For a long time now, we have continued listening to and reading about the government’s commitment to alleviating poverty. Thick volumes of periodic plans are formulated, annual budgets and programmes are sanctioned, and programmes and projects are launched. In terms of number or percentage, we can agree that poverty is gradually being rooted out. However, in terms of visibility, we can find that poverty continues to persist in Nepal.

Some would argue that poverty can be completly alleviated—the UN Secretary General believes that poverty can be ended by 2030. However, many Nepalis would not agree with such arguments and promises. What they seem to believe is that poverty can be reduced, that too if we seriously take care of at least three aspects.

Data and policies

First is data. And, data matters a lot. Having reliable, accurate data, in other words clear information, is very important to succeed in our efforts to reduce poverty. Unfortunately, we do not have qualitative and accurate data, particularly about the poor and also about the availability of resources. The lack of data therefore creates distorted pictures. Our efforts are thus based on distorted pictures. In other words, we do not know enough about who the poorest are or where they reside. Similarly, we do not know enough about what resources are available and what could be an appropriate mixture of resources. No matter how beautifully plans are written and programmes and policies are prepared and pronounced, those most in need are continually left behind. Resources, too, are not used or harnessed effectively.

Second, targeted policies, not slogans or duplicated blueprints, are required to help reduce poverty. In other words, there is a need for a three-pronged approach to effectively reducing poverty. First, we need to promote an ‘escape from poverty’.

We need to provision social assistance that not only provides immediate income support but also helps create wealth. Social assistance must build human capital and enable poor people to take advantage of opportunities. Second, poor people and households always remain vulnerable and could fall back into poverty if government policies are not aimed at helping them manage unforeseen risks while providing them with some kind of social insurance as protection against such risks. Finally, government policies need to help elevate poor people and households to a higher level of well-being. However, we should bear in mind that this can happen only when the poor are able to meet basic security needs and are enthusiastic about making investments in livelihoods and jobs. We need to eradicate attitudes of low risk and low return.

A mix of resources

The third important aspect concerns resources and their use. Over the years, the tendency has been to look at only two types of resources—government revenue and foreign aid. This limited perspective has left us with a perennial constraint of resources to be able to reduce poverty. No matter how poor the country remains, other resources, which can be used or harnessed to reduce poverty, are also available.

For example, we get foreign direct investment. We have portfolio equity invested. In addition to government revenue and official development assistance, we can avail of south-south cooperation, private and public debts, contribution from philanthropic persons and foundations as well as from I/NGOs.

Resources from remittance could also be highly effective in reducing poverty if they are managed and used properly. We receive huge amounts of remittance but unfortunately, they are being used to reduce immediate poverty and for consumption but not for building human capital.  Resources available in two other areas are hardly even considered while working out programmes and policies, that is, resources available from the Nepali private sector and private household resources.

Coordinated and targeted

Policymakers, therefore, should not rush to come up with plans with distorted or inaccurate data. There is need for an approach that takes all perspectives and agencies into consideration. Scattered, ad-hoc programmes and policies are not going to work. The most important thing that needs to be taken into consideration is that all kinds of resources—both domestic and international—be utilised in a highly coordinated manner. An appropriate mix of these resources needs to be well thought out before embarking on implementing plans. If we continue to focus on just two ources—government revenue and official development assistance—we will not reduce poverty in real terms.

Ghimire is a senior bureaucrat