I. CURRENT HUMANITARIAN SITUATION
Structural imbalances and protracted political turmoil sustain underdevelopment and general poverty. Caste and class-based discriminations are deeply rooted, and inclusive development continues to remain a major challenge. Nepal hosts over 100,000 Bhutanese refugees - of Nepali origin - while bilateral talks for their return home remain overshadowed by Nepal's array of domestic problems.
The conflict and the deep-rooted social and cultural traditions contribute to human rights abuses. "Disappearances" after detention by government forces and abduction by the Maoists have emerged as Nepal's major human rights challenge, alongside the killing of innocent civilians by both sides in the conflict. In December 2004 the National Human Rights Commission said the disappearances had topped 1,600 people, which remains a major issue both nationally and internationally. The conflict has also caused a general slowdown in development activities, which ironically could have helped correct the inequities in society, which are believed to be the root causes of the present conflict.
Other problems facing Nepal include displacement and increased urban migration. Many young Nepalis have already headed abroad to work as labourers and those remaining in the country are pouring into the cities. The conflict continues to affect schooling, especially after early 2004 when the Maoists began recruiting school children for their "child militia". Forced schooling on ideology, training school children on the use of weapons and using students to promote their political cause has caused children to leave their villages in large numbers. Continued displacement from villages has caused a shortage of farm workers which, fearing higher Maoist levies on produce, could cause agricultural production to decline over time, causing severe food shortages in many hill and mountain districts. Other major challenges facing Nepal include basics such as clean drinking water, immunisation coverage and environmental degradation - all of which have been relegated to the backburner by the conflict. Human trafficking into India is a growing problem along with HIV/AIDS, spread primarily by Nepali labourers infected while working in India.
II. CURRENT POLITICAL SITUATION
Nepal's democracy remains suspended after the takeover by King Gyanendra on 1 February 2005. A 10-member council of ministers, comprising largely of administrators and officials of the Panchayat System-partyless political system in place before 1990-now rule the country. The king has promised to "reactivate" multiparty democracy after restoring peace and security. The clampdown on press freedoms and arrest of political leaders has made independent monitoring of government actions almost impossible.
The dissolution of parliament, rule through prime ministers appointed by the king and the inability of successive governments to hold elections has resulted in a political vacuum at all governance levels. Holding free and fair elections remains near impossible unless there is a let up in the violence that now dominates much of the country. The Maoists have denounced the royal takeover in a statement issued on February 1st, ruling out the possibility of negotiations in the short-run.
The Maoist insurgency is Nepal's major threat to security and law and order. The conflict, with over 1,000 deaths every year, is now in a high-intensity mode, resulting in increased military spending and moves towards militarisation. The differences between the parliamentary parties - four of the parties are still protesting against "regression" or the takeover by the king in October 2002 - and the king also continue. The inability of the democratic forces to unite against the Maoists is one reason for the continuation of political uncertainty. The Maoists seem to be benefiting most from the confusion at the centre, and have occasionally tried to align themselves with parties protesting against the government and the king. Nepal's delicate political equation balances on the three-way tug-o-war and could tilt towards the side where new alliances are forged.
III. GEOGRAPHY
Nepal is a predominantly mountainous country. From under 200 m in the southern plains, the topography rises to 8,848m or Mount Everest, within a horizontal distance of less than 200 km. Nepal has a narrow and fertile strip of plains in the south. The plains are densely populated.
The area of Nepal is 147,181 sq km. It is rectangular in shape, measuring about 885 km in length (east to west) and 193 km in width (north to south). The country has three distinct ecological zones, the mountains, hills and the terai (or plains). The mountain region lies above 4,877m. This region covers an area of 51,817 sq km; the 16 districts are home to about 7 percent of the population. The hill region - above 610m to 4,876m - covers about 61,345 sq km and is home to about 44 percent of the population. The 20 terai districts in the south cover 34,019 sq km. The terai comprises about 23 percent of the total land area and holds 49 percent of the population.
The climate varies according to the terrain; generally it is hot and humid in the plains in the south while tundra-like conditions prevail in the mountains. Temperatures vary from an average 2º to 23ºC during January to 20º to 29ºC in July (excluding northern mountainous areas). Temperatures in the plains can reach 40ºC in summer and the mountain regions experience sub-zero conditions during winter. Generally December is the driest month, with little or no rainfall, and July is the wettest month, with about 370mm average rainfall.
IV. ADMINISTRATIVE STRUCTURE
Nepal has fourteen anchals or zones and 75 jillas or districts, which are grouped under five development regions (Eastern, Central, Western, Mid-Western and Far-Western). The 3,914 Village Development Committees (VDCs) constitute the lowest political unit. The villages and districts have elected local governments. Nepal, however, has not been able to hold local government elections since July 2002, when the terms of the previously elected representatives ended. There is one regional administrator for each of the five development regions and each district has a chief district officer.
V. ETHNIC COMPOSITION AND DEMOGRAPHIC DATA
In 2001 Nepal had a population of 23.2 million people. Nepali society has a caste hierarchy that dates back to the Civil Code of 1854. Even though the caste system was abolished in 1961 is still deeply entrenched. Nepali law lists 59 janajati (nationalities) groups, which is still a contentious issue. Census data of 2001 lists people belonging to 102 caste/ethnic groups. Constitutionally, Nepal is a Hindu state. Together, indigenous people comprise 37.2 percent of the population, the largest among them are Maar (7.1 percent), Tharu (6.7 percent) and Tamang (5.6 percent).
Based on census figures, Hindus comprise the largest religious group (80.6 percent), followed by Buddhists (10.7 percent), Muslims (4.2 percent), Kirat (3.6 percent), Christians (0.45 percent) and others 0.4 percent. People belonging to the different ethnic groups reside in specific regions, where their numbers are highest. For example, Nepal's hills have large populations of people belonging to the Kirati stock (of Tibeto-Burman descent and not Indo-Aryan). Similarly, Nepal has a large population of Tharu people residing in the Mid-Western plains. Nepal has not had ethnic violence. People from ethnic groups do have genuine grievances, many say they are exploited by people from the Indo-Aryan stock, something the Maoist insurgents have been trying to capitalise on.
The population grew by 2.3 percent between 1991 and 2001 per annum - one of the highest in the world. Women comprised 50.1 percent of the population. Nepal has 58 designated urban areas; in 2001 the urban population was 14.2 percent.
VI. LANGUAGES
A majority speak Nepali, the "official" language. Nepal has more than 125 languages and dialects. The 2001 Census listed 92 languages spoken in Nepal. All languages other than Nepali have been designated as "national" languages, while Nepali is the language of official use. English is used by a large number of Nepalis, more by the educated urban populations, but many people living in tourist areas communicate in the language. The Devnagari (Nepali) script resembles Hindi in grammar and structure, and like Hindi, is rooted in Sanskrit. The government is introducing school curricula in languages other than Nepali, but implementation has been slow. There is growing demand for developing and promoting non-official languages. However, an attempt by some municipalities (local government bodies) to use the language of the dominant population groups in the respective areas was barred by the Supreme Court.
VII. RELIGIOUS COMPOSITION AND MAJOR RELIGIOUS ORGANISATIONS
Hinduism is the dominant religion, and also the religion of state. The minorities hold that domination of lesser religions has resulted from state support. There are increasing demands for making the state secular, which is also what the Maoists promise. Hinduism dominates not only the culture and social life of the country, but also politics, because Hindus - mainly from rural areas - regard the king to be an incarnation of the Lord Vishnu. The deep-rooted caste based discriminations, and class, make the socio-cultural chasm deeper. There is now growing recognition for equality for all, both in state policy - the government has announced affirmative action policies - and civil society but implementation remains frustratingly slow. The Maoists, meanwhile, promise "self-rule" to people living in different areas where there are large ethnic and linguistic groups. It is illegal to proselytise in Nepal.
Nepal has not had major religious and communal clashes, even though there have been occasional clashes where minority groups have been attacked. Following the killing of 12 Nepali labourers by extremists in Iraq, violent mobs attacked several mosques in the capital and other parts of the country on 1 September 2004. Nepal has religious organisations representing different groups, including Hindu groups that claim affiliation with those in India.
VIII. ECONOMY
Agriculture is the main economic activity of over 80 percent of Nepalis. Much of the farming is of a subsistence nature, and large families depend on small parcels of land whose fragmentation is continuing.
Foreign loans and grants provide over 25 percent of the government's budget, and almost 60 percent of the budget earmarked for development activities including infrastructure building, education, healthcare, etc. Nepal's debt service obligations are growing. Almost a third of the recurrent budget is spent on debt servicing and salaries and pensions of government officials, teachers, and people in uniform; the civilian police, armed police (paramilitary) and the Royal Nepal Army. Nepal follows its own calendar starting in mid-April and its fiscal year is from mid-July to mid-July.
Nepal began structural adjustment backed by the World Bank and the International Monetary Fund in the mid-1980s. But real economic reforms took off only after 1992. The included changing industrial and foreign investment laws, reforming taxation (introduction of Value Added Tax), making the current account convertible, removal of licences on trade, privatisation of public enterprises and private sector entry into otherwise protected financial services and the aviation sectors.
Economic activity slowed after the escalation of the Maoist-government conflict, since late November 2001. The Gross Domestic Product (GDP) contracted in 2001/02 and has begun to recover but the conflict and continued political instability continues to cloud the investment and production climate. Besides extortion of business and threats, the Maoists have repeatedly enforced local and national strikes and closures crippling business activity. Even before these impediments to economic growth, Nepal was never a great attraction for foreign investors, except Indian companies making toiletries, and for the few venturing into hydropower development. Bureaucratic red tape, unclear regulations and corruption also make Nepal unattractive to foreign investors.
Despite the odds, Nepal has maintained macroeconomic stability, aided largely by remittances from Nepalis working abroad, budget support from the World Bank and borrowing from the IMF's Poverty Reduction Growth Facility. Inflation has remained at under five percent in 2003/04. The conflict in Nepal has affected development projects, including those aiming to reduce the widespread poverty - the thrust of the government's five-year plan (2002-2007).
Economic growth is heavily dependent on agriculture, which is largely rain-fed. More recent displacement of villagers by the conflict has begun to cause a slowdown in rural production. Unemployment and especially underemployment remain a major problem and coupled with insecurity, many young Nepalis are heading abroad - mainly to India and the Middle East - to work as labourers. According to government statistics about 38 percent of the population is living below the poverty line, while differences in income have widened.
IX. HISTORICAL MILESTONES
The history of modern Nepal began in the middle of the 18th century, when one of the many hill principalities, Gorkha began expanding under Prithvi Narayan Shah. King Prithvi conquered Kathmandu in 1768. The king then annexed the many hill principalities. The British stopped King Prithvi in 1814-16, following which Nepal's present day boundaries were fixed.
King Prithvi's successors ruled Nepal until Jang Bahadur Rana, a court official, rose to power following a bloody massacre of opponents in 1846. Rana then extracted a decree from the king effectively reducing the monarch to a nominal head and transferring sovereign powers to the prime minister. Hereditary Rana prime ministers ruled Nepal for 104 years, during which Nepal was isolated from the rest of the world. In November 1950 King Tribhuwan fled to India rekindling a popular revolt against the Ranas that was simmering. India helped broker a three-way truce between the king, the political parties and the Ranas following the king returned.
King Tribhuwan died in March 1954 leaving Nepal struggling with the budding democratic polity. His son Mahendra ascended to the throne on 14 March 1954. Nepal's democratic experiment ended in on 15 December, 1960 when King Mahendra ordered the arrest of all ministers of the elected Nepali Congress government and other party leaders and formed a cabinet, which he chaired. Two years later he introduced the Panchayat, a system of direct rule that lasted until April 1990.
Nepal has had 14 prime ministers in as many years after 1990. The first elections held in May 1991 elected a majority government of the Nepali Congress (NC) party. The government was toppled by infighting within its ranks in mid-1994. The general elections of November 1994 returned a hung parliament with the Communist Party of Nepal (Unified Marxist-Leninist) (CPN-UML) as the largest party. The CPN-UML government was toppled by a coalition led by the Nepali Congress, only to be replaced by another coalition of the Rastriya Prajatantra Party - a party of politicians that ruled under the king before 1990 - and the CPN-UML. There were two more changes in coalition governments leading to the third general election in May-June 1999 in which the Nepali Congress emerged victorious. However, infighting in the NC caused the prime minister to resign in less than a year and his successor lasted for another year or so.
The last Nepali Congress prime minister was Sher Bahadur Deuba, who was sacked by king Gyanendra on 4 October, 2002 for failing to hold parliamentary elections as planned (in November 2002). The government headed by Deuba held three rounds of negotiations with the Maoists. However, the Maoists resumed attacks on the government. In late November the government declared a state of emergency and sent the army to fight the Maoists. Following differences with the Nepali Congress (NC) leadership over ratification of the emergency, Deuba walked out of the NC with a faction that is now called the Nepali Congress (Democratic) in May 2002.
Nepal's King Gyanendra ascended the throne on June 4, 2001 following a shootout at a royal palace that left King Birendra, his queen, his three children and four other royal relatives dead. Crown Prince Dipendra was said to have shot his parents, siblings and cousins following a long-standing dispute with his parents over his choice of marriage partner. King Gyanendra - Birendra's middle brother and the only surviving son of King Mahendra - was outside the capital when the shootout occurred. King Gyanendra had been previously crowned king of Nepal on November 8, 1950 by the Ranas, after his grandfather King Tribhuwan had fled to India with the royal family.
King Gyanendra dismissed Prime Minister Sher Bahadur Deuba in October 2002 and appointed a government led by RPP leader Lokendra Bahadur Chand. The new cabinet made of up politicians - that "would not contest elections" technocrats and business leaders - got the Maoists to agree to a ceasefire in January 2003. It then held two rounds of negotiations. However, lack of cooperation from mainstream political parties rendered the government ineffective, causing the king to replace it with another one led by another RPP leader, Surya Bahadur Thapa. The Thapa cabinet held one more round of talks with the Maoists but the talks collapsed in August leading to resumption of hostilities that continue to date.
The king reappointed Sher Bahadur Deuba prime minister in June 2004 - who he had sacked in October 2002 after labelling him "incompetent" - who then put together a government of his own NC (Democratic) party, the CPN-UML, RPP and two nominees of the king. The three tasks given by the king to the prime minister are to form an all-party government, restore peace and security and begin general elections before mid-April 2005.
The Communist Party of Nepal (Maoist) launched its "people's war" aimed at toppling Nepal's constitutional monarchy and multiparty democracy in February 1996. The low-intensity conflict was largely centred in a handful of districts, mainly in the Midwest, until early 1999 when the Maoists began expanding their insurgency to other parts of the country. The Maoists are demanding that the government agree to hold an all-party conference to form an interim government to hold elections for a constituent assembly to write a new constitution - to replace the one promulgated by the king in September 1990.
King Gyanendra took over executive powers of Nepal on February 1, 2005. The government imposed a state of emergency in Nepal after the takeover speech. The king now chairs a 10-member council of ministers. Under the emergency rules, the government has clamped down on the private press and re-introduced press censorship. The government also detained members of the cabinet and restrained leaders of parliamentary parties in their homes to prevent protests.
The Maoists maintain they will settle for nothing less, while the government has proposed amending the constitution, except the basics: constitutional monarchy and multiparty democracy. According to data maintained by the Informal Sector Service Centre (INSEC) more than 10,600 people, including about 7,000 Maoists or "suspected" Maoists, have lost their lives in the conflict to date, an average of 1,188 every year. The government set up a High Level Peace Secretariat and renewed appeals to the Maoists to come to negotiations, which the Maoists have rejected, saying they believe the government does not have the authority to negotiate ( hinting that it is the king who holds the cards).
X. SYSTEM OF GOVERNMENT
Nepal is now under direct rule by the king. The constitution is supposed still in effect but large sections of it remain suspended, as result of the royal takeover, as well as the suspension of basic civil rights under the state of emergency.
By the 1990 constitution, Nepal is a constitutional monarchy with a multiparty democracy. The prime minister is selected by the party with a majority in the 205-member House of Representatives, and appointed by the king. The lower house was dissolved in May 2002. Nepal has not had general elections since, and three interim governments appointed by the king have ruled the country. The upper chamber has 60 members, 35 elected by the lower house through the single transferable vote, 15 elected by an electoral college comprising representatives of elected bodies and 10 are appointed by the king. A third of the upper house members retire every year and replenishment is possible only after holding local and general elections. The judiciary comprises the Supreme Court - which has original jurisdiction and the authority to review and hear appeals - and 16 appellate courts, 75 district courts and one special court.
XI. INTERNATIONAL STANDING
Nepal lies between India and China, and is practically landlocked by India on three-sides. Most commercial trade with China takes place through Tibet from Khasa, 114 km north east of Kathmandu. Nepal has many border trading points along the Nepal-India border.
Nepal is a member of many international organisations and contributes troops for United Nations peacekeeping missions. It maintains close ties with both India and China. For practical reasons such as easy access, and historical and cultural affinity, Nepal's relations are closer with India - manifested also by an open border between the two countries, even though there is now talk of introducing border checks to reduce contact between Nepali Maoist groups and their counterparts in the Indian states of Uttar Pradesh and Bihar. Nepal is a founder member of the South Asian Association for Regional Cooperation (SAARC) an organisation of seven countries: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. SAARC was established in 1985, and has annual summits of its leaders-which, however, have been scuttled several times because of India-Pakistan tensions.
Nepal pursues a non-aligned, independent foreign policy, even though under the 1950 Nepal-India Peace and Friendship Treaty, the latter has greater say on security matters. Indian domination in Nepal becomes more apparent when trade, transit and other bilateral treaties come up for renewal. Water resources development is an area of continued Indian interest because many Indian rivers flow from Nepal. The two neighbours have a preferential trade treaty (signed December 1996), but concessions that the treaty gave Nepal were constricted when it was renewed in March 2002.
Before 1990 Nepal played China against India as a strategy to balance Indian influence, which has changed with the thawing of India-China relations. Nepal-China relations now focus on trade and continued development assistance. Nepal maintains a "one China" policy, and is always nervous about political activism by Tibetan exiles in Nepal.
The United Nations, European Union and most Western governments have expressed concern over the royal takeover and have called immediate restoration of democratic rights. Some donors also said they could review development assistance, which could add to the hardships faced by the people in the villages.
XII. FURTHER READING AND WEB LINKS
Books/Reports:
- National Human Rights Commission, Human Rights in Nepal--A Status Report, 2003, 155 pages (It provides an overview of Nepal, Nepali society and a baseline survey of the Human Rights situation when the in 2001, a year after the NHRC was established.)
- UNDP, Nepal Human Development Report 2004: Empowerment and Poverty Reduction, 184 pages (The third Nepal HDR focuses on ways of empowering the weak and marginalized groups, and exclusion that has existed in Nepali society for decades. It is also a good secondary source for official data.)
- Informal Sector Service Centre, Human Rights Yearbook (several years). It provides an overview of the evolution of democracy in Nepal and the human rights lapses that have taken place. It is also a record of all types of violations that have taken place after the escalation of the Maoist-government conflict.
