Poverty Reduction in Nepal: Issues, Findings and Approaches

Abstract

This report presents the poverty situation and recent trends in Nepal and outlines the responses of both the Government and the Asian Development Bank (ADB) to address poverty. The main findings of this report are that (i) there is widespread poverty with a 42% poverty incidence; (ii) large disparities exist across geographical regions, and between excluded and less excluded groups; and (iii) there has been no significant decline in poverty incidence from 1981 to 2001. ADB’s approach to poverty reduction in Nepal needs to have a dual focus—to reduce poverty incidence and to narrow income disparities. Based on the findings of this report and discussions at the High-Level Forum on Poverty held on 26 February 2001 in Kathmandu, seven sectors were identified where ADB’s poverty reduction efforts in Nepal could be more sharply focused: (i) agriculture and rural development; (ii) transport; (iii) energy; (iv) finance; (v) education; (vi) water supply, sanitation, and urban development; and (vii) environmental management.