Poverty in Nepal remains widespread, especially in rural areas. Many poor people struggle to earn enough to meet their basic needs, relying on small, often unproductive pieces of land. This land doesn’t produce enough crops or generate enough income, making poverty more severe in rural areas compared to urban ones.
In 2010-11, about 25 percent of Nepal’s population lived below the poverty line. By 2023-24, this number had decreased to 20.3 percent, a reduction of 18.8 percent. While this shows some progress, many people still struggle to make ends meet. A 19 percent reduction in poverty over a decade is but a small improvement. Progress has been slow, and many still face difficulties, especially in rural areas. Efforts to fight poverty have not been strong enough to make a significant impact. According to a recent World Bank report, most of the poverty reduction can be attributed to remittances. This suggests that government efforts alone have not been enough to bring significant change.
This highlights the need for more action within Nepal to tackle poverty. There should be more local job opportunities, better access to education and healthcare, and better support for farmers so that people can improve their lives without having to migrate. While remittances help, they are not a long-term solution to poverty. The government and relevant organizations need to address the root causes of poverty and provide local opportunities for growth.
To reduce poverty further, Nepal must improve conditions for rural communities. This includes better access to education, healthcare, and technology, as well as improving farming practices. It’s also important to create more job opportunities outside of farming, so people don't have to rely solely on agriculture for survival.
Meanwhile, inequality in income or spending has decreased. In 2010-11, the Gini coefficient (GC), which measures income distribution, was 0.33. By 2023-24, it dropped to 0.30, a three percent decrease. The Gini coefficient ranges from zero (perfect equality) to one (extreme inequality). A GC of 0.3 shows that while inequality has decreased, it is still at a moderate level, meaning there is still a gap between the rich and the poor in how resources are shared.
Although the reduction in inequality is a positive sign, more work is needed. The three percent decrease suggests that efforts to reduce inequality are moving in the right direction, but there is still a long way to go to ensure fairer distribution of wealth and opportunities across Nepal. The government and organizations must focus on policies that help reduce inequality further. This could include improving access to education, healthcare and job opportunities for everyone, especially those in rural areas or from poorer backgrounds. By creating more equal opportunities, Nepal can continue to reduce inequality and move toward a more balanced society.
In conclusion, while poverty and inequality have decreased in Nepal, the changes are still not enough. Stronger and more effective efforts are necessary, particularly in rural areas. Remittances have played a key role, but they are not a long-term solution. The government needs to create more local opportunities for people to improve their lives and address inequality to ensure a fairer distribution of resources and opportunities across all communities.
