The poverty prevalence rate in Nepal has for the first time fallen to 30.85 per cent, which is a quantum leap despite being caught up in a conflict that has adversely impacted on the economy. The Nepal Living Standard Survey 2003-04 has shown that even other aspects of the economic indicators have improved over the years. Urban poverty went down by 12 per cent whereas the rural areas registered 8.7 per cent growth in the eight years since the last survey in 1995-96. The report is the most up-to-date assessment made with assistance from the World Bank and the DFID. It also throws in quite a few surprises, including the effect of literacy and impact of gender issues on economics. Households headed by females have a low incidence of poverty (23.8 per cent) compared to those headed by males (32 per cent). But the most noteworthy performance is of those who have attended 11 years of schooling, among whom only 1.6 per cent fall in the poor category. Remittances aside, agriculture, high wages, economic activities and urbanisation have fuelled the growth.

There is nothing to suggest that the methodology used in the study is faulty. That gives everyone the reason to be cheerful, as the survey points that poverty alleviation is possible despite a chunk of resources expended on security paraphernalia. But the improvement and the rise in the private per-capita consumption rate could not have occurred without the remittances which is by far a major revenue spinner. The credit must also be given to donors and aid agencies although their contribution has remained much more measured in recent times because of the on-going conflict. Nonetheless it is noteworthy that the figures have adequately proved in Nepal what had held true in many parts of the world: education and gender equality are intricately linked with economic performance. The figures must boost the morale of the government set to tackle poverty through its poverty reduction strategy. Because remittances happen to be one of the major economic engines, sending ski-lled manpower abroad as well as simplifying remittance collection through proper banking channels is important. But corruption must be fought alongside development drives. Meanwhile, foreign aid continues to be another basis of development engine.