TU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF,
IMO, Interpol, IOC, IOM (observer), ISO (correspondent), ITU, MONUC,
NAM, OPCW, SAARC, UN, UNAMSIL, UNCTAD, UNESCO, UNFICYP, UNIDO, UNIFIL,
UNMEE, UNMIBH, UNMIK, UNMOP, UNMOT, UNTAET, UPU, WFTU, WHO, WIPO, WMO,
WToO, WTrO (observer)

Diplomatic representation in the US: chief of mission:
Ambassador-designate Jai Pratap RANA chancery: 2131
New York FAX:
Diplomatic representation from the US: chief of mission: Ambassador
Michael E. MALINOWSKI (since December 2001) embassy: Panipokhari,
Kathmandu mailing address: use embassy street address telephone: [977]
(1) 411179 FAX: [977] (1) 419963

Flag description: red with a blue border around the unique shape of two
overlapping right triangles; the smaller, upper triangle bears a white
stylized moon and the larger, lower triangle bears a white 12-pointed sun

Economy Nepal

Economy - overview: Nepal is among the poorest and least developed
countries in the world with nearly half of its population living below
the poverty line. Agriculture is the mainstay of the economy, providing
a livelihood for over 80% of the population and accounting for 41% of
GDP. Industrial activity mainly involves the processing of agricultural
produce including jute, sugarcane, tobacco, and grain. Textile and carpet
production, accounteing for about 80% of foreign exchange earnings in
recent years, contracted significantly in 2001 due to the overall slowdown
in the world economy and pressures by Maoist insurgents on factory
owners and workers. Security concerns in the wake of Maoist activity,
the June massacre of many members of the royal family, and the September
11 terrorist attacks in the US led to a decrease in tourism, another key
source of foreign exchange. Agricultural production is growing by about
5% on average as compared with annual population growth of 2.3%. Since
May 1991, the government has been moving forward with economic reforms,
particularly those that encourage trade and foreign investment, e.g.,
by reducing business licenses and registration requirements to simplify
investment procedures. The government has also been cutting expenditures
by reducing subsidies, privatizing state industries, and laying off
civil servants. More recently, however, political instability - five
different governments over the past few years - has hampered Kathmandu's
ability to forge consensus to implement key economic reforms. Nepal has
considerable scop