Neotectonics

The collision between the Indian subcontinent and the Eurasian continent, which started in Paleogene time and continues today, produced the Himalaya and the Tibetan Plateau, a spectacular modern example of the effects of plate tectonics. Nepal lies completely within this collision zone, occupying the central sector of the Himalayan arc, nearly one third of the 2,400 km (1,500 mi)-long Himalayas.
The Indian plate continues to move north relative to Asia at the rate of approximately 50 mm (2.0 in) per year Given the great magnitudes of the blocks of the Earth's crust involved, this is remarkably fast, about twice the speed at which human fingernails grow. As the strong Indian continental crust subducts beneath the relatively weak Tibetan crust, it pushes up the Himalaya mountains. This collision zone has accommodated huge amounts of crustal shortening as the rock sequences slide one over another.

Medieval

By the early 12th century, leaders were emerging whose names ended with the Sanskrit suffix malla ("wrestler"). Initially their reign was marked by upheaval, but the kings consolidated their power and ruled over the next 200 years; by the late 14th century, much of the country began to come under a unified rule. This unity was short-lived; in 1482 the region was carved into three kingdoms: Kathmandu, Patan, and Bhaktapur.

Population Structure

Population Structure
Data
Size
Population
28,676,547 (2005)
Growth Rate
2.2%
Population below 14 Years old
39%
Population of age 15 to 64
57.3%
Population above 65
3.7%
The median age (Average)
20.07
The median age (Male)
19.91
The median age (Females)
20.24
Ratio (Male:Female)
1, 000:1,060
Life expectancy (Average)
59.8 Years
Life expectancy (Male)
60.9
Life expectancy (Female)
59.5
Literacy Rate (Average)
53.74%
Literacy Rate (Male)
68.51%
Literacy Rate (Female)
42.49%
Despite the migration of a significant section of the population to the southern plains or terai in recent years, the majority of the population still lives in the central highlands. The northern mountains are sparsely populated.
Kathmandu, with a population of around 800,000 (metropolitan area: 1.5 million), is the largest city in the country.

Economy

Nepal's gross domestic product (GDP) for the year 2008 was estimated at over US$12 billion (adjusted to Nominal GDP), making it the 115th-largest economy in the world. Agriculture accounts for about 40% of Nepal's GDP, services comprise 41% and industry 22%. Agriculture employs 76% of the workforce, services 18% and manufacturing/craft-based industry 6%. Agricultural produce — mostly grown in the Terai region bordering India — includes tea, rice, corn, wheat, sugarcane, root crops, milk, and water buffalo meat. Industry mainly involves the processing of agricultural produce, including jute, sugarcane, tobacco, and grain. Its workforce of about 10 million suffers from a severe shortage of skilled labour. The spectacular landscape and diverse, exotic cultures of Nepal represent considerable potential for tourism, but growth in this hospitality industry has been stifled by recent political events. The rate of unemployment and underemployment approaches half of the working-age population. Thus many Nepali citizens move to India in search of work; the Gulf countries and Malaysia being new sources of work. Nepal receives US$50 million a year through the Gurkha soldiers who serve in the Indian and British armies and are highly esteemed for their skill and bravery. The total remittance value is worth around US$1 billion, including money sent from the Persian Gulf and Malaysia, who combined employ around 700,000 Nepali citizens. A long-standing economic agreement underpins a close relationship with India. The country receives foreign aid from India, Japan, the United Kingdom, the United States, the European Union, China, Switzerland, and Scandinavian countries. Poverty is acute; per-capita income is less than US$470.The distribution of wealth among the Nepalis is consistent with that in many developed and developing countries: the highest 10% of households control 39.1% of the national wealth and the lowest 10% control only 2.6%.
The government's budget is about US$1.153 billion, with expenditures of $1.789 billion (FY05/06). The Nepalese rupee has been tied to the Indian Rupee at an exchange rate of 1.6 for many years. Since the loosening of exchange rate controls in the early 1990s, the black market for foreign exchange has all but disappeared. The inflation rate has dropped to 2.9% after a period of higher inflation during the 1990s.
Nepal's exports of mainly carpets, clothing, leather goods, jute goods and grain total $822 million. Import commodities of mainly gold, machinery and equipment, petroleum products and fertilizer total US$2 bn. India (53.7%), the US (17.4%), and Germany (7.1%) are its main export partners. Nepal's import partners include India (47.5%), the United Arab Emirates (11.2%), China (10.7%), Saudi Arabia (4.9%), and Singapore (4%).

A Rs.500 banknote of The Republic of Nepal. For economical reasons, the watermark on the right still contains a picture of King Gyanendra, obscured by printing a rhododendron, the national flower of Nepal.[Nepal remains isolated from the world's major land, air and sea transport routes although, within the country, aviation is in a better state, with 48 airports, ten of them with paved runways; flights are frequent and support a sizable traffic. The hilly and mountainous terrain in the northern two-thirds of the country has made the building of roads and other infrastructure difficult and expensive. There were just over 8,500 km of paved roads, and one 59-km railway line in the south in 2003. There is only one reliable road route from India to the Kathmandu Valley. The only practical seaport of entry for goods bound for Kathmandu is Calcutta in India. Internally, the poor state of development of the road system (22 of 75 administrative districts lack road links) makes volume distribution unrealistic. Besides having landlocked, rugged geography, few tangible natural resources and poor infrastructure, the long-running civil war is also a factor in stunting the economic growth.There is less than one telephone per 19 people. Landline telephone services are not adequate nationwide but are concentrated in cities and district headquarters. Mobile telephony is in a reasonable state in most parts of the country with increased accessibility and affordability; there were around 175,000 Internet connections in 2005. After the imposition of the "state of emergency", intermittent losses of service-signals were reported, but uninterrupted Internet connections have resumed after Nepal's second major people's revolution to overthrow the King's absolute power.

Military and foreign affairs

Main articles: Military of Nepal and Foreign relations of Nepal

The famous outpost of Naamche Bazaar in the Khumbu region close to Mount Everest. The town is built on terraces in what resembles a giant Greek theatre.
Nepal's military consists of the Nepalese Army, which includes the Nepalese Army Air Service (the air force unit under it.) Nepalese Police Force is the civilian police and the Armed Police Force Nepal is the paramilitary force. Service is voluntary and the minimum age for enlistment is 18 years. Nepal spends $99.2 million (2004) on its military—1.5% of its GDP. Many of the equipment and arms are imported from India. Consequently, the USA provided M16s M4s and other Colt weapons to combat communist (Maoist) insurgents. As of now, the standard-issue battle rifle of the Nepalese army is the Colt M16.Nepal has close ties with both of its neighbours, India and China. In accordance with a long-standing treaty, Indian and Nepalese citizens may travel to each others' countries without a passport or visa. Nepalese citizens may work in India without legal restriction. Although Nepal and India typically have close ties, from time to time Nepal becomes caught up in the problematic Sino-Indian relationship. Recently, China has been asking Nepal to curb protests in Nepal against China's Policy on Tibet,and on April 17, 2008, police arrested over 500 Tibetan protestorsciting a need to maintain positive relations with China.
Terai News writes, "Being a Hindu Nation Nepal has a permanent relation, especially with the important religious places of the northern states of India. Religion has played a great role in the cultural relations between Nepal and India.

Subdivisions

Nepal is divided into 14 zones and 75 districts, grouped into 5 development regions. Each district is headed by a permanent chief district officer responsible for maintaining law and order and coordinating the work of field agencies of the various government ministries. The 5 regions and 14 zones are:
Eastern Region (Purwanchal)
Kosi
Mechi
Sagarmatha
Central Region (Madhyamanchal)
Bagmati
Janakpur
Narayani
Western Region (Pashchimanchal)
Dhawalagiri
Gandaki
Lumbini
Mid-Western Region (Madhya Pashchimanchal)
Bheri
Karnali
Rapti
Far-Western Region (Sudur Pashchimanchal)
Mahakali
Seti

Republic

The Communist Party of Nepal (Maoist) won the largest number of seats in the Constituent Assembly election held on April 10, 2008 and formed a coalition government which included most of the parties in the CA. Although acts of violence occurred during the pre-electoral period, election observers noted that the elections themselves were markedly peaceful and "well-carried out.
The newly elected Assembly met in Kathmandu on May 28, 2008, and, after a polling of 564 constituent Assembly members, 560 voted to form a new Government,the monarchist Rastriya Prajatantra Party, which had four members in the assembly, registering a dissent note. At that point, it was declared that Nepal had become a secular and inclusive democratic republic,with the government announcing a three-day public holiday from May 28 to 30. The King was thereafter given 15 days to vacate the Narayanhiti Royal Palace, in order to re-open it as a public museum.
However, political tensions and consequent power-sharing battles have continued in Nepal. In May 2009, the Maoist-led government was toppled and another coalition government with all major political parties barring the Maoists was formed. Madhav Kumar Nepal of the Communist Party of Nepal (Unified Marxist-Leninist) was made the Prime Minister of the coalition government