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Household Livelihood Strategies and Implication for Poverty Reduction in Rural Areas of Central Nepal

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  • Shanta Paudel Khatiwada

    (Institute of Mountain Hazard and Environment, Chinese Academy of Sciences, Chengdu 610041, China
    University of Chinese Academy of Sciences, Beijing 100049, China)

  • Wei Deng

    (Institute of Mountain Hazard and Environment, Chinese Academy of Sciences, Chengdu 610041, China)

  • Bikash Paudel

    (Local Initiatives for Biodiversity, Research and Development (LI-BIRD), Gairapatan-4, Pokhara Post Box No. 324, Nepal)

  • Janak Raj Khatiwada

    (University of Chinese Academy of Sciences, Beijing 100049, China
    Chengdu Institute of Biology, Chinese Academy of Sciences, Chengdu 610041, China)

  • Jifei Zhang

    (Institute of Mountain Hazard and Environment, Chinese Academy of Sciences, Chengdu 610041, China)

  • Yi Su

    (Institute of Mountain Hazard and Environment, Chinese Academy of Sciences, Chengdu 610041, China
    University of Chinese Academy of Sciences, Beijing 100049, China)

Abstract

Understanding household livelihood strategies is pivotal to minimize rural poverty in the least developed countries like Nepal. This study is an attempt to assess livelihood strategies pursued by rural households, investigate the most remunerative strategy, and identify the factors that influence a household’s choice of better strategies in rural Nepal. Primary data collected in 453 households from three villages of central Nepal are analyzed quantitatively within a sustainable livelihood framework. This study categorized households into five main livelihood strategy groups. The results showed that the majority (61%) of the households diversified their income to non-farm sources. Livelihood diversification to business/enterprise strategies adopted by 16% of the households is the most remunerative strategy followed by commercial farming that includes 13% of the sample and are more relevant to poverty reduction. Land holding, education, agriculture and skill training, access to credit, and proximity to the road and market center are the major influencing factors on the adoption of higher returning livelihood strategies. Stimulating poor households to follow market-oriented farm and non-farm activities by improving access to education, vocational training, rural credit, and rural infrastructures is momentous for reducing poverty in the rural areas of central Nepal.

Suggested Citation

  • Shanta Paudel Khatiwada & Wei Deng & Bikash Paudel & Janak Raj Khatiwada & Jifei Zhang & Yi Su, 2017. "Household Livelihood Strategies and Implication for Poverty Reduction in Rural Areas of Central Nepal," Sustainability, MDPI, vol. 9(4), pages 1-20, April.
  • Handle: RePEc:gam:jsusta:v:9:y:2017:i:4:p:612-:d:95875
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