Poverty In Nepal
Problems And Suggestions

By Gambhir Bahadur Hada

POVERTY is a complex multidimensional problem with origins in both the national and international domains. There is no simple or uniform answer to it. Rather, country specific programmes to tackle poverty, as well as the parallel process of creating a supportive international environment are crucial to solve this problem. Poverty has traditionally been measured in terms of the income or expenditure-level that can sustain a minimum standard of living.

Poverty is not a ‘given’ rather it is a blight on humanity. Its existence jeopardizes that most basic of human rights—the right to survival. Poverty is inseparably linked to the failure to control over resources, including land, skills, knowledge, capital and social connections. It imprisons individuals and in a wider context poses one of the gravest threats to society, undermining political stability, social cohesion and the environmental health of the planet. It is often defined as a low-level of living standard, which is below the poverty line.

Poverty can be measured by three different indicators. The first measurement of poverty is based on the status of living standard. We measure living standard of people by their ratio of income and expenditure pattern. The standard of living is by per capita income adjusted for purchasing power parity, educational attainment and life expectancy. The second measurement of poverty is based on poverty lines. The absolute poverty line and relative poverty line are often used.

The major causes of poverty in Nepal are underdevelopment, inequality, low per capita incomes, inadequate access to land and of production, concentration between production shortages increasing prices and poor marketing systems, unemployment, inflation, low level of technology agrarian economy, and social factors.

Magnitude and Extent of Poverty

Each minute, approximately 50 babies are born into poverty of the six billion people in the world. 1.5 billion are desperately poor and the number is increasing by approximately 25 million a year. The gap of income ratio between the richest 20 per cent and the poorest 20 per cent of the world’s population was 30 per cent in 1960, it increased to 61 per cent by 1991. Twenty per cent of the worlds’ population survive on a daily income of less than 8 per cent. Today one billion of the world’s poor live in rural areas, but very soon, every second person will live in cites or towns, bringing about a growing urban situation of poverty.

The Majority of the world’s poor are women, children and other vulnerable and disadvantaged groups, such as indigenous peoples. The disabled, the elderly refugees, migrants and the long-term unemployed are most susceptible to poverty. In developing countries, over 95 million children under the age of 15 are estimated to be working to help their poverty-plagued families, while an equal number are estimated to be homeless, destitute and street children, the most acute problems are street children. The most acute problems are found in developing countries, in which more than a third of the entire population lives below the poverty threshold. The largest concentration of severely impoverished people-about half of the world’s total-lives in south Asia (India, Pakistan, Bangladesh, Maldives, Srilanka, Bhutan and Nepal), which is home to 21 per cent of the world’s total population.

The majority of the land holdings in Nepal are operated by owners. In 1991-92, 83 per cent of land holding were fully owned. A total of 400,600 holding (15 per cent) comprised land, which was partly owned and partly rented. Only 47,000 holdings (2 per cent) were operated under conditions of full tenancy. (Source-National sample census of Agriculture Nepal 1991-92, highlights control barware of statistics, January,1994).

In all 221,200 hectares out of the total of 2.60 million hectares of operated land (9 per cent) was land cultivated by tenants. A total of 91 per cent of land operated was owned land. The practice of renting land is more commonly used by landowners to add to existing land, rather than by the landless. Renting of land is more common amongst large holdings than small holdings. In 1991.92,14 per cent of holdings were less than 0.5 ha size rented land, compared with 21 per cent for holdings 2ha. or larger, (source Ifid).

Poverty in Nepal largely means rural poverty. About 40 per cent of Nepal’s population lives at or below the poverty line and of these over 90 per cent live in villages. The causes of their poverty are clear. There is not enough land to absorb the available village labor force in agriculture. A large part of landless agricultural labor remains unemployed for a considerable part of the year. The marginal and small farmers on the other hand who are self-employed neither have sufficient farm work to do throughout the year not get adequate income from cultivation to enable them to rise above the poverty line (source-Bhatia B.M. ‘poverty’ Agriculture and Economic Growth. Vikas Publishing House, India, 1977, pp. 105). Population below the poverty line comprise mostly of landless as well as small and very small farmers in the Hills and Tarai. In the urban areas it is mostly constituted of families without earning members, semi-literates, physically weak persons unable to perform manual works, unskilled adults and small retailers.

The incidence of poverty at the regional level was found to be the highest in the hills (47 per cent of all households and 50 per cent of the population) followed by the mountains (36 per cent of the household and 44 per cent of the population) and the Tarai (33 per cent of all house households and 55 p.c. of the population). In rural Nepal out of 3,662 households surveyed., 1,489 households or 40.7 per cent were found to be below the poverty line. In terms of population, out of 22,572 persons covered by the survey the total of 9,727 ir 43.1 per cent were living below the poverty line (Sources-Multipurpose Household Budget survey).

Out of a total 895 households surveyed in the urban hills only 113 or 12.6 per cent of households and 14.5 per cent of the total population were found to be living below the poverty line. The corresponding number of in the urban Tarai was 155 out of 766 households or 202 per cent of the total. In terms of population this constituted 24.1 per cent (Source-IFID)

The survey findings revealed that the incidence of poverty was lower in urban Nepal than in rural Nepal. However, the proportion of households and population living below the poverty line was higher in the urban Tarai than in the urban hills.

Ninth Plan 1997-2002)

In the current ninth plan (1997-2001), speeding-up the development activities through agriculture-led development strategy would uplift the economy and strongly extend support to poverty-alleviation and employment promotion. The objectives of poverty alleviation of the ninth plan are as follows.

The current level of 45 per cent of population living below the poverty line well be brought down to the level of 32.5 per cent by the end of the plan. For this, all the development activities will be geared towards poverty alleviation during the ninth plan period.

Recommendations

There are a large number of small-scale projects focusing on income generating activities suitable for poor households. Very often such projects are run by NGO’s and they tie up training for skills, gainful employment, health care, education etc. with income generating activities.

Full participation of the poor will be ensured in identifying their felt-needs, planning of possible programmes, implementation of the programmes and other after implementation operation. Participation will not be interpreted as simply seeking voluntary labour participation by the poor.

Organisation of the poor shall be encouraged to make use of traditional saving schemes into more formal ways to meet their petty credit needs. Linkage of such saving schemes shall be developed with local development fund, self-reliance fund and formal organisations like banks and cooperatives for larger benefit. These programmes are expected to create self-reliance among the poor.

Special attention must be given to the encouragement of economic growth in the rural areas where the majority of the poor resides and should continue to resideif the problems of urban development are not to be execrated. The reorientation of public investment towards the rural areas is vital if this new pattern of growth is to occur. Land reform alone can reduce only artially the quality of rural income distribution. Without accompanying changes in the agrarian structures institutions and policies, land reform will not lead to any major reduction in income equality. In land scarce Nepal a reduction in the quality of land ownership through redistribution of land to landless workers, tenants and small formers would be the most direct and effective way to reduce the most acute forms of poverty. Land reform has become synonymous with forms of poverty. Land reform has also become synonymous with forms of institutional change, which could satisfy the emerging demand for equality among people.

Conclusion

We can say that the state must help ensure a widespread distribution of basic social services to the poor particularly basic education and primary health care. Poverty reduction strategies often require a more equitable distribution of land and agricultural resources. The criteria of credit worthiness must be decentralised. The best way to extend the benefits of growth of the poor and to involve them in the expansion of output is to rapidly expand productive employment opportunity. The poor cannot benefit from economic development if they do not even participate in its design. The focus of development efforts in addition to increasing overall productivity must be to increase the productivity of the poor. Poverty reduces people’s capacity to use resources in a sustainable manner without intensifying pressures on the eco system.

In order to solve the problem of increasing poverty in the country, government efforts have to be directed toward employment generation and agriculture as well as rural development. While providing momentum to the implementation of agriculture prespective plan, it has been urgent to seriously implement programmes that make agriculture business oriented, promote agro-based industries and encourage the use of technology suitable to rural areas. It has been necessary to contribute to the development of severely poor and backward areas by implementing in a coordinated and effective manner the project that are currently under way through the establishment of poverty alleviation fund. In order to eliminate the problem of unemployment and semi-unemployment, it has been necessary to provide real meaning to the concept of home-to-home employment.

Security Cooperation In South Asia

By Nishchal Nath Pandey

INIS Claude, a renowned scholar on international security explained lucidly an interesting concept of "collective security" as, "the world (is) conceived not as a we-group and a they-group, but as an integral we-group in which danger maybe posed by one of us and must be met by all of us." This is the root to the theory of cooperative, collective security or even "preventive diplomacy" mooted by Former Secretary General of United Nations Dag Hammarskjold and reprogrammed by Boutros Boutros Ghali in his Agenda for Peace. After the end of the Cold War and the subsequent rise of national conflicts centering around religious, caste and ethnic lines, there was a sort of a re-thinking, among the major powers of the world that the collapse of the Soviet Union did not naturally check the escalation of hostilities, some of them even spilling over to the entire neighborhood from a state boundary. Disputes owing to deep-seated socio-economic, religious, political, psychological and international conditions actually increased in the last decade coupled with the alarming upsurge of the menace of global terrorism, genocide, ethnic cleansing, environmental degradation, malgovernance and massive abuse of human rights. Acting together politically, diplomatically and militarily in an era of dissonance and disharmony was the only option due to the inability of a particular state to cope with the larger implications of these conflicts crossing national and regional borders.

People turn to terrorism for all kinds of reasons. Many terrorists act from political, ideological, or religious convictions. Others become terrorists because of oppression or economic deprivation. The events of Sep.11th and the subsequent formation of a grand new international coalition to combat terrorism and the regime that harbors them is yet another testimony of the fact that the world is fast realizing the menace of terrorism backed by whatever ideology, cause or motive and the urgency to rise up against its threat. Although, combating terrorism is the will of the world, it should not however be used as a pretence for discrimination against any segment of society or country. Terrorists often claim to act on behalf of ethnic groups or religions as in the case of Osama Bin Laden. This can have dangerous fall-outs if not effectively countered by the peace-loving international community at large.

Coming back to security cooperation, two models are worth studying: The ASEAN Regional Forum (ARF) was conceived as a process in order to create a strong basis to act on building mutual trust through developing confidence building measures. The objective was to create a predictable pattern of relationships between member countries of the ARF to reduce tensions, stress and strains in bilateral relationships impeding the healthy growth of the regional process. South East Asian countries have not shared a history of trust and dependence let alone cooperation on security affairs. But, during the ARF inter-sessional support group on CBMs held in Beijing in 1997, it was agreed that regional security be viewed in a comprehensive manner with recognition that understanding and confidence in the region would be enhanced if non-military as well as military issues are addressed by the ARF. At the same time, Council for Security Cooperation in the Asia Pacific, a track II initiative comprising of Strategic Study Centers, Institutes focussing on foreign policy/security etc. was also formed in order to create an atmosphere more conducive to regional cooperation efforts. CBMs and security cooperation in Europe too was cultivated by a blending of political and military factors over a span of nearly 20 years. The Organization for Security and Cooperation in Europe (OSCE) has successfully steered the idea of conflict prevention and risk-reduction for European security.

When we come to South Asia, only the reverse is true. One can forget cooperating in security issues by virtue of the enduring hostility and dissension between India and Pakistan, the two largest countries of the region which has remained the central problem of inter-state relations since the British left in 1947. The continuation of the dreadful arms race, which turned nuclear in 1998, has further poisoned the political and strategic environment of the sub-continent. The Lahore Declaration signed by the Prime Ministers of India and Pakistan in February 1999 was a landmark in the history of mistrust, suspicion and one-upmanship. Agra summit held early this year too created much euphoria not only among the people of the two countries but also throughout South Asia which has been an easy casualty of the ceaseless strife between these two neighbors. But, agreements are not being implemented, promises not being kept and incidents/episodes like the Kargil conflict simply despoiling the relatively amicable scenario being created at the track I and track II levels.

SAARC process which needs sustained efforts from all quarters in order to make it play a pivotal role in bridging the gap created by mistrust itself has been going through the worst phase since its inception primarily due to the very bilateral uptightness between India and Pakistan. Nonetheless, there has been a much heightened ebullience in the region with floating scuttlebutt pertaining to the holding of the SAARC summit in Kathmandu in the coming months. Self-evidently, if Prime Minister Vajpayee and President Musharraf can meet in Agra why not in Kathmandu?

Although Prime Minister Atal Bihari Vajpayee on Tuesday ruled out talks with the Pakistan President, Gen. Pervez Musharraf on the sidelines of the U.N. General Assembly session in New York next month even though the visiting German Chancellor referred to the Agra summit and advocated the resumption of Indo-Pak talks, one can at least hope that the two leaders will come out strongly on the need of keeping regional cooperation attempts out of their two-sided belligerent cruxes that have lingered on for half a century.

King Tribhuvana And His Times IV

By Guna Dev Bhattarai

MOHAN Shumshere was a staunch supporter of autocratic rule. He was dead against any political reform imported from abroad. That is why he banned the Nepali Rastriya Congress throughout the kingdom. All the rights granted to the people on the basis of the Act of 2004 B. S. were made null and void. Some enlightened youths, including Gopal Prasad Rimal, Tripubar Simha, and Vijaya Bahadur Malla founded in October, 1948 the Nepal Praja Panchayat in Kathmandu. It was in keeping with the spirit of the Constitution of 2004 B.S. In the meantime some leading members of the Nepal Rastriya Congress led by B.P. Koirala came to Kathmandu. He came in contact with some enlightened persons. The underground activities of the Rastriya Congress could not last long as the police arrested B.P. Koirala and the leaders of the Nepal Praja Parished.

No sooner had B.P. Koirala been arrested than the Rastriya Congress Party workers became determined to launch a non-violent movement in Nepal. B.P. Koirala went on hunger strike in jail for 21 days. Mohan Shumshere being under pressure released B.P. Koirala and side by side assured him to initiate some reforms.

Mohan Shumshere after his short visit to India realised that India was not going to linger the autocratic rule of the Ranas. That is why he diverted his attention to Great Britain and the U.S.A for better relation with those countries Mohan failed to underestand that, if the people of Nepal revolted against the Rana regime, the Anglo-American friendship would not do anything against the will of the people. Moreover, they were not in a position to help the Ranas at the cost of the friendship with India. Further India had indirectly hinted that, if Mohan stuck to the outdated regime, the former would stand for the people of Nepal.

‘A lull before the storm’ goes a saying. Mohan Shumshere brought some political reforms in name only. He could not befool the people for a long time as the latter were determined to wipe out the autocratic regime of the Ranas at any cost. Though the king was fully determined to get rid of the Rana regime it was not possible for the him to get directly involved in any particular political activity. Nevertheless he began to come in contact with the revolutionary forces very cautiously. Chandreswor Prasad Singh, the then Indian ambassador to Nepal and some leading military officers were in touch with the king. The then Indian Prime Minister Jawahar Lal Nehru might have directed Chandreswor to convince the king that the former would help Nepal to be relieved from the bondage of the Ranas. In the meantime King Tribhuvana was granted permission to go to picnic to Balaju by Mohan. Mohan was quite unaware of the well planned strategy of the king. That is to say King Tribhuvana with all other members of the Royal Family except the then Prince Gyanendra took political asylum in the Indian Embassy on November, 6, 1950 A.D. (Kartic 21, 2007 B.S.). It was a unique event in the history of Nepal. Mohan being desperate to call back the king reluctantly crowned Prince Gyanendra king of Nepal with the approval of special countries. Consequently king Tribhuvana reached Delhi by air and was warmly received by the Indian Government.

India’s independence on August, 15, 1947 A.D. had given an opportunity to the Nepalese who had been residing in India for a long time to form a political party ‘The Nepali Rastriya Congress’ The C class Ranas after being deprived of the role of succession to premiership in 1935 A.D. had started settling in India. Most of them were not democrats in the strict sense but they wanted to punish Mohan Shumshere who had confiscated their property because the former failed to pay courtesy call on Mohan during the latter’s visit to India.

The exiled Ranas had formed a party Nepal Prajatantrik Congress. In the courses of time the leading members of the two parties decided to merge into a single party called the Nepali Congress Party. The arrival of King Tribhuvana in India gave a golden opportunity to the Nepali Congress to launch liberation movement in some key regions of the country.

Nehru realised that, if the movement lingered for a long time, the poor and oppressed Nepalese might be lured by communists. That is why he promptly asked the Nepali Congress leaders to stop their movement and reach an agreement with the king and the Government of Nepal. The Nepali Congress was forced to follow the advice of Nehru. Accordingly King Tribhuvana with all the members of the Royal Family returned home and once again he became the head of the state and on February 18, 1951 A.D. (Fagoon 7, 2007 B.S.) the king proclaimed that the system in which King Surendra had given administrative power to Jung Bahadur and his successors ceased to exist. Then the king formed an interim Council of Ministers comprising the Ranas and the Congress leaders, which would help the king in day to day administration. The ministers would be collectively responsible to the king for their action and they would remain in office as long as they won the confidence of the king. Thus the king restored his power and dignity and side by side emergence of democracy ushered in a new era in Nepal.