Effects of Poverty

Effects of Poverty in Nepal

·        Economic Inequality and Underdevelopment

Poverty in Nepal exacerbates economic inequality, particularly in rural areas, where most of the population depends on subsistence agriculture. Lack of access to education and capital limits opportunities for skill development, leading to high rates of unemployment and underemployment. This creates a cycle where poverty is passed down from one generation to the next​. Furthermore, limited access to economic resources hampers small businesses and local markets, reducing overall economic growth and delaying development

·        Health and Well-being

Poverty is a major driver of poor health outcomes in Nepal. Limited access to healthcare services, especially in rural and remote areas, means that many individuals cannot afford necessary medical treatment or preventative care. Malnutrition, which is prevalent in impoverished communities, exacerbates vulnerability to diseases, including those caused by poor sanitation and contaminated water​. Maternal and child health is particularly affected, as poverty restricts access to quality prenatal and postnatal care​.

·        Education and Human Capital Development

The lack of access to education is another profound effect of poverty. Families living in poverty often prioritize immediate survival over long-term investments like education, resulting in high dropout rates, particularly for girls and marginalized groups. This perpetuates low literacy rates and limits opportunities for social mobility​. Without education, individuals remain trapped in low-wage, low-skill employment, perpetuating the cycle of poverty.

·        Social Exclusion and Inequality

Poverty in Nepal is closely linked to social exclusion, especially among marginalized communities, including Dalits, indigenous people, and women. These groups often face discrimination that further limits their access to opportunities and resources. This exclusion fosters inequality, which can lead to social unrest and division.

·        Migration and Labor Exploitation

Poverty has also led to significant labor migration, with many Nepalis seeking work abroad. While remittances are a vital source of income, the migration process often exposes individuals to exploitative conditions, especially in the Gulf countries and Malaysia. The loss of human capital and the vulnerability of migrant workers highlight the negative impacts of poverty on social structures​.

Poverty: Definition and Causes