Poverty
Poverty remains a significant challenge in Nepal, affecting millions of people, particularly in rural and marginalized communities. Its causes are multifaceted, rooted in historical, economic, social, and geographical factors.
Definition
Poverty is the state of being unable to meet basic needs such as food, clothing, shelter, education, and healthcare, often due to a lack of financial resources, access to services, or opportunities. It is both a condition and a systemic issue, shaped by economic, social, and political factors.
The World Bank defines poverty as “The inability to attain a minimal standard of living, measured by income or consumption levels below a nationally or internationally defined poverty line.”
The United Nations views poverty as a multidimensional issue: “A denial of choices and opportunities, a violation of human dignity. It means a lack of basic capacity to participate effectively in society. It means not having enough to feed and clothe a family, not having a school or clinic to go to, not having the land on which to grow one’s food or a job to earn one’s living, and not having access to credit.”
Current Status of Poverty in Nepal and Far Western Province
Poverty in Nepal has been declining over the years, but progress has been uneven, especially in rural and remote areas. According to the latest data from 2024, 20.27% of Nepal’s population lives below the poverty line, which is defined as having an annual per capita consumption below NPR 72,908. This represents an improvement from the 25.16% reported in 2011. However, significant disparities persist between urban and rural regions, with rural poverty rates at 24.66%, compared to 18.34% in urban areas.
In the Far-Western Province (Sudurpaschim), the situation is more critical. It has the highest provincial poverty rate at 34.16%. This reflects the compounded challenges of geographic remoteness, limited infrastructure, lack of diverse livelihood opportunities, and frequent natural disasters such as floods and landslides. Additionally, issues like gender inequality and climate change impacts exacerbate vulnerabilities in this region.
Causes of Poverty in Nepal
· Geographic and Environmental Factors
Nepal’s geography and environmental conditions are significant contributors to poverty, particularly in rural and remote areas. The mountainous terrain, which dominates much of the country, restricts access to essential infrastructure, markets, and basic services like healthcare and education. Regions like Sudurpaschim and Karnali provinces face significant logistical challenges, isolating communities from economic opportunities. Additionally, Nepal is highly vulnerable to natural disasters, such as earthquakes, floods, and landslides, which regularly disrupt livelihoods and damage infrastructure, particularly in agriculture-dependent communities. The impacts of climate change, including erratic rainfall and glacial melt, further exacerbate agricultural instability, increasing the vulnerability of already impoverished populations
· Economic Factors
Economic factors are a major driver of poverty in Nepal, characterized by limited industrialization and an over-reliance on subsistence farming. Agriculture employs over 60% of the population but remains underdeveloped, with low productivity due to a lack of modern technology, irrigation, and market access. The economy also suffers from a lack of diversification, with few industries capable of generating sustainable employment opportunities. Furthermore, many Nepalis are forced to migrate abroad for work, relying heavily on remittances, which contribute significantly to GDP but do not address the structural challenges of domestic unemployment. These economic vulnerabilities perpetuate income inequalities and hinder long-term poverty alleviation
· Social Inequalities
Social inequalities are a significant cause of poverty in Nepal, particularly the entrenched discrimination based on caste, ethnicity, and gender. Marginalized communities, such as Dalits, indigenous groups, and women, face systemic barriers to education, healthcare, and economic opportunities. These groups often live in rural or remote areas, where access to resources and services is already limited. . Gender inequality further exacerbates poverty, as women, particularly in rural areas, have limited property rights, lower levels of education, and restricted participation in decision-making processes. These intersecting forms of discrimination contribute to cycles of poverty that are difficult to break without inclusive and targeted interventions.
· Political and Institutional Challenges
Political and institutional challenges significantly hinder poverty alleviation efforts in Nepal. Years of political instability, frequent changes in government, and weak governance have led to inefficient implementation of policies aimed at reducing poverty. Corruption, bureaucratic inefficiencies, and a lack of accountability often delay or derail development programs intended to support marginalized communities. Additionally, the absence of strong and consistent institutions means that resources are not effectively distributed, and the country struggles to address long-term structural issues such as inequality and inadequate infrastructure. These challenges create a cycle of underdevelopment that perpetuates poverty, particularly in rural and remote areas.
· Lack of Access to Basic Services
Lack of access to basic services is a critical factor perpetuating poverty in Nepal. In rural and remote areas, where poverty is most prevalent, many communities struggle with limited access to quality education, healthcare, and clean drinking water. The country’s infrastructure is underdeveloped, especially in mountainous regions, making it difficult for residents to reach schools, hospitals, or government services. This lack of access to education hinders the development of human capital, leaving many trapped in low-paying, unskilled labor jobs. Similarly, inadequate healthcare systems lead to poor health outcomes, preventing individuals from working or attending school, which exacerbates economic vulnerability. These gaps in essential services contribute to cycles of poverty that are difficult to break without substantial investment in rural infrastructure and social services.
· Historical Land Inequality
Historical land inequality has been a major factor in the persistence of poverty in Nepal. For centuries, land ownership has been concentrated in the hands of a few elites, leaving a large portion of the population, particularly landless peasants and marginalized communities like Dalits and indigenous groups, with little to no access to productive land. This disparity has perpetuated cycles of poverty, as landless individuals were often forced into exploitative labor systems such as Kamaiya and Haliya (bonded labor), where they worked under severe economic and social constraints. Despite efforts to redistribute land and implement land reform policies, these issues remain deeply embedded in Nepal’s social and economic structure, hindering equitable development. The historical concentration of land ownership has limited access to wealth generation for many, reinforcing structural inequalities that contribute to ongoing poverty.