Nepal Mongolia Bhutan
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COUNTRY PROFILE 2001 Nepal Mongolia Bhutan This Country Profile is a reference work, analysing the country’s history, politics, infrastructure and economy. It is updated annually. The EIU’s quarterly Country Reports analyse current trends and provide a two-year forecast The full publishing schedule for Country Profiles is now available on our website at http://www.eiu.com/schedule The Economist Intelligence Unit 15 Regent St, London SW1Y 4LR United Kingdom The Economist Intelligence Unit The Economist Intelligence Unit is a specialist publisher serving companies establishing and managing operations across national borders. For over 50 years it has been a source of information on business developments, economic and political trends, government regulations and corporate practice worldwide. 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Comparative economic indicators, 2000 EIU Country Profile 2001 © The Economist Intelligence Unit Limited 2001 1 Contents Nepal 4 Basic data 5 Politics 5 Political development 9 Constitution, institutions and administration 9 Political forces 11 International relations and defence 12 Resources and infrastructure 12 Population 13 Education 14 Health 15 Natural resources and the environment 15 Transport, communications and the Internet 17 Energy provision 19 The economy 19 Economic structure 20 Economic policy 21 Economic performance 23 Economic sectors 23 Agriculture, forestry and fishing 24 Mining and semi-processing 24 Manufacturing 25 Construction 25 Financial services 26 Other services 27 The external sector 27 Trade in goods 29 Invisibles and the current account 30 Capital flows and foreign debt 31 Foreign reserves and the exchange rate 32 Appendices 32 Regional organisations 33 Sources of information 35 Reference tables 35 Population 35 Energy consumption 36 Government finances 36 Gross domestic product 36 Gross domestic product by expenditure 37 Gross domestic product by sector 37 Consumer prices, national data 37 Consumer prices, IMF data 38 Money supply and interest rates 38 Production index of manufacturing industries 39 Tourism 39 Foreign trade 40 Balance of payments, IMF series 40 External debt, World Bank estimates © The Economist Intelligence Unit Limited 2001 EIU Country Profile 2001 2 41 Foreign reserves 41 Exchange rates Mongolia 42 Basic data 43 Politics 43 Political development 44 Constitution, institutions and administration 45 Political forces 46 International relations and defence 47 Resources and infrastructure 47 Population 48 Education and health 48 Natural resources and the environment 48 Transport, communications and the Internet 49 Energy provision 49 The economy 49 Economic structure 50 Economic policy 51 Economic performance 53 Economic sectors 53 Agriculture and forestry 53 Mining and semi-processing 53 Manufacturing 54 Construction 54 Financial services 54 Other services 55 The external sector 55 Trade in goods 56 Invisibles and the current account 56 Capital flows and foreign debt 57 Foreign reserves and the exchange rate 58 Appendices 58 Sources of information 59 Reference tables 59 Population 59 Labour force 60 Government finances 60 Government revenue 60 Government expenditure 61 Money supply and credit 61 Gross domestic product 61 Gross domestic product by expenditure 62 Gross domestic product by sector 62 Consumer prices 63 Crop production 63 Livestock numbers 63 Meat production 63 Mineral production 64 Output of selected industrial products 64 Main trading partners 65 Balance of payments, IMF estimates EIU Country Profile 2001 © The Economist Intelligence Unit Limited 2001 3 65 External debt 66 Net official development assistance 66 Foreign reserves 66 Exchange rates Bhutan 67 Basic data 68 Politics 68 Political development 69 Constitution, institutions and administration 70 Political forces 71 International relations and defence 71 Resources and infrastructure 71 Population 72 Education and health 72 Natural resources and the environment 73 Transport and communications and the Internet 73 Energy provision 74 The economy 74 Economic structure 74 Economic policy 75 Economic performance 76 Economic sectors 76 Agriculture, forestry and fishing 76 Mining and semi-processing 76 Manufacturing 76 Construction 77 Financial services 77 Other services 77 The external sector 77 Trade in goods 78 Invisibles and the current account 78 Capital flows and foreign debt 78 Foreign reserves and the exchange rate 79 Appendices 79 Regional organisations 79 Sources of information 80 Reference tables 80 Government finances 80 Interest rates 80 Gross domestic product by sector 81 Consumer price index 81 Agricultural production 81 Electricity production and exports 81 Exports to India by product 82 Imports from India 82 Trade data by country 83 Balance of payments, IMF series 83 External debt, World Bank estimates 84 External debt, national data 84 Foreign reserves 84 Exchange rates © The Economist Intelligence Unit Limited 2001 EIU Country Profile 2001 4 Nepal Nepal Basic data Land area 147,181 sq km Population 23.2m (preliminary estimate, 2001 census) Main towns Population in ‘000, 1991 estimates (Central Bureau of Statistics) Kathmandu (capital) 421.3 Biratnagar 129.4 Lalitpur 115.9 Pokhara 95.3 Climate Temperate (harsh with extreme cold at high altitude) Weather in Kathmandu Hottest month, July, 20-29°C (average daily minimum and maximum); coldest (altitude 1,337 metres) month, January, 2-23°C; driest month, December, 3 mm average rainfall; wettest month, July, 373 mm average rainfall Languages Nepali (official). English is widely used in commerce and there are many regional languages and dialects Measures Metric system; local units also used include 1 seer=0.933 kg; 1 maund=40 seer; 1 ropani=0.05087 ha; one bigha= 0.6773 ha Currency Nepalese rupee (NR)=100 paisa. Effectively pegged since 1993 to the Indian rupee at a rate of NRs1.6:Rs1. Annual average exchange rate in 2000: NRs71.1:US$1. Exchange rate on October 30th 2001: NRs76.3: US$1 Fiscal year July 16th-July 15th Time 5 hours 45 minutes ahead of GMT Public holidays National Unity Day, January 11th; Martyrs’ Memorial Day, January 29th; Spring Day, February; National Democracy Day, February 18th; Shiva Festival, February 21st; Holi Festival, March; Horse Festival, March 24th; Ram’s birthday, April 2nd; New Year’s Day, April 13th; Buddha’s birthday, May 18th; King Gyanendra’s birthday, July 7th; Rishi Panchami, Rakshya Bandhan and Cow Festival, August; Krishna’s birthday, August/September; Rain God Festival, Teej (women only), September/October; Ghatasthapana and Dasain, Festival of Lights, October/November; Constitution Day, November 8th; various regional holidays EIU Country Profile 2001 © The Economist Intelligence Unit Limited 2001 Nepal 5 Politics A constitutional monarchy Nepal is a constitutional monarchy with King Gyanendra as head of state and Hinduism as the state religion. There are no significant restrictions on political parties. After five years of unstable governments, the Nepali Congress (NC) won a firm majority in May 1999, marred since by party infighting. Nepal has had three prime ministers since the May 1999 election. Sher Bahadur Deuba is the current prime minister. Political development Nepal originates from the The modern history of Nepal dates from the second half of the 18th century, Gorkha principality when one of the many principalities of the region, Gorkha, began to expand under the leadership of Prithivi Narayan Shah. Before the expansion was halted by the British in 1814-16, more than 75 small hill principalities had succumbed to the Gorkha armies, which had brought all of the sub-Himalayan hill areas between Bhutan in the east and the Sutlej River in the west under Gorkha control. A constitutional monarchy Nepal’s 233-year Shah Monarchy dates back to 1768 when Prithivi Narayan was formed in 1951 Shah conquered Kathmandu. The Shah dynasty retained its political prerogatives until 1846, when Jung Bahadur Rana gained political control, extracting a decree from the king that left only a nominal role for the monarch and transferred all sovereign powers to the Rana family, who ruled as hereditary prime ministers. This system endured for just over a century, with the Ranas presiding over an isolationist regime that kept most Nepalese in dire poverty. In 1950, however, King Tribhuvan fled to India, sparking a revolt against Rana rule.