Nepal is a landlocked country in South Asia and bordered by China and India. It is located in the Himalayas and contains eight of the world’s ten highest peaks. The government system is a federal democratic republic. The chief of state is the President and the head of government is the Prime Minister. Nepal has a traditional economic system in which the majority of the population engages in subsistence agriculture and the allocation of available resources is made on the basis of primitive methods. Nepal is a member of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and the South Asian Association of Regional Cooperation (SAARC).