20.27 Percent of Population Below Poverty Line in Nepal
June 14, 2024 | Investopaper
A recent report from Nepal’s Living Standards Survey of 2079/80 reveals that 20.27 percent of the population lives below the poverty line, marking a slight decrease from 25.16 percent in 2066/67. Urban areas exhibit a poverty rate of 18.34 percent, significantly lower than the rural rate of 24.66 percent. Despite this improvement, poverty remains predominantly a rural issue.
The new poverty line sets an annual expenditure threshold of less than Rs. 72,908 per person, categorizing individuals spending below this as impoverished.
In terms of inequality, the Gini coefficient stands at 0.30, indicating significant disparities. Poverty intensity is higher in rural areas (0.303) compared to urban regions (0.287). Interestingly, while urban areas have lower poverty rates, disparities within rural communities are more pronounced.
Geographically, the Gandaki province has the lowest poverty rate, contrasting with higher rates in the Madhes, Lumbini, Karnali, and Sudurpashchim provinces. Poverty rates in Gandaki, Bagmati, and Koshi provinces are below the national average.
Moreover, poverty intensity is highest in Sudurpashchim, significantly surpassing the national average. This province also exhibits the highest disparity in poverty intensity compared to Gandaki, which has the lowest.
Further disaggregation by household size reveals a notable increase in poverty rates with larger families. For households with seven or more members, the poverty rate reaches 29.92 percent, indicating the challenges larger families face.
Notably, gender disparities in poverty rates are minimal, with similar rates observed among male-headed and female-headed households. However, disparities in poverty intensity and depth are slightly higher in female-headed households.
Education emerges as a key factor in poverty alleviation, with poverty rates declining as educational attainment increases. Illiterate households have a poverty rate of 32.32 percent, significantly higher than the 0.44 percent rate for those with a bachelor’s degree or higher.
Access to services significantly impacts poverty. Families within 30 minutes of public services are less likely to be impoverished. Notably, the survey identified areas lacking basic services, highlighting the need for targeted interventions in education, healthcare, markets, and financial services.
