The history of Nepal began in, and centres on, the Kathmandu Valley. About 200 AD a people called the Lichavis took power in Nepal. Under them Nepal flourished and great temples both Hindu and Buddhist were built. However the Lichavis eventually declined and a new era began in 879 AD. They were replaced by a series of kings called the Thakuris. From the 12th century a series of kings whose surnames ended in Malla reigned in Nepal. In the 14th century one of them, Jayasthiti Malla introduced the caste system into Nepal.Over the centuries Nepal's boundaries have extended to include huge tracts of neighbouring India, and contracted to little more than the Kathmandu Valley and a handful of nearby city-states. Though it has ancient roots, the modern state of Nepal emerged only in the 18th century. Squeezed between the Tibetan plateau and the plains of the subcontinent - the modern-day giants of China and India - Nepal has long prospered from its location as a resting place for traders, travellers and pilgrims. A cultural mixing pot, it has bridged cultures and absorbed elements of its neighbours, yet retained a unique character.
