Nepal

Last updated in March 2012

Political relations

Bilateral relations are close and amicable. In the fifty years since diplomatic relations were established in 1958, a wide-ranging network of ties has been built, also encompassing civil society. The centrepiece of relations is dialogue with the host government and other representatives of public life in Nepal, with Germany actively supporting the peace and democratization process in Nepal. Other major elements of relations are development cooperation and bilateral trade as well as cultural, academic and scientific exchange.

Since the end of the civil war, high-level visits in both directions have become more frequent.  For the Nepalese side, former Foreign Minister Yadav visited Germany in March 2009. His programme included talks with then Minister of State at the Federal Foreign Office Gloser. Visits by other Nepalese government ministers to attend major trade fairs (International Tourism Exchange, International Green Week) are also on the increase.

Members of the German Bundestag travelled to Nepal again for the first time in 2011. Most recently, in early 2012, Parliamentary State Secretary at the Federal Ministry for Economic Cooperation and Development (BMZ) and Bundestag Member Gudrun Kopp was in Nepal.

Economic relations

Germany is one of Nepal’s principal markets, particularly for carpets and textile products. Nepal’s main imports from Germany are machinery and industrial products. The traditional bilateral trade surplus in Nepal’s favour is a free-market contribution to the country’s development.

An investment protection agreement has been in place since October 1986. Founded in 1990, the German-Nepalese Chamber of Industry and Commerce in Kathmandu promotes bilateral trade relations. Until the end of 2011, its work was supported by an expert seconded by Germany.

Development cooperation

Nepal is an important partner country of German development cooperation. The three priority sectors geared to poverty reduction are renewable energy (solar and hydroelectric power and biogas), promoting local development and civil society, and health care. Germany has recently begun coordinating international support for implementing Nepal’s strategy to promote foreign trade. In addition, Germany supports the peace process in Nepal through advisory activities and its participation in the Nepal Peace Trust Fund. Another important element of German assistance are concrete vocational training and further-education measures for former Maoist rebels with a view to reintegrating them into society.

Germany’s principal implementing agencies of government development cooperation – the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the KfW Development Bank – have their own staff working in Nepal. There are also more than 120 private initiatives and associations from Germany supporting projects and programmes in Nepal, in some cases with public funding.

Beyond its bilateral commitment, Germany also makes a substantial contribution to international organizations’ (in particular the EU’s) development assistance for Nepal through membership fees and other financial payments.

In addition, the Federal Foreign Office supports peace-building and conflict prevention projects, including further training for judges and public prosecutors as part of efforts to promote the rule of law.

The Friedrich Ebert Foundation has its own office in Kathmandu. Other political foundations work together with Nepalese partners under their regional programmes for South Asia.

Cultural exchange

A cultural agreement was signed between Nepal and Germany in 1992. Over the past 30 years, the Federal Foreign Office’s Cultural Preservation Programme has funded numerous projects to restore sites of cultural or religious significance in Nepal, including projects in the former royal cities of Patan and Bhaktapur in the Kathmandu Valley. German archaeologists are also doing important research work through their excavations.

Following the closure of the Goethe Institute in Kathmandu, the Kathmandu Goethe Centre was set up in 1997. The German language courses offered by the Goethe Centre are enjoying growing popularity among young Nepalese, who are increasingly interested in studying in Germany. German has been taught for many years at Tribhuvan University in Kathmandu and, since April 2009, as a second foreign language from 6th grade upwards at two schools under the ‘Schools: Partners for the Future’ initiative. There are currently a total of more than 1,000 young Nepalese learning German.

Though fairly rare, guest performances by German music ensembles in Kathmandu – most recently that by the Stuttgart Chamber Orchestra in January 2010 – are enthusiastically received.

German broadcaster Deutsche Welle cooperates with several Nepalese radio and television stations and Nepalese journalists are regularly invited to attend information programmes in Germany.

Scientific and academic exchange

Nepal is also a priority country of the German Research Foundation (DFG), with more than 40 research projects having been funded so far. The German Academic Exchange Service (DAAD) regularly awards scholarships, particularly in postgraduate programmes of special relevance to developing countries. Also active in Nepal is Heidelberg University’s South Asia Institute with its own local office, the Nepal Research Center, which has since completed a major project to microfilm Tibetan and Newari documents.

In addition, there are several alumni organizations and associations of Nepalese scholarship holders as well as a number of very active friendship societies in Kathmandu and Germany, in particular the German Nepal Friendship Association in Cologne.