Federal Democratic Republic of Nepal

सङ्घीय लोकतान्त्रिक गणतन्त्र नेपाल Sanghiya Loktāntrik Ganatantra Nepāl Federal Democratic Republic of Nepal
Federation


Motto जननी जन्मभूमिश्च स्वर्गादपि गरीयसी Mother and Motherland are Greater than Heaven
Anthem Sayaun Thunga Phool Ka
Location of Nepal

Capital	Kathmandu

Government	Republic
President
- From 2008	Ram Baran Yadav
Prime Minister
- From 2011	Jhala Nath Khanal

Legislature	Parliament

History
- May 28, 2008	Monarchy abolished

Area	147,181 km²

Population
- 2010	29,331,000
Density	199.2/km²

GDP	2010 (PPP)
- Total	US$ 37.2 billion
- Per capita	US$ 1,270

Currency	Nepalese rupee

Kingdom of Nepal
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The Federal Democratic Republic of Nepal is a federal republic in South Asia.

Background

In 1951, the Nepalese monarch ended the century-old system of rule by hereditary premiers and instituted a cabinet system of government. Reforms in 1990 established a multiparty democracy within the framework of a constitutional monarchy. An insurgency led by Maoist extremists broke out in 1996. The ensuing ten-year civil war between insurgents and government forces witnessed the dissolution of the cabinet and parliament and assumption of absolute power by the king. Several weeks of mass protests in April 2006 were followed by several months of peace negotiations between the Maoists and government officials, and culminated in a November 2006 peace accord and the promulgation of an interim constitution. Following a nation-wide election in April 2008, the newly formed Constituent Assembly declared Nepal a federal democratic republic and abolished the monarchy at its first meeting the following month. The Constituent Assembly elected the country's first president in July. The Maoists, who received a plurality of votes in the Constituent Assembly election, formed a coalition government in August 2008, but resigned in May 2009 after the president overruled a decision to fire the chief of the army staff. The Communist Party of Nepal-United Marxist-Leninist and the Nepali Congress party then formed a new coalition government with several smaller parties. The prime minister's resignation in June 2010 ushered in seven months of political gridlock until Jhala Nath KHANAL was elected as replacement in February 2011. His pressing tasks are to conclude the drafting of a new constitution by the late May 2011 deadline and to determine the future of the former Maoist combatants.^[1]

Economy

Nepal is among the poorest and least developed countries in the world, with almost one-quarter of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for three-fourths of the population and accounting for about one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of feasible capacity, but political instability hampers foreign investment. Additional challenges to Nepal's growth include its landlocked geographic location, civil strife and labor unrest, and its susceptibility to natural disaster.^[2]