Nepal

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note:  Only official Hindu state in the world

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14 zones: Bagmati, Bheri, Dhawalagiri, Gandaki, Janakpur, Karnali, Kosi, Lumbini, Mahakali, Mechi, Narayani, Rapti, Sagarmatha, Seti

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Chief of state:  King GYANENDRA Bir Bikram Shah

Head of government:  Prime Minister Lokendra Bahadur Chand

Cabinet:  Cabinet appointed by the monarch on the recommendation of the prime minister

Elections:  none; the monarch is hereditary; following legislative elections, the leader of the majority party or leader of a majority coalition is usually appointed prime minister by the monarch

Legislative branch:

Bicameral Parliament consists of the National Council (60 seats; 35 appointed by the House of Representatives, 10 by the king, and 15 elected by an electoral college; one-third of the members elected every two years to serve six-year terms) and the House of Representatives (205 seats; members elected by popular vote to serve five-year terms)

Elections:  House of Representatives - last held 3 and 17 May 1999 (next to be held NA May 2004)

Election results:  House of Representatives - percent of vote by party - NC 37.3%, CPN/UML 31.6%, NDP 10.4%, NSP 3.2%, Rastriya Jana Morcha 1.4%, Samyukta Janmorcha Nepal 0.8%, NWPP 0.5%, others 14.8%; seats by party - NC 113, CPN/UML 69, NDP 11, NSP 5, Rastriya Jana Morcha 5, Samyukta Janmorcha Nepal 1, NWPP 1

Judicial branch:

Supreme Court or “Sarbochha Adalat” (chief justice is appointed by the monarch on recommendation of the Constitutional Council; the other judges are appointed by the monarch on the recommendation of the Judicial Council)

Political parties and leaders:

Communist Party of Nepal/United Marxist-Leninist or CPN/UML [Madhav Kumar NEPAL, general secretary]; National Democratic Party or NDP (also called Rastriya Prajantra Party or RPP) [Surya Bahadur THAPA, chairman]; Nepal Sadbhavana (Goodwill) Party or NSP [Gajendra Narayan SINGH, president]; Nepal Workers and Peasants Party or NWPP [Narayan Man BIJUKCHHE, party chair]; Nepali Congress or NC [Girija Prasad KOIRALA, party president, Sushil KOIRALA, general secretary]; Rastriya Jana Morcha [Chitra Bahadur K. C., chairman]; Samyukta Janmorcha Nepal [Lila Mani POKHAREL, general secretary]

International organization participation:

 ADB, CCC, CP, ESCAP, FAO, G-77, IBRD, ICAO, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Intelsat, Interpol, IOC, ISO (correspondent), ITU, MONUC, NAM, OPCW, SAARC, UN, UNCTAD, UNESCO, UNFICYP, UNIDO, UNIFIL, UNMEE, UNMIBH, UNMIK, UNMOP, UNMOT, UNTAET, UPU, WFTU, WHO, WIPO, WMO, WToO, WTrO (observer)

Flag description:

Red with a blue border around the unique shape of two overlapping right triangles; the smaller, upper triangle bears a white stylized moon and the larger, lower triangle bears a white 12-pointed sun

Economy - overview:

Nepal is among the poorest and least developed countries in the world with nearly half of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for over 80% of the population and accounting for 41% of GDP. Industrial activity mainly involves the processing of agricultural produce including jute, sugarcane, tobacco, and grain. Production of textiles and carpets has expanded recently and accounted for about 80% of foreign exchange earnings in the past three years. Agricultural production is growing by about 5% on average as compared with annual population growth of 2.3%. Since May 1991, the government has been moving forward with economic reforms, particularly those that encourage trade and foreign investment, e.g., by reducing business licenses and registration requirements in order to simplify investment procedures. The government has also been cutting expenditures by reducing subsidies, privatizing state industries, and laying off civil servants. More recently, however, political instability - five different governments over the past few years - has hampered Kathmandu's ability to forge consensus to implement key economic reforms. Nepal has considerable scope for accelerating economic growth by exploiting its potential in hydropower and tourism, areas of recent foreign investment interest. Prospects for foreign trade or investment in other sectors will remain poor, however, because of the small size of the economy, its technological backwardness, its remoteness, its landlocked geographic location, and its susceptibility to natural disaster. The international community's role of funding more than 60% of Nepal's development budget and more than 28% of total budgetary expenditures will likely continue as a major ingredient of growth.

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