Rural poverty in Nepal
Despite some progress in poverty reduction in recent years, Nepal remains one of the world’s poorest nations, with a Human Development Index of 0.458 placing it 157th out of 187 countries. 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. Notwithstanding declining rates of urban poverty, the problem remains widespread, with indicators suggesting a rise in rural poverty.
About 80 per cent of Nepal’s people 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, where 48 per cent of children under 5 years of age are malnourished. Most rural households have little or no access to basic social services such as primary health care, education, safe water and sanitation services.
Rural poor people generally have large families, are landless or have very small landholdings, have high rates of illiteracy and are concentrated in specific ethnic, caste and minority groups – particularly those of the lowest caste (dalits) and indigenous peoples (janajatis). Population density is variable according to altitude, surpassing 1,000 persons per square km in the low Terai region, about 300 persons per square km in the hilly regions (1,000 to 3,000 metres in altitude), and as low as 30 persons per square km in the mountains (above 3,000 metres).
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.
The rural poor population in Nepal includes:
- Destitute people, such as the sick or disabled, abandoned children and displaced persons
- Extremely poor people, including illiterate or landless individuals 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 falling back 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 have contributed to political unrest and violence in Nepal. A Maoist rebellion, which 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, the government and the Maoists signed a comprehensive peace accord. In addition to provisions for disarmament and the end of hostilities, it included clauses on the country’s transformation to a multi-party democratic republic, and on respect for human, social and economic rights. A re-instated parliament abolished the monarchy, formed an interim government led by the former Maoist rebels and provided an interim constitution for the nation.
A Constituent Assembly convened in May 2008 to draft a new permanent constitution, declaring Nepal to be a secular and inclusive democracy, and the country entered into the era of “the 3 ‘R’s” – reconciliation, rehabilitation and reconstruction. In May 2010, the deadline for drafting the constitution was extended. In November 2011, a formal agreement began the process of reintegrating the former Maoist combatants. The Constituent Assembly is scheduled to complete the constitutional and governmental formation process during 2012.
Why are Nepal's rural people poor?
Land ownership in Nepal has traditionally been concentrated in a feudal system under the monarchy. For most poor rural families, access to land is extremely limited. Almost 70 per cent of households have holdings of less than 1 hectare, 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.
Various factors contribute to chronic poverty in Nepal's steep and mountainous areas. The rugged terrain is difficult for promoting economic activity and delivering services. These areas are also physically isolated, with poor communications and infrastructure, and they are ecologically fragile. Population pressure has led to unsustainable use of natural resources, including overgrazing and deforestation. Erosion in the uplands causes flooding in the lowlands that can be devastating to crop yields.
Nepal is prone to frequent earthquakes, as well as severe thunderstorms, flooding, landslides and glacial melting, whose severity is compounded by the effects of climate change.
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, dalits (lower castes), indigenous peoples and women. Discrimination on the grounds of caste has officially been illegal in Nepal since 1962 but is still widespread, especially in rural areas. Members of the lowest caste are the most disadvantaged group. Many 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 than boys, 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 has led to chronic malnutrition of the infants they feed.
At the same time, lack of economic opportunity and the recent conflict resulted in many of the most productive members of households to migrate and leave the villages, and Nepal is now one of the highest recipients of remittances in the world – 310 billion Nepalese Rupee in 2010.
Despite this high level, most remittances (78.9 per cent) are used in daily consumption, followed by loan repayment. Only 2.9 per cent of all remittances are used for capital formation. 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, perpetuating the cycle of poverty into the next generation. An estimated one quarter of 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 25 per cent, this figure increases to 45 per cent in the Mid-Western and 46 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. 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.
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