Nepal

The Kingdom of Nepal ({{IPA2|}} {{Audio|Nepal.ogg|listen}}) is a landlocked country in South Asia, bordering the People's Republic of China to the north and India to the south, east and west. Nepal has the distinction of being the world's only Hindu state, with over eighty percent of the people following this faith. For a relatively small country, the Nepali landscape is uncommonly diverse, ranging from the humid Terrai in the south to the lofty Himalayas in the north. Nepal boasts eight of the world's ten highest mountains, including Mount Everest on the border with China. Kathmandu is the capital and largest city. The exact origin of the name Nepal is uncertain, but the most popular understanding is that it is derived from Ne (holy) and pal (cave).

Economy

Nepal is one of the poorest and least developed nations in the world; up to half of its people live below the poverty line. Agriculture provides a livelihood for some 80% of the population and accounts for about 40% of the GDP, With services comprising 40% and industrial output the remainder. Terrain that ranges from hilly to mountainous in the northern two-thirds of the country has made the building of roads and other infrastructure difficult and expensive. There are just over 4,000 km of paved roads, and one 59 km railway line in the south of the country. Aviation is in a better state, with 46 airports, nine of them with paved runways. There is fewer than one telephone for each 46 people; landline services are poor, although mobile telephony in a reasonable state in some parts of the country. There are around 100,000 Internet connections, but after the imposition of the "state of emergency", intermittent losses of service have been reported.{{inote|CIA World Factbook}}

Related Topics:
Poverty line - GDP

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A lack of natural resources, its landlocked location, technological backwardness and the long-running civil war have also prevented Nepal from fully developing its economy. The country receives foreign aid from India, China, the United States, Japan and the European Union. The government's budget is about US$665 million, with expenditures of $1.1bn. The inflation rate has dropped to 2.9% after a period of higher inflation during the 1990s. The Nepalese Rupee has been tied to the Indian Rupee at an exchange rate of 1.6 for many years. Since the loosening of exchange rate controls in the early 1990s, the black market for foreign exchange has all but disappeared. A long-standing economic agreement between Nepal and India underpins a close relationship between the two economies.

Related Topics:
India - China - United States - Japan - European Union - Inflation - Nepalese Rupee - Indian Rupee

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The distribution of wealth among the people is consistent with that in many developed and developing countries: the highest 10% of households receive nearly 30% of the national income, and the lowest 10% a little more than a tenth of that. Nepal's workforce of about 10 million suffers from a severe shortage of skilled labour. By sector, agriculture employs 81% of the workforce, services 16% and manufacturing/craft-based industry 3%. Agricultural produce?mostly grown in the Terrai region bordering India?includes rice, corn, wheat, sugarcane, root crops, milk, and water buffalo meat. Industrial activity mainly involves the processing of agricultural produce, including jute, sugarcane, tobacco, and grain. The spectacular landscape and deep, exotic culture of Nepal represents considerable potential for tourism, but growth in this export industry has been stifled by recent political events. The rate of unemployment and underemployment approaches half of the working-age population. A lack of employment prospects has encouraged many Nepalese to move to India in search of work. Poverty is acute and many of Nepal's women are sold to Indian brothels, a figure as high as 7,000 each year.{{ref|women}} Nepal receives US$50 million a year through the Gurkha soldiers who serve in the Indian and British armies and are highly esteemed for their skill and bravery.

Related Topics:
Rate of unemployment and underemployment - Gurkha - Indian - British

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Nepal's GDP for the year 2005 is estimated to be just over US$37bn (adjusted to Purchasing Power Parity), making it the 83rd largest economy in the world. Per capita income is around US$1,402, ranked 163rd. Nepal's exports of mainly carpets, clothing, leather goods, jute goods, grain total $568 million. Imports commodities of mainly gold, machinery and equipment, petroleum products and fertiliser total US$1.419 bn. India (48.8%), the US (22.3%), and Germany (8.5%) are its main export partners. Nepal's import partners include India (43%), the United Arab Emirates (10%), China (10%), Saudi Arabia (4.4%), and Singapore (4%).{{inote|CIA World Factbook}}

Related Topics:
Purchasing Power Parity - Germany - United Arab Emirates - Saudi Arabia - Singapore

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