley are not considered safe for consumption, and disease outbreaks are not uncommon. Although steep mountain terrain makes exploitation difficult, mineral surveys have found small deposits of limestone, magnesite, zinc, copper, iron, mica, lead, and cobalt.

Progress has been achieved in education, health, and infrastructure. A countrywide primary education system is under development, and Tribhuvan University has several campuses. Although eradication efforts continue, malaria has been controlled in the fertile but previously uninhabitable Terai region in the south. Kathmandu is linked to India and nearby hill regions by an expanding highway network.
*GDP (2005/2006): $7.7 billion.
*Annual growth rate of real GDP (FY 2005/2006): 2.38%.
*Per capita income (gross national product, FY 2005/2006): $322.
*Avg. inflation rate (Consumer Price Index, November 2006 est.): 8.6%.
*Natural resources: Water, hydropower, scenic beauty, limited but fertile agricultural land, timber.
*Agriculture (38% of GDP): Products--rice, wheat, maize, sugarcane, oilseed, jute, millet, potatoes. Cultivated land--25%.
*Industry (10% of GDP): Types--carpets, pashmina, garments, cement, cigarettes, bricks, sugar, soap, matches, jute, hydroelectric power.
*Trade (2005/2006): Exports--$834 million: carpets, pashmina, garments. Major markets--Germany and the U.S. Imports--$2.2 billion: manufactured goods. Major supplier--India.
*Central government budget (FY 2006/2007): $1.9 billion; military allocation $139 million.
*Official exchange rate (as of July 16, 2006): 74.10 Nepalese rupees=U.S. $1.00.
*Fiscal year: July 16-July 15.

==History==
====Early History====
[[File:Nepal temple.JPG|left|Temple.]]
Modern Nepal was created in the latter half of the 18th century when Prithvi Narayan Shah, the ruler of the small principality of Gorkha, formed a unified country from a number of independent hill states. The country was frequently called the Gorkha Kingdom, the source of the term "Gurkha" used for Nepali soldiers.

After 1800, the heirs of Prithvi Narayan Shah proved unable to maintain firm political control over Nepal. A period of internal turmoil followed, heightened by Nepal's defeat by the British in a war from 1814 to 1816. Stability was restored after 1846 when the Rana family gained power, entrenched itself through hereditary prime ministers, and reduced the monarch to a figurehead. The Rana regime, a highly centralized autocracy, pursued a policy of isolating Nepal from external influences. This policy helped Nepal maintain its national independence during the colonial era, but also impeded the country's economic development.

In 1950, King Tribhuvan, a direct descendant of Prithvi Narayan Shah, fled his "palace prison" to newly independent India, touching off an armed revolt against the Rana administration. This allowed the return of the Shah family to power and, eventually, the appointment of a non-Rana prime minister. A period of quasi-constitutional rule followed, during which the monarch, assisted by the leaders of fledgling political parties, governed the country. During the 1950s, efforts were made to frame a constitution for Nepal that would establish a representative form of government, based on the British model.
{{Clear}}

====Democracy Develops====
In early 1959, King Mahendra, who had succeeded his father Tribhuvan in 1955, issued a new constitution and the first democratic elections for a national assembly were held. The Nepali Congress Party, a moderate socialist group, gained a substantial victory in the election. Its leader, B.P. Koirala, formed a government and served as Prime Minister.

Declaring parliamentary democracy a failure eighteen months later, King Mahendra dismissed the Koirala government and promulgated a new constitution on December 16, 1962. The new constitution established a "partyless" system of panchayats (councils), which King Mahendra claimed was a democratic form of government closer to Nepalese traditions. As a hierarchical structure progressing from village assemblies to a Rastriya Panchayat (National Parliament), the Panchayat system enshrined the absolute power of the monarchy and kept the King as head of state with sole authority over all governmental institutions, including the Cabinet (Council of Ministers) and the Parliament.

King Mahendra was succeeded by his 27-year-old son, King Birendra, in 1972. Amid student demonstrations and anti-regime activities in 1979, King Birendra called for a national referendum to decide the nature of Nepal's government--either the continuation of the Panchayat system with democratic reforms or the establishment of a multiparty system. The referendum was held in May 1980, and the Panchayat system won a narrow victory. The King carried out the promised reforms, including selection of the prime minister by the Rastriya Panchayat.

====Movement to Restore Democracy====
In 1990, the political parties again pressed the King and the government for change. Leftist parties united under a common banner of the United Left Front and joined forces with the Nepali Congress Party to launch strikes and demonstrations in the major cities of Nepal. This "Movement to Restore Democracy" was initially dealt with severely, with more than 50 persons killed by police gunfire and hundreds arrested. In April, the King capitulated. Consequently, he dissolved the Panchayat system, lifted the ban on political parties, and released all political prisoners.

An interim government was sworn in on April 19, 1990, headed by Krishna Prasad Bhattarai as Prime Minister presiding over a cabinet made up of members of the Nepali Congress Party, the communist parties of Nepal, royal appointees, and independents. The new government drafted and promulgated a new constitution in November 1990, which enshrined fundamental human rights and established Nepal as a parliamentary democracy under a constitutional monarch. International observers characterized the May 1991 elections as free and fair, in which the Nepali Congress Party won 110 out of 205 seats to form the government.

In mid-1994, the Parliament was dissolved due to dissension within the Nepali Congress Party. The subsequent general election held November 15, 1994, gave no party a majority. The 1994 elections resulted in a Nepali Congress Party defeat and a hung Parliament, with a minority government led by the Communist Party of Nepal-United Marxist Leninist Party (CPN-UML); this made Nepal the world's first communist monarchy, with Man Mohan Adhikary as Prime Minister. The next five years saw five successive unstable coalition governments and the beginning of a Maoist insurgency.

Following the May 1999 general elections, the Nepali Congress Party once again headed a majority government after winning 113 out of 205 seats. But the pattern of short-lived governments persisted. There were three Nepali Congress Party Prime Ministers after the 1999 elections: K.P. Bhattarai (5/31/99-3/17/00); G. P. Koirala (3/20/00-7/19/01); and Sher Bahadur Deuba (7/23/01-10/04/02).

On June 1, 2001, Crown Prince Dipendra reportedly shot and killed his father King Birendra, his mother Queen Aishwarya, his brother, his sister, his father's younger brother Prince Dhirendra, and several aunts before turning the gun on himself. After his death two days later, the late King's surviving brother Gyanendra was proclaimed King.

====Maoist Insurgency====
In February 1996, the leaders of the Maoist United People's Front began a violent insurgency, waged through killings, torture, bombings, kidnappings, extortion, and intimidation against civilians, police, and public officials in more than 50 of the country's 75 districts. Over 13,000 police, civilians, and insurgents were killed in the conflict. The government and Maoists held peace talks in August, September, and November of 2001, but they were unsuccessful, and the Maoists resumed their violent insurgency. Shortly after the 2001 peace talks failed, King Gyanendra declared a state of emergency, which the Parliament approved by a two-thirds vote. On the recommendation of Prime Minister Sher Bahadur Deuba, the King dissolved the House on May 22, 2002.

====Struggle for Democracy Continues====
In a sudden turn of events on October 4, 2002, King Gyanendra removed Prime Minister Deuba and assumed executive power. The entire Council of Ministers was also dissolved, and the November 13, 2002 elections to the dissolved House of Representatives were called off. After a week-long consultation with the leaders of various political parties, on October 11, 2002, the King appointed Lokendra Bahadur Chand as Prime Minister with a five-point directive that included creating an environment of peace and security as well as holding elections to the local bodies and the House of Representatives.

Under Chand's premiership, the government and Maoists declared a cease-fire on January 29, 2003. This marked the second cease-fire with the Maoists; the first, in 2001, had been broken by the Maoists. The 2003 cease-fire included an agreement to undertake initiatives to resolve the Maoist problem through dialogue and bring the Communist Party of Nepal (Maoist) back into mainstream politics. After the announcement of the 2003 cease-fire, the Chand government held two rounds of peace talks with the Maoists, in April and May. But in its effort to end political instability, it failed to secure the support of the leading political parties. In the face of growing pressure from political parties and their mass movement, Chand resigned from his post on May 30, 2003, after only seven months in power.

The King appointed Surya Bahadur Thapa as the new Prime Minister on June 4, 2003, amidst opposition from the major political parties. Another round of peace talks was held in mid-August 2003, but on August 27, 2003 the Maoists broke the second cease-fire. Thapa resigned in May 2004 as a result of political pressure. In June 2004, the King reinstated formerly dismissed Sher Bahadur Deuba as Prime Minister.

====King's Direct Rule====
Citing a steady deterioration of conditions in the country, King Gyanendra dismissed the Cabinet and constituted a Council of Ministers under his own chairmanship on February 1, 2005. He stated that the Council of Ministers (i.e., Cabinet) would try to reactivate multi-party democracy within three years. The King subsequently declared a state of emergency and suspended almost all fundamental rights for nearly three months. His new government was sworn in on February 2, 2005. The Council of Ministers under the King's chairmanship was reshuffled twice during the King's 15 months of direct rule.

====People's Movement====
In April 2006, the major political parties, in cooperation with the Maoists, organized massive countrywide demonstrations for the restoration of democracy, forcing the King to relinquish power. On April 24, 2006, King Gyanendra reinstated the 1999 Parliament. Former Prime Minister Girija Prasad Koirala of the Nepali Congress Party was selected by the Seven-Party Alliance (SPA) of political parties to again lead the government. The Maoists declared a unilateral cease-fire on April 26, and the new Koirala government announced its own unilateral cease-fire and plans for peace talks with the Maoist insurgents on May 3, 2006. The SPA and the Maoists have since signed a number of agreements, including, in November 2006, a comprehensive peace agreement to end the decade-long insurgency. Both sides also agreed to an arms management process and elections for a Constituent Assembly. On January 15, 2007 a 329-member interim Parliament, including 83 Maoist representatives and other party representatives, was constituted. The first sitting of the Parliament unanimously endorsed an interim constitution, which replaced the constitution of 1990. On April 1, 2007, the ruling eight-party government formed an interim Council of Ministers through political consensus, including five Maoist ministers.

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|style=" background-color: none;"| Some content for this article is in the [[Public Domain]] in the United States because it is a work of the United States Federal Government under the terms of Title 17, Chapter 1, Section 105 of the U.S. Code
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{{Asian Countries}}
[[Category:Landlocked Countries]]
[[Category:Hinduism]]
[[Category:Buddhism]]

Nepal

2015-01-14T04:13:45Z

GoraGurung:

{{Country
|name =नेपाल ''Nepal''
|map =Nepal rel 90.JPG
|map2 =Nepal location.png
|flag =Flag of Nepal.png
|arms =Arms of Nepal.png
|capital =Kathmandu
|capital-raw =
|government =Federal republic
|government-raw =
|language =Nepali
|king =
|queen =
|monarch-raw =
|president =Ram Baran Yadav
|president-raw =
|chancellor =
|chancellor-raw =
|pm =Baburam Bhattarai
|pm-raw =
|area =56,136 sq. miles
|pop =29,519,114 est.
|pop-basis =2008
|gdp =$7.7 billion
|gdp-year =2007
|gdp-pc =$322
|currency =Nepalese rupee
|idd =
|tld =
}}
'''Nepal''' is a landlocked Himalayan country in South [[Asia]]. It is bordered by [[Tibet]] and [[China]] to the north and by [[India]] to the south, east and west. Nepal is home to eight of the world's top ten highest mountains, including [[Mount Everest]]. Kathmandu is the capital and largest city.

==Geography==
*Area: 147,181 sq. km. (56,136 sq. mi.), about the size and shape of Tennessee, bordering China and India.
*Cities: Capital--Kathmandu (3 districts) (pop. 2.2 million est.). Other cities--Biratnagar, Patan, Pokhara, Birgunj, Dharan, Nepalgunj.
*Terrain: Flat and fertile in the southern Terai region; terraced cultivation and swiftly flowing mountain rivers in the central hills; and the high Himalayas in the north. Eight of the world's ten highest peaks are in Nepal, including Mount Everest. Kathmandu, the capital, is in a broad valley at 1,310 meters (4,300 ft.) elevation.
*Climate: Subtropical in the south to cool summers and severe winters in the northern mountains. The monsoon season is from June through September, during which showers occur almost every day, bringing 75 to 150 centimeters (30-60 in.) of rain.
*Time zone: Nepal is 10 hours and 45 minutes ahead of Eastern Standard Time and does not observe daylight saving time.

==People==
[[File:Nepal ethnic groups map.jpg|thumb|left|320px|Ethnic groups.]]
Perched on the southern slopes of the Himalayan Mountains, 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 central Asia.

Among the earliest inhabitants were the Newars of the Kathmandu Valley and aboriginal Tharus in the southern Terai region. The ancestors of the Brahman and Chetri caste groups came from India, while other ethnic groups trace their origins to central Asia and Tibet, including the Gurungs and Magars in the west, Rais and Limbus in the east, and Sherpas and Bhotias in the north.

The Terai, a part of the Ganges Basin with 20% of Nepal's land, is the country's breadbasket. Much of the population is physically and culturally similar to the Indo-Aryan people of northern India. People of Indo-Aryan and Mongoloid origin live in the hill regions. The mountainous highlands are sparsely populated. The Kathmandu Valley, in the middle hill region, constitutes a small fraction of the nation's area but is the most densely populated, with over 7% of the population.
[[File:Monk Nepal Venerable Aggacitta.jpg|thumb|left|Monk Venerable Aggacitta.]]
Religion is important in Nepal; the Kathmandu Valley alone has more than 2,700 religious shrines. According to the 2001 census, Nepal is about 81% Hindu. Buddhists account for about 11% of the population. The interim constitution promulgated on January 15, 2007 declared the country a "secular state." Buddhist and Hindu shrines and festivals are respected and celebrated by many. The government celebrates most Hindu and some Buddhist holidays. Nepal also has small Muslim and Christian minorities. Certain animistic practices of old indigenous religions also survive.

Nepali is the official language, although a dozen different languages and about 30 major dialects are spoken throughout the country. Derived from Sanskrit, Nepali is related to the Indian language, Hindi, and is spoken by about 90% of the population. Many Nepalese in government and business also speak Hindi and English.
*Population (2007 estimate): 29 million.
*Annual growth rate (2007 estimate): 2.132%.
*Population breakdown/distribution: Rural (86%); female (50%); in the southern Terai region (49%); in the hills (44%); in the mountains (7%).
*Ethnic groups (caste and ethnicity are often used interchangeably): Pahari, Brahman, Chetri, Newar, Gurung, Magar, Tamang, Rai, Limbu, Sherpa, Tharu, and others.
*Religions: Hinduism (81%), Buddhism (11%), Islam (4%), and others (4%).
*Languages: Nepali and more than 12 others.
*Education: Years compulsory--0. Attendance--primary 80.4%, secondary 20%. Literacy--49% (63% male, 35% female).
*Health: Infant mortality rate (2007 estimate)--63.7 deaths/1,000 live births. Life expectancy (2007 estimate)--61.9 years for males and 65.5 years for females.
*Work force: Agriculture--71%; industry--3%; services--11%; other--1%.

==Government==
A Maoist insurgency--punctuated by cease-fires in 2001, 2003, 2005, and the latest one from April 26, 2006--has been ongoing since 1996. After King Gyanendra announced the reinstatement of Parliament on April 24, 2006, the Maoists declared a three-month unilateral ceasefire on April 26, 2006 which the new Koirala government reciprocated on May 3, 2006. Since then the Seven-Party Alliance (SPA) and the Maoists have signed five agreements, culminating in the comprehensive peace agreement of November 21, 2006, effectively ending the insurgency. However, Maoist violence and intimidation have continued since the agreement.

The main agenda of the SPA and the Maoists is to hold a Constituent Assembly (CA) election. The Constituent Assembly would draft and promulgate a new constitution defining the future political system in Nepal. The interim constitution, adopted on January 15, 2007, expressed full commitment to democratic ideals and norms, including competitive multi-party democracy, civil liberties, fundamental human rights, adult enfranchisement, periodic elections, press freedom, an independent judiciary, and the rule of law. The interim constitution also guaranteed the basic rights of Nepali citizens to formulate a constitution for themselves and to participate in the Constituent Assembly in an environment free from fear. The interim constitution transferred all powers of the King as head of state to the prime minister and stripped the King of any ceremonial constitutional role. Under the interim constitution, the fate of the monarchy will be decided by the first meeting of the Constituent Assembly. The interim Parliament is a unicameral house.
[[File:Nepal 2012.jpg|300px|right]]
After promulgation of the interim constitution, many socially marginalized ethnic communities, including the Madhesis of the lowland Terai, began widespread protests against the proposed proportional representation system incorporated in the new constitution. After a Maoist shot and killed one of the demonstrators, violent protests erupted with clashes between police and demonstrators and attacks on government facilities in at least 10 districts, resulting in the death of over 30 people. Prime Minister Koirala, in an address to the nation on February 7, 2007 promised to amend the constitution to meet the demands of the Terai people. However, the situation remains tense, with continuing protests and violence.

Nepal's judiciary is legally separated from the executive and legislative branches and, in practice, has increasingly shown the will to be independent of political influence. However, by asserting executive control over the judiciary, the interim constitution called into question this independence. Under the interim constitution, the Prime Minister appoints the Chief Justice on the recommendation of the Constitutional Council, and the Chief Justice appoints other judges on the recommendation of the Judicial Council. All lower court decisions, including acquittals, are subject to appeal. The Supreme Court is the court of last appeal.

===Principal Government Officials===
====Cabinet Ministers====
*Prime Minister, Defense--Girija Prasad Koirala
*Peace and Reconstruction--Ram Chandra Paudel
*Foreign Affairs--Sahana Pradhan
*Information and Communications--Krishna Bahadur Mahara
*Education and Sports--Pradip Nepal
*Environment, Science and Technology--Mahantha Thakur
*Finance--Dr. Ram Sharan Mahat
*Law, Justice and Parliamentary Affairs--Narendra Bikram Nembang
*Home Affairs--Krishna Prasad Sitaula
*Local Development--Dev Prasad Gurung
*Industry, Commerce and Supplies--Rajendra Mahato
*Culture, Tourism and Civil Aviation--Prithvi Subba Gurung
*Forest and Soil-Conservation--Matrika Prasad Yadav
*Agriculture and Cooperatives--Chhabilal Biswokarma
*Physical Planning and Works--Hisila Yami
*Land-Reforms and Management--Jagat Bahadur Bogati
*Women, Children and Social Welfare--Khadga Bahadur Biswokarma
*Health and Population--Giriraj Mani Pokharel

====State Ministers====
*Labour and Transport Management--Ramesh Lekhak
*Water Resources--Gyanendra Bahadur Karki
*General Administration--Ram Chandra Yadav
*Law, Justice and Parliamentary Affairs--Indra Bahadur Gurung
*Education--Mohan Singh Rathour

===Foreign Relations===
[[File:Nepal map.jpg|left|340px]]
As a small, landlocked country wedged between two much larger and far stronger powers, Nepal seeks good relations with both India and China. Nepal formally established relations with China in 1956 and, since then, their bilateral relations have generally been good. Because of strong cultural, religious, linguistic, and economic ties, Nepal's association with India traditionally has been close. India and Nepal restored trade relations in 1990 after a break caused by India's security concerns over Nepal's relations with China. A bilateral trade treaty signed with India in 1991 is renewed every five years. The most recent renewal was on March 6, 2007, which expires on March 5, 2012. A transit treaty with India, which allows Nepal to trade with other countries through the Calcutta/Haldia ports, was extended on March 30, 2006 for seven years.

Nepal played an active role in the formation of the economic development-oriented South Asian Association for Regional Cooperation (SAARC) and is the site of its secretariat. Nepal is also a signatory of the agreement on South Asian Free Trade Area (SAFTA), which came into force on January 1, 2006. A SAFTA tariff liberalization program (TLP) was scheduled to be implemented July 1, 2006. All member countries, except for Nepal, whose TLP started on August 1, 2006, reduced tariffs for each other. However, on July 1, 2006, Pakistan officially toughened its stance of not trading with India under the SAFTA arrangements and did not announce TLP for India. Due to the stalemate between India and Pakistan, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation Free Trade Agreement (BIMSTEC-FTA), which was initially scheduled to come into force on July 1, 2006, was deferred indefinitely. The BIMSTEC Summit scheduled for February 8, 2007, in India was also deferred due to political instability in member states, including Nepal. On international issues, Nepal follows a non-aligned policy and often votes with the Non-Aligned Movement in the United Nations. Nepal participates in a number of UN specialized agencies and is a member of the World Trade Organization, World Bank, International Monetary Fund, Colombo Plan, and Asian Development Bank.

===Human Rights===
Since political reform began in 1990, some progress has been achieved in the transition to a more open society with greater respect for human rights; however, substantial problems remain. Poorly trained police sometimes use excessive force in quelling violent demonstrations. In addition, there have been reports of torture during detention and widespread reports of custodial abuse. In 2000, the government established the National Human Rights Commission, a government-appointed commission with a mandate to investigate human rights violations. The government is sometimes slow to follow the commission's recommendations or to enforce accountability for recent and past abuses. The King's February 2005 dismissal of the government, subsequent imposition of emergency rule and suspension of many civil rights--including freedom of expression, assembly, and privacy--was a setback for human rights in Nepal. During this three-month period, censors were deployed to major newspapers, and many political leaders were kept under house arrest. The King's government restricted the media from publishing interviews, articles, or news items against the spirit of the royal proclamation of February 1, 2005 or in support of terrorist or destructive activities. The reinstated government, led by Prime Minister Koirala, reversed these decisions in May 2006. The interim constitution promulgated on January 15, 2007 ensured unrestricted freedom of expression.

Both the Maoists and security personnel have committed numerous human rights violations. The Maoists have used tactics such as kidnapping, torture, bombings, intimidation, killings, and conscription of children. Within the Nepalese security forces, violations ranged from disappearances to executions. After the royal takeover on February 1, 2005 and subsequent imposition of the state of emergency, the security forces arrested many political leaders, student leaders, journalists, and human rights activists under the Public Security Act of 1989, although all were released by June 2005 when the King ended the state of emergency.

After the April 2006 cease-fire announced by the government and the Maoists, incidents of human rights violations by the government declined substantially while incidents of human rights violations by the Maoists remained relatively unabated. Even after signing a comprehensive peace agreement with the government in November 2006, Maoists' extortion, abduction, and intimidation largely remained uncontrolled. Although activities by other political parties have increased significantly in the rural parts of Nepal, political party representatives, police, non-governmental organization (NGO) workers, and journalists reported continuous threats and intimidation by Maoist cadres. During the January-February 2007 uprising in the Terai, reports of government security forces using excessive force to quell demonstrations were common.

There are three major daily English-language newspapers, "The Kathmandu Post," "The Himalayan Times" and "The Rising Nepal." The last and its vernacular sister publication are owned by a government corporation. There are hundreds of smaller daily and weekly periodicals that are privately owned and of varying journalistic quality. Views expressed since the 1990 move to democracy are varied and vigorous. Currently, 75 radio and four television stations are privately owned and operated, following liberalization of licensing regulations. Radio Nepal and Nepal Television are government-owned and operated. There are nearly 200 cable television operators nationwide, and satellite dishes to receive television broadcasts abound.

Trafficking in women and child labor remain serious problems. Discrimination against women and lower castes is prevalent.

==Defense==
Nepal's military consists of the nearly 95,000-strong Nepalese Army (NA), which is organized into six divisions (Far-Western, Mid-Western, Western, Central, Eastern, and Valley Divisions) with separate Aviation, Parachute, and Security Brigades as well as brigade-sized directorates encompassing air defense, artillery, engineers, logistics, and signals which provide general support to the NA. The Prime Minister is the Supreme Commander of the NA. The Prime Minister is currently Minister of Defense. General Rookmangud Katawal is Chief of the Army Staff (COAS), also the senior commissioned officer of the NA.

Since 1958, the NA has contributed over 50,000 peacekeepers to 28 peacekeeping missions such as the UN Interim Force in Lebanon (UNIFIL), the UN Protection Force (UNPROFOR) in the former Yugoslavia, the UN Operational Mission in Somalia II (UNOSOMII), the UN Mission in Haiti (UNMIH), and the UN Mission of Support in East Timor (UNTAET). NA units are presently serving in the UN Mission in Sierra Leone (UNAMSIL), the UN Mission in the Democratic Republic of the Congo (MONUC), and the UN Mission in Haiti (MINUSTOH), among others. Approximately 3,400 of the world-famous Nepalese Gurkha forces serve in the British Army, and 40,000 serve in the Indian Army.

==Economy==

Nepal ranks among the world's poorest countries, with a per capita income of around $322. Based on national calorie/GNP criteria, an estimated 31% of the population is below the poverty line. An isolated, agrarian society until the mid-20th century, Nepal entered the modern era in 1951 without schools, hospitals, roads, telecommunications, electric power, industry, or a civil service. The country has, however, made progress toward sustainable economic growth since the 1950s and is committed to a program of economic liberalization.
[[File:Nepal cow.jpg|right]]
Nepal launched its tenth five-year economic development plan in 2002; its currency has been made convertible; and fourteen state enterprises have been privatized, seven liquidated and two dissolved. Foreign aid accounts for more than half the development budget. The Government of Nepal has shown an increasing commitment to fiscal transparency, good governance, and accountability. Also in 2002, the government began to prioritize development projects and eliminate wasteful spending. In consultation with civil society and donors, the government cut 160 development projects that were driven by political patronage.

Agriculture remains Nepal's principal economic activity, employing over 71% of the population and providing 38% of GDP. Only about 25% of the total area is cultivable; another 33% is forested; most of the rest is mountainous. Rice and wheat are the main food crops. The lowland Terai region produces an agricultural surplus, part of which supplies the food-deficient hill areas. Because of Nepal's dependence on agriculture, the annual monsoon rain, or lack of it, strongly influences economic growth.

Nepal's exports increased 2.8% in FY 2005/2006 compared to an increase of 8.3% in FY 2004/2005. Imports grew by 9.8% in FY 2005/2006 compared with 9.2% in FY 2004/2005. Exports were constrained by a prolonged phase of general strikes, industrial closures, and political turmoil during the second half of FY 2005/2006 and also by a significant drop in Nepal's main export, ready-made textile products. The trade deficit for FY 2004/2005 was $1.2 billion, which widened to $1.4 billion in FY 2005/2006. Real GDP growth during 1996-2002 averaged less than 5%. Real growth experienced a one-time jump in 1999, rising to 6%, before slipping back below 5%. In 2002, GDP recorded a negative growth rate of 0.33%, largely because of the Maoist insurgency. GDP grew 3.1% in FY 2002/2003 and 3.6% in FY 2003/2004, and again slipped to 2.4% in 2004/2005 and to 2.4% in FY 2005/2006, according to the Central Bureau of Statistics.

Despite its growing trade deficit, Nepal traditionally has a balance of payments (BOP) surplus due to remittances from Nepalese working abroad. In FY 2005/2006, Nepal recorded a balance of payments surplus of $355 million, as compared to $79 million in FY 2004/2005. The lower BOP surplus in FY 2004/2005 was mainly attributed to the lower inflow of net government loans, and the higher surplus in FY 2005/2006 was due to resumption of foreign loans and assistance after the April 2006 People's Movement. Both the current account and the capital account registered significant growth in FY 2005/2006. Nepal receives substantial amounts of external assistance from India, the United Kingdom, the United States, Japan, Germany, and the Scandinavian countries. Several multilateral organizations--including the World Bank, the Asian Development Bank, and the UN Development Program--also provide assistance. Such assistance decreased substantially in FY 2004/2005 after the royal takeover of February 1, 2005 and also because of the Maoist conflict, which undermined development activities throughout most of Nepal. On April 23, 2004, Nepal became the 147th member of the World Trade Organization (WTO).

With eight of the world's ten highest mountain peaks--including Mt. Everest at 8,848 m (29,000 ft)--Nepal is a tourist destination for hikers and mountain climbers. However, the decade-long insurgency and a global economic slowdown threatened the tourism industry. Figures from the Department of Immigration showed a 4% increase in arrivals in 2006, but these remained well below numbers during 1999, the peak tourism year. Recent tourist arrivals have given relief to the tourism-based hotel, trekking, mountaineering, and aviation industries. Since the political parties and Maoists brokered a comprehensive peace agreement in November 2006, the tourism industry hoped that guest arrivals in Nepal would bounce quickly back to 1999 levels and higher.

Swift rivers flowing south through the Himalayas have massive hydroelectric potential to service domestic power needs and growing demand from India. Only about 1% of Nepal's hydroelectric potential is currently tapped. Several hydroelectric projects, at Kulekhani and Marsyangdi, were completed in the early to late 1980s. In the early 1990s, one large public-sector project, the Kali Gandaki A (144 megawatts--MW), and a number of private projects were planned; some have been completed. Kali Gandaki A started commercial operation in August 2002. The most significant privately financed hydroelectric projects currently in operation are the Khimti Khola (60 MW) and Bhote Koshi (36 MW) projects.

The environmental impact of Nepal's hydroelectric projects has been limited by the fact that most are "run-of-river," with only one storage project undertaken to date. The planned private-sector West Seti (750 MW) storage project is dedicated to electricity exports. An Australian company signed a power purchase agreement with the Indian Power Trading Corporation in September 2002 and has the lead on the project. Negotiations with India for a power purchase agreement have been underway for several years, but agreement on pricing and capital financing remains a problem. The Government of Nepal has taken up the issue of project financing for the West Seti project with the EXIM Bank of China. The Department of Electricity Development recently obtained proposals from 14 foreign companies for survey licenses of three projects--600 MW Budhi Gandaki, 402 MW Arun III, and 300 MW Upper Karnali. The Ministry of Water Resources is currently evaluating the proposals and has not awarded the survey licenses. Currently, domestic demand for electricity is increasing at 8%-10% a year.

Population pressure on natural resources is increasing. Overpopulation is already straining the "carrying capacity" of the middle hill areas, particularly the Kathmandu Valley, resulting in the depletion of forest cover for crops, fuel and fodder, and contributing to erosion and flooding. Additionally, water supplies within the Kathmandu Valley are not considered safe for consumption, and disease outbreaks are not uncommon. Although steep mountain terrain makes exploitation difficult, mineral surveys have found small deposits of limestone, magnesite, zinc, copper, iron, mica, lead, and cobalt.

Progress has been achieved in education, health, and infrastructure. A countrywide primary education system is under development, and Tribhuvan University has several campuses. Although eradication efforts continue, malaria has been controlled in the fertile but previously uninhabitable Terai region in the south. Kathmandu is linked to India and nearby hill regions by an expanding highway network.
*GDP (2005/2006): $7.7 billion.
*Annual growth rate of real GDP (FY 2005/2006): 2.38%.
*Per capita income (gross national product, FY 2005/2006): $322.
*Avg. inflation rate (Consumer Price Index, November 2006 est.): 8.6%.
*Natural resources: Water, hydropower, scenic beauty, limited but fertile agricultural land, timber.
*Agriculture (38% of GDP): Products--rice, wheat, maize, sugarcane, oilseed, jute, millet, potatoes. Cultivated land--25%.
*Industry (10% of GDP): Types--carpets, pashmina, garments, cement, cigarettes, bricks, sugar, soap, matches, jute, hydroelectric power.
*Trade (2005/2006): Exports--$834 million: carpets, pashmina, garments. Major markets--Germany and the U.S. Imports--$2.2 billion: manufactured goods. Major supplier--India.
*Central government budget (FY 2006/2007): $1.9 billion; military allocation $139 million.
*Official exchange rate (as of July 16, 2006): 74.10 Nepalese rupees=U.S. $1.00.
*Fiscal year: July 16-July 15.

==History==
====Early History====
[[File:Nepal temple.JPG|left|Temple.]]
Modern Nepal was created in the latter half of the 18th century when Prithvi Narayan Shah, the ruler of the small principality of Gorkha, formed a unified country from a number of independent hill states. The country was frequently called the Gorkha Kingdom, the source of the term "Gurkha" used for Nepali soldiers.

After 1800, the heirs of Prithvi Narayan Shah proved unable to maintain firm political control over Nepal. A period of internal turmoil followed, heightened by Nepal's defeat by the British in a war from 1814 to 1816. Stability was restored after 1846 when the Rana family gained power, entrenched itself through hereditary prime ministers, and reduced the monarch to a figurehead. The Rana regime, a highly centralized autocracy, pursued a policy of isolating Nepal from external influences. This policy helped Nepal maintain its national independence during the colonial era, but also impeded the country's economic development.

In 1950, King Tribhuvan, a direct descendant of Prithvi Narayan Shah, fled his "palace prison" to newly independent India, touching off an armed revolt against the Rana administration. This allowed the return of the Shah family to power and, eventually, the appointment of a non-Rana prime minister. A period of quasi-constitutional rule followed, during which the monarch, assisted by the leaders of fledgling political parties, governed the country. During the 1950s, efforts were made to frame a constitution for Nepal that would establish a representative form of government, based on the British model.
{{Clear}}

====Democracy Develops====
In early 1959, King Mahendra, who had succeeded his father Tribhuvan in 1955, issued a new constitution and the first democratic elections for a national assembly were held. The Nepali Congress Party, a moderate socialist group, gained a substantial victory in the election. Its leader, B.P. Koirala, formed a government and served as Prime Minister.

Declaring parliamentary democracy a failure eighteen months later, King Mahendra dismissed the Koirala government and promulgated a new constitution on December 16, 1962. The new constitution established a "partyless" system of panchayats (councils), which King Mahendra claimed was a democratic form of government closer to Nepalese traditions. As a hierarchical structure progressing from village assemblies to a Rastriya Panchayat (National Parliament), the Panchayat system enshrined the absolute power of the monarchy and kept the King as head of state with sole authority over all governmental institutions, including the Cabinet (Council of Ministers) and the Parliament.

King Mahendra was succeeded by his 27-year-old son, King Birendra, in 1972. Amid student demonstrations and anti-regime activities in 1979, King Birendra called for a national referendum to decide the nature of Nepal's government--either the continuation of the Panchayat system with democratic reforms or the establishment of a multiparty system. The referendum was held in May 1980, and the Panchayat system won a narrow victory. The King carried out the promised reforms, including selection of the prime minister by the Rastriya Panchayat.

====Movement to Restore Democracy====
In 1990, the political parties again pressed the King and the government for change. Leftist parties united under a common banner of the United Left Front and joined forces with the Nepali Congress Party to launch strikes and demonstrations in the major cities of Nepal. This "Movement to Restore Democracy" was initially dealt with severely, with more than 50 persons killed by police gunfire and hundreds arrested. In April, the King capitulated. Consequently, he dissolved the Panchayat system, lifted the ban on political parties, and released all political prisoners.

An interim government was sworn in on April 19, 1990, headed by Krishna Prasad Bhattarai as Prime Minister presiding over a cabinet made up of members of the Nepali Congress Party, the communist parties of Nepal, royal appointees, and independents. The new government drafted and promulgated a new constitution in November 1990, which enshrined fundamental human rights and established Nepal as a parliamentary democracy under a constitutional monarch. International observers characterized the May 1991 elections as free and fair, in which the Nepali Congress Party won 110 out of 205 seats to form the government.

In mid-1994, the Parliament was dissolved due to dissension within the Nepali Congress Party. The subsequent general election held November 15, 1994, gave no party a majority. The 1994 elections resulted in a Nepali Congress Party defeat and a hung Parliament, with a minority government led by the Communist Party of Nepal-United Marxist Leninist Party (CPN-UML); this made Nepal the world's first communist monarchy, with Man Mohan Adhikary as Prime Minister. The next five years saw five successive unstable coalition governments and the beginning of a Maoist insurgency.

Following the May 1999 general elections, the Nepali Congress Party once again headed a majority government after winning 113 out of 205 seats. But the pattern of short-lived governments persisted. There were three Nepali Congress Party Prime Ministers after the 1999 elections: K.P. Bhattarai (5/31/99-3/17/00); G. P. Koirala (3/20/00-7/19/01); and Sher Bahadur Deuba (7/23/01-10/04/02).

On June 1, 2001, Crown Prince Dipendra reportedly shot and killed his father King Birendra, his mother Queen Aishwarya, his brother, his sister, his father's younger brother Prince Dhirendra, and several aunts before turning the gun on himself. After his death two days later, the late King's surviving brother Gyanendra was proclaimed King.

====Maoist Insurgency====
In February 1996, the leaders of the Maoist United People's Front began a violent insurgency, waged through killings, torture, bombings, kidnappings, extortion, and intimidation against civilians, police, and public officials in more than 50 of the country's 75 districts. Over 13,000 police, civilians, and insurgents were killed in the conflict. The government and Maoists held peace talks in August, September, and November of 2001, but they were unsuccessful, and the Maoists resumed their violent insurgency. Shortly after the 2001 peace talks failed, King Gyanendra declared a state of emergency, which the Parliament approved by a two-thirds vote. On the recommendation of Prime Minister Sher Bahadur Deuba, the King dissolved the House on May 22, 2002.

====Struggle for Democracy Continues====
In a sudden turn of events on October 4, 2002, King Gyanendra removed Prime Minister Deuba and assumed executive power. The entire Council of Ministers was also dissolved, and the November 13, 2002 elections to the dissolved House of Representatives were called off. After a week-long consultation with the leaders of various political parties, on October 11, 2002, the King appointed Lokendra Bahadur Chand as Prime Minister with a five-point directive that included creating an environment of peace and security as well as holding elections to the local bodies and the House of Representatives.

Under Chand's premiership, the government and Maoists declared a cease-fire on January 29, 2003. This marked the second cease-fire with the Maoists; the first, in 2001, had been broken by the Maoists. The 2003 cease-fire included an agreement to undertake initiatives to resolve the Maoist problem through dialogue and bring the Communist Party of Nepal (Maoist) back into mainstream politics. After the announcement of the 2003 cease-fire, the Chand government held two rounds of peace talks with the Maoists, in April and May. But in its effort to end political instability, it failed to secure the support of the leading political parties. In the face of growing pressure from political parties and their mass movement, Chand resigned from his post on May 30, 2003, after only seven months in power.

The King appointed Surya Bahadur Thapa as the new Prime Minister on June 4, 2003, amidst opposition from the major political parties. Another round of peace talks was held in mid-August 2003, but on August 27, 2003 the Maoists broke the second cease-fire. Thapa resigned in May 2004 as a result of political pressure. In June 2004, the King reinstated formerly dismissed Sher Bahadur Deuba as Prime Minister.

====King's Direct Rule====
Citing a steady deterioration of conditions in the country, King Gyanendra dismissed the Cabinet and constituted a Council of Ministers under his own chairmanship on February 1, 2005. He stated that the Council of Ministers (i.e., Cabinet) would try to reactivate multi-party democracy within three years. The King subsequently declared a state of emergency and suspended almost all fundamental rights for nearly three months. His new government was sworn in on February 2, 2005. The Council of Ministers under the King's chairmanship was reshuffled twice during the King's 15 months of direct rule.

====People's Movement====
In April 2006, the major political parties, in cooperation with the Maoists, organized massive countrywide demonstrations for the restoration of democracy, forcing the King to relinquish power. On April 24, 2006, King Gyanendra reinstated the 1999 Parliament. Former Prime Minister Girija Prasad Koirala of the Nepali Congress Party was selected by the Seven-Party Alliance (SPA) of political parties to again lead the government. The Maoists declared a unilateral cease-fire on April 26, and the new Koirala government announced its own unilateral cease-fire and plans for peace talks with the Maoist insurgents on May 3, 2006. The SPA and the Maoists have since signed a number of agreements, including, in November 2006, a comprehensive peace agreement to end the decade-long insurgency. Both sides also agreed to an arms management process and elections for a Constituent Assembly. On January 15, 2007 a 329-member interim Parliament, including 83 Maoist representatives and other party representatives, was constituted. The first sitting of the Parliament unanimously endorsed an interim constitution, which replaced the constitution of 1990. On April 1, 2007, the ruling eight-party government formed an interim Council of Ministers through political consensus, including five Maoist ministers.

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{{Asian Countries}}
[[Category:Landlocked Countries]]
[[Category:Hinduism]]
[[Category:Buddhism]]