Over the last two decades, Nepal has achieved significant milestones in its development. The population living below the national poverty line has almost halved from 1995 to 2010. The indices for primary school enrollment and maternal mortality rate also indicate dramatic improvements in the living standards of the Nepalese people.
Despite these gains, Nepal remains the poorest country in South Asia and ranks 157th out of 187 countries in the Human Development Index list for 2011. Nepal has received large amounts of international development aid and depends on the international support to deliver basic social services. The European Union has allocated half of its funding to Nepal to support educational reform in the country.
Despite some positive political changes since 2006, Nepal has recently experienced governance setbacks. Specifically, political parties could not reach a consensus on the adoption of a New Constitution which was scheduled for May 2012, resulting in the breakup of the Constituent Assembly. After decades of armed conflict and political unrest, Nepal has embarked on a new stage of peace-building and stability which the European Union supports.