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Socio-economical situation of Nepal

The caste system
The caste system has its origin in Hinduism and consists of four castes: brahmans (priests), chhetris (warriors and landlords), vaisyas (traders and peasants) and sudras (craftsmen and agricultural workers). The brahmans are the upper class and are keepers and interpreters of the Hindu concept of dharma. Many Brahmans hold high positions in politics, work at government offices or are moneychangers and/or landowners. However, not all contemporary brahmans are prosperous. Like many of their fellow countrymen, the Nepalese brahmans are often simply farmers.
The chcetris are one step down from the brahmans. Their duties are to govern and defend the country. The royal family of Nepal also belongs to this caste. Many chhetris are employed in Nepalese commerce. The two highest castes dominate nearly all important political institutions in the country.
The vaisyas work as merchants or as farmers on the lands.
The sudras are considered to be the bottom layer of Nepalese society and nearly always have servant-class professions, like tailors, blacksmiths and musicians. Impure professions like butchers and street cleaners also fall into this caste. Because if their background and customs, the ethnic groups (described in more detail below) are not really Hindus, but officially are included in the caste system. They form an important part of society and belong to the middle caste. In Hindu society white people are considered as 'casteless' people. This is why certain restrictions may apply for foreigners (like for people from lower castes). For instance, they might not be allowed to enter the kitchen of Hindus from higher castes.
Hierarchy and status play an important role in Nepalese society. The caste system still forms an important pillar of social hierarchy, although officially it was abolished. When two Nepalese meet, it is common establish each other's social position, primarily by asking for names and birth-places. The surname indicates which caste someone belongs to. The caste largely forms someone's personal life, including profession and position in society. Based on the information provided, usually the way someone is addressed is adjusted, along with language and behaviour. Though the image given here certainly was applicable in the past and oppression was a common thing, things have been changing. Discrimination on account of someone's caste is not permitted and will be punished under Nepalese law.
However, nobody will fail to notice that the caste system still is a part of Nepalese society. The difference in educational levels between higher and lower castes, caused by the caste system, still exists. People from the lower caste simply did not get the chance to develop, which is why generally they are still poor and their lives are in a vicious circle.

Economical position
Nepal is one of the poorest countries in the world and is therefore a Third World country. The Nepalese economy is characterised by a very unequal distribution of wealth. The average annual income is €240 per capita, with a major difference between the countryside (€110) and Kathmandu (€514). More than half the population has to cope with only €1 per day. In addition to this unequal distribution between the countryside and the city, there is also an enormous gap between the rich and the poor. Half of the national income is earned by approximately 13% of the population. This explains why the majority of all Nepalese can hardly afford a bus ticket, whereas the ministers get to drive around in the latest cars.
80% of the Nepalese population is active in the agricultural sector. Rice, corn, wheat, millet and vegetables are the most important crops. Being a farmer is tough. The land (in the hills and mountains as well) is still being cultivated the old-fashioned way: manually or with an ox or a buffalo. Families in the countryside often also have some goats, a buffalo or a cow to provide them with milk, yoghurt and cow dung (for their rituals and as a fuel). Most people eat vegetarian food, partly because meat is very expensive. Due to their simple way of living, they only need money to buy products like salt, spices, clothes and kitchenware. In the remote areas of Nepal, there is often only one landlord per region. The other villagers work on his lands for wages. Modernisation is badly needed in the agricultural sector, which is characterised by low productivity. However, illiteracy among farmers is high and they have hardly any knowledge of new agricultural methods. The isolated location and lack of infrastructure in mountainous regions impede with new developments and make it impossible to use agricultural machines. Also, irrigation systems are limited, which means that the mountain farmers depend on the mercy of the weather gods. In reality this means long periods of draught, alternated with heavy rainfalls during the monsoon season.Apart from agriculture, industry is the most important sector in Nepal. Everywhere in the country, you can find small-scale producers of alcohol, textiles, steel, bricks, pashminas, jewellery and foodstuffs. Only a small percentage of the population works in the services sector. Tourism, which falls into this sector, hugely contributes to the economy. Due to the political instability and increased activities of the Maoists, the number of tourists visiting Nepal has decreased enormously during the last year and a half.
Despite of fairly large amounts of money flowing into Nepal through tourism and development aid, the country's social and economical development hardly seems to improve. Organisations like the World Bank and the UNDP have made it clear that the real reason behind the poverty lies in bad politics, including corruption within the government. However, there seems to be no lack of well-meant but ineffective plans from foreign advisors; some people claim that Nepal is 'over-advised and underfed'.


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