In line with the official goal of the World Bank and principal target of Millennium Development Goals (MDGs), government policies and supporting plans, programs and projects on poverty reduction have been introduced throughout the globe. But though billions of dollars have been spent in this area, the globalized world has been unable to accomplish its targets on poverty.
Reportedly, over 46 million people slipped into poverty in US last year. Poverty reduction is also a fundamental challenge in China, the second largest economy in the world. According to World Bank, about 29 percent people are under the poverty line in India, the world’s largest democracy. All over the world, over three billion people live on less than US $ 2.5 a day and a billion children live in poverty. The wealth of the world’s seven richest people combined is higher than the GDP of the 41 Heavily Indebted Poor Countries.
Nepal has been adopting planned development model for more than five decades. Though the ultimate goal of all periodic development plans has been poverty reduction, it first entered as an objective in the eighth plan. Since the ninth plan poverty reduction has been at the front and center of the plan. The document of tenth plan was itself titled Strategic Paper for Poverty Reduction. But still seven million Nepalis are below the line of poverty. The third National Life Standard Survey (NLSS), held in 2009/10, has acknowledged that 25.16 percent of the people are recognized as living below the poverty line. The goal of the current Three-Year Plan (TYP) is bring it down to 21 percent. TYP is aimed at reducing existing inequality and poverty by increasing dignified and profitable employment opportunities through the expansion of inclusive, productive, and targeted programs. The progress review of MDGs in 2009/10 ascertains that the target on poverty reduction is achievable and the supportive environment strong.
Though the number of the poor in Nepal is decreasing gradually, we are not able to arrive at a particular number. For instance, 25 percent Nepalis are poor according to the single dimensional poverty index, while 65 percent are poor according to the multidimensional indices. Hence arriving at exact figures on poverty is a big challenge. This is an important task for such estimations will determine the level of investment in vital areas like basic health care, health insurance, elementary education, rural roads, and rural connectivity.
So far the impact of targeted programs has not been very fruitful. The considerable number of passive and unemployed people is a great challenge. There is little investment due to the unpredictability of government policies and political instability, the reason over two million unskilled people have been contributing to the development of Malaysia and Gulf countries, instead of building their home country. Food crisis in Karnali region continues unabated. The lifestyle of urban poor and homeless is degrading by the day.
Due to the lack of coordination among line ministries and local development bodies, valuable resources from donors have not been utilized properly. The duplication in programs is another prime cause of misuse of resources. On the other hand, because of our limited capacity to operate high-value projects, donor contribution has fallen short of commitment. Even the Poverty Alleviation Fund (PAF) has a dismal record in use of available resources. The newly established Ministry of Cooperatives and Poverty Alleviation is itself poor in terms of infrastructure, scope, budget, personnel and enthusiasm. The ministry struggles to make its voice heard at the government level because poverty alleviation is apparently very low on its priority list. Unless this state of affairs chances, the country cannot hope to make progress on the noble quest of poverty alleviation.
The author is Under Secretary, Ministry of Cooperatives and Poverty Alleviation