Political pressure groups and leaders: Maoist guerrilla-based insurgency; numerous small, left-leaning student groups in the capital; several small, radical Nepalese antimonarchist groups
International organization participation: AsDB, CCC, CP, ESCAP, FAO,
G-77, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF,
IMO, Interpol, IOC, IOM (observer), ISO (correspondent), ITU, MONUC,
NAM, OPCW, SAARC, UN, UNAMSIL, UNCTAD, UNESCO, UNFICYP, UNIDO, UNIFIL,
UNMEE, UNMIBH, UNMIK, UNMOP, UNMOT, UNTAET, UPU, WFTU, WHO, WIPO, WMO,
WToO, WTrO (observer)
Diplomatic representation in the US: chief of mission:
Ambassador-designate Jai Pratap RANA chancery: 2131
New York FAX:
Diplomatic representation from the US: chief of mission: Ambassador
Michael E. MALINOWSKI (since December 2001) embassy: Panipokhari,
Kathmandu mailing address: use embassy street address telephone: [977]
(1) 411179 FAX: [977] (1) 419963
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 Nepal
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. Textile and carpet production, accounteing for about 80% of foreign exchange earnings in recent years, contracted significantly in 2001 due to the overall slowdown in the world economy and pressures by Maoist insurgents on factory owners and workers. Security concerns in the wake of Maoist activity, the June massacre of many members of the royal family, and the September 11 terrorist attacks in the US led to a decrease in tourism, another key source of foreign exchange. 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 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.
GDP: purchasing power parity - $35.6 billion (2001 est.)
GDP - real growth rate: 2.6% (2001 est.)
GDP - per capita: purchasing power parity - $1,400 (2001 est.)
GDP - composition by sector: agriculture: 41% industry: 22% services: 37% (2000 est.)