Post on 17-Dec-2015
POVERTY IN NEPAL: CHARACTERISTICS AND
CHALLENGES
Trilochan Pokharel, NASC, tpokharel@nasc.org.np
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Objectives
explain the concept of poverty examine the characteristics of poverty describe the poverty reduction strategy in
Nepal discuss policy gaps
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Session content
Understanding poverty Characteristics of poverty Poverty reduction strategy in Nepal Policy gaps
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Story about poverty
The poor die in hospital wards that lack drugs, in villages that lack antimalarial bed nets, in houses that lack safe drinking water. They die namelessly, without public comment. Sadly, such stories rarely get written. Most people are unaware of the daily struggles for survival, and of the vast numbers of impoverished people around the world who lose that struggle.
Jeffery D. Sachs, 2004, The End of Poverty
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Story…
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1 million death Period 1973-1977 Cause – famine
Lack of entitlementsAmartya Sen, 1981, Poverty and Famines: An Essay on Entitlement and Deprivation.
Why people die in famine? – Amartya Sen
Bangladesh
Famine
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What is (not) poverty?
Poverty is not natural and static. It is manifestation of human activities. It
goes over the life course and across the generation.
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What...
Poverty is not lack of particular item. It is a multifaceted construct.
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Which line we travel? PROTECTIVECapabilities,
enabling people to with stand
•economic shocks•natural disasters•conflicts
ECONOMICCapabilities to•earn income•consume•have assets
POLITICALCapabilities including•human rights •voice•political freedom•participation
HUMANCapabilities based on
•health•education•nutrition•shelter
SOCIO-CULTURALCapabilities concerning•dignity•valued membership society•social status
GENDER
GOVERNANCE
Source: www.poverty-wellbeing.net
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Different people... different arguments
Poverty is not explained by single domain study.
It requires cross-disciplinary research. Because they cannot afford....
Because they are exploited....
Because there is social inequality ....
Because state is unable to reach to people ....
Because there are too many to feed ....
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Is this the difference?
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Understanding poverty
If poverty were deprivation, the questions are: Yet deprivation of WHAT? By how much? Over what time period? Whose? A country, region, village,
family individual.
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Understanding poverty
Money metric (conventional approach) World Bank's $1 ($1.25 since 2005) and $2
concept NLSS 's poverty line
Capability approach (Human Development- Amartya Sen)
Social exclusion approach Participatory approaches (Robert
Chambers)
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Convergence in poverty measurement (Nepal)
1996 2003 20100
1020304050607080
Poverty headcount ratio at $1.25 a day (PPP) (% of popu-lation)National Poverty Line ($0.6 a day)
Source: World Bank, 2013
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But…
1996 2003 20100
10
20
30
40
50
60
70
80
90
100
Poverty headcount ratio at $1.25 a day (PPP) (% of population)National Poverty Line ($0.6 a day)Poverty headcount ratio at $2 a day (PPP) (% of population)Source: World Bank, 2013
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Poverty measurement in Nepal (2010/11)...
Food - NRs. 11,929 Non food - NRs. 7,332 Total- NRs. 19,261 Average calorie required - 2,220 cl
Source: CBS, 2011
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% pop below poverty line
1995-96 2003-04 2010-110
5
10
15
20
25
30
35
40
45
50
42
31
25.1622
10
15.46
43
35
27.43 NepalUrbanRural
Source: CBS, 2011
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Progress made so far...
Source: CBS, 2011
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Gini coefficient
1992/93 2003/04 2010/110.2
0.3
0.4
0.5
0.34
0.41
0.330000000000002
Source: CBS, 2011
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Share of Income (%)
Fifth (Richest)
20%
Fourth 20% Third 20% Second 20%
Lowest (Poorest)
20%
0
10
20
30
40
50
60
1996 2003 2010Source: World Bank, 2013
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Per capita consumption deciles (in NRs.)
1995/96 2003/04 2010/11 0
20000
40000
60000
80000
100000
120000
All Nepal Poorest (First) Fifth Richest (Tenth)
Source: CBS, 2011
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% of hh receiving remittance
1995/96 2003/04 2010/11 0
10
20
30
40
50
60
23.4
31.9
55.8
Source: CBS, 2011
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% of GDPCountry name
2009 2010 2011 2012
Tajikistan 35.1(47.2) 40.9 46.9 47.5
Kyrgyz Republic
20.9 26.4 27.6 30.8 (38.0)
Nepal 23.1 21.7 (25.2) 22.4 25.0
Moldova 22 (26.3) 23.3 22.8 24.5
Lesotho 32.1 28 26.1 23.8
Samoa 23.8 21.3 22 23.2
Bermuda 23.2 22 22.6 21.8
Armenia 8.8 10.7 19.7 21.3 (32.4)
Haiti 20.9 22.3 20.6 20.4 (58.7)
Source: World Bank, 2013
Figures in parenthesis are percentage of population below national poverty line in respective year.
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Live example
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Utilization of remittances
Daily Consump-tion ; 78.9
Repay loans ; 7.1
Household Property ; 4.5
Education ; 3.5 Capital Formation ; 2.4
Source: CBS, 2011
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Distribution of HPI (NHDR 2014)
Source: NPC, 2014
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HPI in 2006
Source: UNDP 2009
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There has been improvement
Source: NPC, 2014
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Poverty reduction strategies
Ninth Plan (1997-2002) poverty alleviation as its main objective and
interlinked with development sectors reduced poverty from 42.0 (1996) to 30.8 (2003)
Tenth Plan (2002-2007) poverty alleviation by mobilizing the means and
resources, through the mutual participation of the government, local agencies, NGOs, private sector and civil society, to extend economic opportunities and open new environment that enlarge employment opportunities
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Poverty reduction strategy paper (PRSP)
Four pillars of Tenth Plan/ PRSP High, sustainable, broad based economic
growth Social sector development including human
development Targeted programme including social
inclusion Good governance
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Three Year Plan (2013/14-2015/16)
Objective
Reduce population below poverty line to 18 percent
Strategies
1. Increase productive employment and opportunities2. Emphasize on capacity development, productivity,
distributive justice and equitable development3. Coordinate poverty reduction programmes
organized by different sectors and organizations4. Implement demand based targeted programme
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Big questions
What have made contributions to poverty reduction? Government policy interventions? Labour migration? Anything other?
Reaching the bottom of pyramid? Decomposed analysis? Targeting the targets?
A Story of Poverty
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The missing links 33
Who?Where?
How many?Why? What
would happen?
Who connects? How long will it take? What can
we do?
What cost?
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Policy gaps
Contradiction in politics and development agenda Development politics Politics on development
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Policy…
Poverty reduction and employment Mainstreaming poverty reduction
programmes Poverty as a cross-cutting issue Effectiveness of poverty reduction policies Utilization of fragmented money
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Opportunities...
Level of people's awareness Demographic, gender and peace dividend National and international commitment for
inclusive development Social capital Remittances
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The focus areas…
Pro-poor and inclusive growth Investing in human capital (health, education,
food security etc) Investing in physical capital (water, sanitation,
rural roads, electricity, rural development etc) Redefining investment- nutrition, health,
education Reducing social inequality Good governance Rights-based approach to development
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Establishing the links
Improving state
interventions
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References
National Planning Commission, 2002, The Tenth Five Year Plan 2002-2007, Kathmandu: National Planning Commission.
National Planning Commission, 2003, The Tenth Plan: Poverty Reduction Strategy Paper 2002-2007, Kathmandu: National Planning Commission.
National Planning Commission, 2007, Three Year Interim Plan 2006/07-2009/10, Kathmandu: National Planning Commission.
National Planning Commission, 2011, Three Year Plan 2010/11 -2012/13: Approach Paper, Kathmandu: National Planning Commission.
National Planning Commission, 2011, Millennium Development Goals: Needs Assessment for Nepal 2010, Kathmandu: National Planning Commission.
National Planning Commission, 2013, The Thirteenth Plan Approach Paper, Kathmandu: National Planning Commission.
Central Bureau of Statistics, 2011, Nepal Living Standard Survey-III: Press Release, Kathmandu: Central Bureau of Statistics.
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Contd...
Polak, Paul, 2008, Out of Poverty: What Works when Traditional Approaches Fail, San Francisco: Berrett-Koehler Publishers, Inc.
The World Bank, 2000, Poverty Reduction in the 1990s: An Evaluation of Strategy and Performance, Washington D. C.: IBRD.
United Nations Development Programme, 2010, Human Development Report 2010, New York: UNDP.
Sachs, Jeffrey D, 2005, The End of Poverty: Economics Possibilities of Our Time, New York: The Penguin Press.
The World Bank, 2003, Poverty in Guatemala, Washington DC: The World Bank.
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Thank you for your patience