NEPAL

Introduction
The Kingdom of Nepal is one of world's most attractive countries in the world. It stretches eight hundred kilometres east to west and is an average seventy kilometres wide. Within such a small area, the country covers three important geographic belts. To the north is the Himalayan range. The climate there is usually sub-zero, most of the land snow-covered, and the elevation ranges from 3,000 to 8,848 metres. The vegetation is mostly shrubs and lichens and animal life includes the snow-leopard, yak, and a variety of pheasants. Eight of the world's ten tallest peaks, including Everest, are in this belt and the area is inhabited by mongoloid people. Mid- country is mostly hills. These cover 70% of the total terrain and elevations range from 500 to 3,000 meters. Most of the country people live in this region and the capital of Kathmandu is also located among the hills. The people are mongoloid and Indo-Aryan and their major occupation is agriculture and livestock rearing.

There is wide range of flora and fauna in this region and the leopard, bear, deer, and bison are some of them. The hills have moderate climates and have seen human settlement for two thousand years. International visitors find the cultures and trekking areas of this region most attractive. The southern plains are the most fertile in Nepal. Much of the successful farming and forestry is done in this region. The elevations range from 400 to 70 meters above the sea level and the plains have some of the most important wildlife parks of South East Asia. The animal life includes the Royal Bengal tiger, one-horned rhino, and the gharial crocodile. The vegetation is mostly sub-tropical. The people are mostly Indo- Aryans and distinctive Tharu and Maithila cultures of the terai have attracted much attention internationally. The climate is sub-tropical and the development in this region is proceeding at a very fast pace because of the amenable topography.

Neighbors
China (Tibet) is located to the north of Nepal and the Himalaya separate the two countries. They share a cordial relationship and in the past bilateral trade was most necessary for the well-being of the Tibetan Plateau and the upper-hills of Nepal. The cultures of the region are highly influenced and many of the deities and religious practices are similar. India is to the south, east, and west of Nepal. Relationships are cordial between the two countries. Many cultural, development, and ethnic similarities exist between China, Nepal, and India. Both neighbours actively help in the development activities of the Kingdom. Since Nepal is land-locked and access to the sea-ports is through India, the country's positive policies towards Nepal is exceedingly important.

NEPAL IN BRIEF

Location:
26-30 degrees north and 80-88 degrees east
Area:147,181 square kilometers
Neighbors:
India to the east, west, south and China to the north
Terrain:
70% hilly, mountains in the north and flatlands in the south
Capital:Kathmandu
Population:
20 million (approximate), growth rate 2.1%
Households:3.57 million
Persons per household:5.6
Ethnic background:Indo-Aryan and Tibeto-Burmese
Life expectancy:54 years
Literacy:40%
Rural population:88%
Zones:14
Districts:75

History
The oldest engraving found in Nepal goes back to the fifth century AD and the text describes the wise King Man Dev and his activities. However, statues have been discovered dating back even later, to the second century BC. Though the civilization in this region is relatively young, it has produced many beautiful areas and sophisticated cultures. In the past 1,000 years, these have been the most important historical areas: in the west the Khas Kingdoms, in the mid-west the Gurung and Magar Kingdoms, in the mid-east the Newari Kingdoms, and in the east the Kirati Kingdoms. These rulers controlled the mountain and the hills, the plains, however, were mostly under the rule of the Maithila Rulers. All these kingdoms were consolidated into a single nation by Prithvi Narayan Shah more than two hundred years ago. The diverse cultures of Nepal have attracted many visitors and scholars. 77% of the travellers to Nepal stay within the Kathmandu Valley where three of the Newar kingdoms were located. They contain accomplished wood, metal, and stone craft dating from the second to the nineteenth centuries AD and the Valley alone contains seven World Heritage Sites. The Shah dynasty rules the kingdom today and the monarchy operates under the national constitution. Most of the executive powers are handled by the prime minister who is elected by the parliament. The multi-party parliament is democratic.

Economy
It is estimated that ninety percent of the Nepalese people are dependent on agriculture. Agriculture and livestock provide food, clothing, cash, and other necessities to them. Other major earning sectors are tourism, garment, carpet, and manufacturing industries. Since the advent of multi-party democracy in 1990, there has been a sharp increase of enterprise within the country. Though the per capita income of an average Nepali is about US$ 200, most own their own home and some agricultural land besides. His Majesty's Government, along with donor countries, has made major contribution towards the improvement of the living standards of the people. The German Government has been a major partner in the development field for forty years now. German Embassy, GTZ, and Goethe Institute, among other German organisations are operating in Nepal. It is to be noted that approximately 85% of the Nepalese-Tibetan rugs manufactured in Nepal are marketed to Germany alone.

ECONOMIC INDICATORS

Currency: 1 Nepali rupee = 100 paisa
Exchange rate:
1 US$ = Rs. 54 (approximate)
1 DM = Rs. 35 (approximate)
Fiscal year:16 July to 15 July
Gross domestic product:Rs. 193,700 mn.
Growth rate:5.1%
Per capita income:$ 210
Exports:Rs. 19,900 mn.
Imports: Rs. 53,200 mn.
Trade balance:Rs. 33,300 mn.
Inflation rate: 10%
Main exports:

Readymade garments, handmade woolen carpets, hides, skins, medicinal herbs, handicrafts
Main industries:
Jute, sugar, cigarettes, liquor, beer, bricks, textile, cement, mining
Main crops:
Rice, wheat, sugar cane, oil seeds, jute, tobacco

Foreign Investment
Nepal's foreign investment has been most significant in the development sector. Many visitors like the country because of its friendly people, beautiful scenery and excellent adventure travel opportunities. Among the activities that a visitor may wish to enjoy are mountaineering, trekking, jungle safaris, rafting, cultural tours, and ballooning. Recently, many foreign individuals and companies are showing interest in investing in Nepal. Since labor is cheap and the government is actively encouraging investors, Nepal may yield high and reliable profits to investors.