CIAO DATE: 08/04

Nepal

Victoria Garcia

Center for Defense Information

January 2004

Background

In 1996, the leaders of the Communist Party of Nepal (CPN–Maoist) and its political wing, the Samyukta Jana Morcha (United People’s Front) withdrew from Nepal’s official multiparty democratic system and launched a “People’s War” that has led to continued violence throughout Nepal. The Maoists, modeled on Peru’s Shining Path guerrillas, aim to overthrow the government and set up a communist state. According to the U.S. State Department, this insurgent movement has been waged “through torture, killings, bombings, extortion, and intimidation against civilians and public officials.” An estimated 4,000 to 7,000 people have died because of the armed violence in Nepal, which has now spread to 74 of the country’s 75 districts.

In June 2001, after ten members of the royal family, including King Birendra, were massacred in a family dispute, the former King’s brother Gyanendra assumed power. In November 2001, Maoist insurgents broke a 4–month ceasefire with a series of violent attacks. King Gyanendra responded to the violence by declaring a nationwide state of emergency, which remained in effect until Aug. 28, 2002. After the expiration of the state of emergency, Parliament passed the “Terrorist and Destructive Activities Act” which allows Maoist suspects to be detained without charge for up to 60 days and to be held in preventive detention for up to 90 days. In May 2002, King Gyanendra dissolved Parliament and set mid–term elections for Nov. 13, 2002. However, in October 2002, the King dismissed the prime minister and his cabinet, postponed elections indefinitely, and asked all major political parties to nominate members to an interim Cabinet.

Through 2001, the government dealt with the insurgency as a law and order problem, using the police rather than the army in counterinsurgency operations. At the beginning of the state of emergency in November 2001, The Royal Nepal Army (RNA) assumed responsibility for internal security, alongside the paramilitary Armed Police Force (APF), which was established in August 2001. According to the 2002 State Department Human Rights Report, these forces have committed numerous serious human rights abuses and impunity is a problem as security forces were given the freedom to arrest and detain Maoist insurgents and sympathizers alike. Detainees were abused and tortured as a form of punishment or to acquire confessions. The disappearance of persons in custody was also common. Moreover, throughout the country, freedom of expression, religion and assembly were restricted as were Tibetan public celebrations. Other widespread human rights violations include violence and discrimination against women; the use of child labor; and trafficking in women and girls for prostitution.

U. S. Military Assistance Prior to Sept. 11, 2001

According to SIPRI and the UN Register of Conventional Arms, Nepal has not reported receiving any imports of conventional weapons in recent years. However, according to U.S. Government statistics, Nepal received approximately 2.57 million worth of U.S. arms deliveries although it was granted an estimated 7.8 million in licenses and agreements. Nepali armed forces are estimated at 46,000 and its military expenditure was approximately $51 million in 2001, 1 percent of Gross Domestic Product (GDP). Between 1990–2001, Nepal received a total of $2.3 million worth of arms deliveries, $1.3 million in Foreign Military Financing (FMF) and approximately $2 million in International Military Education and Training (IMET) funding.

U. S. Military Assistance Since Sept. 11, 2001

Since Sept. 11, 2001, the United States has significantly stepped up its military assistance to Nepal, due to rising concerns that the Kingdom may become a hotbed of terrorist activity. Emergency rule has failed to contain the insurgency and the Nepalese government is seeking to fight its war against the Maoists with foreign military assistance. In that vein, Nepal was given $12 million in FMF in Fiscal Year 2002 (FY 02), nearly 10 times the amount allocated for Nepal in the decade prior to Sept. 11, 2001. Also in FY 02 Nepal received nearly $400,000 in IMET, and $3 million in Economic Support Fund (ESF) financing. In FY 03, Nepal was appropriated $500,000 in IMET, $3 million in FMF and $6 million in ESF. For FY 04 Nepal has been promised $600,000 in IMET, $10 million in FMF and $6 million in ESF.

Case Study Profile

Country	Nepal
Government Type	Constitutional Monarchy
Infant Mortality Rate (per 1,000 live births–2001 estimate)	72
Total Armed Forces (2000 estimate)	46,000
Military Expenditure (U.S.$, millions)	$51.5 (FY 01)
Military Expenditure % GDP	1% (FY 01)
Imports/Conventional Arms Transfers (U.S. $, millions – 2001 estimate)	0
Human Rights Record 2002	poor, continued to committ numerous abuses

Nepal’s Submission to the United Nations Register of Conventional Arms
1993	0
1994	0
1995	0
1996	0
1997	0
1998	0
1999	0
2000	0
2001	0

Fiscal Year	IMET	FMF	FSA	ESF	Total
1990	$123,000	$0	$0	$0	$123,000
1991	$197,000	$0	$0	$0	$197,000
1992	$179,000	$0	$0	$0	$179,000
1993	$149,000	$0	$0	$0	$149,000
1994	$106,000	$0	$0	$0	$106,000
1995	$96,000	$0	$0	$0	$96,000
1996	$140,000	$0	$0	$0	$140,000
1997	$196,000	$0	$0	$0	$196,000
1998	$196,000	$800,000	$0	$0	$996,000
1999	$189,000	$500,000	$0	$0	$689,000
2000	$216,000	$0	$0	$0	$216,000
2001	$237,000	$0	$0	$0	$237,000
2002	$377,000	$2,000,000	$0	$0	$2,377,000
2002 ERF	$0	–	$0	$0	$0
2002 SUP	$0	$12,000,000	$0	$0	$12,000,000
2003 (request)	$500,000	$3,000,000	$0	$6,000,000	$9,500,000
2004 (request)	$600,000	$10,000,000	$0	$6,000,000	$16,600,000
Total	$5,501,000	$28,300,000	$0	$15,000,000	$46,801,000