Publication
Although public policy in Nepal takes human development as its overarching goal, the country’s citizens continue to suffer from low life expectancy, low literacy and living conditions that deny them dignity. In short, Nepal’s levels of human development remain among the lowest in the world. Poverty perpetuates itself because of inequity and inequality in the distribution of resources and opportunities.
Vast disparities in the ownership of productive assets - both capital and non-capital - correlate closely with a lack of broad policy "ownership" and the participation of most Nepalis in allocating public resources. Further, an absence of transparency and accountability results in misusing and wasting public resources - which diminishes poverty reduction efforts. Non-participation, opaque decision-making processes, and sharp shortcomings in accountability add up to weak governance.
The Nepal Human Development Report 2001 explores the twin concerns of Poverty Reduction and Governance through the lens of human development. It draws on the country’s heritage in social mobilization to show how human development and good governance can create a "virtuous cycle". As governance improves - as resource allocation becomes more equitable - poverty declines and human development levels rise. Conversely, as health, education and living conditions improve, people’s capacity to participate in decision-making processes grows, and citizen ownership of governance bodies and institutions expands, producing greater transparency and equity in the distribution of resources and heightened effectiveness and efficiency in service delivery.
There are no "quick fixes" here. As the Report demonstrates, working towards good governance – people’s ownership of the processes that shape their lives - is a complex, arduous undertaking. Without this effort, though, Nepal’s battle against poverty may end as a lost cause. And, as the Report amply illustrates, it is too promising a campaign to abandon.