Nepal

Despite the ceasefire, public security and rule of law are tenuous, especially in the Terai, and increasing numbers of armed groups are expected to continue to pursue political gain through low-level, but sustained, violence. There are daily electricity cuts lasting up to 12 hours and deteriorating labour relations. The unrest in the Terai disrupts the movement of goods. With weak institutions and widespread impunity, growing lawlessness remains a threat in the country.

Food insecurity in Nepal is widespread, and has resulted in some of the worst nutrition statistics in the world. More than 40% of the population of 28 million is undernourished, and 50% of children under the age of five are chronically malnourished, according to the UN. The number of people facing hunger continues to rise, due to drought, flooding, ongoing civil and political tensions, and susceptibility to earthquakes and landslides. Some 3.4 million people currently require urgent food assistance.

Nepal remains one of the poorest countries in the world, with over a quarter of Nepalese falling below the international poverty line of $1.25 per day. Sexual and gender based violence is a significant problem which is reflected in the fact that Nepal is one of the few countries in the world where women have a lower life expectancy than men.

After centuries of monarchy rule in Nepal, Maoist rebels began a ten-year armed insurrection against the royal family and the Government of Nepal in 1996. The guerrilla war and efforts to counter it left at least 13,000 people dead and drove a further 100,000 from their homes.

In April 2006, King Gyanendra agreed to end direct rule and the rebels began talks aimed at ending the civil war. The Comprehensive Peace Agreement was signed in November 2006,and the Maoists emerged as the largest parliamentary party after Constituent Assembly elections in April 2008. The monarchy was abolished a month later, and a Maoist-dominated government took office in August.

But it was short-lived. The coalition collapsed in May 2009, and was replaced by another coalition which the Maoists did not participate in. The peace process remains largely stalled.

The Terai region (southern part of Nepal), which produces most of the country's agricultural output, continues to experience civil unrest, and there is a border dispute with India over land in between Nepal and Bangladesh. Nepal and Bhutan are also at odds over the repatriation of thousands of Bhutanese refugees of Nepali descent who fled violence in the 1990s.