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$Unique_ID{COW02548}
$Pretitle{235D}
$Title{Nepal
Authors:}
$Subtitle{}
$Author{George L. Harris}
$Affiliation{HQ, Department of the Army}
$Subject{percent
country
india
nepal
trade
development
miles
nepalese
bank
foreign}
$Date{1973}
$Log{}
Country: Nepal
Book: Nepal, Bhutan, Sikkim, An Area Study: Nepal
Author: George L. Harris
Affiliation: HQ, Department of the Army
Date: 1973
Authors:
Jackson A. Giddnes, Thomas E. Lux, Frederica Bunge, Frances Chadwick Rintz,
Harvey H. Smith
Country Summary
1. COUNTRY: Kingdom of Nepal. Area, about 54,400 square miles;
rectangular in shape, about 525 miles in east-west direction and from ninety
to 140 miles in north-south direction. Bordered on north by Tibet, an
autonomous region within the People's Republic of China (PRC), on the east by
Sikkim, and on the south and west by India.
2. GOVERNMENT: A constitutional monarchy, under King Birendra Bir Bikram
Shah Dev (1972). Government, based on the Constitution of 1962 (amended in
1967), divided into executive, legislative (called the National Panchayat),
and judicial branches. Political parties remained proscribed in 1972, but some
agitation to restore pre-1960 parliamentary form of government.
3. POPULATION: Estimated 12 million in 1972; predominantly rural; annual
growth rate about 2.5 percent. Indo-Nepalese constitute approximately 80
percent of population; the remainder are of Tibetan origin.
4. TOPOGRAPHY: Largely mountainous: high mountains of the main Himalayan
range (Mt. Everest, 29,028 feet) cover over one-third of country; lower
mountains and hills cover additional more than two-fifths (Katmandu Valley
located in the east-central part of this zone). Remainder, about one-fifth of
country, known as the Tarai (Terai), consists of generally low-lying strip
along southern border.
5. CLIMATE: Varies from tropical in the south to arctic in the north.
Tarai zone generally hot and humid with monsoonal rains June to October and
dry season March to June. Foothills zone up to 10,000 feet has temperate
climate with rainy, warm summer, cool to cold winter. Mountain zone has short
cool summer, severe winter; snowline about 12,000 to 14,000 feet.
6. LANGUAGES: Indo-Aryan languages spoken by over three-fourths of
population. The most important, Nepali, is the official language and the
native tongue of about half the population; also used as a lingua franca.
Tibeto-Burman languages spoken by somewhat under one-fourth of people.
7. RELIGION: Majority practices Hinduism. Most Tibeto-Nepalese are
adherents of Tibetan Buddhism. Small minority are Muslims. Shamanism
widespread.
8. EDUCATION: In 1971 about 500,000 students in primary schools and
100,000 in secondary schools. Higher education system includes forty colleges
and one university. Primary schooling compulsory but not widely enforced in
1972. Literacy rate estimated at about 6 percent.
9. HEALTH: Malaria and tuberculosis prevalent. Malaria eradication
program has achieved considerable success in parts of country. Smallpox
occurs, but vaccination programs have reduced incidence. Dysentery common.
Goiter and leprosy also occur. Over fifty hospitals (about 2,000 beds) and
about 300 doctors.
10. JUSTICE: The court system is headed by the Supreme Court; lower
courts include fourteen zonal courts (in each of the fourteen administrative
zones) and sixty-six district courts (also known as regional courts).
11. ADMINISTRATIVE DIVISIONS: Country divided into fourteen zonal
administrations and seventy-five development districts. For purposes of
economic development, country was divided into four development regions in
1972.
12. ECONOMY: Still in first stages of economic development; consists of
many loosely linked minor valley economies rather than one integrated economy.
Predominantly dependent on agriculture; this sector accounts for more than
two-thirds of gross national product (GNP) and 85 percent of exports. Foreign
aid, about equivalent of US$25 million annually, supplied about 58 percent of
development spending in early 1970s. Most economic growth negated by
population rise.
13. INDUSTRY: Small amount of light industry, largely concentrated in
southeastern Nepal. Small plants producing mainly for local consumption
include rice, oil, sugar, and sawmills and cigarette and match factories.
Plans underway for paper, cement, and textile mills. Jute mills produce
primarily for export.
14. AGRICULTURE: Predominantly subsistence farming; food grains (rice,
corn, wheat, and millet) are main production, although cash crops (jute,
sugarcane, tobacco, oil seeds, and potatoes) increasing. Agricultural
productivity very low because of lack of regular water for large areas;
inadequate transportation facilities; and insufficient supplies of seeds,
fertilizers, pesticides, and implements. Fourth Plan (1970-75) aims at
increasing production of food grains by 16 percent and of cash crops by 40
percent. Land reform underway but hampered by organizational difficulties,
financing, and problems in determining land titles and tenancy status.
15. FOREIGN TRADE: Over 90 percent of foreign trade is with India, much
unrecorded as border between the two countries is relatively open. Attempts
being made to diversify trade; bilateral trade agreements concluded with
Pakistan, Poland, Bulgaria, the PRC, the Soviet Union, and Bangladesh. State
trading agency, established in 1961 to spur trade with countries other than
India, handles about 50 percent of non-Indian trade. Trade Promotion Center
established in 1971 to provide information and guidance to exporters. Trade
and Transit Treaty with India revised in 1971, accorded most-favored-nation
treatment on reciprocal basis and granted Nepal right to operate trucks and
barges in Calcutta port area and to use sealed truck containers for transit
trade.
16. FINANCE: Banking system not highly developed, but rapidly expanding.
Nepal Rastra Bank, the central bank, began operations in 1956. State-owned
commercial bank established in 1966 to supplement single, private commercial
bank. Nepal Industrial Development Corporation (NIDC) major source of credit
to private sector. Budget deficits about 50 percent of total spending;
financed by foreign grants and other forms of aid. Main aid donors: India,
PRC, United States, and Asian Development Bank.
17. CURRENCY: Nepalese rupee (NR) medium of exchange, although private
holdings of Indian rupees (Rs) allowed. Nepalese rupee devalued December 11,
1967, to rate of NR10.125 to US$1 from NR7.6 to US$1.
18. COMMUNICATIONS: Microwave transmitting and receiving station being
set up with Indian help. Wireless stations provide service throughout most of
the country. About 6,000 telephones, most in Katmandu. Two-way teleprinter
service to overseas countries through Hong Kong began operating in September
1971.
19. RAILROADS: Two railroads, totaling sixty miles of narrow-gauge
track, connect points in Nepalese foothills and Indian railheads.
20. ROADS: Close to 1,700 miles of roads. Major roads built by India,
PRC, Soviet Union, and United States. East-West Highway, about 650 miles,
linking country's eastern and western parts, under construction.
21. INLAND WATERWAYS: Chief rivers are the Kosi in the east, the Karnali
in the west, and the Narayani in central Nepal. Lower Narayani is navigable by
small steamers and timber barges in winter season; most other rivers are not
navigable even by small craft.
22. CIVIL AVIATION: Royal Nepalese Airlines Corporation (RNAC) operates
flights to Calcutta, Patna, Benares, and New Delhi in India and to Karachi in
Pakistan. Under collaboration agreement signed in July 1970 with Air France,
French technical and operational personnel operate RNAC. Five major airports.
Airstrips and short-takeoff-and-landing (STOL) fields are being constructed
throughout country.
23. INTERNATIONAL ORIENTATION: Nepal follows a policy of