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The views expressed in this blog are mine,it does not reflect the view of the institution where I work.

Tuesday, February 3, 2015

Poverty in Nepal

The term poverty is not only a material deprivation but also low achievements in education and health , vulnerabilities and exposure to risk, and lack of voice and empowerment. All these elements combine to restrict people's capability to escape poverty. Poverty is a complex multidimensional problem., it is not only a matter of statistics or number. It is a reflection of lack of dynamism in society and  human deprivation. Except hunger and malnutrition, several other aspects are used to explain poverty, such as deprivation in terms of clothing, shelter, basic social services including primary health care, sanitation, education etc., political powerlessness and socio-cultural marginalization.
In many developing countries, poverty persists due to three main reasons: slow economic growth, biased growth pattern concentrated on few sectors, and failure of government policies. A slow rate of growth has dual effect: low income or low employment opportunities and increases the rent-seeking behaviour of the politicians in favour of non-poor like businessmen, large farmers, bureaucrats, trade unions, and the security personnel. The incidence of poverty remains for long period if the pattern of growth is urban biased and there is no rural-urban economic linkage. In Nepal other additional factors are playing dominant role. 
Trends and Pattern of Poverty in Nepal: The CBS conducted comprehensive survey in the name of living standard survey in 1995/96, 2003/04 and 2009/10. This is sown in following table.
Year
Overall Nepal
Rural
Urban
1995/96
42
43
22
2003/04
31
35
10
2009/10
25
27
15

The table shows that the poverty declined from 42 to 25 percent. Poverty is higher in rural than in urban areas. While poverty exists in both rural and urban areas, it is well known that the problem in developing countries is predominantly of rural poverty. Agricultural laborers with irregular employment constitute the major part of the rural population.  
The Small Areas Estimates of Poverty 2011, published by CBS of Nepal, shows that there is wide range of differences in poverty distribution all over Nepal. Among others, we can observe following facts regarding poverty distribution in Nepal.
High economic activity is associated with low poverty. The lowest poverty districts in Nepal are Kaski and Ilam. Also poverty relatively low in Kathmandu, Bhaktapur, Chitwan, Jhapa, Shyanga, among others.
Rain fall, productivity and poverty are associated in Nepal. Rainfall in Nepal gradually decreases from eastern region to far western region. In an opposite trend, the poverty increases from eastern development region to western development region. There are some exceptional districts like Kaski, Kathmandu and Chitwan, these districts are tourist centres and high economic activity area. In the similar trend of rain fall, the land productivity also gradually decreases from eastern Nepal to far-western Nepal.
Geography is also a cause of poverty. The difficulty increases from Terai, Mountain and Hilly region. In the similar trend, the poverty increases from plain area to mountain area. The weak linkage with market and high cost of transportation increases cost of production. The high cost of production reduces the economic activities and increase poverty.