The year 2015 was rough on Nepal. The catastrophic earthquakes that struck the country in April/May caused widespread destruction of life and property and was followed by disruptions in the south that brought cross-border trade with India to a complete standstill for 4 months. As dramatic as these recent shocks have been, Nepal is no stranger to conflict and fragility. A 10-year violent Maoist conflict ended in 2006 but the ensuing years of drafting a new constitution were turbulent; politics often dominating the discourse as opposed to economics. But despite these unfavorable odds, Nepal made rather surprising progress on improving living standards and reducing poverty.
Between 1995 and 2010, absolute poverty – measured as the proportion of people living below the national poverty line of Rs.19,261 per person per year – declined steadily by around 2.2 percentage points a year. This helped the country meet the MDG target of halving income poverty by 2015 quite comfortably. Living standards improvements were realized not just based on income or consumption but also along multidimensional measures of well-being that take into account access to essential services such as education, health and drinking water and sanitation. What was behind this progress on poverty reduction Nepal achieved amidst a violent conflict and a tumultuous post-conflict recovery?
- Urban Development
- Social Development
- Public Sector and Governance
- Private Sector Development
- Law and Regulation
- Financial Sector
- Climate Change
- Agriculture and Rural Development
- South Asia
- Sri Lanka
October 17 is the international day to end poverty. There has been much progress toward this important milestone: the World Bank Group’s latest numbers show that since 1990 nearly 1.1 billion people have escaped extreme poverty. Between 2012 and 2013 alone, around 100 million people moved out of extreme poverty. That’s around a quarter of a million people every day. This is cause for optimism.
But extreme poverty and the wrenching circumstances that accompany it persist. Half the world's extreme poor now live in sub-Saharan Africa, and another third live in South Asia. Worldwide nearly 800 million people were still living on less than $1.90 a day in 2013, the latest year for which we have global numbers. Half of these are children. Most have nearly no education. Many of the world's poor are living in fragile and conflict afflicted countries. In a world in which so many have so much, it is unacceptable that so many have so little.
This is part of a series of blogs focused on the Sustainable Development Goals and data from the 2016 Edition of World Development Indicators. This blog draws on data from the World Bank’s Rural Access Index and on results presented in the report Measuring Rural Access: using new technologies
Just over half of the rural population in Nepal lives within 2 kilometers of a road in good or fair condition as measured by the Rural Access Index (RAI) in 2015, leaving around 10.3 million rural residents without easy access. The map shows how the RAI varies across the country: in the southern lowlands, where both road and population density are high, the RAI is around 80 percent in some districts. In the more rugged northern regions, lower road density and poor road quality leave many disconnected, resulting in a low RAI figure – in many places less than 20 percent.
A section of a footpath is swept away by landslide near the international airport in Kathmandu, Nepal. The roads are slippery and difficult to walk on or even drive due to potholes and delayed maintenance in the valley. These are just few difficulties that I endure during my everyday commute, but what do I actually do about it? I complain about it with my friends, we all nod in agreement and we get on with our everyday chores.
Pranish Thapa, on the other hand, is an exception. A 17 year old student, he has complained on issues ranging from public infrastructures, abuse of power, the quality of education, good governance or the lack of it, etc... His complaints have gone beyond 3000 over the last five years. He lodges his grievances through Hello Sarkar, which literally means Hello Government in Nepali.
Pulled by the abstract of the event organized by Martin Chautari, I decided to see how the case of Grievance Redress Mechansim (GRM) is working in Nepal. The event information stated: Hello Sarkar aims at making the government more accountable to the people by addressing citizens’ grievances on public service delivery directly. It is located at the heart of the state machinery, the Office of the Prime Minister and the Council of Ministers. Concerned citizens can approach the system via phone (toll-free number- 1111), mobile texts, email, social media or website.
Judging by the number of views of the recent Facebook livestream event on intra-regional trade and investment in South Asia, there is significant interest in this topic. And there should be, given that there remain many important and untapped opportunities to use the power of trade and investment to enhance economic opportunities, including for lesser-skilled people and women in the region.
According to respondents of the Facebook poll conducted during the above event in May 2016, the most important policy to enhance intra-regional trade would be to invest in connectivity and border crossings. Policy makers seem to realize this as well. Over the last two years, new efforts to deepen South Asian cooperation in trade have focused almost exclusively on trade facilitation issues. Let me elaborate.
Nepal is a country full of untapped potential, but several obstacles stand in its way of becoming a more modern and globally connected economy. Outdated trade and investment policies hurt exporters especially and make it difficult for them to reach markets in developed countries. A new World Bank Group report takes stock of current participation in global markets and makes recommendations on how the country can increase trade integration and boost its economy.