Changes

==Geography==

==Geography==

*Area: 147,181 sq. km. (56,136 sq. mi.), about the size and shape of Tennessee, bordering China and India.

*Area: 147,181 sq. km. (56,136 sq. mi.), about the size and shape of Tennessee, bordering China and India.

*Cities: Capital--Kathmandu (3 districts) (pop. 2.2 million est.). Other cities--Biratnagar, Patan, Pokhara, Birgunj, Dharan, Nepalgunj.

*Cities: Capital—Kathmandu (3 districts) (pop. 2.2 million est.). Other cities—Biratnagar, Patan, Pokhara, Birgunj, Dharan, Nepalgunj.

*Terrain: Flat and fertile in the southern Terai region; terraced cultivation and swiftly flowing mountain rivers in the central hills; and the high Himalayas in the north. Eight of the world's ten highest peaks are in Nepal, including Mount Everest. Kathmandu, the capital, is in a broad valley at 1,310 meters (4,300 ft.) elevation.

*Terrain: Flat and fertile in the southern Terai region; terraced cultivation and swiftly flowing mountain rivers in the central hills; and the high Himalayas in the north. Eight of the world's ten highest peaks are in Nepal, including Mount Everest. Kathmandu, the capital, is in a broad valley at 1,310 meters (4,300 ft.) elevation.

*Climate: Subtropical in the south to cool summers and severe winters in the northern mountains. The monsoon season is from June through September, during which showers occur almost every day, bringing 75 to 150 centimeters (30-60 in.) of rain.

*Climate: Subtropical in the south to cool summers and severe winters in the northern mountains. The monsoon season is from June through September, during which showers occur almost every day, bringing 75 to 150 centimeters (30-60 in.) of rain.

*Time zone: Nepal is 10 hours and 45 minutes ahead of Eastern Standard Time and does not observe daylight saving time.

*Time zone: Nepal is 10 hours and 45 minutes ahead of Eastern Standard Time and does not observe daylight saving time.

*Religions: Hinduism (81%), Buddhism (11%), Islam (4%), and others (4%).

*Religions: Hinduism (81%), Buddhism (11%), Islam (4%), and others (4%).

*Languages: Nepali and more than 12 others.

*Languages: Nepali and more than 12 others.

*Education: Years compulsory--0. Attendance--primary 80.4%, secondary 20%. Literacy--49% (63% male, 35% female).

*Education: Years compulsory—0. Attendance—primary 80.4%, secondary 20%. Literacy—49% (63% male, 35% female).

*Health: Infant mortality rate (2007 estimate)--63.7 deaths/1,000 live births. Life expectancy (2007 estimate)--61.9 years for males and 65.5 years for females.

*Health: Infant mortality rate (2007 estimate)--63.7 deaths/1,000 live births. Life expectancy (2007 estimate)--61.9 years for males and 65.5 years for females.

*Work force: Agriculture--71%; industry--3%; services--11%; other--1%.

*Work force: Agriculture—71%; industry—3%; services—11%; other—1%.

==Government==

==Government==

A Maoist insurgency--punctuated by cease-fires in 2001, 2003, 2005, and the latest one from April 26, 2006--has been ongoing since 1996. After King Gyanendra announced the reinstatement of Parliament on April 24, 2006, the Maoists declared a three-month unilateral ceasefire on April 26, 2006 which the new Koirala government reciprocated on May 3, 2006. Since then the Seven-Party Alliance (SPA) and the Maoists have signed five agreements, culminating in the comprehensive peace agreement of November 21, 2006, effectively ending the insurgency. However, Maoist violence and intimidation have continued since the agreement.  

A Maoist insurgency—punctuated by cease-fires in 2001, 2003, 2005, and the latest one from April 26, 2006—has been ongoing since 1996. After King Gyanendra announced the reinstatement of Parliament on April 24, 2006, the Maoists declared a three-month unilateral ceasefire on April 26, 2006 which the new Koirala government reciprocated on May 3, 2006. Since then the Seven-Party Alliance (SPA) and the Maoists have signed five agreements, culminating in the comprehensive peace agreement of November 21, 2006, effectively ending the insurgency. However, Maoist violence and intimidation have continued since the agreement.  

The main agenda of the SPA and the Maoists is to hold a Constituent Assembly (CA) election. The Constituent Assembly would draft and promulgate a new constitution defining the future political system in Nepal. The interim constitution, adopted on January 15, 2007, expressed full commitment to democratic ideals and norms, including competitive multi-party democracy, civil liberties, fundamental human rights, adult enfranchisement, periodic elections, press freedom, an independent judiciary, and the rule of law. The interim constitution also guaranteed the basic rights of Nepali citizens to formulate a constitution for themselves and to participate in the Constituent Assembly in an environment free from fear. The interim constitution transferred all powers of the King as head of state to the prime minister and stripped the King of any ceremonial constitutional role. Under the interim constitution, the fate of the monarchy will be decided by the first meeting of the Constituent Assembly. The interim Parliament is a unicameral house.  

The main agenda of the SPA and the Maoists is to hold a Constituent Assembly (CA) election. The Constituent Assembly would draft and promulgate a new constitution defining the future political system in Nepal. The interim constitution, adopted on January 15, 2007, expressed full commitment to democratic ideals and norms, including competitive multi-party democracy, civil liberties, fundamental human rights, adult enfranchisement, periodic elections, press freedom, an independent judiciary, and the rule of law. The interim constitution also guaranteed the basic rights of Nepali citizens to formulate a constitution for themselves and to participate in the Constituent Assembly in an environment free from fear. The interim constitution transferred all powers of the King as head of state to the prime minister and stripped the King of any ceremonial constitutional role. Under the interim constitution, the fate of the monarchy will be decided by the first meeting of the Constituent Assembly. The interim Parliament is a unicameral house.  

===Principal Government Officials===

===Principal Government Officials===

====Cabinet Ministers====  

====Cabinet Ministers====  

*Prime Minister--Sushil Koirala

*Prime Minister—Sushil Koirala

*Peace and Reconstruction--Ram Chandra Paudel  

*Peace and Reconstruction—Ram Chandra Paudel  

*Foreign Affairs--Sahana Pradhan

*Foreign Affairs—Sahana Pradhan

*Information and Communications--Krishna Bahadur Mahara

*Information and Communications—Krishna Bahadur Mahara

*Education and Sports--Pradip Nepal

*Education and Sports—Pradip Nepal

*Environment, Science and Technology--Mahantha Thakur  

*Environment, Science and Technology—Mahantha Thakur  

*Finance--Dr. Ram Sharan Mahat

*Finance—Dr. Ram Sharan Mahat

*Law, Justice and Parliamentary Affairs--Narendra Bikram Nembang

*Law, Justice and Parliamentary Affairs—Narendra Bikram Nembang

*Home Affairs--Krishna Prasad Sitaula

*Home Affairs—Krishna Prasad Sitaula

*Local Development--Dev Prasad Gurung

*Local Development—Dev Prasad Gurung

*Industry, Commerce and Supplies--Rajendra Mahato

*Industry, Commerce and Supplies—Rajendra Mahato

*Culture, Tourism and Civil Aviation--Prithvi Subba Gurung

*Culture, Tourism and Civil Aviation—Prithvi Subba Gurung

*Forest and Soil-Conservation--Matrika Prasad Yadav

*Forest and Soil-Conservation—Matrika Prasad Yadav

*Agriculture and Cooperatives--Chhabilal Biswokarma

*Agriculture and Cooperatives—Chhabilal Biswokarma

*Physical Planning and Works--Hisila Yami

*Physical Planning and Works—Hisila Yami

*Land-Reforms and Management--Jagat Bahadur Bogati

*Land-Reforms and Management—Jagat Bahadur Bogati

*Women, Children and Social Welfare--Khadga Bahadur Biswokarma

*Women, Children and Social Welfare—Khadga Bahadur Biswokarma

*Health and Population--Giriraj Mani Pokharel  

*Health and Population—Giriraj Mani Pokharel  

====State Ministers====  

====State Ministers====  

*Labour and Transport Management--Ramesh Lekhak

*Labour and Transport Management—Ramesh Lekhak

*Water Resources--Gyanendra Bahadur Karki

*Water Resources—Gyanendra Bahadur Karki

*General Administration--Ram Chandra Yadav

*General Administration—Ram Chandra Yadav

*Law, Justice and Parliamentary Affairs--Indra Bahadur Gurung

*Law, Justice and Parliamentary Affairs—Indra Bahadur Gurung

*Education--Mohan Singh Rathour  

*Education—Mohan Singh Rathour  

===Foreign Relations===

===Foreign Relations===

===Human Rights===

===Human Rights===

Since political reform began in 1990, some progress has been achieved in the transition to a more open society with greater respect for human rights; however, substantial problems remain. Poorly trained police sometimes use excessive force in quelling violent demonstrations. In addition, there have been reports of torture during detention and widespread reports of custodial abuse. In 2000, the government established the National Human Rights Commission, a government-appointed commission with a mandate to investigate human rights violations. The government is sometimes slow to follow the commission's recommendations or to enforce accountability for recent and past abuses. The King's February 2005 dismissal of the government, subsequent imposition of emergency rule and suspension of many civil rights--including freedom of expression, assembly, and privacy--was a setback for human rights in Nepal. During this three-month period, censors were deployed to major newspapers, and many political leaders were kept under house arrest. The King's government restricted the media from publishing interviews, articles, or news items against the spirit of the royal proclamation of February 1, 2005 or in support of terrorist or destructive activities. The reinstated government, led by Prime Minister Koirala, reversed these decisions in May 2006. The interim constitution promulgated on January 15, 2007 ensured unrestricted freedom of expression.  

Since political reform began in 1990, some progress has been achieved in the transition to a more open society with greater respect for human rights; however, substantial problems remain. Poorly trained police sometimes use excessive force in quelling violent demonstrations. In addition, there have been reports of torture during detention and widespread reports of custodial abuse. In 2000, the government established the National Human Rights Commission, a government-appointed commission with a mandate to investigate human rights violations. The government is sometimes slow to follow the commission's recommendations or to enforce accountability for recent and past abuses. The King's February 2005 dismissal of the government, subsequent imposition of emergency rule and suspension of many civil rights—including freedom of expression, assembly, and privacy—was a setback for human rights in Nepal. During this three-month period, censors were deployed to major newspapers, and many political leaders were kept under house arrest. The King's government restricted the media from publishing interviews, articles, or news items against the spirit of the royal proclamation of February 1, 2005 or in support of terrorist or destructive activities. The reinstated government, led by Prime Minister Koirala, reversed these decisions in May 2006. The interim constitution promulgated on January 15, 2007 ensured unrestricted freedom of expression.  

Both the Maoists and security personnel have committed numerous human rights violations. The Maoists have used tactics such as kidnapping, torture, bombings, intimidation, killings, and conscription of children. Within the Nepalese security forces, violations ranged from disappearances to executions. After the royal takeover on February 1, 2005 and subsequent imposition of the state of emergency, the security forces arrested many political leaders, student leaders, journalists, and human rights activists under the Public Security Act of 1989, although all were released by June 2005 when the King ended the state of emergency.  

Both the Maoists and security personnel have committed numerous human rights violations. The Maoists have used tactics such as kidnapping, torture, bombings, intimidation, killings, and conscription of children. Within the Nepalese security forces, violations ranged from disappearances to executions. After the royal takeover on February 1, 2005 and subsequent imposition of the state of emergency, the security forces arrested many political leaders, student leaders, journalists, and human rights activists under the Public Security Act of 1989, although all were released by June 2005 when the King ended the state of emergency.  

After the April 2006 cease-fire announced by the government and the Maoists, incidents of human rights violations by the government declined substantially while incidents of human rights violations by the Maoists remained relatively unabated. Even after signing a comprehensive peace agreement with the government in November 2006, Maoists' extortion, abduction, and intimidation largely remained uncontrolled. Although activities by other political parties have increased significantly in the rural parts of Nepal, political party representatives, police, non-governmental organization (NGO) workers, and journalists reported continuous threats and intimidation by Maoist cadres. During the January-February 2007 uprising in the Terai, reports of government security forces using excessive force to quell demonstrations were common.  

After the April 2006 cease-fire announced by the government and the Maoists, incidents of human rights violations by the government declined substantially while incidents of human rights violations by the Maoists remained relatively unabated. Even after signing a comprehensive peace agreement with the government in November 2006, Maoists' extortion, abduction, and intimidation largely remained uncontrolled. Although activities by other political parties have increased significantly in the rural parts of Nepal, political party representatives, police, non-governmental organization (NGO) workers, and journalists reported continuous threats and intimidation by Maoist cadres. During the January–February 2007 uprising in the Terai, reports of government security forces using excessive force to quell demonstrations were common.  

There are three major daily English-language newspapers, "The Kathmandu Post," "The Himalayan Times" and "The Rising Nepal." The last and its vernacular sister publication are owned by a government corporation. There are hundreds of smaller daily and weekly periodicals that are privately owned and of varying journalistic quality. Views expressed since the 1990 move to democracy are varied and vigorous. Currently, 75 radio and four television stations are privately owned and operated, following liberalization of licensing regulations. Radio Nepal and Nepal Television are government-owned and operated. There are nearly 200 cable television operators nationwide, and satellite dishes to receive television broadcasts abound.  

There are three major daily English-language newspapers, "The Kathmandu Post," "The Himalayan Times" and "The Rising Nepal." The last and its vernacular sister publication are owned by a government corporation. There are hundreds of smaller daily and weekly periodicals that are privately owned and of varying journalistic quality. Views expressed since the 1990 move to democracy are varied and vigorous. Currently, 75 radio and four television stations are privately owned and operated, following liberalization of licensing regulations. Radio Nepal and Nepal Television are government-owned and operated. There are nearly 200 cable television operators nationwide, and satellite dishes to receive television broadcasts abound.  

Nepal's exports increased 2.8% in FY 2005/2006 compared to an increase of 8.3% in FY 2004/2005. Imports grew by 9.8% in FY 2005/2006 compared with 9.2% in FY 2004/2005. Exports were constrained by a prolonged phase of general strikes, industrial closures, and political turmoil during the second half of FY 2005/2006 and also by a significant drop in Nepal's main export, ready-made textile products. The trade deficit for FY 2004/2005 was $1.2 billion, which widened to $1.4 billion in FY 2005/2006. Real GDP growth during 1996-2002 averaged less than 5%. Real growth experienced a one-time jump in 1999, rising to 6%, before slipping back below 5%. In 2002, GDP recorded a negative growth rate of 0.33%, largely because of the Maoist insurgency. GDP grew 3.1% in FY 2002/2003 and 3.6% in FY 2003/2004, and again slipped to 2.4% in 2004/2005 and to 2.4% in FY 2005/2006, according to the Central Bureau of Statistics.  

Nepal's exports increased 2.8% in FY 2005/2006 compared to an increase of 8.3% in FY 2004/2005. Imports grew by 9.8% in FY 2005/2006 compared with 9.2% in FY 2004/2005. Exports were constrained by a prolonged phase of general strikes, industrial closures, and political turmoil during the second half of FY 2005/2006 and also by a significant drop in Nepal's main export, ready-made textile products. The trade deficit for FY 2004/2005 was $1.2 billion, which widened to $1.4 billion in FY 2005/2006. Real GDP growth during 1996-2002 averaged less than 5%. Real growth experienced a one-time jump in 1999, rising to 6%, before slipping back below 5%. In 2002, GDP recorded a negative growth rate of 0.33%, largely because of the Maoist insurgency. GDP grew 3.1% in FY 2002/2003 and 3.6% in FY 2003/2004, and again slipped to 2.4% in 2004/2005 and to 2.4% in FY 2005/2006, according to the Central Bureau of Statistics.  

Despite its growing trade deficit, Nepal traditionally has a balance of payments (BOP) surplus due to remittances from Nepalese working abroad. In FY 2005/2006, Nepal recorded a balance of payments surplus of $355 million, as compared to $79 million in FY 2004/2005. The lower BOP surplus in FY 2004/2005 was mainly attributed to the lower inflow of net government loans, and the higher surplus in FY 2005/2006 was due to resumption of foreign loans and assistance after the April 2006 People's Movement. Both the current account and the capital account registered significant growth in FY 2005/2006. Nepal receives substantial amounts of external assistance from India, the United Kingdom, the United States, Japan, Germany, and the Scandinavian countries. Several multilateral organizations--including the World Bank, the Asian Development Bank, and the UN Development Program--also provide assistance. Such assistance decreased substantially in FY 2004/2005 after the royal takeover of February 1, 2005 and also because of the Maoist conflict, which undermined development activities throughout most of Nepal. On April 23, 2004, Nepal became the 147th member of the World Trade Organization (WTO).  

Despite its growing trade deficit, Nepal traditionally has a balance of payments (BOP) surplus due to remittances from Nepalese working abroad. In FY 2005/2006, Nepal recorded a balance of payments surplus of $355 million, as compared to $79 million in FY 2004/2005. The lower BOP surplus in FY 2004/2005 was mainly attributed to the lower inflow of net government loans, and the higher surplus in FY 2005/2006 was due to resumption of foreign loans and assistance after the April 2006 People's Movement. Both the current account and the capital account registered significant growth in FY 2005/2006. Nepal receives substantial amounts of external assistance from India, the United Kingdom, the United States, Japan, Germany, and the Scandinavian countries. Several multilateral organizations—including the World Bank, the Asian Development Bank, and the UN Development Program—also provide assistance. Such assistance decreased substantially in FY 2004/2005 after the royal takeover of February 1, 2005 and also because of the Maoist conflict, which undermined development activities throughout most of Nepal. On April 23, 2004, Nepal became the 147th member of the World Trade Organization (WTO).  

With eight of the world's ten highest mountain peaks--including Mt. Everest at 8,848 m (29,000 ft)--Nepal is a tourist destination for hikers and mountain climbers. However, the decade-long insurgency and a global economic slowdown threatened the tourism industry. Figures from the Department of Immigration showed a 4% increase in arrivals in 2006, but these remained well below numbers during 1999, the peak tourism year. Recent tourist arrivals have given relief to the tourism-based hotel, trekking, mountaineering, and aviation industries. Since the political parties and Maoists brokered a comprehensive peace agreement in November 2006, the tourism industry hoped that guest arrivals in Nepal would bounce quickly back to 1999 levels and higher.  

With eight of the world's ten highest mountain peaks—including Mt. Everest at 8,848 m (29,000 ft)--Nepal is a tourist destination for hikers and mountain climbers. However, the decade-long insurgency and a global economic slowdown threatened the tourism industry. Figures from the Department of Immigration showed a 4% increase in arrivals in 2006, but these remained well below numbers during 1999, the peak tourism year. Recent tourist arrivals have given relief to the tourism-based hotel, trekking, mountaineering, and aviation industries. Since the political parties and Maoists brokered a comprehensive peace agreement in November 2006, the tourism industry hoped that guest arrivals in Nepal would bounce quickly back to 1999 levels and higher.  

Swift rivers flowing south through the Himalayas have massive hydroelectric potential to service domestic power needs and growing demand from India. Only about 1% of Nepal's hydroelectric potential is currently tapped. Several hydroelectric projects, at Kulekhani and Marsyangdi, were completed in the early to late 1980s. In the early 1990s, one large public-sector project, the Kali Gandaki A (144 megawatts--MW), and a number of private projects were planned; some have been completed. Kali Gandaki A started commercial operation in August 2002. The most significant privately financed hydroelectric projects currently in operation are the Khimti Khola (60 MW) and Bhote Koshi (36 MW) projects.  

Swift rivers flowing south through the Himalayas have massive hydroelectric potential to service domestic power needs and growing demand from India. Only about 1% of Nepal's hydroelectric potential is currently tapped. Several hydroelectric projects, at Kulekhani and Marsyangdi, were completed in the early to late 1980s. In the early 1990s, one large public-sector project, the Kali Gandaki A (144 megawatts—MW), and a number of private projects were planned; some have been completed. Kali Gandaki A started commercial operation in August 2002. The most significant privately financed hydroelectric projects currently in operation are the Khimti Khola (60 MW) and Bhote Koshi (36 MW) projects.  

The environmental impact of Nepal's hydroelectric projects has been limited by the fact that most are "run-of-river," with only one storage project undertaken to date. The planned private-sector West Seti (750 MW) storage project is dedicated to electricity exports. An Australian company signed a power purchase agreement with the Indian Power Trading Corporation in September 2002 and has the lead on the project. Negotiations with India for a power purchase agreement have been underway for several years, but agreement on pricing and capital financing remains a problem. The Government of Nepal has taken up the issue of project financing for the West Seti project with the EXIM Bank of China. The Department of Electricity Development recently obtained proposals from 14 foreign companies for survey licenses of three projects--600 MW Budhi Gandaki, 402 MW Arun III, and 300 MW Upper Karnali. The Ministry of Water Resources is currently evaluating the proposals and has not awarded the survey licenses. Currently, domestic demand for electricity is increasing at 8%-10% a year.  

The environmental impact of Nepal's hydroelectric projects has been limited by the fact that most are "run-of-river," with only one storage project undertaken to date. The planned private-sector West Seti (750 MW) storage project is dedicated to electricity exports. An Australian company signed a power purchase agreement with the Indian Power Trading Corporation in September 2002 and has the lead on the project. Negotiations with India for a power purchase agreement have been underway for several years, but agreement on pricing and capital financing remains a problem. The Government of Nepal has taken up the issue of project financing for the West Seti project with the EXIM Bank of China. The Department of Electricity Development recently obtained proposals from 14 foreign companies for survey licenses of three projects—600 MW Budhi Gandaki, 402 MW Arun III, and 300 MW Upper Karnali. The Ministry of Water Resources is currently evaluating the proposals and has not awarded the survey licenses. Currently, domestic demand for electricity is increasing at 8%-10% a year.  

Population pressure on natural resources is increasing. Overpopulation is already straining the "carrying capacity" of the middle hill areas, particularly the Kathmandu Valley, resulting in the depletion of forest cover for crops, fuel and fodder, and contributing to erosion and flooding. Additionally, water supplies within the Kathmandu Valley are not considered safe for consumption, and disease outbreaks are not uncommon. Although steep mountain terrain makes exploitation difficult, mineral surveys have found small deposits of limestone, magnesite, zinc, copper, iron, mica, lead, and cobalt.  

Population pressure on natural resources is increasing. Overpopulation is already straining the "carrying capacity" of the middle hill areas, particularly the Kathmandu Valley, resulting in the depletion of forest cover for crops, fuel and fodder, and contributing to erosion and flooding. Additionally, water supplies within the Kathmandu Valley are not considered safe for consumption, and disease outbreaks are not uncommon. Although steep mountain terrain makes exploitation difficult, mineral surveys have found small deposits of limestone, magnesite, zinc, copper, iron, mica, lead, and cobalt.  

*Avg. inflation rate (Consumer Price Index, November 2006 est.): 8.6%.

*Avg. inflation rate (Consumer Price Index, November 2006 est.): 8.6%.

*Natural resources: Water, hydropower, scenic beauty, limited but fertile agricultural land, timber.

*Natural resources: Water, hydropower, scenic beauty, limited but fertile agricultural land, timber.

*Agriculture (38% of GDP): Products--rice, wheat, maize, sugarcane, oilseed, jute, millet, potatoes. Cultivated land--25%.

*Agriculture (38% of GDP): Products—rice, wheat, maize, sugarcane, oilseed, jute, millet, potatoes. Cultivated land—25%.

*Industry (10% of GDP): Types--carpets, pashmina, garments, cement, cigarettes, bricks, sugar, soap, matches, jute, hydroelectric power.

*Industry (10% of GDP): Types—carpets, pashmina, garments, cement, cigarettes, bricks, sugar, soap, matches, jute, hydroelectric power.

*Trade (2005/2006): Exports--$834 million: carpets, pashmina, garments. Major markets--Germany and the U.S. Imports--$2.2 billion: manufactured goods. Major supplier--India.

*Trade (2005/2006): Exports--$834 million: carpets, pashmina, garments. Major markets—Germany and the U.S. Imports--$2.2 billion: manufactured goods. Major supplier—India.

*Central government budget (FY 2006/2007): $1.9 billion; military allocation $139 million.

*Central government budget (FY 2006/2007): $1.9 billion; military allocation $139 million.

*Official exchange rate (as of July 16, 2006): 74.10 Nepalese rupees=U.S. $1.00.

*Official exchange rate (as of July 16, 2006): 74.10 Nepalese rupees=U.S. $1.00.

Declaring parliamentary democracy a failure eighteen months later, King Mahendra dismissed the Koirala government and promulgated a new constitution on December 16, 1962. The new constitution established a "partyless" system of panchayats (councils), which King Mahendra claimed was a democratic form of government closer to Nepalese traditions. As a hierarchical structure progressing from village assemblies to a Rastriya Panchayat (National Parliament), the Panchayat system enshrined the absolute power of the monarchy and kept the King as head of state with sole authority over all governmental institutions, including the Cabinet (Council of Ministers) and the Parliament.  

Declaring parliamentary democracy a failure eighteen months later, King Mahendra dismissed the Koirala government and promulgated a new constitution on December 16, 1962. The new constitution established a "partyless" system of panchayats (councils), which King Mahendra claimed was a democratic form of government closer to Nepalese traditions. As a hierarchical structure progressing from village assemblies to a Rastriya Panchayat (National Parliament), the Panchayat system enshrined the absolute power of the monarchy and kept the King as head of state with sole authority over all governmental institutions, including the Cabinet (Council of Ministers) and the Parliament.  

King Mahendra was succeeded by his 27-year-old son, King Birendra, in 1972. Amid student demonstrations and anti-regime activities in 1979, King Birendra called for a national referendum to decide the nature of Nepal's government--either the continuation of the Panchayat system with democratic reforms or the establishment of a multiparty system. The referendum was held in May 1980, and the Panchayat system won a narrow victory. The King carried out the promised reforms, including selection of the prime minister by the Rastriya Panchayat.  

King Mahendra was succeeded by his 27-year-old son, King Birendra, in 1972. Amid student demonstrations and anti-regime activities in 1979, King Birendra called for a national referendum to decide the nature of Nepal's government—either the continuation of the Panchayat system with democratic reforms or the establishment of a multiparty system. The referendum was held in May 1980, and the Panchayat system won a narrow victory. The King carried out the promised reforms, including selection of the prime minister by the Rastriya Panchayat.  

====Movement to Restore Democracy====

====Movement to Restore Democracy====