Due to its proximity to Tibet and the arid mountainous terrain that surrounds and protects Upper Mustang the religion, culture and language have remained almost entirely Tibetan. Whilst this isolation had the positive effect of allowing ancient Tibetan practices to continue in a pure and untouched form, it has also meant that the people of Upper Mustang did not have access to the education and economic benefits available in other parts of Nepal . Upper Mustang has not been affected by political problems due to its political and geographic isolation.
Most villages in Mustang can only be reached on foot. A gravel road reaches Upper Mustang from Tibet. From the south it takes 5 days on foot to reach the capital Lo-Manthang from Jomsom where the nearest small airport is. Everything imported to Upper Mustang has to be portaged by people or horses.

Mustang is very poor. Most people live from subsistence farming in summer and from trade during the winter months. Most of the country is a high mountainous desert with little vegetation. The existing fields are irrigated through man-made channels allowing only one crop per year. Once the fields have been harvest in the fall, almost the entire population moves south to escape the harsh winter months with the accompanying shortage of food. Only the elderly remain behind to look after homesteads and animals. The younger population travels to Pokhara, Kathmandu and India to earn money.

Mustang is part of Nepal. Efforts have been made by the Nepalese government to introduce elementary schooling. This education system stresses the Hindu language and ideology. The teachers speak Nepali and have been trained in Nepal. The inhabitants of Mustang, however, are Tibetan Buddhists. Education in Tibetan language and teaching of receive teaching in their own language and about their own culture under the Nepali educational system. Invariably this leads to a decline of cultural values in the region.