The debate about the extent to which the poor are responsible for their own destinies is applicable to the citizens of those nations where there exists a property rights system, universal access to education, health care, employment opportunities and social safety nets. In a country like Nepal where a large section of the population is poor and the disparity between rich and poor is growing, we cannot blame the victims for their destiny.

In this context, the poverty situation is adversely affected by social exclusion. There exists a widespread social exclusion based on caste and ethnicity. People of lower castes and Dalits are poorer than the higher castes and ethnic groups. Furthermore, social exclusion has a major influence on poverty outcomes. Social identity in terms of caste, ethnicity and gender influences access to assets, opportunity and representation. Thus, those in lower castes are at a greater risk of having fewer human developmental indicators and falling below the poverty line, thereby getting trapped into the vicious cycle of poverty. In addition, a lack of sufficient public expenditure is another major determinant of poverty. Per capita expenditure on social services is extremely low in Nepal. The poor do not get any kind of financial support from the government.

Nepal’s agricultural sources produce barely enough to match the rapid growth in population. The poor do not have the best land available and the farms owned by the poor have low productivity. Poverty is widespread with 31 per cent of the population living below the poverty line — the impoverished live in a fragile and vulnerable ecosystem. The poorest of the poor mostly reside in rural areas where off-farm employment is virtually non-existent. The lack of employment opportunities and capital has left the poor with very few options to lead a financially secure life. The high incidence of income-poverty in Nepal is accompanied by capability-poverty, which may be defined as the lack of access to the resources necessary for increasing income. The majority of the poor spend a major part of their income on food alone, a small portion on clothes and fuel, and a negligible amount on health and education. In case of illness or natural disaster, they are forced to borrow from local lenders that charge excessive interest rates (about 20-50 per cent). Thus the poor continue indefinitely to be under the burden of inherited debt.

As agricultural employment is only seasonal and industrial establishments are not in a position to absorb all of the labour force, the poor remain unemployed and do not have a fixed source of income. Without government support, inherited assets, access to education and employment opportunities, the poor will never get a fair chance to improve their lot.

The poor in Nepal are not agents of their destinies; rather, they are victims of an existing socio-cultural structure plagued with faulty economic policies that past governments have been adopting for decades.