Capital: Kathmandu
Print | Close
| Nepal
Capital: Kathmandu Print | Close |
|
|
Introduction Nepal is a landlocked country and is home to the world's highest mountain, Mount Everest - a popular tourist destination. Nepal is also one of the least developed nations in the world and is heavily reliant on foreign aid. The country has been ruled for most of its history by a royal family. However, in 2006 the parliament voted unanimously to curtail the king's powers. In the same year, a peace accord was signed to end a 10-year Maoist insurgency that left more than 12,000 people dead.
Issues
History The land of Nepal has an ancient culture, but it was not until the late 18th century that the kingdom of Nepal was created, when King Prithvi Narayan Shah united a group of warring Himalayan principalities. In the early 1800s Nepal doubled its size by conquering parts of its southern neighbour, India. The move led to a two-year confrontation (1814-1816) with the British. Nepal was defeated and surrendered one third of its territory. Following the war Nepal maintained a policy of isolationism, closing its borders to all foreigners until 1951. In 1946, General Jung Bahadur Rana declared himself prime minister and made the office hereditary. He began the Rana government, which lasted until 1950, when the newly formed Nepali Congress Party led an armed revolt to end the dictatorship. The monarchy was restored to absolute power in 1951. Nepal became the focus of international attention in 1953 when New Zealander Edmund Hillary and Nepal's Sherpa Tenzig Norgay became the first climbers to reach the summit of Everest, the world's highest mountain. Violence flared in 1990 as people began demanding reforms, including democratic government, a multi-party system, and a constitutional monarchy. Fifty people were killed in the protests. The king responded by agreeing to relinquish power, draft a new constitution and hold multi-party democratic elections. The Nepali Congress Party won the first elections in May 1991. The new government introduced economic reforms which had an inflationary effect, leading to sporadic civil and political unrest. Shifting political alliances led to regular parliamentary dissolutions, early elections and frequent changes of government. Nepal's political instability was compounded in February 1996, when the leaders of the Maoist United People's Front began a violent insurgency with the aim of overthrowing the monarchy. Nepal was thrown into turmoil in June 2001 when several members of the royal family, including King Birendra, were killed in a gun attack attributed to a drunken Crown Prince Dipendra, who then turned his gun upon himself. The crown prince died shortly after the attack and the king's brother, Gyanendra, became king. Later in 2001, the prime minister, Sher Bahadur Deuba, brokered a ceasefire with the Maoists. However, the rebels broke the truce, leading the king to declare a state of emergency and involve the military in the conflict for the first time. Political infighting ensued between members of Mr Deuba's ruling Nepali Congress Party over whether to extend the state of emergency, prompting the king to dissolve parliament on May 22, 2002. In October the king sacked Mr Deuba and installed a new government led by the Rastriya Prajatantra Party. A ceasefire agreement with the Maoists was brokered by the government in January 2003 but it collapsed seven months later, bringing a return to violence. King Gyanendra stepped into Nepali politics again in February 2005, when he dismissed the prime minister and his government, declared a state of emergency and assumed direct power, citing the need to defeat the Maoist rebels. In early 2006, the main opposition parties united with the Maoists to call for the restoration of democracy. Weeks of strikes and protests followed, and by April the king agreed to reinstate parliament. Later that month, veteran politician Girija Prasad Koirala was sworn in as prime minister. The parliament voted unanimously to curtail the king's political powers in May - ending his control over the army, forcing him to pay taxes and leaving him open to questions in parliament and the courts. The government and Maoist rebels signed landmark peace accord on November 20, 2006, marking an end to the civil war that claimed at least 12,500 lives. An interim parliament was established in January 2007, which includes rebel leaders. Government Democratic politics was introduced to Nepal in 1991, when the king relinquished power following public protests. A new constitution was drafted and multi-party elections were held in May of that year. Nepal has two houses of parliament: the House of Representatives and the National Council. There are seven major political parties including the Nepali Congress Party, the Nepal Democratic Party, the Nepal Communist Party and the Nepal Workers and Peasants Party. In 2002, King Gyanendra dismissed the popularly elected government for "incompetence" and assumed executive powers for himself. He seized power again in February 2005, claiming the government was not doing enough to defeat the Maoist rebellion. Following weeks of protests organised by the Maoists and the main opposition parties, the king restored democracy in April 2006. Weeks later the parliament voted unanimously to curtail the king's political powers. In January, an interim parliament was set up to include the rebels, who signed a peace deal with the government two months earlier. The new assembly will oversee elections expected in June 2007 to a body that will rewrite Nepal's constitution permanently and decide the monarch's fate. Economy Nepal is one of the poorest countries in the world, with an estimated per capita income of approximately $US250. Poverty and malnutrition are widespread and the incidence of disease is high. Over 80 per cent of the population live in rural areas and rely on subsistence agriculture for survival. Main agricultural crops include jute, sugarcane, tobacco and grain. Despite this, agriculture's contribution to Nepal's overall economic performance halved from 72 per cent in 1974 to 37 per cent in 2002. Agricultural production is hampered by unfavourable weather, environmental degradation, inadequate rural infrastructure, and land ownership/tenancy problems. At the same time, tourism has grown, as has trade, especially in textiles and carpets. However, the Maoist insurgency has greatly reduced tourist numbers in the past few years. The government has taken steps to restructure the economy by introducing tax reform; privatising public enterprises; dismantling trade barriers; liberalising the foreign exchange system; and encouraging industry growth, particularly in export-oriented industries such as carpets and clothing. Nepal's entry into the World Trade Organisation (WTO) was approved in September 2003. |
 |
||
| © ABC 2008 | Close » | |
