Nepal: Background and U.S. Relations

Publication Date: July 2007

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

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Abstract:

A landlocked Himalayan kingdom between India and China, Nepal ranks among the world's poorest countries. In 1990, following a democratization movement, Nepal became a parliamentary democracy under a constitutional monarch. Although this led to a process of economic restructuring and market liberalization, political instability and years of increasingly dire internal security challenges have undercut the country's economic growth and reform efforts. Compounding the country's difficulties was the June 2001 tragedy in which ten members of the royal family, including King Birendra, were killed in an assassination-suicide, reportedly carried out by Crown Prince Dipendra. The murdered king's younger brother, Gyanendra, now occupies the throne. In a reversal of the longer-term trend towards a democratic constitutional monarchy, King Gyanendra declared a state of emergency, assumed full powers, suspended civil liberties, and placed opposition leaders under arrest on February 1, 2005. The King explained his move as necessary to fight the Maoist insurgency. Human rights advocates continue to be concerned about the human rights situation in Nepal. U.S. foreign policy toward Nepal has provided development and security assistance while seeking to promote democracy and human rights.

Prior to the king's takeover, the Kathmandu government faced serious political opposition and increasing pressure to end a Maoist insurgency that since 1996 has caused widespread violence and crippled the Nepali economy. By January 2006, approximately 12,000 people were reportedly killed as a result of the conflict. The Nepali Maoist rebels' continuing violent campaign to overthrow the Kathmandu government has heightened concerns about the government's ability to effectively counter the insurgency. There exists fear that further deterioration of Nepal's security circumstances could lead to further human rights abuses, destabilize the region, spur new tensions between India and China, and potentially create a failed state in South Asia which could become a source of regional instability. The Maoists are listed as an "other terrorist group" by the State Department.

The king's takeover can be seen as the culmination of events beginning in late 2002 when the Nepali government faced a constitutional crises. In October 2002, amid dissatisfaction with the worsening security situation and the inability of the prime minister to hold parliamentary elections as scheduled, King Gyanendra dismissed the prime minister and the cabinet and assumed "temporary executive authority." One week later, the king chose royalist Lokendra Bahadur Chand to serve as prime minister. The king replaced Chand with Surya Bahadur Thapa over the objections of the main parties in June of 2003. Prime Minister Surya Bahadur Thapa ended his term as Prime Minister on May 7, 2004. He was replaced by the king's former Prime Minister Sher Bahadur Deuba. Former Prime Minister Deuba was placed under house arrest on February 1, 2005. In early 2006, human rights and prodemocracy advocates remained concerned with the king's continued suppression of democracy and increasingly oppressive rule. This report will be updated.