The State of Economic Development in Nepal

Bimal Adhikari

doi:10.3126/ijssm.v5i1.19029

Abstract

This paper highlights the importance of measuring poverty through a multitude of approaches. This paper also discusses the current economic condition of Nepal using indices that emphasize financial aspects as well as by using indices that go beyond commercial elements. The overarching goal of this paper is to provide a comprehensive understanding of the state of poverty and economic development in Nepal. Based on the findings of this paper, the author finds access to cooking fuel, proper floor, sanitation, education facilities, and adequate nutrition to be the binding constraints on Nepal’s developmental aspirations. Targeted investment in these areas will certainly help to reduce widespread poverty.Int. J. Soc. Sc. Manage. Vol. 5, Issue-1: 43-45

Highlights

To devise effective policies for poverty reduction, it is necessary, first, to measure poverty holistically
The World Bank publication, Introduction to Poverty Analysis (2005), for example, mentions that there are mainly four reasons as to why there should be a comprehensive assessment of poverty (Khandker, 2005): 1. To keep the poor on the agenda 2
This paper highlights the importance of measuring poverty through different measures

Summary

Introduction

To devise effective policies for poverty reduction, it is necessary, first, to measure poverty holistically. It is asserted that this measure helps determine “the minimum cost of eliminating poverty using targeted transfers is the sum of the entire poverty gap in a population” (Khandker, 2005) Even though this measure provides more information compared to the headcount index, it too falls short in providing a detailed picture of poverty. The squared poverty gap index acknowledges the inequality among the poor This approach places greater weight on those households that are relatively farther away from the poverty line. The virtue of using this approach is that unlike, for example, the poverty gap index – which weighs all poor households – it differentiates among the poor, providing a clearer picture of poverty for policymakers It lacks intuitive appeal and is not a popular measure in development agencies (Khandker, 2005).

HDI Value

Findings

Conclusion