Anita Adhikari

Kathmandu:

With a per capita income of $230 per year, Nepal is one of the poorest countries in the world. Poverty in Nepal is widespread and rampant with 38 per cent of the population living below the poverty line at the end of ninth plan. The overall objective of the 10th Plan/PRSP is to reduce poverty level from 38 per cent to the 30 per cent by the end of the plan period, further

to reduce the poverty ratio to 10 per cent in about 15 years time. In 1995/96 the incidence of rural poverty was 44 per cent. Poverty in rural area is high especially in higher altitudes (HPI in Mountain is 49.8 whereas 39.6 in the Terai, NHDR 2004) and less accessible regions and among lower castes and indigenous minorities. Given the topography of the country and the miserable socio-economic and political conditions in the rural Nepal, poverty alleviation is a challenging task. The present conflict in country has directly affected about 2.4 million people, primarily in the 1 Western regions, suffered from damaged infrastructure and interrupted economic activity.

Agriculture is the mainstay of the rural people. Over 81 per cent of the people are involved in agricultural and allied activities. Due to various reasons the productivity of the sector is low contributing high incidence of rural poverty. Whatever services and benefits the government provides appear to be captured by local elites because the poor are not well organised and aware to defend their interests. Nepal has made significant progress in the development of infrastructure in past years. Despite of several attempts by the different governmental and non-governmental organisations, the development of infrastructure in rural area is still in infancy. Increase in access to electricity in rural areas could result in improve living standards of rural people through sustained enhancements in financial performance and commercialisation of agriculture and forestry (Non Timber Forest Product)) sector. This will lead to creation of an environment for expansion of industry, tourism and commerce. Rural electrification programmes would contribute to linking them with irrigation programmes, and use as an alternative energy to reduce extreme pressure of energy demand upon forest resource. This would ultimately decrease the hazards to environment. Improve access to safe drinking water supply can create healthy rural population and environment. Irrigation development significantly contributes to increases farm productivity later on reducing poverty. Implementing small irrigation schemes through the local participation would help to attain the increase in agricultural production and productivity.

In view of the fact that basic physical infrastructure is a precondition for poverty reduction and economic development, high priority should be given on the matter. The infrastructure projects should be implemented at a location where there is easy physical access to the all. They should be implemented with other income generating programmes. Only then would the development be pro-poor, really contributing to the reduction of poverty, and mainstreaming the deprived groups in the developmental efforts of the country.