Policy Paper on Inequality: Nepal Shiva Sharma

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Policy Paper on Inequality NepalShiva Sharma
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Inequality what happened
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Poverty Rate Unequal

• NEPAL 31
• Terai 27.6
• Hills and mountains 33.5
• Kathmandu 3.3
• Dalits 45.5
• Muslims 41.3
• High Caste groups 18.4

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Poverty reduction rate unequal

• From 1996 to 2004
• Brahmin and Chettri 46
• Tharu 34
• Muslims 6
• Janajati/ethnic 10

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Inequality widened because1

• the proportion of the population with higher
  education, comprising about 2, enjoyed higher
  returns on human capital.
• the proportion of the population with
  occupational skills fared comparatively better
• self employed in manufacturing also earned higher
  wages on average.
• three groups comprised 1/10 of the total
  population, enjoyed a consumption increase of 66
  to 96 against 42 average increase.

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Widened because2

• Contraction of the size of operational land.
• Increase in the share of rented-in land.
• Fall in the consumption share of the poorest 20
  of the population.
• Inequality in the receipt from remittances.
• A sharper fall in employment share in agriculture
  and only a modest increase in non-agricultural
  employment.
• Fall in employment share of longer duration
  under-employment increased.

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Inequality in Access to Facilities
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Growth with lesser participation
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Remittance Poverty and Inequality

• Contributed in poverty reduction
• Increased inequality because
• poor landed to low wage destinations

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Growth, Inequality and Poverty
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Way Ahead 1

• Emphasize agriculture
• Agriculture gets low share of public
• expenditure only 1.3 of GDP compared to
  non-agr sectors receiving 18

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Way Ahead 2

• Ensure rural households have access to land 20
  are landless
• Help create human capital especially skill
  trainings among youths and workers
• Finance is a problem extend micro credit to
  small and marginal producers, finance-starved
  prospective labour migrants
• Targeted interventions