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Trends and drivers of poverty reduction in Nepal : a historical perspective

Author

Listed:
  • Uematsu,Hiroki
  • Shidiq,Akhmad Rizal
  • Tiwari,Sailesh

Abstract

Nepal made remarkable progress in poverty reduction between 1995 and 2010, a period coinciding with a decade-long violent conflict followed by tumultuous post-conflict recovery. Although improving agricultural productivity was long regarded as instrumental to lifting the living conditions of Nepal's impoverished rural areas, a bulk of the observed poverty reduction has come as a result of exogenous improvements in economic opportunities for poor Nepalis outside Nepal's borders. About 50 percent of the poverty reduction witnessed between 1995 and 2010 was associated with growth in labor incomes, particularly in nonagricultural activities. Private remittance receipts account for a little over a quarter of the total poverty reduction seen in Nepal. This is consistent with increased nonfarm diversification of rural households as well as the increase in nonfarm wages over the period. Household demographic changes, brought about by a sharp decline in fertility rates and the changing dependency structure as a result of migration, have also played an important role.

Suggested Citation

  • Uematsu,Hiroki & Shidiq,Akhmad Rizal & Tiwari,Sailesh, 2016. "Trends and drivers of poverty reduction in Nepal : a historical perspective," Policy Research Working Paper Series 7830, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7830
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    Citations

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    Cited by:

    1. Srinivas Goli & Nagendra Kumar Maurya & Moradhvaj & Prem Bhandari, 2019. "Regional Differentials in Multidimensional Poverty in Nepal: Rethinking Dimensions and Method of Computation," SAGE Open, , vol. 9(1), pages 21582440198, March.
    2. Bandita Sijapati, 2017. "The Quest for Achieving Universal Social Protection in Nepal: Challenges and Opportunities," Indian Journal of Human Development, , vol. 11(1), pages 17-36, April.
    3. Jifei Zhang & Chunyan Liu & Craig Hutton & Hriday Lal Koirala, 2018. "Geographical Dynamics of Poverty in Nepal between 2005 and 2011: Where and How?," Sustainability, MDPI, vol. 10(6), pages 1-24, June.

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