Wednesday, February 1, 2006

- Dr.Ram Kumar Dahal, T.U

III

Poverty Reduction Efforts in Nepal

Poverty alleviation in Nepal: Issues, Problems and challenges

Poverty reduction is a serious challenge in Nepalese context. As poverty is a global phenomenon (particularly in the developing countries) its complete alleviation depends on global attempts/measures undertaken by global actors collectively. Political economists, planners, development practitioners and experts have analyzed a number of reasons about how poverty alleviation became a difficult Job in Nepal and what the various issues, problems and challenges were in this regard and why poverty alleviation measures in the past ended in total failure. Nepal's failure to reduce/minimize poverty in the past is caused due to a number of factors. Nepal's difficult geographic situation (e.g. the high Himalayas, mountains and turbulent rivers flowing from north to south, difficult mountain and Mahabharata ranges and Churia hills stretching from east to west) has served as severe challenges to measures of economic development and poverty alleviation. The geographic complexities have created a gap between the inaccessible remote rural areas and facilitated urban centers. Rural poverty, particularly in the remote areas, is severe in Nepal which has to be addressed with special programs. Though Nepal in pre 1990 and post 1990 periods has undertaken a number of economic reform measures including agricultural transformation/modernization, land reform measures, resettlement/rehabilitation programs, rural industrialization (e.g. development of small scale and cottage industries), extension of rural market mechanisms, cooperative movements, these reform measures practically have proved less fruitful in the reduction of poverty. Unfortunately, the economic development and modernization activities so far conducted in Nepal could not effectively address the grievances of the real poor; whatever activities were planned and proposed at government level in different plan period and yearly budgets were either monopolized by the so call rich and tatha batha in their names or could not reach to the target groups. The land reform measures so far conducted the agricultural transformation schemes, the resettlement programs, the cooperative measures, the process of rural industrialization (or development of cottage and small scale industries) and the development of rural market mechanisms practically did not improve the lot of rural poor and improve their life living style. Moreover, the rural finance schemes, priority sector credit, production credit for rural women, rural self reliance fund, micro credit project for rural women and a number of measures declared so far by the government could not play significant in improving the status of the real rural poor.

According to Dr. Henning Karcher, (Telegraph weekly, January 19, 2000:37), (The former chief of the UNDP in Nepal, "the top 10 percent of Nepali population consumes more than button 50% taken together." This economic inequality between the top rich and the bottom poor has to be reduced if poverty has to be practically reduced in Nepal. In post 1950 period, Nepal completed nine development plans and a number of schemes and programs were launched under yearly budgets but poverty in Nepal has not been reduced practically. The living standard of the rural poor has been deteriorating every year. It is interesting to note here that, though Nepal experimented with periodic planning since 1956, why these plans and yearly budgets in fact did not contribute to the reduction of poverty in Nepal? Why has poverty instead of decreasing every year? What was the wrong with government policies? Programs increased? One of the major reasons for this is the high misuse of development fund by the corrupt politicians and high level bureaucrats. Thus the rampant political and administrative corruption has become one of the major hurdles for the improvement of the lot of the rural poor. In spite of this rampant corruption no massive anti corruption, measures (except few in post 2002 period to some extent) were taken against the corrupt political and bureaucrats virtually encouraging them to become more and corrupt and less responsible to the people in future. The economic reform measures declared in post 1990 period (including globalization, privatization and liberalization) intended to reducing poverty has widened the gap between the rich and the poor in a number of ways. These reforms extinguished more than 20,000 agro based small scale and cottage industries throughout the kingdom making a large number of people jobless and income less. The Nepalese political leaders, administrators and planners have almost failed to address the poverty issues separately in the Himalayan, Hill and Terai (including Inner) Terai regions, according to their real nature, content, need, priority and preference. These regions need different treatment to reduce rural poverty which the planners have to realize and act/form policies/programs accordingly. Out of the various development practices (e.g. stated-led, market-led, I/NGO-led and community-led development practices) adopted in Nepal to improve the lot of the rural poor, the community led development practice has become most successful even in the remote areas. The community practices (including Dhikur, (Guthi, Rodi (of Gurung) Bheja (of Magar community) Parma Bhajaita) have helped/provided services to the rural poor in various forms and content though people's participation But practically speaking, participatory democracy and development in Nepal have become, in most cases, the parts of electoral politics and a rhetoric (than reality).

Recommendations to reduce poverty

The reduction of poverty is a most complex task in Nepal due to a number of reasons. But it can be reduced gradually if practical and adequate measures can be adopted. In this connection, it would practical here to point out the reasons of failure of such programs in the past and recommend practical measures to gradual poverty reduction schemes. In Nepal's particular case, where the rural people are extremely poor, poverty can be reduced by encouraging and promoting rural tourism so that income generation capacity of the rural can be increased poor. For this, eco-tourism, cultural, religious, historical and agro tourism could be developed and tourism in general ca be regarded as socio-economic force. As Nepal is a land for all seasons for tourism, planning and coordination for tourism and the development of factors related with it (e.g. administration of tourism, transport, accommodation, national park and wild life reserves to attract tourists) Become important prerequisites in this direction. The promotion of rural tourism by attracting both foreign and national tourists in a hill and Himalayan country like Nepal can become one of the best means of earning foreign currency and livelihood. The Sirubari of Syanga district, Shree Antu in Ilam district; Chaurikharka, Namche and khumjung in Solukhumbu district have attracted tourist successfully contributing much to rural poverty reduction. Influenced by their success stories in the field of tourism, HMG/N had advocated the concept of developing model tourist villages in all the 14 Zones and has appropriated certain government amount for such purpose but due to some practical programs and policies, the amount also was lapsed in the fiscal year period and could contribute nothing in this direction. For the development and promotion of rural tourism (that can contribute for the reduction of poverty in Nepal) the Nepal Tourism Board (NTB) can play significant role in preparing of detail record of tourist spots, heritage and places of such importance (identification of such centers in each VDC, places of historical, religious and cultural importance etc.) in the district and the adoption of possible practical programs for their development in the district and in the VDCs. Such work can be done with the collaboration of a number of institutions and government offices including NTB, itself, DDCs, VDCs, Municipalities, ADDN, MuAN, NAVIN and leading local/NGOs that have been playing crucial role in poverty alleviation sector. In this connection, it would be appropriate to categorize such places of religions, historic and tourist importance and take appropriate policies and programs accordingly. (Lama, 2062 : 27-29) Tourists centers for trekking and mountaineering including Kanchanjunga, Sagarmatha (khumbu region) and Annapurna ranges may be developed in a special manner so as to attract foreign tourists and earn foreign currency. The other things related with rural tourism in Nepal and the important means of attracting foreign tourists (e.g. contributing to reduce poverty gradually) is the development of rafting, mountaineering, Trekking business in the tourist areas.

Modernization of backward agriculture in rural Nepal may be other agro based reforms that can contribute significantly for the gradual reduction of Nepal. For the modernization of traditional agriculture, a number of practical policies, programs and measures including the use of scientific inputs, tools, improved seeds and appropriate means of fertilizers, extension of rural credits to the rural poor extension of market mechanisms for the rural agricultural products can be undertaken and implemented. The infrastructures earlier built have also not been properly used and have failed provide service to the rural poor due to many reasons.

The centre for the selling of agro products in Dang (ksrishi utpadan Bikri Bhandar) (to cite some examples) has turned in dust bin garbage center and the wastage of the government expenditure in constructing the building. The unequal distribution of land and resources in Nepal has to be discouraged by the promulgation of appropriate land reform and land distribution measures attempting to bridge the widening gap between the rich and the poor (in respect to income, ownership, distribution to resources etc.) In this direction, the Nepalese welfare state can play significant role in enacting appropriate parliamentary laws and effectively/honestly implementing them into practice. Thus, the even distribution of wealth, assets and resources between the rich and the poor can be an influential measure to gradually reduce poverty in Nepal.

In this context, the providing employment opportunities to the unemployed citizens within the country would also contribute to reduce poverty. It would contribute to generate income to those who were formerly jobless or having no monthly/regular earning. The government has to undertake some practical programs and policies in this direction particularly for the welfare and wellbeing of the marginalized groups (e.g. voiceless, powerless underprivileged groups including women, Dalits, untouchables Adibasi Janajaties (indigenous nationalities). The gradual reduction of poverty is also related with the population control measures. The present population rate percentage (2.25%) is a burden to the nation which increases poverty in the country. The close relationship among public, private and government sectors may be influential measure to gradually reduce poverty in a country like Nepal. According the World Bank, UNDP and other development agencies, if development has to be encouraged, these three sectors should go side by side. It would also contribute to the gradual reduction of poverty in Nepal.

The balanced economic growth among various ecological zones (e.g. Bhot, Pahad and Mahesh ) and geographical regions e.g. Eastern, central, western, mid western and far western regions) may contribute to the gradual reduction of poverty in Nepal. The growth of Maoist activities at the beginning in the western Himalayan districts, particularly in the remote Karnali and Rapti Zones and later their expansion and extension in the Himalayan and Hill districts were due to a number of reasons including the second rate behavior shown by the central government to those areas and neglect the grievances and problems of the people living there. For a small, hill and mountainous country like Nepal where the inaccessible and remote areas suffer a number of issues problems and challenges relating to poverty, (e.g. lack of irrigation, drinking water and basic health facilities, schools, transportation and communication networks practical and effective integrated rural development programs/schemes and policies would better address in an integrated manner. In this context, The Nepalese welfare state has to take special care and promote the interests of the marginalized, voiceless, powerless and underprivileged groups (e.g. women, Dalits, Adibasi Janajaties) and undertake special programs for the welfare of the poor rural peasants by providing credit and other facilities to them at confessional rates,

It is important and interesting to note that in spite of the increasing technical cooperation and foreign development aid to the developing and poor countries, the number of the poor instead of decreasing has increased tremendously due to a number of reasons. It has forced the political economists to think that the transfer of development aid, economic resources and technical know how is not enough to reduce mass poverty in these countries. It also has urged the planners, development experts and political economists to review and reconsider the current development strategies practices, patterns and norms. Out of the experiences of their working in these countries it has been found that the participation of the rural poor themselves in improving their lot in their backward/remote areas is a must. Experts have pointed out various means and ways in enhancing and better use enabling their existing potentialities and resources, strengthening of local institutions and "learning from the future" where past experience fails to a reliable source of knowledge for their development activities. Izzeldin Bakhit it al. (1996) have outlined the importance of traditional values in human resources development, better use of local resources, "strengthening the role of local institutions and organizations, "informal sector as a source of income" for the poor" and the role and chances of woman in attacking the roots of poverty in rural areas. Nepal may not be an exception to this and can reduce poverty by doing these things. Income generation schemes according to the geographical, ecological and regional needs and priorities may be one of the practical measures to reduce poverty in Nepal. Attempts, thus would have to be made to encouraging the income generation schemes in different ecological zone (e.g. in the Himalayan, Hill and Terai (outer and Inner) regions (eastern, central, western, mid western and for western). Systematic scientific and revolutionary land redistribution measures that may bring reforms in land system including the implementation of the land Reform Act, 2020 deduce the land ceiling, respect the rights of the tenants end double ownership system would also be helpful in this direction.

The proper, practical and scientific identification of the poor and adopting practical programs for their
welfare and income generation measures is a prerequisite for poverty reduction. Their access to means of production, existing sources has to be encouraged formally and informally. Income generation schemes and employment opportunities have to be increased. In this connection, it would be appropriate to impart practical and vocational education so that they poor can earn livelihood by generating incomes at local level. The promotion of agro based small scale industries at rural increase the income of the poor and may promote sustainable development. The imparting of rural credit would also become helpful to the development of rural market, transportation mechanism to take rural products to nearest urban centers. The capacity enhancement and modernization of the traditional skills and professions (e.g. goldsmith, blacksmith and shoe keepers) may generate additional income and attract the young generation to their ancestral occupation. The modernization of the existing/previous knowledge and expertise may give recognition, self respect and self esteem to these groups which in most cases result the growth of their income. Regarding the proper review, evaluation and monitoring of the ongoing projects, integrated and holistic approach/approaches have to be encouraged and proper guidelines (Nirdesika) by the concerned ministries have to be made public. In this connection, based on the time and situation, early detection and early intervention by the government may seem essential in some context. The I/NGOs and international donor community have been conducting different programs in different parts of the country to reduce poverty in Nepal in different forms and styles depending on the availability of their fund. In this context, HMG/N and international donor community and I/NGOs should/have to identify common programs of actions and invest their money in an integrated and holistic manner. While conducting poverty reduction programs a number of issues including advocacy about human rights (HRs,) participation of the rural poor, voiceless and marginalized in the decision making process, in general the rights based approach have also to be raised and promoted.

The social inclusion and the integration of different socio-cultural/ethnic groups in undertaking any program/group formation become prerequisite for this.

One important thing in this direction would be to introduce the system of nation wide award or reward system to those stakeholders (e.g. the government, I/NGOs, CBOs, the poor, social workers, and political activists) for their best action/activity method, practice, so that they get proper system of recognition in society. As development is a multidimensional and multi sect oral issue, frequent changes in government and policy and the lack of continuity in programs may damage poverty reduction schemes. The extension of existing programs schemes and activities has to be given continuity and wide coverage so that the rural poor may be benefited through them. The broader coverage may include the participation of private sector and encouragement to need based reforms in the related sector. The government private sector international donor community and the I/NGOs have to encourage wide coverage follow and reinvent, reapplication Nepal must search the best approach and practices practiced through out the world countries in (as kibus in case of cooperatives in Israel, and cooperatives in some parts of china) The process of rural industrialization (e.g. establishing small and cottage industries) and the use of existing agro-based local raw materials in them have to be encouraged by providing a number of concessions and benefits to them e.g. exemption of tax for certain period of time electricity at cheap/nominal rate, supply of wood and their etc to mention a few.

The successful implementation of poverty reduction depend on the strong political commitment of the political leaders particularly those in power. Poverty can not be reduced all of a sudden, for this, the inadequate human and monetary resources have to be used properly and with broader coverage (e.g. out of 50 VDCs in Dolpa, only 30 VDCs have some poverty reduction. But such programs have to be extended) the planners have to make long term plans and perspectives for poverty reduction and give continuity with strong administrative and political commitment. The planners should not think that (as it is generally found in Nepal) only five years are a enough for this. Everything can not be done within a short period like a magic stick. The poverty can be reduced only when people below poverty line can get adequate food (as is mentioned in International covenant on Economic social and (cultural Rights, 1966 made by UNGA) and gel favorable environment to fulfill their basic/minimum needs get proper education and in short lead dignified life in the existing environment/society. The private sector and CSOs involvement in such activities is must in to-day's globalized context if poverty has to be really/practically reduced. During the past, the government programs regarding poverty reduction farming in most cases proved stereotype and one way in approach. But they have to be diversified in the changed context. In the past, focus was given on only one sector (e.g. goat keeping buffalo keeping for mild but if the programs would have been launched in holistic, integrated basis (e.g. vegetable, poultry or sericulture horticulture side by side according to need priority and availability of resources the programs for poverty reduction would have been more successful. In the past, women development considered as the part/unit of poverty reduction. Women development is not enough to reduce poverty for this, not only the development of the women but also the role of family, society, community, local leadership, local environment is important to empower women. Not only the women, but also the males in their families, local leadership and local people have to make aware and politically conscious. They should also be trained made aware, make advocacy about gender rights, gender equality and equity and advocacy against discrimination laws. The broader concept of development with democracy was realized in post 1990 period in the context of broader global trends (e.g. globalization, privatization, liberalization, marketization, liberalization, democratization) Though privatization encourages maximum participation of the private sector, the Nepalese political system (1990-2002) failed to improve the lot of the agro based vulnerable, landless, socially discriminated people.

Due to internal political conflict, in post 1996 days, poverty could not be reduced. As the post 1990 government failed to recognize the integrated and holistic approach, of development and poverty reduction schemes could not prove fruitful.

The pro-poor activities conducted by the international donor community and I/NGOs remained inadequate. Due to Maoist insurgency, poverty is gradually increasing. If the problem could not be solved, poverty will go on increasing and increasing in the days to come.

The Nepalese media (both electronic and print), by promoting good governance participatory democracy and sustainable development have to play significant role in unearthing and raising the issues of the rural poor and pressuring the government to launch special program for their upliftment. The Nepali media in post 1990 days in comparison to pre 1990 period, have considerable raised their issues but they have yet to reach the inaccessible remote areas to listen the grievances of the rural poor and pressurize the government to act accordingly or undertake appropriate measures for that. The concept of good governance, participatory democracy and sustainable development and other attractive slogans practically become meaningless without the reduction of the poverty of the rural poor and bringing them in the mainstream politics and decision making or without their effective participation. The non resident Nepalese (NRN) in their two meetings in Kathmandu in 2004 and 2005 had showed their willingness to invest their capital in Nepal and HMG/N by framing certain practical laws have to encourage them for this, which to some extent, may become instrumental for poverty reduction. The remittance so far the Nepalese getting from foreign countries have to be invested in safe sectors and places. So that it can contribute to poverty reduction.

Conclusion

In post 1990 period, when Nepal was exposed to western liberal democratic values and characteristics of open society, Nepal attempted to bring some solid programs for poverty reduction. The international donor community and I/NGOs have also played significant role in this direction. The 10th plan has also the specific targets programs for poverty alleviation.