During the late 18th-early 19th centuries, the principality of Gorkha united many of the other principalities and states of the sub-Himalayan region into a Nepalese Kingdom. Nepal retained its independence following the Anglo-Nepalese War of 1814-16 and the subsequent peace treaty laid the foundations for two centuries of amicable relations between Britain and Nepal. (The Brigade of Gurkas continues to serve in the British Army to the present day.) In 1951, the Nepali monarch ended the century-old system of rule by hereditary premiers and instituted a cabinet system that brought political parties into the government. That arrangement lasted until 1960, when political parties were again banned, but was reinstated in 1990 with the establishment of a multiparty democracy within the framework of a constitutional monarchy.An insurgency led by Maoists broke out in 1996. The ensuing 10-year civil war between Maoist and government forces witnessed the dissolution of the cabinet and parliament and the re-assumption of absolute power by the king in 2002. A peace accord in 2006 led to the promulgation of an interim constitution in 2007. Following a nationwide Constituent Assembly (CA) election in 2008, the newly formed CA declared Nepal a federal democratic republic, abolished the monarchy, and elected the country's first president. After the CA failed to draft a constitution by a May 2012 deadline set by the Supreme Court, then-Prime Minister Baburam BHATTARAI dissolved the CA. Months of negotiations ensued until March 2013 when the major political parties agreed to create an interim government headed by then-Chief Justice Khil Raj REGMI with a mandate to hold elections for a new CA. Elections were held in November 2013, in which the Nepali Congress won the largest share of seats in the CA and in February 2014 formed a coalition government with the second place Communist Party of Nepal-Unified Marxist-Leninist and with Nepali Congress President Sushil KOIRALA as prime minister. Nepal's new constitution came into effect in September 2015.
Location: Southern Asia, between China and India
Border Countries: China 1,389 km, India 1,770 km
Total Area: 147,181 sq km Land: 143,351 sq km Water: 3,830 sq km
Climate: Varies from cool summers and severe winters in north to subtropical summers and mild winters in south
Terrain: Tarai or flat river plain of the Ganges in south; central hill region with rugged Himalayas in north
Natural resources: Quartz, water, timber, hydropower, scenic beauty, small deposits of lignite, copper, cobalt, iron ore
Land use: Agricultural land: 28.8% arable land 15.1%; permanent crops 1.2%; permanent pasture 12.5% Forest: 25.4% Other: 45.8% (2011 est.)
Ethnic groups: Chhettri 16.6%, Brahman-Hill 12.2%, Magar 7.1%, Tharu 6.6%, Tamang 5.8%, Newar 5%, Kami 4.8%, Muslim 4.4%, Yadav 4%, Rai 2.3%, Gurung 2%, Damai/Dholii 1.8%, Thakuri 1.6%, Limbu 1.5%, Sarki 1.4%, Teli 1.4%, Chamar/Harijan/Ram 1.3%, Koiri/Kushwaha 1.2%, Other 19%
Languages: Nepali (official) 44.6%, Maithali 11.7%, Bhojpuri 6%, Tharu 5.8%, Tamang 5.1%, Newar 3.2%, Magar 3%, Bajjika 3%, Urdu 2.6%, Avadhi 1.9%, Limbu 1.3%, Gurung 1.2%, Other 10.4%, Unspecified 0.2%
Religions: Hindu 81.3%, Buddhist 9%, Muslim 4.4%, Kirant 3.1%, Christian 1.4%, Other 0.5%, Unspecifed 0.2% (2011 est.)
Population: 29,033,914 (July 2016 est.)
Literacy: 63.9%; Male: 76.4%; Female: 53.1% (2015 est.)
Administrative divisions: 14 zones (anchal, singular and plural); Bagmati, Bheri, Dhawalagiri, Gandaki, Janakpur, Karnali, Kosi, Lumbini, Mahakali, Mechi, Narayani, Rapti, Sagarmatha, Seti
Economy: Nepal is among the least developed countries in the world, with about one-quarter of its population living below the poverty line. Nepal is heavily dependent on remittances, which amount to as much as 30% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for almost two-thirds of the population but accounting for less than a third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of commercially feasible capacity. Nepal has signed trade and investment agreements with India, China, and other countries, but political uncertainty and a difficult business climate have hampered foreign investment. The United States and Nepal signed a $500 million Millennium Challenge Corporation Compact in September 2017 which will expand Nepal’s electricity infrastructure and help maintain transportation infrastructure. Massive earthquakes struck Nepal in early 2015, which damaged or destroyed infrastructure and homes and set back economic development. Although political gridlock and lack of capacity have hindered post-earthquake recovery, government-led reconstruction efforts have progressively picked up speed, although many hard hit areas still have seen little assistance. Additional challenges to Nepal's growth include its landlocked geographic location, inconsistent electricity supply, and underdeveloped transportation infrastructure.
Agriculture - products: Pulses, rice, corn, wheat, sugarcane, jute, root crops; milk, water buffalo meat
Industries: Tourism, carpets, textiles; small rice, jute, sugar, and oilseed mills; cigarettes, cement and brick production
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