IDEAS home Printed from
   My bibliography  Save this article

Public Service Delivery Mechanism and Rural Poverty in Nepal


  • Prof. Parashar Koirala

    (Tribhuvan University)


Nepal is a least developed country with a per capita income of $240. The population living below poverty line is 44.6%, in which the rural poverty is over and above the urban in percentage terms. In total, about 10 percent of the population live in the urban areas where the population living below the poverty line is 17.8 percent; in the remaining 90 percent residing in the rural areas, 46.6 percent of them are living below the poverty line. With regard to rural poverty, the delivery mechanism developed in rural and urban areas consists of Village Development Committee (VDC), Municipality, and District Development Committee (DDC). There is a division of work among the VDC, Municipality, DDC and the line ministries. The VDC is the lowest institution at the grass root level, which send development plan for necessary funding to DDC and the DDC to the Ministry of Local Development and to the National Planning Commission. This mechanism has been in operation for the last forty years. There has been some progress in development works such as in education, electricity, telephone, road and possession of radio. But the report and data show that the level of poverty has been increasing since FY 1976/77. To find out the impact of development activities on per capita income, a regression coefficient of each development activity has been estimated through the method of least squares. Through test statistics, it is demonstrated that there is a significant difference of the impact of independent variables (electricity, literacy, road, radio and telephone) on the dependent variable (per capita income).

Suggested Citation

  • Prof. Parashar Koirala, 2005. "Public Service Delivery Mechanism and Rural Poverty in Nepal," NRB Economic Review, Nepal Rastra Bank, Research Department, vol. 17, pages 1-15, April.
  • Handle: RePEc:nrb:journl:v:17:y:2005:p:1-15

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nrb:journl:v:17:y:2005:p:1-15. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr. Bishnu Prasad Gautam). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.