Nepal lies between China and India in South Asia. The king of this constitutional monarchy traces his lineage to the ruler of Gorkha, who unified the area in the late 18th century. The present monarch, King Gyanendra, came to the throne in 2001 after the tragic murder of the previous king. Violent political protest in early 1990 opened the way to multiparty government. Since then, no single party has been able to form a majority, resulting in a number of incompatible coalitions. The king postponed elections in 2002 because Maoist insurgents controlled nearly half of Nepal—mostly the poorer western region. This political instability has not fostered economic reforms, and Nepal remains one of the world's poorest countries.

Most Nepalese live in the central, hilly region, which embraces the Kathmandu Valley, and in the southern plain known as the Terai. The cutting of trees for fuel—increased by demands of a booming tourist industry—causes erosion. Rivers that spring from the Himalaya generate electricity for local use and potentially for export. Nepal possesses the greatest altitude variation on the Earth, from the lowlands near sea level to Mount Everest at 8,850 meters (29,035 feet). Everest, named after British surveyor Sir George Everest, is known as Chomolungma by the local Sherpas, meaning "Goddess Mother of the World"—related to this is the Chinese name Qomolangma. The Nepali word for Everest, Sagarmatha, is often translated as "Forehead of the Sky." Sherpas benefit from the mountaineering boom and tourism in the Everest region, owning much of the lodging and transportation. They teach visitors about Sherpa culture and Buddhism's love of the land.