Poverty Context [ Web View ]
Nepal is one of the least developed countries in the world. Though the estimates of the current incidence of poverty vary depending upon the methodology used, but it is generally believed that close to 50% of the population live below the poverty line. As per some oft-quoted measurements of poverty, Nepal ranks 70th out of 94 developing countries as per the Human Poverty Index and third poorest in Asia. In terms of gender related development Nepal ranks 119th out of 144 countries, the second lowest in Asia (IFAD, 2004).
Persistence of poverty in Nepal can be linked to a complex set of inter-linked social, economic and political factors. As far as rural poverty is concerned agriculture, forestry and fishing employ around 66% of the usually economically active population which accounting for 39% of GDP (2002/03), and are the largest sector of the economy (IFAD, 2004). Though agriculture is still mainstay of the Nepali economy, it has declined in relative importance over the last two decades. With over 50% of geographical area covered by forests, forest resources play a crucial role in the livelihood of rural population, especially in the hills. Recognizing the limited capacity of agriculture development to contribute for poverty reduction there is an increasing attention being paid to the role of forests in income generation and improving livelihoods of rural poor (Malla, 2000).