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Rural poverty in Nepal

Despite some progress in poverty reduction in recent years Nepal remains one of the poorest countries in the world. Poverty in Nepal is a deeply entrenched and complex phenomenon. Over 30 per cent of Nepalese live below the poverty line of US$12 per person/per month. Nothwithstanding declining rates of urban poverty, the problem remains widespread with indicators suggesting a rise in rural poverty.

About 80% of Nepal’s population live in rural areas and depend on subsistence farming for their livelihoods. Household food security and poor nutrition are still major concerns in rural areas. Most households have little or no access to basic social services such as primary health care, education, clean drinking water and sanitation services. Rural poor people generally have large families, are landless or have very small landholdings, with high rates of illiteracy and are also concentrated in specific ethnic, caste and minority groups, particularly those of the lowest caste (dalits) and indigenous peoples (janajatis). Small, fragmented subsistence farming is a characteristic of Nepalese agriculture, and the average landholding is only 0.8 hectares. Life is a constant struggle for survival. The most vulnerable and marginalized groups are the lowest social castes, indigenous peoples and women.

Rural poor people in Nepal include:

• destitute people, such as sick or disabled persons, abandoned children and displaced persons
• extremely poor people, including illiterate or landless persons or those with very few assets
• moderately poor people, such as those who have small farms but are often heavily indebted
• people who are ‘nearly poor', including small farmers who are at risk of slipping deeper into poverty as a result of factors such as conflict, debt and land degradation

Building Peace and Reconciliation

Poverty, lack of economic growth, and increasing marginalization contributed to political unrest and violence which originated in the highlands of Nepal. A Maoist rebellion that began in 1996 in the remote hill districts of the Mid-Western region later intensified and spread across large parts of the country. More than 14,000 Nepalese were killed in the conflict and about 600,000 have been internally displaced or made homeless. In addition, more than 2 million people are believed to have fled to India. Fighting occurred largely in rural areas, with agriculture particularly affected.

In November 2006, a comprehensive peace accord was signed between the Government and the Maoists which, apart form the provisions for disarmament and the end of hostilities, included clauses about the transformation of the country to a multi-party democratic republic as well as for respect of human, social and economic rights.  A re-instated parliament abolished the monarchy, formed an interim government led by the former Maoist rebels and provided a new interim constitution for the nation. A Constituent Assembly election in April 2008 and the country entered into the era of 3Rs (reconciliation, rehabilitation and reconstruction). Though the armed conflict has ended, peace and the political situation remain fragile.

Why are Nepal's rural people poor?

Land ownership in Nepal has traditionally been concentrated in the hands of a few. For most poor rural families access to land is extremely limited. Almost 70 per cent of households have holdings of less than 1 ha and many of them depend on plots that are too small to meet their subsistence requirements. Productivity levels remain low as a result of limited access to new farming technologies, inputs and extension services.
 
Because of poor growth in the agricultural sector, living standards in rural areas are deteriorating and poverty is increasing. The growing population has put huge pressure on cultivable land, especially in the Terai region, which also supports many landless migrants from the hills.
 
Many factors contribute to chronic poverty in Nepal's steep and mountainous areas. The rugged terrain makes it difficult for promoting economic activiy and delivering services . These areas are also physically isolated, with poor communications and infrastructure and are ecologically fragile. Increasing population pressure has led to unsustainable use of natural resources, including overgrazing and deforestation. And erosion in the uplands causes flooding in the lowlands that can be devastating to crop yields.

Who are Nepal's rural poor people?

Social discrimination plays a significant role in keeping the most disadvantaged people in rural Nepal poor and marginalized. Excluded groups include smallholder farmers, landless labourers, lower castes, indigenous peoples and women. Discrimination on the grounds of caste is officially illegal in Nepal but is in fact widespread, especially in rural areas. Members of the lowest caste (dalits, or untouchables) are the most disadvantaged group. Many lower caste dalits work as wage labourers for higher-caste farmers.
 
There is a wide gap between women and men when it comes to access to health, nutrition, education and participation in decision-making. Infant mortality is much higher for girls, and illiteracy is far more common among women than men. Many rural women live in severe poverty, without any means of improving conditions for themselves and their families. Within households women often have less to eat than men. Insufficient calorie intake can lead to chronic malnutrition in the infants they feed.
 
Lack of economic opportunity and the recent conflict resulted in many of the most productive members of households to migrate and leave the villages. As a result more and more women have been heading households alone and taking on the burden of sustaining the rural economy. Women constitute more than 60 per cent of the agricultural labour force but have little access to land, production technology and training.
 
Poor families are often obliged to send their children to work rather than to school. In this way the poverty cycle is perpetuated into the next generation. It is estimated that about one quarter of the children in Nepal are engaged in some kind of family or wage labour.

Where are Nepal's rural poor people?

The highest concentration of poor rural people is found in the Mid-Western and Far-Western regions. While the overall poverty rate for Nepal is 31 per cent, this figure increases to 45 per cent in the Mid-Western region and 41 per cent in the Far-Western region. In these remote hill and mountain zones the terrain is rugged, rainfall is low and the soil is poor and difficult to farm. Agricultural holdings per household are the smallest in the country, and access to health, education, roads, telephones, electricity, water supply and sanitation services is very limited. The conflict has exacerbated the extreme isolation of these regions.
 
The Terai plains area has good potential for food production but is increasingly overtaxed by the needs of a growing population. The number of landless and marginalized poor people is rising in the region.
 

Source: IFAD