Chandan Sapkota’s Blog

470 (2007/08), has witnessed impressive improvement in poverty decrease in the last decade. The primary four reasons for the decrease in the poverty level are remittances, plantation wages, urbanization, and decline in fertility. But this decrease in the poverty level is not homogeneous among all the population groups. Two factors that account for this are change in structural discrepancy and work in migration, relating to the paper on inclusive development in Nepal.

This is a fairly different explanation when compared with the sooner standard explanations from the WB and federal government reports. That is true for local reduction in poverty probably. Also, the writer argues that he finds a solid relation between social exclusion, as defined by the caste system, and financial poverty.

Can more households follow the same pathways out of poverty? The paper states that this (quite predictably) depends on the economic plan of the federal government. The author suggests that the national government can learn from the encounters of successful Indian states like Kerala and Punjab. A combination of the social security net with competitive markets and secure property rights, may foster domestic and foreign investments in productive physical and human capital.

The role of the federal government will be to broaden the tax base, and spend the taxes on earnings, as well as foreign aid, on public goods to get the combined goal of public security and economic growth. Therefore, investments in roads, transmitting lines for electricity, irrigation, as well as principal education and subsidized health services. Nepal may consider duplicating the rural employment guarantee of India also.

  • 6% – 7%
  • Infrastructure Bonds issued by Institutions/ Banks such as IDBI, ICICI, REC, PFC etc
  • NEL Group
  • Offences and penalties
  • Access to warranties and transfer of income
  • $400 in dividends
  • 2017 150,073 160,578 10,505

Note that today’s authorities are run by the Maoists who have gained popular support on the back of land reforms and end to feudalism. However the question is how are they going to do land reforms with tempering market and individual incentives? Concerns of private appropriability is operating high.

I remain skeptical about land redistribution program because of the unclear policies of the Maoists in this regard. A Maoist land minister had to resign last month after he refused to refute and return a land grab stint Maoists party cadres do on his leadership! My concerns about the land reforms under the red flag here. Education and training programs lead to improved human being capital. Subsidized health services insure people against major risks, which, in turn, permit them to make profitable investments rather than investments that produce them able to handle different kinds of risk.

Investments in physical capital, like transmission lines, roads, and irrigation is necessary for financial growth, and a broad-based tax system is necessary to fund these and other costs. Finally, some targeted programs may beneficiary be, such as land redistribution to landless Dalits in remote villages of tea, and tests with a rural work assurance in the same areas.