HDR 2004 Probes Various Means of Their Social, Cultural and Economic Oppor- Empowering Nepal’S Weak, Marginalized Tunities and Reduce Poverty

Nepal Human Development

ea Human Nepal Development eot2004 Report Report 2004 Empowerment and Poverty Reduction

Even at the dawn of this new millennium, policy-makers and planners

moemn n oet Reduction Poverty and Empowerment still conceive of poverty in the narrow traditional terms of material deprivation. Yet conventional poverty reduction approaches, which focus almost exclusively on income and basic needs, have generally failed to reduce powerlessness and the isolation, vulnerability and marginality in which poor people live - the very factors that perpetuate poverty from one generation to another. For this reason, the Nepal Human Development Report 2004 concentrates on empowerment.

The empowerment approach stresses enhancing people's abilities to realize their basic rights and exercise the freedoms promised by democratic forms of governance. It creates the conditions necessary to enable the poor to take advantage of poverty-reduction opportunities by strengthening their socio-cultural, economic and political capabilities. Empowerment also entails a restructuring of these opportunities themselves:

4 on the "supply side", through national action to make state institutions more responsive to citizens and to remove existing social barriers and discriminations - especially those that disempower women, Dalits and Nepal's indigenous peoples; 4 on the "demand side", through strengthening the initiatives taken by the poor themselves through social mobilization at the grassroots level.

Together, empowerment and democratic governance structures have the potential to make development equitable and inclusive. If human development flourishes best when it draws on the indigenous capacities of a country, Nepal has many rich sources to mine. The human empowerment analyses set out in these pages pinpoint many of the kinds of intervention essential to reducing inequities and conflict at the local, regional and national levels. In so doing, the Report also provides policy signals for replicating and upscaling the promising practices that Nepal's own citizens have pioneered.

ISBN 99933-763-6-1

9 799993 376360 Nepal Human Development Report 2004

Empowerment and Poverty Reduction Nepal Human Development Report 2004 Empowerment and Poverty Reduction

Published by United Nations Development Programme Post Office Box 107 Pulchowk Kathmandu, Nepal

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ISBN: 99933-763-6-1 Printed in Nepal by Jagadamba Press Design and layout by Wordscape

ii TEAM FOR THE PREPARATION OF Nepal Human Development Report 2004

Principal Advisor Lead Author Yuba Raj Khatiwada Sriram Raj Pande

Core Team Sriram Raj Pande, Bikash Sharma and Dilli Raj Khanal

Consultants Prakash Dev Pant, Arun Kumar Lal Das, Rudra Suwal, Dilli Ram Dahal, Shiva Sharma, Ava Darshan Shrestha, Sapana Malla Pradhan, Madan Pariyar, Chaitanya Subba, Madhav Aryal, Gauri Pradhan, Rohit Kumar Nepali and Suresh C. Chalise

Editor Shawna Tropp

iii iv Foreword

The political change of 1990 in Nepal in- ject now intensely debated worldwide: the spired hope throughout the country that empowerment of citizens and its role in pro- multiparty democracy would enable all citi- ducing social and economic outcomes. zens to voice their aspirations and participate in shaping policies that would enlarge The NHDR 2004 probes various means of their social, cultural and economic oppor- empowering Nepal’s weak, marginalized tunities and reduce poverty. However, the and alienated groups – notably women, linkages among democracy, equity and pov- Dalits, indigenous people, people with dis- erty reduction are by no means automatic abilities, children and senior citizens – so or straightforward. Even in countries where as to make present power structures far more political democracy has deep strong roots, inclusive, to mitigate poverty and to reduce significant numbers of citizens feel power- the risk of violent civil strife. It highlights less to influence their governments. In the historic exclusion of the geographic ar- Nepal, with its very young democracy, poli- eas in which the present conflict began al- cies and institutions have not yet been able most 50 years ago, the Mid- and Far West- to address issues of exclusion and discrimi- ern Development Regions. The Report also nation that have provided fertile ground for examines how people can strengthen their the conflict that now threatens to reverse individual and social capacities to take the progress achieved during the last 14 advantage of the opportunities opened up years. While macroeconomic policies have by the post-1990 reform process – how they helped to enhance the economic growth rate, can hold their governance institutions ac- challenges lie ahead in making the growth countable and enhance their position in ac- pro-poor and enabling people disadvan- cessing vital resources. Even more important, taged by entrenched socio-cultural prac- this NHDR explores how the values, priori- tices to participate in mainstream develop- ties and agency of citizens at the grassroots ment processes. level can move to the centre of nationwide development efforts and thereby strengthen The Nepal Human Development Reports the social fabric of the country as a whole. prepared since 1998 have flagged issues of inclusive development, equity, and good In a world gripped by economic globaliza- governance. The 1998 Report advocated re- tion, permeated by an information revolu- orientation of the economy, society, and pol- tion, and threatened by relapses into des- ity for better human development outcomes. potic populism, all the areas cited above The 2001 Report focused on the role of gov- represent largely unmapped territory for ernance in fostering equity and diminish- social scientists and development practitio- ing poverty. It was gratifying to find that its ners everywhere. In focusing on the specific analyses and recommendations influenced situation of Nepal, the NHDR 2004 makes Nepal’s 10th Plan//Poverty Reduction Strat- two significant contributions to current at- egy Paper (2002-07). The present Report, tempts worldwide to chart the changing the third of this series, ventures into a sub- dynamics of human development:

v ! A human empowerment index whose lyzes empowerment in another, such as matrix can provide governments with health or socio-political participation. data for decisive action on economic, social and political exclusion, especially Many of Nepal’s traditions augur well for in areas of concentrated poverty; strengthening its nascent democracy. A num- ! A study of the accomplishments and ber of the proposals outlined in the last chap- shortcomings of a wide range of social ter of this Report also point to ways in which mobilization practices in catalyzing the country can capitalize on recent develop- grassroots empowerment. ments of its integration into the world economy so as to benefit a great majority of its Nepal’s ethnic and linguistic diversity, poor people and empower them to propel coupled with the sheer physical barriers equity forward for realizing the promise of that have discouraged the construction of the 1990 People’s Movement. Nepalese ev- a dense nationwide transport and commu- erywhere have a stake in discussing these nications network, poses particular chal- ideas and communicating their reflections to lenges to the country’s development – as their fellow-citizens, bearing in mind that the present insurgency has shown. In ad- democracy is never a finished work. Though dition, the social cleavages originating in the Report concludes with recommendations the caste system continue to obstruct the geared to Nepalese needs, it nonetheless ad- welfare of the vast majority of Nepalese. vances a number of ideas that may prove use- Once a means of controlling scarce labour ful to decision-makers in other countries that resources as well as preserving social or- face similar problems. der, these intricate divisions now prevent most of the country’s citizens from contrib- Like its predecessors, the Nepal Human uting to national progress as well as rais- Development Report 2004 was prepared by ing their own living standards. a team of diverse independent authors and reflects their views rather than those of the While the Report presents a frank analysis government or the United Nations Devel- of the problems that now face Nepal, this opment Programme. The authors were provides encouragement to many within drawn from a wide range of stakeholders and outside the country who are dedicated including academia, civil society, indepen- to a just and peaceful resolution of the cur- dent researchers, and those representing rent conflict. The Report also contains sign- excluded groups like the [Dalits] and indig- posts for preventing the outbreak of others enous people. The reform agenda of the final in the future. Resolving many of today’s chapter, as well as the analyses that precede troubles throughout the country calls for it, therefore draws on a wide range of experi- confronting their historic roots, both mod- ence and opinions. One of the remarkable ern and ancient. All viable democracies features of this exercise has been the fact that draw on the history of their peoples. Most its participants took the current crisis as an are multicultural, some multilingual as opportunity for reexamining Nepal’s devel- well. All depend on a continuous empower- opment agenda in its entirety and for rais- ment of their citizens for their political ing controversial questions that reach far sustainability. Moreover, as this Report beyond media headlines. We hope it will demonstrates, empowerment in one dimen- encourage leaders and planners in other sion of life, such as knowledge, usually cata- strife-ridden countries to do likewise.

Yuba Raj Khatiwada Matthew Kahane Member Resident Representative National Planning Commission United Nations Development Programme vi Acknowledgements

Many individuals and organizations made Report conveys. The members of the Na- this Report possible: tional Advisory Group were Shankar P. Sharma, Hari Krishna Upadhyaya, S. S. P. Kayasta, Ram Sharan Mahat, Roshan Karki, Contributors Bharat Mohan Adhikari, Prakash Sharan Sriram Raj Pande developed the conceptual Mahat, Amrita Agrahari, Sarita Giri, framework, distilled the background papers Krishna Prasad Sapkota, Chandra Bhadra, and shaped the reform agenda for dynamic Bina Pradhan, Dev Raj Dahal, Murari transformation. Bikash Sharma developed Prasad Upadhyaya, Mohan Man Sainju, the Human Empowerment Index and Shreekrishna Upadhyay, Arjun Karki, worked very closely with the lead author Padam Lal Bishwakarma, Parthibeshwar throughout the preparation of this Report. P. Timilsina, Mahin Limbu, Bal Gopal Dilli Raj Khanal was also constantly in- Baidya, Tunga Bastola and Santa Bahadur volved at every substantive stage. Gurung. The Project Steering Committee was chaired by Yuba Raj Khatiwada and We would also like to acknowledge the con- representations made by Pushpa Shrestha, tributions of Arjuna Parakrama for editing Lava Kumar Devacota, Bhoj Raj Ghimire, and consolidating the initial version of Hari Prasad Rimal, Shashi Kanta Mainali, chapter 4. Swarnim Wagle and Jayasingh Mohan Bahadur Karki, Mahabir Krishna Sah edited and consolidated the initial draft Malla, Ram S. Dubey, Ganga Dutta Awasthi, of chapter 5. Bishnu Upreti prepared a back- Shyam Sundar Sharma, Tunga Bastola, ground paper on conflict and Posh Raj Keshab P. Bhattarai and Sriram Raj Pande. Pandey on trade and human development. Lakshmi Narayan Prasad provided inputs Ram Kumar Shrestha provided initial sup- to the section on people with disabilities. port in his capacity as the National Project Director. We also wish to express our gratitude to the Institute for Integrated Development Studies for undertaking the survey of So- Consultations cially Mobilized Communities commis- Consultative meetings, focus group discus- sioned exclusively for this Report. Our sions and workshops brought together thanks go also to the various organizations many eminent persons who contributed in- that furnished the materials on the field valuable advice, comments and insights experiences summarized in the boxed texts not only on the themes, background papers in the chapters that follow. and drafts of individual chapters, but the varied drafts of the Report through every stage of the preparatory process. Lack of Advisory Panels space precludes naming each one here, but Together, the National Advisory Group and we would like especially to acknowledge the Project Steering Committee contributed the help of Bal Gopal Baidya, Dev Raj to sharpening the main messages that the Dahal, Murari Prasad Upadhyaya, Krishna

vii Khanal, Badri Prasad Shrestha, Sindhu to the preparation of this Report. Similarly, Nath Pyakuryal, Bina Pradhan, Suman Bhai Kaji Rajbahak furnished the secretarial Kumari Sharma, Posh Raj Pandey, Badri Raj support necessary to the Team. Pande, Bishwamber Pyakuryal, Mangal Siddhi Manandhar, Keshab Acharya, Durga We also wish to express our gratitude to Ghimire, Harka Gurung, Durga Sob and Shawna Tropp and her associates at Redac- Durga Pokharel. tions, LLC for their excellent editorial suggestions and services. The design and layout was undertaken by WordScape. UNDP Readers We would like to thank Saraswathi Menon, *** Anuradha Seth, Stefan Priesner and Omar Noman for their inputs and comments on The final draft of the Report was peer re- the initial draft of chapter 1. We would like viewed by an external panel comprising to especially acknowledge the contribution Omar Noman, Naresh Gurung, Bimal of Omar Noman who provided advice and Koirala and Mahesh Banskota - to whom guidance throughout the preparation of the we owe special thanks. Report. Heather Bryant, Nanako Tsukahara, Deepak Shrestha, Raphaelle We are thankful to Shankar P. Sharma, the Guillon and Maryline Py compiled and Vice-Chairman of the National Planning analyzed background materials and also Commission for his continuous support furnished guidance on the initial drafts. and guidance. Finally, we extend heartfelt appreciation to Yuba Raj Khatiwada, Mem- Seeta Prabhu and her team from UNDP’s ber, National Planning Commission, for his Human Development Resource Centre in leadership, advice and substantive contri- New Delhi reviewed and helped us hone butions to the preparation of the Report, as the methodology of the Human Empower- well as to Matthew Kahane, UNDP Resi- ment Index. dent Representative and Alessandra Tisot, Deputy Resident Representative for their guidance and encouragement. Editing and Production We would like to acknowledge the tireless Recognizing all the assistance cited above, work of Mukunda Raj Pandeya and his the authors assume full responsibility for team at the project office for the numerous the opinions expressed in the pages that logistical arrangements and tasks essential follow.

Keshab P. Bhattarai Joint Secretary, National Planning Commission and National Project Director, Building Capacity to Promote Human Development

viii Abbreviations

AAN ActionAid/Nepal HDR Human Development Report APP Agriculture Perspective Plan HMG His Majesty’s Government BAP Bisweshwor Among the Poor HPI Human Poverty Index BASE Backward Society Education ILO International Labour Organization BCE Before Common Era IMR Infant Mortality Rate CARE/N Cooperative Assistance and Relief Everywhere/ INGOs International Non-governmental Organizations Nepal LDF Local Development Fund CBED Community Based Economic Development LFP Livelihood and Forestry Program CBOs Community Based Organizations LSGA Local Self-Governance Act CBS Central Bureau of Statistics MDGs Millennium Development Goals CE Common Era MoWCSW Ministry of Women, Children and Social Welfare CEAPRED Centre for Environment and Agriculture Policy NEA Nepal Electricity Authority Research Extension and Development NGOs Non-governmental Organizations CEDAW Convention on Eradication of Discrimination Against PACT Private Agency Collaborating Together Women PRSP Poverty Reduction Strategy Paper CIAA Commission for the Investigation of the Abuse of RUPP Rural Urban Partnership Programme Authority SAARC South Asian Association for Regional CIDA Canadian International Development Agency Cooperation COPE Community Owned Primary Education Project SAP South Asia Partnership COs Community Organizations SAPPROS Support Activity for Poor Producers of Nepal CPN (UML) Communist Party of Nepal (United Marxist Leninist) SFCL Small Farmers Cooperatives Limited CRC Convention on the Rights of the Child SFDP Small Farmers Development Programme CWIN Child Workers in Nepal SMB School Management Board DDC District Development Committee SMAs Social Mobilization Agencies DEPROSC Development Projects Service Centre SMCs Socially Mobilized Communities DFID Department for International Development SMEs Small and Medium Enterprises EFA Education for All SNV Netherlands Development Organisation FCHV Female Community Health Volunteers SOLVE Society for Local Volunteer Effort FECOFUN Federation of Community Forestry Users SSMC Survey of Socially Mobilized Communities GDI Gender-related Development Index UNDP United Nations Development Programme GEM Gender Empowerment Measure UNICEF United Nations Children’s Fund GER Gross Enrollment Rate USAID United States Aid for International Development GNP Gross National Product VDC Village Development Committee GTZ Deutsche Gesellschaft fur Technische VDP Village Development Programme Zusammenarbeit WEP Women’s Empowerment Programme HDI Human Development Index WHO World Health Organization HEI Human Empowerment Index WTO World Trade Organization

ix x Contents

Overview 1

CHAPTER 1: EMPOWERMENT – THE CENTERPIECE OF DEVELOPMENT 11 Development challenges 11 Conceptual framework 12 Organization of the report 16

CHAPTER 2: HUMAN DEVELOPMENT AND EMPOWERMENT IN NEPAL TODAY 17 The human development index 17 The human poverty index 18 The gender-related development index 19 The gender empowerment measure 20 The human empowerment index 21 Comparison of HEI with human development indices 27 Some implications of the human empowerment index 29

CHAPTER 3: BARRIERS TO EMPOWERMENT 31 Socio-cultural empowerment 31 Economic empowerment 36 Political empowerment 44 Summation 48

CHAPTER 4: EMPOWERMENT OF WOMEN AND DISADVANTAGED GROUPS 51 Women 51 Dalits 57 Indigenous people 61 People with disabilities 64 Children 65 Senior citizens 67 Summation 68

CHAPTER 5: EMPOWERMENT THROUGH SOCIAL MOBILIZATION 69 The initiatives and their outreach 70 Actors, approaches and modalities 71 Performance of social mobilization 73 The impacts of social mobilization 74 Armed conflict and social mobilization 82 Summation 84

xi CHAPTER 6: A REFORM AGENDA FOR DYNAMIC TRANSFORMATION 85 Key findings 86 The reform agenda 87 Deepening democracy 87 Removing discriminatory laws and practices 88 Making macro policy reforms pro-poor 88 Transforming agriculture 90 Expanding equitable education and health facilities 91 Building infrastructure 91 Creating employment opportunities 91 Empowering the disadvantaged and marginalized groups 93 Investing in the organizational capacity of the poor 94

Endnotes 95 Bibliographic note 99 References 100 Annexes 107

xii BOXES 1.1 Critical elements of empowerment 15 3.1 A model school in a remote area of Okhaldhunga district 33 4.1 Group power in community-based economic development 56 4.2 Women's empowerment through decision-making 57 4.3 Historical context of Dalits in Nepal 58 4.4 Discrimination against Dalits 59 4.5 Ethnic issues from indigenous people's perspective 61 4.6 Rehabilitating the Kamaiyas 62 4.7 Overcoming disability 64 4.8 Children in Nepal 66 4.9 Children affected by conflict 67 5.1 Coverage and complementarities 70 5.2 Creation of a new Dalit caste 75 5.3 Disempowerment: issues of social justice 76 5.4 Community-managed insurance: a cushion for the poor 78 5.5 Experience from Dhankuta 79 5.6 Beyond despair: a quest for hope 79 5.7 Experience from Kanchanpur 80

TABLES 2.1 Classification of districts by human development status 18 2.2 Classification of districts by human empowerment status 27 5.1 Coverage of SMCs by eco-development region 71 5.2 Magnitude of exclusion 77

MAPS 1 Human development status by eco-development region 3 2 Human empowerment status by eco-development region 4 2.1 Human development status by district 19 2.2 Human poverty status by district 20 2.3 Gender-related development status by district 21 2.4 Gender empowerment status by district 22 2.5 Human empowerment status by district 26

FIGURES 1.1 Conceptual framework of empowerment and human development 14 2.1 Human development in rural and urban Nepal 17 2.2 Changes in HDI between 1996 and 2001 18 2.3 Human poverty in rural and urban Nepal 19 2.4 Changes in HPI between 1996 and 2001 20 2.5 Gender-related development in rural and urban Nepal 21 2.6 Gender empowerment measure in rural and urban Nepal 21 2.7 Dimensions of empowerment in Nepal 22 2.8 Dimensions of empowerment in rural and urban Nepal 23 2.9 Empowerment across ecological regions 24 2.10 Empowerment across development regions 24 2.11 Empowerment status across eco-development regions 25 2.12 Decomposition of empowerment across lowest-scoring districts 27 2.13 Disparities in HEI and HDI across regions 28 2.14 Relationship between HEI and HDI across districts ranked in ascending order of HEI 28 3.1 Sectoral composition of GDP 38 3.2 Sectoral composition of development expenditure 38 5.1 Level of empowerment of grassroots organizations 74

xiii xiv OVERVIEW

OVERVIEW Empowerment and poverty reduction

Nepal has made progress in raising living panded health services and the delivery of Nepal is hardly alone standards over the last 50 years, particu- safe drinking water, among other dimen- among the numerous larly since 1990. Yet the country’s level of sions of progress. The proliferation of non- human development remains among the governmental organizations and social mo- countries worldwide lowest in the world. Development outcomes bilization processes have increased social that have allowed have varied inequitably, manifesting them- awareness. Together with a free press and both historical and selves in gender, caste, ethnic and geo- increased communication capacity, these contemporary factors graphic disparities. The Nepal Human De- socio-economic factors have enhanced de- to perpetuate the velopment Report 2004 sets out to address mocracy and general consciousness of hu- four crucial questions that lie at the heart of man rights. Disadvantaged and margi- gaps between its the crisis facing the country today: nalized groups have used new opportuni- haves and have-nots ! Why do the poor still remain dise- ties to organize themselves and voice their mpowered? concerns. But these advances have not yet ! Why have development efforts to date reduced the powerlessness of the vast ma- fallen short of tackling critical social and jority of its citizens or significantly dimin- economic issues? ished the isolation, vulnerability and mar- ! How has this affected the process of deep- ginality in which they live. Indeed, the ening democracy? country’s low per capita growth rate and ! Why have these factors led to heighten- high disparities in income distribution have ing the conflict? limited the impact of economic growth on the poverty of that majority and starved the Nepal is hardly alone among the numer- nation as a whole of the contributions that ous countries worldwide that have allowed these very citizens could make to the devel- both historical and contemporary factors to opment of Nepal’s well-being – economically, perpetuate the gaps between its haves and socially, culturally and politically. Now, fac- have-nots. This has continued despite the ing the worst crisis in its modern history, the country adopting human development as country must take a critical step further and its overarching goal since the promulgation place the empowerment of these citizens at of its Ninth Five-year Plan in 1997 and the centre of its application of the human thereby the principle of placing all its citi- development paradigm. Without radical zens, including the poorest and most vul- shifts in current policies and resource allo- nerable, at the centre of its development cations, Nepal will not be able to sustain the strategy. The policies of successive govern- progress it has made to date. Hence the cen- ments since the restoration of democracy in tral theme of this Report. 1990 have fostered the creation of an enabling environment for increased economic The conventional anti-poverty approaches growth, higher educational attainment, ex- followed by many developing countries,

1 NEPAL HUMAN DEVELOPMENT REPORT 2004

which focus almost exclusively on income velopment equitable and inclusive. To fa- and basic needs, have generally failed to cilitate this synergy, this Report offers three reduce powerlessness and the negative at- tools: tributes usually associated with it. By con- ! A new Human Empowerment Index trast, the empowerment approach – with its (HEI), which draws together the economic, stress on enhancing individual entitlements, socio-cultural and political dimensions of capabilities, rights and freedoms – is one of empowerment and shows how the neglect the four pillars of human development and of one or more of these factors exacerbates effectively reinforces the other three: equity, disempowerment in the others and breeds productivity and sustainability. It creates grievances that erupt into lawlessness. Suc- the conditions necessary to enable the poor cessive analyses trace the manifestations to take advantage of poverty-reduction op- of these three dimensions across Nepal’s portunities by strengthening their socio-cul- development regions and the major groups tural, economic and political capabilities. of its disadvantaged citizens: women, Empowerment also entails a restructuring Dalits (oppressed community), indig- The People’s of opportunities themselves from both the enous people, the physically disabled, Movement of 1990 “supply side” – that of national action to children and the elderly. raised the aspirations make state institutions more responsive to ! An original study of social mobilization ef- of the marginalized people and to remove existing social barri- forts throughout the country, showing the ers and discrimination – and the “demand ways in which they can catalyze poverty sections of Nepal’s side” – the initiatives taken by the poor reduction, heighten empowerment and population, but could themselves through social mobilization at foster peace. The social mobilization pro- not adequately the grassroots level. In short, empowerment cess helps people move from the passive deliver on its becomes sustainable only in an environment status of welfare recipients to that of citi- where policies and institutional reforms zens who possess vital knowledge of promises of socio- complement grassroots initiatives to ad- their communities and therefore know economic betterment dress political, social and economic em- best how to effect – and direct – change at powerment simultaneously – the policy en- the local level. vironment generally termed “pro-poor”. ! A detailed nine-point reform agenda for dynamic transformation throughout Growth becomes pro-poor when it uses the Nepalese society through radical shifts in assets that the poor own, favours the sectors policies, priorities and institutions. in which the poor work, and takes place in the areas in which the poor live. The People’s Movement of 1990 raised the aspirations of REGIONAL DISPARITIES AMID the marginalized sections of Nepal’s popu- LOW ACHIEVEMENT lation, but could not adequately deliver on its promises of socio-economic betterment. Human development in Nepal has not taken Despite some improvement, the level of the place fast enough to ensure the well-being welfare indicators of the socially/economi- of its people and defuse the socio-economic cally excluded groups remain very low. Ef- sources of conflict. Nor has it reduced vast forts to raise the living standards of the poor regional disparities. The country’s national have been insufficient; inequity and inequal- Human Development Index (HDI) im- ity persist. These failures, in turn, have fu- proved marginally from 0.403 in 1996 to eled the violent conflict that now engulfs the 0.471 in 2001. But HDI in its urban areas country. (0.581) outstrips that of the rural hinterlands (0.452) where the majority of the population A strong association exists between demo- lives. HDI is lowest in the mountains fol- cratic governance and empowerment. To- lowed by the Tarai and the hills. Similarly, gether, they have the potential to make de- the far western and mid-western develop-

2 OVERVIEW

ment regions lag far behind the others; most While the high level of political empower- of the districts where HDI falls below 0.4 lie ment is a clear manifestation of democratic in these two regions (see map 1). Moreover, practices and the rising aspirations of the between 1996 and 2001, the gap in HDI be- people, low incomes, limited access to pro- tween the highest- and lowest-scoring devel- ductive assets, and a lack of gainful employ- opment regions widened from 0.074 to 0.091. ment opportunities that severely limit the Considerable disparities in the Gender-re- expansion and exercise of human and so- lated Development Index (GDI), Gender Em- cial capabilities reflect the low level of eco- powerment Measure (GEM) and Human nomic empowerment. Poverty reduction Poverty Index (HPI) also exist within and cannot take place on a sustained basis when across regions. both economic and social empowerment remains so low. These imbalances provide fer- The HEI is a powerful tool for identifying tile ground for conflict. and addressing specific issues of exclusion, incongruities among the critical aspects of While the level of economic empowerment empowerment and multiple disempo- is lowest in the mountains, this ecological werments in areas of concentrated poverty. belt also lags behind the other two in all the The national HEI (0.463) stands close to dimensions of empowerment. Nor has sig- HDI. The Index shows considerable re- nificant progress been achieved in the mid- gional disparity and mismatchings among western and the far western development re- the three dimensions of empowerment – so- gions. The typical case of multiple cial, economic and political. Economic em- disempowerment is evident in the mid-west- powerment (0.337) is the lowest and politi- ern hills and far western Tarai, where people cal empowerment the highest (0.646) – with experience very low status in all three di- social empowerment (0.406) in between. mensions of empowerment. By contrast, the

MAP 1 Human development status by eco-development region

FAR WESTERN

MID- WESTERN

FAR WESTERN MOUNTAIN China FAR WESTERN HILLS MID WESTERN MOUNTAIN

WESTERN FAR WESTERN TARAI WESTERN MOUNTAIN MID WESTERN HILLS

M CENTRAL ID W ES TE WESTERN HILLS RN EASTERN TA R AI CENTRAL MOUNTAIN

WESTERN TARAI HDI EASTERN MOUNTAIN CENTRAL HILLS Less than 0.420

0.420-0.451 CENTRAL TARAI EASTERN HILLS 0.452-0.499 India 0.500-0.547 EASTERN TARAI

3 NEPAL HUMAN DEVELOPMENT REPORT 2004

Discriminatory mid- and far western mountains show the those of Nepal have a distinct regional char- practices rooted in largest mismatch among the three compo- acter; the continued impoverishment and nents of empowerment. Its magnitude be- underdevelopment of the mid- and far west- ethno-caste system came a source of disenchantment exploited ern development regions in particular con- have dominated effectively by the Maoist insurgency; these stitute a glaring example of geographic ex- Nepalese culture for areas became the stronghold of their thrust clusion that has shut every population seg- centuries into the rest of the country. ment – irrespective of caste, religion and sex – out of mainstream development. Discriminatory practices rooted in ethno- caste system have dominated Nepalese culture for centuries. Across regions, discrimi- POLICIES AND INSTITUTIONS – nation based on patriarchal structures has ARE THEY INCLUSIVE AND often stripped the majority of Nepalese PRO-POOR? women of their dignity, self-respect and confidence. And although the National Country The empowerment process cannot become Code of 1963 and the Constitution of 1990 sustainable without eliminating en- prohibit all forms of discrimination against trenched socio-cultural norms and dis- Dalits, untouchability continues in practice. criminatory practices. Despite the many In addition, the historic exclusion of some new policy initiatives in the social sector, regions disempowers a number of Nepal’s access to and distribution of education indigenous minorities and undermines their and health facilities still remain inequi- cultures as well as livelihoods; among many, table across regions and socio-economic landlessness is increasing at an alarming rate. groups. Access to basic education contin- While discriminatory practices prevail in ues to lie beyond the reach of most poor all countries with or without legal sanction, and disadvantaged groups because of in-

MAP 2 Human empowerment status by eco-development region

4 OVERVIEW

sufficiencies on the supply side (limited in which the vast majority of the poor are physical access and poor quality) and bar- concentrated. riers on the demand side (high perceived costs in relation to foregone benefits). The Structural impediments in the agrarian sys- access of the poor even to the government- tem have also hindered the response of agri- subsidized education system is low. Some culture to economic liberalization and de- affirmative action (positive discrimina- regulations. The access of poor farmers to tions) in school and university enrolment, quality inputs, services and institutional civil service appointments, and teacher re- credit has not improved. In addition, the cruitment has been initiated; but exclu- country’s heavy concentration of industrial sionary practices persist. Despite efforts to activities with very low backward linkages devolve authority in basic social services, has severely limited pro-poor growth. De- local communities still play no significant spite structural shift in outputs, no commen- role in policy decisions or in the operation surate transformation in employment pat- and the monitoring of either education or terns has taken place. The share of agricul- health services. In the absence of univer- ture in total output has declined, nearly half Macroeconomic sal and compulsory primary education of its relative share being compensated by in- policies have been and healthcare, the deprivations of the dis- creases in the value added, particularly in the largely ineffective advantaged will continue. service sector. The composition of exports, in promoting too, reflects a shift in the economic structure, Macroeconomic policies have been largely with manufacturing exports replacing ex- pro-poor growth ineffective in promoting pro-poor growth ports of primary products. However, because and ensuring and ensuring equitable income distribu- of weak backward linkages and a concentra- equitable income tion. The magnitude, quality and distribution on a few products dependent on im- distribution tion of growth have a direct bearing on eco- ported raw materials, the benefits of macro- nomic empowerment and poverty reduc- economic policy change have been limited tion. Macroeconomic policies in Nepal have primarily to the urban business community. been reoriented to the world outside; the in- This has resulted in weak macro-micro link- dustrial, trade, foreign exchange, monetary, ages for reducing poverty and empowering financial and fiscal regimes have been lib- the poor and the disadvantaged groups. eralized. Immediately after the introduction Without pro-poor policies and institutional of the Agriculture Perspective Plan (APP), reforms at the meso level, it will be difficult both input and output markets in agricul- to strengthen macro-micro linkages and ture were deregulated and price subsidies make development inclusive. in fertilizers and capital subsidies in shal- low tubewells abolished. However, supply There has been expansion of infrastructures response in the agriculture sector has been such as transport, communications and elec- poor; terms of trade have deteriorated dur- tricity over the years, but the coverage of ing the last few years. On the one hand, the these services and their affordability for the emphasis on deregulating input and out- poor have remained very low. Lack of for- put prices in an agrarian structure domi- ward linkages and continued low access to nated by marginal and small farmers, and institutional credit have also limited the on the other, the continuous inflow of sub- growth of small and medium-sized indus- sidized agricultural products from India, tries. The predominance of unskilled work- has inhibited agricultural growth. In addi- ers in the labour market remains a barrier to tion, the level of development expenditure enhancing productivity and competitiveness. in agriculture has decreased. The slow and The country’s undeveloped market institu- piecemeal implementation of the APP has tions have obstructed the enforcement of resulted in the low diversification and pro- rules and regulations for creating an ad- ductivity growth in agriculture, the sector equate incentive structure in the market.

5 NEPAL HUMAN DEVELOPMENT REPORT 2004

Policy reforms and new initiatives taken un- tions that could only be frustrated by the der the Poverty Reduction Strategy Paper growing gap between commitments and (PRSP) since 2002 have yet to show visible outcomes. Legal, policy-related and insti- impact in promoting broad-based, pro-poor tutional discriminations persisted, limit- growth. Pro-poor policies are yet to be ing both equitable access and opportuni- worked out to strengthen the linkages be- ties to the poor and the disadvantaged in tween employment, growth, and the empow- all three dimensions of empowerment: the erment of the poor. The rate of decline in the political, the social and the economic. share of agricultural employment is much slower than the rate of decline in agriculture’s Post-1990 reforms in state, political and lo- contribution to the Gross Domestic Prod- cal institutions were either inadequate or uct (GDP), indicating that agricultural pro- too slow to promote good governance and ductivity has declined over the years. Em- ensure better delivery of development out- ployment opportunities are largely con- comes. Traditional power relations continued fined to the low-paid, low-skilled informal to obstruct the social transformation process. The piecemeal sector, which lacks any social security sys- No concerted efforts were made to change approach of the tem. With the existing low levels of employ- rules, regulations and exclusionary institu- reform process ment elasticity, economic growth, and the tional practices to offer the poor and the dis- against the backdrop current sectoral composition of growth, advantaged fair representation in either state two-thirds of the new entrants in the labour or political institutions. At the same time, of increasing popular force – 200,000 each year – are unlikely to infighting among the mainstream political awareness of human be absorbed in the labour market. Because parties intensified. Political instability in- rights fueled this dearth of employment opportunities creased; the government changed 13 times contradictions in inhibits the empowerment process, a criti- in 12 years. The political crisis deepened as cal development challenge is the creation the tenure of the local bodies came to an end Nepalese society, of new job opportunities and promotion of in 2002 – with no extension at just the time leading to violent decent work. when the escalating conflict foreclosed the conflict possibility of holding local elections nation- All in all, a “top-down” development para- wide. The dissolution of the House of Rep- digm directed by the country’s elite, coupled resentatives in 2002 – in unlikely prospects with slow progress in devolution, has found for holding new general elections – resulted itself overwhelmed by narrowly-based in a political vacuum at both central and lo- growth policies, widened income inequali- cal levels, disempowering the country’s citi- ties and increasing conflicts in the distribu- zens and weakening its nascent multi-party tion of national income and assets. There democracy. Unless radical and dynamic clearly exists a need to create an enabling en- transformation through inclusive and sub- vironment for empowerment through substantive pro-poor policy and institutional stantial shifts in policies and priorities by reforms takes place along with the restora- linking the Millennium Development Goals tion of peace, Nepal will be unable to over- (MDGs) with the PRSP, among other devel- come the current crisis successfully. opment initiatives, roadmaps and tools. EMPOWERING THE The piecemeal approach of the reform pro- DISADVANTAGED GROUPS – cess against the backdrop of increasing STRUGGLE AGAINST popular awareness of human rights fueled DISCRIMINATION AND EXCLUSION contradictions in Nepalese society, leading to violent conflict. The People’s Move- Discrimination based on patriarchal struc- ment of 1990, together with the democratic tures has resulted in stripping the dignity, constitution and the promises of the main self-respect and confidence of the majority of political parties, generated high expecta- Nepalese women, a particularly important

6 OVERVIEW

population segment because it cuts across disadvantaged groups through awareness all groups. The Constitution of 1990 stipu- raising and capacity-building, education, lates non-discrimination and equality as economic advancement, and political em- fundamental rights. However, other state powerment. laws and institutions still relegate women to inferior status. Women’s participation in development has been initiated since two MOBILIZING THE POOR AND THE decades; but the outcomes have been low. DISADVANTAGED Literacy rate of women is 22% less than that of men while maternal mortality rate is one As a vehicle of organizational capacity- of the highest in the region. Women have building, social mobilization functions very limited access to and control over re- primarily as a mechanism of empower- sources, and their representation in the gov- ment. Social mobilization reduces poverty ernment and political parties is low. because it is based on the premise that the poor are willing and able to carry out a Despite the subordination and inequality number of functions themselves to improve that women face, they are slowly moving their situations, given encouragement to towards empowerment. The political pro- form their own organizations for promot- cess, economic activities and social mobili- ing their development through their own zation are helping women to come out of efforts and participating actively in deci- exclusion. Their gains, however, have not sion-making that enhances their liveli- been balanced against discrimination/ex- hoods. clusion in terms of caste/ethnicity, religion, age and disability. Given the geographic A special study of socially mobilized com- dimension of exclusion in Nepal, the path munities (SMCs) in ten districts of all five towards empowerment for these citizens development regions undertaken for this lies in the devolution of true authority to Report scored the degree of empowerment their local governance bodies. attained in each by asking its members to rate the organization in terms of its level of The restoration of democracy in 1990 gave participation, decision-making processes, greater voice to subjugated groups and drew transparency, accountability, trust and the attention of policy makers and develop- solidarity, leadership, partnership and ment partners towards them. New institu- conflict management capacity (see figure tions have been created to promote their 1). By and large, the study confirms the rights and enhance their empowerment. But social and economic indicators reveal wide inter-caste disparity in development outcomes. Most indigenous people and Dalits Figure 1 Level of empowerment of grassroots organizations still face exclusion and disempowerment. Generalized empowerment strategies and plans of action, therefore, become meaningless if marginalized and disadvantaged groups remain isolated or ignored, particularly because mainstream development policy and programmes almost invariably fail to reach them. Given their vulnerability to sickness, economic shocks, crop failure, natural disasters, and violence, specially tailored policies, strategies and plans of action are required to benefit the marginalized and

7 NEPAL HUMAN DEVELOPMENT REPORT 2004

mismatchings in the three dimensions of litically to a responsive state through elec- empowerment revealed by the HEI. toral or participatory development processes, the early signs of today’s conflict Though social mobilization processes in could have been detected and addressed Nepal play important socio-political roles with the seriousness they merited. The cur- through greater inter-ethnic and inter-com- rent challenge for SMCs now confronting munal interactions, problems of exclusion armed conflict is continuing to engage in persist. The inclusion of ultra-poor groups whatever elements they can. While social in social mobilization processes requires an mobilization is revolutionary, revolution affirmative action policy and strategic steps need not necessarily be violent. Ongoing to involve them by creating assets and op- mobilization ventures in many districts portunities for them at the household level, have also helped to discourage people from together with appropriate capacity-building joining the insurgency. Although such ef- to create an enabling environment for em- forts are difficult to foster in the absence of powerment and a safety net for the ultimate peace, the preservation of all possible com- Targeted protection of the most vulnerable members ponents of SMCs is now essential. programmes should of the community, young and old. Thus tar- be built into holistic geted programmes should be built into holistic social mobilization efforts and SMCs REFORM AGENDA FOR social mobilization A can overcome their current tendencies to ex- ENHANCING EMPOWERMENT efforts and SMCs clude the ultra-poor while at the same time can overcome their ensure that the non-poor are also included Deepening democracy is a key to enhancing current tendencies to reduce tensions within the community. empowerment. Without strengthening demo- to exclude the ultra- cratic institutions that enhance the decision- A broad-based social mobilization effort to making powers of the disadvantaged poor while at the upscale the good practice models with strong groups, initiatives to increase empowerment same time ensure partnerships and linkages has yet to cannot be sustained. Yet once citizens have that the non-poor emerge in Nepal. It could well scale holistic experienced democratic political practices, are also included to empowerment at the grassroots level up to social imbalances are bound to surface, the regional and national levels. Such an whether because of historical or contempo- reduce tensions approach also appears critical to strength- rary factors. The fact that these imbalances within the ening decentralization, as it has significant have now exacerbated violent conflict community potential for integrating grassroots initia- throughout Nepal points clearly to a need tives with meso and macro level policies for radical, dynamic social transformation and institutions. From a policy perspective, through systemic reforms in policies and in- therefore, Nepal faces a major challenge in stitutions. The current conflict has not only replicating and upscaling the most success- eroded the social capital that existed within ful practice models. Although some donor- communities (the binding elements of trust), supported social mobilization but has also severely disrupted indigenous programmes, such as the UNDP-supported forms of social networks and institutions (the Village Development Programme (VDP), are bridging of these elements). thinly spread in many districts, they could be used as “motherboards” to upload cur- The human empowerment analysis set out rent and future vertical programmes, so as in this Report provides policy signals not only to provide services at low – even zero – mar- as to the kinds of social, economic and politi- ginal cost. cal interventions essential to reducing disparities at the local level, but also the scale of Had social mobilization over a sustained such corrective measures. So far, the devolu- period of time organized people for socio- tion of authority, capacity-building and ac- economic ends and also connected them po- countability to local bodies in accordance

8 OVERVIEW

with the principle of local self-governance vent of decolonization. As new information and the spirit of the Local Self-Governance technologies have begun transforming the Act (LSGA) of 1999 has not occurred fast topography of knowledge worldwide, mov- enough to consolidate the empowerment of ing knowledge and know-how in both di- people at the grassroots level. But devolution rections across the global North and South, will not work effectively without partner- they have also contributed massively to ships and other forms of collaboration, both changes in attitudes and behaviours. There horizontal and vertical, that ensure the com- is no reason to believe that the country that munication of the voices and choices of the gave the world the transformative experi- poor to governance bodies well beyond their ence of Buddhism in the 5th century Before immediate communities. Common Era (BCE) cannot mobilize the indigenous capacities of its diverse people to Nepal’s reform agenda should therefore con- transform mindsets legally sanctioned by centrate on the following thrusts: the 19th century Muluki Ain (Country Code). ! Deepening democracy Similarly, many of Nepal’s diverse religious ! Removing discriminatory laws and prac- traditions augur well for transformations Changing the tices of the current status of women and other long-standing ! Making macroeconomic policy reforms excluded and exploited groups. institutional pro-poor culture that ! Transforming agriculture As the Nepal Human Development Report ! Expanding equitable education and (NHDR) of 2001 stated, “Social mobiliza- governs Nepal’s health facilities tion existed in Nepal long before the con- decision-making ! Building infrastructure cept was articulated in [contemporary] processes simply ! Creating employment opportunities terms.” If human development flourishes will not take place ! Empowering the disadvantaged and best when it draws upon the indigenous marginalized groups capacities of a country, Nepal has a rich without radical ! Investing in the organizational capac- source to mine. It is therefore incumbent changes in ity of the poor. upon all the country’s stakeholders to rep- mindsets of those licate and upscale the best practice models who work within Changing the long-standing institutional that are now at hand, building transpar- them culture that governs Nepal’s decision-mak- ency, accountability and inclusiveness into ing processes simply will not take place the core of organizational and programme without radical changes in mindsets of development packages. These certainly will those who work within them. This process not be the last word in social mobilization, need not take generations. The second half simply because the process continues to of the 20th century witnessed changes that evolve – as does the concept of human de- were largely unimaginable before the ad- velopment itself.

9 EMPOWERMENT – THE CENTERPIECE OF DEVELOPMENT

CHAPTER 1 Empowerment – the centerpiece of development

Nepal has made progress in raising living have been largely unsuccessful in integrat- Development standards over the last 50 years, particu- ing the vulnerable and marginalized groups. outcomes have larly since 1990. Yet the country’s level of The governance system has remained non- human development remains among the functional because deeply rooted processes varied lowest in the world. Development outcomes of exclusion have compounded failures at inequitably, have varied inequitably, manifesting them- the institutional level and in implementa- manifesting selves in gender, caste, ethnic and geo- tion processes. The country has yet to attain themselves in graphic disparities. Poverty has become success in promoting equitable participation gender, caste, intractable. Employment opportunities and ownership, transparency and account- have become increasingly scarce. People’s ability, and the efficient use of public re- ethnic and needs have gone unfulfilled, institutions sources.2 geographic have weakened, and policies have not been disparities sufficiently pro-poor, leaving vast segments The Nepal Human Development Report of the population outside mainstream de- 2001: Poverty Reduction and Governance3 velopment.1 The outbreak of armed violence undertook a detailed assessment of the has exacerbated all these problems, push- country’s governance structures in relation ing the country into deeper crisis. to the apparent intractability of poverty. The Report identified weak governance as the root of national disappointments, “notably DEVELOPMENT CHALLENGES an absence of citizen participation in the decision-making processes that shape their Why do the poor still remain disempowered? lives…” The Foreword of that Report con- Why has development efforts fallen short of tinued: tackling critical social and economic issues? How has this affected the process of deepen- “…This may seem odd; we normally think ing democracy? And why have these factors of reducing poverty in terms of providing led to heightening the conflict? These are cru- jobs, infrastructure, healthcare and schools – cial, intertwined issues that lie at the heart of in short the social and economic aspects of the multifaceted crisis facing the country today. progress. We do not connect these benefits directly with broadening the freedoms that The decade following the restoration of multi- enable people to make real choices towards party democracy witnessed a number of eco- leading full and productive lives. Even at nomic reforms and development initiatives. the dawn of a new millennium, we still tend The adoption of a liberal, market-oriented de- to consider people’s expressions of their velopment strategy led by the private sector preferences a concomitant – even an effect – has helped to stimulate investment and of economic growth and general modern- growth. Nonetheless, development efforts ization of living conditions…” 11 NEPAL HUMAN DEVELOPMENT REPORT 2004

Given the strong association between their needs and interests.… to be able to par- sound and effective democratic governance ticipate in the life of the community.”5 and empowerment, this Report examines how the concerns of the poor can be ad- Nepal’s Tenth Plan/PRSP (2002-2007) at- dressed through empowerment that pro- tempts to redress the crisis now facing the vides equal opportunities to all, regardless country by placing peace-building and secu- of sex, caste, creed or religion – an empow- rity centre-stage and by positing a four- erment that leads to fair, impartial access to pronged approach that comprises: decision-making processes at different lev- ! Sustained high and broad-based growth, els and, equally important, equity in access- focused particularly on the rural ing and controlling resources. economy; ! Accelerated human development through Building on the analysis and recommen- the effective delivery of basic social ser- dations of the Nepal Human Development vices and economic infrastructure; Report 2001, this Report argues that Nepal ! Social and economic inclusion of the poor, Nepal can fight can fight poverty successfully only if the of marginalized groups and of backward poverty successfully government brings the empowerment regions; and only if the agenda to the center of its poverty reduc- ! Good governance for development out- government brings tion strategy, addressing the concerns of the comes that foster social and economic jus- people and delivering on promises made tice. the empowerment since 1990 with the restoration of democ- agenda to the center racy. And only under a strong and effective The Tenth Plan also offers a variety of strat- of its poverty democratic polity can the empowerment egies for drawing the excluded into the main- reduction strategy agenda be realized and become sustainable. stream of Nepal’s development. These in- The two issues are inseparable. clude new alliances between major economic stakeholders and local governments to generate employment opportunities and CONCEPTUAL FRAMEWORK increase income at the grassroots level; special monitoring of deprived areas, During the last two decades, the term “em- marginalized groups and women; and spe- powerment” has become a keyword of de- cial projects and programmes, based on na- velopment discussions worldwide, accru- tion-wide needs assessments, to improve ing as many definitions and connotations regional balance and make visible progress as the word development itself (see technical towards the MDGs. However, the Plan can- notes, annex 1.3). This Report explores its not reduce poverty significantly without sys- meaning in the context of life in Nepal to- tematic efforts to augment and harmonize day, defining empowerment as the process the three fundamental components of em- of transforming existing power relations powerment: the economic, the political and and of gaining greater control over the the socio-cultural. sources of power. Empowerment builds ! Economic empowerment, the element people’s capacity to gain understanding with which most of us are most familiar, and control over personal, social, economic concerns the expansion of access to pro- and political forces to act individually as ductive assets, including physical and fi- well as collectively to make choices about nancial opportunities, to pursue eco- the way they want to be and do things in nomic gains. Although this component their best interest to improve their life situa- of empowerment necessarily involves tion.4 This definition captures the spirit of the distribution of capital and of income- human development, which is defined as generating opportunities, economic em- “creating an environment in which people powerment also entails ensuring that can develop their full potential and lead the workings of the market and relative productive, creative lives in accord with prices can enhance the economic agency

12 EMPOWERMENT – THE CENTERPIECE OF DEVELOPMENT

of citizens. While poverty and economic social status, cultural expression and vulnerability cannot be reduced without the sense of belonging to social entities strong private sector activity, economic that range from households through growth cannot become sustainable un- youth clubs and religious congregations less it is broad-based and roughly egali- to ethnic groups and a national polity. tarian. In short, it is self-defeating to ex- This sense of belonging engenders the clude such groups as women and Dalits trust that allows societies to function and from equitable engagement in produc- enables individuals to act together to se- tive employment and other income-gen- cure, safeguard and further what they erating activities. value. ! Political empowerment involves enlarging the capabilities associated with Improvement in one dimension of empow- democratic self-governance. It ensures erment can play a catalytic role in bringing not only respect for the fundamental dig- change in the other two. Expanding human nity of the human person and the basic knowledge and capabilities certainly has an rights set out by international norms, but indirect influence on economic and political The [Tenth] Plan equitable representation in decision- empowerment.8 Nonetheless, as this Report cannot reduce making processes and institutions – es- will demonstrate, direct linkages are hardly poverty pecially those that can demand account- automatic, let alone rapid and self-perpetu- significantly ability from public servants and the pri- ating in virtuous synergies, i.e., sustainable. vate sector bodies entrusted with public Sustainable empowerment requires an inte- without resources. It includes freedom to partici- grated approach and tools to make this inte- systematic efforts pate in political dialogue, to dissent from gration operational. Thus, an integrated ap- to augment and majority or accepted views, and to mo- proach is required to address sustainable em- harmonize the bilize for change6 – a crucial agency func- powerment, which occurs when people are three tion of this sphere. Political empower- empowered socially, economically and politi- ment also encompasses legal empower- cally. To make this approach operational, the fundamental ment, generally understood as the pro- HEI has been constructed for the first time components of cess of acquiring the knowledge essen- by bringing together social, economic and po- empowerment tial to protect one’s rights and to assert litical dimensions of empowerment in a ho- them under the law. listic perspective. ! Socio-cultural empowerment entails strengthening the social fabric by aug- The Venn diagram, presented in figure 1.1 menting a complex network of human illustrates the relationships among social, qualities – both individual and collec- economic and political empowerment and tive – whose sum and synergies we call their place in the larger canvas of human “social capital”. It is the process through development. which people and groups become aware of the interplay of societal and cultural Sustainable empowerment is defined as a forces at work in their lives and learn situation where people are empowered so- how they can act individually and cially, economically and politically. The Venn jointly to influence and eventually con- diagram shows that interactions between so- trol the dynamics of these factors. Socio- cial and political empowerment without eco- cultural empowerment therefore spans nomic empowerment make people’s empow- a broad spectrum of human develop- erment unsustainable (area B). Likewise, area ment parameters, from access to safe D represents a situation where a lack of po- water, primary health care and basic litical empowerment will make social and education through skill acquisition, in- economic empowerment unsustainable. cluding the ability to use communica- Hence, promoting sustainable empowerment tion media.7 In addition, it encompasses (area A) requires an integrated empower-

13 NEPAL HUMAN DEVELOPMENT REPORT 2004

ment-led strategy for poverty reduction and forming public administrations, reform- human development. The framework also ing the legal system, decentralizing offers a potential roadmap for making empower and promoting democratic poli- powerment strategies operational and for tics and practices. measuring their impacts. ! Removing social barriers and discriminations on the basis of region, ethnicity, Building on the four critical elements of em- race, gender, religion and socio-economic powerment described in box 1.1, three es- status enable people to take advantage of sential pillars of empowerment are neces- opportunities for economic and social ad- sary: making state institutions responsive vancement to lift them out of poverty. So- to people; removing social barriers and dis- cial institutions can reinforce existing in- criminations; and strengthening local or- equalities or serve as vehicles to over- ganizational capacity and social capital.9 come them. Barriers need to be removed ! Making state institutions more respon- wherever they limit access to productive sive to people requires changes in three resources/assets (the extent of this in- branches of government – executive, leg- equality) and access to education, health, islative and judiciary. These include re- and other public services.

Figure 1.1 Conceptual framework of empowerment and human development

14 EMPOWERMENT – THE CENTERPIECE OF DEVELOPMENT

! Strengthening local organizational ca- BOX 1.1 Critical elements of empowerment pacity-building and social capital, especially through social mobilization, plays a vital role in enhancing the productiv- Certain elements are almost always present in successful empowerment efforts. The four key elements of empowerment that must ity of assets available to the poor; in pro- underlie institutional reforms are:11 tecting the fulfillment of their basic needs; and in managing risks and con- ! Inclusion/participation. Opportunities for poor people and other excluded groups to participate in decision-making are flict. Increasing both vertical and hori- critical to ensure that the use of limited public resources zontal social capital, both their density builds on local knowledge and priorities and brings about and their linkages, is vital not only to commitment to change. However, sustaining inclusion and informed participation usually requires changing the rules improving access to resources – win- so as to create space for people to debate issues and par- ning benefits for local communities – but ticipate in local and national priority-setting and the deliv- to resolving local disputes at their source ery of basic services.

and thereby curbing the spread of con- ! Access to information. Informed citizens are better equipped flict beyond a scattering of isolated in- to take advantage of opportunities, access services, exer- stances. cise rights, and hold both state and non-state actors accountable. Disclosure of information about the performance of institutions promotes transparency in government, pub- As a number of leading social scientists have lic services, and the private sector, while the laws about pointed out during the last few years, this rights to information and freedom of the press provide the last type of action is particularly important enabling environment for informed citizen action. in poor countries that have rich traditions ! Accountability encompasses the obligations of political au- embedded in “processes of cooperative and thorities, parties and representatives to explain their inten- cumulative learning, typically passed on tions and conduct to their constituencies and to voters at large and the responsibility of government agencies to ful- orally, [through which] they have worked fill their administrative and social commitments to citizens out how to survive in often difficult and by presenting transparent periodic reports of their work for harsh conditions... As countries transform public scrutiny and discussion. Citizen action can reinforce political and administrative accountability mechanisms and themselves, they have to develop different build pressure for improved governance and transparency. capacities. But it is important to recognize that they do so not merely as an aggregate of ! Local organizational capacity. Organized communities are more likely to have their voices heard and their demands individuals. National capacity is not just the met than unorganized communities. It is only when groups sum total of individual capacities. It is a connect with each other across communities and form net- much richer and more complex concept that works or associations (federations) that they begin to influence government decision-making and gain collective bar- weaves individual strengths into a stronger gaining power. and more resilient fabric. If countries and societies want to develop capacities, they These four elements are closely interlinked and can be successfully applied to four critical development objectives: ensuring must do more than expand individual skills. the provision of basic services, enhancing local and national gov- They also have to create the opportunities ernance, broadening access to markets and guaranteeing access and the incentives for people to use and ex- to justice. pand these skills. Capacity development Source: World Bank 2002a. therefore takes place not just in individuals, but also between them, in the institutions and networks they create…”10 clearly shows a two-way relationship between good governance and empower- Results within this framework can be ment.12 Empowerment – through inclusion, achieved only through genuine democracy voice, and accountability – also promotes that guarantees human rights and free- social cohesion and inclusiveness. Evi- doms. Deepening democracy is thus essen- dence further demonstrates that the break- tial to promoting transparent, responsive, down of social cohesion and trust leads to participatory, inclusive and accountable war and civil conflict.13 Consequently, governance. Development experience mainstreaming the empowerment agenda

15 NEPAL HUMAN DEVELOPMENT REPORT 2004

lies not only at the heart of deepening de- Policies, institutions and governance have mocracy, but also addressing the ongoing to be geared towards eliminating all kinds conflict in Nepal. of discrimination, including injustice and lack of equal opportunities in the socio-eco- Conventional anti-poverty approaches, nomic and political processes, so as to pro- which focus almost exclusively on income mote legitimate empowerment. In a tradi- and basic needs, have generally failed to tional, feudalistic/caste-based society, such reduce powerlessness and the negative at- political, social and economic transforma- tributes usually associated with it, notably tions have to be more broad based and pro- isolation, vulnerability and physical weak- gressive than in other societies that have ness. By contrast, the empowerment ap- managed to shed most of these shackles. In proach – with its stress on enhancing indi- the absence of such transformations, con- vidual entitlements, capabilities, rights and flict and even armed violence are prone to freedoms – is one of the four pillars of hu- erupt as desperate efforts to acquire power. man development and effectively reinforces This is what Nepal faces today. To address Empowerment the other three: equity, productivity and this situation, empowerment must come to makes growth sustainability.14 It creates the conditions nec- the forefront of the societal transformation pro-poor by essary to enable the poor to take advantage agenda. broadening of poverty-reduction opportunities by strengthening their socio-cultural, eco- human nomic and political capabilities. However, ORGANIZATION OF THE REPORT capabilities and empowerment becomes sustainable only in improving the an environment where policies and insti- The chapters that follow illustrate the in- distribution of tutional reforms complement grassroots ini- terplay of empowerment factors from both tiatives to address political, social and eco- the “supply side”, that of national policy productive assets nomic empowerment simultaneously – in and planning, and the “demand side” of short, the policy environment generally community action. Chapter 2 surveys termed “pro-poor”. Nepalese development and empowerment by geographical region, district and rural- Growth has to be pro-poor to make a dent urban locations. Chapter 3 takes a critical on poverty. Empowerment makes growth look at the socio-cultural, economic and po- pro-poor by broadening human capabili- litical empowerment in the context of na- ties and improving the distribution of pro- tional policy and institutions so as to iden- ductive assets. For a given rate of growth, tify existing policy and institutional barri- poverty will fall faster in countries with more ers to empowerment, while chapter 4 ex- equitable distribution of income than in amines these barriers from the points of view those where income inequalities are of poor and disadvantaged groups. Chap- higher.15 Evidence from Nepal clearly illus- ter 5 highlights social mobilization prac- trates how economic growth has had lim- tices in Nepal and the ways in which they ited impact on poverty reduction due to the can catalyze poverty reduction and inequitable and unequal distribution of in- heighten empowerment. On the basis of all come and assets.16 Therefore, empowerment these analyses, the final chapter sets out a must drive the policy framework for attain- series of holistic policy recommendations ing pro-poor growth. whose time for implementation has come.

16 HUMAN DEVELOPMENT AND EMPOWERMENT IN NEPAL TODAY

CHAPTER 2 Human development and empowerment in Nepal today

Just as the HDI, and others developed since, Figure 2.1 Human development seek to capture elements of life beyond per in rural and urban Nepal capita income, many countries have tried to devise indicators that can both reflect and influence short-term policy changes in particular socio-economic contexts. In this chapter, we will look at development and empowerment to date in Nepal through the lens of the major measurement tools that have evolved in the global Human Devel- and better access to social and health ser- opment Reports since 1990 and draw them vices in the towns and cities. together into a new HEI. Because this new index appears remarkably sensitive to short- When we disaggregate HDI in Nepal’s eco- and medium-term policy changes in the ecological zones, development regions and nomic, social and political dimensions of sub-regions, as well as at the district level, empowerment, it may help Nepalese citi- significant differences emerge (see annexes zens redirect their development towards 2.1, tables 1 and 2). HDI in the mountain poverty reduction, especially at the district scores lowest (0.386), followed by the Tarai level (see annexes 1 and 2). (0.478) and the hills (0.512); people in the mountain are poorer than those in the Tarai and the hills. The far western and mid- THE HUMAN DEVELOPMENT INDEX western development regions score the lowest HDI values of the country. According to the UNDP Human Develop- ment Report 2004, Nepal’s HDI score stood Not surprisingly, life expectancy at birth, at 0.504 – a graduation from low HDI sta- adult literacy and mean years of schooling tus to medium HDI. But the figure is lower and the Purchasing Power Parity (PPP) in- than all the South Asian nations except Pa- come across regions show different pat- kistan. Using the latest data available from terns that reflect the uneven distribution the 2001 census and other sources (see an- of resources country-wide and differences nex 1.1 and 1.2), the HDI value is estimated in accessibility as well. There also exist to be even lower: 0.471.1 HDI in the urban considerable inter-district disparities in areas (0.581) outstrips that of the rural ar- HDI: of the 75 districts, the lowest HDI eas (0.452) in which the majority of the score is found in Mugu, followed by Bajura, Nepalese people live (see figure 2.1). The Kalikot, Bajhang and Jajarkot, and the high- proximate causes that underlie this strik- est in Kathmandu, followed by Bhaktapur ing disparity are higher per capita income (see table 2.1 and map 2.1). 17 NEPAL HUMAN DEVELOPMENT REPORT 2004

TABLE 2.1 Classification of districts by human development status

Range of HDI values Names of districts in ascending order of HDI No. of districts

Less than 0.400 Mugu, Bajura, Kalikot, Bajhang, Jajarkot, Jumla, Achham, Humla, Dolpa, Dailekh, Rolpa, 15 Rukum, Baitadi, Rasuwa, Salyan

0.400-0.449 Doti, Mahottari, Sarlahi, Rautahat, Dang, Dhading, Sindhupalchok, Pyuthan, Darchula, Siraha, 18 Bardiya, Ramechhap, Dadeldhura, Kapilbastu, Khotang, Kailali, Parsa, Dhanusha

0.450-0.499 Dolkha, Saptari, Gorkha, Nuwakot, Kanchanpur, Bara, Gulmi, Taplejung, Sindhuli, 26 Arghakhanchi, Bhojpur, Banke, Solukhumbu, Makwanpur, Okhaldhunga, Sankhuwasabha, Nawalparasi, Mustang, Panchthar, Surkhet, Palpa, Udayapur, Baglung, Lamjung, Jhapa, Myagdi

0.500-0.549 Sunsari, Manang, Parbat, Dhankuta, Chitawan, Ilam, Terhathum, Tanahu, Morang, Syangja, 12 Kavrepalanchok, Rupandehi

0.550 and over Lalitpur, Kaski, Bhaktapur, Kathmandu 4

TOTAL 75

HDI over time western development region than in other To make the present HDI based on 2001 development regions. Interestingly the per- data comparable with the 1998 HDI, based centage increase in HDI has been less than on 1996 data, the 1996 HDI has been recal- 3% in urban areas compared to 17% in ru- culated using the same logarithmic trans- ral areas (figure 2.2). formation method for the calculation of income index (see annex 2.1, table 9). Such However, a comparison of the present HDI income adjustment increases the 1996 HDI (0.471) – based on 2001 data with the previ- to 0.403 from its original value of 0.325 for ous 2001 HDI (0.466) based on 2000 data – the country as a whole. This means that shows only a slight improvement in human the HDI has in fact increased to 0.471 in 2001 development as a whole throughout the (present estimate) from 0.403 in 1996. As the country.2 table shows the percentage increase is relatively lower in the far western and mid- THE HUMAN POVERTY INDEX Figure 2.2 Changes in HDI between 1996 and 2001 The Human Poverty Index value for Nepal is estimated at 39.6, a figure fairly close to the HPI (41.2) reported in the global Human Development Report 2004. The HPI value exceeds that of all the other South Asian countries, except Bangladesh and Pakistan. Hu- man poverty in rural areas (42.0) surpasses that of urban areas (25.2) (see figure 2.3). The incidence is most pronounced in the mountain, followed by the Tarai and the hills. Like- wise, it is heavily concentrated in the mid- western and far western development regions and is highest in the mid-western mountain – 1.7 times higher than that of the central hills where the HPI value is recorded to be the lowest. Similarly, considerable disparities in human poverty exist across districts (annex 2.1, table 3 and 4 and map 2.2).

18 HUMAN DEVELOPMENT AND EMPOWERMENT IN NEPAL TODAY

HPI over time Figure 2.3 Human poverty As with HDI, the previous 1998 HPI based in rural and urban Nepal on 1996 data has been recalculated by dropping the proportion of population without access to health services. This adjustment has reduced the 1996 HPI marginally to 48.1 from its original value of 49.7. A comparison of human poverty indices shows an improvement in HPI from 48.1 in 1996 (the 1998 HPI) to 39.6 in 2001 THE GENDER-RELATED (current HPI; see figure 2.4). Making fur- DEVELOPMENT INDEX ther adjustments in the 2001 HPI for malnourished children from 1-5 years to 1-3 The Gender-related Development Index is years to make the two reference points simply the HDI adjusted downwards for comparable, the HPI in 2001 drops mar- gender inequality. The greater the value of ginally to 38.6 (see annex 2.1, table 9 for GDI, the lower the degree of gender dispar- details). The decline in HPI has been high- ity in human development. GDI in Nepal est in the mid-western, western and cen- has a score of 0.452 as against the HDI value tral development regions with the least of 0.471; this suggests that the depth of gen- progress in the far western development der disparity in opportunities is not very region. Ecologically, there has been least great. The GDI for the rural areas (0.430) is progress in poverty reduction in the Tarai significantly lower than for the urban ar- and the mountain compared to the hills eas (0.562), indicating a higher degree of (annex 2.1, table 9). gender inequality in rural areas (see figure 2.5). Among the ecological belts, women in the mountains have a lower GDI value than

MAP 2.1 Human development status by district

19 NEPAL HUMAN DEVELOPMENT REPORT 2004

MAP 2.2 Human poverty status by district

Figure 2.4 Changes in HPI between 1996 and 2001 equality in human development indicators is more pronounced in the rural areas, especially in the mountains and far western region as indicated by their relatively lower GDI/HDI ratios. The gender disparities across districts are shown in map 2.3 (see also annex 2.1, table 6).

The GDI over the period 1996-2001 has increased to 0.452 in 2001 from 0.345 in 1996.3

THE GENDER EMPOWERMENT MEASURE

The Gender Empowerment Measure score of Nepal indicates that women are much less empowered than men in the political, economic and professional domains. Women’s share of earned income is about one half of that of men, while their participation in the political process is only those in the hills and the Tarai. Similarly, one fourth of that of men. The gap widens among development regions, women in the in their participation in professional and eastern and western regions have higher administrative jobs. Women in rural ar- GDI scores (0.475 and 0.477) than those in eas are much less empowered than those the other development regions (see annex in the towns and cities (figure 2.6). Like- 2.1, table 5). The magnitude of gender in- wise, women in the mountains and the

20 HUMAN DEVELOPMENT AND EMPOWERMENT IN NEPAL TODAY

Tarai – and especially those located in far Figure 2.5 Gender-related development western and mid-western development in rural and urban Nepal regions – are less empowered than those in other regions. The GEM value across eco-development regions ranges between 0.309 in the far western mountain to 0.511 in the western mountain. Wide disparities also exist in the level of gender empowerment across districts (annex 2.1, Figure 2.6 Gender empowerment table 7 and 8 and map 2.4). GEM in Nepal measure in rural and urban Nepal between 1996 and 2001 more than doubled, although the two figures are not directly comparable.4

THE HUMAN EMPOWERMENT INDEX (0.471). For the country as a whole, the level The new Human Empowerment Index has of economic empowerment (0.337) dips be- been constructed by bringing together the low that of social empowerment (0.406), available social, economic and political in- while political empowerment stands at dicators into a composite index of empow- 0.646 (see figure 2.7). The low level of eco- erment. It has taken a holistic perspective nomic empowerment reflects the low level to measure the empowerment level of all of income, limited access to productive as- Nepal’s citizens in the same spirit as the sets and lack of gainful employment oppor- HDI.5 The HEI value for Nepal is estimated tunities – which severely limits the scope to at 0.463, indicating a low level of empower- use the expanded human and social capa- ment; this is fairly close to that of HDI value bilities. The levels of social mobilization

MAP 2.3 Gender-related development status by district

21 NEPAL HUMAN DEVELOPMENT REPORT 2004

MAP 2.4 Gender empowerment status by district

The current level and communication outreach are fairly low on all three fronts for sustainable empow- of both economic compared to the health and education in- erment and poverty reduction. dices, resulting in the low level of social and social empowerment. While a strong correlation exists between empowerment social and economic empowerment, politi- remains far too The current level of both economic and so- cal empowerment is weakly correlated low to effectively cial empowerment remains far too low to with both economic and social empower- address the effectively address the overarching goal of ment (see also annex 2.2, table 9).6 The overarching goal poverty reduction on a sustained basis. In- higher level of political empowerment is of poverty deed, this low level of economic empower- the outcome of the higher voter turnout and ment is unlikely even to sustain existing so- candidacies per seat in local election – reduction on a cial empowerment unless economic oppor- only two available objective indicators in- sustained basis tunities are expanded to utilize the existing cluded in measuring political empower- human and social capabilities. The exist- ment. These two objective indicators avail- ing mismatching of socio-economic and po- able at the district level cannot fully cap- litical empowerment also indicates clearly ture the concept of political empower- the need for more balanced interventions ment.7 However, the higher political empowerment is a clear manifestation of people’s rising expectations. This and re- Figure 2.7 Dimensions of lated issues are discussed at length in empowerment in Nepal chapter 3 of this Report.

The rural-urban gap in human empowerment The HEI for rural areas (0.439) is about 70% that of urban areas (0.620), while the HEI for urban areas is approximately 34% higher

22 HUMAN DEVELOPMENT AND EMPOWERMENT IN NEPAL TODAY than that for the nation as a whole (see fig- Figure 2.8 Dimensions of empowerment in rural and urban Nepal ure 2.8). The level of political empowerment is much higher than social and economic empowerment in both rural and urban areas. In- deed, the urban areas surpass the rural hinterlands in terms of all three dimensions of empowerment. In addition, the rural-urban gap in social empowerment is relatively more pronounced than disparities in economic and political empowerment. For example, the social empowerment in rural areas (0.372) is just 60% of that in urban areas (0.604). The causes underlying such conspicuous disparities in social empowerment are the relatively better access to social infrastructure (education, health and communication media) and income-earn- urban areas. Similarly, the proportion of ing opportunities that the residents of electrified rural households is just one- towns and cities enjoy. The educational in- fourth of that of urban areas, while the share dex, health index and communication me- of non-agricultural employment is only 36 dia index in urban areas are 2.4, 1.6 and 3.4 percent. The rural urban disparity in po- times greater than in rural areas. Over 50% litical empowerment is relatively less pro- of the rural adult population (15+) are still nounced compared to that of social and deprived of basic capability in education economic empowerment; the political em- compared to one third of the adult popula- powerment score in urban areas is only tion in urban areas. An infant in the rural 15% higher than that of the countryside. area is exposed 1.4 times more to risk of death (70 per 1,000 live births) compared to an infant in the urban area (51.7). The ex- Empowerment across tent of chronic malnutrition measured in ecological regions terms of stunting (height for age) among The level of human empowerment de- children (under 5 years) is 1.4 times higher creases as we move from the south (Tarai) in rural areas than in the urban areas. to the north (mountain). Historically an Sanitation coverage in the rural areas is ex- area of much hardship and inaccessibil- tremely low compared to that in urban areas. ity, the mountain lags behind other regions The rural population is still deprived of mass in all components of empowerment (see fig- communications media; the communications ure 2.9). Given its limited access to eco- media score of rural areas (0.214) is only 29% nomic infrastructure and productive as- of that in urban areas (0.732) – a gap created sets, low income and limited employment largely by extremely low outreach of telephone opportunities outside agriculture, the facilities in the rural areas. mountain ranks among the lowest levels of economic empowerment. In terms of economic empowerment, the value for rural areas (0.304) is about 59% that By contrast, the Tarai plains have long of urban areas (0.518) – an outcome attrib- been an area with relatively higher level of uted largely to higher per capita income, economic infrastructure and opportuni- along with better access to economic infra- ties. Not surprisingly, the HEI value of the structure and employment opportunities. Tarai is about 32% higher than in the moun- For example, the per capita income level in tain. The higher HEI of the Tarai stems pri- rural areas does not even equal half that of marily from its relatively higher position

23 NEPAL HUMAN DEVELOPMENT REPORT 2004

Figure 2.9 Empowerment across ecological regions levels of empowerment even within those that are better-off.

Human empowerment across development regions The HEI shows marked disparities in human empowerment across the five development regions. The HEI is the highest in the central development region (0.497), followed by the eastern development region (0.486). By contrast, the mid-western (0.393) and the far western (0.399) development regions reveal the lowest HEI score – some 15% below the national average (see figure in political as well as economic empower- 2.10). These two lowest-scoring regions lag ment. The economic empowerment index behind other development regions in all di- of the Tarai is 16% higher than that of the mensions of human empowerment. The national average. Yet the social empower- level of social empowerment in the mid- ment index of the Tarai is 23% lower than western region is just one third that of the that of the hills: the higher position enjoyed national average whereas its level of eco- by the Tarai people in social mobilization nomic empowerment is about half that of outreach is largely offset by their low posi- the national HEI score. People in the mid- tion in education- and health-related indi- western development region experience far cators of social empowerment. However, if greater deprivation in health and social ca- we compare the situation across develop- pabilities than those in the far western de- ment regions, wide disparities exist in the velopment region; its infant mortality and child under-nutrition rates rank among the Figure 2.10 Empowerment across development regions highest of all development regions. It has also the lowest per capita income and other low indicators of economic empowerment compared with the other development regions. Caught among concentrated poverty, disempowerment and violent conflict, people in this region remain largely neglected; in the absence of substantial shift in national policy and priority in resource allocation, this deprivation seems unlikely to change.

Disparities in human empowerment across eco-development regions Nepal’s disparities in human empowerment become much starker when we compare HEI values across the 15 eco-development regions – products of the three eco- systems and the five development regions. The western mountain, which includes the Manang and Mustang districts with highest per capita income, has the highest rank,

24 HUMAN DEVELOPMENT AND EMPOWERMENT IN NEPAL TODAY

Figure 2.11 Empowerment status across eco-development regions

followed by the central hills, which include tainous areas of all the five development the largely urban Kathmandu Valley. The regions. Again, the mid- and far western eastern Tarai and central mountain are the mountain reveal the largest mismatch, be- other two regions that score higher than the tween their lowest socio-economic empow- national average. By contrast, the mid-west- erment levels on the one hand and, on the ern hills (0.276) and far western hills stand other, the highest political empowerment out as the two most disadvantaged regions; levels. While their high political empow- their HEI values are, respectively, 40% and erment reflects the rising expectations of 30% lower than the national HEI score (see people in these regions, their low levels of figure 2.11). social and economic empowerment point to a denial of access to opportunities in Social empowerment exceeds economic em- which citizens could expand and utilize powerment in all the eco-development re- their capabilities. So great a mismatch can gions except for the mid-western mountain, also be taken as a source of disenchant- central, eastern and western Tarai. The mis- ment that leads to conflict in various forms. match between social and economic empowerment is less pronounced than the gap between socio-economic and political em- Inter-district disparities in human powerment across the regions. The dispar- empowerment ity observed in socio-economic empower- The values of HEI disaggregated at the dis- ment scores across these regions suggests trict level show that the citizens of an uneven distribution of basic social ser- Kathmandu – followed by Lalitpur, Kaski, vices and economic opportunities. The mid- Bhaktapur and Morang – enjoy far greater western hills and far western Tarai illus- empowerment than citizens in other dis- trate the typical case of multiple tricts. By contrast, the lowest levels of em- disempowerment, where people experience powerment are found in Rolpa, followed very low status in all three dimensions of by Rukum, Doti, Mugu, Dolpa, Humla, and empowerment. The gap between social Kalikot districts. The level of human em- (and/or economic) and political empower- powerment in Kathmandu (0.66) is more ment is particularly striking in the moun- than four times that of Rolpa (0.14), about

25 NEPAL HUMAN DEVELOPMENT REPORT 2004

MAP 2.5 Human empowerment status by district

The higher four times that of Rukum (0.17) and more Sindhuli8 (0.10), followed by Rolpa, Dailekh than twice that of Doti, Mugu, Dolpa, Humla, and Dolpa. The lowest political empower- level of political and Kalikot, the most deprived and ment scores are found in Manang (0.08), fol- empowerment disempowered districts in terms of almost lowed by Rolpa, Rukum and Doti. In 45 dis- relative to social all indicators and components of empow- tricts, social empowerment falls below the and economic erment. national average, while 43 have economic empowerment may and political empowerment values below Classification of districts in five groups in the national average score. well be a source of terms of HEI values (see table 2.2 and map disenchantment 2.5) shows that most low-scoring districts The analysis of human empowerment that culminates in are located in the mid-western and far west- among the low-scoring districts reveals a varied forms of ern development regions. Only five districts – considerable mismatch between political Kathmandu, Lalitpur, Kaski, Bhaktapur and and socio-economic empowerment in most conflict Morang – enjoy an HEI level within the 0.6- districts (see figure 2.12). These are also the 0.7 range. Altogether 55 of the 75 districts isolated districts suffering from high levels of the country fall into the low human em- of socio-economic deprivation and violent powerment category (less than 0.5) and the conflict. Mugu, Dolpa and Humla clearly remaining 20 districts into the medium hu- typify case of social exclusion in which man empowerment category (0.5-0.7). None people remain markedly deprived of social reaches the high human empowerment cat- capability attainment or social empower- egory (above 0.8). Moreover, the low HEI- ment relative to their economic empower- scoring districts for the most part rank at ment levels. Six districts of the mid-west- the bottom rung in terms of all three compo- ern and far western regions (namely Mugu, nents of empowerment. Social empower- Bajhang, Kalikot, Dolpa, Bajura and ment scores are lowest in Mugu (0.05), fol- Jajarkot) rank lowest in the health capa- lowed by Humla, Dolpa, Rolpa, Jumla and bility score (below 0.30) – just half the na- Bara. Economic empowerment is lowest for tional health score.

26 HUMAN DEVELOPMENT AND EMPOWERMENT IN NEPAL TODAY

Table 2.2 Classification of districts by human empowerment status

Range of HEI value Names of districts in ascending order of HEI No. of districts

Less than 0.300 Rolpa, Rukum, Doti, Mugu, Dolpa, Humla, Kalikot, Bajura, Bajhang, Jajarkot 10

0.300-0.399 Jumla, Achham, Baitadi, Sindhuli, Gorkha, Darchula, Dailekh, Salyan, Ramechhap, 16 Khotang, Manang, Bhojpur, Taplejung, Gulmi, Myagdi, Rautahat

0.400-0.499 Pyuthan, Baglung, Palpa, Dadeldhura, Solukhumbu, Mahottari, Dhading, Lamjung, Sarlahi, 29 Rasuwa, Panchthar, Siraha, Dolkha, Udayapur, Sankhuwasabha, Okhaldhunga, Argakhanchi, Surkhet, Sindhupalchok, Makwanpur, Bara, Dhanusha, Mustang, Kapilbastu, Syangja, Kailali, Nuwakot, Tanahu, Ilam

0.500-0.599 Parsa, Saptari, Bardiya, Kavrepalanchok, Parbat, Nawalparasi, Terhathum, Kanchanpur, 15 Sunsari, Rupandehi, Dang, Dhankuta, Jhapa, Banke, Chitawan

0.600-0.699 Morang, Bhaktapur, Kaski, Lalitpur, Kathmandu 5

TOTAL 75

With the exception of Rolpa, Rukum and (0.451) while Tarai ranks second to hills Doti, where people experience multiple in terms of HDI. Similarly across the de- disempowerment – relatively lower posi- velopment regions, HEI places central de- tions in terms of all components of empow- velopment region at the top position erment – marked gaps exist between the po- whereas the HDI places the eastern devel- litical and socio-economic empowerment opment region in the top position and the among these lowest-scoring districts. And central development region in the third again, the higher level of political empow- place (figure 2.13). The degree of regional erment relative to social and economic em- disparity is relatively more pronounced in powerment in these districts may well be a the HEI than that of HDI. This suggests source of disenchantment that culminates the importance of empowerment approach in varied forms of conflict. to poverty reduction.

As with the regions, the ranking of districts COMPARISON OF HEI WITH based on the HEI is not compatible in some HUMAN DEVELOPMENT INDICES cases. For example, the HEI ranks Chitwan

This section explores how the human em- Figure 2.12 Decomposition of empowerment powerment index and its components are as- across lowest-scoring districts sociated with human development and its associated measures, particularly the HPI. The ranking of regions and districts based on HEI is first compared with the ranking based on HDI followed by a simple correlation and bivariate regression analysis.9 The overall score of HEI is fairly close to that of HDI, and this suggests that the level of human empowerment is reflected in the low level of human development. Al- though the ranking of regions based on HEI is broadly comparable with the ranking based on HDI, it is not compatible in some cases. Ecologically, HEI places Tarai (0.476) at the highest position followed by the hills

27 NEPAL HUMAN DEVELOPMENT REPORT 2004

Figure 2.13 Disparities in HEI and HDI across regions at the 6th position while the HDI places it at the 12th position among the 75 districts. HDI places Syangja at the 7th position but HEI places it at the 25th position. Among lowest scoring districts, Rolpa ranks lowest followed by Rukum in terms of HEI while HDI rank them at the 11th and 12th positions respectively. Further, the gap between the top- and bottom-scoring districts is much wider in the case of HEI than in the case of HDI. For instance, HEI score of Kathmandu, Lalitpur and Kaski, is more than three times higher than that of two lowest-scoring districts – Rolpa and Rukum – whereas the HDI score of top three districts is more than two times higher than that of the lowest HDI scoring districts, Mugu and Bajura.

Figure 2.14 illustrates how the ranking of districts based on HEI compares with the HDI scale. Interestingly, the HDI exceeds HEI at the lower end of development scale where human poverty is concentrated. HEI may therefore serve as a powerful tool for

Figure 2.14 Relationship between HEI and HDI across districts ranked in ascending order of HEI

Name of districts in accending order of HEI

28 HUMAN DEVELOPMENT AND EMPOWERMENT IN NEPAL TODAY

identifying the areas of concentrated pov- that HEI captures poverty-reducing oppor- erty (multiple disempowerment) and un- tunities, as well as social economic and po- sustainable empowerment (mismatch be- litical capabilities, more than the HDI and tween socio-economic and political em- other associated indices such as GEM and powerment) crucial for devising success- HPI. A comparison of the ranking of the dis- ful policy interventions on poverty reduc- tricts based on HEI with those based on HDI tion and sustainable human development. indicates that HEI is a more powerful index, particularly at the lower end of the de- Although HEI correlates significantly with velopment scale. The composite index of HDI, the correlation is not perfectly uni- human empowerment – consisting of a form; much of the variation in the relation- larger set of short and medium-term ship remains unexplained (see annex 2.2, progress indicators crucial to measuring ca- table 9). Some interesting findings emerge pabilities and choices in all spheres of life from a simple bivariate/regression analy- (the social, political and economic) – can sis conducted to investigate how different serve as a powerful tool for devising more components of HEI, HDI and HPI are in- successful national policies and strategies Exclusion fluencing each other. The findings show:10 for reducing poverty and for transforming [therefore] works ! The effect of HEI on HDI is stronger than inequitable distributions that contribute to against the that of HPI. conflict. HEI can thereby help us enhance norms of civilized ! Progress in social empowerment will the process of human development. have more impact on HPI than progress order, damaging in HDI. As the technical note (annex 1.3) indicates, both individuals ! Economic empowerment is more pow- HEI still calls for refinement. It certainly and society as a erful than per capita income in explain- does not supplant HDI as a critical pillar of whole – often ing HPI. human development. However, it does cap- irreparably ! HEI appears to be more responsive to ture a concept of human development that change in economic empowerment than goes beyond what HDI and other associ- similar unit change in other compo- ated measures now provide. It enriches our nents of empowerment. understanding of the current levels of disparities in capabilities on all fronts and thereby points to the nature of interventions SOME IMPLICATIONS OF THE required to address specific issues of exclu- HUMAN EMPOWERMENT INDEX sion by measuring levels of mismatchings and multiple disempowerments in areas of Like other indices, the HEI provides a pic- concentrated poverty. ture of the levels of human empowerment and how these levels in social, economic and To return to some of the central questions political terms manifest themselves across raised by the Nepal Human Development regions. From a policy perspective, one im- Report 2001, HEI shows how and where ex- portant question that arises is what HEI, as cluding whole regions or groups of people compared with HDI and its associated mea- from one or another area of empowerment sures, can add to our information about the violates their human rights. In addition, broader concept of human development. these exclusions deprive the nation as a whole of the contributions these deprived As indicated above, although the HEI value citizens could well make to economic, so- for Nepal as a whole is fairly close to that of cial, cultural and political life. Exclusion HDI, indicating the robustness of HEI, much therefore works against the norms of civi- of the variability in the relationship remains lized order, damaging both individuals and unexplained. It seems to stem from the fact society as a whole – often irreparably.

29 BARRIERS TO EMPOWERMENT

CHAPTER 3 Barriers to empowerment

Policies and programmes alone cannot sarily a Hindu society” and as “cultural plu- Nepalese culture guarantee empowerment. Unless people’s ralism within a hierarchical caste system”, is rooted in individual and social capabilities can en- certainly since the 18th century. The many hance their position in competitive bargain- communities subordinated by the unifying discriminations ing or to hold institutions accountable, they King Prithvi Narayan Shah and his follow- based on religion, may not be able to take advantage of the op- ers “responded with accommodation and which have portunities created by reforms. Both policies assimilation, but also with out-migration or perpetuated both and institutions must be examined to assess resistance, sometimes violent”.3 their relevance to the challenges faced by the practices of poor – and the very causes of their poverty. Nepalese culture is rooted in discrimina- untouchability and tions based on religion, which have perpetu- the exploitation ated both practices of untouchability and of women SOCIO-CULTURAL EMPOWERMENT the exploitation of women. It has also worked against the preservation of the cul- As chapter 1 pointed out, socio-cultural em- tures of various ethnic groups, including powerment is the process through which indigenous people of the country. Without people and groups become aware of the so- eliminating these biases, the empowerment cietal and cultural forces at work in their process cannot become sustainable. Despite lives and learn how to influence their dy- the provisions in the Constitution of 1990, namics – particularly those of deep-rooted which clearly state the freedom to “profess social inequality and exclusion. If we un- and practice one’s own religion”, Hindu derstand the term “culture” in the widely values have exerted vast influence over the accepted sense of all the capabilities and nation’s other religions and its general cul- habits acquired by human beings as mem- tural practices. Although the National bers of societies, we can begin to appreciate Country Code of 1963 abolished the caste the weight of Nepal’s deeply hierarchical system, it remains very much alive in prac- social structures with their interlocking sys- tice. Indeed, the National Country Code tems of caste and ethnicity.1 Despite the amended in 1992 has upheld the preserva- country’s 100 ethnicities, 92 languages and tion of “traditional practices”.4 Even the nine religions, its people can be broadly ex- Constitution contains some degree of am- amined in five cultural categories: caste-ori- biguity in this regard. gin Hindu groups; Newars; the ethnic/tribal groups (nationalities); Muslims; and “oth- The low status of women, systems of patri- ers”.2 These categories have significantly lineal descent, patri-local residence and rules impeded the pace of empowerment. of inheritance interact to isolate and subordinate women throughout the country. Nepal has been described as a “Hindu king- Gender issues are thus interwoven system- dom and Hindu polity, though not neces- atically into the basic social structure of 31 NEPAL HUMAN DEVELOPMENT REPORT 2004

Nepalese society, as are other traditional cul- ! Developing an integrated cycle of sec- tural values. Deeply embedded, they obstruct ondary education linked to the labour the empowerment of the poor and the disad- market and widely accessible to girls and vantaged groups throughout the country. to poorer students; ! Improving the quality of university and other tertiary education; The effectiveness of ! Introducing greater cost recovery and tar- educational reforms geting public subsidies to students from In 1951, Nepal could boast a literacy rate of poor households, thereby restructuring a only 2%; 321 primary schools and 11 high system that subsidizes the upper classes, schools constituted the whole of its public especially because of skewing towards the educational establishment. By 2002, the lit- tertiary level; eracy rate had mounted to 54%, the number ! Developing a school management sys- of primary schools to 25,927, lower second- tem; communities now manage their ary schools to 7,289 and secondary schools own primary schools, with a view to re- Unless primary to 4,350.5 Under the 1971 National Education ducing costs, broadening access and education is made System Plan, the government assumed the improving quality through local super- compulsory, the full cost of primary education and 75% of the vision. costs of vocational school. However, the principle of ! Encouraging further private sector invest- state-controlled education system discour- ment in education. In 2001, private universalization aged people’s participation in school man- schools constituted 8.7% of all primary will not become agement, undermined educational quality schools, 17.8% of all lower secondary operative and also ignored the deep-rooted discrimi- schools and 21.3% of all secondary natory practices of the school system. schools, percentages that are increasing.6

The new Constitution of 1990 guaranteed The Tenth Plan/PRSP (2002-07) envisages the universal right to education and there- the extension of education in the spirit of fore encouraged the introduction of pref- Education for All (EFA). Accordingly, EFA erential policies for educating girls and 2004-2009 was initiated at the beginning other disadvantaged groups. Since 1992, 2004. This programme is expected to cope the government has taken a number of ad- with the country’s low literacy and the low ditional steps to increase access to educa- access of girls, Dalits, ethnic communities, tion and improve its quality, including the disabled persons and people living below the establishment of the National Education poverty line – and to achieve the goal of “edu- Commission to frame policy and oversee cation for all by 2015”. A number of innova- the implementation of a variety of tions have therefore been undertaken in the programmes and projects aimed at enhanc- education sector to ensure universal primary ing basic and primary education. Since education and to attain equity. Nonetheless, 1996, early childhood education (at the pre- despite all these initiatives and others, primary level) has been emphasized in con- Nepal’s education system has been unable to junction with the slogan “Education for all” enhance the access of women, disadvantaged to meet the goal of universal education by indigenous communities and Dalits. The 2015. School management also changed, shortfalls reinforce the impression that state- with added emphasis on the community subsidized education benefits the privileged: management of schools. ! Neither “backward” communities nor settlements in the mountain and remote The Ninth Plan period (1997-2002) wit- hill regions have adequate access to edu- nessed additional reforms, notably: cation; the rural/urban gap persists; ! Ensuring that within one decade, all chil- ! Less than half of all children complete dren enrolled complete a five-year pri- the primary cycle and only 10% of those mary education; entering grade 1 reach grade 10, even af-

32 BARRIERS TO EMPOWERMENT

ter repeating several times; less than half change of 1990 fostered many new policy of the secondary level students pass the and programme initiatives, including: School Leaving Certificate (SLC) exami- ! The 1991 National Health Policy aimed nation; pass rates in higher secondary at expanding primary healthcare facili- and at the University are comparable. ties for the rural population and giving priority to preventive health services so These inequities stem both from the supply as to reduce infant and child mortality side (limited physical access and poor qual- rates. ity of schooling) and the demand side (high ! Emphasis on community participation perceived cost of education in relation to at all levels of healthcare especially foregone benefits). They also suggest that through the participation of female com- unless primary education is made compul- munity health volunteers (FCHVs) and sory, the principle of universalization will traditional birth attendants. And, in- not become operative. The high subsidies deed, the 45,000 FCHVs have contrib- to tertiary education, the politicization of uted significantly to polio eradication, educational institutions and the rigidity of Vitamin A distribution and family general education have all discouraged reforms of the present education system. In BOX 3.1 A model school in a remote area of addition, most teachers receive little train- Okhaldhunga district ing; no provision exists for pre-service training, there is very limited in-service train- The story of Sansari Primary School located in Khijijichandesori, a small village in the western part of Okhaldhnuga district, is a bright ing, and teachers are poorly motivated be- example of what can be achieved by communities' commitment and cause of inadequate incentives, coupled combined resources, especially in rural and disadvantaged areas. with few options for career growth. In 2000, this site was selected by the DDC for the establishment of a COPE school. The community launched the Sansari Primary School, conducting grade one at the house of a local resident. They formed Moreover, community participation in the a School Management Board (SMB). As part of the COPE programme's education system has remained low, in approach to ensuring the sustainability of schools, it initiated a link large measure because the centralized sys- between the school and the Sansari Community Organization, a local UNDP-supported community savings group. The VDC sup- tem of teacher recruitment, resource alloca- ported the operation of the Sansari savings group from then on. tion and monitoring school operations have The community constructed the COPE school building by mobilizing excluded community members from deci- local resources; each household contributed 10 days' labour to erect a structure with four rooms and a two-room toilet. sion-making processes. Local elites continue to dominate even the school manage- Currently, 83 pupils, 43 of them girls, are receiving primary edu- ment committees, silencing the voices of cation (from grade 1 to 4). The school serves the disadvantaged community of the VDC; most of its students come from a "back- women, Dalits and disadvantaged/indig- ward" Sunuwar group. Its three local female teachers are all trained. enous groups. However, there are some in- The SMB has approximately Rs. 60,000 in the school fund, which is novative community-managed schools, invested with the Sansari savings group at an interest rate of 24%, most of which is used for school operation costs, while the remain- which have proved to be quite successful der is reinvested in the school account. The SMB meets every as demonstrated by the UNDP-supported month to discuss issues related to the school. It has formed a very Community Owned Primary Education active parent-teacher association, which regularly provides feed- (COPE) project in some districts of Nepal back to teachers about the performance of the students. This school is regularly monitored by the SMB, along with a monitoring (see box 3.1). committee formed by the parents.

The Sansari Primary School has become the model community school of the entire district, often cited as such by the district Education The effectiveness of health reforms Office in commenting upon government-run primary schools. The In 1971, Nepal had only 58 hospitals, 277 performance of the students is highly rated, as parents are happy medical doctors and 2,098 hospital beds.7 with their children's learning achievements.

By 2001, these figures had increased, respec- Source: Community Owned Primary Education Programme (COPE), tively, to 89, 5,415 and 5,310, plus 3,921 UNDP/HMG/N 2004. nurses.8 As in education, the democratic

33 NEPAL HUMAN DEVELOPMENT REPORT 2004

planning practices. ternal mortality stems in large measure ! According priority to the supplies of from the low level of access to ante- drugs by increasing domestic produc- natal, delivery and post-natal care; tion. about 90% of births take place at home ! The special focus of both the Second and without professional health assis- Long-term Health Plan (1997-2017) tance. and the Nepal Health Sector Plan ! Gradually, HIV/AIDS has emerged as a (2002-2007)9 on improving the health major problem;13 WHO estimates more of the most vulnerable groups, nota- than 50,000 cases and a prevalence rate bly by placing technically qualified of 0.29%.14 health personnel in under-served areas. Nepal’s public sector per capita health alloca- ! The formulation of Nepal Health Sector tion – US$ 2 per annum in 1999/00 – com- Reform Strategy to move the health sec- pares unfavourably with the average per tor towards strategic planning and sec- capita annual cost of US$ 12 for essential Life expectancy in tor wide approach. This strategy has healthcare alone in a developing country in Nepal remains three programme outputs – prioritized the mid-range of the HDI.15 Even the fiscal one of the lowest essential health care services, decentral- year 2003/04 allocation still stood at US$ 2 per in South Asia, ized management of health facilities and capita. Accessing public healthcare outlets and the expansion of public/private part- procuring the drugs they prescribe consumes while its infant nership. The Nepal Health Sector Strat- 59% of household expenditure on health. The and maternal egy Implementation Plan (2004-2009) regional distribution of available facilities is mortality rates provides operational guidelines to also highly uneven, with the mid-western and rank among the implement the activities of the Health far western development regions and moun- highest with Sector Reform Strategy during the first tain ecological belts lagging far behind the five years. The main focus of the Plan others. Life expectancy in the mountain trails appalling is to expand outreach and improve the that of Tarai by 7 years; rural people gener- statistics quality of essential healthcare services ally live 10 years less than their urban coun- with special emphasis on the poor and terparts. vulnerable groups. For the most part, the country’s health ser- Nonetheless, life expectancy in Nepal re- vices are centrally managed – with little mains one of the lowest in South Asia, participation by local communities in either while its infant and maternal mortality health policy decision-making or the moni- rates rank among the highest with appall- toring of health service delivery. Procure- ing statistics: ments, staff recruitment and transfers, and ! Nepal’s infant mortality rate (IMR) of 64 supervision of local health institutions remain per 1,000 live births in 2001 compares outside local purview, one factor in the short- ill with that of 17/1,000 in Sri Lanka.10 falls of local authorities in fostering a sense The female rate (96) is slightly lower of stakeholding in the delivery of public than the male IMR (100) and rural ba- health services. Moreover, the state has not bies are exposed 1.6 times more to risks set out clear roles and responsibilities for the of death than their urban counterparts. central and district level health authorities re- ! Maternal mortality, a key indicator of garding decentralization. Nor has it provided reproductive healthcare services, an effective system to ensure the quality and stands at 539 per 100,000 women aged fair pricing of private sector health services. 15-49 years,11 one of the highest in the Although the involvement of the private sec- world;12 27% of all deaths of women tor in service delivery has expanded service aged 15-49 years are attributed to child- availability, these services remain costly, ef- birth complications. This level of ma- fectively shutting out the poor. And in the

34 BARRIERS TO EMPOWERMENT

absence of a universal healthcare system, health benefits that they promote. But ac- the poor, women and disadvantaged groups cess of the Nepalese people to drinking wa- remain deprived of the basic services neces- ter services is low. Although drinking wa- sary for a decent life in a competitive society. ter coverage reached 71.6% of the population in 2002, the quality of water supply is Although the rural health service infrastruc- very poor. Contaminations at source, at ture is both large and relatively equitable in water collection points, in water collection its penetration of the countryside, the quality jars and in storage within households, of its services remains extremely poor because among other dangers, are common in Nepal, of a number of administrative problems: contributing significantly to high rates of ! Inadequate number of medical and para- water-borne diseases such as diarrhea, dys- medical staff positioned in Primary entery, jaundice, typhoid and cholera. In ad- Healthcare Centers and Service Centers; dition, arsenic contamination in tube-well ! Inadequate residential accommodation water is now emerging as a major problem. for health staff; Universalizing ! Unsatisfactory supply and maintenance Although drinking water from pipes, tube- of equipment, medicines and vaccines. wells and boreholes is regarded as safe, its primary health is quality from different sources is poor, and even more urgent. Unless these needs are met by the regular does not meet either the former or recently Until it becomes budget, the health infrastructure will remain defined national standards. In 2001, it is be- the fundamental an unproductive investment. lieved that only 4.4% of the total population had access to first-grade quality water and goal of health Encouraging community participation in only 6.4% to the medium-quality standard. policy, all other primary healthcare by their members’ in- Approximately 60% of the population falls goals and volvement in decision-making processes into the third category supplied with a basic objectives matter would give local units greater responsibil- service level of drinking water facilities. Cur- ity for planning and budgeting, collecting rent plans call for providing 25% of the total very little fees, and determining how collected funds population with high-quality drinking wa- and government transfers would be used. ter, while almost the entire population now This would living with the basic service water supply ! improve incentives for fund collections; will move into the second category, having ! increase accountability; access to medium quality water by 2015. ! ensure appropriateness of services to the local service centre; and Government budgetary allocations to the ! minimize administrative costs. drinking water sector have declined in recent years, from approximately 4% in 1990 to 2% The effectiveness of local institutions for the of the entire budget in 2002. Greater resources promotion of primary healthcare requires demanded by the Melamchi Water Project are empowering local bodies through the devo- likely to crowd out the resources available to lution of power and other necessary support. small drinking water projects. The Universalizing primary health is even more sustainability of water supply projects has also urgent. Until it becomes the fundamental remained challenging. The process of urban- goal of health policy, all other goals and ob- ization has exerted strong pressures for faster jectives matter very little. extension of water supply services with greater resource demands.

Drinking water Drinking water facilities have strong impli- Social protection cations for the domestic work burdens of The social protection system safeguards women and girls, time-saving for more pro- people who cannot find jobs, who cannot ductive work, sanitation services and the work because of sickness, disability, old

35 NEPAL HUMAN DEVELOPMENT REPORT 2004

age or maternity, who have lost breadwin- and other income risks. To reduce their fi- ners, or who suffer from natural disasters, nancial vulnerability and to achieve a de- armed conflict or forced displacement. Be- cent standard of living, people must have cause poverty in Nepal is deep and wide- access to basic public goods, including ba- spread throughout a large population sic and primary education, primary base, vulnerability is high because of the healthcare and nutrition, drinking water and large number of people near the poverty sanitation. Progress in poverty reduction, line for whom even a marginal income fluc- empowerment and human development in tuation can have serious consequences. Nepal is critically dependent on expanding Limited government budgetary capacity the provision of basic social services. constrains a broader provision of significant social assistance arrangements. Al- The present economic reform programme though a variety of formal safety net risks marginalizing people who cannot com- programmes (such as food for work, cash pete in the marketplace or survive its vagar- transfers and food subsidies) exist, their ies. New labour market arrangements such as The present coverage is very limited; only a small frac- contracting, sub-contracting and outsourcing economic reform tion of the population has been benefited pose new threats to the social security of the programme risks from these schemes. labour force. Protecting people from income marginalizing risks and actually empowering them economi- Nepal recently initiated universal social se- cally require putting extensive social protec- people who curity through the introduction of social as- tion institutions and practices in place. cannot compete sistance to the citizens above the age of 75, in the the disabled, and widows. No single institu- marketplace or tion in Nepal has the mandate for super- ECONOMIC EMPOWERMENT vising social security affairs. Provident survive its funds and pensions, the most popular so- Macroeconomic policies and vagaries cial security arrangements, are confined to empowerment the government sector and some of the pub- Macroeconomic policy affects the empow- lic enterprises that cover no more than 5% erment of people because of its impacts of the labour force. on allocations of resources and access to them, along with income distribution and Nepal has a predominantly informal wealth. Generally, macroeconomic policy economy; the formal sector can currently pro- that promotes economic growth empow- vide job opportunities to less than 10% of ers the poor by creating or expanding in- the employed labour force. This means that come-earning opportunities. It also helps social protection schemes designed for the generate public resources for pro-poor de- formal sector can cover a very small pro- velopment programmes. However, the portion of the population at this stage of impact of macroeconomic pro-growth development. While a number of social se- measures on poverty itself depends on the curity schemes exist in the public enter- magnitude and quality of growth.17 And prises, they are neither uniform nor justi- this quality, in turn, depends on: fied in terms of the financial capabilities of ! the sources of growth, these bodies – an issue that often provokes ! its distribution, labour conflicts and strikes. Moreover, as ! its employment potential, and most of such benefits remain unfunded,16 ! access to productive resources. the sustainability of such schemes is ques- tionable and constitutes another major Policies that influence the allocation of re- policy challenge in this general area. sources will have differential impacts on output and employment. For instance, high Access to basic social services is one of the levels of deficit financing can adversely major protections against unemployment impact the poor through rising interest rates

36 BARRIERS TO EMPOWERMENT

and price effects. Another way in which prioritize agriculture in the growth process, macroeconomic policies impact empower- evolved an integrated agriculture development is the inclusion – and extent – of price ment strategy, and aimed at enhancing pro- controls, licensing rules and other regula- duction and productivity through modern- tions. If the policy is too interventionist and ization and commercialization of produc- favours one segment of the population at tion. To accelerate growth, APP has pro- the cost of others, distributional conflicts posed substantial increases in investments usually emerge. Conversely, policy that does in irrigation, rural roads, fertilizer and tech- not promote efficiency with an equitable nology. However, several recent policy ini- structure of incentives leads to further tiatives have ignored the APP phasing strat- marginalization of the poor. The relative egy for abolishing input and output subsi- strength and bargaining power of various dies. Thus, as subsidies in fertilizer, irriga- socio-political groups influences the direction and credit have been withdrawn, ad- tion and magnitude of macroeconomic poli- ministered food prices have been lifted too – cies themselves. Consequently, we must on the assumption that relative changes in look at the nature of macroeconomic poli- the agriculture input and output prices Policy that does cies as both the cause and effect of empow- would boost the growth of the sector not promote erment. Their content and pattern decisively through production incentives and thereby efficiency with influences the speed and direction of em- help solve people’s livelihood problems. an equitable powerment overall. Heavily regulated and protected for several structure of decades until the mid-1980s, Nepal’s indus- incentives leads The effectiveness of trial sector has experienced the de-licensing to further macroeconomic policies of industries; the opening of foreign invest- marginalization During the last two decades, Nepal’s mac- ment up to 100% equity participation; a re- of the poor roeconomic policies have undergone dras- duction in tax rates; and the privatization of tic changes in orientation from the domes- government enterprises, among other re- tic to the external. As in many other devel- forms. In addition, the liberalization of trade, oping countries, before the mid-1980s, the foreign exchange and tariff regime were simi- state determined the country’s economic larly undertaken to promote market-orien- policies and undertook various interven- tation – on the premise that a vibrant indus- tions that encouraged distortions and inef- trial sector with sufficient backward linkages ficiencies, fueling huge fiscal and external would evolve, ensuring broad-based growth. sector deficits and high inflation. As a result, structural adjustment programmes Monetary and financial sector reforms have were introduced to stabilize the economy, included the deregulation of interest rates to reorient production structures towards and liberalization of financial activities for the market system, to create the “correct” private sector participation in banking and incentives for increased private sector in- finance. This has led to an expansion of volvement in economic activity and to in- micro-finance activities, resulting in im- crease openness. These reforms emphasized proved access to institutional credit. Still, maintaining short-term stabilization and however, less than 20% of the country’s promoting long-term growth – and were in- population now has access to institutional tensified after the restoration of multi-party credit. Since 1998, Nepalese monetary system so as to further openness and the policy has been made more flexible with a liberalization of the economy.18 view to lowering interest rates and promoting investment. The agricultural sector has witnessed major policy reforms since the mid-1990s. The The trade liberalization initiated in the mid- Agriculture Perspective Plan (APP), 1980s accelerated during the early 1990s. launched in 1996, underscored the need to Almost all imports are now subject to an

37 NEPAL HUMAN DEVELOPMENT REPORT 2004

Figure 3.1 Sectoral composition of GDP As figure 3.1 shows, a major structural shift in output has occurred, together with the spectrum of macroeconomic reforms. The contribution of agriculture to total output has declined. Nearly half of the fall in relative share of agriculture has been compensated by increase in the value added of finance and real estate, followed by trade, restaurants and hotels, manufacturing and construction, and

Source: MoF 1990/1991 and 2002/2003. social services. The composition of exports, too, reflects this shift in economic structure. Manufacturing exports have overtaken food and animal products. However, because of Figure 3.2 Sectoral composition of development expenditure weak backward linkages, as well as concentration in a few products based on imported raw materials, the benefits produced by this sector have been extremely uneven – indeed, limited largely to the urban business community. Although fiscal balance has been main- tained over the years, this has been derived from cuts in the level of development expenditure – mainly in the economic sectors. As Source: MoF 1990/1991 and 2002/2003. figure 3.2 indicates, the agriculture sector has been hard hit. open general licensing system. Tariff rates have been reduced and their structure ra- All in all, the macroeconomic policy re- tionalized. With expectation of wider mar- forms have had limited impact on promot- ket opportunities and broad-based growth ing broad-based growth. Consequently, de- under the World Trade Organization (WTO) spite moderate economic growth rate dur- trade regime, additional trade openness ing the 1980s and the 1990s, it has not been policies are now being pursued. Foreign pro-poor.19 Agricultural growth has been direct investment of up to 100% has been too slow to diversify its production struc- invited in most of the areas, except for cot- ture. Growth in other sectors has been ur- tage industries and those related to secu- ban biased, generating income-earning op- rity. Nepali currency has been made fully portunities to limited groups – with the re- convertible in the current account. None- sult of rising income disparity. The with- theless, the exchange rate against Indian drawal of subsidies without proper se- rupee remains pegged. quencing and a phase-out plan consistent with APP has impaired growth in the agri- On the fiscal front, a restructuring of vari- cultural sector. Moreover, the inflow of sub- ous tax slabs has been carried out with dras- sidized food grains from India has gener- tic cuts in the tax rates. The value added tax ally discouraged producers. This inflow, to- (VAT) has been introduced by replacing gether with poor infrastructure and weak sales and other small indirect taxes. A new and fragmented markets has undermined income tax law has also been enacted. Fis- any expected supply side response.20 To cal balance and macroeconomic stability complicate this general effect, low and de- now have priority. In accordance with clining public investment has had adverse Nepal’s PRSP, public expenditure has be- effects on expanding support services and gun focusing explicitly on poverty reduc- introducing new technology in agriculture – tion programmes, an initiative reflected in thereby discouraging private sector invest- the Medium-Term Expenditure Framework. ment in agriculture as well.

38 BARRIERS TO EMPOWERMENT

In the meantime, Nepalese industry has and commodities encouraged upward price faced stiff competition because of high adjustments. transaction, transit and infrastructure costs, as well as low productivity.21 The liberal industrial policy failed to establish backward Building economic infrastructures linkages because of insufficient policy in- and strengthening markets centives to industries based on domestic The development of basic infrastructure ser- resources – producing both poor macro and vices like transportation, communication and micro linkages. The collapse of small and electricity contribute to sustainable growth, medium industries further accentuated the poverty reduction and empowerment of the problem. All these factors have thwarted people by reducing transaction costs and en- growth in agriculture and industry, se- couraging economic activities that help pro- verely limiting the economic empowerment mote and heighten production for the mar- of poor farmers. kets – all these kinds of actions lead to shifts in the production and employment struc- Although financial liberalization has in- ture.22 The communication network facili- The outbreak of armed deed helped expand the number of finan- tates information flow about prices and conflict has further cial institutions, it has broadened financial marketing prospects. Economic infrastruc- squeezed financial tures also contribute to developing human services largely in the urban areas – and services in the rural largely for their big business houses. But capital by ensuring better access to schools efficiency in the financial system has re- and health facilities.23 areas; only a few micro- mained a critical problem. This has also finance institutions and prevented reducing the gap between lend- non-governmental Transportation ing and deposit rates. Similarly, financial organizations have been liberalization has resulted in closures and Nepal’s road network expanded from 1,198 mergers of rural financial networks where km in 1962 to 15,905 km in 2000; of the working in the the need for financial services is growing. country’s 75 districts, 60 are now connected countryside and The coverage of micro-finance institutions by road. However, the most remote districts supporting the income- and backward areas still lack roads. More- is low and their service costs high. The generating activities of phase-out of the priority sector credit over, the existing road network is predomi- the poor programme and the withdrawal of the in- nantly fair-weather and low quality. This has terest subsidy without alternative arrange- hobbled farmers’ shifting from subsistence to ments has also created a resource crunch commercial production. In the regions with for poor farmers. Moreover, the outbreak of extended road networks, commercial agri- armed conflict has further squeezed finan- culture has been evolving rapidly, indicat- cial services in the rural areas; only a few ing roads play a key role in agricultural micro-finance institutions and non-govern- transformation. The weak supply response mental organizations have been working of the rural economy has adversely affected in the countryside and supporting the in- the poor and disadvantaged.24 High costs come-generating activities of the poor. But and inferior road services also have hin- because of their limited outreach and the dered the growth in the small-scale indus- fact that the hard-core poor are less likely to tries and business services that benefit the be mobilized in the micro-credit process, the poor. In addition, the transportation of es- overall impact of financial liberalization on sential commodities to the remote areas has poverty reduction and empowerment has become prohibitively expensive since the been insignificant. In the absence of com- withdrawal of transport subsidies. The in- petitive marketing structures and effective ability to expand agricultural roads in line monitoring and regulatory mechanisms, the with APP has adversely impacted the cre- deregulation of state-controlled prices and ation and expansion of rural markets.25 the privatization of both essential services Even in the areas where transport networks

39 NEPAL HUMAN DEVELOPMENT REPORT 2004

are available, the poor and vulnerable re- the Village Development Committees main unprotected because of the lack of (VDCs) still have no telephone facilities.27 complimentary investments. Although access to information has improved, it has faltered in publicizing eco- Road construction and maintenance nomic opportunities. Likewise, such gaps through a participatory approach is rela- have adversely affected the functioning of tively new. The Tenth Plan, LSGA and an- the markets that directly impact vulnerable nual budgets together spell out the roles and groups. responsibilities of the various agencies, including local bodies and user groups. But Moreover, the allocation of funds during the the institutional mechanism to promote ef- last few years indicates low priority to rural ficiency, check leakages and enhance capac- telecommunication services28 – despite the ity at the local level has yet to evolve.26 The fact that the Nepal Telecommunication Cor- APP has also prioritized the construction poration has adequate resources to give the of agricultural roads to expand intra-dis- hinterlands far greater attention. Policies and Even in the areas trict road networks and link infrastructure institutional arrangements for new incen- where transport facilities with production, exchange and tives to attract the private sector to telecom- networks are marketing. Since private sector involvement munications have recently been initiated; available, the poor in the establishment and expansion of air but have so far been inadequate. This has services gained momentum after liberaliza- affected not only timely availability, but also and vulnerable tion, it is hoped that the recent adoption of affordability of telecommunication services. remain unprotected a build-own-operate-transfer act will en- because of the lack courage private investment in roads as well. of complimentary Electricity Directly or indirectly, Nepal’s inadequate Nepal has been able to harness only 0.63% of investments road network has undermined the empow- its hydropower potential.29 Until the mid- erment process. First, the delivery of basic 1990s, the government accorded priority to services to the areas that still lack road con- the medium and large-scale hydropower nections has been extremely difficult – a prob- projects, all executed by the state-owned lem compounded by the conflict situation, Nepal Electricity Authority (NEA). The lib- which denies people such essential items as eral policies embodied in the Power Devel- basic foods. Second, the absence of roads has opment Policy of 2000 encouraged joint ven- constricted social mobilization and commu- ture companies and local entrepreneurs to nity participation in development activities. invest in small and micro-hydro projects. Finally, inadequate or non-existent trans- But only 31.1% of households nationwide port infrastructure has constrained access had access to electricity in 2001.30 to markets and information. While 82.5% of the urban population en- joys electricity, only 21% of rural households Communication have access to this form of power. Electric- The restoration of democracy accelerated the ity has been expanded to only 41% of the expansion of the communication sector. A VDCs.31 The distribution among the ecologi- large portion of the households in both ru- cal regions is even more uneven; only 6.1% ral (50.3%) and urban areas (64.8%) has ac- and 9.8% of households living in the far cess to radio. The distribution of telecom- western mountain and far western hills, re- munication services, however, shows a clear spectively, have access to electricity. Further, urban bias. While 20.2% of urban house- per unit electricity prices in Nepal are the holds have television sets, the rural areas highest in the South Asian region, directly account for only 1%. The national ratio of affecting the competitiveness of industry 14 telephones per 1,000 people still concen- and also taking it well beyond the reach of trates largely on towns and cities; 55% of the poor.

40 BARRIERS TO EMPOWERMENT

The generation and distribution of electric- structures that promote the expansion of ity has focused on the grid system, which has medium and small enterprises.32 prevented penetration into the rural areas. Electricity (including alternative sources of The economic reforms of 1991 also focused energy) plays an important role in the em- on market institutions. The new enterprise, powerment process; it expands opportunities foreign investment and technology transfer for initiating a number of productive activi- and privatization acts had special provisions ties, including processing industries, and re- to enhance market functioning. The years duces the drudgery of women. However, the since have witnessed the establishment of NEA cannot reach out to rural areas in part numerous financial institutions, co-opera- because of the prohibitive power purchase tives, insurance companies and micro level agreements it signed with private investors. credit institutions.33 Nepal is now a member of the WTO, whose rule-based trading The creation of the Power Development arrangements will in principle provide pre- Fund in 2003 has provided some incentives dictable market access, increased flows of to local entrepreneurs. Similarly, new ini- information, enhanced access to technol- Per unit electricity tiatives taken to allow cooperatives to dis- ogy – and thereby expand economic prices in Nepal are tribute electricity at the village and commu- choices and opportunities. The country the highest in the nity levels should contribute to expanding must build upon past reforms so as to ben- South Asian region, access in the rural areas. The hydro-power efit from its membership of this global development strategy of the past failed to trade body. directly affecting the take account of more efficient and cost-ef- competitiveness of fective ventures; without the establishment Despite some positive results, the reforms industry and also of an inventory, expensive projects were of the 1990s did not achieve the outcomes taking it well selected and implemented. The frequent desired for a variety of reasons, among beyond the reach of hikes in electricity rates have encouraged them:34 inefficiency and made electricity increas- ! The initial conditions, including exist- the poor ingly unaffordable at the same time. The ing physical infrastructure, along with preconditions attached to the payment of rules and regulations required for mar- the electricity purchased by the NEA from ket development, were not duly consid- joint venture companies have escalated elec- ered; tricity prices on an annual basis (see annex ! The reforms were focused mainly on 3, table 1). Consequently, the NEA has to trade, industry, finance and taxes – with bear huge liabilities – which, again, are little attention to institutional reform of shifted to the consumers, including poten- the agricultural sector; tially productive enterprises. ! Deregulation policies were expedited without addressing market efficiency and governance-related issues. Market institutions Market institutions and enforcement Consequently, medium and small enter- mechanisms play decisive roles in influenc- prises either collapsed or found themselves ing the pace and direction of economic em- unable to expand in the absence of institu- powerment. Institutions that foster widely tional incentive structures. This not only shared and participatory growth enhance weakened the link between agriculture and both income and employment opportuni- non-agricultural sectors, but also prevented ties. Reductions in transaction costs, guar- the transformation of the urban informal antees of property rights and enforcement sector. Emphasis on openness and free trade of contracts improve efficiency and gener- policies alone can adversely affect pro-poor ate greater resources for poverty reduction. growth if the institutions that safeguard the In short, market institutions become pro- interests of various socio-economic groups poor when they have inbuilt incentive are not created.

41 NEPAL HUMAN DEVELOPMENT REPORT 2004

Current multilateral and regional trading share of employment has been much arrangements limit the scope for promot- slower than the decrease of this sector’s ing human development. For example, contribution to GDP; this indicates that ag- while the WTO Agreement on Agriculture ricultural productivity has diminished may work to stabilize food prices and en- over the years. sure food security, cheap imports can put the livelihood of traditional farmers at risk. Employment opportunities have been con- Similarly, the Agreement on Trade-related fined largely to the informal sector – low- aspects of Intellectual Property Rights paid, low-skilled and lacking any social se- (TRIPS), which requires the protection of curity system. Self-employment still accounts patent rights on seeds, agriculture inputs for more than 67% of livelihoods – and of the and pharmaceutical products, may ad- total self-employed population, 78% work in versely affect food security. The Agreement agriculture. This has deepened underem- on Subsidies and Countervailing Measures ployment throughout the sector, now esti- (ASCM) may limit the incentives necessary mated at 32.3%.35 Moreover, according to the Emphasis on for promoting small and medium enter- labour force survey, 73.3% of the non-agri- openness and free prises. And the Agreement on Trade-related cultural labour force works in the informal trade policies alone Investment Measures (TRIMS) limits a sector. Together with agricultural activities, can adversely affect country’s scope for imposing conditions on largely unorganized and self-employed in foreign investors for the use of local materi- nature, informal sector employment has pro-poor growth if als. Depending upon their impact on pro- mounted as high as 93.6%. And as two-thirds the institutions that duction structures, liberalizing a national of these workers are unskilled, they have little safeguard the economy and increasing commercialization access to training opportunities.36 Unorga- interests of various can – and usually does – affect women nega- nized, bereft of collective bargaining power tively as well. All in all, failing to mitigate and job security, they continue to operate socio-economic such impacts through policy interventions outside the realm of public policy. groups are not can disempower people and widen the de- created velopment gap. Policy reforms and new initiatives taken in accordance with the PRSP have yet to show visible impact in promoting broad-based eco- Employment opportunities nomic growth and employment opportuni- Wherever land distribution and access to re- ties – resulting in weak links between em- sources are deeply inequitable, employment ployment, growth and the empowerment of opportunities become critical to sustaining the poor. Employment elasticity of growth and restoring dignity. Labour-intensive has remained low, estimated at 0.30-0.35 production techniques, skill development over the last two decades. Consequently, if programmes and social security in the infor- Nepal attains a growth rate of about 4.0%, mal sector, coupled with the growth of agri- as it did during the Ninth Plan, only cultural productivity and the creation of al- 100,000 jobs can be created annually. At the ternative jobs outside agriculture are essen- present level of economic growth, two- tial to enhancing empowerment. thirds of the new entrants into the job market are unlikely to be absorbed into the Various economic policy initiatives have working labour force. Empowerment de- fostered certain structural shifts in employ- mands the creation of new job opportuni- ment. Whereas in 1981, about 91% of ties and the promotion of work consistent Nepal’s economically active population with human dignity. engaged in agricultural activities, only 66% did so by 2001. Manufacturing and The education system also lacks vocational trade contributed largely to this shift. How- training that would lead to jobs.37 To date, ever, the rate of decline in agriculture’s private sector undertakings have proceeded

42 BARRIERS TO EMPOWERMENT

without standard policy guidance, result- Access to institutional credit is even more ing in poor quality of training. Institutional skewed in favour of big business houses and arrangements in vocational and training large farmers. In a traditional system of col- programmes overlap. The government has lateral-based bank lending, land ownership not yet set clear-cut policy or created mecha- virtually ensures access to institutional credit. nisms to administer and monitor such This practice has largely barred small, mar- programmes. On the one hand, inflexible ginal and landless households from institu- labour law has encouraged an informalization tional borrowing, as 86% of formal credit is of employment, while, on the other, the ab- granted against the collateral of land and sence of social security in the informal sec- other tangible forms of property. The micro- tor has increased vulnerability in the labour credit system, which provides loans without market. This situation jeopardizes the em- collateral, has covered less than 200,000 powerment of wageworkers. households, some of which are actually non- poor. All in all, while the deregulation of financial services and reforms of the finan- Access to productive assets cial sector have enhanced the stability of All in all, while the Land in Nepal is a major productive asset the financial system, it has not yet extended deregulation of and a traditional source of power. Land financial services in the rural areas. financial services ownership is also a symbol of economic and and reforms of the social status. Poverty is therefore closely linked to the distribution of land-holding Food security financial sector have and its productivity.38 In Nepal, a wide dis- Food security is a state in which all people, enhanced the parity exists in the distribution of land, with at all times, have physical and economic stability of the inequality of 0.544 as measured by the Gini access to sufficient, safe and nutritious food financial system, it coefficient.39 According to the Agriculture to meet their dietary needs and food prefer- Census 2002, 47% of the land-owning ences for an active and healthy life.41 High has not yet extended households owned only 15% of the land population growth, slow growth in agricul- financial services in with an average size of less than 0.5 hect- tural output and lack of adequate livelihood the rural areas ares, whereas the top 5% owned nearly 37% opportunities, among other causes, have of the land. Almost 29% of rural households translated into various types of food secu- do not own any farmland.40 The gender di- rity problems among different population mension of land ownership is even more sectors. Nepal’s uneven distribution of in- critical; men own almost 92% of these hold- come and productive assets like land and ings. Land ownership also exhibits caste and credit, along with wide differences in soil ethnic disparities; most Dalits are landless. productivity, have contributed to the country’s high incidence of poverty and Past land reform efforts could ensure ten- food insecurity, with marked consequences ancy rights to just 2% of Nepal’s agricul- for people’s productive capacity and their tural households. Land redistribution was capability for acquiring adequate education limited and its benefits went less to the land- and health care. Food insecurity has there- less than to existing landowners. Land re- fore perpetuated poverty and disempo- form has been a major politico-economic werment. This kind of problem can be ad- agenda item of the governments of the last dressed only through strengthening the decade. Recently, the government an- agricultural production base, reinforcing nounced the establishment of a land bank participatory institutional arrangements, to provide credit to the poor for land pur- fostering gender-sensitive rural and agri- chases. This constitutes a beginning; to cultural development strategies, and pro- make land reform meaningful, much more viding social protection to people at high needs to be done. income-risk.

43 NEPAL HUMAN DEVELOPMENT REPORT 2004

Some policies and programmes have been and trigger distributional conflicts.48 In- implemented for food security during the last deed, armed violence has intensified in several years. These include the implemen- countries where state institutions have lost tation of the APP, the food-for-work their power and failed to address acute in- programme, school feeding programmes, equities among social groups in the distri- nutrition programmes, food transportation bution of political opportunities, assets, subsidy to deficit districts, and incentives for state jobs and social services.49 Conversely, local food production in these areas. None- well-functioning institutions lead to good theless, hunger and food scarcity have be- policies, which in turn make the institu- come major problems in the food deficit dis- tions themselves accountable to their tricts. The increase in armed conflict and re- grassroots constituents. lated violence has exacerbated this problem, as most of the food security programmes run by the government have been disrupted. The democratic constitution and reform initiatives Well-functioning In Nepal, the promulgation of the demo- institutions lead to POLITICAL EMPOWERMENT cratic Constitution in 1990 restored politi- good policies, which cal freedom and civil rights. Bestowing sov- ereign power on the people, the Constitu- in turn make the Democracy and freedom are the two main pillars of political empowerment. Basic po- tion accepts constitutional monarchy and institutions litical and liberal rights strengthen human embraces multi-party parliamentary de- themselves capabilities and facilitate people’s abilities mocracy. It guarantees basic human rights accountable to their to define their needs constructively.42 De- to every citizen, including freedom of the grassroots mocracy enables citizens to draw attention press, the right to information and consti- to these needs and to demand appropriate tutional remedies for violations of these constituents public action.43 Only in a democratic envi- rights. It also guarantees property rights and ronment can basic preconditions of devel- prohibits all forms of discrimination in the opment, including minimum legal and con- name of religion, caste, race and sex. Though tractual structures and property rights be not directly enforceable, social, economic enforced effectively.44 Institutions enhance and cultural rights are embodied in the fun- economic performance through incentive damental principles.50 structures, which promote efficiency and reduce uncertainties.45 Participatory democ- In addition, Constitutional provisions en- racy delivers higher-quality growth and able various institutions to better the func- squarely addresses poverty and empower- tioning of a democratic system. It proposes ment issues.46 In addition, democratic in- a two-tier parliamentary system and grants stitutions improve growth performance and executive power to the Council of Minis- reduce poverty in low-income countries by ters, accountable to Parliament. The Su- strengthening the rule of law, transparency, preme Court is entrusted with the power to accountability and good governance.47 interpret the Constitution and protect the fundamental rights of citizens. Other Con- Generally, though, in less developed coun- stitutional bodies include the Auditor- tries, formal democratic institutions tend to General’s Office for maintaining financial be constrained by preexisting power rela- discipline in government-funded organizations and structures that often dominate tions, the Election Commission for conduct- these fledgling bodies from the outset of ing free and fair elections, the Commission their establishment. In traditional societies for the Investigation of the Abuse of Author- with strong discriminatory practices, these ity (CIAA), which controls the misuse of poorly functioning institutions magnify power, and Constitutional Council, which external shocks, delay policy responses recommends appointments to these and

44 BARRIERS TO EMPOWERMENT

other bodies. The Constitution has also es- accountability continued to delay or circum- tablished the National Security Council for vent decisions. Service providers are still civilian control of the military. non-responsive and discriminatory practices continue unabated – while tradition- However, just as policies and programmes ally privileged groups continue to dominate cannot guarantee empowerment, constitu- the civil service.52 tional provisions alone cannot strengthen democracy. Their translation into action de- Fair elections could not be institutionalized. pends upon existing practices and enforce- Grassroots voters’ low level of political con- ment. Effective courts, responsive electoral sciousness, abetted by high illiteracy and the systems, a functional Parliament and local various seductions of demagoguery and radi- legislative bodies, and free and open media, cal populism, obstructed their judgments of along with participatory institutions at both which parties worked for them, committed the central and the local level are essential to Nepal’s development. The Election Com- to inclusive governance and effective deliv- mission has been ineffective in maintain- ery systems. In a democratic system parlia- ing checks and balances in the voting pro- Institutional mentary committees have to be proactive cess. reforms initiated and influential. They have to ensure that during the last the law-making processes create viable poli- Only since the enactment of new law in 2001, 14 years have cies and institutions. Likewise, they have has the CIAA been able to take steps to- been only to carry out their monitoring and supervi- wards improving governance. Some politi- sory responsibilities so as to make govern- cians and civil servants have been arrested incremental, ments accountable to the people through and further investigation is going on. falling far short Parliament. Parliament’s committees, notably under the of deepening proactive influence of the Public Accounts democracy Committee, also took steps to expose and State institutions, service delivery contain corruption.53 Similarly, in 2001, Par- and governance liament enacted a bill to ensure financial To build an accountable governance sys- transparency in the political parties. Yet no tem, a high-level commission investigated major reforms were undertaken in the jus- abuses of authority during the Panchayat tice system. Major policy decisions were regime. Similarly, the High-Level Adminis- taken without consultation with Parlia- trative Reform Commission formed in 1992 ment. The Auditor-General’s Office could made a number of recommendations, in- not perform effectively. Nor could the Pub- cluding a reduction in the number of min- lic Service Commission expand the access istries and districts, the downsizing of the of the disadvantaged to state institutions. civil service by 25% and its depoliticization, The security forces remained outside the and the initiation of corruption control mea- democratic process. In short, institutional sures. However, in the absence of legisla- reforms initiated during the last 14 years have tive reforms, the downsizing of the bureau- been only incremental, falling far short of cracy could not be carried out. The patron- deepening democracy. age and client-based system gradually grew dominant, leading to rampant corruption. The recommendations of Mallik and Ad- Only in the late 1990s were several reforms ministrative Commissions, as well as sev- initiated – but on a piecemeal basis. Tem- eral Parliamentary Committees have not porary hiring and frequent transfers were been implemented in the spirit of reform es- discouraged to check the politicization of sential to democratic functionality.54 The the bureaucracy.51 Some civil service posi- bureaucracy’s lack of norms and account- tions were either frozen or abolished. None ability measures, accompanied by both the of these steps, however, could adequately patronage system and the absence of legal reduce the size of the bureaucracy. Lack of and institutional provisions for represen-

45 NEPAL HUMAN DEVELOPMENT REPORT 2004

tation of the deprived in the state institu- zational strength and proximity to vot- tions, have resulted in ineffective service de- ers. Although Nepal’s major political livery and discriminatory practices. Even parties have strong organizational net- attempts to rectify existing structural weak- works at the grass-roots level and repre- nesses in society through the promulgation sent almost all segments of society, they of parental property rights to women or the are still in the process of democratizing introduction of new land ceilings could not their structures and enforcing the gover- be realized because of either inadequate nance system. A hierarchical party lead- provisions or Supreme Court rulings. Al- ership and exclusiveness in the organi- though the new Anti-Corruption Act has zation continue to block changes in po- given more power to the CIAA, corruption litical power and social relations. continues unchecked in Constitutional bodies and other governance institutions. Uniform and transparent criteria in selecting candidates for parliamentary The judicial system remains weak, dispens- elections have yet to be developed, along Uniform and ing justice only sluggishly. The inefficiency with structures for financial transpar- transparent criteria of the judiciary in acting on the cases before ency. The conflicts of interest among con- in selecting it is illustrated in annex 3, table 2.55 The ab- tending groups and coalitions on the one candidates for sence of free legal services and the sheer hand and, on the other, the lack of strong physical remoteness of the courts further inner party democracy in major decision- parliamentary limit the access of the poor to the justice sys- making processes have led to splits in elections have yet to tem. Moreover, the judiciary has failed to the major political parties. As annex 3, be developed, along hold the executive and legislative branches tables 4 and 5 demonstrate, the political with structures for accountable. All these factors have led at parties have also failed to ensure fair rep- times to illegitimate attempts to assume the resentation of varied socio-cultural financial judicial role, most notably the insurgents’ groups at all levels of their hierarchies – transparency efforts to establish their own judiciary. leading to the contradictions that have permitted the insurgents to gain more The dominance of the privileged class in and more strength. Despite high voter Parliament, which has failed to monitor the turnout, the democratic process contin- executive or formulate policies that could ues to exclude the representation of the help abolish various discriminatory prac- disadvantaged groups. tices and augment social welfare mechanisms in the spirit of the Constitution is il- Social preparedness through political mo- lustrated in annex 3, table 3. Six years were bilization to enact reforms for adequate rep- needed even to pass the Political Parties resentation of women and the underprivi- Regulation bill. Despite several attempts, leged could not take place. Livelihood issues Parliament also failed to adopt the Election were slighted by both Parliament and the Reforms bill. The inability to check ad hoc media, which focused instead on trade and appointments or to control financial irregu- investment issues that benefit only a small larities has obstructed both the Public Ser- segment of Nepalese – certainly not Dalits, vice Commission and the Auditor- indigenous people and the women who General’s Office.56 have formed national organizations to protect their rights, but find themselves still largely powerless in the face of inadequate Political institutions, people’s institutions to address discriminatory representation and social justice practices. This institutional impotence Political parties play a vital role in deep- contradicts the obligations of the state to ening democracy – if they are responsive guarantee the fundamental rights of all to the electorate.57 They can help trans- Nepalese citizens in accordance not only form society by mobilizing their organi- with the country’s Constitution, but the 16

46 BARRIERS TO EMPOWERMENT

commitments it has made concerning hu- attempt to implement fiscal decentraliza- man rights at international forums (see an- tion.61 Local governments lack the legal nex 3, box 1).58 power to coordinate and supervise any local level programme. There are no clear-cut models for full-fledged participation by the Local institutions and social beneficiaries or institutional provisions to transformation ensure the representation of the socially Local bodies and civil society institutions excluded in local governance. play a catalytic role in transforming society, encouraging citizens to voice their views and Effective decentralization depends essen- mobilizing pressure to make institutions tially on local capacity-building through so- work for the poor. The democratic change of cial mobilization. NGOs have been instru- 1990 provided an enabling environment for mental to such processes in addition to their Non-governmental Organizations and civil promotion of health, education, and drink- society institutions to expand their activi- ing water services, as well as micro-credit ties throughout the country. Many are in- programmes. Many have scored major suc- Despite the volved in social mobilization, local infra- cesses in targeted programmes for the poor, attention garnered structure building, providing basic social ser- Dalits and deprived communities. However, by the vices and protecting human rights. Further, the sustainability of NGO-supported decentralization in 1992, the democratically elected govern- programmes has aroused concern. Many process, the ment strengthened decentralization pro- NGOs are urban-based and externally cesses for the devolution of authority by en- funded. Lack of financial transparency, devolution of power acting separate VDC, Municipality, District weak coordination and monitoring has un- and authority to the Development Committee (DDC) and the Lo- dermined their performance and delivery. local bodies has yet cal Bodies Election Acts, all of which facili- to occur tated the establishment of elected bodies at the grassroots level. Institutional failures and violent conflict In the spirit of local self-help, the Build Our The People’s Movement of 1990 that re- Village Ourselves programme was stored multi-party democracy generated launched in 1994 to boost development high expectations among the Nepalese. In from the grassroots.59 The Local Self-Gover- a newly democratic milieu, various soci- nance Act, adopted in 1999, is regarded as etal groups naturally voiced their concerns a milestone for enhancing the decentrali- and demands. The media network and zation of governance; it provides authority civil society organizations accelerated that to local bodies in collecting taxes, selecting process. The new democratic Constitution and implementing local-level programmes of 1990 and commitments made by the main and preparing periodic district plans. It also political parties to poverty alleviation also reserves 20% of the seats in local bodies for raised citizen aspirations. The successive women. The recent handover of schools and development plans added new hopes. health posts to the local communities has also begun to deepen the decentralization At the same time, as we have seen through- process further. out this chapter, policies fell behind to generate the kind of growth essential to job cre- Nonetheless, despite the attention garnered ation and equitable income distribution. by the decentralization process, the devo- And as annex 3, box 2 shows, many com- lution of power and authority to the local mitments or agreements with opposition bodies has yet to occur. The LSGA1999 con- parties remained paper goals. By the same tains many contradictions still unad- token, orthodox parliamentary practices dressed.60 Nor has there been any serious overlooked the exclusionary social struc-

47 NEPAL HUMAN DEVELOPMENT REPORT 2004

ture. Deep-rooted social cleavages and dis- SUMMATION crimination in terms of caste, ethnicity, gender, region, culture and religion provided The People’s Movement of 1990, together fertile ground for escalating conflict – sim- with the new democratic Constitution and ply because socio-political marginalization commitments of the main political parties, was being perpetuated at just the moment created expectations that remained unful- when political awareness among its prin- filled because of an increased gap between cipal victims had begun increasing. commitments and actions and also between actions and outcomes. Legal, policy-related A development paradigm that stipulated di- and institutional discriminations continued rectives from the elite to benefit the vast ma- to inhibit equal access and opportunities for jority of the population – “top-down devel- the disadvantaged on the political, social opment” – found itself overwhelmed by nar- and economic fronts and thus obstructed rowly-based growth policies, widened in- the constitutional provisions that in prin- come inequalities and distributional con- ciple abolished all types of discrimination Deep-rooted social flict. Rising unemployment and poverty cre- and guaranteed social justice. The status cleavages and ated frustration among young professional quo or piecemeal approach to realizing discrimination in people as well as disadvantaged youth and these rights, coupled with rising popular others traditionally excluded from equi- consciousness of constitutional rights, fu- terms of caste, table participation. Political instability, eled the contradictions that have led to the ethnicity, gender, manifested in intra-party struggles as well violent conflict that cripples the country to- region, culture and as hung Parliaments, could provide no ef- day. The incongruities between the politi- religion provided fective measures to address rising social cal and social and economic empowerment contradictions. The Maoists took advantage indices presented in chapter 2 also reveal fertile ground for of the situation to expand their networking these contradictions. escalating conflict and to escalate violence. The government’s inability to democratize the security appa- The perpetuation of practices concerning ratus also obstructed possibilities of trans- “untouchability” and the exploitation of forming power relations. women have also obstructed the development and preservation of the culture of vari- The Maoist insurgency led to the postpone- ous indigenous people and other commu- ment of the mid-term election. This resulted nities. Empowerment cannot evolve in the country’s current political and con- sustainably without the elimination of these stitutional crisis. Two years have passed culture-based discriminations. The educa- without a representative body at the local tion system has been slow to enhance ac- level. Nor will Parliament be able to recon- cess of women, disadvantaged indigenous vene without a general election – which is community and Dalits in education. Barri- itself unlikely to take place before the settle- ers on both the supply side (limited physi- ment of Maoist problem. Political reconcili- cal access and poor quality of schooling) ation to strengthen democracy and achieve and the demand side (high perceived cost peace is an absolute precondition for en- of education in relation to foregone benefit) hancing the capacity of the state to imple- have contributed to hobbling progress. The ment pro-poor policies and programmes – government-subsidized education has ben- and, arguably more important, to open gov- efited primarily the privileged. Exclusion- ernance institutions to participation by ary institutional arrangements for hiring grassroots citizens so that they may begin teachers and managing schools at different using their agency to rebuild communities levels have remained obstacles to chang- as they themselves see fit. ing existing discriminatory practices. The

48 BARRIERS TO EMPOWERMENT

same is true of Nepal’s public health sys- as indicated by increases in candidacies tem, whose per capita allocations, among and voter turnout in both parliamentary the world’s lowest, have been exacerbated and local elections – subsequent reforms in by steep disparities in access to health ser- state, political and local institutions were vices among the country’s different regions either too slow or inadequate to ensure bet- and communities. ter service delivery and governance. On the political front, a status quo approach im- Macroeconomic policies have not worked peded changes in traditional power and effectively to promote pro-poor growth and social relations; this, in turn, blocked social ensure equitable income distribution. The transformation processes. No concerted ef- neglect of agricultural development follow- forts were made in changing rules, regula- ing the APP strategy has accentuated prob- tions and exclusionary practices to ensure lems in this sector. In addition, over-empha- equitable representation of the disadvan- sis on the deregulation of input and output taged in political institutions. Orthodox prices in an agrarian structure characterized parliamentary practices took little account by marginal and small farmers on the one of the exclusionary social structure and Political crisis hand and, on the other, a continuous inflow thereby fell far short of the abolition of dis- deepened with of subsidized commodities from India have crimination, the guarantee of social justice the obstruction inhibited supply response in agriculture. and the protection of human rights pro- of elections at The decrease of the development budget, low jected by changes to the Constitution. At the access to institutional credit and the decline same time, the political instability mounted both the national of small and medium-sized enterprises have as infighting increased within the main- and local levels emerged as major problems on the macro stream political parties leading to divisions policy front. Underdeveloped, low-quality and reunions, which in turn continued to and high cost-infrastructure, along with the stall the peace process. Political crisis deep- predominance of unskilled workers in the ened with the obstruction of elections at labour market, has remained a barrier to en- both the national and local levels. hancing productivity and competitiveness in the economy. Nepal’s underdeveloped Without elected bodies to frame laws or market institutions have also obstructed the implement grassroots development enforcement of rules and regulations that programmes, new initiatives to increase em- could create an adequate market incentive powerment cannot take effect. Yet once citi- structure. Last but hardly least, the poor back- zens have experienced democratic political ward linkages of the industrial sector have practices, social contractions are bound to so far failed to establish the macro and mi- mount, whether because of historical or cro linkages necessary for reducing poverty contemporary factors. The fact that these and empowering the country’s disadvan- contradictions have now resulted in violent taged people. conflict throughout Nepal points clearly to a need for radical, dynamic social, economic While the democratic changes of 1990 in- and political transformation through sys- creased people’s political empowerment – temic reforms in policies and institutions.

49 EMPOWERMENT OF WOMEN AND DISADVANTAGED GROUPS

CHAPTER 4 Empowerment of women and disadvantaged groups

Nepal is hardly alone among the numer- ined in this chapter are historically the most Exclusion has a ous countries worldwide that have allowed disadvantaged and therefore those whose distinct regional both historical and contemporary factors to study provides the basis for identifying the dimension in Nepal; perpetuate the gaps between its haves and major paths empowerment should take have-nots. But, as earlier chapters have throughout the country. the continued pointed out, the country’s rigid exclusion- impoverishment and ary practices have contributed significantly underdevelopment of to the violent conflict that now engulfs its WOMEN the mid and far people. Women comprised 50.1% of the total popu- western development The poor in Nepal range over a wide vari- lation of Nepal1 in 2001. Patriarchy pervades regions constitutes a ety of socio-economic groups irrespective most of the country’s castes and ethnic glaring manifestation of caste, sex, religion and geographic re- groups; Nepal has one of the highest indices of historical gions. Women cut across all these catego- of son preference in the world.2 Boys not ries, whether Dalits, indigenous people, in- only pass on the family name, but repre- geographic exclusion dividuals with disabilities, or children. Not sent “insurance” for parents in their old age that has shut every all traditionally high-caste people are rich. and can carry out important rituals when population segment – Likewise, not all low-caste people are poor parents die. Girls generally work at home irrespective of caste, or otherwise disadvantaged. But exclusion and in the fields, considered too unimpor- religion and sex – out has a distinct regional dimension in Nepal; tant – and risky – to educate, given the high the continued impoverishment and under- value attributed to virginity and the dan- of mainstream development of the mid- and far western gers that schooling in the company of boys development development regions constitutes a glaring and men outside the household might pose manifestation of historical geographic ex- to virginity. By contrast, early marriage con- clusion that has shut every population seg- stitutes a kind of virginity insurance. ment – irrespective of caste, religion and sex – out of mainstream development. From this Women bear triple work responsibilities in perspective, any analysis of disadvantaged Nepal: groups that focuses only on Dalits, indig- ! Reproduction; enous people, the physically disabled and ! Household work; and children will fail to capture the true picture ! Employment. of poverty in Nepal. Moreover, our lack of regionally disaggregated data on various Given traditional gender divisions of labour, disadvantaged socio-economic groups bars women concentrate more on their ascribed us from carrying out detailed situational reproductive roles and responsibilities while analyses. Nonetheless, the groups exam- men focus on “productive”, income-earning

51 NEPAL HUMAN DEVELOPMENT REPORT 2004

roles. As in most households worldwide in lar statutes, the failure of legislators, legal both developed and developing countries, re- interpreters and law enforcers to accept the production is not regarded as work and concept of sexual equality prevents women household work is not considered produc- from exercising their fundamental rights and tive. However, the work burden of women freedoms. in Nepal (16 hours) is much higher than the global average for three reasons: Until 1980, policies for the integration of ! First, reproductive work is much more in- women into development processes overall tense because the home continues to be were confined largely to education and train- the centre of nurture and socialization.3 ing. Since that time, a gradual shift has taken ! Second, maintaining household is highly place from emphasis on welfare towards eq- work-intensive, particularly during the uity and from anti-poverty efforts to an em- peak agricultural season. powerment approach. The Sixth Five-Year ! Third, participation of women in Nepal Plan (1980-85) contained Nepal’s first spe- in “productive” activities is one of the cific provisions to enhance women’s partici- The Tenth Plan highest in the world. pation in the development process. Succes- has, for the first sive plans have focused increasingly on im- The boundaries of all these activities under- proving the status of women through time, included taken by women are influenced by factors programmes geared to mainstreaming and gender and human such as household composition i.e. ex- empowerment. The Tenth Plan has, for the rights as a tended/joint, nuclear and female-headed first time, included gender and human rights crosscutting as well families, household stratification by eco- as a crosscutting as well as sectoral issue. nomic status – wealthy, poor or landless – as sectoral issue the migration of male family members, edu- The National Women’s Commission was es- cation, knowledge and health status.4 tablished in 2002 to advise the government on Women are also confined to “culturally pre- effective implementation of the international scribed” and “socially acceptable” occupa- human rights instruments and to develop tions. However, data on many Nepalese policies and plans specifically aimed at ad- socio-cultural practices that discriminate vancing women. But the Commission lacks against women are inadequate to date, in a clear legal mandate and some of its work is large measure because of the sensitivity of duplicated by the Ministry of Women, Chil- the subject. dren and Social Welfare (MoWCSW).7 Al- though Gender Focal Points have also been Legal reforms and established in the sectoral ministries, gov- policy initiatives ernment programmes still lack gender sen- The Constitution stipulates that non-discrimi- sitivity. nation and equality are fundamental rights. The National Country Code, in its Eleventh The Task Force established at the central Amendment,5 sets out women’s right to prop- and district levels to check the trafficking of erty and a conditional right to abortion, an girls remains limited to 26 traffic-prone dis- increase in minimum age of marriage tricts of the country in which traffickers (from16 to 18) and equality in grounds for appear to be changing the areas and modes divorce. However, Nepal’s State laws, as well of their trade. While a new plan of action to as traditional values,6 still relegate women to combat trafficking was adopted in 2003, it inferior status, particularly in the gaps be- focuses largely on children and lacks a tween legal initiatives. For example, a daugh- strong monitoring mechanism. Nepal is sig- ter had to return her share of family prop- natory of the South Asian Association for erty after marriage until very recently, when Regional Cooperation (SAARC) Conven- a new court decision has overturned this ar- tion on Preventing and Combating Traffick- rangement. Above and beyond such particu- ing in Women and Children for Prostitu-

52 EMPOWERMENT OF WOMEN AND DISADVANTAGED GROUPS

tion and official Nepalese commitment to enterprises and preparation for the forma- implementing its provisions. But the instru- tion and operation of cooperatives are being ment has not yet been ratified. undertaken. Increased social mobilization of women has also taken place, together with Nepal has reaffirmed its commitments to their active participation in savings and loan the 1995 Beijing Declaration on Women: programmes, to facilitate their access to pro- Equality, Development and Peace, includ- duction technology, training and market fa- ing implementing the Platform for Action cilities. These and other activities such as en- adopted by the Fourth World Conference trepreneurship training, have enhanced on Women. Working policy has been elabo- women’s participation in industry, tourism, rated for gender equality and women’s em- and forestry. The Users Groups formed by powerment in this context and includes the women have had a number of positive effects, following measures: despite their limited coverage and prevalence ! the Women’s Cell of the Nepal Police now largely in physically accessible areas. carries out in-depth investigations of problems concerning women and chil- The piecemeal nature of these efforts stems The government dren in 18 districts; from the fact that the government has yet to has yet to adopt a ! to measure the participation of women in adopt a policy of mainstreaming gender as national development, statistics of gen- its core strategy in promoting gender equity policy of der-related programmes and women’s and equality. For this reason, among others, mainstreaming contributions to household activities are women’s empowerment has not been suffi- gender as its core being recorded in the National Accounts. ciently incorporated into the programmes of strategy in ! the MoWCSW conducted gender assess- a number of sectoral ministries. promoting ment studies of the education, health and agriculture sectors in 2002.8 More re- gender equity cently the MoWCSW has also conducted Outcomes and equality gender assessment and gender budget Education: In spite of significant gains in audits of its own ministry as well as the female literacy – from a mere 12% in 1981 to Ministry of Local Development with the 43% in 2001 – women lag far behind men objective of making the ministries more in literacy and educational attainment (see gender sensitive in planning, policy- annex 4, table 1). In fact, the difference be- making, programming, budgeting, moni- tween the male and female literacy rates toring and evaluation process at the cen- between 1981 and 2001 remains the same: tral as well as at the local levels. 22% percent. Only girls below 14 years seem to be catching up with boys of the same Nepal’s 150 special measures for women age cohort. The enrolment of girls decreases regarding political and public participa- as they get older; boys therefore predomi- tion, education, employment, health, vio- nate in secondary and higher education. lence against women, court procedure and gender justice, and marriage and family life Health: Women’s life expectancy has im- are spread among 56 different laws, includ- proved significantly – from 53.5 in 1991 to 61.5 ing the Constitution.9 Despite several wel- in 2001 – surpassing the life expectancy of 60.5 come outcomes, these special measures have for men. The sex ratio as an indicator of been limited to discrete areas, such as po- women’s status has also improved slightly in litical participation and maternity benefits. favour of women: from 105:100 in 1981 to The approach has not been holistic. 99.8:100 in 2001.10 Nonetheless, the infant and child mortality rates remain among the For the economic empowerment of women, highest in south Asian region. Infant mor- programmes such as micro-credit, income tality has dropped from 78.5 per 1,000 live generation, skill development for informal births in 1996 to 64.4 per 1,000 live births in

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2001 and the under-five mortality rate has ! traditional violence (deuki, jhuma, badi, declined from 118 per 1,000 live births to 91 chhoupadi); per 1,000 live births over the same period. ! violence based on superstition, such as For every 1,000 live births, 79.2 boys and 75.2 torture for alleged witchcraft; girls die before their first birthday. However, ! sexual violence (trafficking and sexual 105 boys as compared with 112 girls (per harassment); 1,000 live births) die before they reach the ! family violence (domestic violence, po- age of five – a contradiction of normal bio- lygamy, child marriage); and logical trends that suggests discrimination ! dowry-related violence (torture, both against girls in child-rearing practices such mental and physical). as feeding patterns and seeking healthcare (see annex 4, table 2). Women as well as girls The violence and exploitation against also suffer from inadequate nutrition in both women vary with religion, caste, class and quantity and quality of food, perform exces- geographical location. The problem is more sive labour, and have limited access to health serious among Dalit women. Due to the ste- Though Nepal and family planning services.11 Approxi- reotyped roles and economic dependence, has very mately 70% of the women of childbearing women perceive such behaviour as normal; age are anaemic – and an estimated 40% the violence is therefore accepted. Although stringent laws have given birth to at least one child between increasing attention is now being given to regarding the the ages of 15 and 19. Because of poor mater- reducing violence against women, the prob- trafficking of girls nal health and nutrition, 27% of newborns lem of domestic violence is on the rise – in 12 and women, this have low birth weights. These high rates part because of the lack of a comprehen- also result from a health care system that sive law on domestic violence. kind of violence reaches less than 15% of the population. persists, largely Lack of specific legislation to deal with because of In addition, the maternal mortality rate sexual harassment at work has resulted in poverty (MMR) of Nepali women (539 per 100,000 non-reporting of incidents. Studies indicate live births) ranks among the highest in the that garment and carpet industries are most world.13 One out of every 185 pregnant prone to sexual harassment.14 Though women dies because of pregnancy and Nepal has very stringent laws regarding the childbirth-related complications. Currently, trafficking of girls and women, this kind of only 53.4% of women receive any antenatal violence persists, largely because of pov- care, though this has increased from 28.4% erty. The porous border with India also con- in 1991, and only 18.8% receive post-natal tributes to the trafficking of some 12,000 services. Almost all deliveries take place at girls and women annually, approximately home; only 13% of deliveries are assisted 20% under the age of 16, into Nepal’s south- by a skilled birth attendant. ern neighbour and other countries for prostitution (see annex 4, table 3). In addition, Nonetheless, the mean age at marriage has thousands of girls are forced into reli- risen significantly – from 16.8 years in 1971 giously, culturally and traditionally insti- to 19.5 years in 2001 for females, and from tutionalized prostitution practices such as 20.8 years in 1971 to 21.9 years in 2001 for Deuki and Badi. Human rights organiza- males – indicating a slow but steady change tions have reported extensively on this prob- in social perceptions of the institution of lem,15 but no serious steps have been taken child marriage. to reduce it significantly. Although the government scrutinizes women’s migration for Violence against women: Various forms of work abroad, trafficking or smuggling of violence against women exist in Nepal, women continues in this guise; hundreds among them the following: of girls have crossed into India with false

54 EMPOWERMENT OF WOMEN AND DISADVANTAGED GROUPS

assurances of employment, eventually to ticularly in manufacturing, trade, com- end up in brothels. merce and tourism in urban areas – they are concentrated in low-skill jobs because Access to resources and control over them: of their lack of education and training op- Women have only limited access to re- portunities, the biases of their employers sources and only limited control over those and their limited mobility.19 They have also they can access. Of the total landholdings, begun moving into small business and self- females own only 8.1% and the average size employment ventures, looking for salaried of their land is just two-thirds that of an av- jobs and, in this process, they are increas- erage male holding. Only 4% of the house- ingly migrating to towns and cities for em- holds have female ownership of both house ployment in a range of cottage industries, such and land. (see annex 4, table 4). Marital as carpet-weaving, textiles and handicrafts, status determines female’s access to land as well as vending, petty trade, brewing, and and other property. Poor single women, vegetable selling. However, an informa- even those with many children, do not re- lization of the formal labour market is taking ceive land in resettlement areas. Although place through piecework, homeworking and An informalization of a husband may keep property in the name other kinds of outsourcing that have under- the formal labour of his wife, she cannot sell, rent or other- mined the collective bargaining power of the market is taking place wise transfer it without the consent of her workers and increased exploitative working spouse or sons.16 Access to community re- conditions for women. through piecework, sources like forests devolves through homeworking and household heads – who are usually men. Overall, the problems that women face in other kinds of All these limitations, along with house- the labour market stem from the following outsourcing that have hold confinement and low educational at- factors: undermined the tainment, restrict women’s access to credit; ! stereotypical roles that confine women both formal lending institutions and vil- to the household; collective bargaining lage moneylenders require tangible collat- ! women’s limited access to education and power of the workers 17 eral. Local lenders who do not demand skill/vocational training; and increased collateral charge prohibitive interest rates ! discriminatory wage rates; exploitative working and exact free labour as well. ! legal discrimination and deprivation of the right to property; conditions for women Employment: Most women workers – over ! sexual harassment at work; 70% – are confined to self-employed, un- ! exploitative and unsafe working condi- paid and low-wage informal sector activi- tions; ties;18 they have few formal job opportuni- ! discrimination in employment opportu- ties. Between 1991 and 2001, women moved nities; gradually from agricultural into non-agri- ! lack of gender-sensitive labour policies; cultural work – from 20.1% to 34.31% (see and annex 4, table 5). Their employment in ! inadequate laws on maternity protection manufacturing increased six-fold over the and child-care. same period; they constituted almost 23% of the labour force in this sector in 2001. Representation in government and political Carpets and garments, Nepal’s major ex- positions: Representation in government and ports, absorb most of these informal female political positions increases people’s agency workers. The fact that the formal sector ac- by acquainting them with legislation, deci- counts for only a small share of the total sion-making on allocation and distribution labour force (8-10%) implies that few work- of state resources, access to information and ers have benefited from wage reforms en- delivery of services and involving them in acted to date. Although women are slowly these activities. However, women’s represen- joining the expanding modern sector – par- tation in the civil service amounts to a mere

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BOX 4.1 Group power in community-based economic development

The CBED project aimed at organizing savings and credit purchasing gold and land and selling agricultural prod- groups for both men and women in an effort to launch and ucts. intensify local economic activities. Implemented in three districts – Dadeldhura, Jumla and Baitadi – the venture ! Enhancement of decision-making capacity: Commu- focused on meeting both the practical and long-term stra- nity members have taken active part in meetings and tegic needs of women and reached 55 VDCs and two Munici- become key decision-makers in group as well as house- palities with a total population of 200,000. Rural finance hold activities. strategy is a key component of the project, along with com- modity promotion and natural resource management. All- ! Access to economic opportunities: Vegetable farming women's groups as well as mixed groups were established. A has generated income and improved health and nutrition recent study of CBED's impact on women's socio-economic by making Vitamin-rich foods available for family con- status and gender relations within the family have revealed sumption. a number of positive changes: ! Needs fulfillment: The CBED drinking water schemes, ! Participation in development activities: Many women smokeless stoves, kitchen gardening, health, literacy have become actors in a variety of economic improve- classes, irrigation and nutrition education have ben- ment projects, as well as anti-alcoholism and cleanli- efited many households and their members, includ- ness campaigns; this has raised their status in family, ing women and girls. community and village life. ! Changes in men's attitudes: Most women in the project ! Changes in mobility: Prior to the project, many now voice their opinions clearly, saying that they no women were effectively prohibited from moving be- longer feel submissive and are prepared to struggle yond the confines of their villages; the possibility of for their rights. their interacting with outsiders usually made them subjects of gossip. Nowadays, their circulating out- ! Contributions to time-saving and time allocation: side the community is unquestioned. Because of CBED's support for time-saving devices for women (grain mills, water pumps and filters, im- ! Access to and control over resources: Since CBED proved cooking stoves), their drudgery and work intervention, wives have been consulted by their hus- burdens have diminished. Men have also begun – gradu- bands before making decisions about potential long- ally – to help women in onerous chores so as to release term socio-economic activities such as launching a them for participation in group activities. small enterprise, vegetable farming, pursuing credit, Source: CECI-CBED 2001.

In a culture rife 8% of approved civil service positions. More- vealed since the implementation of the Pro- with patriarchal over, as compared to the 1999 figures, all duction Credit for Rural Women and Small those of 2000 have decreased – with the ex- Farmers Development Programme (SFDP) strictures and ception of the Non-Gazetted level, which by the government during the 1980s. This structures, shows a 0.2% increase (see annex 4, table 6). strategy has been replicated in a number of women now other programmes for women. Box 4.1 sum- mobilize one Although an increasing number of women marizes the achievements of the Commu- another to initiate have stood for election to the House of Rep- nity-Based Economic Development (CBED) resentatives, their share still hovers at less in opening space for the exercise of women’s and effect social than 10% (see annex 4, table 7). Those actu- agency and thereby broadening their access change in their ally elected count for less than 6%. Nor is to credit, among other forms of empower- communities local government representation encourag- ment. ing (see annex 4, table 8). In a culture rife with patriarchal strictures and structures, women now mobilize one Manifestations of women’s another to initiate and effect social change empowerment: some experience at in their communities – combating domestic the grassroots level violence and drunken behavior being only Group formation and the use of group power two of the common efforts currently under- has often succeeded in Nepal, as amply re- taken by women’s groups across Nepal. Tar-

56 EMPOWERMENT OF WOMEN AND DISADVANTAGED GROUPS

BOX 4.2 Women's empowerment through decision-making

Between 1997 and 2001, in 21 districts covering 125,000 hanced the social capital base critical to organizational capac- women as target beneficiaries, the USAID-funded WEP has ity-building and hence empowerment. concentrated on three critical components of women’s empowerment: increased literacy; an improved legal environ- Solving problems through collective action became the kind of ment for women; and strengthening women’s economic par- activity the women favoured most, particularly in terms of ticipation. The Programme defines empowerment as “women curbing gambling and alcoholism, encouraging hygiene and clean- making choices to improve their well-being and that of their liness, halting domestic violence and child marriage, under- families and communities” – a process by which women de- taking the improvement of trails, roads and drinking water fine, challenge and overcome barriers in their lives and, facilities, plantation and afforestation efforts, irrigation con- ultimately, change the circumstances that relegate them to struction and enhancement and temple and monastery build- subordinate status. ing. Women generally joined their husbands as the main decision-makers concerning community issues; 73% reported that The project has benefited group members enormously. they had assumed responsibilities, along with their husbands, Women now speak openly of freedom from dependency on for making decisions that concerned their children’s school male family members. WEP literacy classes have increased enrolment and attendance, participation in the group meet- women’s standing within the household, particularly in re- ings, notably those involving sanitation activities/hygiene lation to visiting health clinics, ensuring their children’s programmes, and arranging consultations with the appropri- education and even broadening their physical mobility. Be- ate offices to help resolve community problems. Women tended cause WEP is also a banking system, even the families and to become more active after they became participants of communities became supportive, even encouraging. In ad- Rights Responsibilities Action (RRA) and have worked towards dition to Non-formal Education, the technical skills the improving the status of women in the family, including issues women acquired benefited their enterprises – another en- such as wife-beating, drunkenness, the sale of alcohol, prop- hancement of their status within their respective house- erty rights after divorce, second wives, community percep- holds and communities, since group members earned a tion of female tasks, and women’s behaviour and participation minimum of Rs. 300 per month. Husbands have even be- in productive activities. Women also visited the VDC office, gun performing household chores to give their wives time mainly to discuss social reform, personal business or construc- to attend the WEP meetings. Group cohesiveness has en- tion and environmental concerns.

Source: Shrestha, A., and J. KC 2001.

geted women and targeted households now as those communities who, by virtue of exhibit increased influence by women within caste-based discrimination and untouch- the domestic sphere and increases in spend- ability, are most backward in the social, eco- ing on family well-being. In addition, greater nomic, educational, political and religious and greater numbers of women have par- spheres and are deprived of human dignity ticipated in the activities of group and social justice. As annex 4, box 1 shows, programmes, such as, literacy classes, moth- the Commission has identified 19 caste ers’ groups, and self-reliance groups that give groups as Dalits. women opportunities to meet each other, share ideas, and discuss issues. Box 4.2 illu- While caste division and the practice of un- minates how the Women’s Empowerment touchability reaches back to the Aryan inva- Programme (WEP) has increased women’s sions that began even before 1500 BCE, the capabilities by enhancing their decision- legal authority for suppressing Dalit com- making skills. munities anywhere in what is now Nepal dates back only to the 14th century Common Era (CE). King Jayasthiti Malla (1380-1394) DALITS formalized the caste system in the Kathmandu Valley by dividing the Newar In 2001, Dalits comprised 12.9% of the total (largely indigenous) population into 64 population of Nepal (2.9 million). Kami con- caste groups, each occupying a distinct stituted the largest group, with nearly 30%, functional and occupational category. These while the Halkhor were the smallest, with castes, then, had no fundamental basis in 0.12%. Definitions of the term Dalit differ: ancestry or strictly religious ascription, but The National Dalit Commission defines Dalit derived from the nature of work performed.

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In the Newar caste hierarchy, Pode and diplomatic and political structures. As they Chyame were treated as Dalits. As box 4.3 are forced to live on the fringes of the so- summarizes their history, the discrimina- called upper caste neighbourhoods or in tory practices against Dalits continued un- slums, the unsanitary living conditions of abated under the feudal political system Dalits have not only undermined their and its manorial counterparts during the health, but also encouraged carelessness British Raj in India. The practice of un- about their own hygiene and dietary hab- touchability is even more complicated its. A cycle of discrimination thus begins with cultural and religious taboos and The Dalits remain among the untouchables themselves. Dumaras are social outcasts; even Dalit culminates in their reinforcement, perpetu- the victims of an children cannot enter their homes, even ating and deepening both Dalit poverty obsolete political when these friends wish to do so; they fear and the inherited stigma of inferiority (see system that punishment by their guardians if such vis- box 4.4). rendered them its become known. voiceless and The Dalits remain the victims of an obso- Legal reforms and policy choiceless lete political system that rendered them initiatives voiceless and choiceless. Even at the be- Legally, the Dalit community is free from ginning of the 21st century, such deroga- the values imposed by the existing societal tory words as ‘bada’ and ‘chhota’ continue structure; both the National Country Code in common usage. They were removed of 1963 and the 1990 Constitution prohibit from the National Country Code of 1963. discriminatory treatment against them. Over and above the prevailing discrimi- However, lack of political will and commit- natory vocabulary, the Dalits are largely ex- ment to reform existing social and power cluded from Nepal’s army, administrative, relations continue their exclusion. For ex-

BOX 4.3 Historical context of Dalits in Nepal

The State formalized the caste system throughout Nepal Although the country later witnessed significant political during the reign of King Surendra Bikram Shah when Jung turmoil, including the overthrow of the Rana regime in 1950 Bahadur Rana, founder of the Rana rule, promulgated the and the establishment of politically egalitarian governance Muluki Ain (Country Code) in 1854. This Code, the first in 1958, the Country Code of 1854 remained in force with proclamation of State authority on all matters concerning only moderate informal adjustments until 1963, when the the social and religious rights of individuals,20 organized Naya Muluki Ain (New Country Code) was enforced under Nepalese caste and ethnic groups into four categories: i. the Panchayat System. This New Code marks the begin- Tagadhari (caste wearing the holy thread); ii. Matwali (non- ning of a new era of the most radical changes in Nepal enslaveable alcohol-drinkers); iii. Pani nachalne-chhoi because it stated that legally all citizens are equal irre- chhitto halnu naparne (castes from whom water is not spective of caste, creed and sex. The Muluki Ain of 1963 accepted, but whose touch does not require sprinkling of also abolished discrimination between castes in respect of water for purification); and iv. Pani nachalne-chhoi chhitto capital punishment. However, it did not declare the prac- halnu parne (from whom water is not accepted and whose tice of untouchability punishable. touch requires purification by sprinkling water). The restoration of democracy in 1990 intensified the The Country Code thus reconstructed Nepalese social struc- voices of subjugated groups. The new Constitution of ture into a four-fold caste hierarchy and placed Dalits – the 1990 reiterates the universality of human rights, equal- groups belonging to the fourth category, at the bottom. ity among Nepalese citizens in respect of rights and re- Before the implementation of the law, the indigenous nation- sponsibilities, and also declares discrimination on the alities had an egalitarian social structure and were outside basis of caste punishable. Despite the reform measures the four-fold Varna and Hindu caste system.21 As the Code introduced during the last four decades, little has was the first law applicable throughout the country, the changed in Nepal’s social structures, norms and prac- practice of untouchability became universalized. The Code tices, including the attitudes and behaviours of non- also divided Dalits themselves hierarchically. This compelled Dalits towards Dalits – or among Dalits themselves. Dalits to practice untouchability and discriminate against those who ranked below them within the broad group of Source: Bhattachan et al 2001. untouchables.

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ample, although untouchability or exclu- access to socio-economic opportunities and sion in public places is punishable by law eventual improvements of their lives, the – a reform reinforced by a Supreme Court more so in the hills and the rural areas.23 declaration in respect of Dalit entry into temples or other religious sites – the Court The restoration of democracy in 1990 gave recently failed to declare unconstitutional greater voice to subjugated groups in Nepal the provision under the National Country and attracted the attention of the planners, Code that states “there shall be no distur- policy makers, government, national and bance in others' religious and social prac- international non-governmental organiza- tice”. At the same time, however, the Court tions and donor agencies to the plight of issued a directive to the government to the Dalits. The Ninth Plan (1997-2002) change the behaviour of official agencies stated for the first time in Nepalese history in their dealings with Dalits.22 Thus privi- that Dalits had occupational abilities, lege, opportunities, prestige, and status on knowledge and skills to raise the country’s the one hand and, on the other, material and GDP. In order to improve their socio-eco- psychological deprivation, continue to rel- nomic conditions, a committee for the ad- egate Dalits to the lowest rung of the social vancement of the Dalits, “Upekshit Utpidit ladder in respect of virtually all aspects of Dalitbarg Bikas Samiti (Depressed, Op-

BOX 4.4 Discrimination against Dalits

CASE 1: Caste discrimination rampant in schools A Biswokarma woman from Ilam Municipality fell in love with a local Damai man and married him without the ap- “I have never drunk water with my friends of other castes proval of her family. They eloped and went to Jhapa, since the day I was admitted to the school,” says Ganesh living in the house of the bridegroom’s relatives. The Sarki, a student of class three in the primary school at bride’s family, however, considered this a dishonour to Dharapani. “My friends tell me not to touch the water and their community, because Damais are regarded as “lower- I don’t touch it. Our teachers, who are aware of our prob- caste” by the Biswokarmas (Kamis). The newlywed ulti- lems, have also not objected to this practice and made no mately found shelter with the support of an aunt of the provision to enable us to drink water in the school. Others bride. Other members of her family went there and drink water in school, but we Dalits go to a nearby water brought her back. Her husband also went back home and source to drink.” related their plight, whereupon the Damai community applied to the District Committee of the Nepal Utpidit Jatiya No other overt discrimination exists in the school. Dalit Mukti Samaj (Nepal oppressed caste emancipation forum) children sit happily shoulder to shoulder with other stu- for support for the couple’s reunion. The Mukti Samaj dents on the same bench – but outside school, cannot en- (emancipation forum) suggested that both parties discuss ter the homes of their higher-caste friends. The small chil- a solution. dren wonder why. Dil Bahadur Sarki, of Thakle in Bhatauli VDC and a student of class seven says he would love to live On the first day of these discussions, the bride’s family with all people as a single family by rooting out the sys- claimed that she had changed her mind and asserted that tem of untouchability. Although his school allows Dalits to she had been brutally beaten and starved by her husband. drink water on the premises, upper-caste students must When they rescued her, they alleged, she began crying and wash the glass afterwards or pour the water directly into regretted her marriage decision. They also expressed their Dil Bahadur’s mouth without touching him. readiness to send her back to her husband if she so desired. The bridegroom denied these assertions and asked that his Source: The Kathmandu Post, May 16, 2003 wife appear before the Committee in person to seek her views publicly. CASE 2: Reward and punishment The following day, the woman appeared, accompanied by The Namsaling VDC has set an exemplary tradition by re- members of her family. When questioned by Committee warding four newly wed couples who have entered into members, she affirmed her family’s views. This shocked inter-caste marriage with Dalits. However, neither non- her husband, who eventually discovered that the bride’s Dalits nor “upper-caste” Dalits will accept such marriages. family had forced her to repudiate her marriage before Mixed couples must face humiliation and problems of sepa- the Committee. She now lives with her sister in Jhapa, in ration, particularly if the groom is non-Dalit – although a state of acute depression. males are considered “pure” even after having sexual relations with a Dalit woman. Source: ActionAid/Nepal 2003.

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pressed, Dalit Group Development Commit- proximate 10% rise in literacy rates for both tee) was established in 1996 under the aus- sexes between 1991 and 2001. pices of the Minister of Local Development. On 6 August 2001, the government promul- Health: Despite a dearth of data, the health gated an eight-point programme for status of Dalits appears to rank well below mainstreaming the Dalits in national devel- the nation as a whole.25 In 1996, for in- opment processes. In addition, in March stance, the IMR for Dalits was 116.5 per 1,000 2002, a high-level National Dalit Commis- live births compared to 52.5 for Brahmins, sion was instituted to look into the issues and immunization coverage for Dalit chil- related to the welfare of Dalit communities. dren (43%) was 20% lower than the national average. The media often reports incidents of caste- based discrimination in public places; but Access to resources and control over them: the government responses remain very lim- In Nepal, where land ownership translates ited.24 The National Dalit Commission does into wealth, power and social prestige, about The processes of not yet have statuary authority. Moreover, 15% of the hill Dalits and 44% of the Tarai cultural the exclusion of non-Dalits in the Commis- Dalits are landless, a figure that is increas- sion undermines its effectiveness in pro- ing.26 The vast majority of the rest own only homogenization spective social transformation. Nonethe- subsistence plots.27 The refusal of the dairy and less, the number of NGOs, both domestic industries to purchase milk produced by monolingualism and international, focusing on activities re- Dalits has made it impossible for them to resulted in lated to Dalit welfare, has grown enor- engage in animal husbandry. numerous losses mously. Currently, 111 NGOs for Dalit advancement are run by Dalits themselves. A Employment: Despite the wealth of skills of cultural Dalit NGO Federation with regional offices related to their traditional occupations, diversity has been established to coordinate Dalit Dalits almost invariably work at these welfare activities at the regional level. Be- trades under discriminatory and exploit- cause of achievements in advocacy and ative conditions. The transition from tradi- awareness-raising in Dalit communities, in- tional to modern market economy has creasing numbers of Dalits have been rais- marginalized their knowledge, skills and ing their voices in national as well as inter- products without creating alternative oc- national forums. cupational opportunities for them. More than 54% of the Dalit population engages Dalit leaders have also involved themselves in agricultural activities, another 15.7% in in various political parties. Despite the cata- service, an additional 14.2% in non-farm lytic effects of this leadership in address- wage-earning and the remaining 6.1% in ing Dalit issues and problems, it has in most casual farm labour and other low-wage ac- cases fulfilled the interests of individual tivities.28 Dalit politicians rather than advancing the welfare of the Dalit community at large. Representation in government and political Moreover, a number of both formal and non- positions: Except for the election of one Dalit formal associations (largely caste- or gen- to the Lower House of Parliament in 1991, der-related) continue to deny Dalits equal none has won since then, while in the Up- access to their memberships. per House various political parties and the King have nominated only four.29 Although various political parties in Nepal have con- Outcomes sistently emphasized Dalit welfare as one of Education: The educational attainment of the main agenda in their party manifestoes, Dalits remains below the national average. Dalit candidates constituted only 3.7% of Two thirds remain illiterate despite an ap- those who stood in the 1999 general elec-

60 EMPOWERMENT OF WOMEN AND DISADVANTAGED GROUPS

tion. No Dalits are yet members of the central cesses of cultural homogenization and committees of the major three political par- monolingualism resulted in numerous ties. Nor do Dalits hold positions in the judi- losses of cultural diversity.31 Indigenous ciary or the constitutional bodies. people also experienced violations of their inherited rights to natural resources and ab- rogation of their traditional land tenure sys- INDIGENOUS PEOPLE tems, along with expropriations of their lands, displacements from their traditional Indigenous people, also known as indig- homelands and heavy taxes, including a enous nationalities (see annex 4, box 2), con- number “collected” in unpaid labour. The stitute 37.2% (8.4 million) of Nepal’s total promulgation of state/royal orders, rules population. According to the census of 2001,30 and regulations before 1951 and the enact- the largest indigenous groups are the follow- ment of various laws afterwards also lim- ing: Magar (7.1%), Tharu (6.7 %), Tamang ited their access to natural resources such (5.6%), Newar (5.5%), Rai (2.8%), Gurung as forests, pastures, rivers, ponds, and wild- (2.4% ) and Limbu (1.6%). life. Development efforts tended to add to their marginalization; malaria eradication In addition to the country’s Hindus, these in 1950s caused an influx of hill people into people are largely Buddhist, Mundhumist Tarai and the new settlers, primarily up- (the Kiratis), Bonists, and Animists or Sha- per-caste hill people, pushed the original manists. Altogether, these minorities speak local inhabitants off holdings they had almost 100 languages or dialects. worked for centuries.32 National park projects also displaced several indigenous The process of disempowerment of indig- Tharus and other communities from their enous people began with the incorporation lands33 without adequate resettlement. All of small principalities into the larger unifi- these processes resulted in the economic cation of the kingdom of Nepal. The pro- marginalization of these groups.

BOX 4.5 Ethnic issues from indigenous people's perspective

Indigenous people have raised a variety of issues during the indigenous people to natural resources, putting their last few decades,34 mainly of socio-cultural, political or eco- livelihoods at risk. nomic nature. They can be summarized as follows: ! Cultural Rights: Linguistic rights have been denied and ! Lack of collateral, along with limited access to power discrimination based on language, culture, religion, re- structures, bars disadvantaged indigenous people gion and gender still prevails throughout the country. In from credit facilities. Nor have poverty alleviation addition, the right to basic education in one’s mother programmes specifically targeted them or affirma- tongue and the right to information in one’s native lan- tive actions programmes improved their physical con- guage remain unrecognized. ditions.

! Several discriminatory provisions in the present Con- ! The government has so far taken inadequate action for stitution and existing laws constrain the effective par- compensating the victims of development projects, ticipation of indigenous people at the policy-making lev- such as displaced indigenous people from lands set els. Present political processes and institutions tend to aside as wildlife sanctuaries and national parks. exclude them from decision-making at all levels. ! Despite the multiple discriminations faced by indig- ! Despite varied provisions for affirmative action or enous women – gender discrimination, linguistic dis- “positive discrimination” in favour of disadvantaged crimination, cultural discrimination and religious dis- indigenous people, Dalits and women in the Constitu- crimination – gender empowerment programmes have tion, the government has not yet ratified ILO Conven- not yet focused on them. tion No. 169 on Indigenous and Tribal People. Source: Gurung 1985; Yakkha-Rai 1997; Gurung et al 2000; Neupane 2000; ! The promulgation of orders and their enforcement con- Subba et al 2000; Lawoti 2001; Gurung 2002; Bhattachan 2000 and 2003; and tinue to restrict the traditional/customary rights of Subba et al 2002.

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Legal reforms and policy initiatives below the poverty line and granted 5% The 1990 Constitution has explicitly set out scholarships to disadvantaged groups (the the policies and principles of eliminating poor, women, the disabled, Dalit and indig- social and economic inequalities, maintain- enous students). ing and promoting plurality and diversity of cultures, advancing disadvantaged The 1997 National Committee for Develop- groups through special measures and in- ment of Nationalities, which conducted volving the people in their governance to various programmes on indigenous lan- the maximum extent. As box 4.5 shows, the guages and cultures, awareness-raising, government began addressing ethnic issues training, scholarships, and the protection in 1991, but took no action on the 1992 pro- of endangered indigenous groups, was re- posals of its own commission in respect of placed in 2003 by the National Foundation protecting and promoting languages, script for Development of Indigenous Nationali- and cultures. The National Language ties, which has already initiated several Policy Recommendation Committee, consti- activities for linguistic and cultural preser- tuted in 1993, has also seen little implemen- vation and the socio-economic empower- tation of its many submissions, apart from ment of marginalized indigenous groups. the production of primary school textbooks Among government efforts, only the Praja in 11 indigenous languages by the Curricu- Development Programme of 1979 has spe- lum Development Centre of the Ministry of cifically targeted a single indigenous group, Education. In addition, the 2001 amend- although other programmes run by NGOs ment of the Education Act of 1971, along and supported by SNV have shown very with the Education Regulations of 2002 positive results.35 Indigenous people’s or- have provided for free education to indig- ganizations are also implementing a host enous as well as Dalit children who live of programmes for the empowerment of

BOX 4.6 Rehabilitating the Kamaiyas

The Kamaiya, a complex farm wage labour system prevalent The key reasons for the ineffectiveness of the rehabilitation in eight Tarai districts, engulfed about 20,000 households, efforts amount largely to a lack of coordination and proper most of which were forced to pledge family labour in return sequencing of the activities undertaken by different ac- for meagre amounts of food crops and, in addition, were tors. Kamaiya families were resettled in areas where they bonded by loans they had incurred to ensure their survival. In had to share scarce employment opportunities with the local response to mounting pressures from human rights and civil people, as well as sparse infrastructure such as schools, society organizations, the government ultimately recognized clinics, drinking water and other facilities. Moving to a new the problem and, in July 2000, abolished the system. Subse- place also created new problems for these migrants with quently, the Abolition of Kamaiya System Act made the per- meagre resources; ex-Kamaiyas need integration into their petuation of the system punishable. own villages, along with the legal and social safeguards appropriate to agricultural labourers. After the adoption of the Act, governmental efforts to assist the ex-Kamaiyas provided plots of up to 0.15 hectares, Despite some Rs 300,000 per family disbursed since July along with assistance in the construction of huts. Other agen- 2000 by the government, United Nations agencies, more cies offered aid in skill development, education, health and than a dozen international NGOs and even the Asian De- other elements of empowerment. As the households are re- velopment Bank, ex-Kamiayas report few changes in their source-poor, however, they need access to employment op- living conditions, apart from the dissolution of their bond. portunities above all – to which they have received little But freedom without economic empowerment has done response. More ex-Kamaiya children than ever before now little indeed to mitigate their misery, the more so as many work as domestics in urban areas, more ex-Kamaiya women have had to bond themselves anew for survival. Field re- perform unpaid household chores for local landlords, and search indicates that the children and women probably many ex-Kamaiya men have reverted to the same labour suffer more now than they did prior to their liberation. relations from which they were presumably freed. Source: NLA 2003.

62 EMPOWERMENT OF WOMEN AND DISADVANTAGED GROUPS

their communities, among these awareness- in their vulnerability to communicable dis- raising, cultural revitalization, advocacy eases and other health hazards. and livelihood empowerment. The government has also abolished the Kamaiya (a kind Access to resources and control over them: of bonded labour) system in July 2000 and The marginalization of indigenous people assisted the ex-Kamaiyas in rehabilitation. in terms of their inherited resources began Nonetheless, the rehabilitation efforts had with the Rana regime and continued with little effect (see box 4.6). the enactment and enforcement of various laws after 1951. As the indigenous people The Tenth Plan has framed a broad range have a special relationship with their lands, of policies and strategies for empowering they depend largely on the natural resources indigenous people through affirmative ac- available on their ancestral territories. As tion policies and programmes and revi- almost 80% are marginal cultivators (with sion of constitutional and legal provisions less than 1 acre) or small cultivators (having for inclusive political and bureaucratic 1-2 acres), they tend to experience enormous structures. The results of these activities, food insecurity. Data on operational land The Tenth Plan has along with recent donor initiatives, re- holdings reveal that huge proportions of in- framed a broad range main to be seen. digenous population are wage labourers of policies and with no land of their own for farming within strategies for the districts in which they live (see annex 4, Outcomes table 11). Only some 2.8% of the Tharu, 0.32% empowering Education: Among indigenous people, the of the Tamang, 0.76% of the Rai, and 0.63% of indigenous people literacy rates of Thakali, Byasi, Hyolmo, the Magar communities, respectively, have through affirmative Newar, Gurung, Limbu, Yakkha, Darai, self-operated land of more than 10 acres. action policies and Chhantel, Jirel, Dura, Rai and Magar rose in Being landless, the vast indigenous major- 2001 above the national average (53.7%), ity therefore has no access to resources re- programmes and although those of the other 30 indigenous lated to land ownership. revision of groups still fall below it. Literacy among constitutional and the Thakali, Byasi, Hyolmo and Newar ap- Employment: Although the majority of indig- legal provisions for proaches that of the hill Brahmins (75.6%) enous people engage in agriculture, some inclusive political and whereas rates for the Kusbadiya, Santhal, groups, such as the Newars, Thakalis, Marphali Jhangad and Chepang average approxi- Thakalis, Sherpas and Gurungs work in busi- bureaucratic mately 27%. Of the 352,000 Nepalese gradu- ness and industry. Almost one fourth of the structures ates and post-graduates, only 8.7% (30.5 indigenous population is engaged in non- thousand) are indigenous people – exclud- farm activities and, with the exception of some ing Newars (see Annex 4, Table 9). However, highly marginalized groups, indigenous of the 931, 500 persons who have SLC or people have a higher proportion of white-col- their equivalent, 18.2% are Janajatis (exclud- lar workers than the Dalits. A few, however, ing Newars) – a promising sign. such as the Raute, Kushbadiya, Bankariya, Kusunda, Chepang, Hayu, still depend on for- Health: Disaggregated data concerning the aging (hunting and gathering) and shifting health status of indigenous people are not yet cultivation. Others continue as pastoralists. available. However, according to the population census data, few members of indig- The 2001 Census revealed that the propor- enous groups have toilet facilities (see an- tions of people involved in prestigious white- nex 4, table 10) – an indication that sanita- collar occupations among Thakalis and tion campaigns have hardly influenced dis- Newars (see annex 4, table 12) are closer to advantaged indigenous people. Given in- those of the hill Brahmins; approximately creasing contacts from outside their remote 6-8% work as legislators, senior officials, homesteads, this may well mean an increase managers and professionals.

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Representation in government and politi- 10% of the world’s population, including cal positions: Because disempowerment that of high HDI countries, as disabled. At processes have stymied the human devel- least 12% of Nepal’s citizens are assumed opment of indigenous people, they have to suffer from the types of disability less decisive influence on policy/decision- schematized in annex 4, box 3.36 making bodies. They hold only 17% of the seats in the House of Representatives, al- Discrimination against PwDs is rampant though their share in the DDCs was 29%, in all communities in general and in rural/ and they have somewhat better representa- remote communities in particular. Even tion in the grassroots-level elected bodies their families tend to neglect their basic in some districts because of the concentra- needs (enough food, clothing, care concern- tions of their populations. However, their ing personal hygiene and medical treatment representation in the state bureaucracy and equal to that of the non-disabled). PwDs judiciary is extremely low: 2.4% of the judi- often languish in a corner or an isolated ciary and 2.3% of the total gazetted positions room or outside homes altogether (where Discrimination in government. Moreover, there has been no they can be housed separately), without against PwDs is improvement in the recruitment of gazetted proper care and participation in day-to-day rampant in all officers from indigenous people during the household activities or in any other cultural last 18 years (see annex 4, table 13). and religious activities. Beliefs in disabili- communities in ties as the result of sins committed in prior general and in lives, illiteracy, poverty, humiliation, and rural/remote PEOPLE WITH DISABILITIES (PWDS) lack of awareness and information have communities in resulted in the relegation of these individu- Estimates of the disabled population of als to the lowest rung of each stratum of particular Nepal range widely; according to the latest society. Women with disabilities face multiple census, they comprised 1.63% (0.37 mil- disadvantages because of their sex coupled lion). However, these numbers probably with their poverty. Even the mothers of PwDs represent the difficulties of obtaining infor- are termed alachhini – someone who brings mation about disabilities, particularly in bad luck – and are given low status within view of the WHO estimate of approximately their families and communities.

BOX 4.7 Overcoming disability

Amrit Ratna Shakya, a self-made industrialist with strong The Institute, which began with five trainees, now em- commitment, has overcome the prejudices of his commu- ploys 250 non-disabled workers. To date, Mr. Shakya has nity. Born in 1966, into the home of a Shakya family in supervised some 30,000 trainees, charging each Rs.125 to Patan, he fell victim to polio at the age of three. His Rs. 300 depending on the courses taken and provides free parents’ ignorance exacerbated his condition; they took training to 10 PwDs per year. His 12-hour workday brings him to traditional healers rather than to a hospital and kept him Rs 30,000 per month. him inside the house for two years, his mother bewailing his fate. The community in which he lived compounded the Always surrounded by trainees, he smiles as he poses pointed physical restrictions on the child’s movement, labeling him questions to unemployed non-disabled persons and those with a variety of epithets each time he ventured outside. PwDs who protest that barriers obstruct them everywhere. Silently observing his environment, he decided to challenge The father of a 7 year-old boy, Mr. Shakva also looks after an the stigma, completing schooling at home through the tenth extended family in Shri Darbar tole. He has not accepted grade and undergoing a three-month course offered by a any government or NGO grant, in part because he fears Japanese volunteer in fashion design, cutting and sewing in exploitation by NGOs that might threaten his enterprise. the Nepal Disabled Association in Kathmandu in 1981. After Instead, he envisions establishing an inclusive training cen- several years of working in this trade from home, non- tre that will contribute to dismantling the odds and ob- disabled friends deceived him in business dealings. He re- stacles that now face PwDs. acted by establishing the A R Sewing and Cutting Institute in Patan in 1991. Source: Based on Interview with Mr. Amrit Ratna Shakya, August, 2003.

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Legal reforms and policy initiatives ceived only limited benefits promised by The first government programme to help dis- the 1982 Act. At present, the Social Wel- abled persons began in 1964 in the field of fare Council supports income-generating Special Education (Integrated Education) for programmes; and a number of NGOs pro- the blind and visually impaired, followed vide soft loans. United Nations agencies, by its 1967 enlargement to accommodate I/NGOs, Community Based Organizations deaf children and its 1969 admission of (CBOs) and volunteer organizations also physically disabled children. The Special provide financial and technical support. Education Council was established in the Ministry of Education in 1973. During the The exclusion of disability issues from all International Year of Disabled Persons, 1981, national developmental processes has com- special education was expanded in all the pelled PwDs to demand the formation of Na- five development regions for all types of dis- tional Disabled Commission to design and abled persons. Significant expansion in Spe- develop plans and programmes to address cial Education started in 1993, when the their problems; its establishment has foun- Danish Government provided support to dered on insufficient resources. Indeed, the The problem of Nepal’s Basic Primary Education Project ineffective management and insensitivity of child labour in (BPEP) for the establishment of special edu- government agencies towards disability Nepal grows out cation in 56 districts. These special educa- problems is summed up by their failure to of the country’s tion initiatives exemplify the thrust of inte- implement the Disabled Protection and Wel- grating challenged children into mainstream fare Act of 1982 even after the approval of its widespread citizenship via special schools, Integrated Rules 11 years later. The National Coordina- poverty and Schools and Inclusive Schools that, taken tion Committee formed within the social inequity together, reach over 6,500 youngsters. More MoWCSW has prepared amendments to than 2,000 also receive education through this Act – which, however, still awaits sub- advocacy and welfare-based NGOs.37 mission to the House of Representatives for adoption by special ordinance. Only with The advent of democracy in 1990 allowed such measures can a paradigm shift from a PwDs to exercise their human rights and charity-based approach to a rights-based to establish advocacy-based NGOs.38 The approach begin to take place (see box 4.7). Constitution has guaranteed the rights, welfare and security of PwDs equal to other citizens without discrimination. CHILDREN The United Nations Standard Rules on Equalization of Opportunity for Persons The problem of child labour in Nepal grows with Disability of 1993 has emphasized out of the country’s widespread poverty the establishment of self-help organiza- and social inequity, along with prevailing tions and guided the government in its gender discrimination and the limited support of PwDs for their empowerment. health and education systems. Estimates of child labour in Nepal vary significantly The Tenth Plan addresses these issues, in- with definitions, methodologies and sample cluding the mainstreaming of PwDs in na- size. According to the national survey con- tional development. Yet although the gov- ducted in 1997, the incidence of child ernment promulgated the Disabled Pro- labour in Nepal was 26.7%, this labour be- tection and Welfare Act in 1982, practices ing defined in terms of children’s economic remained unchanged even after Rules participation rate irrespective of current were adopted for the implementation of school attendance. The figure dwindles to the Act in 1993. While identity cards were 22.3% if the definition specifies two or more distributed in 50 districts by the end of working hours per day and, further, to 10.8% 2001, those who carry them still have re- if defined in terms of economic participation

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BOX 4.8 Children in Nepal cols to CRC on the Prohibition of Traffick- ing of Children for Commercial Sexual Ex- Out of every 100 Nepalese children: 84 live in villages; 90 are ploitation and Pornography and on the immunized, 47 are malnourished and 40 belong to extremely poor use of Children in Armed Conflict, as well families (CBS, 2002a), and 1.3% of marriages involve children as the SAARC Convention on the Welfare below the age of 18 (ICIMOD/SNV/HMG/N, 2001). of Children. The country’s 2002 agree- About 42% of the total population are children below the age of 16. ment with ILO aims at eliminating child Of every 100,000 pregnant women, 559 die in childbirth each year. labour within five years and is being Only 88% of the population have access to potable water, 27,000 children die annually of diarrhoea (UNICEF, 2002). Eighty-Six per- implemented in 35 districts in respect of cent of the boys and 74.6% of the girls are enrolled in the country’s bonded labour, child porters, child 28,000 primary schools, but only 51% of the total will complete the ragpickers, child domestic workers, child primary level (MoES, 2001). Girls aged 10-14 work twice as much as boys in the same age group. labourers in the carpet sector and children in mining, as well as children traf- Among the 2.6 million children engaged in different sectors of child ficked for sexual or labour exploitation. labour, at least 40,000 are bonded labourers (ILO/CDPS, 1999) and another 5,000 working and living on the streets (CWIN, 2003). Annually, some 12,000 women and children are trafficked to India Despite these commitments and other in- (ILO-IPEC, 2001). ternational, regional and national human

Sources: ICIMOD/SNV/HMG/N 2001; CBS 2002a; UNICEF 2002; MoES 2001; ILO/CDPS rights instruments to protect children’s 1999; CWIN 2003 and ILO-IPEC 2001. rights, innumerable Nepalese children remain deprived of their fundamental rights (see box 4.8). Some of the key issues that of children not attending school.39 A compari- emerged from a recent study42 include the son of the census data for 1991 and 2001 re- following: veals that child labour between the ages of ! The current laws governing child 10 and 14 increased from 22.9% to 28.83%.40 labour contradict one another in respect of defining a “child” and the These estimates still do not adequately re- minimum age for entry to hazardous flect the worst and most hazardous forms work. They also fail to categorize child of child labour, the work of bonded chil- work and child labour explicitly. dren, trafficking in girls and comparable ! The Labour Act covers only formal em- abuses and atrocities. The data generated ployment, neglecting the informal sec- from Rapid Assessments project an estimate tor and self-employment, in which most of 127,000 children (5-18 years) working in child labourers are concentrated. the seven selected worst forms of child ! The lack of a comprehensive birth and/ labour, the majority (80%) trapped away or citizenship registration system (cur- from their homes.41 rently covering only 40% of the population) not only impedes the enforcement of the policy framework, but also ob- Legal reforms and policy initiatives structs school registration, particularly for Over the years, particularly after its ratifi- people from marginalized social groups. cation of the Convention on the Rights of ! There exists no mechanism to regulate the Child (CRC) in 1990, Nepal has labour contractors and predatory crimi- worked with the rest of the world com- nal contracting practices. Nor is the munity to ensure children’s rights. The present capacity to absorb existing child country adopted its Children’s Act in 1992 labourers into rehabilitation progra- and its Child Labour (Prevention and mmes and alternatives adequate. Regularization) Act in 2000, along with ! Current laws focus on prostitution (the ratifying the ILO Convention No. 182 on result of trafficking) rather than the pro- 13 September 2001. Similarly, the govern- cess of trafficking itself, resulting in the ment has also signed the optional proto- criminalization and the marginalization

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of the victims and not the traffickers. Nor BOX 4.9 Children affected by conflict is there any clear distinction between migration and trafficking or between the Since the beginning of the “People’s War” waged by the Maoists, issues of trafficking and its control for the number of children affected has increased daily. According adults versus children. to Child Workers in Nepal (CWIN) statistics (September 2004), the insurgency has caused at least 345 (247 boys and 98 girls) deaths, another 2,000 orphaned and about 8,000 displaced. Among those As indicated earlier in this chapter, every displaced, some have left for neighbouring Indian cities, some are year some 12, 000 women and children are living with relatives away from their homes and others have landed in exploitative labour sectors in Nepal’s urban centres. Conflict trafficked to various Indian cities for com- has disrupted the education of hundreds of thousands enrolled in mercial sexual exploitation – 20% of them schools. Further, pressures for higher security budgets have de- under the age of 16. Similarly, thousands of voured resources for all child welfare programmes, notably nutrition and health along with education. Rights recognized more re- other children are trafficked inside and out- cently, such as that of child workers to voice their grievances, side the country for different exploitative have been all but eclipsed. sectors, among these domestic service, cir- In addition, thousands of children have allegedly been “abducted” cuses, the carpet industry and various ag- by Maoists to take part in their mass meetings. The security forces ricultural tasks. have arrested over 200 more. The psychological trauma of tens of thousands of children who have witnessed the conflict directly or Child sex abuse remains a taboo subject in through the media are incalculable.

Nepalese society. Although a few cases of rape Source: CWIN 2004. are reported, most child sex abuse goes on silently, abetted by social stigmatization and the inaction of law enforcement personnel. ing its ramifications in education and so- Indeed, the sexual abuse of boys is completely cial values. The last involves support from ignored. Moreover, there is little awareness or the community, including the formulation acknowledgement of sex abuse that does not and enforcement of labour and social involve direct physical contact. policies. Since poverty begins with the children, investing in every child and en- Nonetheless, the commercial sexual ex- hancing their capabilities from birth on – ploitation of children has become a criti- if not in their care prenatally – is urgently cal issue. Of the estimated 5,000 sex work- required to address the root of poverty ers in Kathmandu, more than 20% are un- and second-generation empowerment. der the age of 18. There have been a num- Indeed, evidence indicates that the eco- ber of reports of exposing children to por- nomic benefit of eliminating child labour nography, using children for pornography far outweighs its costs; the internal rate and the prostitution of both boys and girls of return is 43.8%.44 by both Nepalese citizens and foreigners. Street children are particularly vulnerable to commercial sexual exploitation; at least SENIOR CITIZENS 5% of street boys report abuses by foreign paedophiles operating in Kathmandu. When ageing is embraced as an achievement, About 30% of the capital’s sex workers are the reliance on the skills, experience and re- underage, most of them at work in dance sources of the older groups is recognized as and cabin restaurants.43 And as box 4.9 in- an asset in the growth of mature, fully inte- dicates, the ongoing conflict has increas- grated, human societies. In Nepalese society, ingly abused children. as in many others based largely on agriculture, the elderly have significant influence in Because child labour stems from poverty making decisions, resolving conflict and lead- in general, eliminating the worst forms of ing the family. Within the household, their child labour requires an effective approval and acceptance has traditionally programme of poverty alleviation, includ- been sought because of their bridging roles in

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maintaining traditions and culture. They access to physical and financial capital. De- have thus played an important part in miti- spite the subordination and inequality that gating generational conflict and maintaining women face, they are slowly moving to- social stability, particularly within the frame- wards empowerment. work of the extended family. However, mod- ernization has tended to favour nuclear fami- Their gains, however, have not been lies and has therefore threatened the place of matched in other areas of discrimination/ senior citizens in Nepalese society. exclusion reflected in terms of caste/ ethnicity, religion, age and disability. More- The proportion of the country’s elderly popu- over, certain historically excluded regions, lation (above 60 years) has increased from notably the mid-western and far western 1% in 1961 to 7.21% in 2001, indicating sig- development regions, remain the home of nificant improvements in health standards, most of Nepal’s poorest and most disad- though well below the ratio of high-HDI vantaged people, both Dalits and Janajatis, countries. Traditionally, Nepal’s pension along with the children, women, and dis- Nepal’s plan is the only system of social security for abled among them. Given this geographic programmes for older people. However, its coverage is very dimension of exclusion in Nepal, the path senior citizens are limited. The Tenth Plan aims to maximize towards empowerment for these citizens guided by the the knowledge, skill and experiences of the lies in the devolution of true authority to elderly in social development by creating an their local governance bodies. welfare approach environment conducive to respect, protection rather than a and convenience for older people. It has ar- Generalized empowerment strategies and rights-based ticulated a ten-point programme, including plans of action become meaningless if conception the development of laws and regulations, the marginalized and disadvantaged groups encouragement of NGOs and CBOs in the remain isolated or ignored, particularly be- welfare, care and rehabilitation programmes cause mainstream development policy and of senior citizens, and additional provisions programmes almost invariably fail to reach for them in health and transport services. them. Moreover, given their vulnerability to sickness, economic shocks, crop failure, Existing provisions for the protection and natural disasters, and violence, they require advancement of senior citizen, however, fall particular government attention; unless far short of rapidly growing needs. Not only special measures bring them into the main- is the social security system very weak, but stream of the socio-economic development the rights of the elderly have not yet received process, their continuing poverty will re- the prominence manifested for other groups. tard the economic growth of the country as Like action to date for PwDs, Nepal’s well as undermine its social stability and programmes for senior citizens are guided diminish both its cultural heritage and de- by the welfare approach rather than a rights- velopment. Specially tailored policies, strat- based conception. egies and plans of action are required to benefit the marginalized and disadvantaged groups through awareness and ca- SUMMATION pacity-building, education, economic independence, and political empowerment. Discrimination based on patriarchal struc- Equally important, authorities at all levels tures has resulted in stripping the dignity, throughout Nepal must strictly enforce con- self-respect and confidence of the majority stitutional provisions and laws, as well as of Nepalese women, a particularly impor- implement appropriate policies and tant population segment because it cuts programmes that ensure grassroots partici- across all groups. Women’s empowerment pation and strengthen the organizational calls for their right to develop their intellec- capacity of these groups through social tual capital, along with broadening their mobilization.

68 EMPOWERMENT THROUGH SOCIAL MOBILIZATION

CHAPTER 5 Empowerment through social mobilization

As the Nepal Human Development Report While capacity-building usually refers to As a vehicle of 2001 indicated in its discussion of social mo- knowledge transfers to individuals or organizational bilization, this time-tested Nepalese activity groups, social mobilization enables people acts as a catalyst for organizing the members to fuse what they themselves know with capacity- of a community to take group action by shar- external information and techniques so as building, social ing their problems and seeking their own to carry out particular activities. For disad- mobilization solutions by pooling their own resources, ob- vantaged groups in particular, this trans- functions taining external help and participating ac- formation increases their power relative to primarily as a tively in the decision-making processes that that of other groups in their socio-economic shape their lives as individuals and as mem- and political environments. Empowerment mechanism of bers of households and the local polity.1 The in this sense is thus an outcome of both the empowerment process helps people move from the passive capacity-building of people and a reform of status of welfare recipients to that of citizens the rules and practices that oppress them. who possess vital knowledge of their com- Social mobilization reduces poverty be- munities and localities and therefore know cause it is based on the premise that the best how to effect – and direct – change at poor are willing and able to carry out a num- the local level. Few strategies so fully embody ber of functions themselves to improve their the human development paradigm in all the situations, given encouragement to form dimensions of empowerment – the socio-cul- their own organizations for promoting their tural, economic and political. Social mobili- development through their own efforts and zation thus enhance both individual and participating actively in decision-making group capabilities, widening people’s choices that enhances their livelihoods. and enlarging the range of things they can do and be. Unlike social engineering attempts The scope of social mobilization reaches by external experts from above – often pa- well beyond pooled savings, training effort, ternalistic and usually unsustainable – social literacy or hygiene campaigns or even mobilization processes place the values, pri- choices concerning basic livelihood oppor- orities and agency of citizens at the grassroots tunities. It concerns not only improving level at the centre of development efforts. project performance by making claims on Though a useful – indeed, necessary – instru- external resources but also demands ac- ment of any broad-based development strat- countability from powers that be. In itself, it egy, it usually requires supply-side input and educates citizens politically in the art of support to work effectively and sustainably. governance and the pursuit of rights and civic roles.2 As a vehicle of organizational capacity- building, social mobilization functions pri- In its broadest sense, then, social mobiliza- marily as a mechanism of empowerment. tion is a dynamic, participatory process of

69 NEPAL HUMAN DEVELOPMENT REPORT 2004

empowering weak and alienated groups at politically. Its analysis of initiatives, out- the individual, community and institu- reach and actors, approach, modality and tional levels for their sustainable socio-cul- outcomes is based on the findings of a recent tural, economic and political advancement; survey of socially mobilized communities the sustained nature of the outcome – (SSMC)4 conducted exclusively for this Re- whether in livelihoods, literacy or any other port and supplemented by existing literature realm – brings about change in the existing from various secondary sources. Yet again, power structure that mitigates poverty, re- we will find that implicit incongruities in duces the risks of social conflict and en- approach and modalities culminate in sig- courages smooth transitions in the com- nificant disparities in outcomes – very much munity or society in which the effort takes the same mismatchings highlighted earlier place.3 At the individual level, people may in chapter 2. experience immediate psychological empowerment – increases in self-respect, self- esteem or self-confidence and capacity – THE INITIATIVES AND Outside the formal that evolves from collective action. At the THEIR OUTREACH structures of community level, this empowerment allows individuals and groups to mobilize Outside the formal structures of statecraft, statecraft, Nepal themselves towards the goals of socio-eco- Nepal always has had a distinguished tradi- always has had a nomic and political change that they them- tion of community networks and partner- distinguished selves define. ships. Guthis, Dhikurs and Parma – the tradition of equivalent of today’s trusts, cooperatives, community networks To provide lessons for the future, this chap- and reciprocal allocation of inter-house- ter undertakes an assessment of Nepal’s ex- hold labour – have long existed and thrived. and partnerships perience in social mobilization by examin- Formally, interventions like the SFDP began ing the efficacy of the channels through in 1975, aiming at the mobilization of poor which social mobilization may contribute to farmers, and some non-governmental empowerment socially, economically and programmes followed suit during the 1980s. But social mobilization in Nepal gained true momentum after the changes of 1990, BOX 5.1 Coverage and complementarities which unambiguously opened space for all forms of organizations, as well as the indi- SMAs are implementing their programmes in certain VDCs/mu- vidual exercise of civic and political free- nicipalities within the districts and certain wards/settlements doms. In part, these initiatives constituted within the VDCs/municipalities without fully covering target a reaction to the flaws of the Panchayat pol- households even in the wards/settlements. Many SMAs have been working with less than half their target households for many years ity, 1960-1990, which showed two funda- in the same VDCs, leading to frustration among the neglected mental weaknesses: households on the one hand and higher management costs on the i) the inadequate and exclusionary outreach other. of public service delivery; and To achieve cost-effectiveness, a SMA must concentrate on a small ii) the shortcomings of devolution in prac- area rather than dispersing its energies over a larger geographi- tice at the district level, particularly in the cal area. More than one SMA operates in the same geographical area, organizing the same set of targets for the same activities – actual empowerment of local bodies. such as micro-finance. This has resulted in duplication of work and unhealthy competition. SMAs should develop complementary rela- These deficiencies stemmed intrinsically from tionships; the service delivery agencies should use the delivery a political regime that undervalued and un- forums created by social mobilization. Clear guidelines for SMAs, as well as government agencies, should be drafted to foster these dermined the potential of collective human essential linkages. agency to better livelihoods, as evidenced by the banning of political organizations and the Source: Sah 2003. denial of their just demands for participation in public affairs.

70 EMPOWERMENT THROUGH SOCIAL MOBILIZATION

The changes of 1990 not only allowed the TABLE 5.1 Coverage of SMCs by eco-development region adaptation of tested practices from abroad No. of Total Covered for replication on Nepali soil, but also district households ('000) households (%) spurred a reinvigoration of indigenous in- Ecological belt stitutions and their assumption of new tasks and mandates. This included campaigns Mountain 8 211.4 43.8 that exposed the deep historical Hills 24 1085.3 43.8 disempowerment of a sizeable share of Tarai 12 1117.7 32.6 Nepal’s people socially, politically and economically. The earliest alliances formed TOTAL 44 2414.4 38.4 were the Nepal Federation of Nationalities Development region (Janajati Mahasangh), the Dalit NGO Federa- Far Western 7 314.0 45.3 tion, and the Women’s Security Pressure Group. Other interest groups also emerged, Mid-western 6 318.0 42.8

among them the trade unions, the teachers’ Western 13 710.2 43.4 alliances, consumers’ associations, environmental and human rights groups, and Central 9 566.8 33.0 a coalition of NGOs that lobbied for the Eastern 9 505.4 30.0 elimination of bonded labour, the TOTAL 44 2414.4 38.4 “Kamaiya” system and related evils. Al- though discrimination on the basis of caste Source: Sah, ed. 2003. has been illegal since 1963, discriminatory social practices persisted in the rural areas, along with restrictions on occupational ern region (see table 5.1). Approximately mobility. Yet these too are changing for the seven out of every ten VDCs and munici- better, because of growing consciousness palities were covered by at least one SMA; through educational, as well as civil soci- about half the total members of SMCs are ety activism by organizations such as the women. Dalit Mahasangh.

Nonetheless, the outstanding feature of ACTORS, APPROACHES AND the 1990s was the concerted attempt to MODALITIES organize vast sections of the population to secure socio-economic goals through a SMAs can be broadly classified into four cat- variety of models. Sustained, meaningful egories, depending on the type of agency: experiments in mass mobilization took i) government-assisted; place in rural areas, as well as towns and ii) donor-assisted; cities. The catalytic support of external so- iii) NGO-assisted; and cial mobilization agencies (SMAs) played iv) those assisted by financial institutions. a critical role in the initiation of these processes. One or more of these agencies have The government initiatives that work in continued efforts for social mobilization support of poverty reduction include such in all 75 districts of the country, creating programmes as Bishweshwor Among the a good deal of duplication in the absence Poor (BAP), Production Credit for Rural of complementarity (see box 5.1). A recent Women (PCRW) under the Women’s De- study5 of 44 districts indicates that out- velopment Programme (WDP), Jagriti, the reach benefited approximately 38% (over 1 western Tarai Poverty Alleviation million) of the households,6 more propor- Programme, the Upper hills Poverty Alle- tionately in the mountain than in the Tarai, viation Programme and the Remote Area and more in the far western than in the east- Development Programme, which have ac-

71 NEPAL HUMAN DEVELOPMENT REPORT 2004

tive social mobilization components. The ter for Self-help Development Bank and poor are identified through Participatory Development Project Service Center Rural Appraisal and household surveys; (DEPROSC), target landless labourers, small typical interventions involve skill devel- farmers, cottage industry workers, artisans opment, micro-credit for micro-enterprises, and other marginalized groups in the rural local-self governance and physical infra- areas. SFDP, for instance, organizes its tar- structure development. get households into self-help groups that federate into cooperatives known as the Donor agencies have had great influence on Small Farmers Cooperative Limited (SFCL) social mobilization in Nepal. Along with after about four or five years. INGOs, these agencies – among them, UNDP, UNICEF, GTZ, SNV, NORAD, JICA, PLAN An assessment of partnership among International, Lutheran World Service, CECI, SMAs9 reveals that among the seven Gov- Helvetas, CARE/Nepal, ActionAid, Redd ernmental agencies, 50% have linkages Barna – execute their grassroots components with the INGOs and their support organi- Partnerships need largely through local elected bodies, NGOs zations, another 33% have working rela- to be widened and and CBOs. The major poverty reduction tionships with local government bodies programmes implemented with such assis- (VDCs and DDCs)10 while the rest enter strengthened tance have mobilized about 750,000 men and into partnerships with area-specific NGOs. because the SMAs women in 62 districts. Many of the UNDP- Among 13 INGOs studied, 43% work with have not yet linked supported projects7 revolve around social the local government bodies, 33% with the their programmes mobilization components. Working directly governmental agencies, 14% with NGOs with one another through the DDCs and VDCs, their sequence and less than 5% with CBOs. Most of the of activities includes the formation of Com- NGOs have partnerships with resource munity Organizations (COs), the building providers such as donors, INGOs and re- of social capital, the channeling of credit or cipient CBOs or self-help groups. Among identification of sources for micro-enterprises, the 11 NGOs, 44% work with the VDC and training, seed grants for productive infrastruc- DDC, 33% with governmental bodies and ture and environment management.8 the rest with the other NGOs and INGOs. Among the financial institutions, mainly The NGOs are a major catalyzing force; ap- the banks and cooperatives, 50% work proximately 45% percent of Nepalese with the governmental agencies, 25% with NGOs have mandates to promote commu- NGOs and the remaining 25% with the nity development, broadly defined; one- commercial banks. Clearly, partnerships third of these operate from Kathmandu. need to be widened and strengthened be- Many NGOs take a rights-based approach cause the SMAs have not yet linked their to mobilizing people, focusing on build- programmes with one another. Without ing sustainable networks, training, creat- proper coordination and complementarity, ing awareness, and advocating pro-poor they tend to duplicate their efforts; many policy changes. They work on diverse such programmes therefore operate both themes, from poverty reduction to child inefficiently and ineffectively. welfare and youth empowerment, health services to services for the handicapped and disabled and from the prevention of The holistic versus targeted trafficking in girls to the control of HIV/ approach to social mobilization AIDS and drug abuse proliferation. In general, SMAs follow either a targeted model by organizing a particular group of The programmes driven by financial insti- people (e.g., the poor, Dalits, women) or a tutions such as the Rural Development holistic model by organizing people with- Banks, the Intensive Banking Programme, out any differentiation. Both models have SFDP, Nirdhan Uthan Bank Limited, Cen- drawn on similar principles of mobilizing

72 EMPOWERMENT THROUGH SOCIAL MOBILIZATION

groups, but have reached beyond specific programme monitoring approach to local manifestations of poverty such as income, development itself holistically and linking literacy, health and sanitation, while also the micro, meso and macro levels for pro- working towards a wider representation poor policy-making and advocacy. How- of society. The modalities of these agen- ever, some of the weaknesses of this model cies reveal that the holistic or broad-based lie in blanket approach to the social mobili- approach achieved greater consideration zation of local communities; exclusion of than the targeted approach11 in launching the ultra-poor; limitation of capacity-build- project activities. The agencies supported ing largely to the group leaders; low em- by government bodies and banks/coopera- phasis of literacy; shortcomings in devel- tives tend to emphasize the targeted ap- oping clear withdrawal strategies; lack of proach.12 The joint ventures of INGOs and resources for scaling up; and weak public- government organizations, however, are in- private partnership.14 creasingly stressing the holistic approach to social mobilization. SMAs working un- Models of women’s empowerment (Pact) der the umbrella of INGOs are almost and those targeting NGOs (for example, SMCs in general equally divided between the two models. BASE and FECOFUN) score poorly in terms have unified once- of positive impacts on livelihood condi- unorganized By looking at the types of SMCs, their focus tions. The finance/micro-credit models (e.g. members of the areas and their demonstrated results, one can Nirdhan, SFCL) achieve only moderate rat- begin to gauge how Nepal has fared in all these ings in these respects. On many indicators communities, raised diverse experiments on empowerment. The of sustainability, women-targeted models their levels of sections that follow, based on the study con- such as Pact-Kanchanpur, forest user awareness, built ducted for this Report, present a broad over- group-targeted models such as LFP, tech- capacity and view of the state of social mobilization nology-focused models such as CEAPRED- throughout the country13 (see annex 5). Dhankuta, hard-core poor-targeted finance improved the models such as Nirdhan and SFCL- livelihood conditions Rupandehi and holistic models such as of the people with PERFORMANCE OF SOCIAL VDP score high (see annex 5). whom they work MOBILIZATION Significant variations in aggregate impact SMCs in general have unified once-unor- can be attributed to usefulness of training; ganized members of the communities, usefulness of entry-point activities; deci- raised their levels of awareness, built ca- sion-making processes; knowledge of pro- pacity and improved the livelihood condi- cess; transparency in group responsive- tions of the people with whom they work. ness; leadership quality; relationships with The programmes have also increased partner agencies; mutual trust; and the im- people’s access to resources/loans, fostered pact of conflict on the functioning of groups. habits of saving, and created opportunities The success of SMC empowerment for participation in training and employ- programmes should focus particularly on ment. The UNDP-supported VDP, the DFID- these nine factors. supported Livelihood and Forestry Programme (LFP) and the government- The major problems faced by the majority of implemented BAP models rate very well in the SMCs include: insurgency; lack of en- terms of enhancing livelihood conditions. thusiasm among poor people to join groups; The strengths of VDP include the scaling- poor coordination with partner agencies in up of holistic social mobilization processes, general and government agencies in particu- adding value through a range of vertical lar; non-availability of training that suits the initiatives adjacent to the “motherboard” genuine needs of the communities; and lack of social mobilization; installing systematic of knowledge of the role of government.

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Figure 5.1 Level of empowerment of grassroots organizations their marginalization by dominant groups, dissent has become rampant. The violent Maoist insurgency that began in parts of rural Nepal in 1996 has capitalized on the many real as well as imagined frustration of such people. Generally, by attempting to bring people from different backgrounds into a common forum and fostering cooperation, social mobilization has generated and consolidated bases of social capital. Although difficult to quantify, the spillover benefits of this type of capital formation seem immense.

In assessing the status of organizational ca- The diverse multi- The very poor and Dalits have not yet been pacity-building as a mechanism of empowerment, the SSMCs utilized a set of qualita- ethnic, caste-ridden mainstreamed by the programmes largely because of weak dissemination of infor- tive indicators for eight different dimensions nature of Nepal mation about the programmes, lack of in- of institutional capacity-building. All eight and its stratified terest and the inability of these groups to were measured on a five-point ordinal scale socio-economic make regular deposits to the group ac- between the most desirable (5 points) and worst (1 point) outcome. The average index structures pose count. Other problems include: very short duration of programmes; budget limita- for each indicator is then derived by dividing particular tions for covering larger areas; high inter- the total score by the total sample cases. The challenges to est rates of the micro-credit programmes; total score is simply the actual response uniting varied low level of funds available for loans; dif- count of an indicator multiplied by its re- interests to make ficulties in repaying loan on time; poor spective predefined values (from 1 to 5). Com- monitoring of loans; need for collateral in posite indexes for different dimensions are coherent collective some cases; and failure of enterprises due then derived by taking the average of respec- claims on to poor market studies. tive individual indices. Likewise, the over- development all index of institutional capacity-building Additional problems include a lack of com- has been computed by taking the simple av- mitment among members, the vested inter- erage of the composite indices of each di- ests of some group members and, occasion- mension. ally, political interference. The overall index of organizational capacity-building stands at 3.23 (out of a maxi- THE IMPACTS OF SOCIAL mum value of 5) with an average score of its MOBILIZATION dimensions ranging between 2.2 (accountability) to 4.2 (decision-making). More spe- Social Empowerment cifically, decision-making processes in SMC The diverse multi-ethnic, caste-ridden na- are rated among the highest, followed by ture of Nepal and its stratified socio-eco- an emerging sense of trust and solidarity nomic structures pose particular challenges among group members. An overwhelming to uniting varied interests to make coherent majority of respondents recognize the in- collective claims on development. Through crease in trust, self-confidence, and a sense much of history, the country has honored of altruism after joining the SMCs. They also the co-existence of all diverse interests in feel positive about their ability to make de- relative harmony. In recent years, however, mands for public services, to work together, as many have grown increasingly aware of and to manage internal conflicts better.

74 EMPOWERMENT THROUGH SOCIAL MOBILIZATION

By contrast, accountability, followed by trans- time or contribute deposits to community parency and partnership, emerged as the savings. This approach thus excludes two weakest areas in most SMCs with its implica- distinct groups, the rich and the very poor tion for the long-term sustainability of the (see table 5.2);15 the former opt out because programmes. The relative values of the differ- of apathy, the latter because of destitution. ent dimensions of organizational capacity- building are provided graphically as Spider Those typically excluded are the ultra-poor, Web diagram (see figure 5.1). The average the Dalits, the landless, specific ethnic score of the indicators underlying each di- groups such as the Tharus, and, in some mension of capacity-building are set out in cases, recent migrants to a particular local- annex 5, table 1. ity. Of the 20 “models” surveyed for this chapter, only one SMA did not have any The result indicates that although the aver- member from a known marginalized group, age score on the level of participation in the but the majority of respondents claim that project cycle and decision-making process between 50-80% of their peers in the SMCs is quite high (about 4 out of 5), the perceived represent such populations. The study in- While level of transparency and accountability, indicates that some SMCs do not incorporate mobilization cluding partnership/alliance with other or- marginalized members because their ganizations, is fairly weak. This type of trans- programmes have been designed in such processes in Nepal lating qualitative attributes into quantitative ways that existing members will not wel- play important indicators provides not only a benchmark for come such entrants, or because the inten- socio-political the different dimensions of organizational tion of the SMAs themselves does not re- roles through capacity-building, but also a basis for devis- flect an explicit interest in ensuring their ing strategies to strengthen the weaker as- inclusion. Alternatively, such people may greater inter- pects of capacity-building. One should, already belong to similar groups elsewhere. ethnic and inter- however, be cautious about interpreting the In this context, the study also found a wide communal results, given the subjective attributes of ca- variation in the way poverty is defined and interaction, pacity-building. The relatively higher val- disaggregated by SMAs charged with mo- ues observed for institutional capacity- bilization tasks. Their failure to define and problems of building do not necessarily ensure that the disaggregate people concretely, based on the exclusion persist COs will rate this indicator similarly over severity and depth of poverty, often by- time. Many changes in the course of insti- passes the ultra-poor and inadvertently tutional development are likely to occur as excludes them from the pool of potential the level of awareness and economic aspi- beneficiaries. rations of the members change. Other SMA practices perpetuate exclusion, often inadvertently. Some agencies limit Persistence of Social Exclusion their operations geographically for reasons While mobilization processes in Nepal play important socio-political roles through BOX 5.2 Creation of a new Dalit caste greater inter-ethnic and inter-communal interaction, problems of exclusion persist (see A Limbu boy of Budhabare fell in love with a local Kami girl; boxes 5.2 and 5.3). One risk inherent in eventually, they got married. The Limbu community did not ac- SMCs is that they will simply reproduce the cept the union. In many communities, including the Limbus, when power structures and relations of existing non-Dalit boys marry Dalit girls, the boys’ caste status descends to that of Dalit. Therefore, the caste of the Limbu boy became communities – hijacking by middle-income, identified as Tiruwa Bishwakarma, since he had married a high-caste groups. While a minority of Bishwakarma girl. Consequently, the family name of their off- SMCs are gender-specific or ethnicity-based, spring has now become Tiruwa Bishwakarma. most are open to those who show interest Source: ActionAid/Nepal 2003. and, implicitly, those who can afford the

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BOX 5.3 Disempowerment: issues of social justice

CASE I: Development interventions and the ultra-poor CASE II: Water resources and the ultra-poor

In the late 1990s, in a village in Syangja district, SMCs recog- Villagers of Brhamapuri village of Bara district awaited gov- nized construction of rural roads as a top priority. Because ernment help in repairing their traditional irrigation system, of porter charges, the villagers were forced to sell their which had stopped functioning 16 years ago when intra-vil- agricultural produce at very low prices at Waling, the near- lage unity had broken down. After their mobilization under est market, 7 km away, and buy consumer goods at a very VDP, they learned that they had the power to plan and utilize high cost. The problem had hobbled them for many years. their grant. Through participatory planning, they decided to The SMCs stood ready to share most of the cost; the VDC repair the irrigation system themselves. This rekindled the stepped in, and the people contributed free labour. A road feelings of mutual cooperation that had once prevailed in the was constructed and mechanized transport commenced. But village; the irrigation system was successfully repaired; and everyone forgot the fate of 36 families whose lives depended people were pleased to harvest larger crops again. But about upon porterage. These families became paupers overnight. a dozen poor families in the village, either landless or too far Upon hearing this case, the SMCs/VDC and SMA made ar- from the command area of the irrigation system, found them- rangements to help these families with a credit package. selves excluded from the prosperity. Similar instances abound Some received loans of approximately Rs. 3,000 (because in cases of drinking water as well. Once a natural resource their absorption capacity was low or their credit-worthiness like water is exhausted, the poor lose forever any opportu- was low or the SMCs/SMA did not have sufficient lending nity of benefiting from it. Experience indicates that such funds), a sum completely inadequate to compensate for their patterns of exclusion could be resolved by: (a) following an regular monthly incomes of approximately Rs. 3-4000. Many approach that benefits each family by using more than one of these families emigrated to more remote parts of the technology (such as a closed conduit system, water harvest, district. The frequency of these kinds of painful choices calls water pumping etc. in case of drinking water) and (b) estab- for a fuller accounting of the needs of the most vulnerable lishing equal rights in quantitative terms. In Akwua of Galyang people at the stage of project design. (Syangja), the SMC divided the quantity of irrigation water equally among the households and ensured that those households which needed more water (because of larger fields) could buy from those that had surplus water (because they had no land or less land to irrigate).

Source: UNDP 2004c.

Lack of synergy and of cost, or accessibility, or in some cases, a oriented monitoring system.17 This will con- complementary lack of directives from such local authori- stitute a radical departure from the tradi- ties as DDCs; this leaves isolated hamlets tional MIS, which focuses only on moni- inputs has also neglected. Many SMAs have discretionary toring of inputs. resulted in powers so wide that they need not account duplicating efforts for the whys and hows of their targeting Impacts on livelihoods and diminishing particular groups; they thereby exclude the voiceless and disadvantaged. In a number The SSMC used 18 different indicators to effectiveness because of similar cases, even when the poorest are assess the impact of social mobilization on of fragmented motivated to join SMCs, they do not receive livelihoods after the intervention of SMC allocations of their fair share of benefits,16 usually because programmes.18 The aggregate index shows energies and other of underlying inter- and intra-group con- that improvements in the indicators of live- flicts. Respondents in the SSMC study at- lihood are very good and that differences be- resources tributed injustices in the distribution of ben- tween the programmes are minimal in this efits to lack of equity (36%), unclear rules respect (see annex 5, tables 2 to 5). But (22%) and exclusion in decision-making CEAPRED-Dhankuta has the best index (20%). Insuring inclusion thus requires ac- and ActionAid-Kanchanpur, CARE-Doti countability-based social mobilization, and CEAPRED-Doti the poorest. built around incentive packages for mobilizers working in the remote parts of The SSMC used nine different indicators to the country. At the same time, SMAs should assess the impact of social mobilization on be required to produce intended results that women. These included factors ranging can be reflected in an inclusive, benefits- from an increase in household burden to

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TABLE 5.2 Magnitude of exclusion

Level of poverty Sample households Households participating % in leadership (No) in programmes (%) positions

Least poor 198 94.9 46.4

Middle poor 1520 65.5 51.1

Poorest 1228 41.0 2.5

TOTAL 2946 57.2 100.0

Source: UNDP 2003c. literacy and employability and enhanced by adequate resources, this kind of effort influence in intra-household decisions to a can breed disenchantment. On the basis of decrease in instances of discrimination their fieldwork, some scholars have pointed against the school enrolment of girls. De- out that one reason the Maoists emerged Age-old spite an uneven record across regions, ag- strongly in the mid-west was their attrac- inequities in the gregate improvements are tremendous. tion of young people who were apparently Some programmes that targeted women aware and politically mobilized, but disen- distribution of have significantly enhanced their absorp- franchised – individuals who had “experi- assets and power tive capacity for credit, registering 25% in- ences of realities other than those of the remain barriers creases in the number of clients for loans.19 daily life of the village.”21 The spread of to the As to frequent claims concerning amplified meagre resources across the length and demands on the time and workloads of breadth of the country in the name of social participation of women members of multiple SMAs, the mobilization may actually be counterpro- poor citizens in SSMC confirms that as several SMAs en- ductive; scattered interventions neither add community courage weekly meetings, multiple member- value nor result in notable returns to invest- organizations ships can be burdensome; on average, how- ments in social mobilization. To the extent ever, across the 20 different models sur- that SMAs and development agencies work veyed, only 18 meetings per year seemed to in a complementary fashion, with combined be taking place – with reduced frequency resources and vision, they can reduce the as armed conflict intensified. problems inherent in this kind of nationwide coverage. Lack of synergy and complementary inputs has also resulted in duplicating efforts and diminishing effectiveness because of frag- Economic empowerment mented allocations of energies and other Rural Nepal is home to some of the poorest resources. On the whole, though, as a re- human settlements in the world. Largely ag- port on the status of socially disadvantaged ricultural households that rely on farming groups notes, considerable progress has small plots of seasonally irrigated or rain- taken place in the advancement of “backward fed lands, or wage labourers who work for groups” both socially and materially since others, often under semi-feudal conditions, the surge of SMCs in rural Nepal.20 they have few, if any, income-earning opportunities beyond the relatively meagre Nonetheless, those SMAs that limit their en- returns of these agricultural activities. To gagement to “awareness-building” of civil upgrade their economic standing, they need and political rights among marginalized greater access to new methods and tech- communities risk significant failure rates. nologies, as well as credit sources to enable “Educating” such groups is, of course, a them to borrow against future earning ca- valuable end in itself. However, unless the pabilities. The absence of the most modest growing consciousness of rights is backed financial supports severely limits poor

77 NEPAL HUMAN DEVELOPMENT REPORT 2004

people’s range of opportunities. This is why BOX 5.4 Community-managed insurance: a cushion for the poor the idea of organizing people around the

CASE I: Livestock material incentives of savings and credit, drawing in even the impecunious, yet bank- Community-managed insurance was unknown in Nepal until 1987, able Nepalese, is so attractive. It actually when SFDP introduced it for the first time in a few VDCs to insure the livestock of small farmers. Its success encouraged operates as a two-way process – communi- SFDP to upscale this effort. Now, some 150 have adopted such ties that are better organized are not only schemes. Their success has also encouraged other SMAs, espe- easier to reach with development inputs cially the Local Development Funds, in different districts to execute livestock insurance through SMCs in about 50 VDCs. and advice, but the flow of information, the Livestock insurance generates confidence, even among poor availability of credit on one’s doorstep, and households, for borrowing to buy and raise expensive milch the adoption rate of technology are higher animals. Indeed, one assessment shows that SMCs have man- and more cost-effective in VDCs that have aged livestock insurance with such success that they have brought animal mortality down to 0.1% through intensive preventive undergone significant social mobilization care. Their management costs are quite low and their adminis- in one form or another.22 trative procedures simple enough to attract even the disadvantaged villagers. Although the vast majority of all such community schemes now run at a profit, such efforts have not yet However, the adoption of new technolo- been mainstreamed into the national system. There is not even gies is hardly risk-free. Rural villagers are a uniform national policy; while SFDP schemes receive a 50% often rightly risk-averse; technology fail- subsidy on their premiums, this [privilege] is not available to LDF-supported community-managed insurance programmes. ures can disempower them totally by un- dermining their livelihoods in the absence CASE II: Health of social safety nets like formal insurance schemes (see box 5.4). Sometimes, in- Poor people in Dulari VDC of Morang district are less worried these days. Illness in the family no longer necessitates borrow- creased production due to technological ing – and the strong possibility of falling into a debt trap. Now, breakthroughs can also backfire through VDCs and SMCs have entered into a partnership with B.P. unexpected market shocks (see box 5.5). In Memorial Hospital in Dharan for insured treatment. Experi- ence over the last year indicates high success rates. This model the absence of formal provisions for finan- calls for replication so as to attain the health-related MDGs. cial services, some SMCs have actually SMCs can serve as effective vehicles for this scaling up, which managed community-run insurance will require the government to instruct all hospitals to build linkages with VDCs and SMCs. schemes since around 1987 and thereby covered at least livestock. These scattered CASE III: Technology efforts, found in only some 200 VDCs, nonetheless underscore the need of poor people During the late 1990s, one SMA in Syangja decided to put a new technology to work to raise the incomes of the poor – a package for security about their health and their focused on an improved species of bee. The agency chose this livestock as well as any new farming tech- option because it did not require land and did not interfere nologies they may adopt in the hope of eco- with the wage-earning time of the poor. Appropriate training was provided, equipment was made available on partial grant nomic empowerment. (from the Agricultural Development Office) and beehives were purchased from specialized bee-farms in Chitwan. Fourteen Age-old inequities in the distribution of as- farmers undertook this experiment with great enthusiasm. Un- fortunately, all the bees died within a few months, well before sets and power remain barriers to the par- the farmers could reap any income. They became debt-rid- ticipation of poor citizens in community den. A few months later, the Programme introduced drip irri- organizations (see box 5.6). Many still de- gation as a new technology for the poorest group members. But pend on local elites for material as well po- the target group refused to adopt it, referring to the failure of beekeeping enterprise. After a long discussion, the agency and litical patronage. While participation is a the farmers decided to introduce a community-managed “‘tech- way of empowering the poor gradually, it nology insurance system”. Group members trusted this pro- seems that a degree of empowerment is also posal because they had seen the success of community-managed livestock insurance in the same VDC. They then adopted the a prerequisite for effective participation. new irrigation technology. Against this backdrop, the SSMC shows Source: Sah 1998. that social mobilization has had a positive impact on some 18 indicators of livelihood

78 EMPOWERMENT THROUGH SOCIAL MOBILIZATION

in rural Nepal (see annex 5, table 2). This is BOX 5.5 Experience from Dhankuta broadly consistent across all types of interventions, though some models have inevi- Before the introduction of the CEAPRED programme, the commu- tably made more impressive progress than nity cultivated only millet and maize, and most of the people were living below the subsistence level. CEAPRED organized the commu- others.23 Most entry point activities of newly nity members into groups, which began to cultivate off-season formed SMCs revolve around reversing ba- vegetables. Income rose because of good sales. To give the sic human deprivations like illiteracy, and programme continuity, the groups established a cooperative. Ac- access to drinking water and sanitation cording to its members, their success stems from their ability to work in groups, inspired by CEAPRED. through collective action. The central feature of all SMCs is, however, their mobiliza- At present, however, both production and market prices are fall- tion of savings for lending purposes. Most ing. The decline in production is perhaps due to the use of un- suitable fertilizers and seed, along with deteriorating soil qual- SMCs say they now depend less on tradi- ity. The price drop probably reflects the group’s inability to as- tional moneylenders and that interest rates sess the market situation – and the lack of roads. in the informal money market have declined significantly (see box 5.7). Although it is Source: UNDP 2004c. Courtesy: Khadga Bahadur Paudel SSMC 2003. striking that some 60% of the respondents did not have detailed knowledge about their group’s financial accounts, around 80% people’s fundamental earning needs. That cited this component as the one that at- the formal banking system is still out of tracted them to joining SMCs in the first reach for most SMCs remains a major im- place. Other motivations, in ranked order, pediment to empowerment. A more com- were expectations of building self-confi- fortable linkage between the formal finan- dence, receiving skills training, and en- cial institutions and the informal SMCs hancing social status. must develop so that the element most important to the poor, as well as the engine of The flow of credit through the SMCs, how- economic subsistence and growth, can ex- ever, fills only a modest gap in poor pand without difficulty. In the absence of

BOX 5.6 Beyond despair: a quest for hope

Manakamana Tole, located in Ward 4 of Butwal municipality, One day, he asked one of the Community Mobilizers (CM) lacks electricity and water supply of the core city of the if he might obtain marketing help and a loan from the area to which it belongs administratively. Most residents of Programme that would allow him to earn his living by this Tole derive little solace from visible glitter of the urban making Madals. The CM was surprised at the size of the centre only a few kilometres away; most are also day loan amount requested – Nepali Rupees 5,000 – but well labourers who live in miserable conditions. aware of the revived popularity of Madals in both urban and rural areas. When asked why he had waited so long Baburam Badi, a resident of this Tole, who lives with his for so small a loan, Baburam replied that without collat- wife in a small mud hut, comes from a “backward” occu- eral, he believed he could not borrow at the exorbitant pational caste, the traditional makers of Madal, a musical interest rates charged by local moneylenders. But after instrument still used widely in Nepal. Illiterate at 57, Baburam a rigorous selection process, Baburam received Small Busi- and his wife fend for themselves; all three of their sons left ness Management training and a loan from RUPP under its after their marriages to raise their own families. The old RLL component. couple had no option but to work in a nearby stone-crushing site. He now has the dignity of doing what he wants to do. The mobilizers found a market for his Madals in Butwal and However, when the RUPP Tole committee formation process surrounding areas. After six months in business, he and his expanded to Baburam’s community, he and several neighbours wife live in relative comfort because of the NRs. 2,000 – saw the opportunity to engage themselves in income-generat- NRs. 3,000 that he makes every month. Customers come ing activities and become self-reliant with some support from directly to his workshop to buy his instruments. He plans the Programme. He was particularly interested by the pros- to explore other sources of financial support after his first pect of taking up the profession passed down to him by his repayment cycle is completed so that he can expand his forefathers and more encouraged after learning about the business. RLL (Rural Labour Linkage) component of RUPP. Source: Rural Urban Partnership Programme (RUPP), UNDP/HMG/N 2003.

79 NEPAL HUMAN DEVELOPMENT REPORT 2004

On other fronts of human deprivation, apart BOX 5.7 Experience from Kanchanpur from the intensively targeted initiatives in Before the Parks and People programme was implemented in western Tarai, respondents appreciated en- Saraswati tole in Kanchanpur, people were not united. Gambling try-point activities in the form of literacy or and alcoholism flourished. Women lacked confidence and were improved sanitation less than the availabil- hesitant to express their views. Poor and frequently forced to borrow from local moneylenders at high interest rates, people did ity of credit. In the ongoing debate between not understand the importance of working within a group. With the advantages of “holistic” and “targeted” this project, women have become increasingly aware of their models, practitioners now believe that a tar- rights as well as duties and have begun acting as important decision-makers in developmental activities. The programme has also geted approach within a holistic model raised confidence among Dalits. Gender discrimination is de- probably works best in most Nepalese com- creasing, along with dependence on local landlords and moneylend- munities. While both have their merits, the ers; group members can now obtain loans easily without collateral and invest the money in productive activities. However, the latter especially in instances of sharp ineq- programme has still been unable to reach the poorest of the poor uities, the holistic approach is preferred so and a large majority of Dalits. It has also failed to transform itself as not to foster exclusion by exaggerating into a cooperative and thus protect its sustainability. The design wealth differences among groups within a of a separate programme tailored to the ultra-poor and Dalits is recommended. particular village – particularly one that is “uniformly poor” when viewed on a rela- Source: UNDP 2004c. tive scale within a given region.

effective outreach of the formal banking Unfortunately, we do not yet have sufficient sector, SMCs serve a large segment of data on either quality or access to opportu- Nepal’s population as financial anchors. nities in the training of SMC members, a Because the existing Acts call for interme- major component of social mobilization. In diation by financial authorities (the Coop- the SSMC, only 28% said they had received eratives Act of 1998 as well as the Society some form of training, which they regarded Registration Act of 1999), and do not rec- as “mediocre”. The more marginalized ognize the strength, efficiency and au- groups within the SMCs lamented that tonomy of these SMCs, a new Act more available training was seldom tailored to suitable for these Committees appears es- their specific needs. It may have been inap- sential to their registration and recogni- propriate for many reasons, among them a tion. Once they mature in terms of both the requirement of literacy or cost-sharing, or volume of business and its quality, they unaffordable opportunity costs. could be registered under existing Acts so as to access wholesale loans from leading Because other factors simultaneously shape institutions for downstream disburse- the quality of livelihoods, it is difficult to ment. This leap from informal custody of specify and isolate household effects led by the funds of poor people to stable, legally social mobilization or their graduation out recognized institutions requires external of absolute poverty. But the perceptions cap- help as well as internal drive. Not many tured in SSMC suggest that we would not be SMCs have undergone this type of trans- unreasonable in concluding that social mo- formation. This is one of the weaknesses bilization has acted as a major contributor of the many agencies that promote SMCs, to human progress in Nepal. Respondents but have not seriously taken into account stated again and again that simply joining strategies for their exit and their beneficia- groups brought them optimism and hope, ries’ sustainability. In the interim, however, strong empowerment factors in themselves. even informal ways to upscale these funds Translating such high levels of citizen moti- through links with formal institutions vation into concrete results points to a press- should be explored, so that SMCs can ma- ing need for greater coordinated support to ture into sustainable non-governmental people in the SMCs from agencies and insti- development agents in their own right. tutions at the macro as well as meso levels.

80 EMPOWERMENT THROUGH SOCIAL MOBILIZATION

Political empowerment ings or discussions among members. Some The mainstream political parties have car- SMCs have implemented public auditing ried out some of the most effective mobili- systems, which have enhanced transpar- zation of people for political purposes in ency in their governance. Nepal, clandestinely under the party-less Panchayat regime, but openly after 1990. Despite the serious setbacks triggered by the The proliferation of SMCs during the past violent conflict, particularly after 1998, the decade has thus coincided with fierce at- government’s growing involvement at the tempts at wooing people’s support for par- village level in both development and po- tisan politics. Not surprisingly, a consider- litical activities during the 1990s did much able overlap exists between the membership to enhance the idea of the state in rural in SMAs and in the political parties. While Nepal. Funds channeled through the we do not yet have systematic data on how strengthened DDCs and VDCs for projects these two forms of mobilization have rein- usually selected through participatory con- forced one another, we can fairly anticipate sultations with one or more socially mobi- that some of the norms fostered by SMCs lized groups helped transform villages into Informal social within their narrow spheres of informal epicenters of micro-level development ac- mobilization functioning – participation, inclusion, tivities. As tangible benefits accrued, processes linked openness, access to information, account- people’s faith in shaping their own desti- ability and organizational capacity-build- nies grew. And that faith itself reflected in- to the formal ing – are not altogether fortuitously traits creased political participation in village, dis- development and well-matched with the larger aim of deep- trict and parliamentary electoral processes. political chain ening democratic values and practices at works out as a the grassroots level. To some extent, state institutions and their staffs, or political parties and their cadres “win-win” In formulating rules, implementing them are always wary of people’s organizing situation in and making itself accountable, the SMC themselves independently to press their de- governance leadership extended democratic principles mands collectively. But in Nepal, partici- from formal electoral events to informal vil- patory development has commanded wide lage life. While the SSMC survey found support from all leading political parties, in much to be desired in making SMCs more part because they see heightened political accountable to their own members, simply awareness even in the poverty-stricken ru- by increasing the flow of information and ral regions; voter turnout has consistently fostering transparency in their actions, a exceeded 60% in the past five national and number of SMCs have exemplified demo- local elections. Although the latest local cratic practice. In 95% of cases, SMC lead- and national elections are overdue, the ership seems to have been chosen by con- overall process itself has penetrated too sensus, even though the eventual peer as- deeply to be reversed easily, especially af- sessment of their quality of leadership was ter the passage of the Local Self-Gover- lukewarm, irrespective of allegiance to a nance Act 1999 that seeks to institutional- particular income or socio-ethnic group. In ize decentralization and participatory de- fact, as indicated earlier in this chapter, on velopment firmly throughout the country. questions related to intra-group conflicts, VDCs and municipalities have generally the most common complaints concern ex- worked well with SMCs. Even after elected clusion in terms of membership as well as local bodies were disbanded in 2002, the decision-making, financial mismanage- past linkages between them meant that lo- ment (including embezzlement), unclear cal-level planning and development deliv- rules, and perceived inequities in the shar- ery have continued in many places. ing of benefits and opportunities. However, most intra-group tensions are reported to It is in this context that practitioners see civic be transitory, settled through special meet- engagement in SMCs, as well as affairs of

81 NEPAL HUMAN DEVELOPMENT REPORT 2004

the district and nation, as a thoroughly po- ticipation may simply be dominated by lo- litical process. As quantitative measures cal elites, arguments supported by anecdotal cannot be used to determine at what point Nepalese evidence indicate that in the ab- in time an individual or group becomes sence of broad-based citizen participation, “fully empowered” or to make absolute electoral democracies run the risk of becom- comparisons on empowerment across ing hostage to the manipulation of the most groups, the relative indications of empow- powerful minority. If we assume that all de- erment manifest themselves in measurable velopment and all politics centres on the actions in specific realms. Effective politi- people, any argument to avoid their engage- cal participation emerges as a reliable mani- ment on the pretext of “inconvenience” con- festation of socio-economic empowerment. fuses ends with means. Although age-old prejudices die hard, the Nepalese have pro- Informal social mobilization processes gressed significantly in breaking down ri- linked to the formal development and po- gidities that have historically constrained so- litical chain – with the possibility of lead- cial behavior, as well as the mobility of labour. If we assume that ers emerging from SMCs into both develop- The tragic paradox that confronts the coun- all development ment institutions and political organiza- try today lies in the fact that while democ- and all politics tions – works out as a “win-win” situation racy opened up space for challenging the in governance for at least two reasons: social status quo by expressing dissent and centres on the organizing people around grievances accu- people, any First, when citizens can express and press mulated over 200 years of misrule prior to argument to their demands legally, states acquire some 1990, the manner in which these rights are avoid their of the credibility to govern well. This is well now exercised poses a direct threat to the reflected in the bottom-up planning pro- very system that permits the peaceful expres- engagement on cesses adopted in socially mobilized VDCs sion of any dissent whatever. the pretext of and municipalities, which assume the re- “inconvenience” sponsibility to take the people’s plan fur- confuses ends ther on to the meso (district) levels, as well ARMED CONFLICT AND with means as the national level (see annex 5). SOCIAL MOBILIZATION

Second, where public services are ineffec- In the midst of an armed conflict between tive because of weak state capabilities and government forces and Maoist rebels since incentive problems, SMCs and citizens’ as- February 1996, Nepal has witnessed over sociations can step in to reduce informa- 10,000 deaths, virtual paralysis of most tion asymmetries. In one case, a municipal- socio-economic activities, increasing num- ity decided to use a tole lane Organization bers of orphans and internally displaced of RUPP not only for its plans, but also to people, serious escalations in abuses of obtain recommendations on telephone lines human rights, and a spree of atrocities rang- and other linkages to areas outside its own ing from gratuitous abduction and murder administration. At present, the horizontal to the recruitment of child soldiers. In a and vertical growth of SMCs does not cover chapter on empowering people through the entire country. Yet at their full maturity, social mobilization, this irony becomes all the horizontal and vertical linkages of the more painful because of the violent SMCs and the formal institutions could gen- movement that places “exclusion” and erate a scenario in which people’s develop- “disempowerment” at the centre of its dis- ment aspirations are reflected at both the content, mobilizing its constituency to en- meso and national levels. The SMCs could dure unprecedented suffering and sacrifice. well serve as vehicles that carry and provide services at low (even zero) marginal cost. The national awakening arrived belatedly; early signs were conveniently ignored. The Despite recurring fears that in traditional so- mid-west of Nepal including Pyuthan, cieties, the space available for citizen par- Rolpa, Rukum and Salyan, is considered 82 EMPOWERMENT THROUGH SOCIAL MOBILIZATION

the original heartland of the rebellion. Com- of formal democratic processes – elections munist leaders here sowed the seeds of con- for Parliament and for local authorities. flict in parts of these districts not eight years ago when the Maoists announced their in- Respondents to the SSMC confirm that the surgency, but more than four decades ago. insurgency has hobbled the strides made Villages in Eastern Rolpa had gone “com- through informal democratic networks munist” by 1957, two years before the first forged through the thousands of SMCs multi-party elections ever held in Nepal, over the past decade. Although a number when a communist candidate received 700 of groups continue to function as normally of the 703 valid votes cast.24 Although these as possible, many say that the frequency core districts are not the poorest in Nepal of their meetings has dwindled, together in terms of the Human Development Index with repayment rates of loans and depos- in the 1998 Human Development Report, its. Some note a general decline in the oc- they all rank in the bottom quartile – except currences of “social evils” such as alco- Pyuthan, which surprisingly ranked half- holism, gambling, early marriage, polyga- way (37th) among the 75 districts. But these mous marriage, and caste discriminations The larger lesson district-level averages mask an uneven in- regarding entry into temples and other remains: tra-district allocation of human develop- public spaces. perpetuating ment achievements. The newly constructed Human Empowerment Index presented ear- Hindsight is notoriously more precise than exclusion and lier in this Report reveals further how people foresight, but has an important part to play disempowerment in Rolpa and Rukum continue to remain the in future prediction. Had social mobiliza- on all three most disempowered socially, economically tion over a sustained period of time orga- fronts – and politically and how the mismatching of nized people for socio-economic ends and economic, social three components of empowerment – low also connected them politically to a respon- economic and social empowerment relative sive state through electoral or participatory and political – to political empowerment – has led to the development processes, the early signs of can erupt into kinds of disenchantment that precipitate today’s conflict could have been detected disastrous violence among people in most districts of and addressed with the seriousness they proportions the mid- and far western regions. merited. The larger lesson remains: perpetuating exclusion and disempowerment on all The indigenous Kham Magars, the original three fronts – economic, social and political – recruits of the Maoist militia, are now rec- can erupt into disastrous proportions. The ognized as a group that was neglected and current challenge for SMCs now confront- suppressed despite their sporadic revolts ing armed conflict is continuing to engage during the past 40 years. Not surprisingly, in whatever elements of social mobilization this continuous disenfranchisement suf- they can, despite suspicion that “mobiliza- ficed to inspire the extreme form of “socio- tion” on the part of government forces could political mobilization” by Maoists. The liken such efforts to elements of revolution- resonance of their rallying against ary doctrine. Social mobilization is indeed “disempowerment” in economic terms revolutionary, but revolution need not nec- (lack of jobs and incomes), socio-cultural essarily be violent. This truth is confirmed terms (feudal practices within caste societ- by the risks of insurgent harassment, extor- ies that ignored diverse cultural heritages), tion, restrictions of mobility and the supply and political terms (lack of participation of of goods, destruction of offices and outright the marginalized ethnic groups, Dalits, assassinations – as countless instances of women, and Madhesis in mainstream gov- non-violent resistance to armed self-styled ernance) with vast sections of the popula- “progressive” guerilla movements have tion cannot be denied. This growth of highly shown worldwide. Although true social mo- mobilized, armed Maoist militias has not bilization efforts are difficult to foster in the only pushed the country into full-blown absence of peace, the preservation of all pos- civil war, but also triggered the suspension sible components of SMCs is now essential. 83 NEPAL HUMAN DEVELOPMENT REPORT 2004

It can also contribute to minimizing the de- broad-based space for scaling up holistic struction of assets that range from property social mobilization processes into which to dignity, to say nothing of innocent lives various vertical programmes can be inte- caught in the middle. grated to provide service at low (or even zero) marginal cost. The selection of VDCs for VDP within the criteria of poverty/dep- SUMMATION rivation is crucial to future social inclusion and the upscaling of the programme. The strategy of social mobilization has helped the poor and the disadvantaged in Further, the evidence produced by SSMC re- forming self-help groups, in working to- veals a low degree of accountability and gether towards common goals, in psycho- transparency in most of the SMCs surveyed, logical empowerment through these pro- despite their achievements in other dimen- cesses, and in bringing subtle improve- sions of capacity-building and empower- ments in the livelihoods of those mobilized. ment. This calls for focus on making SMCs From a policy Though the social mobilization process has more accountable and transparent so as to perspective, the created a forum and opportunity for the sustain capacity-building as a mechanism main challenge poor and the disadvantaged to raise their of empowerment at the grassroots level. remains to voices and articulate their choices through their own organization and to mainstream Apart from a “residual” approach, no replicate and their priorities, it has tended to limit the in- strategy has been developed for inclusion upscale the best clusion of the ultra-poor in its efforts largely of the ultra-poor. Their integration requires practice models because of three factors: limitations in de- an “affirmative action” or “positive dis- to ensure that fining/assessing extreme degrees of pov- crimination” policy, along with strategic erty; the social distance of the ultra-poor steps to involve them through enlarging the scale of from the mainstream of the local population; their assets and opportunities at the house- intervention and the absence of a focused strategy/design hold level, together with appropriate ca- matches the for involving the ultra-poor within a holistic pacity-building. Ways and means should existing scale of approach that also regards the non-poor as be explored to increase resource mobiliza- members of community organization. tion though building real partnerships neglected with other agencies currently working to outreach The fact that targeted programmes are often improve livelihoods at the grassroots level, unsustainable, leading to tensions within the whether in gender concerns, legal aid or community, suggests that targeted other specialized fields. programmes should be built into holistic social mobilization efforts. This kind of approach, The current conflict has not only eroded the complemented by horizontal and vertical link- social capital of communities, but has se- ages covering the entire country, can become verely disrupted indigenous forms of social the most effective medium for empowerment networks and institutions, causing the de- at the grassroots level. It is also crucial to cline of both binding (relations within com- strengthening the decentralization process be- munities) and bridging (links between com- cause it integrates grassroots initiatives with munities) social capital. Though the con- meso and macro-level policies and institutions. flict has totally crippled some SMCs, the ongoing process of social mobilization in From a policy perspective, the main chal- many districts has also helped to discour- lenge remains to replicate and upscale the age people from joining the insurgency. The best practice models to ensure that the scale social mobilization programme should be of intervention matches the existing scale flexible enough to negotiate with both of neglected outreach. Although the UNDP- Maoist groups in the conflict-affected zones supported VDP is thinly spread over 60 dis- and military/paramilitary forces so as to tricts – covering only 17% of total VDCs and continue as many group activities as pos- 10% of total households – it has provided a sible within the given circumstances. 84 A REFORM AGENDA FOR DYNAMIC TRANSFORMATION

CHAPTER 6 A reform agenda for dynamic transformation

We in Nepal can achieve sustainable em- ! It will thus reinforce the process of The country's most powerment with its concomitants of poverty grassroots level initiatives to enhance po- urgent priority is reduction and human development because litical, social and economic empowerment the need to make its our multi-party democracy has intrinsic of the poor and the most disadvantaged. mechanisms to correct the weaknesses of institutions work current policies and the shortcomings of our Nepal is currently undergoing the most for all people and to institutions. Winston Churchill once re- painful period in its modern history. The on- ensure the marked with a smile that “democracy was going conflict and political instability democratization of the worst form of Government except all threaten the very foundation of democracy. those other forms that have been tried from The country’s most urgent priority is the the three branches time to time.” That arch-conservative was need to make its institutions work for all of government – the referring to three of the cardinal traits of people and to ensure the democratization executive, the democracy, its tendencies to of the three branches of government – the legislative and the ! thwart exclusionary development; executive, the legislative and the judiciary. judiciary ! promote good governance; and ! enhance accountability. This means, among other things, putting in place mechanisms that will institutionalize More than half a century later, Amartya Sen transparency and accountability to check cor- argued that “the intensity of economic ruption, to eliminate discriminations and to needs adds to – rather than subtracts from – ensure that people’s voices are heard at all lev- the urgency of political freedoms”.1 els. To address the existing incongruities between social, economic and political empow- This sums up the rationale of the empowerment, the rights-based approach – the cen- erment agenda to which this Report is de- tral tenet of empowerment – must become the voted, for the following reasons: fulcrum of Nepal’s poverty reduction strategy. ! It has the revolutionary potential of deepening democracy for dynamic transfor- Empowerment must drive the policy frame- mation through radical shifts in policies, work to attain pro-poor growth. This means priorities and institutions. fusing pro-poor macro policies with strong ! It addresses the anomalies and asymme- macro-micro linkages to attain widely-shared, tries in society. equitable growth. Effective decentralization at ! Its implementation will help create a the meso level, backed by strong organiza- level playing field, where each indi- tional capacity at the grassroots, is essential vidual has the option to develop and uti- to establishing these macro-micro linkages. lize his/her capabilities to lead the lives The current crisis simply underscores the ur- of their choice. gency of placing empowerment at the centre

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of our country’s development agenda for the duced development effectiveness and dynamic transformation of Nepalese society, have increased the vulnerability of the particularly for those citizens excluded, poor. marginalized or otherwise disadvantaged by ! The macro-micro linkages essential for history and by the country’s incomplete efforts broad-based growth, poverty reduction, since 1990 to take their voices and choices into empowerment and human development account in the newly democratic polity. have been weakened by shortcomings in participatory policies and institutional reforms at the meso level. KEY FINDINGS ! Aberrations in the democratic functioning of state institutions – including its con- The key findings that have emerged from the stitutional organs, its bureaucratic struc- analyses presented by this Report include the tures, and its security apparatus – to- following: gether with the separation of powers have ! The Human Development Index and the obscured accountability and damaged it Empowering the overall empowerment index in the coun- at all levels. poor and the try are low, with considerable dispari- ! Commissions on human rights, women, ties across regions and districts. In the Dalits and indigenous people lack the disadvantaged mid-western and the far western devel- legal authority to implement and enforce cannot take place opment regions and in many districts, their decisions at the local level. without deeper mismatchings between social, economic ! Political institutions are mired in undemo- and faster social, and political empowerment have pro- cratic practices that obstruct good gover- vided fertile ground for the existing con- nance and a fair representation system. economic and flict. In and of themselves, these incon- ! The exclusionary biases of existing policy political gruities have made the empowerment and the institutions that implement it have transformation process unsustainable. The armed con- reinforced the wide disparities that hobble flict that has erupted obstructs the em- Nepal’s development and reinforce his- powerment process further, but by no toric discriminatory practices in society. means destroys it. ! Empowering the poor and the disadvan- ! The Human Empowerment Index is an taged cannot take place without deeper effective tool for identifying pockets of and faster social, economic and politi- concentrated poverty, especially at the cal transformation towards the develop- lower end of the development scale. It is ment of an equitable, non-exclusionary an effective tool for devising appropri- society and a democratic, rights-based ate interventions to reduce poverty and polity. for monitoring the outcomes of those in- ! The devolution of authority, capacity- terventions. It provides policy signals building and accountability to local bod- not only as to the kinds of social, eco- ies in accordance with the principle of lo- nomic and political interventions essen- cal self-governance and the spirit of the tial to reducing disparities at the local Local Self-Governance Act 1999 has not level, but also the scale of such correc- occurred fast enough to consolidate the tive measures. empowerment of people at the grassroots ! The country currently lacks an enabling level and has thereby limited their scope environment for empowerment and pov- for fulfilling their varied aspirations. erty reduction because of the absence of ! The absence of an adequate social protec- equitable access to resources at different tion system has contributed significantly to levels and people’s control over these re- the pervasive losses of marginalized and sources. disadvantaged people in the reform process. ! Existing inter- and intra-sectoral policy ! The limitations of broad-based social mo- asymmetries have contributed to policy bilization in regard to strong resource and institutional failures that have re- back-up and partnership with local gov-

86 A REFORM AGENDA FOR DYNAMIC TRANSFORMATION

ernment bodies have obstructed the de- such as the Commission on Human livery of services at the local level. Rights, with a strong network spread throughout the country, can play a con- All in all, a lack of wide, meaningful and siderable role in ensuring that fundamen- active representation and participation in tal rights are protected and guaranteed. decision-making processes at different lev- ! The best approach to guaranteeing hu- els has impeded the deepening of multi- man rights is institutionalizing the party democracy as well as the enhancement rights-based approach to development, of the well-being of Nepal’s poor and dis- which guarantees the right to lead a life advantaged citizens. of dignity. The Commissions on Women, Dalits and Indigenous People should therefore be made constitutional bodies THE REFORM AGENDA to safeguard the dignity of citizens within these broad groups. The reform agenda set out in the paragraphs ! Electoral reforms are necessary not only that follow seeks a dynamic transformation for free and fair elections but also for en- The best of Nepalese society and governance by try- suring fair representation of all socio-cul- approach to ing to address the various contradictions that tural groups in the political processes. guaranteeing have led to the weakening of democratic and political institutions and the persistence of Further, Nepal’s Parliament has to evolve as human rights is poverty. an effective policy and rule-making body; institutionalizing major policy decisions require its approval. the rights-based To this end: approach to DEEPENING DEMOCRACY ! A mechanism has to be in place to bring political consensus and policy consistency development Deepening democracy requires the creation and continuity in major issues of national of democratic institutions and the promo- importance between the parliamentary tion of transparent, responsive, participa- parties. This is crucial to addressing so- tory, inclusive and accountable governance cial contradictions, maintaining political systems. This Report can suggest only key stability and creating strong and effective elements for realizing these goals in Nepal institutions. today. Its readers and discussants will ! The State Council, too, calls for restruc- doubtless have other suggestions – if for no turing to ensure adequate representation reason other than the fact that the deepen- of women, Dalits, and indigenous people. ing of democracy is an endless process in which each step leads to another. But the One must also bear in mind the following first steps or the very fact of defining them principles: are all-important. ! The democratization of security-related ! Public hearings should become an inte- institutions is essential to deepening de- gral element of the process of appointing mocracy. individuals to fill key positions in consti- ! Openness, fairness and predictability in tutional bodies to ensure the honesty and the decision-making of civil service insti- qualifications of nominees. tutions are pre-conditions to enhancing ! Because the protection of human rights efficiency in resource use and to ensuring can be realized only through the efficient better delivery of services. dispensation of justice, an autonomous, ! The civil service must be depoliticized to effective and efficient judiciary must be enhance performance and bring about sta- provided. bility at the institutional level. ! Because adherence to human rights prin- ! Governance reforms must also embrace ciples is essential to deepening democracy, the inclusion of all disadvantaged an autonomous human rights body, groups in state institutions, both at the

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national and the local level. The current riculum of secondary-level schools to en- administrative structure – in the form of hance the legal empowerment of all citi- zones, districts and villages – needs a zens. literal re-formation, a restructuring that will make them viable and efficient ad- Given the history of implementation and ministrative units for the devolution of enforcement, particularly during the cur- authority to strengthen local gover- rent crisis, laws in themselves will not de- nance. Conflicting laws must also be mocratize Nepalese society unless the ex- corrected so as to reinforce the Local Self- isting institutional culture is transformed Governance Act 1999. For effective de- to make them more responsive to the people. centralization at the local level, there is Without universal access to information, a need to introduce: existing attitudinal barriers cannot be re- " local civil service cadres; moved. Although legal changes and sup- " fiscal decentralization; and port for greater access to information are " an effective monitoring system to track vital to democratization, changing the long- Given the history of progress in poverty reduction and hu- standing institutional culture that governs implementation and man development. the decision-making process simply will not take place without radical changes in enforcement, Decentralization can become effective only the mindsets of those who work within particularly during the when local organizational capacity-building them. current crisis, laws in through social mobilization is coordinated themselves will not with the local bodies. Despite conventional wisdom to the con- democratize Nepalese trary, this process need not take generations. As new information technology has begun society unless the REMOVING DISCRIMINATORY transforming the topography of knowledge existing institutional LAWS AND PRACTICES worldwide, it has also contributed mas- culture is transformed sively to changes in attitudes and to make them more Discriminations in the existing National behaviours. There is simply no reason to Country Code must be eliminated, espe- believe that the country that gave the world responsive to the cially in respect of property rights, citizen- the transformative experience of Buddhism people ship on a hereditary basis, and reproduc- in the 5th century BCE cannot mobilize the tive health, including abortion. To abolish indigenous capacities of its diverse people all forms of discriminatory practice, Nepal to transform mindsets legally sanctioned must develop a mechanism to ensure that only in the 20th century CE. Similarly, many the National Country Code and other inter- elements of Nepal’s diverse religious tradi- related acts, including international com- tions augur well for transformations of the mitments, are enforced. To this end, this current status of women and other groups Report recommends: that cut across caste lines. ! Establishing vigilance committees at the grassroots level and their organic inter- face with similar organizations at the na- MAKING MACRO POLICY tional level. REFORMS PRO-POOR ! Decentralizing the writ jurisdiction of the Supreme Court to the Appellate Courts Poverty has persisted in Nepal because poli- and establishing separate benches for cies have not been adequately pro-poor. An civil and criminal cases in the district evaluation of the policy content of the PRSP courts so as to enhance access to legal reveals a number of points for orienting ex- services and enforce anti-discriminatory isting policies and programmes better to rules and regulations. meet the needs of the poor. Neither the con- ! Including basic legal education in the cur- cept nor content of current pro-poor poli-

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cies focuses sharply enough on addressing pects of the poor for participating in the the problems of exclusion, discrimination growth process. Low educational attain- and disempowerment effectively. As this ments also limit their participation in Report has argued earlier, empowerment skill-based non-farm employment. We must drive the policy framework for attain- must therefore address these dimensions ing pro-poor growth. of inequality simultaneously so that they complement one another and result in Growth becomes pro-poor if pro-poor growth. ! it uses the assets that the poor own; ! One important tool for attaining equity ! it favours the sectors where the poor work; in the process of promoting growth is the and development of strong linkages between ! it takes place in areas where the poor live. pro-poor macro policies with strong linkages to the micro level. But we cannot These obvious points can inform detailed re- develop macro-micro linkages without forms to make policies pro-poor in practice. effective decentralization at the meso level The following desirable outcomes can serve backed by strong organizational capacity Policies to reduce as reference points: at the grassroots. inequalities should ! Pro-poor growth occurs when the poor ben- ! The content, processes and sequencing of receive as much efit more from growth than the rest of the economic reforms should be broad-based, population or when the pace of develop- encompassing all major sectors and har- attention as growth- ment is faster for the poor than for others. monizing intra- and inter-sectoral macro oriented policies in ! Social and economic indicators for poor policies to discourage misalignments in order to increase the people have to improve more rapidly than relative prices and foster pro-poor growth. impact of growth on those for the rest of society under pro-poor The deregulation of input and output policies. Indicators for these outcomes are prices in the agriculture sector should poverty necessary but not sufficient for realizing therefore be compatible with border a pro-poor development framework. prices so as to ensure broad-based growth They must improve at a faster pace for and competitiveness. the poor, especially the ultra-poor, be- ! Broad-based, people-centered, and equi- cause absolute poverty always has a rela- table economic growth and development tive dimension. The policy framework calls for major structural reforms to en- therefore needs a thorough examination sure access to productive assets for the and reorientation. poorest of the poor and disadvantaged ! Policies to reduce inequalities should re- and control over these productive assets. ceive as much attention as growth-ori- Employment needs to be considered as ented policies in order to increase the a critical aspect of economic growth impact of growth on poverty. When strategy. This must be supported by en- growth becomes pro-poor, the growth hancing the effective implementation of elasticity of poverty rises. The high de- the Agriculture Perspective Plan, focus- gree of income inequality in Nepal has ing on agricultural roads, markets, irri- limited the impact of growth on poverty. gation, inputs and technology. The determinants of the dimensions of ! To expand credit outreach, Nepal must inequality must consequently be unrav- foster competition within its financial sys- eled and specifically addressed to in- tem and strengthen the current targeted crease the growth elasticity of poverty. credit programmes of the banks and other ! The determinants of inequality are fun- financial institution by introducing cost- damentally the ownership of physical effective branches of the country’s banks and human assets; dualism in the and expanding micro-credit institutions, economy; and factor market distortions. including cooperatives. To mainstream Credit market failures constrain the pros- the micro-credit institutions, it is impor-

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tant to link them with the formal finan- Nepal’s agriculture sector is marked by cial institutions. subsistence production with pervasive un- ! Agriculture, forestry, livestock and der-employment. Landlessness is increas- handicraft-related export have to be pro- ing at an alarming rate; 29% of rural house- moted through institutional support (in- holds now own no land, making their pov- cluding technology and marketing). erty almost intractable. The fragmentation Similarly, a new Act should be intro- of holdings, another major problem, results duced to provide an incentive structure in the inter-generational downsizing of for Small and Medium Enterprises parcels that are already unviable economi- (SMEs) to enhance the income and em- cally. Consequently, without restructuring ployment opportunities of rural people. the production system in agriculture, pov- Information technology (IT) has to be erty will continue to persist to the point disseminated to SMEs through state ini- where empowering the poor and disadvan- tiatives. taged will become virtually impossible. Ag- riculture must therefore undergo land re- From an From an empowerment perspective, the forms, which should be guided by market empowerment voices of all the country’s citizens must not realities: only be heard, but also listened to. All na- ! This calls for the introduction of com- perspective, the tional stakeholders must therefore contrib- munity-driven land reforms on the de- voices of all the ute to formulating policies and setting the mand side and for state creation of a land country’s citizens direction of the country’s development. bank on the supply side to fund land must not only be This requires the perspectives of the poor acquisitions in agriculture. and the disadvantaged in national debate. ! Though the landless need a special pack- heard, but also The current conflict provides an excellent age, its content and form should, again, listened to opportunity to reexamine the development be shaped by market realities. Landless agenda so as to make it inclusive and non- households that would like to take up ag- discriminatory, the beginnings of a riculture as their occupation should have mainstreaming of all segments of Nepal’s easy access to the land bank, along with population into the national development credit from the bank, pledging the pur- process. This has enormous ramifications chased land as collateral. As most of the for mitigating the conflict – even for mak- landless comprise poor people and disad- ing it an instrument of attaining balanced, vantaged groups, such a package will equitable and accelerated development help address equity and, at the same outcomes. time, contribute to empowering the people it benefits. ! The state must create an enabling envi- TRANSFORMING AGRICULTURE ronment to encourage the rural population both to commercialize agriculture Nepal has to pursue agriculture-led growth and to leave agriculture for other produc- to address poverty successfully; 90% of the tion sectors. This requires a redistribution poor are concentrated in the agriculture sec- of land and a substantial enlargement of tor. Although the Tenth Plan and the PRSP employment opportunities through the stress the primary role of agriculture as a rapid expansion of the manufacturing and key to broad-based and pro-poor growth, service sectors fostering strong backward neither can be realized without full imple- linkages. With the restructuring of agri- mentation of the Agriculture Perspective culture will come a substantial expansion Plan. In short, although growth has to be in employment opportunities, with di- led by agriculture, the sector itself must rect impact on enhancing empowerment. undergo a structural transformation in order to play this key role.

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Such a transformation depends essentially ning and a comprehensive maternal (re- on enhancing capabilities and enlarging productive health) and childcare system. opportunities. These improvements, in ! The effectiveness of local institutions for turn, hinge on an efficient institutional the promotion of primary health care re- mechanism for the delivery of basic ser- quires empowering local bodies through vices – not just basic social services, but the devolution of power and the provi- also extension, technology, markets and sion of other necessary support. credit. Promoting transparency and community management of these services and ensuring a fair representation of all groups BUILDING INFRASTRUCTURE in their management committees will lead to the benefit of all from growth and devel- Expanding the outreach of economic infra- opment. It is equally important to build an structure – roads, electricity and communi- equity element into the delivery system cations – has become an urgent priority, along with special targeting of the vulnerable with ensuring the affordability, quality and groups. sustainability of these facilities. To this end, The state must the government must: guarantee the ! Introduce a clear policy for hydropower de- right to basic EXPANDING EQUITABLE velopment, delineating the respective roles EDUCATION AND HEALTH of the public and private sectors and pre- education and FACILITIES pare an inventory to facilitate the healthcare so as prioritization and sequencing of projects in to protect human The state must guarantee the right to basic terms of cost, multiple benefits and the over- rights and education and healthcare so as to protect all development objectives of the country. human rights and enhance human capabili- ! Correct the ambiguities in the construc- enhance human ties. Along with the agriculture sector, the tion of various types of roads at the cen- capabilities education system should undergo a restruc- tral, district, local, and user levels with turing that emphasizes technical and voca- clear-cut policies on the roles of each of tional education at the secondary and higher the institutions involved. The construction secondary levels. of roads should be backed by investment ! Education should become compulsory at programmes to enhance economic benefits. the primary level for both girls and boys. ! Give high priority to the rural telecom- ! The mandates of teaching and manage- munication programme so as to expand ment committees should make provision outreach in the remote areas and enhance for adequate representation of the dis- the flow of information as a critical ele- advantaged groups. ment of empowerment. Prudent policies ! At the secondary and higher levels of edu- and appropriate institutional arrange- cation, the government should establish ments for incentives are essential to attract- quotas for the Dalits, disadvantaged ethnic ing private sector involvement to ensure groups, women and the poor in general. the timely availability and affordability of telecommunication services. Universal primary health must be the fundamental goal of the healthcare system: ! Primary health care should be available CREATING EMPLOYMENT to every citizen so as to ensure accessible, OPPORTUNITIES affordable, quality health services. ! These should include both preventive In line with the rights-based approach, the and curative medicine; primary, second- principle of right to work has to be intro- ary and tertiary health care systems; duced; employment must take centre stage both traditional and modern care; pub- in the state’s policy and resource allocation lic health and hygiene; population plan- agenda. This policy should also encourage

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and guide the private sector in creating job vide decent work, but also to ensure that opportunities for the growing labour force. policy and institutional reforms are in- The structural transformation of agriculture clusive and benefit all segments of the demands expanding the outreach of tech- population. To do this, even agriculture nical and vocational training facilities to has to be integrated into the formal sec- provide the skills required by the market. tor. This process will help expand for- ! Various training programmes of govern- mal sector employment in a country ment ministries and departments call for where almost 90% of employment re- overhauling and better coordination to mains concentrated in the informal sec- avoid duplications and enhance effec- tor – which, for the most part, is exploit- tiveness. Training programmes should ative in nature without adequate social be guided by labour market demand in security. both the formal and informal sectors. ! Ensuring a minimum wage and social Private sector training or vocational edu- security for informal workers both cation programmes also need uniform within and outside agriculture, is essen- Expanding the and standard policy guidance for ful- tial to increase labour productivity. As outreach of economic filling the qualitative demands of the the country moves towards flexible infrastructure labour market. labour policy, labour productivity issues ! For people willing to leave land-based oc- have to be addressed in tandem with job has become an cupations, job-related skill development training and skill enhancement urgent priority, training should be provided early – just programmes – as elements intrinsic to along with ensuring before they join the labour force outside such a policy shift. Special employment the affordability, agriculture. Training on modern farm- programmes for the disadvantaged have ing and technological adaptation for to be introduced and expanded. Last but quality and commercialized agriculture should also hardly least, gender-biased policies and sustainability of be provided to those who choose to re- wage discrimination practices have to these facilities main in the sector. For the displaced ag- be strictly prohibited through better en- ricultural labourers, it will also be in- forcement of rules and regulations. creasingly important to provide skills ! As social protection also helps prevent civil development training to enhance their and ethnic conflicts by minimizing insecu- productivity and to ensure that they en- rity, Nepal urgently needs to forge ahead ter the employment market as skilled with such programmes so that the recent workers. Upgrading skills usually re- upsurge of social unrest can be addressed. sults in a significant expansion in agricultural employment. Remittances from abroad have become an ! Labour-intensive techniques need en- increasingly important contribution to couragement in both the production and Gross National Product (GNP) in recent the service sectors. In addition to cottage years. It is, therefore, necessary to promote and small-scale industries, small busi- the foreign labour market as a means of so- ness promotion programmes should be cial protection in the rural areas by facili- devised to focus on the remote and less- tating the access of the poor, the deprived developed rural areas. Village develop- and women to decent and dignified job opment through small town development portunities abroad. To this end, the Report programmes need to be introduced and recommends: expanded, initially from peri-urban and ! A thorough assessment of the interna- semi-urban areas, aiming at the integra- tional labour market to identify potential tion of these types of population clus- employment opportunities; ters with surrounding villages. ! The formulation of appropriate policies ! Formalizing the informal sectors is es- to protect the rights and welfare of those sential to improving labour market con- who work abroad; ditions. Expanding formal sector em- ! The establishment of job-related train- ployment is important not only to pro- ing institutions to enable people to ad- 92 A REFORM AGENDA FOR DYNAMIC TRANSFORMATION

just easily to a foreign environment dur- changing legal codes and furnishing le- ing the short- and medium-term, as the gal aid, but striking at the root causes of economy is currently unable to create domestic violence through broad-based significant opportunities at home; awareness campaigns. ! A special package for the poor and dis- ! Stringent legal and administrative mea- advantaged groups to take advantage of sures must halt the trafficking of girls and foreign employment offerings. women to India and other countries. ! The state must recognize the cultural and linguistic rights of indigenous people and EMPOWERING THE take measures to preserve and promote DISADVANTAGED AND their cultural legacies. This will necessar- MARGINALIZED GROUPS ily include special provisions for primary and non-formal instruction in the indig- In both policy-making and institution-build- enous languages. A special law should ing processes, the poor and the disadvan- also be enacted for the protection of in- taged are generally bypassed; they need spe- digenous knowledge. Similarly, ethnolo- In both policy- cial treatment to protect them from social and gists should work with the most disad- making and economic insecurities. This premise must vantaged indigenous groups to identify institution-building underlie far-sighted reforms in policy and in them properly and to develop and launch institutions to ensure the equitable represen- special integrated programmes to en- processes, the poor tation of citizens in these groups at different hance their empowerment. and the levels of state and local organs. ! Preventive and curative health services, disadvantaged are ! Major initiatives have to be taken to elimi- including free medical treatment facilities, generally nate all forms of discrimination against have to be provided to physically disad- bypassed; they the disadvantaged and the poor based on vantaged people, along with financial and gender, race, caste/ethnicity, culture, technical support to strengthen their self- need special language and religion by enforcing help organizations. treatment to strong rules and regulations in the spirit ! The elderly must receive social and eco- protect them from of the National Country Code of 1963 nomic safeguards through family and social and and the Constitution of 1990. community care, social and legal services, ! Discriminatory practices at any level pensions, allowances, insurance, health economic should be firmly dealt with through legal care and old age homes for their protec- insecurities provisions. Women’s property rights con- tion and rehabilitation. cerning parental property must be guar- ! Children’s rights must be protected anteed by amending the existing law. through special programmes that ad- ! Fair representation of women, Dalits and dress the problems associated with dif- disadvantaged indigenous people in Par- ferent forms of child labour. The extreme liament and in local bodies has to be guar- poverty and socio-cultural barriers that anteed to mainstream them in the politi- prevail in Nepal force many parents to cal process. keep their children out of school and ! The empowerment of marginalized and send those of school age into various disadvantaged groups must be enhanced paid and unpaid work activities. Since by the provision of income-generating op- poverty begins with children, eliminat- portunities, coupled with education and ing child labour through universal edu- skills training, so as to promote aware- cation for all children aged 6-14 is the ness about education, health, sanitation, sole means of overcoming the environment, human rights and legal intergenerational transmission of pov- protections. erty. This calls for making basic educa- ! Arrangements have to be made to elimi- tion compulsory and reducing the oppor- nate domestic violence against women tunity costs of school attendance to and children; these involve not only poor households. More aggressive

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programmes against child labour are es- this kind of approach cannot guarantee sential not only for humanitarian rea- sustainability, it strengthens community sons, but also for overcoming the per- empowerment significantly because it ad- petuation of poverty from one genera- dresses social exclusion and tensions tion to another. By investing in children within local groups. Coupled with the coun- even before their birth, through prena- try-wide horizontal and vertical linkages tal as well as antenatal care, one attacks discussed at many points in this Report, the roots of poverty directly. this dual approach has so far proved the most effective spearhead of empowerment Nepal has signed various United Nations at the local level. Backed by sufficient re- conventions that aim at protecting and pro- sources and partnership with local govern- moting the rights of women, children, dis- ment bodies, broad-based social mobiliza- abled, and indigenous people and has made tion can catalyze transformations in the numerous commitments to uphold these power relations of entire societies. binding instruments. These texts can now be By investing in supplemented by the Millennium Develop- From a policy perspective, therefore, Nepal children even ment Goals to translate our commitments to faces a major challenge in replicating and date into time-bound, result-oriented actions upscaling the most successful practice before their birth, of the state. The reform measures outlined models. Although some donor-supported so- through prenatal above also support the reduction of vulner- cial mobilization programmes, such as the as well as ability. Nonetheless, vulnerable groups will UNDP-supported VDP, are thinly spread in antenatal care, require additional social security measures many districts, they could be used as one attacks the to ensure that they are not left out of the “motherboards” to upload current and fu- reform process – the more so because re- ture vertical programmes, so as to provide roots of poverty forms have tended to bypass the vulnerable services at low – even zero – marginal cost. directly as well as the poor. As Nepal’s 2001 Human Development Re- port stated, “Social mobilization existed in INVESTING IN THE ORGANIZATIONAL Nepal long before the concept was articu- CAPACITY OF THE POOR lated in [contemporary] terms.” If human development flourishes best when it draws If decentralization is to deliver on its prom- upon the indigenous capabilities of a coun- ises to local populations, people’s organiza- try, Nepal has a rich source to mine. It is there- tional capacity for effective bargaining has fore incumbent upon citizens to replicate and to be strengthened. Partnerships and other upscale the best practice models so far de- forms of collaboration, both horizontal and veloped with in-built transparency, account- vertical, are critical to ensuring that the voices ability, inclusiveness and effective organiza- and choices of the poor penetrate decision- tional and programme development pack- making beyond their immediate communi- ages. These certainly will not be the last word ties. Here again, the uses of building tar- in social mobilization, simply because soci- geted programmes into holistic social mo- eties continue to evolve – as does the con- bilization efforts become pertinent. While cept of human development itself.

94 Endnotes

CHAPTER 1 on the 2000 BECHIMES data) than what is currently 1. UNDP 2002a. used (based on the latest national census data (48.6%)). 2. UNDP 2002a. Together with fairly stagnant mean years of school- 3. UNDP 2002a. ing data, this has largely nullified any progress in life 4. See Annex 1.3, Technical Notes. expectancy and income over this period. 5. UNDP 2002b. 3. As with the HDI, the 1996 GDI has been recalculated 6. Schuler and Kadirgamar-Rajasingham 1992. using the logarithmic transformation method of com- 7. Capability may be seen as the capacity that enables puting income index to make them comparable with people to increase their well-being, depending on a the GDI in this report. variety of factors such as education, health and skills 4. GEM, too, is not directly comparable due to differ- that are inherent in the family or skills that are ac- ences in the measurement of women's representa- quired or learned. In addition to its direct value (a tion in Parliament. The 1996 GEM used women's creative and healthy life) in its own right, it also has representation in Parliament at the country level, instrumental value (an indirect role) in influencing whereas in the present report the percentage share social, economic and political participation and en- of representation in local elections in the develop- titlements (Sen A.K. 1999). ment regions, ecological regions and districts were 8. Sen G. 1997. used. 9. World Bank 2001. 5. As with the HDI, the HEI value ranges from 0 (worst 10. UNDP 2002c. condition) to 1 (best condition). Social empowerment 11. World Bank 2002a. is measured by a set of eight indicators that reflect 12. World Bank 2002b. education, health, information and communication 13. Evidence reveals that on average, civil war reduces and social mobilization outreach. Economic empow- a country's per capita output by more than 2% a year erment is measured by Gini-corrected land, share compared to what it would otherwise have been of non-agricultural employment, access to credit and (Collier 2000). per capita income. Political empowerment is mea- 14. Haq 1995. sured by voter turnout and candidacies per seat. 15. Ravallion 2002. See Technical Note 1.3 for detailed discussion of the 16. UNDP 2002a. indicators used for computing the Human Empow- erment index. CHAPTER 2 6. For instance, the degree of correlation between so- 1. The HDI value in this Report is not comparable cial and economic empowerment (r = 0.582) is much with that of the global HDR because of the differ- stronger than the correlation of political empower- ences in the sources of data and variables used in ment with social (r = 0.231) and economic the calculation. For example, mean years of school- empowerment(r = 0.481), indicating that much of ing is used in the present Report instead of com- the variability in the relationship is still unexplained. bined gross enrolment ratio used in the global HDR. Experience also suggests that the effect of political The educational attainment index is thus lower by freedom on socio-economic empowerment is not 0.115 in the present report as compared to the global immediate and automatic, unlike the linkage be- HDR 2004. tween the social and economic dimensions (UNDP 2. While a one-year time lag is certainly insufficient to 2002b). expect significant improvement, it is worth men- 7. To fully capture political empowerment, governance- tioning that the HDI reported in the NEPAL HUMAN related variables like accountability, transparency DEVELOPMENT REPORT 2001 derives largely from and justice need to be included in the estimate a relatively higher adult literacy figure (50.7%) (based through an improved database at the district level. However, such data were not available for this exer-

95 cise in HEI. Given the ambiguous nature of the objec- 26. Khanal 1998 and IPRAD 2000. tive indicators, together with the difficulties of captur- 27. NPC 2003. ing the subjective perceptions of poor democratic gov- 28. NPC 2003. ernance, there is an urgent need to develop a richer 29. NPC 2003. database for fully capturing the objective indicators of 30. This has been estimated from the Population Cen- political empowerment. See Annex 1.3 for a detailed sus 2001 data using rural urban weights. The CBS exposition of the problems and prospects for measur- estimate of 40% does not tally with the NEA cusing political empowerment. tomer records even after accounting for about 7 per- 8. The lowest economic empowerment of this district is cent available from the non-grid system. primarily the result of the lowest access to institu- 31. NPC 2003. tional credit, the highest degree of inequality in the 32. World Bank 2002b. distribution of operational land holdings and hence 33. HMG/N 2002b. the lowest Gini-corrected land size per household, 34. Panday 1999; Blaikie et al 2001; NPC 2003; UNDP among others. 2004b. 9. It is, however, worth noting at the outset that al- 35. CBS 1999. though regression analysis deals with the depen- 36. ILO 2002. dence of one variable on other variables, it does not 37. ILO 2002. necessarily imply causation; this must derive ulti- 38. UNDP 2004b. mately from economic analysis. 39. Estimated from the Population Census 2001. 10. These statistical findings, however, provide little 40. According to the Population Census 2001, 29% of help in establishing causal relationships in the ab- households do not own any land. sence of some strong a priori theoretical consider- 41. FAO 1996. ations. Does human empowerment cause human 42. Sen 1999. poverty reduction and hence human development 43. Sen 1999. or vice-versa – or is there a feedback loop between 44. Bardhan 1999a. these variables? To address these issues properly, 45. North 1990. some causality tests (such as the Granger and Sim 46. Rodrik 1999; UNDP 2002b. tests) will be necessary with lagged time series data 47. IMF, 2003. on empowerment, which are currently lacking. This 48. Bardhan 1999b; Khan 2002; World Bank 2002b. implies that future HEI exercises in future Nepal 49. Vestegen 2001; Tommasi 2002; Ruis A. and Walle N. Human Development Reports would enable us to van del 2003. clarify the casual relationships. 50. However, the Supreme Court held that "…. in spite of non-enforceability of the directive principles and the state policy enshrined in the Constitution, the court can allude to any decision of the government CHAPTER 3 made disrespecting the directive principles and poli- 1. As posited by Edward Burnett Tylor in 1871 in his cies of the state." seminal Primitive Cultures paraphrased in the 2002 51. HMG/N 2002b. Encyclopedia Britannica article entitled "Culture". 52. For detail see [email protected] 2. Dahal 1995. 53. PAC 1999, 2000, 2001. 3. Pradhan 2002. 54. Baral 2000; Blaikie et al 2001. 4. Gurung 2003. 55. Supreme Court 2001, 2002. 5. MoES 2003a. 56. HMG/N 2001. 6. MoES 2003b. 57. UNDP 2002b. 7. CBS 1974. 58. See Annex 3, Box 1 for the list of human rights 8. CBS 2002a. instruments ratified by Nepal. Nepal has also signed 9. MoH 1999. the Optional Protocol to CEDAW, the Optional Pro- 10. World Bank 2001. tocol to CRC on the sale of children, child prostitu- 11. PRB 2002. tion and child pornography, and the Optional Pro- 12. This rate is based on the age of surviving sisters, the tocol to CRC on involvement of children in armed age at death of sisters who died, and the number of conflict. years since the death of sisters (PRB 2002). 59. Dahal et al 2002. 13. NPC 2003. 60. DASU/HMG/N 2000. 14. MoPE 2002. 61. HMG/N 2000; Khanal 2003. 15. UNDP 2002a. 16. Khatiwada Y. R. 2004. CHAPTER 4 17. For details see Lal D. and Myint 1996. 1. CBS 2002a. 18. UNDP 2004b. 2. UNICEF 1996. 19. UNDP 2002a. 3. The average duration of breast-feeding in Nepal, for 20. UNDP 2004b. example, is one of the highest in the world. 21. MoICS 2004. 4. For details, see Shrestha 1994. 22. Narayan et al 2000a; Narayan et al 2002. 5. It was passed by Parliament on 14 March 2002 and 23. Hammer et al 2000. received the Royal Seal on 26 September 2002. 24. UNDP 2004b. 6. A study conducted by FWLD on "discriminatory 25. NPC 2003.

96 laws and its impact on women" has identified 118 le- Neupane 2000; Subba et al 2002; Yakkha-Rai 1997 gal provisions in 54 different laws that discriminate and See also Annex 3, Table 2. against women and therefore conflict with the rights 35. Kirant et al 2003. stipulated by CEDAW. 36. For details see Prasad Lakshmi Narayan 2003. 7. It was established by executive order without any 37. NFD-N 2003. legislative mandate. 38. The Nepal Association of the Blind (NAB), the 8. MoWCSW/MGEP, UNDP 2002. Kathmandu Deaf Association (KDA), the National 9. FWLD/TAF 2003. Federation of Disabled Nepal (NFDN), the National 10. CBS 2002a. Federation of the Deaf and Hard-of-Hearing (NFDH) 11. Shrestha A. 1994. and the Parents Association of Mental Retardation 12. MoH 2002/2003. (PAMR) and the National Association of Deaf and 13. MoH 2003. Hard-of-Hearing (NADH) were established between 14. FWLD/ILO 2001. 1990 and 1993. These CSOs have engaged in advo- 15. CeLRRd 2002. cacy and awareness campaigns to conduct activi- 16. Eleventh Amendment to the Country Code, 26 Sep- ties that embody rights-based approaches. tember 2002. 39. Sharma B. 2003. 17. A rural credit survey conducted by Nepal Rastra 40. Sharma B. 2003. Bank in 1991/92 revealed that of the total female- 41. The health hazards vary from sector to sector, as does headed sample households, almost 35% had bor- access to health facilities. The incidence of sickness rowed from one or another source compared to 39% was high among rag-pickers (62%) and short-dis- of the male-headed households. Among the borrow- tance porters (62%), with high accident rates re- ing female-headed households, only 15.4% had bor- ported among domestic child labourers (27.2 %) and rowed from institutional sources such as the Agri- bonded labourers (33%) along with severe exposure cultural Development Bank and Commercial Banks, rates and high risks of contracting sexually trans- while 84% had borrowed from non-institutional mitted diseases in trafficking (see Shrestha and sources. Edmonds 2002). 18. All enterprises, businesses, trade, etc., that are not 42. Gillian 2002. registered or accounted for in any official records 43. ILO/CDPS 1999. are considered to be in the informal sector. Small- 44. ILO 2003. scale manufacturing units and petty shopkeepers, home-based establishments of self-employed fam- CHAPTER 5 ily workers, street vendors and hawkers, service 1. UNDP 2002a. specialists, and unpaid family workers all fall in this 2. Freire 1970. sector. 3. For various concepts and definitions of social mobi- 19. CBS 1999 and Mainali, M., B. Sharma; B. Shrestha lization, see UNDP 2002a, Sah 2002 and Lynn Bennet 2002. 2002. 20. Eleventh Amendment to the Country Code, 26 Sep- 4. UNDP 2004c. This study was undertaken to document tember 2002. the processes and assess the impact of various social 21. Bhattachan et al 2001. mobilization programmes in enhancing empower- 22. Sob 2002. ment, reducing poverty and promoting human de- 23. Bhattachan et al 2001. velopment. Its specific objectives among others, in- 24. Sob 2002. cluded the impact of social mobilization on several 25. NESAC 1998. dimensions of organizational capacity-building, em- 26. According to a survey conducted by Team Consult, powerment and livelihood and identification of the 1999, the average land-owned per household among best practice models for possible wide-scale location the Dalit group is 2.46 ropani of khet and 4.5 ropani of or context-specific replication. pakho land. For more recent information see CBS 5. Sah, ed. 2003. 2002a. 6. The social mobilization outreach in all 75 districts 27. A recent study shows that 71% of Dalit households' of the country is estimated at 28.7% (see Annex 2.2, food production was enough for less than 3 months; Table 3). landlessness among Dalits was 25% as compared to 7. Examples include the South Asia Poverty Allevia- 10% among non-Dalits; 72% of Dalits owned less tion Programme, the Participatory District Devel- than 0.77 hectare; and average size of Dalit hold- opment Programme, the Micro-Enterprise Develop- ings was 0.18 ha and that of non-Dalits was 0.43 ment Programme, the Local Governance hectare, Shrestha A. 2003. Programme, the Tourism for Rural Poverty Allevia- 28. Sharma et al 1994. tion Programme, and the Rural-Urban Partnership 29. Annex 3, Table 2. Programme. 30. CBS 2002a. 8. PDDP/LDF 2002. 31. Bhattachan 2000a; Gurung 2003; Subba et al 2002; 9. Computed from New Era's Mapping of Social Mobi- Malla 2002; Lama-Tamang 2004. lization in Nepal. 32. Shrestha N. 1990; Skar 1999. 10. VDC and DDC are political institutions composed 33. Muller-Boker 1999; Bhattachan 2003; Bajracharya of elected representatives at the grassroots level. and Thapa 2000. 11. Of the 39 SMCs surveyed, 55.3% adopted the holis- 34. see Bhattachan 1995, 1999, 2000b; Gurung 2002; tic approach while 36.8% followed the targeted ap- Lawoti 2000, 2001; Gurung 1985; Gurung et al 2000; proach (New ERA 2002).

97 12. The government agencies, also include the National 21. Anne de Sales cited in Thapa and Sijapati 2003, pp. 80. Committee for Development of Nationalities and 22. Devkota 2003 (unpublished). Dalits in the Ministry of Local Development, 23. The 18 indicators range from education and health HMG/N. to employability, market facility, social evils and 13. UNDP 2004c. mutual trust and the status of women and 14. Mukherjee, et al 2004. marginalized groups. See UNDP 2004c for details. 15. The CARP study was carried out in 2003 in two 24. Thapa and Sijapati 2003. VDCs of Kavre district and three VDCs of Dolakha district to determine the level of poverty and the participation rates of different categories of house- CHAPTER 6 holds in social mobilization programmes. Each 1. Sen explained further: "There are three different con- household in the VDCs was scored on five variables – siderations that take us in the direction of a general income/livelihood, basic needs, housing, family struc- preeminence of basic political and liberal rights: ture, social/political capital. The total score of a house- a. their direct importance in human living associ- hold would indicate a level of poverty as: 0-25 = Least ated with capabilities (including that of political Poor; 26-49 = Middle Poor and 50-90 = Poorest (UNDP and social participation); 2003). b. their instrumental role in enhancing the hear- 16. Sah (ed.) 2003. ing that people get in expressing and support- 17. Sah (ed.) 2003. ing their claims to political attention (including 18. These programmes include health, education and the claims of economic needs); training. c. their constructive role in the conceptualization of 19. WDP 2002. 'needs' (including the understanding of 'economic 20. NPLAP 2002. needs' in a social context" (see Sen 1999).

98 Bibliographic Note

Chapter 1 draws on Collier 2000; Haq 1995; Ravallion Chapter 4 draws on Bajracharya and Thapa 2000; 2002; Schuler and Kadirgamar-Rajasingham 1992; Sen Bhattachan 1995, 1999, 2000a, 2000b, 2003; Bhattachan et al A.K. 1999; Sen G. 1997; UNDP 2002a, 2002b, 2002c; and 2001; CBS 1999, 2002a; CeLRRd 2002; FWLD/ILO 2001; World Bank 2001, 2002a, 2002b. FWLD/TAF 2003; Gillian 2002; Gurung 1985, 2002, 2003; Gurung et al 2000; ILO 2003; ILO/CDPS 1999; Kirant et al Chapter 2 draws on CBS 1999, 2002a, 2002b; Election 2003; Lama-Tamang 2004; Lawoti 2000, 2001; Mainali, Commission 1997; MoH, New ERA and ORC Macro Sharma and Shrestha 2002; Malla 2002; MoH 2002/2003, 2002; Pradhan et al 1997; Sah J., ed., NPC and various 2003; MoWCSW/MGEP, UNDP 2002; Muller-Boker 1999; sources 2003; and UNDP 2002b. NESAC 1998; Neupane 2000; NFD-N 2003; Prasad Lakshmi Narayan 2003; Sharma B. 2003; Sharma et al 1994; Shrestha Chapter 3 draws on Baral 2000; Bardhan 1999a, 1999b; A. 1994, 2003; Shrestha and Edmonds 2002; Shrestha N. 1990; Blaikie et al 2001; CBS 1974, 1999, 2002a; Dahal 1995; Dahal Skar 1999; Sob 2002; Subba et al 2002; Team Consult 1999; et al 2002; DASU/HMG/N 2000; FAO 1996; Gurung 2003; UNICEF 1996; and Yakkha-Rai 1997. Hammer et al 2000; HMG/N 2000, 2001, 2002b; ILO 2002; IMF 2003; IPRAD 2000; Khan 2002; Khanal 1998, 2003; Chapter 5 draws on Devkota 2003; Freire 1970; Lynn Khatiwada Y. R. 2004; Lal D. and Myint 1996; MoES 2003a, Bennet 2002; Mukherjee et al 2004; New ERA 2002; 2003b; MoH 1999; MoICS 2004; MoPE 2002; Narayan et al NPLAP 2002; PDDP/LDF 2002; Sah 2002; Sah, ed. 2003; 2000a, 2002; North 1990; NPC 2003; PAC 1999, 2000, 2001; Thapa and Sijapati 2003; UNDP 2002a, 2003, 2004c; and Panday 1999; Population Census 2001; Pradhan 2002; PRB WDP 2002. 2002; Rodrik 1999; Ruis A. and Walle N. van del 2003; Sen 1999; Supreme Court 2001, 2002; Tommasi 2002; UNDP Chapter 6 draws on Sen 1999. 2002a, 2002b, 2004b; Vestegen 2001; and World Bank 2001, 2002b.

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Annexes

Annex 1 Sources of data and technical notes 110

Annex 1.1: Sources of data 110 Annex 1.2: Human development and related indices 114 Annex 1.3: Human empowerment index 120

Annex 2 Human development and empowerment monitors 141

Annex 2.1: Human development indices 141 Annex 2.2: Human empowerment indices 158

Annex 3 National and international commitments and supplementary information 171

Annex 4 Statistical tables and definitions 173

Annex 5 Survey of socially mobilized communities – methods and results 182 BOXES

Annex 1.2 1 Illustration of HDI methodology 115 2 Formula for income calculation 116 3 Illustration of GDI methodology 117 4 Illustration of GEM methodology 118 5 Illustration of HPI methodology 119

Annex 1.3 1 Some definitions of empowerment 123 2 Key concepts central to understanding empowerment 124 3 Illustration of social empowerment index calculation 135 4 Illustration of economic empowerment index calculation 136 5 Illustration of political empowerment index calculation 136

Annex 3 1 International human rights instruments ratified by Nepal 172 2 Unfulfilled commitments: a few cases from a long list 172

Annex 4 1 Defining the Dalits 179 2 Defining the indigenous people of Nepal 180 3 Defining people with disability 181

TABLES

Annex 1.1 1 Major sources of data used to calculate human development and empowerment indices 110 2 Estimates of income at district level (methodology and data source) 112

Annex 2.1 1 Human development index by region, 2001 141 2 Human development index by district, 2001 142 3 Human poverty index by region, 2001 144 4 Human poverty index by district, 2001 145 5 Gender-related development index by region, 2001 147 6 Gender-related development index by district, 2001 148 7 Gender empowerment measure by region, 2001 150 8 Gender empowerment measure by district, 2001 151 9 Changes in HDI and HPI over time 153 10 Estimates of per capita income by region, 2001 154 11 Estimates of per capita income by district, 2001 155

Annex 2.2 1 Human empowerment index by region, 2001 158 2 Human empowerment index by district, 2001 159 3 Social empowerment index by region, 2001 161 4 Social empowerment index by district, 2001 162 5 Economic empowerment index by region, 2001 164 6 Economic empowerment index by district, 2001 165 7 Political empowerment index by region, 2001 167 8 Political empowerment index by district, 2001 168 9 Correlation coefficients between human empowerment and human development indices (N = 75) 170

Annex 3 1 Accepted conditions in electricity purchase agreements 171 2 Effectiveness of the Judiciary 171 3 Representation of different groups in Parliament (number) 171 4 Dalits, indigenous people and women candidates and elected numbers in the Parliamentary election, 1999 171 5 Representation of various socio-economic groups in the central committees of major political parties 172

Annex 4 1 Population aged 6 years and above by educational attainment and sex, 1981-2001 173 2 Mortality rate by sex, 1996-2001 173 3 Estimates of trafficked girls and women for sex work 173 4 Households reporting female ownership of land, house and livestock, 2001 174 5 Usually economically active population 10 years of age and over by major industry, 2001 174 6 Women’s representation in civil service by class/level, 1999-2001 174 7 Women’s representation in the House of Representatives by 1991-1999 174 8 Women’s representation in local government institutions, 1997-2002 175 9 Literacy status of indigenous people aged 6 and above and educational attainment by ethnicity, 2001 175 10 Percentage of households with toilet facilities by ethnicity, 2001 176 11 Percentage distribution of households owning self-operated land by farm size and ethnicity 176 12 Economically active population 10 years and above by white collar occupation and ethnicity/caste (in % of the group’s population), 2001 177 13 Trends in the composition of gazetted third class officers in Government by ethnicity (from Mid-April 1983 to Mid-April 2002) 178

Annex 5 1 Rating of different attributes of organizational capacity and empowerment in sample SMCs 183 2 Perceived impact of SM programmes on livelihood 184 3 Improvement in social/economic/political status 185 4 Level of satisfaction after programme intervention (percentage distribution by group) 185 5 Comparison of SM models by average scores 185 ANNEX I: Sources of data and technical notes

ANNEX 1.1: SOURCES OF DATA various indices of interest. Thus, some of the input indicators, particularly at regional and Major sources of data used in the sub-regional disaggregated level, used in the calculation of human development report to calculate human development and and human empowerment indices human empowerment indices, have not been This report makes use of various sources of published elsewhere. The data sources and data, collected mostly by government agen- the variables used in the mesurement of hu- cies. Both the raw as well as the published man development and empowerment indi- data were used depending upon the need of ces in this report are shown in Table 1.

TABLE 1 Major sources of data used to calculate human development and empowerment indices

Data Source Calculated indicators Indicators used for

Population Census Central Bureau of Statistics, ! Life expectancy index: deprivation in longevity HDI 2001 HMG/N 2002a ! Adult literacy HDI, HEI ! Mean years of schooling HDI HEI ! Percentage of labour force engaged in non- HEI agricultural sector ! Gini corrected average per household land holding HEI ! Percentage share of males and females in total HDI population ! Population without safe drinking water HPI ! Access to sanitation facilities HEI ! Access to radio and telephone HEI ! Index of administrative and managerial GEM representataion: (Index of technical, professional and administrative representation) ! Proportion of people not surviving beyond 40. HPI

Nepal Demographic Ministry of Health, HMG/N, ! Under nourished children under 5 HEI,HPI and Health Survey New ERA, ORC Macro 2002 ! Life expectancy index: deprivation in longevity HDI 2001 ! Proportion of people not expected to survive HPI beyond 40.

Nepal Family Health Pradhan et al 1997 (Ministry ! Life expectancy index; deprivation in HDI Survey (NFHS) 1996 of Health, HMG/N 1997) longevity

Local Election Data Election Commission Nepal, ! Percentage share of women in parliament GEM Tape HMG/N 1997 ! Voter turnout in the National Election HEI ! Number of candidates contested per seat/ HEI post in local election

Nepal Labour Force Central Bureau of Statistics, ! Wage rate by sex HDI Survey 1998/1999 HMG/N 1999

National Accounts of Central Bureau of Statistics, ! Per capita GDP HEI, HDI Nepal HMG/N 2002b

Agricultural Develop- ADB/N 2002, Rural ! Access to formal credit HEI ment Bank 2002, Development Bank and other other credit credit agencies agencies and SMCs

Social Mobilization, Sah. J., ed. 2003, National ! Social mobilization outreach % HEI Mapping of Social Planning Commission and Mobilization in Nepal various sources

110 The estimation of the required demographic is one of the important required inputs for indicators to calculates various human de- estimating the life expectancy at birth. velopment indices were not straightforward due to the limitations in the quality of data Information on nutritional status of chil- and the level of availability of information dren was calculated using the data from from CBS 2001, NHDS 2001 and NFHS the Nepal Demographic Health Survey, 1996. Several direct and indirect estimation 2001, as this was the only reliable source techniques were used to calculate the life that allowed the required indicator that cor- expectancy at birth and proportion of people responded the reference period. However, not surviving beyond 40. Therefore, the in- the limitation of this indicator, particularly formation on reported number of children at the district level, is that it is based on ever born and survivors among those born small number of cases and is likely to be alive classified by age of women in repro- suffering from a sampling error. ductive age were used to calculate the life- expectancy at birth for the national, regional Information from the National Accounts of and sub-regional level. The outcome of this Nepal was utilized to derive GDP by sector. exercise was then used to derive the respec- The methodology and data source used for tive life tables for the corresponding regions. estimating per capita income at the regional and district level is given in Table 2 (see Tech- A similar exercise was also carried out us- nical Notes 1.2 for the estimation method ing the 2001 census data which did not pro- used in the calculation of per capita income). duce reliable estimates of mortality, neither at the regional nor at the district level. The The Election Commission reports election re- mortality indices were calculated using Q5 sults for each of the 75 districts of Nepal, indicator that is probability of death at age covering the VDCs, municipalities and dis- 5 instead of age 0. Again this also did not trict development committees. This report produce consistent output. In the process has used information of such reports to as- of getting more robust mortality related in- sess political participation, particularly of dicator, the exercise was further carried out females in relation to males. This informa- using a method that produced the required tion has been utilized to derive the voter turn indices taking the crude death rate (CDR) out in the last national election 1999 and the and the age-sex distribution of the popula- number of candidates per seat in the local tion as input. For this, again the CDR for election in 1997. each district was estimated using the stable population technique where Cx value (pro- The adult literacy figures were obtained from portion of population at age x) was consid- CBS. All other variables used in the measure- ered as the basis. The entire mortality indi- ment of human development and empower- cator produced using different data sets and ment indices mean years of schooling, ac- different methods also was unable to process to drinking water, toilet, radio, telephone duce a consistent result. Therefore, the life and electricity, average size of operational expectancy at birth for the district level was land holding and inequality in the distribu- adjusted by using the regional growth rate tion of land holding (Gini corrected land in those cases where the indicator was holding), proportion of labour force em- found to be outlier. For these exercises the ployed in non-agriculture and relative west mortality model pattern by Coale and shares of males and females in professional Demeny (1966) was assumed as the pattern and managerial work – were estimated us- of mortality in Nepal as these have been ing the sample raw data of the Population used in almost all the mortality related in- Census 2001 obtained from CBS. Estimates dicators estimated in the past. All these ex- for these variables were obtained separately ercises were necessary to overcome the limi- for rural and urban sectors in a district us- tation of the data on adult mortality, which ing the ratio estimation method given below.

111 The ratio estimation method can be shown as where all domains have been sampled.

Where some domains are completely enumerated, the district estimator is

′′ Where y hi is the ratio estimator for the population with a certain characteristic in the ith domain and in the hth district. The number Where Y is the total from the completely of persons found in the sample with a cer- h enumerated domains. tain characteristic in the jth tabulation group, in the ith domain and in the hth district is y . hij The national level estimator is xhij is the total number of persons found in the sample in the jth tabulation group, in the th ith domain and in the h district. xhij is the total number of persons from the 100 percent count, found in the jth tabulation group, Similarly, estimates for the five development in the ith domain and in the hth district. regions and the three ecological zones were obtained by adding together the district es- The estimator for the hth district is timates falling in each of these areas.

TABLE 2 Estimates of income at district level (methodology and data source)

Industrial division Grouping Types of data and methodology Indicators Sources of data

1. Agriculture - Food grains Statistical information on Nepalese agriculture Output by crops/ Ministry of 2001/02 livestock and districts Agriculture - Cash crops Agriculture marketing information bulletin special issue 2002 - Livestock Value of royalty collected by the government Department of - Forestry by district (Hamro Ban, 2001/02) Value of royalty Forest, HMG

2. Mining and - Mining The value added of mining is estimated using Mining product Department of quarrying the mining production figures. Mining and Geology - Quarrying The value of quarrying is estimated on the Value of royalty paid Local government basis of royalty paid to the local government. for quarrying bodies

3. Manufacturing - Modern The census of manufacturing establishments, Census value added of Central Bureau of manufacturing 2003 provides details data on the value added manufacturing Statistics (Census of of manufacturing by districts. establishments Manufacturing Establishments 2003) - Small scale Households operating small scale manufactur- No of households Population census manufacturing ing activities (SSMA) involved in SSMAs 2001

4. Electricity - Electricity Electricity consumption (utilized energy) by Utilized energy KWH Nepal Electricity district 2001/02 Authority

5. Construction - Private pakky Households by house/housing unit, Population Number of pakky CBS construction Census 2001 housing unit - Private kachy Households by house/housing unit, Population Number of kachy CBS construction Census 2001 housing unit - Government Capital expenditure of the government Expenditure amount Financial construction Comptroller's Office

Contd....

112 TABLE 2 Estimates of income at district level (methodology and data source) Industrial division Grouping Types of data and methodology Indicators Sources of data

6. Trade hotels - Trade Statistical information on Nepalese Value of output of Ministry of and restau- agriculture 2001/02 agriculture and Agriculture and rants Agriculture marketing information bulletin manufacturing Central Bureau of special issue 2002 products Statistics The census of manufacturing establishments, 2003 provides details data on the value Business Registers added of manufacturing by districts. compiled by various - Hotels and No. of hotels and restaurants by district Number of hotels and agencies and CBS. restaurants restaurants

7. Transport and - Transport Persons engaged in transport activities by Number of persons Population Census communication district, Population Census 2001 engaged 2001, CBS - Communi- Revenue collection from telecommunication Revenue amount Nepal Telecommuni- cation by district cation Corporation

8. Finance and - Finance The number of financial institutions is taken Number of financial Nepal Rastra Bank real estate as the indicator to generate value added. institutions (Banking and Financial Statistics-2002) - Real estate The number of households by ownership Number of household Population Census type, Population census 2001 is taken into of by selected type 2001, CBS account for estimating value added in the real estate sub-sector. - Business Volume of business services-trade, Volume of transaction National accounts services transport, private services etc. data, CBS

9. Community - Government The expenditure details of the government Expenditure amount Financial social and services 2001-02 by district Comptroller's Office personal - Private Number of persons engaged in private Number of persons Population Census services services service activities – health and social work, engaged in private CBS, 2001 education and other community, social and service activities personal services - Non-profit Number of non-profit institutions by Number of NPIs Social Welfare institutions district Council

Note: 1. This is the first exercise done so far to estimate income at the district level. Because of the lack of adequate data base, direct estimation of income at this level was not possible. Therefore, indirect technique is followed to derive income figures by preparing indicators based on the data available. During the estimation process, several supporting tables are prepared and indicators are generated to arrive at the estimation of income at the district level. 2. The reliability of estimates depends on the quality of data used in the estimation. Effort has been made to identify and use the appropriate possible indicators, though deficiency of qualitative data in many of the areas is strongly felt.

113 ANNEX 1.2: the NDHS 2001 and NFHS 1996 was also HUMAN DEVELOPMENT used to extrapolate life expectancy for 2001, AND RELATED INDICES particularly for the district level indicator. For sub-region and the districts in which the The human development index results appeared absurd, appropriate proxy The Human Development Index (HDI) is values were used from the corresponding de- based on the three indicators: Longevity, as velopment region or ecological region. measured by life expectancy at birth; educational attainment as a measure by com- Educational attainment index bined of adult literacy rate (two-third weight) The Nepal Human Development Report and the combined gross primary, secondary has used both the estimates of the adult lit- and tertiary enrolment ratio (one-third eracy rate and mean years of schooling from weight); and standard of living, as measured the National Census, 2001 data. The mean by GDP per capita (PPP US$). The combined years of schooling instead of enrolment ra- primary, secondary and tertiary enrolment tio, was used in the case of Nepal because ratios was introduced in the 1994 HDR re- mean years of schooling is expected to cap- placing the variable of mean years of school- ture the educational quality of the literate ing, mainly because the formula for calcu- adult and the educational attainment of lating mean years of schooling is complex young people (combined enrolment ratio) and has enormous data requirements which is not possible when used the gross (UNDP, 1994). The methodology, along with enrolment ratio that generally are overesti- the definition of variables and their measure- mated and unreliable due to the practice of ment, adopted in calculating the HDI for enrolment-based government grants to the Nepal is illustrated below. schools. Therefore, the data from the Na- tional Census, 2001 was used to calculate Life expectancy index mean years of schooling for ecological zones, Life expectancy at birth is calculated based development regions, eco-development re- on the reported number of children ever born gions, place of residence and districts. and surviving using data of Nepal Demo- graphic and Health Survey, 2001, The Na- Income index tional Census 2001, Nepal Family Health Lack of an efficient information system, which Survey (NFHS) 1996 applying the direct as forms a sound basis for GDP calculations, is well indirect techniques. The Coale and a major challenge currently faced by the Na- Demeny (1966) West Mortality Model life tional Accounts Statisticians in Nepal. The table is used to derive the life expectancy at CBS has so far been publishing GDP estimates birth. Life expectancy is calculated for each only for National level. The exercise to obtain geographical region, development region, GDP down to the sub-national level was rural-urban place of residence, eco-develop- never attempted in the past, which has cre- ment region, and for 75 districts. The life ex- ated a serious data gap in the process of de- pectancy at birth based on the stable model centralized planning process. The direct esti- technique using the age-sex distribution of mates of income at the district level was not the population was also applied in generat- possible at this moment because of the lack of ing the crude death rate and the proportion data at the district level. Therefore, an indi- of population at age-x to calculate the life rect technique is followed to arrive at the esti- expectancy at birth as none of the single mor- mates developing indicators for the respec- tality estimation technique was able to pro- tive sectors and sub-sectors. duce the consistent indicators at regional, sub-regional and district levels. Conse- The procedure is largely based upon pro- quently, in some cases, the growth in life ex- duction approach (supply side) and gener- pectancy or infant mortality rate based on ates suitable indicators for each industry.

114 The respective indicators are mostly th th vij = value added of the i sector in j sectoral outputs wherever available and, in district i = 1,2 .....9, j = 1,2.....75 some cases, proxies of outputs are used. In th Iij = Value of proxy indicator of the i in the current study, various secondary jth district i = 1,2.....9, sources of information collected mostly by j = 1,2.....75 Vi = government agencies are used for prepar- aV = Value added of ith sector ing indicators. The latest information avail- ij i = 1.....9 Ii = Iij = Value of proxy indica- able in different areas of the economy is care- tor of the ith sector fully scrutinized and used for estimation i = 1.....9 V /V = I /I i = 1,4.....9 purposes. The indicators thus identified ij i ij i formed the main basis of estimation process . Further, it is assumed that the relative sulted in the GDP at the districtl level. Popu- weights of each of sectoral GDP by districts lation figures provided by CBS for 2001 have are equal to the relative weights of the cor- been used to obtain per capita GDP. Per responding indicator by district. Specifi- capita GDP is then converted to PPP US $ cally, the disaggregating procedure adopts with the help of ratio of per capita GDP {NR} the above method and takes all the sectors thus estimated to per capita GDP in PPP$ one at a time and has apportioned GDP to (2001) of Nepal established by the Human the district. The totals of all the sectors re- Development Report 2003. As sectoral

Box 1 Illustration of HDI methodology

Basic data table showing required data to calculate HDI Region Life expectancy Adult literacy rate Mean years of education Per capita income at birth (Years) (%age 15 and above) PPP income in US$ Urban Nepal 64.53 68.3 5.06 2224 Calculation of HDI Life expectancy index: 64.53 – 25 39.53 —————— = ——— = 0.65883 85 – 25 60.00

Adult literacy index: 68.3 – 0 68.3 —————— = —— = 0.6830 100 – 0 100

Mean years of schooling index: 5.06 – 0 5.06 —————— = —— = 0.337333 15 – 0 15

Educational attainment index: [2(0.6830) + 1(0.337333)]/3 = 0.567778

Adjusted GDP per capita (PPPUS$) index Log (2224) – Log (100) —————————————— = 0.51772 Log (40000) – Log (100)

Human development index output table

Region Life expectancy Educational Income index Sum of three Human development index attainment index index (HDI) Urban Nepal 0.65883 0.567778 0.51772 1.744328 0.581

115 GDPs are not available by Rural/Urban ing parameter, , equal to 2. This is a harmonic locality, a different approach, which utilizes mean of the male and female values. the relative shares of these areas in total income, has been used. Further, it is assumed The GDI also adjusts the maximum and that such relative shares do not change minimum values for life expectancy, to ac- significantly in a short period of time and count for the fact that women tend to live therefore the shares, those established by the longer than men. For women the maximum NLSS survey (1996) have been used to dis- value is 87.5 years and the minimum value aggregate the GDP at the rural/urban level. 27.5 years; for men the corresponding values are 82.5 and 22.5 years (UNDP 2000).

The gender-related The calculation of GDI requires equally dis- development index tributed index for income, which calls for The Gender-related Development Index separate income indices for male and fe- (GDI) uses the same variables as the HDI. male. The income indices for male and fe- The difference is that the GDI adjusts the av- male further demand per capita income in erage achievement of each region/sub-region PPP$ for both sex. The procedure therefore in life expectancy, educational attainment begins with disaggregating of the per capita and income in accordance with the dispar- income by sex using the standard set of for- ity in achievement between women and mulae being applied in human develop- men. For this gender-sensitive adjustment ment reports. The calculation of equally dis- this report, as suggested in the HDR 2000, has tribution income index then follows using used the weighted formula that express a mod- separate formulae. The set of formulae are erate aversion to inequality, setting the weight- given below:

Box 2 Formula for income calculation

Formula for income disaggregation

(wf/wm) X eaf

Sf = ————————— 1A

[(wf/wm) X eaf] + eam

Sf Y

Yf =——1B

(1 – Sf) Y Ym = ——— 1C

Formula for calculation of income index

log Yf – log Y min

W(Yf) = —————————— 1D Log Ymax – Log Y min

log Ym – log Y min W(Ym) = —————————— 1E Log Ymax – Log Y min

Equally distributed income –1 –1 –1 Index IGDI = {Pf x W (Yf) + Pm W (Ym) } (2)

Where Wf = Female wage rate, Wm = Male wage rate

eam = Proportion of economically active male

eaf = Proportion of economically active female Y = GDP in PPP $ Nf = Female population Nm = Male population

Pf = Nf / (Nf + Nm) and Pm = Nm/(Nf + Nm)

116 Box 3 Illustration of GDI methodology

Percentage share of population Female 0.5005 Male 0.4995 Step one : Computing the equally distributed life expectancy index Life expectancy index (Mountain) Female 61.46 Male 60.52 Life expectancy index Female (61.46 – 27.5)/60 = 0.5660 Male (60.52 – 22.5)/60 = 0.6337 Equally distributed life expectancy index [Female population share X (female life expectancy index)–1 + Male population share X (male life expectancy index -1]-1 [[0.5005 * (0.5660)–1 ] + [0.4995 * (0.6337)–1 ]]–1 = 0.5979 Step two : Computing the equally distributed educational attainment index Adult literacy rate (percentage age 15 and above) Female 34.9 Male 62.7 Mean years of schooling Female 1.95 Male 3.56 Adult literacy index Female (34.9 – 0)/100 = 0.349 Male (62.7 – 0)/100 = 0.627 Mean of schooling index Female (1.95 – 0)/15 = 0.130 Male (3.56 – 0)/15 = 0.237 Educational attainment index Female [2/3(0.349) + (1/3(0.130)] = 0.2760 Male [2/3(0.627) + (1/3(0.237)] = 0.4971 Equally distributed educational attainment index [Female population share X (female educational attainment index)–1 + Male population share X (male educational attainment index–1]–1 [[0.5005 * (0.2760)–1 ] + [0.4995 * (0.4971)–1 ]]–1 = 0.35483 Step three : Computing the equally distributed income index Percentage share of population Female 0.5005 Male 0.4995 GDP per capita Female 790 Male 1831 Adjusted GDP per capita (PPPUS$) index Female Log (790) – log (100) ——————————-——— = 0.345 log (40000) – l0g (100) Male Log (1831) – log (100) —————————————— = 0.485 log (40000) – l0g (100) Equally distributed income index [Female population share X (female income index)–1 + Male population share X (male income index –1]–1 [[0.5005 * (0.345)–1 ] + [0.4995 * (0.485)–1 ]]–1 = 0.403

Gender related development index (GDI) Region Equally distributed life Equally distributed Equally distributed Sum Gender related expectancy index educational attainment index income index of three development index (GDI) Nepal 0.5979 0.35483 0.403 1.35573 0.452

117 The gender empowerment and men in political and economic spheres measure of activity. The percentage share of men and The Gender Empowerment Measure (GEM) women in the administrative and manage- uses variables constructed explicitly to mea- rial positions and in the professional and sure the relative empowerment of women technical positions is used to reflect their

BOX 4 Illustration of GEM methodology

Percentage share of population Female 0.5005 Male 0.4995 Step one: Calculating indices for parliamentary representation and administrative and managerial and professional and technical positions. Percentage share of parliamentary representation Female 19.33 Male 80.67 Percentage share of administrative and managerial position Female 12.71 Male 87.29 Percentage share of professional and technical positions Female 18.75 Male 81.25 Equally distributed equivalent percentage (EDEP) for parliamentary representation [Female population share X (female’s share in parliamentary representation)–1 + Male population share X (male’s share in parliamentary representation–1]–1 [[0.5004 * (19.33)–1 ] + [0.4996 * (80.67)–1 ]]–1 = 31.12 Equally distributed equivalent percentage (EDEP) for administrative and managerial positions [Female population share X (female’s share in administrative and managerial positions)–1 + Male population share X (male’s share in administrative and managerial positions –1]–1 [[0.5004 * (12.71)–1 ] + [0.4996 * (87.29)–1 ]]–1 = 22.13 Equally distributed equivalent percentage (EDEP) for professional and technical positions [Female population share X (female’s share in professional and technical positions)–1 + Male population share X (male’s share in professional and technical positions –1]–1 [[0.5004 * (18.75)–1 ] + [0.4996 * (81.25)–1 ]]–1 = 30.40 Indexing parliamentary representation = 31.12/50 = 0.622 Indexing administrative and managerial positions:22.13/50 = 0.443 Indexing professional and technical positions: 30.40/50 = 0.608 Combining the indices for administrative and managerial, and professional and technical, positions. (Index of administrative and managerial positions + Index of professional and technical positions)/2 = (0.443 + 0.608)/2 = 0. 5253 Step two: Calculating index for male and female income

Wf/Wm x eaf

Sf = ———————— 3A

Wf/Wm x eaf + eam

Sf Y

Yf =—— 3B

Ym = (1 – Sf) Y / Nm 3C

Yf – 100

W(Yf) = —————— 3D 40,000 – 100

Ym – 100

W (Ym) = —————— 3E 40,000 – 100 –1 –1 –1 Equally distributed income index for GEM: IGEM = {Pf W (Yf) + Pm W (Ym) } (4)

Where the symbols have their usual meanings, For example in Nepal, Yf = 790 $ Ym = 1831 $

W(Yf) = (790 – 100) / (40000 – 100) = 0.01729

W(Ym) = (1831 – 100) / (40000 – 100) = 0.0434 Equally distributed income index: [[0.5004 * (0.01729) –1 ] + [0.0434 * (81.25) –1 ]] –1 = 0.0247

Step three: Computing GEM GEM = 1/3 (index of parliamentary representation + combined index of administrative, managerial, professional and technical positions + equally distributed income index) GEM Nepal = 1/3 (0.622 + 0.5253 + 0.0247) = 0.391

118 economic participation and decision-mak- Human poverty index ing power. Women's and men's percentage Human Poverty Index (HPI), a multi dimen- shares of parliamentary seats – participa- sional measure of poverty introduced in the tion of men and women only in local elec- Human Development Report 1997 (UNDP tion at VDC and municipality level – are 1997), is a reverse image of the HDI that used to reflect their political participation focuses on human deprivation instead of and decision-making power. Income vari- human achievement. It brings together in able is used to reflect power over economic one composite index the deprivation in four resources. It is calculated in the same way basic dimensions of human life – a long and as the GDI except that the unadjusted, rather healthy life, knowledge, economic provi- than adjusted GDP per capita, is used. The sioning and social inclusion. Deprivation

three indices – for economic participation in a long and healthy life (P1) is measured and decision making, political participation by the percentage of people born alive to- and decision making and power over eco- day not expected to survive to age 40; dep-

nomic resources – are averaged to derive rivation in knowledge (P2) is measured by the final GEM value (UNDP 2000). For all the adult illiteracy rate and deprivation in

variables, equally distributed equivalent economic provisioning (P3) is measured percentage (EDEP), as in the calculation of jointly by unweighted composite value of GDI, has been calculated assuming a value the percentage of people lacking access to

of 2 for 'aversion to inequality'. health (P31) services and safe water (P32) and the percentage of children under five who The calculation process of equally distrib- are moderately or severely underweight

uted income index for GEM is similar to that (P33) (UNDP 2000); that is, P3 = [P31 + P32 +

of the GDI. The only difference is in the for- P33]/3. HPI is calculated as outlined in HDR mula while calculating separate income per 1997 with the assumption of a generalised capita indices for both sex. mean = 3.

BOX 5 Illustration of HPI methodology

Region Percentage of Adult illiteracy rate Percentage of Percentage of (P31) + (P32 )/2 people not people without malnourished expected to access to safe children under Deprivation in survive to age water age 5 economic provisioning 40

Deprivation in Deprivation in longevity knowledge (Percent) (Percent)

(P ) (P ) (P ) (P ) (P1) 2 31 32 3 HPI Nepal 17.7 51.4 20.48 50.5 35.49

3 3 3 1/3 HPI = [1/3 {P1 + P2 + P3 }] HPI Nepal = [1/3 {(17.4)3 + (51.4)3 + (35.49)3}]1/3 = 39.6

119 ANNEX 1.3: HUMAN ments of life are not met, many equally im- EMPOWERMENT INDEX portant dimensions of human life become impossible to achieve and many opportu- CONCEPTS AND MEASUREMENT nities remain inaccessible (Raworth, 1998). This assumption, however, provides no Rationale for the human basis for monitoring progress towards other empowerment index elements basic to critical human choices that After several decades of development the index does not reflect. Although income progress and development thinking, em- enters into the HDI as a surrogate for all the powering people and creating a good in- dimensions of human development that are vestment climate have now emerged as the not reflected in a long and healthy life and two basic and mutually reinforcing pillars in knowledge, it cannot serve as the surro- of any strategy for pro-poor growth and sus- gate for non-purchasable goods or other tainable poverty reduction (Stern 2002). human choices.4 This limitation gives rise This is consistent with the human develop- to imperfections that stem primarily from ment paradigm, which envisages the full two sources. First, the HDI is rooted in a empowerment of the people as one of its philosophy of simplicity; it set out to ex- four pillars, the others being equity, clude other major aspects of human life – sustainability and productivity (Haq 1995). even those that are quantifiable – in a glo- As a comprehensive concept, empowerment bal calculation. Second, because of the is- is both an intrinsic element of poverty re- sue of universality, the HDI necessitated se- duction and a means to reduce poverty.1 It lecting only those indicators that are rel- is a surest way to establish link between evant and available for all countries.5 growth and human development. Since its introduction in 1990, the HDI has Despite some progress in human develop- undergone a series of analytical and method- ment, poverty – both income and non-income ological refinements, along with the inclusion poverty – remains intractable because it is so of three additional composite indices (GDI, intricately bound up with the condition of HPI, and GEM), to capture different aspects disempowerment/capability deprivation so of human development from differing per- striking in health, education, knowledge and spectives6 – again, for application on a glo- communication, as well as people's inability bal scale, despite shortcomings for a number to exercise their civil and political rights and of countries. For example, the absence of reli- the absence of their voice, power, dignity and able data restricted the estimates of GDI, GEM self-confidence in the public sphere. In this and HPI-1 to less than 100 countries. With broad context, the HDI cannot be taken as the advent of national human development fully capturing the whole of the concept of reports in 1992, researchers could begin turn- human development. It encompasses only ing their attention to additional indices for three variables – health, education and in- advocacy and policy guidance on priority is- come. It also has its own philosophy as well sues in their own countries – issues that were as limitations. not necessarily global, but of particular relevance to a given society at a given time. Such Human development indices: phi- indicators were also sensitive to short-term losophy and limitations: According to policy changes, as opposed to existing long- Amartya Sen, the HDI should be seen, "as a term stock variables,7 so that the policy-mak- deliberately constructed crude measure, of- ers could focus more sharply on country-spe- fered as a rival to the GNP."2 It does not re- cific problems and priorities when formulat- flect other human choices.3 The restriction ing development strategies. Although the of HDI to these three indicators is justified principle of universalism in the selection of on the ground that if these basic require- indicators has limited scope at the global

120 level,8 there is sufficient flexibility at the na- effort to develop an empowerment index. tional scale not only for adding such priority The Human Empowerment Index (HEI) has indicators, but even for formulating new in- therefore been constructed by bringing to- dices (UNDP 2000). For this reason, the exist- gether the available objective social, eco- ing HDI indices and indicators continue to nomic and political indicators into a com- evolve; the basic components of HDI are be- posite index of empowerment. This holistic ing supplemented, even replaced, by other perspective permits one to measure the em- more relevant indicators to reflect country- powerment level of all human beings at the specific priorities and problems.9 As long as district level in the spirit of the HDI; the dis- the data are reliable, a greater number of key aggregation of the HEI provides the basis indicators that are not reflected in HDI cer- for measuring disparities in terms of caste, tainly permits a clearer picture of human de- ethnicity and gender, subject to the avail- velopment. They also make the index less ability of sufficiently desegregated data- vulnerable because the impact of a biased base. This information will give planners indicator on the overall score diminishes and policy-makers new insights for devising when more indicators are used. appropriate policy interventions to address concentrated poverty and disempwerment at The human empowerment index: The different geographical levels. human development paradigm envisages full empowerment of all people, to enable Defining empowerment them to exercise their choices voluntarily. Empowerment has become a "buzzword", As a critical pillar of human development, used in a variety of situations by a multitude the concept of empowerment is closely of people to describe a proliferation of out- linked to the notion of the human develop- comes (Swift and Levin 1987).11 Because "em- ment paradigm, which embraces all choices – powerment" has acquired a certain cachet in socio-cultural, economic and political. the development community, there is a ten- While human development concerns the dency to use the term loosely, without embed- expansion of social, economic and politi- ding it in a larger conceptual framework cal capabilities that widen people's choices (Perkins and Zimmermann 1995). To under- for leading the kinds of lives they value, em- stand the multifarious uses of the term "empowerment focuses on the question of how powerment", one must examine the founda- the expansion of assets and capabilities, as tional word "power" in terms of two of its pri- well as social inclusion, can enable people mary meanings in all dictionary definitions: to take part in growth processes that also authority (power over) and ability (power to). shape their lives. (Haq 1995). It implies a Power as authority is used to describe what democratic polity in which people can in- one may "rightly" do within an inter-personal fluence decisions on a scale well beyond their system, whereas power as ability is used to own persons and households. Empower- describe what people can (or cannot) do – ment is now recognized as an approach that possession of a power (Wartenberg 1990). creates the environment for enabling citizens to take advantage of poverty-reducing op- Empowerment means transforming existing portunities and assets politically, economi- power relations in favour of those (women, cally, socially and psychologically. disadvantaged groups and, more generally, the poor) who faced severe limitations in ex- While the existing HDI and other compos- ercising power and making voluntary ite indices like GDI, GEM10 and HPI shed choices. Empowerment concerns the trans- light on different aspects of human devel- formative use of power, in which a dominant opment, no single composite index captures agent also exercises his power in such a way all these crucial dimensions of human em- that the subordinate agent learns certain skills powerment. This rationale underlies the that undercut the power differential between

121 him/her and the dominant agent (Wartenberg ing individual and collective skills to gain 1990). In this sense, the notion of empower- power and to have control over decisions and ment "is inescapably bound up with the con- resources that determine the quality of one's dition of disempowerment12 and refers to the life while, at the same time, taking into ac- processes by which those who have been de- count structural inequalities that affect entire nied the ability to make choices acquire such groups. Based on some common denomina- an ability" (Kabeer 1999). tor found in all these definitions, the following working definition of empowerment has Although the term empowerment has dif- been used for operational purposes in the ferent meanings in different socio-cultural present Nepal Human Development Report and political contexts,13 it is defined in the 2004. Empowerment builds people's assets broadest sense as the expansion of freedom and capacity to gain understanding and con- of choice and action for increasing one's au- trol over personal, social, economic and po- thority and control over the resources and litical forces to act individually as well as col- decisions that affect ones life. Since poor lectively to make choices about the way they people's choices are extremely limited, both want to be and do things in their best interest by their lack of assets and by their power- to improve their life situation (UNDP 2003b). lessness to negotiate better terms for them- This definition captures the spirit of human selves with both formal and informal insti- development, which is defined as "creating tution, the empowerment source book de- an environment in which people can develop fines empowerment.... as the expansion of their full potential and lead productive, cre- assets and capabilities of poor people to ative lives in accord with their needs and in- participate in, negotiate with, influence, terests…. to be able to participate in the life of control, and hold accountable institutions the community." Only if people can enhance that affect their lives (World Bank 2002a). their capabilities and their assets/resources This definition14 encompasses two crucial in various forms can they exercise real free- aspects: 1) the ability to make a purposeful dom of choice and action in such a way as to choice and take action in line with this improve their lives in terms that they them- choice (agency) and 2) the ability to trans- selves value. Empowerment is seen as a form this agency into an outcome. While means of dealing with structurally unequal assessment of agency relates to specific at- power relations in legitimately defined ways. tributes of the individual or collective ac- In this core sense, empowerment is not just a tors, the ability to transform action into out- state of affairs but a continuous and a cumu- come is a function of the structure of social lative process at different levels (individual, and political opportunities actors face.15 community or even beyond) and in different Kabeer (2001) defines empowerment as the degrees. Box 2 provides some key concepts expansion in people's ability to make stra- central to understanding the term. tegic life choices in a context where this ability was previously denied to them. This definition makes it possible to distinguish The framework for empowerment from other closely related measuring empowerment concepts: the idea of process, or change from Dimensions of empowerment a condition of disempowerment, and that The existing literature shows varied dimen- of human agency and choice.16 sions of empowerment.17 Allowing for some overlap, empowerment can occur in eco- There are many possible definitions of em- nomic, socio-cultural, political, legal, inter- powerment, including rights-based defini- personal and psychological dimensions.18 tions. Box 1 provides several definitions of For operational purposes, it becomes pos- empowerment from various perspectives. sible to group them further into three broad Most definitions focus on issues of improv- dimensions namely socio-cultural, eco-

122 BOX 1 Some definitions of empowerment

Empowerment is the expansion of assets and capabilities of raise their awareness of participation in their communities poor people to participate in, negotiate with, influence, and their ability to increase their control over their own control, and hold accountable institutions that affect their environment (Johnson 1999). lives (World Bank 2002a). Access to productive resources and the capacity to partici- Empowerment is about the creation of political, legal, socio- pate in decisions that affect the least privileged (IFAD,1995). cultural and economic environment that would facilitate, encourage and enable the powerless (i.e., the poor) to Access to resources, awareness of the causes of inequality, influence policies, decisions, actions on their behalf (Sharma capacity to direct one's own interest, capacity to take con- 2003). trol and action to overcome obstacles to reducing structural in equality (UNICEF 2001). Empowerment is about full participation of people in the decisions and processes that shape their lives. It is viewed The development of the ability and capacity to cope con- in the context of policies and programmes designed to structively with the forces that undermine and hinder cop- strengthen people's capacity to respond to their needs and ing; the achievement of some reasonable control over one's priorities and civil society organizations are viewed as destiny (Pinderhughes 1983). mediators or catalytic agents for people's empowerment and focus on strengthening these mediating structures (UNDP Empowerment is dependent on two concepts: a) an indi- 1998). vidual or group's ability to utilize power to solve problems, gain access to institutions or organizations that are serving Empowerment should lead to the liberation of both men and them, and nurture; and b) equity focusing on the issue of women where each can become whole beings irrespective whether they are getting their fair share of resources (Biegel of gender and collectively use their potential to construct a 1984). more humane society for all (Akhtar 1992). An extensively political – as well as psycho-social – conception Empowerment is the process of gaining power, both control requiring a distinction between empowerment as a develop- over external resources, and growth in inner self-confi- ment of empowering skills and empowerment as attainment dence and capability (Sen 1997). of participatory competence (Keiffer 1984).

Empowerment is the process of awareness and capacity- True empowerment is not a condition which can be bestowed building leading to greater decision-making power and con- by one group on another but is, rather, an ongoing process trol, and to transformative action (Marilee 1995). by which the disempowered seek to fulfil their own needs and preserve their own rights (Swift and Levin 1987). Empowerment is the process of challenging existing power relations and of gaining greater control over the sources of The process by which people, organizations, or groups who power (Batliwala 1994). are powerless a) become aware of the power dynamics at work in their life context, b) develop the skills and capacity Empowerment is about freedom to choose and achieve dif- for gaining some reasonable control over their lives, c) exer- ferent outcomes (Sen 1999). cise this control without infringing upon the rights of others, and (d) support the empowerment of others in their com- Empowerment can be loosely defined as a process through munity (McWhirter 1991). which previously disempowered people increase their access to knowledge, resources, decision-making power, and Empower is used in a legal context meaning "to invest with authority, authorize" (HMC 2000). nomic and political (including legal). health, access to safe water and sanita- Clearly, each of these dimensions is very tion, information and communication.19 broad, containing a range of sub-domains Social capabilities, on the other hand, re- within which people may be empowered. fer in particular to social status, dignity, Refer to chapter 1 of this report for the defi- cultural expression, and sense of belong- nition of these social, economic and politi- ing and solidarity in society and partici- cal dimensions of empowerment. pation in social organizations. Individual human capabilities, when combined with Social empowerment encompasses both social capabilities through the network, human and social capabilities. Human enables collective action to enhance or capabilities include such basic elements expand both individual and collective as- of the quality of life as education, skills, sets and capabilities (social capital),

123 BOX 2 Key concepts central to understanding empowerment

Resources, agency and achievement or outcome as the Women’s empowerment encompasses some additional three most common definitional elements of empow- unique elements: Women are not only a crosscutting category erment20 can be taken as the central concept in Sen’s char- of individuals that overlap with disempowered/disadvantaged acterization of commodities, agency/process and achieved and marginalized subsets of society (ethnic minorities such as functionings/capability. Resources or commodities form the Dalits, indigenous and disabled people), they also face house- enabling conditions under which choices are made; agency hold and inter- and intra-familial relations as source of their is at the heart of the process through which choices are disempowerment in a way that is not applicable for other dis- made, and achievements are the outcomes of choices (Kabeer advantaged groups (Malhotra et al 2002). Gender equality and 2001) and are best treated as outcomes of empowerment. gender equity are separate, but closely related concepts. Gen- The importance of agency emerges from the bottom-up der equality implies equivalence in life outcomes for women and approaches towards development emphasising the impor- men, recognizing their different needs and interests, and re- tance of participation and “social inclusion”.21 While this quiring a redistribution of power and resources. Gender eq- distinction seems clear at the conceptual level, it is not uity recognizes that women and men have different needs, always easy to completely separate the three elements in preferences, and interests and that equality of outcomes may developing empowerment indicators.22 necessitate different treatment of men and women.

Empowerment is a cumulative dynamic process and out- Social mobilization as an important dimension of capacity- come operating at different levels. Empowerment is not building is primarily a mechanism of empowerment: Ca- just a process; it is also about reaching desirable outcomes/ pacity-building is a necessary but not sufficient condition for goals – the substantive empowerment, which encompasses empowerment. While capacity-building refers to knowledge both inter-personal empowerment (individual capacities, transfers to individuals or groups in order to enable or em- self-esteem and self-efficacy) and instrumental empower- power them to carry out certain activities, empowerment in- ment (capabilities such as knowledge and skills) to achieve creases the relative power and ability of people, particularly collective socio-political goals (Rich et al 1995). As a pro- the disadvantaged groups, in their socio-political environment. cess, it involves building people’s capacity through mobilising Empowerment in this sense is thus an outcome of both the ca- and organizing them to channel their collective skills, re- pacity building of the disadvantaged people and a reform of sources and energies to understand and combat the cause of oppressing rules and practice. poverty. As an outcome, it involves people coming together to bring structural transformation of the political, eco- Empowerment as a strategy for conflict transformation: nomic, social and cultural conditions to address the causes Empowerment has a revolutionary potential, as it seeks to pro- of their poverty. Sustainability is the common thread run- mote substantial transformation of existing unequal power struc- ning between the two. Outcome without sufficient attention tures. As such, it is a powerful strategy for transforming con- to process can lead to unsustainability. Empowerment oper- flict for a constructive outcome. Empowerment in this sense ates at different levels. At the individual level, people may means that a party is empowered by gaining new awareness and experience a more immediate psychological empowerment understanding of its goals, options, skills, resources and deci- such as increase in self-respect, esteem, or confidence, sion-making, which make it possible for them to be able to which often evolve from collective action (Labonte 1998). At utilise these new insights in mediation and negotiations. Social the community level, empowerment allows individuals and conflict leads to transformation – for better or for worse. groups to organize and mobilize themselves to achieve com- Conflicts can be better transformed into constructive outcomes monly defined goals. Community empowerment occurs only when people are empowered socially economically and politi- when both individuals and institutions are empowered to cally. Empowerment can also be a negative force for transform- achieve commonly defined outcomes or goals. Empower- ing the dispute into violent conflict if there is a mismatch be- ment is also context-specific, as empowerment in one con- tween social, economic and political empowerment of the people. text often have different meanings elsewhere.23 Empowerment efforts are seen to be successful when four Empowerment and social inclusions are closely related key elements such as access to information, inclusion/par- but separate concepts. Empowerment is about the en- ticipation, accountability and Local Organizational Capacity hancement of assets and capabilities of diverse individuals (LOC) are in place. These mutually reinforcing elements 24 can and groups to engage, influence and hold accountable insti- be successfully applied to four critical development objectives: tutions, which affect them. Social inclusion, on the other ensuring the provision of basic services, improving local and hand, is about the removal of institutional barriers and the national governance, improving access to markets and to jus- enhancement of incentives to increase the access of diverse tice.25 Making state institutions more responsive to people (good individuals and groups to assets and development opportu- governance), removal of social barriers/discrimination and nities (Bennett 2002). While the empowerment process op- building assets and capabilities including organizational capa- erates “from below” and involves agency, as exercised by bility (social capital) are mutually reinforcing pillars/aspects of individuals and groups, social inclusion requires systemic the empowerment approach to poverty reduction. Good gov- change (initiated from above) that is necessary to sustain ernance,26 through state reforms, creates an inclusive partici- empowerment over time (Narayan 2002). It is through the patory environment that helps to remove barriers and pro- process of social inclusion that the “rules of the game” are motes the build-up of assets as well as organizational capabili- modified and institutions transformed so that economic ties of the poor, thereby strengthening the demand side of growth is widely shared (Malhotra et al 2002). empowerment and vice versa.27

124 thereby enhancing social empowerment. means that an integrated approach is re- Economic empowerment concerns ex- quired to address sustainable empower- panding economic capabilities to im- ment, a situation where people are em- prove their access to productive assets powered socially, economically and po- (both physical and financial), as well as litically. A very low level of empowerment access to economic opportunities (em- on all these three fronts (multiple ployment, market and production tech- disempower-ment) and the level of sig- nology). Experience reveals that poor nificant mismatch between these are two people are often excluded from equal ac- extreme cases requiring intervention. For cess to economic opportunities because instance, a high level of social and politi- of market regulations, because they lack cal empowerment amidst the very low information, connections for credit and or- economic empowerment makes empow- ganizations and because of discrimina- erment unsustainable, leading to disen- tion (World Bank 2002a). Empowerment chantment and hence conflict in various strategies that are supportive in overcom- forms. Hence promoting sustainable em- ing many of these barriers can help en- powerment (see area A in Venn diagram hance the assets and economic capabili- shown in chapter I) requires an integrated ties critical for economic empowerment. empowerment-led strategy for poverty re- Political empowerment cannot be seen as duction and human development. the power to vote alone, but also the power of voice and of collective action The capability approach to (Friedmann 1992). It is about the expan- measuring empowerment sion of political capabilities/entitlement Sen's capability approach provides the associated with democratic governance – basic foundation of the concept of human encompassing opportunities for political development and as such is relevant as a dialogue, dissent and critique as well as framework for conceptualizing and ana- voting rights and participatory selection lyzing empowerment.29 This approach in- of legislators and executives.28 Political volves concentration on freedoms to empowerment also encompasses legal achieve in general and the capabilities to empowerment, which is defined as the function in particular (Sen 1993). process of acquiring critical awareness Functionings and capabilities, the major about rights and the law, the ability to constituents of the capability approach, assert rights, and the capacity to mobi- are closely related but distinct concepts. lize for change (Schuler and Kadirgamar- Functionings are achievements more di- Rajasingham 1992). rectly related to living conditions, whereas capabilities are notions of free- Empowerment in one dimension can play dom – real opportunities people have re- a catalytic role in bringing about change garding the life they may lead" (Sen 1987). in other dimensions depending on the A person's achieved wellbeing (funct- context and stage of development. The ex- ionings) varies from elementary things (as pansion of human knowledge and capa- being literate, adequately nourished, be- bilities, for instance, has an indirect in- ing in good health, avoidance of escap- fluence on economic and political empow- able mortality and premature death) to erment. However, evidence shows that more complex achievements (as being empowerment promoting development happy, having self-respect and taking part interventions within a particular dimen- in social life without shame) (Sen 1997). sion does not necessarily lead to empow- Capability is a combination of function- erment in other dimensions (Malhotra ings that a person can achieve, reflecting and Mather 1997; Kishor 1995 and 2000; the freedom to lead one type of life over Hashemi et al 1996; Beegle et al 1998). This another (Sen 1992). The transition from

125 primary goods to functionings, conversion factors influenced by instru- functionings to capabilities and capabili- mental freedoms); and achievements, ties back to primary good and function- which are the outcomes of choices ing is governed by the availability of five (achieved functionings/capabilities). instrumental freedoms (political freedom, economic facilities, social opportunities, If human development is about enlarging transparency guarantee and protective se- people's choices by enhancing their curity) and their interaction with institu- functionings and capabilities, poverty or tions (formal and informal).30 disempowerment means that opportunities and choices most basic to human develop- From this perspective, the functionings ment are denied. Considering that poverty that a person has achieved are not suffi- is the reflection of disempowerment, capa- cient to determine her/his overall bilities and functionings may be the most wellbeing. Instead, it is the functionings appropriate focal variables for measuring that a person could have achieved, given empowerment. If poverty includes all dimen- the opportunity to choose or exercise free- sions of capability deprivations, empower- dom of choice.31 The capability approach ment is the expansion of assets36 and capa- thus imparts considerable value to free- bilities at the individual level (such as health, dom of choice or opportunities and as education, and housing) and at the collec- such, it belongs to the class of opportu- tive level made possible though freedom of nity-based theories32 instead of outcome- choice and action. For our present context, based theories. Given that functionings assets and capabilities can be broadly are objectively observable, whereas the grouped into social (including human), eco- person's capability (potential being and nomic and political components37 to provide doing) are unobservable facts,33 most em- the conceptual foundation for developing pirical applications are often limited to indicators underlying the three broad dimen- measuring outcomes through achieved sions of empowerment. functionings (outcome-based evaluation) ! Human and social capabilities. While rather than measuring opportunities human capabilities include good through capabilities.34 One of the best il- health, education, and other life-en- lustrations of the application of the capa- hancing skills, social capabilities in- bility approach35 is the concept of human clude social status, dignity and other development, which is about enlarging cultural expressions conveying a sense people's choice by enhancing their of belonging, leadership, trust, iden- functionings and capabilities. The human tity and the capacity to organize and development indices constructed by participate in social organizations. UNDP on the foundation of the capabil- Both human and social capabilities can ity approach have clearly established the be combined to address the social di- fact that economic growth and income mension of empowerment. Addressing can be a poor predictor of capabilities. the social dimension of empowerment thus requires expanding both human The capability approach is similar to the and social capabilities and entitle- notion of empowerment, comprising three ments through social opportunities to interrelated components: resources, address social exclusion and depriva- which form the enabling conditions un- tion. der which choices are made (similar to ! Economic capabilities include income the notion of primary good or resource in and material assets (physical and fi- the capability approach); agency, which nancial resources). Addressing the is at the heart of the process through economic dimension of empowerment which choices are made (similar to the requires enhancing economic entitle-

126 ments and capabilities through the ex- the degree of participation in social organi- pansion of economic facilities/infra- zation. As such, the indicators selected for structure and promoting equitable ac- use are neither exhaustive nor comprehen- cess to economic opportunities. sive enough to measure all the crucial at- ! Political capabilities include freedom, tributes of varied dimensions of empower- power, voice and influence over pub- ment. lic policies. It refers to the capacity to represent individuals or groups, ac- Altogether, 15 objective indicators have been cess information, form associations, selected for capturing the three dimensions and participate in the political life of a of empowerment and bringing them together community or country. The politically into a composite Index. There are 8 indica- weak have few entitlements and can- tors used to measure social empowerment, 5 not obtain public resources needed to indicators to measure economic empower- lift them out of poverty. Addressing the ment and 2 indicators to measure political political dimensions of empowerment empowerment. The details on the measure- thus requires political and institu- ment of these indicators, their data sources tional reforms. and the computation procedures for empowerment indices are elaborated at length in All these capabilities are interrelated. Vul- the technical note below. A brief highlight- nerability and social exclusion hamper hu- ing of the definition and relevance of these man and political capabilities resulting in indicators underlying social, economic and reduced income and assets (economic ca- political empowerment in light of the capa- pabilities) and vice-versa. The framework bility framework are in order. encompasses focusing the empowerment interventions on the entire spectrum of the Social empowerment indicators most important dimensions of capability Social empowerment is measured by a set of deprivation and their causal interrelations. 8 indicators reflecting education, health, in- The framework delineating dimensions of formation and participation in social orga- empowerment offers potential roadmaps for nizations. operationalizing and measuring empowerment. Educational attainment: Knowledge is a critical human choice in its own right. It Indicators of empowerment is also valued as a constituent of the hu- The human empowerment index has been man capabilities to do other things (con- constructed for the first time using the avail- tribute to productivity, self-respect and able quantitative indicators at a more relative power or empowerment) and is disagregated level of spatial unit (the dis- encapsulated as instrumental empower- trict). The choice of indicators for computing ment (Rich et al 1995). Literacy figures are empowerment index has been largely guided only a crude reflection of access to educa- by reliance on availability of relevant quan- tion, particularly to the quality of educa- titative indicators at the district level.38 Most tion so necessary for creative and produc- subjective/qualitative variables crucial for tive life in modern society. However, con- measuring empowerment are not available sidering that literacy is a person's first at the district level. Nor is it conceptually step in learning and knowledge building, possible to link them to available objective literacy figures are essential in any mea- indicators to arrive at the composite index of surement of human capabilities and hence empowerment. Even the existing databases social empowerment. are not sufficiently rich to provide a useful set of objective indicators especially to mea- Two sets of indicators used to capture the sure the political empowerment including educational attainment as in the case of

127 HDI are adult literacy39 and mean years health outcome.41 Undernourishment in of schooling. Although, the combined pri- children impairs their working/earning mary, secondary, and tertiary gross enrol- capacity throughout their earning life ment ratio (or flow variable) is another cycle. Among the three most widely used variable used to measure the educational anthropometric indicators (body mass attainment index in HDI, the standard index) that interfere with their health practice in the past Nepal Human Devel- and genetic potential for growth, the opment Report has been to use mean years prevalence of undernutrition in terms of of schooling instead of combined gross stunting remains high (54%) in Nepal enrollment ratio in the absence of infor- compared to underweight (47%) and mation on tertiary gross enrolment.40 wasting (7%). In a poverty-stricken soci- Hence, mean years of schooling has been ety such as Nepal, where food is of tre- included as another indicator to capture mendous importance in the budget, a the overall intensity of knowledge and ca- poor person is more likely to be under- pabilities in education. It captures the nourished than his/her richer counter- educational quality of the literate adult part. This implies that an increase in and the educational attainment of young purchasing power is needed to raise nu- people. Estimate of both the adult literacy tritional status, especially if the nutri- and mean years of schooling is based on tional level is low to begin with.42 These the 2001 population census data. two health indicators are expected to capture the health outcome of infants Health status: As with knowledge, the and young children, the most vulner- health of a country's citizens is another able in a society.43 Any policy that is tar- critical human choice in its own right and geted to address these health indicators is also valued as a constituent of human is expected to have desirable impact on capabilities to do other things. Although longevity as represented by life expect- life expectancy at birth is certainly the ancy variable. most comprehensive indicator of the ! Access to sanitation: Ensuring access to health, it has been considered desirable safe drinking water and sanitation fa- to proximate the determinants of health cilities remains an urgent human need outcome (life expectancy) by three sets of for improving health status or better indicators that are more meaningful and health outcomes. The lack of access to sensitive to capture the short term policy these facilities reflects basic human ca- changes than long-term stock variables, pability deprivation and is also consid- such as life expectancy. These three indica- ered key indicators of HPI.44 However, tors include: considering the close association be- ! Infant mortality is defined as the num- tween these two variables and, more ber of deaths of infants under one year importantly, the need to capture the of age per thousand live births in the year change in human behaviour towards 2001 following the WHO standard. Un- better health outcome, the inclusion of like life expectancy, it is more sensitive access to sanitation is understandable. in the short run to policy changes for The access to sanitation is proximate by assessing the progress towards health the percentage of population with at outcome and is also very strongly asso- least adequate excreta-disposal facilities ciated with life expectancy. (toilets) using the 2001 population cen- ! Child undernutrition defined as per- sus data. The role of sanitation is cru- centage of children aged 1-5 years who cial for understanding the linkage be- are malnourished in terms of stunting tween various health outcomes. While (low height for age) is another impor- the role of clean water in reducing dis- tant indicator included for measuring ease is one aspect of a water supply as a

128 social investment, the installation of toi- basic forms of ICT, such as print media and lets reflect a change in behaviour to ef- television.48 While the lack of disaggregated fectively prevent human, animal, and in- and reliable data precludes the inclusion sect contact with excreta and hence re- of print media, television is not included ducing the excreta-borne disease cycle. because of its high correlation with telephone and radio. The availability of tele- Information and communication: The right phone and/or telephone service is consid- to and relevant and timely access to a vari- ered an effective communications infrastruc- ety of information and communication con- ture for a country to rise beyond a moderate stitute a critical element of empowerment,45 level of development.49 as it enhances knowledge and power and hence creates enabling condition for good Participation in local organizations: The governance – transparency, accountability participation of people in social organi- and legitimacy. An informed citizen would zations is considered one of the critical be in a better position to understand that elements of social empowerment. Orga- he/she has to take advantage of opportu- nized communities are more likely to have nities, have access to services provided by their voices heard and their demands met the state and, as stakeholders in the devel- than unorganized communities. It is only opment process, make development actors when groups connect with each other accountable to them. Conceptually, access across communities and form networks to information and justice can be proximate or associations (federations) that they be- by two sets of indicators,46 namely a) the gin to influence government decision- state of print, audio and visual and com- making and gain collective bargaining munication media (newspaper, radio, TV, power. Social capital formation describes telephone) in terms of their outreach and b) the improvement of the ability of a com- the degree of openness in access to infor- munity to make decisions and enlarge mation and justice (right to information Act, their choices and capabilities.50 Experi- mechanism for social audit, and open ac- ence in Nepal and elsewhere in South Asia cess to land records).47 Since the latter set of provides the common lesson that build- indicators – reflecting the existence of an ing social capital51 through people's or- enabling legal environment for empower- ganizations and their networks and as- ment – is difficult to include in the absence sociations (bridging capital) enables them of any objective indicators at a more to gain collective strength and bargain- disagregated level, the extent of mass infor- ing power to overcome the forces that are mation and communication media, the fol- against them. (SAARC 1992) This strength lowing two indicators are used as proxies: goes in two directions: on the one hand, it ! Proportion of households having access makes it possible for groups of the poor to to radios solve problems by themselves (self-help ! Proportion of households having access approach), and on the other, it makes it to telephone service possible – at least for larger groups of people – to start claiming their rights from The availability of radio, television and tele- different governmental and other institu- phone indicates that people have alterna- tions, i.e., social empowerment.52 tive choices about how to spend their time and money to lead a life that they value. The lack of information does not permit While radio broadcasting has indeed a capturing the extent to which existing so- wider coverage than other media because cial organizations at the district level have of its low cost and effectiveness even for the enhanced social capabilities of organized illiterate, poverty and physical isolation communities to take collective actions. For still exclude many people from using other this reason, the proportion of household

129 members participating in various social correlation between homeless and land- organizations (the outreach of social or- less households, this is excluded from the ganization) has been included as a proxy analysis. If land ownership is fairly for capturing social capital or capabili- equally distributed, the benefit of eco- ties of organized community at the dis- nomic growth will be reflected in good trict level. The information on social mo- economic empowerment and hence good bilization outreach has been obtained human development. from a more recent social mobilization mapping study for 44 districts supple- Access to financial resources: In addition mented by additional information com- to the physical assets such as land, other piled from different secondary sources financial assets – particularly credit – are (ADB, rural development banks and other of the utmost importance to any understand- NGO sponsored socially mobilized group ing of the economic empowerment of membership).53 people, especially the poor. The inclusion of credit as an indicator of economic em- Economic empowerment indicators powerment can be justified in light of the Economic empowerment is measured by finding of numerous studies that have con- five sets of indicators reflecting access to firmed the relevance of micro credit as a land and its distribution, access to credit, critical variable in any effort for social mo- access to electricity, employment and per bilization and hence empowerment. The capita income. proportion of households benefiting from institutional credit is an important indica- Access to and control over productive as- tor to reflect the coverage of institutional sets: Access to productive resources, prin- credit in the country. The national sample cipally land, is a key requirement for any census of agriculture conducted by CBS and escape from poverty, hunger and rural credit survey conducted by NRB are disempowerment. In the predominantly the two national level surveys that provide agrarian economy of Nepal, where land such information. However, the former sur- ownership and its holding continue to be vey is fairly old, while the later survey does treated solely as a source of economic/ not cover all the districts of the country. For social power and dignity, the degree of this reason, an attempt has been made to inequality in the distribution of land hold- compile the information from the main for- ing as measured by the Gini coefficient mal financial institutions regarding their can perhaps be the most powerful indica- coverage at the district level. The formal fi- tor to capture such unequal control over nancial sector in Nepal consists of ADBN economic resources. For this, the extent of and the two commercial banks (NBL and inequality in the distribution of land hold- RRB). Cooperatives financed by ADBN are ing for each district has been estimated also part of the formal financial sector. Ac- using the recent population census data counting for some 85% of the formal finan- and the average size of operational land cial sector, ADBN dominates the rural credit holding is adjusted by the estimated land scene in Nepal despite the fact that only inequality index to arrive at the inequal- 12% of households have access to institu- ity adjusted or Gini corrected average size tional credit in the country. Information has of landholding.54 The Gini-corrected av- also been compiled from other financial in- erage size of holding is included as a stitutions including those operating under proxy for the land-based barriers to eco- the supervision of the central Bank (e.g., nomic empowerment. As with land, ac- Grammeen bank, Nirdhan, Chhimek, cess to housing is extremely valuable for DEPROSC and Swabalamban) and HMG/ many reasons, but because of the strong donor-supported community organizations.

130 Access to electrification: Expansion of employment and underemployment, the road and electricity networks in the coun- ratio of labour force employed in non-ag- try constitutes key economic infrastruc- ricultural employment is used as a proxy ture for empowerment. The role of these for the deprivation in economic inclusion. infrastructures in the development is This variable aims to capture the extent widely discussed in the literature. The of sectoral shift/transformation in em- proportion of households that are con- ployment away from agricultural jobs (to- nected with electricity has been included wards non-agricultural wage employ- as a proxy for the role of enabling eco- ment). nomic infrastructure for empowering poor people. Electricity availability creates Income: As a crucial means to a number many avenues for development and em- of important ends (control over purchas- powerment of people. It enables people to able commodities), income has great sig- start up or expand small-scale economic nificance in any accounting of economic enterprises for reducing poverty and also capabilities and hence empowerment of creates the opportunity for climbing up people. Income can reveal in an indirect the energy ladder. Achieving the MDG of way (both as proxy and as causal ante- eradicating poverty and ensuring envi- cedent) the ability of a person to do things ronmental sustainability is therefore that she or he has reason to value (Anand largely contingent on the provision of an and Sen, 2000).56 In theory, higher income electricity supply that is adequate and af- is likely to raise both power and welfare, fordable to the rural masses. but heterogeneity in other characteristics and household formation can either Employment: Economic empowerment strengthen or weaken the relationship.57 requires equal access to economic oppor- Though there are diminishing returns to tunities and their optimal engagement in income, per capita GDP in PPP$ is treated productive activities. With the persistently as a source of economic power in the same high levels of unemployment and under- spirit of gender empowerment measure employment in the country, there is mount- (GEM), rather than adjusting it though ing concern over the economic exclusion taking [log] as in HDI. that follows from limited employment opportunities, a poor labour market in- Political empowerment indicators formation system and discriminatory Conceptually, both negative (freedom labour market practice in the country. from arbitrary arrest, exclusion) as well Such exclusions place unemployed as positive (freedom to vote, participate youth, the less-skilled workers with dis- in political and social life) aspects of po- abilities, ethnic minority groups and in- litical freedom should be captured by fo- digenous population at special risk – with cusing on both the formal availability and women facing higher barriers to employ- actual exercise of political freedom by the ment across all these categories. The lack people. However, there are no unambigu- of investment in employable skills and ca- ous indicators to measure the extent of pabilities of the vulnerable groups in the democracy and political and civil rights face of globalization, together with the in- as essential elements of political empow- significant transformation of Nepal’s ag- erment. Voter turnout and competitive and riculture, is among the root causes of such fair elections are the only most widely- exclusion. Underemployment is consid- used objective indicators of democracy ered a more serious problem than unem- and political freedom (UNDP 2002b). Ob- ployment in Nepal,55 with agriculture be- jective indicators often fail to capture all ing the main reservoir of surplus labour. aspects of democratic governance.58 Al- In the absence of reliable estimates of un- though a number of subjective governance

131 indicators like the level of democracy, po- turnout directly for rural and urban popu- litical rights and civil rights are used at lation by district. To overcome this prob- the national level (see UNDP 2002b), such lem, the voter turnout in the urban and indicators cannot be applied at a more dis- rural areas have been proxied by the voter aggregated level within the country.59 Sec- turnout in the local election for the posi- ond, subjective indicators cannot be con- tion of municipality mayor and VDC chair- ceptually linked to objective indicators in man respectively. Likewise, the number the formulation of the composite index. of candidates standing for different seats in the local assembly has to be derived Most of the indicators reflecting the at- separately for the rural (VDC assembly) tributes of political empowerment are sub- and urban areas (municipality assembly) jective in nature60 and therefore open to based on local election data obtained from dispute and biases of perception. While the Election Commission. such subjective indicators are possible to form at the national level, using scoring Computing the human methods, they are not necessarily appli- empowerment index cable at the district level, owing to the fact This section addresses the measurement that most of the subjective indicators be- issue with regard to the method of nor- ing measured remain unchanged malizing variables, weighting and the throughout the country.61 Voter turnout aggregation in the construction of com- and the existence of competitive elections posite of human empowerment. are the two most widely used and readily available objective indicators of democ- Normalization and scaling: Each variable racy and political right. Even these, how- selected for measuring different dimen- ever, are not free of controversy, as they sions of empowerment is normalized often fail to capture the widespread, sub- through a process of scaling. The zero to stantive participation and accountability one scoring transformation method used of those who hold power – requirements by UNDP to compute HDI has been used for truly democratic governance.62 How- to normalize each indicator and then to ever, in the absence of any other readily compute the composite empowerment in- available objective indicators at the dis- dex. This method has a number of advan- trict level, the proxies for political empow- tages. First, it transforms the values of all erment are: indicators from 0 (worst condition) to 1 ! Voter turnout in the national election (best condition) of spatial unit (district in 1999; this case) and the value can be computed ! The number of candidacy per seat in with respect to desired or observed maxi- the VDC assembly election 1997. mum and minimum values of spatial unit. Second, this method handles the indica- The first indicator is intended to capture tors that are directly proportional to the the extent of participation in political pro- well being (see equation 1 below) and cess to exercise, while the second aims at those that are inversely proportional to measuring the degree of competition well being (see equation 2). Third, the nor- among citizens in local elections. Infor- malized values are unitless; the method mation on voter turnout in the national is therefore quite useful for dealing with election is based on the general election different units of indicators. Fourth, as result of 1999 published by the Election this technique is unweighted, it is best for Commission. Since the Commission keeps the research in which giving weight to the voter information on a constituency basis individual indicator for the computation rather than that of the poll centre, it has of composite index is difficult. not been possible to obtain exact voter

132 The method involves selecting a maxi- proportion of the range of that indicator. mum and a minimum value for each vari- Algebraically, it can be expressed as able and the difference between the maximum and the minimum value defines the scale. The normalized variable is con-

structed by the ratio of difference between When Xij takes the maximum value of the the observed value and the minimum indicators, numerators becomes zero; value (the path covered by the society in hence the normalized value of indicators

the selected variable) to the difference of (Ii) becomes 0. Alternatively, when Xij be- the maximum value and the minimum comes minimum, the normalized value value (the total path to be covered by ev- becomes 1. In this way, the minimum ery society in the variable in question). value will be transformed to 1 and the maximum indicator value becomes zero. In those cases where the indicator is di- Other values are also changed in the same rectly proportional to empowerment or way, reversing their original order. well being, the normalized value is the difference between the observed or cho- Maxima and mimina: The observed sen value of one indicator and minimum minima and maxima of the spatial unit value of the same indicator as a propor- have been used in normalizing the vari- tion of the difference of the maximum ables. This was also the standard prac- value and the minimum value. Algebra- tice followed by UNDP until 1994 in nor- ically, it can be expressed as follows: malizing variables for constructing the HDI. However, fixed maxima and minima were introduced in 1994 based on the trends of the variables, and their probable values over the next 25 years to carry out th meaningful inter-temporal comparison Where Iij is the normalized value of i indicator for jth region (district) in the coun- and trend analysis of the HDI.63 While th such a fixed method is preferable to the try, Xij is the observed value of i indica- th observed method of fixing minima and tors for j district. Whereas Xi(max) and Xi (min) are maximum and minimum values maxima, especially for intertemporal of the same indicators respectively. When compassion, these is no basis for fixing such a value for these newly introduced Xij takes the maximum value of the indicators, numerators will be the same as the empowerment indicators of the spatial denominators and hence the normalized unit in the absence of spatially disaggre- value of indicators (Ii) becomes 1. Alter- gated time series data on most variables to project their probable values in the next natively when Xij becomes minimum, the normalized value becomes zero. In this 25 years or so together with the need for way, the highest value will be transformed consensus among policy-makers to ascer- to 1 and the lowest value to zero. Simi- tain the maximum path desirable for at- larly, other values are transformed to the tainment (goal post). The normalized vari- range 0 to 1 without changing the order able, which is a pure number, shows, for of the value. a particular variable, the path covered by a society as a proportion of the path to be In cases where indicators are inversely covered. Thus, if a society for a particular proportional to empowerment, the nor- variable remains at the minimum, the malized value is the difference between normalized value of the variable will be the maximum value of the indicator and 0; if it has attained the maximum value, the actual value of the same indicator as the normalized value will be 1.

133 Weighting: As with the HDI, all variables Calculating human considered for measuring empowerment empowerment index: illustration at the district level are given equal weights The human empowerment index mea- considering that all the dimensions in- sures the average achievement in the cluded in the HEI are equally important country by district in three dimensions of and desirable in their own right for build- empowerment: social, economic and po- ing human capabilities. While the ab- litical. Before the HEI itself is calculated, sence of any substitution makes the as- an index needs to be created for each in- sumption of equal weights defensible, dicator underlying these dimensions. more research is needed to explore sub- Boxes 1 through 3 illustrate the calcula- stitution possibilities among indicators tion of social, economic and political em- through modelling, although the treat- powerment index for Nepal. ment of weight is not always free of controversy.64 Some limitations and Aggregation and composite index: Once scope for refinement all the variables are normalized with all There is considerable scope for refining the the necessary adjustments, a simple mean HEI in a number of ways. First, there is a of various domains is taken to first arrive need for further research to explore the at social, economic and political empow- threshold level for certain indicators be- erment indices. A composite index of em- yond which an individual or community powerment is the simple arithmetic mean may feel empowered in each sphere of life. of these three dimensions of empower- In some cases, a very low level of ment. The maximum value of the empow- disempowerment for a single indicator – no erment index is 1 and the minimum value matter how high or empowered a region is is 0. relative to other indicators – may be enough to dominate all other considerations. Sec- ond, it is necessary to establish a more disagregated database for reflecting the social, economic and political status of those Where E is the overall empowerment in- ij most disempowered. Currently, as with HDI, th dex for j spatial unit (districts and eco- HEI conceals many disparities in levels of development regions in this case) and I ij empowerment within the district, both in th denotes the normalized value of i sub- terms of lower spatial units (e.g. VDCs) and indices comprising social, economic and social and economic groups (gender, caste/ th political empowerment for j spatial unit. ethnicity etc). The computation of more dis- N is the number of three sub-indices – aggregated HEI in terms of these groups those for social, economic and political could help us understand the relative posi- empowerment. Within social empower- tion of these groups within the district. Third, ment component, three sub-indices have there is a need to fix the goal post for all indi- been computed separately for education, cators in order to make the HEI comparable health and information using a simple over time. This requires not only enough average of their respective indicators. national-level time series data for most new Likewise, the three sub-indices – those for indicators not reflected in the HDI, but also land, credit and employment-based indi- a consensus among policy-makers to ascer- cators – have been computed first in or- tain the maximum path desirable for attain- der to arrive at the economic empowerment at the national level. In the absence of ment index. such information, the observed minimum

134 BOX 3 Illustration of social empowerment index calculation

Social empowerment is measured by four key domains, such as participation, information, health and education, with each domain consisting of a set of indicators. Therefore, four sub indices have been computed separately for education, health information and participation, using a simple average of their respective indicators as illustrated below.

Calculating the education index The education index measures the relative achievement of different districts in terms of two education-related variables: adult literacy and mean years of schooling. For Nepal, with an adult literacy rate of 48.6 and mean years of schooling of 2.75, the education index works out to be 0.429 as illustrated below. XE1 Adult literacy (15+) = 48.6 XE2 Mean years of schooling = 2.75 XE1* Adult literacy index = (48.6 – 19.6)/(73.5 – 19.6) = 0.538 XE2* Mean years of schooling index = (2.75 – 1.25)/(5.94 – 1.25) = 0.320 XEI Education index = (XE1*+ XE2*)/2 = (0.538 + 0.32)/2 = 0.429

Calculating the health index The health index measures the relative achievement of different districts in terms of three health-related variables. These include separate indices for infant mortality, malnourished children and access to sanitation (toilets). For Nepal, with an infant mortality rate of 68.51 per 1000 live birth in 2001, child undernutrition (stunting) of 50.51% etc, the health index works out to be 0.563 as illustrated below. XH1 Infant mortality (number/1000 live birth) = 68.51 XH2 Malnourished children under 5 (%) = 50.51 XH3 Population with access to sanitation (%) = 39.22 XH1* Infant mortality index = (173.83 – 68.51)/(173.83 – 24.01) = 0.703 XH2* Malnourished children under 5 index = (90.00 – 50.51)/(90.00 – 26.67) = 0.623 XH3* Population with access to sanitation index (%) = (39.22 – 9.04)/(92.30 – 9.04) = 0.362 XHI Health index = (XH1* + XH2* + XH3*)/3 = (0.703 + 0.623 + 0.362)/3 = 0.563

Calculating the information and communication index The information and communication outreach index measures the relative achievement of different districts in terms of two IC technology-related variables: radio and telephone. For Nepal, with the population outreach of these variables, the IC index works out at 0.297, as illustrated below. XIC1 Household population with radio = 52.59 XIC2 Household population with telephone = 3.91 XIC1* Radio ownership index = (52.59 – 30.07)/(80.94 – 30.07) = 0.443 XIC2* Access to telephone index = (3.91 – 0.0)/(25.90 – 0.0) = 0.151 XICI Information and communication index = (0.442 + 0.151)/2 = 0.297

Calculating the social mobilization outreach For Nepal, with the social mobilization outreach of 28.74 % in 2001, the SM outreach index works out at 0.336, as illustrated below. XSO Household membership in social organization = 28.74 XSOI Social mobilization outreach Index = (28.74 – 0.0)/(85.54 – 0.0) = 0.336

Calculating social empowerment index The social empowerment index is the simple arithmetic mean of the above three sub-indices: education, health and information and communication. With the above estimated values of these indices for Nepal, the composite index of social empowerment for Nepal works out at 0.406, as illustrated below. SEI Social empowerment = (XEI + XHI + XICI + XSOI)/4 =(0.429 + 0.563 + 0.297 + 0.336)/4 = 0.406

and maximum values of indicators across the though the treatment of weight is not always regions/districts have to be utilized for nor- free of controversy. While the assumption of malizing the indicators; this was the method no substitution among some indicators that used also by UNDP initially (until 1994) in are important in their own right makes the normalizing HDI indicators. The fourth pos- equal weighting defensible, more research is sible refinement is to explore the possibility needed to explore the substitution possibili- of assigning weights for each indicator, al- ties among indicators through modelling.

135 BOX 4 Illustration of economic empowerment index calculation

Economic empowerment is measured by five sets of variables, namely access to productive resources (land and its distribution), electrification, credit, employment structure and per capita income.

Calculating the land based index XL2 Gini-corrected average land holding = 0.337 XLDI Land accessibility index = (0.337 – 0.072)/(0.564 – 0.072)= 0.540

XEL Electrified households % = 31.08 XELI Electrification index = (31.08 – 0.58)/(96.81 – 0.58) = 0.317

Calculating the credit index XC1 Households with access to institutional credit = 19.85 XCI Access to institutional credit index = (19.85 – 0.0)/(68.68 – 0) = 0.289

Calculating the employment index XN1 Labour force employed in non-agricultural sector = 31.33 XNI Non-agricultural sector job index = (31.33 – 9.99)/(79.01 – 9.99) = 0.309

Calculating the income index XIN Per capita GDP at ppp $ 2001 = 1310 XINI Income index = (1310 – 679)/(3438 – 679) = 0.229

Calculating economic empowerment index The economic empowerment index is the simple arithmetic mean of the above five sub-indices, namely land base index electrification index, credit index, employment index and income index. With the above estimated values of these indices for Nepal, the composite index of economic empowerment works out at 0.337, as illustrated below.

EEI Economic empowerment index = (XLDI + XELI + XCI + XNI + XINI)/5

= (0.540 + 0.317 + 0.289 + 0.309 + 0.229)/5 = 0.337

BOX 5 Illustration of political empowerment index calculation

The political empowerment index measures the relative achievement of different districts in terms of two indicators, namely voters turnout, degree of competition in local election. For Nepal, the political empowerment index works out to be 0.646 as illustrated below.

XP1 Voter turnout in the last national election % = 66.05 XP2 Contested candidates per seat in local election = 2.05 XP1* Voters turnout index = (66.05 – 31.81)/(80.84 – 31.8) = 0.698 XP2* Degree of competition (candidates per seat) index = (2.05 – 0.99)/(2.77 – 0.99) = 0.594 PEI Political empowerment index = (0.698 + 0.594)/2 = 0.646

Calculating overall human empowerment index The overall composite index of empowerment is computed using simple arithmetic mean of social empowerment index (SEM), economic empowerment index (EEM) and political empowerment Index (PEM) as illustrated below for Nepal.

HEI Overall empowerment (SEI + EEI + PEI)/3 = (0.406 + 0.337 + 0.646)/3 = 0.463

In summary, as a much broader concept, ment) are some critical aspects of human human empowerment includes many as- empowerment that are difficult to measure. pects – both subjective perceptions and ob- The concept of political freedom as a touch- jective realities of life – that have not been stone of political empowerment is much possible to capture fully – or that are not larger than what has been measured in this being measured. Political freedom, partici- Report through the use of the two most pation in decision-making, personal secu- commonly used objective indicators (the rity, and threats to sustainability (environ- voter turnout and the degree of competi-

136 tion among candidates in local elections), subjective indicators into a composite in- which are often ambiguous in nature. dex of empowerment, is a serious chal- There is a need to establish disaggregated lenge that has deterred researchers. Sub- data to meaningfully capture the true level jective ratings are always open to obvi- of political empowerment. Conceptually, ous contestation about the knowledge both negative (freedom from arbitrary ar- and bias of the raters. Nor can such a rat- rest, exclusion) as well as positive (free- ing be combined with a real number, as dom to vote, participate in political and they do not meet the criteria of reliability social life) aspects of political freedom and validity. While these problems de- should be captured by focusing on both terred our current efforts to include other the formal availability of political free- pertinent governance-related subjective in- dom and its actual exercise by the people. dicators of political empowerment, constant However, the lack of such information at research in this area will certainly provide a more disagregated level, together with scope for capturing additional aspects of po- the difficulties of scoring and combining litical empowerment in future.

ENDNOTES

1 Empowerment is an integral component of any strat- making. As with HDI, all these composite indices egy of development and poverty reduction, a mes- are constructed on the same philosophy of simplic- sage communicated by the World Bank study Voices ity and universality in the choice of indicators of the Poor, which drew on surveys of more than (HDRO/UNDP 2003). 60,000 poor people in more than 60 countries (see 7 For example, the stock variables like life expect- Narayan D. et al 2000a). ancy and adult literacy cannot reflect short-term 2 see UNDP 1999. progress, whereas a flow variable like net primary 3 These include human freedom, the opportunity to enrolment figures can do so. This has led to the be productive and guarantees of enjoying self re- Human Development Report Office (HDRO), in spect, participation and security-all essential ingre- collaboration with a number of UNDP Country Of- dients to people’s empowerment. (We thank Selim fices, to devise short-term progress indicators that Jahan for this and other points made in a personal are more sensitive to policy changes and can also communication.) monitor short-term progress (Jahan 1999, 2000 and 4 The manner in which GDP per capita is adjusted, 2003). using logarithmic functions among many other pos- 8 The absence of any reliable data on the issue of sible functions, is often argued to have reduced its access to health services has forced the estimate of importance in the index. Such an adjustment of GDP HPI-1 to rely on the other two variables included in per capita in HDI does not permit capturing the economic provisioning. As noted in the text above, environment-income nexus, particularly since en- the non-availability of data has restricted the esti- vironmental quality begins to increase once a coun- mates of GDI, GEM and HPI-1 to less than 100 country reaches GDP per capita of US$ 10,000 (1,985 tries. dollars), a level of income well beyond the point at 9 For example, the income component of HDI (justi- which the UNDP assumes that growth in GDP per fied in terms of command over resources needed for capita contributes minimally to human development a decent living) is supposed to reflect elementary (Grossman and Krueger 1995: 370-71). capabilities for which adequate quantitative data 5 Further, it should also be viewed in the context of are not available on a comparable cross-country basis. other criteria, namely those of sufficient attractive- However, there is scope for capturing such elemen- ness to policy-makers and pluralism, rather than tary capabilities in the preparation of national hu- mono-centricity (Jahan 2003). man development report, depending on the avail- 6 GDI was introduced to adjust HDI for gender inability of such data. equality. HPI was introduced to measure shortfalls 10 Both the GDI and GEM have established that greater in human development from a deprivation perspec- gender equality in building human capabilities or tive, but fails to account for deprivation in other providing opportunities to women does not depend basic capabilities and choices of human lives (social on income level or stage of development (Anand inclusion, political freedom and opportunities to and Sen 1995). enjoy self respect and guaranteed human right – a 11 The term “empowerment” originated in the social notion of disempowerment). Likewise, the GEM movements of the 1960s and 1970s. Prominent ex- shed lights on gender inequality in opportunities in amples are the Black Power movement in the United economic and political participation and decision- State and the emancipation movement of Paulo Freire

137 in Latin America. During the Third World Confer- acquired or learned. In addition to its direct value ence on Women, held in 1985 in Nairobi, the women’s (creative and healthy life) in its own right, it also network Development Alternatives for a New Era has instrumental value (indirect role) in influencing (DAWN) introduced the term into the discourse on social, economic and political participation and en- development and women’s roles in politics (Sen and titlements (Sen 1997). Grown, 1987). It became a watchword among femi- 20 See Rowlands 1995; Oxaal and Baden 1997; Sen G nist writers (Friedmann, 1994: 115) and has also 1993; Kabeer 2001. become a term of much political rhetoric (Chamber- 21 See Friedmann 1992; Oxaal and Baden 1997; lain 1997). Rowlands 1997; Chambers 1997; Narayan et al 2000a 12 Poverty and disempowerment are closely associ- and 2000b ated because an insufficiency of the means for meet- 22 A given variable may function as an indicator of ing one's basic needs restricts one’s ability to make access to resources (or an enabling factor) in one meaningful strategic life choices. It also brings to context, of people’s agency in another, and may the fore the fact that implicit in the proper use of the represent an achievement in still other contexts. The term “empowerment” is the notion that someone is proper understanding of such a relationship thus giving power and skill to someone who did not becomes essential to devising suitable empower- have it previously. ment interventions. 13 An exploration of local terms associated with em- 23 For example, a shift in women’s ability to visit a powerment around the world include self-strength, health centre without permission from a male house- control, self-power, self-reliance, own choice, life of hold member may be a sign of empowerment in dignity in accordance with one’s values, capable of one country (rural Bangladesh) but not in another fighting for one’s rights, independence, own deci- (urban Peru) sion making, being free, awakening, and capabil- 24 Accountability is possible only through access to ity – to mention only a few (World Bank 2002a). information. Even if access to timely information is 14 It is also argued that this definition is somewhat available, people can-not take necessary action in narrow and specific rather than what could be un- the absence of LOC. Likewise, strengthening LOC derstood from the use of the term power in normal is not possible in the absence of access to informa- parlance, as it associates empowerment with poor tion, participation, and the accountability of service people and thus implies that non-poor people have providers to poor people. adequate power and need not be empowered; it 25 See World Bank 2002a. also limits the range of action to those that involve 26 Governance comprising the three closely interre- an interaction with institutions. This implication was lated concepts: accountability, legitimacy, and trans- partially refuted in a recent empirical study for parency is defined as the exercise of (state) power in Russia, which found that many people who do not a variety of institutional contexts to direct, control, see themselves as poor nevertheless feel that they and regulate activities of people as citizens, voters, have little power. (Lokshin and Ravallion 2002). and workers (Robinson, quoted in Dahal 1996). 15 Actors may be ineffective because they lack agency 27 See Sharma 2002. to transform their claims into outcomes, because they 28 Democratic governance ensures that people's hu- are weaker than other autonomous actors, and be- man rights and freedoms are respected, that people cause the context in which they operate is have influence in decisions that affect their lives, inresponsive to their action, etc. Agency, on the and that they can hold decision-makers account- other hand, depends on the economic and educa- able. tional resources of actors, on their cognitive resources 29 Sen's capability approach has contributed to an im- and on their organizational capacities and their in- portant paradigm shift in development economics- tegration into social networks (Smulovitz 2003). away from welfarist approach to increased empha- 16 Strategic life choices are meant to describe decisions sis on incorporating individual entitlements, capa- that influence a person’s life trajectory and subse- bilities, freedoms and rights into the conceptual foun- quent ability to exercise autonomy and make dation of economics and social choice. This approach choices. can be seen as a framework of thought and stresses 17 See Malhotra et al 2002; Friedmann 1992, 1996; the number of purposes for which it can have rel- CIDA 1996; Stromquist 1995. evance to conceptualizing and analyzing well-be- 18 Psychological empowerment concerns the ing and poverty, liberty and freedom and empow- individual's sense of potency, which results largely erment (Sen 1993). from successful action in the social and political do- 30 For a detailed exposition of these instrumental free- main (Friedmann 1992 and 1996). Perceived com- doms, see Sen 1999. petencies, self-confidence and self-determination are 31 It is only through information on the achieved some variables critical for measuring psychological functionings and the capability set that it becomes empowerment, even though they are not easily possible to deduce whether the non-achievement of measurable, unlike other dimensions of empower- a certain functioning is the result of a free choice to ment in the absence of information on these attribute forego this particular functioning or simply because of psychological empowerment. it was not available in the capability set. The con- 19 Capability may be seen as the capacity that enables cept of “refined functioning” takes note of the avail- people to increase their well-being depending on a able alternatives/options or capabilities available variety of factors such as education, health, skills to a person. For instance, a person experiencing that are inherent in the family or skills that are famine has no option to choose being nourished,

138 while an activist may chose to fast despite his option available separately for primary and lower second- to choose being nourished. Considering the options ary and secondary education, but not for tertiary of persons, one can give the activist a higher score education and also for rural-urban areas. on the refined functioning of being nourished than 41 It is also one of the key indicators used for measur- the person experiencing famine. ing HPI. 32 If you have a job offer, then having a job and earn- 42 The relationship between increases in income and ing money is an opportunity. But not taking the job increases in nutrition may or may not be strong. would mean those functionings will not (to the same This weak relationship implies that providing a di- degree) be achieved despite their being a part of rect nutrition supplement may have a far greater the capability set (Sen 1993). impact on undernutrition than an increase in in- 33 See Roemer J. 1996. come. 34 The capability approach can be used at various lev- 43 This is not only in line with the international en- els of sophistication, but Sen has constantly pointed dorsement of the MDG, which recognizes health out data limitation as a substantial drawback. outcome of children as priority for action, but it can 35 Sociologists and psychologists have made similar also capture the short-term policy changes in health applications for several decades. Sen (1987:24; 31) outcomes, unlike the long-term change in a stock himself refers to the literature on basic needs and variable such as life expectancy. social indicators and sociological studies. 44 It should be noted that the level of deprivation in 36 Assets refer to material assets, both physical and economic provisioning in HPI-1 is captured by the financial, which enable people to withstand shocks lack of access to health services, safe water and sani- and expand their horizon of choices. The extreme tation and level of malnutrition. limitation of people's physical and financial assets 45 It is considered a critical element for supporting severely constrains their capacity to negotiate fair empowerment, the others being accountability, in- deals for themselves and increases vulnerability. clusion/participation, and local organizational ca- 37 Protective capabilities with respect to security and pacity (World Bank 2002a) vulnerabilities is also a key dimension of poverty 46 See Sharma 2002 and hence disempowerment, which are chronic as 47 While the Nepalese people have the constitutional much as they are transient. The dynamic concepts right to demand information on any matter of pub- of empowerment that are closely related to poverty lic importance, the government has yet to pass the are thus needed to grasp the fact that people move bill to make this provision feasible. to a large extent in and out of poverty or 48 The free and fair flow of information in many poor disemporement trapped intermittently in response countries, including Nepal, is the exception rather to seasonal variations and external shocks at the than the rule. Cost-based barriers include low in- household, community or national level – result- comes and the relatively high costs of energy for ing, for example, from natural disaster, violent con- batteries, electricity or fuel for generators, which flict and economic crisis. Addressing such vulner- are additional barriers produced by low levels of ability issues thus calls for providing protective se- rural electrification, low quality radio and televi- curity in the form of social safety net (Sen 1999). sion transmitters and poor press circulation. 38 This limitation clearly underscores the possibility of 49 A correlation analysis suggests that while television capturing the subjective elements of empowerment, is not correlated with radio (0.144), it is positively and thereby confining the study to those indicators correlated with telephone service. However, consid- for which proxies of resources/enabling condition ering the importance of the telephone in going be- and outcome/achievement of empowerment can be yond a moderate level of development, it is also found. included as crucial indicator of communication me- 39 Adult literacy is the ratio of the literate population dia. aged 15 years and above to total population of the 50 Social capital concerns developing the roles and re- same age expressed as a percentage. The treatment sponsibilities of individuals and their institutions, of children’s literacy rates (6-14 yeas) separately and is created through changes in the relationship would perhaps be another desirable indicator to between persons that facilitate collective actions in capture the progress towards making basic educa- the form of new relationships between individuals. tion accessible and affordable to those groups of 51 Shared learning, the devolution of responsibility, families whose children are still forced to enter the the establishment of working rules, how activities labour market in its worst forms because of extreme are undertaken, monitored and enforced are also poverty, thus perpetuating intergenerational pov- forms of social capital. Social capital formation de- erty. However, the child literacy figure has not been scribes the improvement of the ability of a commu- included because of its strong association with adult nity to make decisions and enlarge their choices literacy figures. and capabilities. 40 In a developing country, where ensuring universal 52 see Banskota and Sharma 1996. access to basic education is a critical issue of concern, 53 The social mobilization mapping exercise reveals the focus on combined primary and secondary gross about 38% of household coverage in 44 districts stud- enrollment is a better educational indicator than ied. See Sah J., ed. 2003. mean years of schooling. Net enrolment rate (NER) 54 When G is the Gini coefficient utilised to measure is a better indicator than Gross Enrollment Rate the degree of inequality in the distribution of land (GER) to measure the correct age population actu- holding and L is the average size of operational ally enrolled. NER statistics at the district level are holding, the Gini-corrected average landholding (W)

139 is computed as W= L( 1-G). If a particular district has 60 A World Bank team has constructed six aggregate a higher value of W, then it can be seen as having a indices based on numerous indicators from more higher level of productive asset than the latter. than a dozen sources: voice and accountability, po- 55 Some 47% of the employed labour forces remain litical instability and violence, rule of law, corrup- underemployed, compared to some 5% of the total tion, government effectiveness and regulatory bur- labour force that remains completely unemployed. den. The voice and accountability index, combines The target set by the Ninth Plan was to reduce several indicators of the political process, including unemployment from 4.9% to 3.0% and underem- the selection of governments, with indicators of civil ployment from 49% to 10 % in the next 20 years. liberties and political rights, and press freedom and 56 See Anand and Sen 2000. independence. (UNDP 2002b). 57 Empirical evidence from Russian adults indicates 61 The same applies to even some objective indicators, that higher individual and household incomes raise which remains unchanged at the district level. both self-rated power and welfare (Lokshin and 62 See Note 58 above. Ravallion 2002). 63 The need for using fixed maxima and minima rather 58 For instance, the very low voter turnout in the local than observed maxima and minima for normalizing government elections is also visible even in the the variables was considered important to capturing healthiest democratic systems, such as Britain. In the two issues. First, the use of observed maxima and some cases, a country may hold elections without minima provided no way of knowing whether the their ever resulting in a change in power, whereas changes in the HDI value of a country stem from its in others there are changes in power, but civil liber- improved performance or from changing the goal ties such as press freedoms may be curtailed. posts. Second, since the observed maxima and minima 59 This is because of the uniformity of the most indica- change from year to year, representing changes in tors relating to political freedom and power and goal posts themselves; any meaningful inter-tempo- legal provision throughout the country (UNDP ral comparison was not possible. 2002b). Second, measuring the subjective indicators 64 As with HDI, there is, however, an assumption of is always beset by controversy regarding their scal- transformation – education is transformed into ing and weight. knowledge and enhances human capabilities; income is transformed into other aspects of empowerment not captured by the existing indicators.

140 95.8 81.9 85.3 85.6 90.1 73.6 75.3 88.5 85.4 95.8 93.4 95.4 Ratio to national Human Index (HDI)HDI development index Income index Educational Life 0.492 0.332 0.382 0.402 0.4660.430 0.202 0.262 0.374 0.374 0.347 0.355 0.5830.544 0.305 0.289 0.363 0.375 0.417 0.403 index expectancy attainment 1310 0.600 0.385 0.429 0.471 100.0 1162 0.594 0.352 0.409 0.452 2224 0.659 0.568 0.518 0.581 123.3 1114 0.459 0.296 0.402 0.386 1424 0.675 0.417 0.443 0.512 108.6 1235 0.649 0.364 0.420 0.478 101.3 1202 0.665 0.400 0.415 0.493 104.6 1597 0.625 0.382 0.463 0.490 103.9 1254 0.633 0.418 0.422 0.491 104.2 1079 0.488 0.326 0.397 0.404 1276 0.648 0.357 0.425 0.477 101.2 1157 0.594 0.271 0.409 0.425 2505 0.533 0.393 0.538 0.488 103.5 1057 0.708 0.399 0.394 0.500 106.1 2083 0.658 0.475 0.507 0.547 115.9 12661222 0.644 0.612 0.405 0.325 0.424 0.418 0.491 0.451 104.2 1277 0.663 0.392 0.425 0.494 104.7 1198 0.618 0.434 0.414 0.489 103.7 1130 0.538 0.378 0.405 0.440 1244 0.548 0.380 0.421 0.450 (PPP US$) GDP Per capita INDICES Mean years

Adult 48.6 2.75 45.0 2.35 68.3 5.06 36.1 2.50 52.3 3.09 46.1 2.54 50.3 2.90 47.7 2.89 52.9 2.93 41.7 2.14 42.5 2.18 988 45.2 2.51 34.4 1.88 49.5 2.82 32.650.7 1.99 2.75 939 25.3 1.48 940 58.6 3.79 38.7 3.01 50.7 3.03 50.2 2.60 54.6 3.13 48.6 2.42 36.8 1.97 945 38.9 2.05 879 49.2 2.34 DEVELOPMENT

Life 60.98 64.53 65.50 63.95 64.90 63.00 54.50 61.70 63.65 64.80 57.30 57.90 at birth expectancy literacy of schooling UMAN Human development and empowerment monitors arai 2: 2.1: H Human development index by region, 2001 arai arai arai estern T NNEX Region Nepal Rural 60.61 Urban Mountain 52.55 Hills Tarai Eastern region Central region 62.51 Western region Far Western region 54.30 Mid-western region Eastern mountain 63.90 Central mountain 60.63 Western mountain 57.00 Far Western mountain 50.80 Eastern hills 67.45 Mid-western mountain 52.94 Central hills 64.48 Western hills 62.10 Central T Far Western hillsEastern T 57.65 Western T Mid-western Tarai Mid-western hills 60.00 Far W TABLE 1 A NNEX A

141 Contd... rank 99.5 34 99.1 35 99.1 36 98.7 37 98.3 38 98.3 39 96.4 40 96.1 41 95.5 42 Ratio to HDI national Human velopment index (HDI)HDI index de Income index Educational Life 0.717 0.366 0.380 0.488 103.5 21 0.740 0.326 0.376 0.481 102.0 27 0.664 0.400 0.339 0.467 0.635 0.349 0.374 0.453 0.642 0.330 0.378 0.450 index expectancy attainment 1310 0.600 0.385 0.429 0.471 100.0 3438 0.742 0.622 0.590 0.652 138.2 1 1862 0.772 0.525 0.488 0.595 126.2 2 1707 0.763 0.543 0.474 0.593 125.8 3 2059 0.702 0.559 0.504 0.588 124.8 4 1358 0.721 0.482 0.435 0.546 115.8 5 1572 0.739 0.432 0.460 0.543 115.3 6 1333 0.712 0.460 0.432 0.535 113.5 7 1617 0.705 0.423 0.465 0.531 112.6 8 1188 0.730 0.429 0.413 0.524 111.1 9 1246 0.713 0.436 0.421 0.523 111.0 10 1215 0.662 0.484 0.417 0.521 110.5 11 1715 0.563 0.516 0.474 0.518 109.9 12 1102 0.665 0.456 0.401 0.507 107.6 13 1220 0.679 0.414 0.418 0.504 106.9 14 2746 0.534 0.418 0.553 0.502 106.4 15 1381 0.614 0.446 0.438 0.500 106.0 16 1209 0.694 0.384 0.416 0.498 105.6 17 1302 0.558 0.496 0.428 0.494 104.9 18 1145 0.642 0.425 0.407 0.492 104.3 19 1284 0.657 0.392 0.426 0.492 104.3 20 1088 0.628 0.433 0.398 0.486 103.2 22 1167 0.577 0.471 0.410 0.486 103.1 23 1072 0.659 0.397 0.396 0.484 102.6 24 1310 0.645 0.370 0.429 0.482 102.1 25 2466 0.534 0.376 0.535 0.482 102.2 26 1257 0.646 0.374 0.422 0.481 102.0 28 1370 0.590 0.410 0.437 0.479 101.6 29 1455 0.682 0.308 0.447 0.479 101.6 30 1836 0.513 0.438 0.486 0.479 101.6 31 1002 0.661 0.370 0.385 0.472 100.1 32 1130 0.626 0.384 0.405 0.471 100.0 33 1079 0.684 0.326 0.397 0.469 1169 0.616 0.376 0.410 0.467 2156 0.595 0.288 0.513 0.465 1237 0.643 0.327 0.420 0.463 1341 0.540 0.417 0.433 0.463 1219 0.592 0.354 0.417 0.454 (PPP US$) GDP Per capita Mean years 48.6 2.75 73.5 5.94 64.0 4.41 66.8 4.40 66.9 5.07 62.2 3.01 56.1 2.60 57.5 3.47 52.3 3.35 54.4 2.98 54.0 3.40 61.5 3.32 65.4 3.62 58.6 2.96 51.2 3.28 52.2 3.17 56.2 3.23 48.9 2.59 62.2 3.67 55.0 2.64 49.2 2.90 47.3 2.30 975 56.3 2.58 60.7 2.99 50.0 2.87 46.9 2.60 47.8 2.58 41.7 2.18 952 47.5 2.58 53.4 2.45 39.0 2.15 58.0 2.33 46.8 2.61 47.7 2.95 42.3 1.98 50.5 2.84 760 47.3 2.73 36.7 1.97 42.5 1.97 53.6 2.67 44.9 2.46 44.0 2.52 939 42.2 2.19 965 Adult Life 60.98 71.33 67.10 68.27 67.71 67.28 68.79 64.73 65.76 61.86 66.62 58.49 63.54 68.03 62.69 59.64 63.68 57.03 69.39 65.94 55.75 66.05 64.82 61.94 60.72 63.57 60.50 63.13 at birth expectancy literacy of schooling Human development index by district, 2001 Nepal Kathmandu 69.53 District Bhaktapur Kaski 70.76 Lalitpur Rupandehi Kavrepalanchok 69.33 Syangja Morang Tanahu Terhathum 67.78 Ilam Chitawan 58.78 Dhankuta 64.90 Parbat Manang 57.03 Sunsari Myagdi Jhapa Baglung Lamjung 64.41 Udayapur Surkhet Palpa Panchthar 64.51 Nawalparasi Mustang Okhaldhunga Sankhuwasabha 63.78 Banke 60.38 Solukhumbu Makwanpur Bhojpur 64.64 Arghakhanchi 62.54 Sindhuli Gulmi Taplejung Bara Nuwakot Kanchanpur 57.39 Gorkha Saptari Dolakha 63.50 TABLE 2

142 rank Ratio to HDI national Human Index (HDI)HDI development index Income index Educational Life 0.617 0.346 0.383 0.449 95.2 43 0.606 0.344 0.376 0.442 93.8 45 0.5970.640 0.310 0.278 0.379 0.363 0.429 0.427 90.9 90.5 50 51 0.612 0.300 0.337 0.416 88.3 53 0.642 0.224 0.361 0.409 86.7 56 0.6320.6370.557 0.2430.530 0.241 0.273 0.323 0.348 0.345 0.375 0.408 0.345 0.407 0.402 0.399 86.5 86.4 85.2 58 59 84.7 60 61 0.455 0.352 0.365 0.391 82.9 63 0.5510.514 0.239 0.309 0.362 0.320 0.384 0.381 81.5 80.8 65 66 0.503 0.206 0.341 0.350 74.3 69 0.4480.4120.3610.345 0.227 0.231 0.262 0.217 0.355 0.352 0.342 0.368 0.343 0.331 0.322 0.310 72.9 70.3 68.2 71 65.7 72 73 74 index expectancy attainment 1406 0.595 0.307 0.441 0.448 95.0 44 1184 0.557 0.357 0.413 0.442 93.8 46 1121 0.625 0.283 0.403 0.437 92.8 47 1009 0.669 0.246 0.386 0.434 92.0 48 1321 0.527 0.343 0.431 0.434 92.0 49 1175 0.524 0.337 0.411 0.424 90.0 52 1194 0.584 0.245 0.414 0.414 87.9 54 1075 0.559 0.274 0.396 0.410 87.0 55 1062 0.426 0.406 0.394 0.409 86.7 57 1802 0.496 0.204 0.483 0.394 83.6 62 1002 0.530 0.245 0.385 0.386 82.0 64 1279 0.459 0.229 0.425 0.371 78.7 67 1014 0.556 0.158 0.387 0.367 77.9 68 1104 0.430 0.212 0.401 0.348 73.8 70 1105 0.318 0.192 0.401 0.304 64.4 75 (PPP US$) GDP Per capita Mean years 44.737.8 2.14 2.49 994 43.146.5 2.55 2.13 954 35.8 2.00 31.2 1.71 43.4 2.40 39.434.841.5 2.13 2.06 2.73 969 880 37.831.0 2.15 1.74 754 34.3 2.05 28.152.1 1.64 2.63 871 30.330.135.440.5 1.8325.4 1.82 1.68 2.40 1.56 802 789 945 791 44.930.0 2.39 2.01 890 31.139.929.0 1.44 1.95 1.59 877 679 19.6 1.25 25.826.6 1.55 1.55 770 28.129.133.227.124.1 1.78 1.65 1.81 1.62 1.40 839 825 775 907 Adult literacy of schooling Life 60.71 58.39 62.53 65.16 60.81 63.38 60.02 50.57 63.20 58.39 56.79 54.75 56.79 58.05 52.52 58.37 55.18 50.82 51.90 at birth Expectancy Human development index by district, 2001 District DhanushaParsa 62.04 KhotangKailali 61.37 Kapilbastu Ramechhap Dadeldhura 56.62 Bardiya Siraha Darchula 56.43 PyuthanSindhupalchok 61.69 Dhading 58.55 RautahatDang 63.51 SarlahiMahottari Doti Salyan 62.95 Rasuwa BaitadiRukum 52.31 Rolpa DailekhDolpa 55.83 Humla Achham Jumla Jajarkot BajhangKalikotBajuraMugu 49.69 46.67 45.67 44.07 TABLE 2

143 Nepal=100 38.937.6 98 95 37.7 95 44.5 112 52.2 132 50.0 126 35.7 90 34.0 86 39.7 100 54.0 136 59.3 150 40.0 101 48.9 123 42.0 106 45.9 116 46.3 117 36.7 93 39.7 100 37.1 94 39.6 100 38.8 98 49.8 126 25.2 64 42.0 106 39.6 100 8.30 35.8 91 22.22 25.05 19.30 12.47 12.99 12.47 14.70 11.30 14.46 21.98 50.56 18.97 44.52 10.24 21.65 11.08 19.86 10.02 32.77 31.27 42.18 29.02 38.84 20.80 12.47 18.17 18.43 11.80 25.02 21.71 32.89 26.08 35.66 15.26 18.52 16.46 15.84 10.50 17.15 15.51 12.10 12.24 27.70 27.40 28.01 13.39 11.46 18.20 22.19 17.74 20.48 less than 40 year to safe water(HPI) index with life expectancy without access poverty Proportion of population Population Human Relative value rate Adult illiteracy 36.9 51.4 43.3 50.8 53.3 49.8 51.5 61.3 41.4 49.3 60.6 67.4 75.0 74.7 63.2 50.5 51.5 54.8 53.7 58.3 53.9 57.5 50.3 47.1 52.3 52.3 44.6 49.7 47.1 53.9 52.7 47.7 61.2 63.9 36.6 31.7 50.5 51.4 among children (under 5 years of age) Chronic malnourishment arai Human poverty index by region, 2001 arai arai arai estern T Far W Mid-western Tarai Western T Central T Eastern T Far Western hills 59.1 63.2 Mid-western hills 59.3 61.1 Western hills 47.9 45.4 Central hills 51.7 41.4 Eastern hills 48.7 49.3 Far Western mountain Mid-western mountain Western mountain Central mountain 60.7 65.6 Eastern mountain Far Western region Mid-western region Western region Central region Eastern region Tarai Hills Mountain Urban Rural 51.5 55.0 Region Nepal TABLE 3

144 Contd... Nepal=100 43.6 110 40 43.5 110 39 42.142.8 106 108 36 37 42.0 106 35 41.441.441.541.7 105 105 105 105 31 32 33 34 40.9 103 30 40.240.340.5 102 102 102 27 28 29 40.0 101 25 39.439.5 100 100 23 24 35.535.737.5 90 90 95 18 19 20 35.3 89 17 35.235.3 89 89 15 16 34.4 87 14 33.533.734.4 85 85 87 10 11 12 33.0 83 9 31.9 81 7 29.9 75 6 29.2 74 4 25.8 65 3 25.0 63 2 24.9 63 1 39.6 100 (HPI) index Human povertyvalue Relative Rank 5.70 43.2 109 38 5.79 40.2 101 26 9.70 38.4 97 22 6.64 37.9 96 21 5.03 34.4 87 13 6.10 32.2 81 8 37.36 27.30 38.82 23.59 24.39 19.71 11.05 11.44 without access 13.18 42.59 14.22 38.44 17.1617.88 35.75 13.33 30.87 31.3522.6918.24 50.15 15.66 28.66 16.35 12.99 10.8615.72 16.03 33.29 14.33 17.97 15.01 20.93 13.54 12.99 20.72 16.46 14.5013.4622.69 12.81 15.39 11.88 15.89 24.38 28.98 22.22 10.80 18.40 11.40 13.1012.9010.14 27.17 25.05 19.33 20.58 16.57 20.44 19.06 20.80 13.95 10.31 15.85 17.74 20.48 with life expectancy less Proportion of population Population Adult illiteracy rate 48.7 53.2 54.3 52.5 42.9 60.6 60.9 50.0 33.363.241.7 47.9 52.2 55.1 63.241.267.9 51.1 52.3 46.0 9.64 51.9 53.1 44.0 56.0 32.1 52.7 9.36 57.6 49.5 44.1 52.7 63.2 47.8 34.8 48.8 41.5 42.0 38.0 46.6 49.348.141.5 38.5 41.4 47.7 47.8 39.3 38.8 43.8 53.4 34.6 44.4 36.0 6.08 31.9 37.8 26.7 33.1 30.5 33.2 6.60 50.5 51.4 among children (under 5 years of age)year40 than to safe water Chronic malnourishment Human poverty index by district, 2001 Bhojpur Sahnhuwasawa KhotangBardiya 36.0 56.9 Panchthar Dang Mustang Gorkha Tanahu 63.0 45.6 8.50 Dhanusha 55.5 55.3 Myagdi Arghakanchi Terathum Nawalparasi Saptari KailaliUdayapur 43.2 53.5 Gulmi Taplejung BaglungLamjungManang 57.1 42.9 45.0 50.8 Parbat Makwanpur Syangja 52.0 42.5 9.61 Kanchanpur 43.6 46.4 Banke Ilam Dhankutta Morang Kavrepalachok 35.8 43.9 9.56 Palpa Sunsari Chitawan RupandehiBhaktapur 50.4 37.8 9.06 3.71 29.2 74 5 Jhapa Kathmandu 52.9 26.5 7.78 Lalitpur Kaski Nepal District TABLE 4

145 Rank Nepal=100 52.553.153.453.453.754.556.4 13356.857.2 13458.9 13559.2 135 61 59.9 13661.1 138 62 61.9 143 63 63.8 144 64 145 65 149 66 150 67 151 68 154 69 156 70 161 71 72 73 74 75 51.1 129 60 46.046.247.147.747.948.248.3 11648.5 11748.7 11949.850.6 120 48 121 49 122 50 122 123 51 123 52 126 53 128 54 55 56 57 58 45.8 116 47 45.4 115 45 44.6 113 44 (HPI) 43.844.0 111 111 41 42 index Human povertyvalue Relative 6.10 51.0 129 59 6.88 45.5 115 46 3.84 44.4 112 43 29.86 without access 21.3812.5620.9523.0125.6938.0731.0029.5436.70 37.90 25.13 27.86 32.57 53.13 40.30 36.84 28.68 15.21 20.96 35.38 26.01 51.02 54.54 55.69 56.42 44.83 63.82 35.80 24.27 65.22 18.87 18.52 23.2314.7020.7316.7723.0111.5215.7428.96 43.28 15.24 11.91 14.9314.56 20.66 32.55 34.59 45.00 19.21 46.63 13.37 14.39 11.64 23.46 17.99 23.49 28.76 15.54 46.38 14.4714.5718.01 16.47 19.04 with life expectancy less Proportion of population Population Adult illiteracy rate 58.859.260.056.374.158.8 68.9 60.8 64.6 68.8 74.6 74.2 72.9 90.0 73.4 71.9 74.2 75.9 71.0 80.4 52.3 60.1 62.2 69.0 52.343.462.160.060.8 65.2 48.055.5 65.7 59.5 57.7 55.1 69.7 69.9 50.4 63.3 52.9 58.5 66.4 43.7 61.347.3 57.5 62.2 among children (under 5 years of age)year40 than to safe water Chronic malnourishment Human poverty index by district, 2001 Rolpa RamechhapDoti RukumRasuwa Bajura Jumla 73.3Jajarkot KalikotAchham 58.8BajhangMugu Dolpa* Humla 68.8 74.2 70.0 70.0 66.8 70.9 Dailekh Sindhupalchok DadeldhuraSiraha Dhading PyuthanSalyan 50.0Sindhuli KapilbastuBaitadi Sarlahi Mahottari 55.5Rautahat 65.1 56.6 50.5 62.2 64.2 71.9 Okhaldhunga 60.7 58.3 7.91 Solukhumbu 54.5 61.0 Bara Darchula Surkhet Nuwakot DolakhaParsa 58.7 57.8 District TABLE 4

146 value Relative Nepal=100 Male 0.3450.319 0.485 0.468 0.452 0.430 100 95 0.959 0.952 0.403 0.582 0.562 124 0.967 0.370 0.430 0.363 80 0.941 0.395 0.482 0.498 110 0.973 0.317 0.481 0.450 100 0.943 0.328 0.472 0.475 105 0.962 0.370 0.519 0.467 103 0.953 0.378 0.459 0.477 105 0.971 0.332 0.421 0.385 85 0.959 0.359 0.429 0.377 83 0.933 0.3570.384 0.474 0.430 0.462 0.410 102 91 0.968 0.965 0.492 0.569 0.478 106 0.980 0.341 0.401 0.314 70 0.906 0.3430.339 0.4010.4300.373 0.4360.337 0.558 0.3190.350 0.452 0.386 0.4860.316 0.398 0.528 71 0.479 0.487 0.400 107 0.369 117 106 0.898 0.469 88 0.972 82 0.966 0.980 104 0.959 0.917 0.954 0.287 0.486 0.416 92 0.921 0.335 0.482 0.474 105 0.960 0.315 0.462 0.422 93 0.958 0.357 0.466 0.432 96 0.961 Female Estimated earned income GDI GDI/HDI Male Female Male emale Male F Life expectancyLife Adult literacy (Percent) Mean years of schooling 61.5 60.5 34.9 62.7 1.95 3.56 65.3 63.8 55.8 80.0 4.06 6.06 52.8 52.3 20.9 51.9 1.25 2.84 66.2 64.9 38.3 67.4 2.27 3.90 63.6 62.6 32.8 59.0 1.73 3.34 65.5 64.4 37.1 63.8 2.13 3.68 62.5 61.5 34.0 60.7 2.05 3.74 62.8 62.2 40.7 67.0 2.21 3.65 55.0 54.1 28.6 56.8 1.42 2.94 54.1 53.6 23.4 61.2 1.15 3.13 64.4 63.4 32.9 58.3 1.92 3.11 57.5 56.5 36.8 59.9 2.10 3.54 54.7 51.1 7.9 41.2 0.55 2.41 52.7 48.864.1 12.0 63.2 55.3 37.6 0.84 63.9 3.13 2.19 3.86 62.2 61.2 25.4 51.2 1.37 3.00 65.3 64.3 36.6 63.7 1.81 3.39 57.8 56.8 36.6 60.6 1.69 3.15 58.4 57.4 34.2 64.1 1.51 3.16 Female arai Gender-related development index by region, 2001 arai arai arai estern T Nepal RuralUrban 61.1 60.2 31.2 59.4 1.60 3.10 Region Mountain Hills Tarai Eastern region Central region Western region Mid-western region Far Western region Eastern mountain Central mountainWestern mountain 61.1 60.2 21.2 47.9 1.22 2.54 Mid-western mountain Far Western mountain Eastern hillsCentral hillsWestern hillsMid-western hillsFar Western hills 68.2Eastern T 64.3 60.7Central T 63.1 57.8 66.8 63.7 59.3 61.4 57.5 37.2 44.5 23.7 43.1 65.0 16.2 72.2 55.3 69.4 60.2 2.07 2.89 1.27 2.44 3.44 0.86 4.70 2.82 3.82 3.08 Western T Mid-western Tarai Far W TABLE 5

147 Contd... VALUE RELATIVE NEPAL=100 Male 0.340 0.461 0.451 100 0.966 36 0.354 0.431 0.453 100 0.966 35 0.301 0.375 0.457 101 0.979 34 0.338 0.424 0.457 101 0.968 33 0.330 0.415 0.461 102 0.959 32 0.386 0.493 0.462 102 0.965 31 0.338 0.496 0.463 102 0.966 30 0.393 0.417 0.463 102 0.982 29 0.376 0.471 0.466 103 0.967 28 0.352 0.474 0.467 103 0.972 27 0.432 0.526 0.468 104 0.978 26 0.495 0.562 0.470 104 0.976 25 0.355 0.430 0.472 104 0.975 24 0.336 0.415 0.474 105 0.971 23 0.368 0.425 0.475 105 0.976 22 0.368 0.448 0.478 106 0.983 21 0.325 0.504 0.478 106 0.957 20 0.397 0.454 0.48 106 0.976 19 0.364 0.447 0.481 106 0.979 18 0.353 0.481 0.482 107 0.974 17 0.371 0.456 0.486 107 0.975 16 0.381 0.452 0.492 109 0.976 15 0.328 0.452 0.493 109 0.972 14 0.517 0.580 0.495 109 0.986 13 0.340 0.478 0.504 111 0.963 12 0.391 0.530 0.505 112 0.975 11 0.363 0.527 0.511 113 0.963 10 0.363 0.457 0.513 113 0.984 9 0.384 0.441 0.516 114 0.984 8 0.341 0.501 0.518 115 0.969 7 0.329 0.498 0.527 117 0.965 6 0.389 0.511 0.527 117 0.970 5 0.395 0.568 0.569 126 0.968 4 0.401 0.527 0.578 128 0.975 3 0.402 0.543 0.578 128 0.972 2 0.479 0.650 0.635 140 0.974 1 0.345 0.485 0.452 100 0.959 Female Estimated earned income GDI GDI/HDI Rank Male Female Male emale 34.4 61.1 2.11 3.35 27.7 57.4 1.28 2.67 39.0 66.8 2.22 3.45 33.8 61.5 1.90 3.32 26.0 59.8 1.46 2.90 25.9 52.8 1.55 2.75 43.0 63.4 1.78 3.12 36.3 62.6 2.36 3.54 32.2 62.6 1.86 3.33 36.4 59.6 2.00 3.16 45.5 70.2 1.73 2.94 33.4 58.9 1.78 3.39 36.8 64.3 2.24 3.51 33.1 61.8 1.60 3.00 42.0 71.3 1.78 3.38 50.4 74.1 2.37 3.62 43.4 69.0 2.44 4.01 36.1 65.2 2.18 3.62 43.7 70.2 2.01 3.27 51.8 73.0 3.01 4.32 36.8 64.3 1.90 3.29 39.7 66.3 2.58 3.99 46.0 71.9 2.26 3.66 41.6 61.4 2.57 3.77 39.6 69.8 2.60 4.19 55.1 76.0 2.93 4.31 39.9 64.9 2.58 4.12 50.8 72.1 2.76 3.88 43.3 68.4 2.34 3.61 46.9 72.3 2.78 4.16 49.6 74.5 2.16 3.87 41.7 71.6 1.86 3.33 53.9 79.4 4.10 6.05 53.6 81.3 3.46 5.33 50.1 77.6 3.36 5.46 60.1 84.9 4.87 7.01 Male F Life expectancyLife Adult literacy (Percent) Mean years of schooling 62.48 61.46 67.15 65.04 66.54 63.23 69.71 69.14 66.07 65.84 64.52 62.92 56.55 55.02 57.26 56.85 68.26 67.85 63.57 61.89 60.50 58.86 63.03 60.78 64.29 62.87 58.88 58.16 67.63 65.69 65.04 66.48 67.78 66.85 66.55 63.04 69.84 67.82 69.55 65.99 69.16 67.47 67.93 66.36 71.55 71.16 61.5 60.5 34.9 62.7 1.95 3.56 Female Gender-related development index by district, 2001 Taplejung Sindhuli Gulmi Bhojpur 64.16 65.14 Okhaldhunga Solukhumbu Banke 61.01 59.82 Arghakhanchi 63.26 61.89 Nawalparasi Sankhuwasabha 64.84 62.80 Makwanpur Mustang Panchthar 64.92 64.16 Udayapur Surkhet Palpa Sunsari Lamjung 64.73 64.14 Baglung Jhapa Myagdi Parbat Dhankuta 66.91 63.04 Manang 57.26 56.85 Terhathum 67.85 67.75 Chitawan 59.64 57.99 Morang Ilam Tanahu Syangja Rupandehi Kavrepalanchok 70.56 68.20 Lalitpur Kaski 70.99 70.58 Bhaktapur Kathmandu 70.61 68.54 Nepal District TABLE 6

148 VALUE RELATIVE NEPAL=100 Male 0.370 0.427 0.263 58 0.867 75 0.258 0.397 0.274 61 0.851 74 0.348 0.386 0.277 61 0.893 73 0.332 0.372 0.289 64 0.872 72 0.328 0.354 0.314 69 0.897 71 0.374 0.423 0.316 70 0.910 70 0.332 0.375 0.328 73 0.955 69 0.362 0.407 0.337 75 0.919 68 0.388 0.456 0.341 75 0.920 67 0.312 0.403 0.357 79 0.930 66 0.307 0.332 0.358 79 0.939 65 0.347 0.382 0.361 80 0.923 64 0.312 0.434 0.364 81 0.942 63 0.345 0.400 0.368 81 0.916 62 0.194 0.418 0.368 81 0.902 61 0.416 0.526 0.376 83 0.955 60 0.226 0.413 0.377 83 0.925 59 0.330 0.359 0.382 85 0.957 58 0.266 0.418 0.384 85 0.940 57 0.304 0.454 0.388 86 0.949 56 0.228 0.433 0.388 86 0.910 55 0.387 0.433 0.394 87 0.929 54 0.331 0.445 0.394 87 0.961 53 0.384 0.470 0.396 88 0.914 52 0.322 0.353 0.399 88 0.958 51 0.409 0.419 0.401 89 0.969 50 0.278 0.471 0.407 90 0.931 49 0.298 0.433 0.411 91 0.959 48 0.364 0.407 0.414 92 0.956 47 0.244 0.453 0.416 92 0.927 46 0.240 0.444 0.416 92 0.918 45 0.327 0.594 0.420 93 0.903 44 0.300 0.433 0.425 94 0.944 43 0.328 0.416 0.425 94 0.962 42 0.368 0.447 0.428 95 0.967 41 0.292 0.513 0.429 95 0.959 40 0.352 0.486 0.442 98 0.954 39 0.390 0.444 0.445 98 0.979 38 0.345 0.472 0.445 98 0.960 37 0.345 0.485 0.452 100 0.959 Female Estimated earned income GDI GDI/HDI Rank Male Female 41.6 0.34 2.45 50.3 0.88 2.73 46.2 0.63 2.60 54.1 0.49 2.81 48.5 0.55 2.55 42.5 0.61 2.49 40.3 1.16 2.40 33.5 0.40 2.10 45.4 0.71 2.46 49.4 0.74 2.13 60.2 1.01 2.89 69.5 1.12 3.66 43.2 1.30 2.71 56.2 0.72 2.65 42.3 1.01 2.63 35.1 1.00 2.12 42.2 1.09 2.57 55.8 1.55 3.24 39.4 0.91 2.37 66.6 1.83 3.43 49.7 1.11 3.00 64.3 1.48 3.99 46.8 1.47 2.62 69.7 1.15 3.65 57.8 1.38 2.93 43.8 1.13 2.35 48.9 1.24 2.76 50.7 1.42 2.84 48.3 1.03 2.39 58.2 1.19 3.09 60.0 1.39 3.65 51.0 1.09 2.85 58.3 1.40 2.97 58.7 1.81 3.28 60.6 1.37 2.90 52.4 1.51 3.47 69.7 1.75 3.60 57.5 1.91 3.02 56.6 1.38 2.55 Male female Male Life expectancyLife Adult literacy (Percent) Mean years of schooling 55.40 55.00 7.6 50.47 51.17 9.3 52.98 50.91 15.2 58.68 58.11 4.8 52.92 52.17 11.7 58.19 57.95 14.9 57.76 55.90 16.3 56.75 59.99 15.2 64.92 61.60 16.8 54.16 55.35 14.3 57.76 55.90 24.5 51.33 49.87 38.3 64.00 62.82 19.2 61.22 58.91 18.5 63.26 61.87 22.1 62.18 59.53 28.0 65.42 64.94 16.9 63.21 63.08 27.6 61.56 59.95 21.3 58.78 58.06 32.3 62.23 59.29 31.6 60.22 60.81 34.8 61.564.34 60.5 62.87 34.9 28.9 62.7 1.95 3.56 Female Gender-related development index by district, 2001 Mugu 45.27 42.95 5.2 Kalikot 47.21 46.18 10.7 Bajura 46.24 45.16 9.0 Bajhang 51.09 48.39 7.8 Achham Jumla Jajarkot Humla Dolpa Rolpa Dailekh 56.87 54.88 21.4 Baitadi 52.89 51.79 23.3 Rukum Doti Mahottari Rasuwa Sarlahi 64.81 61.21 17.6 Salyan Rautahat 65.09 62.03 15.9 Dang Siraha Darchula 57.24 55.69 20.3 Dhading 59.87 57.32 22.7 Dadeldhura 56.14 57.12 20.6 Pyuthan 62.55 60.91 22.8 Sindhupalchok Kapilbastu Bardiya Ramechhap Dhanusha 63.80 60.41 30.2 Saptari Bara Dolakha 62.03 64.94 27.2 Khotang 61.25 61.53 29.0 Kailali Parsa Kanchanpur 57.81 57.03 37.2 Gorkha Nepal Nuwakot District TABLE 6

149 measure (GEM) nder empowerment income professional jobs administrative jobs in 19.33 18.75 12.71 0.302 0.391 18.1019.9018.6019.2020.3019.20 23.30 20.94 16.34 16.44 19.92 16.65 15.46 13.97 11.3418.80 13.2218.3018.40 12.5719.00 9.50 0.243 0.381 0.265 15.83 14.04 0.298 19.32 19.13 0.400 0.372 0.425 0.408 0.372 13.65 0.382 9.01 12.18 11.91 0.395 0.363 0.260 0.221 0.288 0.291 0.380 0.349 0.386 0.387 18.70 13.82 8.53 0.336 0.346 in local elections (%) Women's participationWomen's Women in Women inshare Women's Ge arai Gender empowerment measure by region, 2001 arai arai arai estern T Nepal RuralUrban MountainHills Tarai Eastern region Central regionWestern region Mid-western region Far Western region 19.40 19.80Eastern mountainCentral mountainWestern mountainMid-western mountain 19.00Far Western mountain 18.60Eastern hillsCentral hills 19.50Western hills 19.90 15.72 19.30 28.70Mid-western hills 14.26 19.00Far Western hillsEastern T 20.47Central T 19.30Western T Mid-western Tarai 19.70Far W 19.60 19.30 17.42 21.10 18.40 13.97 14.06 10.49 17.69 10.53 9.41 13.51 9.44 17.66 23.48 14.50 14.82 20.25 10.26 7.05 19.00 7.46 0.293 6.31 0.414 0.281 0.402 11.35 15.38 12.58 6.62 0.339 8.20 0.365 0.435 0.351 0.404 0.356 0.426 0.407 0.368 0.366 0.311 0.394 0.418 0.435 0.444 0.343 0.511 0.345 0.309 0.378 0.435 0.395 0.334 0.312 Region TABLE 7

150 Contd... HDI rank measure (GEM) Gender empowerment income Women in Women inshare Women's professional jobs administrative jobs in 19.3323.1719.6619.72 18.7521.0119.24 17.31 24.5122.53 27.1418.8321.15 22.39 12.7121.54 19.0819.84 21.68 15.22 17.6318.79 20.2319.81 13.23 20.3620.4717.60 18.33 0.302 21.7821.33 18.4620.07 20.8318.80 0.35820.04 20.26 0.253 18.3818.64 19.0120.49 17.64 0.292 20.4821.02 16.83 0.391 21.22 0.415 18.4819.59 14.05 0.490 18.2921.63 12.76 0.448 0.334 20.5421.52 17.1218.26 0.436 0.408 16.78 15.01 22.89 10.87 0.320 18.66 11.94 0.428 0.417 2 12.84 0.423 18.18 3 14.29 0.316 15.08 11.43 0.418 0.356 18.37 5 11.78 21.09 0.415 8.28 13.07 0.412 0.271 8 0.305 8.64 0.393 8.48 9 0.405 0.403 0.260 11 0.439 8.99 0.367 13 8.52 0.399 0.377 14 8.91 0.394 7.46 0.322 0.393 0.251 17 0.449 0.392 18 0.420 0.388 0.388 0.385 20 0.359 21 0.382 0.401 0.381 22 0.432 0.381 0.428 24 0.380 25 26 27 0.374 0.372 28 29 0.371 0.366 30 31 34 35 36 37 in local elections (%) Gender empowerment measure by district, 2001 Nepal ManangMustang Lalitpur KathmanduBhaktapur KaskiKalikotPalpa 37.10Taplejung 19.99KavrepalanchokMyagdi ChitawanJhapa 21.64 17.79Baglung 19.64BhojpurDhankuta 18.34Syangja Makwanpur 24.94 20.03BankeMorang 21.20Bardiya 19.65 14.49 20.14Okhaldhunga 21.38SankhuwasabhaRupandehi 15.02Gulmi 19.22Nawalparasi 21.11 16.18Kailali 19.42Rasuwa Sunsari Tanahu 15.02 22.00 13.31Surkhet 31.78Lamjung 12.10TerhathumIlam 0.383 22.29Dolpa Parbat 0.239 14.22 16.64Jajarkot 21.47 20.09 21.68 0.332 12.93 0.301 0.528 0.333 0.442 12.52 0.304 15.98 0.433 0.430 18.96 21.70 0.421 1 0.392 0.329 4 0.416 0.269 6 7 0.335 10 0.407 0.407 8.60 7.73 12 0.401 0.393 15 16 0.444 0.317 19 23 0.376 0.376 32 33 District Women's participation TABLE 8

151 HDI rank measure (GEM) Gender empowerment income 0.346 0.362 40 0.414 0.362 41 0.503 0.356 44 0.3510.1950.4530.389 0.356 0.354 0.348 0.345 45 46 49 50 0.319 0.344 51 0.3020.4560.320 0.344 0.338 0.337 52 53 54 0.272 0.331 55 0.4880.2170.159 0.331 0.327 0.326 56 57 58 0.2080.4570.2200.489 0.324 0.323 0.323 0.314 59 60 61 62 0.464 0.314 63 0.3840.460 0.314 0.311 64 65 0.4180.4190.382 0.308 0.306 0.306 66 67 68 0.449 0.304 69 0.4090.441 0.304 0.303 70 71 0.4740.3900.194 0.300 0.296 0.295 72 73 74 0.491 0.293 75 7.78 6.98 6.97 7.36 9.15 9.67 8.38 8.14 5.42 5.94 8.77 8.99 5.27 6.31 7.06 7.52 1.82 3.21 3.72 3.20 3.29 5.82 4.23 9.28 9.54 9.299.799.20 9.21 8.31 9.77 8.17 9.55 7.91 8.76 9.82 4.93 9.909.11 5.61 5.14 Women in Women inshare Women's professional jobs administrative jobs in 19.5318.05 15.32 16.65 10.59 11.61 0.324 0.293 0.365 0.362 38 39 19.85 16.72 17.77 16.42 11.23 0.229 0.362 42 19.88 16.36 17.4218.8719.0219.28 15.74 13.84 16.24 13.87 10.49 0.384 0.353 47 18.9719.30 16.02 11.31 19.65 13.78 18.80 18.48 12.11 18.90 19.17 19.15 18.80 11.88 18.08 18.34 14.57 17.89 in local elections (%) Gender empowerment measure by district, 2001 Nuwakot Dang Dhading 18.99 19.96 Jumla Kapilbastu PanchtharArghakhanchi 20.35 19.46 19.39 14.57 10.71 0.399 0.359 43 Solukhumbu Parsa Udayapur SarlahiGorkha Sindhuli Dolakha 18.91 20.43 11.51 13.13 10.77 0.232 0.349 48 Kanchanpur 18.51 18.00 Salyan Rukum Rautahat 18.08 11.08 Sindhupalchok Siraha Bara Dhanusha 18.26 11.39 BajhangSaptari Achham Baitadi 18.78 17.65 12.77 Khotang 19.70 15.89 Ramechhap Humla Doti Rolpa Bajura 18.71 14.06 Mugu 19.55 10.42 DarchulaDailekh 19.31 18.42 10.51 DadeldhuraMahottari Pyuthan 18.20 19.55 11.04 District Women's participation TABLE 8

152 actual 48.1 49.7 adjusted for 44.544.8 54.8 50.7 55.0 53.7 35.6 45.6 48.1 36.238.8 44.0 48.2 45.3 49.7 38.9 47.0 48.6 37.6 47.6 49.1 49.0 58.0 59.1 resent HDI comparable with the previous HDI, 1996 has been logical regions and districts. he HPI in 2001 drops marginally to 38.6. as to make the comparison possible. ping the proportion of population without health services. Making further GEM utilized women's and men's representation in parliament at the country transformation of income is used following the standard HDI methodology whereas comparison comparison comparison adjusted for actual adjusted for 0.471 0.403 0.325 39.6 38.6 0.402 0.354 0.276 46.3 0.491 0.428 0.350 36.7 0.493 0.417 0.339 37.1 0.478 0.423 0.344 39.6 0.5810.512 0.567 0.434 0.518 0.357 25.2 38.8 - - - HDI 2001 HDI 1996 HDI 1996 HPI 2001 HPI 2001 HPI 1996 HPI 1996 Changes in HDI and HPI over time Nepal Far Western region 0.404 0.364 0.286 45.9 Mid-western region Central regionWestern region 0.490 0.411 0.339 39.7 Eastern region Region Tarai RuralMountain 0.386 0.452 0.349 0.384 0.271 0.306 49.8 42.0 - - - Urban Hills Note: The calculation of income index in the present HDI is different from that 1996 HDI. In HDI, logarithmic in the previous 1996 HDI, income was not adjusted using such logarithmic method but only normalized. In order to make p recalculated using the logarithmic transformation method for calculation of income index. make the present estimate of HPI comparable with 1996 HPI, 1998 based on data has been recalculated by drop To adjustment in the 2001 HPI for malnourished children from 1-5 years to 1-3 make two reference points comparable, t As with HDI, the 1996 GDI value has been recalculated using logarithmic transformation method of computing income index so The 1996 representation in the parliament. GEM is also not directly comparable due to difference in the measurement of women’s level whereas in the present GEM percentage share of men and women local elections was used for development regions, eco TABLE 9

153

income in PPP $ PPP in income

Per capita Per

income in $ in income Per capita Per

(Rs. in Million) (Rs.

market prices market

incom Rs. at Rs. incom

Per capita Per Population

1473022 11898 161 879 23151423 17722 240 1310 1025111111212453 19263 16713 261 227 1424 1235

market prices market

GDP at GDP

added)

(Total value (Total

Total economy Total

social services social

Community and Community

real estate real

Finance and Finance

and storage and

Communication

Transport

hotels

restaurants and restaurants

Trade

Cunstruction

and Water and

Electricity gas Electricity

Manufacturing

quarrying

Mining and Mining

forestry

fisheries and fisheries Agriculture 4031 50 181 212 11104330 80 970 205 341 6 872 1836 559 1015 8327 8680 286 554817 1272 15646 764 212 9793 1157 10210 798931 12779 173 945 3694447676 26931982 99118782 35615674 7830 156 20862 1446 151 4368 392464422 1561 4706 1268 2004074526 875 1335 245 8135 10252 476 16858 122 13461 3227 16359 7284 9150 21223 2692 3477 4821 4084 26409 16025 5770 9525 3491 10626 2493 19336 2375311979 5137 8292 1390 166487 2232619223 15280 173561 127 430019523 83392 17125 800 5042 3492 86936 19369 8031629 247 1019 3045 74363 19540 10210 21610 5344476 27116 2021 77522 38629 1403 39 2263 189420 16266 9827 40271 293 30693 197468 4571013 15669 350 1436 179752 31997 3012975 1597 221 16960 187390 5628 8053 2191330 13366 2787 1202 230 14602 11036 5318 181 848 1254 198 8500 2588 988 2672 1079 20015 4983 95768 1638 99838 3372 22545 23503 3542732 43413 45257 28181 1643246 2793180 14303 382 16203 2083 194 220 1057 1198 151058 1923 35495 7004 39584 44572 33297 41634 38997 393564 410287 arai 9383 34 365 113 795 2014 962 1588 800 16053 16735 994596 16826 228 1244 Estimates of per capita income by region, 2001 arai 11245 106 2955 915 2448 3544 3115 3198 1537 29063 30297 1753265 17281 234 1277 arai 21189 128 6602 1401 2954 6560 6195 6112 3057 54197 56500 3299643 17123 232 1266 arai 24422 142 10470 1449 3261 7835 4982 6653 3179 62392 65043 3934080 16533 224 1222

estern T Region Nepal Central development region Western development region Mid-western development region Far Western development region MountainHills Western mountainMid-western mountainFar Western mountain 12110Eastern hills 113Central hills 2037Western hills 305 1962 811Mid-western hills 9 3 37 228Eastern T 105 2549Central T 305 10Western T Mid-western Tarai 4 2909 8458 3Far W 2 81 218 892 846 59 624 2726 456 8287 461 117 34 2054 100 66 143 24392 1840 67 25429 832 377 633 1992 1687859 206 103 464 15066 456 522 1169 133 3770 204 4846 1934 2373 3930 799 1114 5052 1871 1326 309084 833 397803 16812 12716 1989 12700 17526 24568 173 1254 172 33895 940 18048 939 460 18814 2505 1230869 15285 207 1130 Eastern development region Tarai Eastern mountainCentral mountain 3775 14Far Western hills 209 6 316 906 241 741 442 6651 6933 401587 17264 234 1276 TABLE 10

154

Contd...

income in PPP $ PPP in income Per capita Per

(Rs. in Million) (Rs.

income in $ in income

Per capita Per

market prices market

income Rs. at Rs. income

Per capita Per

Population

market prices market

GDP at GDP

(Total value added) value (Total Total economy Total

1935 2018 156702 12876 175 952

social services social

Community and Community

real estate real

Finance and Finance

and storage and

communnication

Transport

and hotels and

Trade restaurants Trade

Construction

gas and water and gas

Electricity

Manufacturing

quarrying

Mining and Mining

forestry

fisheries and fisheries Agriculture 12831094 5 42412 28 23 14 1 41672 105 1471495 103 258 14 9 725108 308 3306694 462964 50 495 233517 121 585 532752 194 22 1 10 737 180 14 244 2961 16 1551067 123 203 2517 2142388 665 185 130 492 449 328 291 202 540 2043 18 1223 28 57 498 2033 285 2130 1505 173 2059 3162001 44 69 134698 3311543 2119 1350 361 99 16313436 1312 4460 107686 440 11 840 340 15814 7 1760 776 11 4649 201 1282 1812 28 196792721 282806 209 215 409 91 573 6242214 216 1219 919 36 588 912 267 435 444 1169 164402679 307 533 3641 7 590 2864 903 25 1455 895 11628 0 17690 4698 68 223 3796 2986 141 169 159 71 12123 11211 18442 287689 528 170 251 1562 231385 622 688109 439 1215 843220 11688 475 10413 2046 307 625633 473 13196 35 322 1042 6949 12905 17617 2711 21871 6534 224 465 574 179 7244 18682 231 1082 233 175 6812 90 239 5741 297 498 570282 572399 535 975 253 366 954 1302 2557 710 1617 4737 1136 3817 12703 358 11900 1381 2666 270 4939 333 1369 16161 443 172 204229 305857 170 161 486 48267 3917 799 939 7866 13054 16147 880 50318 2780 4083 1081845 8200 321 177 534 219 279821 2899 385672 46511 212408 965 1194 4630 14593 9356 21262 631 13646 4827 9754 198 288 288478 3438 392604 185 1079 1572 16733 24843 1009 227 337 1237 1836

Estimates of per capita income by district, 2001 Region/district SankhuwasabhaSolukhumbu 1416Eastern hills PanchtharIlam 5DhankutaTerhathumBhojpur 1629 158Okhaldhunga 1175Udayapur 1095 1 6 967Eastern Tarai 1548 107 7Jhapa 5 89Morang 343 10Sunsari 5 52Saptari 50 1Siraha 74 39 96 10 146 0Central mountain Dolakha 159 302 1 341Sindhupalchok 1 108Rasuwa 332 228 107 189 228 79Central hills Sindhuli 204 95 321Ramechhap 2596 44 341Kavrepalanchok 588 2706Lalitpur 54 37 311Bhaktapur 159203 179 170Kathmandu 4Nuwakot 226 240 352 16999Dhading 2811 129 1253Makwanpur 1307 14 207 231 2380 2931 173 1829 202056 135 2481 1257 39 4 1907 2640 2274 166479 14504 113111 1857 2752 734 77 14904 36 197 203018 216 16861 137 132 1595 202 1072 13556 144 229 911 787 1102 40 184 1246 14 528 1115 1002 634 93 638 929 555 95 529 1138 267 1046 625 9026 508 1091 9410 5448 44731 337785 291 5679 225461 24379 27857 4723 331 25189 378 4924 338658 1802 2059 342 14539 1862 197 1075 Eastern mountain Taplejung Khotang TABLE 11

155

Contd...

income in PPP $ PPP in income Per capita Per 2466 1279 1014

(Rs. in Million) (Rs.

income in $ in income

Per capita Per

market prices market

income Rs. at Rs. income

Per capita Per

Population

market prices market

GDP at GDP

(Total value added) value (Total Total economy Total

1796 1873 114447 16362 222 1209 12821062 1336 1108 89427 105580 14942 10491 203 142 1104 775

social services social

Community and Community

real estate real

Finance and Finance

and storage and

communnication

Transport

and hotels and

Trade restaurants Trade

Construction

gas and water and gas

Electricity

Manufacturing

quarrying

Mining and Mining

forestry

fisheries and fisheries Agriculture 22792433 232944 25 207 2412491765 811226 1 59 141854 25 528 43 24 12 44 20 579 113 5673420 552 564190 2 133 5833638 31 165 717 25 2 327 53 571 31 208 27 449 274 1810 558 455 279 516 816 543 511 329 338 324 594 583 329 90 199 583 365 75 1232 4556 112 235 314 1171 415 279 633 1458 4750 4860 402 398 5490 288134 648 915 5066 361 2054 214 5724 315237 16484 222 996 358 317320 413 1577 3994 2499 16071 224 2925 4164 18037 4068 2605 402 626 776 268937 218 157826 1219 3049 4241 245 9567 296654 12485 268558 358 1188 15484 16504 1333 13015 9974 10279 708419 15792 210 562870 7014 224 139 214 7312 18373 1145 1220 17719 481976 760 1167 249 240 15171 1358 1310 206 1121 30722689 233234 1348803431 1238 13 332 16 138 21 361 39 525 5914 1124 297 39 1054 256 700 288 372 685 998 472 772 2186 430 1024 980 690 361 809 588 821 984 775 373 1148 8661 343 316 9029 5667 375 671364 15642 5908 6159 9072 13448 553481 16306 6420 559135 9458 545132 182 10674 497219 29163 11777 994 145 19021 396 160 789 258 2156 871 1406

Estimates of per capita income by district, 2001 Region/district LamjungTanahu Syangja KaskiMyagdi 1571Baglung Gulmi 14Palpa 2757Arghakhanchi 802 90Western Tarai 45Nawalparasi 1653 13Rupandehi 0Kapilbastu 533 18 43 329Mid-western Mountain 222Dolpa 358 44 5 1026 1015 307 59 4 1140 225 398 202 303 1058 341 39 2 227 632 68 222 2951 25 8428 329 3077 140 8786 1 177149 380527 201 37 17369 23088 3055 236 46 313 3185 1284 208391 1707 11 15281 63 207 105 1130 490 511 29545 17296 235 Western hills Gorkha Parbat JumlaKalikotMuguHumla 756 714 332 225 2 2 2 2 37 1 12 30 1 2 0 56 0 41 40 174 43 149 69 54 36 7 19 114 27 52 72 105 78 96 83 76 630 534 657 557 43937 40595 14948 13724 203 186 1105 Mahottari SarlahiRautahat Bara Parsa Chitawan 2990Western mountain ManangMustang 24 4068 361 33 145 179 48 1140 559 1 229 2 731 747 5 5 1415 483 1 1200 2 884 24 1028 35 536 59 647 62 6616 10507 16 6897 51 10953 635701 472048 46 57 10850 23204 45 147 88 315 802 1715 342 479 356 500 9587 14981 37153 33365 504 453 2746 Central Tarai Central Dhanusha TABLE 11

156

income in PPP $ PPP in income Per capita Per

(Rs. in Million) (Rs.

INCOME IN $ IN INCOME

PER CAPITA PER

market prices market

income Rs. at Rs. income

Per capita Per

Population

market prices market

GDP at GDP

(Total value added) value (Total Total economy Total

1789 1865 1670262312 11167 2410 231285 152 10421 825 141 770

social services social

Community and Community

real estate real

Finance and Finance

and storage and

communnication

Transport

and hotels and

Trade restaurants Trade

Construction

gas and water and gas

Electricity

Manufacturing

quarrying

Mining and Mining

forestry

fisheries and fisheries Agriculture 111213371471 121847 10 4 225 17 922852 26 1 114 12804 262 34 3 23 220 281 11 403 81 198 292 526 57 293 74 42 29 306 432 23 278 161039 2811125 871 265 404 162 178 20 615 189 774 12 4325436 2389 119 833948 238 2449 692 46 2491 4074 18 210004 2190 2554 2 16 526 4247 188438 478 0 2283 288527 258 11861 469 213500 107 275 260 13551 6374 14721 65 255 161 10694 48 270 6645 184 4814 425 877 200 462380 88 369 145 1002 5019 68 1193 1088 382649 14371 822 791 364 568 212 13115 195 394 218 1040 1062 155 178 548 2538 969 472 2163 2646 328 2255 9477 207066 126162 6579 9879 12779 616697 17870 6858 377899 173 16020 242 945 18148 1321 217 246 1184 1341

Estimates of per capita income by district, 2001 Region/district Rukum Salyan Surkhet DailekhJajarkotMid-western Tarai Dang Banke 854Bardiya 687Far Western mountain 16Bajura 12Bajhang 2633 62 55 20 1 545 1 727Dadeldhura 560 360 262Baitadi 9 13 141 202Far Western Tarai 141Kailali 472 80Kanchanpur 89 45 13 1113 888 1 1 289 184 860 26 199 309 156 114 771 58 127 169 1986 1469 516 1 30 61 2070 1531 601 225201 6861 134868 183 248 274 7152 9192 11351 385840 107 173 77 125 154 18537 1280 679 839 323 1335 252 108781 1370 235 12271 2709 167 2824 907 234418 12046 163 890 Mid-western hills PyuthanRolpa 1004 11 51 5 253DarchulaFar Western hills 229AchhamDoti 56 760 318 15 993 136 154 21 1 2079 18 2168 338 212484 2 179 10202 492 52 138 206 203 754 52 176 373 1861 156 1940 121996 15901 216 1175 TABLE 11

157 Nepal = 100 Human Relative value index (HEI) Political Economic INDICES

0.3970.2940.3340.458 0.439 0.368 0.381 0.353 0.719 0.721 0.583 0.635 0.519 0.461 0.433 0.482 112 100 93 104 0.4060.6040.4760.3620.398 0.3370.4680.330 0.518 0.310 0.392 0.369 0.646 0.317 0.247 0.737 0.568 0.674 0.691 0.463 0.599 0.620 0.602 0.451 0.476 0.486 100 0.461 134 0.393 97 103 105 100 85 0.409 0.405 0.360 0.392 85 Social index index index empowerment empowerment empowerment empowerment EMPOWERMENT

UMAN arai Human empowerment index by region, 2001 2.2: H arai arai arai estern T NNEX Region Central T Western T Mid-western Tarai Far W Nepal Urban RuralMountainHills Tarai Eastern region Central regionWestern region Mid-western region Far Western regionEastern mountainCentral mountainWestern mountain 0.315 0.372Mid-western mountainFar Western mountain 0.413Eastern hills 0.347Central hillsWestern hillsMid-western hills 0.364Far Western hills 0.409 0.137 0.483 0.236 0.304 0.243Eastern T 0.383 0.268 0.420 0.549 0.297 0.283 0.537 0.310 0.296 0.161 0.480 0.526 0.642 0.149 0.695 0.582 0.263 0.420 0.581 0.187 0.287 0.789 0.199 0.759 0.359 0.763 0.439 0.829 0.497 0.399 0.663 0.409 0.642 0.346 0.546 78 0.498 0.465 0.352 95 0.575 0.407 107 86 0.449 88 0.537 0.276 108 0.456 76 124 0.324 88 97 116 60 99 70 A TABLE 1

158 Contd... Nepal =100 Relative Valuerank HEI index (HEI) Overall human index Political index Economic 0.4060.7520.6140.451 0.3370.482 0.5150.554 0.4990.438 0.5060.425 0.6460.362 0.457 0.7050.613 0.337 0.8230.296 0.440 0.9190.330 0.4490.314 0.4630.412 0.392 0.7950.626 0.398 0.6570.389 0.7750.409 0.343 0.645 0.7850.643 0.385 0.625 0.7890.239 0.4280.520 100 0.278 0.8430.205 0.273 0.578 0.5650.371 142 0.3460.331 0.403 0.556 0.8750.384 139 0.287 0.555 0.791 135 0.361 0.554 0.758 0.500 0.800 0.444 0.532 0.579 125 2 0.331 0.525 0.727 0.362 0.647 120 4 0.269 0.505 0.507 120 5 0.502 0.833 120 0.500 0.406 0.497 0.768 115 8 0.493 0.699 113 0.487 0.707 10 0.486 0.724 109 11 0.479 108 12 0.478 108 0.475 107 15 0.472 106 16 0.467 105 0.467 105 18 0.459 103 19 103 20 103 21 102 22 101 23 101 24 99 25 26 27 29 33 31 32 index empowerment empowerment empowerment empowerment Human empowerment index by district, 2001 DistrictNepal KathmanduLalitpur KaskiBhaktapur Morang Social ChitawanBankeJhapa Dhankuta 0.710Dang Rupandehi Sunsari Kanchanpur 0.777TerhathumNawalparasi Parbat 0.521 0.629KavrepalanchokBardiya 0.437Saptari 0.596Parsa 0.548Ilam 0.430Tanahu 0.531 0.509Nuwakot 0.643Kailali 0.517 0.454Syangja 0.374Kapilbastu Mustang 0.644Dhanusha 0.433Bara 0.406 0.722Makwanpur Sindhupalchok 0.660 0.388Surkhet 0.847 0.712 0.656 0.800 0.704 0.591 0.298 143 0.626 0.579 0.561 142 0.554 0.539 128 0.350 1 0.510 125 121 3 120 6 116 0.778 110 7 9 13 14 0.475 17 103 28 TABLE 2

159 HEI rank Nepal =100 Relative value index (HEI) Overall human empowerment index Political empowerment index Economic empowerment index Social 0.5120.3880.2160.273 0.292 0.3440.2380.346 0.3980.413 0.3830.423 0.5690.483 0.303 0.6400.378 0.3140.334 0.720 0.280 0.226 0.661 0.4580.2430.368 0.212 0.457 0.217 0.721 0.217 0.600 0.4450.3430.385 0.565 0.439 0.5910.293 99 0.2330.193 0.2230.247 99 0.468 0.421 0.557 0.420 96 0.209 0.601 0.100 0.4190.061 95 0.4140.139 0.171 34 0.164 0.5680.210 0.174 0.418 36 0.3880.228 91 0.3840.184 91 38 0.384 0.449 91 0.220 0.506 40 89 0.141 0.452 0.348 0.185 0.554 0.336 84 0.161 0.421 44 83 0.119 45 83 0.334 47 0.330 0.512 48 0.485 0.305 75 0.304 73 0.293 51 0.281 0.146 52 0.128 53 72 71 0.264 0.255 66 57 66 58 0.229 61 0.178 0.144 61 62 57 55 64 65 50 66 39 31 70 71 73 74 75 empowerment Human empowerment index by district, 2001 District ArghakhanchiOkhaldhunga SankhuwasabhaUdayapur DolakhaSiraha PanchtharRasuwa Sarlahi 0.464Lamjung 0.481DhadingMahottari Solukhumbu DadeldhuraPalpa 0.549Baglung 0.322 0.254Pyuthan 0.333RautahatMyagdi 0.213 0.463Gulmi 0.318Taplejung Bhojpur 0.277 0.373Manang 0.203Khotang 0.658Ramechhap 0.558Salyan 0.309 0.373Dailekh 0.295 0.244Darchula 0.262Gorkha Sindhuli 0.394 0.546Baitadi 0.801Achham 0.349 0.459Jumla 0.429 0.457 0.343Jajarkot 0.295 0.760 0.310Bajhang 0.523Bajura 0.700Kalikot 0.246 0.279 0.457Humla 0.491Dolpa 0.442 0.190 99Mugu 0.550 99Doti 0.216 0.355Rukum 0.561 0.427 0.427Rolpa 0.641 0.427 0.124 0.183 0.228 99 0.419 96 0.218 33 0.531 0.218 35 0.088 0.216 0.508 92 0.410 92 0.398 0.050 92 0.195 0.636 37 0.540 91 0.142 39 0.158 0.357 0.356 0.356 0.356 41 88 42 86 0.214 43 0.335 0.418 46 0.334 0.479 77 0.444 77 77 0.309 49 50 0.483 72 72 0.280 0.279 54 0.273 55 67 56 0.249 59 60 60 60 59 63 54 67 68 69 72 TABLE 2

160

Nepal = 100 = Nepal

Relative value Relative

index

empowerment

Social

outreach index outreach

mobilization

Social

media index media

Communication

capability index capability

Average health Average

attainment index attainment Educational

0.852 0.825 0.732 0.000 0.604 149 0.076 0.295 0.164 0.011 0.137 34

covered)

(% of households of (%

outreach mobilization

0.00 0.96 Social

telephone service telephone

households with households

Proportion of Proportion

radio

households with households

Proportion of Proportion

(%)

access to sanitation to access

Population with Population

(stunting)

children under 5 under children

% Malnourished %

61.19 39.95 53.88 0.50 30.66 0.227 0.419 0.244 0.358 0.315 78 53.86 22.63 54.46 1.05 29.73 0.268 0.402 0.260 0.348 0.330 81 51.46 53.40 59.13 0.80 22.88 0.355 0.515 0.301 0.267 0.364 90 75.00 31.15 45.57 0.59 60.60 14.27 43.42 0.24 30.71 0.198 0.279 0.136 0.359 0.243 60 53.26 28.34 40.33 3.12 26.82 0.363 0.433 0.161 0.314 0.334 82

mortality Infant

68.51 50.51 39.22 52.59 3.91 28.75 0.383 0.563 0.297 0.336 0.406 100 51.7170.32 36.62 51.51 77.06 32.05 64.84 50.27 20.24 0.82 34.00 0.299 0.525 0.214 0.398 0.372 92 47.32 52.70 51.09 62.53 5.77 27.92 0.467 0.646 0.430 0.326 0.476 117 59.76 47.13 27.15 42.39 2.54 29.31 0.328 0.552 0.170 0.343 0.362 89 61.37 44.56 39.77 48.95 2.26 24.82 0.424 0.612 0.229 0.290 0.398 98 63.51 52.31 43.51 52.91 7.61 22.67 0.392 0.582 0.371 0.265 0.413 102 58.91 50.33 48.53 57.34 2.34 38.29 0.446 0.623 0.313 0.448 0.468 115 84.44 53.68 20.29 47.60 1.01 39.47 0.252 0.435 0.192 0.461 0.347 85 70.20 60.71 49.49 59.14 0.42 50.55 0.186 0.547 0.294 0.591 0.409 101 92.84 66.20 38.73 57.94 0.66 66.34 0.442 0.424 0.287 0.776 0.483 119 39.0043.0139.87 48.6973.45 51.7085.50 47.88 48.65 59.29 63.0555.74 59.11 58.88 55.09 19.97 41.38 68.14 19.60 65.98 0.75 57.88 33.58 14.08 45.59 1.96 0.50 44.58 25.38 0.39 17.84 43.86 3.20 17.98 0.423 0.595 37.76 0.497 24.77 0.676 0.236 0.709 0.201 0.719 0.260 0.429 0.434 0.646 0.401 0.391 0.297 0.209 0.283 0.420 0.617 0.160 0.513 0.549 103 0.210 0.537 135 0.204 0.441 0.297 132 0.310 73 0.290 76 0.397 98 53.75 51.52 22.45 36.25 2.07 23.45 0.225 0.523 0.101 0.274 0.294 72 64.85 36.95 24.39 51.89 1.75 51.81 0.330 0.583 0.248 0.606 0.458 113 97.17 43.33 23.57 51.31 1.92 45.00 0.314 0.474 0.246 0.526 0.409 101

schooling

Mean years of years Mean

(15+) Adult literacy Adult 48.6 2.75 68.3 5.06 50.3 2.05 109.19 47.7 3.09 52.9 2.54 42.5 2.90 41.7 2.89 36.1 2.93 52.3 2.18 103.05 46.1 2.14 45.2 2.51 113.33 49.5 2.82 25.3 1.48 116.53 32.6 1.99 127.39 50.7 3.03 38.7 2.18 50.2 2.60 100.81 48.6 2.42 49.2 2.34 arai Social empowerment index by region, 2001 arai arai arai

estern T Region Nepal Urban RuralMountain 45.0 2.35 Hills Tarai Eastern region Central region Western region Mid-western region Far Western region Eastern mountain Central mountainWestern mountain 34.4 1.88 Mid-western mountain Far Western mountain Eastern hillsCentral hillsWestern hillsMid-western hillsFar Western hills 50.7 58.6 38.9 54.6Eastern T 2.75 36.8Central T 3.79 2.05 3.13 1.97 Western T Mid-western Tarai Far W TABLE 3

161

Nepal = 100 = Nepal Relative value Relative

Contd...

index

empowerment

Social

outreach index outreach

mobilization

Social

media index media

Communication

capability index capability

Average health Average

attainment index attainment Educational

0.413 0.641 0.262 0.017 0.334 82 0.452 0.617 0.199 0.018 0.322 79 0.557 0.738 0.265 0.037 0.412 101 0.395 0.650 0.349 0.000 0.349 86 0.170 0.459 0.062 0.116 0.216 53 1.000 0.847 0.978 0.014 0.710 175 0.181 0.460 0.032 0.090 0.205 50

covered)

(% of households of (%

Outreach

Social mobilization Social 1.45 1.55 3.13 0.00 9.90 1.22 7.73

telephone service telephone

households with households

Proportion of Proportion

radio

households with households

Proportion of Proportion

sanitation(%)

access to access

Population with Population

(stunting)

children under 5 under children

% Malnourished % 60.00 31.51 40.34 1.10 40.32 0.086 0.410 0.122 0.471 0.273 67

mortality Infant

68.51 50.51 39.22 52.59 3.91 28.75 0.383 0.563 0.297 0.336 0.406 100 63.52 44.12 47.49 55.72 0.51 55.0044.94 54.29 54.55 57.44 54.41 61.31 59.92 0.99 0.85 47.25 12.39 0.362 0.274 0.646 0.655 0.326 0.310 0.552 0.145 0.481 0.346 118 85 51.40 60.87 56.85 49.35 0.47 50.91 49.25 71.39 54.83 1.10 50.20 48.15 53.32 65.84 1.65 67.19 0.476 0.673 0.383 0.785 0.596 147 37.36 67.86 53.07 63.71 1.15 45.97 0.545 0.596 0.353 0.537 0.509 125 50.5831.0366.08 48.68 60.71 35.96 48.67 56.67 36.18 65.27 58.26 52.71 0.18 0.85 0.45 67.34 13.09 0.302 0.354 0.663 0.633 0.294 0.231 0.787 0.153 0.512 0.343 126 85 36.37 32.14 19.65 41.62 0.51 34.81 0.326 0.653 0.123 0.407 0.388 96 80.74 31.88 55.51 49.87 2.66 28.35 0.616 0.699 0.246 0.331 0.482 119 39.38 41.54 41.81 49.17 4.04 27.80 0.525 0.685 0.266 0.325 0.451 111 64.11 38.81 39.25 46.11 4.56 22.99 0.489 0.635 0.246 0.269 0.425 105 57.72 44.00 9.81 36.23 1.06 31.90 0.274 0.504 0.081 0.373 0.330 81 56.6955.66 52.35 58.73 9.04 61.14 34.60 64.83 0.92 0.38 76.93 0.258 0.636 0.349 0.899 0.549 135 73.18 62.22 44.67 58.29 0.34 31.70 0.157 0.513 0.284 0.371 0.331 82 44.7148.43 60.0037.46 73.33 15.93 35.85 34.36 49.68 44.80 52.76 65.84 0.20 0.08 2.22 49.81 10.44 39.40 0.214 0.156 0.377 0.473 0.468 0.197 0.732 0.224 0.582 0.394 0.385 0.122 0.461 95 0.243 0.517 60 127 40.12 26.67 81.42 80.94 25.90 20.64 0.844 0.921 1.000 0.241 0.752 185 24.0130.65 44.44 52.87 83.16 92.30 74.34 80.28 13.57 25.08 11.84 0.734 0.870 0.697 0.138 0.614 151 55.85 61.29 37.93 55.63 0.92 40.20 0.211 0.529 0.269 0.470 0.389 96 80.77 43.37 43.00 57.78 0.19 15.91 0.220 0.588 0.276 0.186 0.318 78 95.7963.46 41.51 55.50 39.26 16.03 53.07 35.86 2.42 2.11 16.33 26.76 0.330 0.198 0.550 0.455 0.273 0.098 0.191 0.313 0.371 0.298 91 73 57.96 55.50 13.36 33.92 0.51 24.77 0.127 0.457 0.048 0.290 0.238 59 59.2156.46 48.00 50.47 12.88 13.12 33.81 35.74 0.48 0.49 13.07 26.04 0.131 0.087 0.491 0.486 0.046 0.065 0.153 0.304 0.213 0.244 52 60 69.58 50.39 14.06 30.99 1.19 69.88 47.30 24.17 35.75 4.75 24.79 0.303 0.517 0.147 0.290 0.314 77 79.41 53.42 66.58 47.87 5.53 42.17 0.611 0.633 0.282 0.493 0.521 128

schooling

Mean years of years Mean Adult literacy (15+) literacy Adult 48.6 2.75 47.3 2.73 47.5 2.58 50.0 2.87 61.5 3.32 58.6 2.96 54.0 3.40 46.8 2.61 47.3 2.30 62.2 3.67 52.3 3.35 56.2 3.23 44.0 2.52 34.8 2.06 31.0 1.74 25.4 1.56 101.03 42.3 1.98 66.9 5.07 64.0 4.41 42.5 1.97 34.3 2.05 58.0 2.33 30.1 1.82 30.3 1.83 36.7 1.97 37.8 2.49 65.4 3.62

Social empowerment index by district, 2001 District Nepal Taplejung Sankhuwasabha SolukhumbuPanchthar 39.0 2.15 Ilam Dhankuta Terhathum Bhojpur OkhaldhungaKhotangUdayapur 41.7 2.18 43.1 2.55 Jhapa Morang Sunsari Saptari Siraha DolakhaSindhupalchok 42.2 2.19 Rasuwa Sindhuli RamechhapKavrepalanchokLalitpur 56.1 31.2 2.60 1.71 Bhaktapur KathmanduNuwakot 73.5 5.94 Dhading Makwanpur DhanushaMahottari 44.7 2.14 Sarlahi RautahatBara 28.1 1.64 Parsa Chitawan TABLE 4

162

Nepal = 100 = Nepal

Relative value Relative

index

empowerment

Social

outreach index outreach

mobilization

Social

media Index media

Communication

capability index capability

Average health Average

attainment index attainment Educational

0.0960.1840.058 0.363 0.2480.000 0.133 0.2740.126 0.242 0.4380.177 0.008 0.039 0.368 0.000 0.378 0.000 0.193 0.000 0.218 48 0.214 0.050 0.000 54 0.313 12 0.061 0.029 0.043 15 0.184 0.228 45 56 0.151 0.414 0.162 0.072 0.210 52 0.318 0.630 0.272 0.1080.453 0.3430.498 85 0.645 0.638 0.311 0.3640.123 0.101 0.083 0.233 0.378 0.413 93 102 0.199 0.000 0.139 34

covered)

(% of households of (%

outreach

Social mobilization Social 3.34 0.00 0.00 0.00 2.44 3.69 6.13 9.23 8.61 7.08 0.00

telephone service telephone

households with households

Proportion of Proportion

Radio

Households with Households

Proportion of Proportion

sanitation(%)

access to access

Population with Population

(stunting)

children under 5 under children

% Malnourished % 74.0774.1968.75 51.73 39.24 14.22 56.50 65.70 30.85 0.75 4.54 0.02 58.8033.33 18.56 23.2856.2570.00 61.55 58.44 19.76 10.68 0.03 1.63 41.4660.78 37.90 18.63 0.17 85.50 19.48 0.08 0.135 47.01 34.10 0.376 42.76 0.325 0.459 0.25 0.109 0.310 0.130 0.310 0.249 48.69 0.218 0.202 1.000 0.247 0.115 0.554 61 0.079 0.297 136 0.399 0.500 0.324 0.218 0.228 54 56 0.171 0.569 0.355 87 74.20 13.66 50.18 0.05

mortality Infant

81.3764.82 90.0083.00 55.4590.04 58.8090.04 58.80 18.12 62.0760.03 21.1795.43 9.45 66.40 30.07 15.90 52.29 48.01 28.8071.17 51.82 61.76 35.52 0.00 38.0069.33 73.74 11.27 0.48 42.86 68.80 0.02 0.07 92.00 50.20 24.06 0.1598.83 48.69 52.94 26.28 1.67 60.7880.92 44.02 0.2490.51 26.48 59.18 51.72 14.34 50.00 0.26381.25 14.95 13.45 2.8986.57 11.87 43.21 52.64 20.30 0.473 0.62 43.59 0.315 44.22 27.98 47.27 0.392 45.11 21.91 0.413 0.186 0.51 0.211 46.50 26.18 0.13 11.29 0.483 0.569 52.66 0.382 0.73 0.432 0.312 49.19 0.58 10.74 0.373 50.88 0.413 0.291 0.310 92 0.562 1.83 0.202 2.06 0.368 0.157 0.550 43.14 0.359 0.139 91 0.193 0.089 0.384 45.44 0.246 95 0.398 44.31 0.225 0.553 61 0.344 0.304 0.437 0.132 0.232 0.269 108 0.472 0.142 0.385 0.296 0.126 73 0.504 0.595 0.507 0.173 0.279 0.293 69 0.257 0.504 72 0.228 0.373 0.531 0.518 92 0.409 0.430 101 106 88.4688.46 63.2070.33 63.2051.84 41.6733.43 42.86 35.70 62.9637.83 40.3926.02 45.43 52.0442.22 65.32 54.36 30.5145.63 53.90 50.89 63.1655.96 56.56 34.78 64.13 58.10 0.68 57.1450.45 66.03 82.17 0.6574.96 50.95 0.59 57.6560.68 72.02 67.05 0.74 47.8355.35 75.86 59.32 1.12 35.15 41.1835.43 56.53 83.27 51.90 68.27 59.12 0.80 50.4160.74 62.77 58.13 4.85 30.08 45.48 85.54 0.60 65.06 0.504 61.00 32.03 0.25 0.401 64.60 34.74 0.44 73.30 65.26 0.438 73.16 0.448 40.08 13.03 0.457 0.37 55.00 0.478 43.84 64.40 1.26 0.701 0.36 21.39 0.359 0.557 35.00 0.622 0.99 0.247 0.750 6.33 0.412 0.411 0.699 0.349 0.507 0.973 0.935 34.63 0.375 0.82 0.410 0.429 0.602 32.21 0.520 0.352 106 0.808 25.02 0.428 1.000 128 0.637 0.544 0.463 22.44 0.272 0.439 0.626 0.857 114 0.380 0.394 0.855 154 0.330 0.447 0.643 0.643 0.655 0.777 0.753 158 0.556 0.201 0.483 0.250 191 0.619 0.613 119 0.353 0.423 151 0.399 0.118 104 0.258 0.405 0.377 0.064 0.464 0.292 0.362 114 0.438 0.262 89 108 0.239 59

schooling

Mean years of years Mean Adult literacy (15+) literacy Adult 24.119.6 1.4031.1 1.25 173.83 40.5 1.44 56.3 2.40 39.928.1 2.58 52.1 1.95 53.4 1.78 2.6339.4 2.45 27.1 118.82 127.17 2.13 41.5 1.6225.8 2.73 35.4 161.23 1.55 44.9 1.68 2.39 116.10 52.247.844.9 3.17 2.58 2.46 66.848.951.2 4.40 2.59 3.28 50.560.747.7 2.84 46.9 2.99 2.95 2.60 26.6 1.55 125.10

Social empowerment index by district, 2001 District KalikotMugu Humla PyuthanRolpa Rukum 33.2Salyan Surkhet 1.81Dailekh 37.8Jajarkot Dang 153.89 30.0Banke 2.15 Bardiya 2.01 Bajura BajhangDarchula Achham Doti DadeldhuraBaitadi 29.1KailaliKanchanpur 1.65 43.4 133.32 2.40 53.6 46.5 2.67 2.13 Manang Mustang Gorkha LamjungTanahuSyangjaKaski Myagdi Parbat 49.2Baglung 54.4Gulmi 2.90 57.5Palpa 2.98 Arghakhanchi Nawalparasi 3.47 Rupandehi 55KapilbastuDolpaJumla 2.64 62.2 35.8 3.01 29.0 2.00 1.59 114.75 TABLE 4

163

Nepal = 100 = Nepal

Relative value Relative

index

empowerment

Economic

income index income

status index status

Employment

Credit index Credit

land index land

Gini corrected Gini

index

Electrification

at PPP $ PPP at Per capita GDP capita Per

1162 0.216 0.561 0.342 0.2281157 0.273 0.175 0.304 0.545 0.320 90 0.168 0.173 0.296 88 10572083 0.1091198 0.624 0.316 0.777 0.317 0.405 0.203 0.157 0.306 0.088 0.491 0.218 0.137 0.509 0.188 0.263 0.420 0.287 78 125 85

agricultural jobs agricultural

employed in non- in employed

labour force labour

Proportion of Proportion 71.74 2224 0.852 0.283 0.000 0.89515.26 0.560 940 0.518 0.115 0.506 154 0.014 0.076 0.094 0.161 48 22.47 879 0.099 0.437 0.143 0.181 0.073 0.187 55

institutional credit institutional

access to access

household with household

Proportion of Proportion 0.00 0.96 9.83

size (ha) size

average land average

Gini corrected Gini

(Gini coefficient) (Gini Land inequality Land

0.484 0.237 10.21 17.400.467 0.235 939 23.40 0.058 18.83 0.336 945 0.149 0.096 0.332 0.107 0.341 0.094 0.149 0.128 0.096 44 0.199 59

households

electrified Proportion of Proportion 31.0882.53 0.544 0.337 0.642 19.85 0.211 31.33 1310 0.317 0.540 0.289 0.309 0.229 0.337 100 34.2530.01 0.48924.15 0.569 0.28632.55 0.418 0.51615.69 14.98 25.74 0.469 0.518 29.09 0.505 21.99 35.81 0.308 0.331 21.72 29.51 1424 13.65 12356.14 27.14 0.350 26.56 0.306 1202 0.245 1254 0.436 988 0.704 0.332 0.218 0.808 0.157 0.375 0.481 0.320 0.277 0.528 0.374 0.316 0.199 0.270 0.283 0.202 0.249 0.310 0.190 0.240 0.392 0.208 0.369 92 0.112 116 0.317 0.247 110 94 73 32.3730.8135.12 0.53422.60 0.56917.64 0.484 0.532 0.364 0.512 26.73 0.415 0.601 23.36 0.422 23.07 39.50 0.427 21.92 37.10 42.25 30.51 33.72 1266 31.28 1222 0.330 1277 0.314 1130 0.359 1244 0.229 0.838 0.177 0.595 0.698 0.389 0.712 0.340 0.721 0.336 0.319 0.428 0.615 0.393 0.297 0.213 0.344 0.197 0.308 0.217 0.439 0.163 0.368 0.205 0.381 0.353 131 0.405 109 113 105 120 arai Economic empowerment index by region, 2001 arai arai arai

estern T Region Nepal Urban RuralMountainHills Tarai Eastern region Central regionWestern region 16.64 21.34Mid-western region Far Western region 0.484 0.536 44.62Eastern mountainCentral mountain 12.45 0.335 0.348Western mountain 0.562Mid-western mountain 14.06 23.52 0.594 11.17Far Western mountain 0.294 26.86 18.02 11.69 25.75 62.66 0.293 17.29 0.475 28.82 0.415 0.479 0.445 1114 39.01 0.467 0.340 23.89 0.321 15.81 0.255 0.167 21.98 1597 22.03 13.66 1079 0.535 21.58 0.458 37.65 0.123 1276 0.205 0.451 2505 0.110 0.449 0.645 0.252 0.116 0.804 0.420 0.372 0.157 0.420 0.230 0.201 0.321 0.236 0.333 0.053 0.145 0.383 0.401 70 0.268 0.216 0.662 114 0.283 79 0.480 84 143 Eastern hillsCentral hillsWestern hillsMid-western hillsFar Western hills 11.07Eastern T 60.68Central T 10.16 30.98Western T 9.82 0.456Mid-western Tarai 0.494 0.438Far W 0.458 0.454 0.228 0.287 13.92 0.271 10.79 21.04 16.06 43.85 25.01 TABLE 5

164

Nepal = 100 = Nepal Relative value Relative

Contd...

index

empowerment

Economic

Income index Income

status index status

Employment

Credit index Credit

land index land

Gini corrected Gini

index

Electrification

PPP $ PPP Per capita GDP at GDP capita Per

1572 0.443 0.514 0.467 0.191 0.323 0.388 115

agricultural jobs agricultural

employed in non- in employed

labour force labour

Proportion of Proportion 19.90 100979.01 0.066 3438 0.728 1.000 0.107 0.082 0.144 0.062 0.119 1.000 0.233 1.000 69 0.629 187 13.7713.47 116914.33 0.078 1072 121512.45 0.047 0.755 0.217 1002 0.021 0.755 0.870 0.050 0.023 0.055 0.046 0.749 0.050 0.177 0.063 0.00021.57 0.217 0.142 0.194 0.036 0.203 1079 65 0.278 0.117 0.085 60 83 0.190 0.000 57 0.101 0.168 0.145 0.100 30

institutional credit institutional

access to access

household with household

Proportion of Proportion 7.37 4.24 1.45 1.55 3.13 0.00 6.91

size (ha) size

average land average

Gini corrected Gini

(Gini coefficient) (Gini Land inequality Land

0.4830.437 0.564 0.456 18.88 10.69 12.27 10.55 952 954 0.053 0.0350.434 1.000 0.780 0.430 0.275 0.156 0.033 0.008 0.099 0.100 0.292 0.216 87 64 0.502 0.443 0.453 0.443 0.436 0.440 0.700 0.072

households

electrified Proportion of Proportion 87.6496.41 0.529 0.43933.69 0.137 0.12338.28 14.25 0.403 18.6816.49 0.432 0.352 67.37 58.00 28.00 0.593 0.29633.60 2059 14.57 0.38746.29 24.31 1862 0.905 23.53 0.586 22.29 0.996 0.585 1237 0.360 32.59 0.394 0.131 1836 0.344 25.89 0.105 19.43 789 0.392 35.94 0.207 42.14 0.272 0.570 0.165 0.455 2156 0.831 0.408 1406 0.696 0.641 0.343 0.212 0.475 0.500 0.207 0.429 0.343 0.587 0.178 0.655 0.515 0.499 0.202 0.377 0.328 0.283 0.419 153 0.346 148 0.040 0.376 0.331 0.466 103 0.303 0.535 98 0.263 0.444 90 0.428 132 127 31.088.10 0.54413.30 0.3375.10 21.43 19.85 0.498 0.490 0.477 31.335.39 20.94 0.499 1310 12.1613.53 0.31738.9935.78 1455 0.46340.28 0.51924.40 0.540 0.132 0.549 0.338 0.564 0.52416.69 48.55 0.560 0.483 0.289 24.05 0.45427.22 0.823 34.17 0.551 0.46232.57 25.91 19.898.72 36.84 30.40 0.420 0.489 44.02 0.309 0.305 0.429 45.24 975 37.03 0.330 34.00 1302 0.405 0.229 1617 46.36 0.031 0.134 35.02 1381 0.399 26.61 939 0.366 20.00 0.337 0.412 17.76 0.281 880 0.541 0.247 0.920 0.836 1194 100 0.167 0.776 0.314 1802 0.707 0.350 0.793 0.277 0.498 0.332 0.290 0.848 93 0.231 0.443 0.389 0.526 0.493 0.678 0.539 0.511 0.107 0.675 0.226 0.348 0.387 0.340 0.254 0.363 0.344 0.457 0.094 0.145 0.506 0.113 0.449 0.073 102 0.385 136 0.186 150 0.407 0.398 133 0.362 114 0.383 118 107 114

Economic empowerment index by district, 2001 District KavrepalanchokLalitpur Bhaktapur KathmanduNuwakot 43.20DhadingMakwanpur Dhanusha 0.430Mahottari 96.81 0.325SarlahiRautahat 32.11 0.532Bara 13.99Parsa 23.16 0.112 Chitawan 20.76 0.412 0.583 0.341 20.07 18.51 0.367 25.19 0.580 25.53 66.71 0.614 17.86 0.433 0.366 41.22 0.508 12.42 24.70 1075 0.285 994 36.46 0.139 33.21 51.62 0.210 38.06 802 0.547 871 0.601 0.202 0.186 1715 0.367 0.372 0.687 0.734 0.599 0.114 0.434 0.181 0.452 0.360 0.143 0.752 0.114 0.383 0.336 0.262 0.350 0.407 0.044 0.069 78 0.375 104 0.309 0.310 0.531 92 92 158 Nepal Taplejung SankhuwasabhaSolukhumbu Panchthar Ilam Dhankuta 12.16TerhathumBhojpur Okhaldhunga 0.464Khotang 0.483Udayapur 29.74Jhapa 16.95 12.54Morang Sunsari 5.67 14.69Saptari 0.454 0.420 3.94 Siraha 0.459 0.527 1257DolakhaSindhupalchok 44.01 43.21 0.120Rasuwa Sindhuli 18.29 19.80Ramechhap 0.836 1102 1246 24.96 0.433 0.170 0.124 0.425 6.92 0.068 0.787 0.340 0.927 18.08 0.641 0.209 0.629 25.26 0.333 0.120 0.142 965 99 0.153 0.253 0.206 0.374 0.406 0.544 111 0.263 120 0.221 0.103 0.277 82 TABLE 6

165

Nepal = 100 = Nepal

Relative value Relative

index

empowerment

Economic

Income index Income

status index status

Employment

Credit index Credit

land index land

Gini corrected Gini

index Electrification

0.001 0.735 0.077 0.000 0.058 0.174 52

PPP $ PPP Per capita GDP at GDP capita Per

1321 0.1741341 0.223 0.551 0.704 0.930 0.729 0.084 0.269 0.233 0.240 0.394 0.433 117 129

agricultural jobs agricultural

employed in Non- in employed labour force labour

25.35 100217.81 0.073 679 0.358 0.047 0.035 0.343 0.223 0.114 0.117 0.113 0.161 0.000 48 0.124 37 49.9710.8310.84 775 110518.29 0.045 1014 0.053 877 0.120 0.129 0.853 0.034 0.846 0.000 0.000 0.335 0.000 0.57913.30 0.012 0.036 0.012 0.035 0.154 1175 0.120 0.121 0.080 0.158 0.214 0.072 0.220 0.501 47 64 0.119 65 0.103 35 0.048 0.180 0.183 54 18.65 1219 0.194 0.42620.1725.42 0.103 760 1167 0.150 0.25716.46 0.12615.25 0.634 0.195 1279 0.613 1104 0.000 0.125 0.209 0.129 0.196 0.396 0.148 62 0.347 0.224 0.000 0.049 0.029 0.177 0.094 0.217 0.280 0.076 0.217 65 0.154 83 29.07 0.141 0.164 945 42 49 0.079 0.382 0.089 0.276 0.096 0.185 55 Proportion of Proportion

institutional credit institutional

access to access household with household

2.43 7.83 5.28 9.99 839 0.00 0.00 0.00 2.44 7.09 7.04 8.61 8.85 0.00 3.34 6.13 Proportion of Proportion

size (ha) size

average land average

Gini corrected Gini

(Gini coefficient) (Gini Land inequality Land

0.410 0.248 0.4410.381 0.241 0.434 0.5200.471 0.225 0.196 14.65 30.15 13.70 22.55 907 825 0.048 0.047 0.312 0.252 0.213 0.439 0.054 0.182 0.083 0.053 0.142 0.195 42 58 0.4120.415 0.135 0.491 0.423 0.237 0.4690.443 0.318 0.217 29.51 13.06 770 0.053 0.296 0.430 0.044 0.033 0.171 51 0.456 0.261 34.630.432 18.80 0.267 1130 0.092 0.385 0.504 0.128 0.1630.480 0.260 0.254 76

households

electrified Proportion of Proportion 15.8218.905.15 0.4290.67 20.02 0.431 0.337 0.307 11.1015.34 0.4925.25 13.45 24.90 0.386 0.534 33.03 30.45 0.485 791 28.13 22.58 1088 0.158 0.190 29.89 1062 0.539 0.202 0.478 969 0.162 0.153 0.639 0.196 0.216 0.443 0.840 0.334 0.040 0.329 0.263 0.148 0.223 0.288 0.139 0.269 66 0.337 0.105 80 0.343 100 102 5.68 12.173.84 0.481 0.488 8.32 5.64 53.0419.2226.95 0.466 0.44836.63 0.251 0.437 0.282 25.70 34.0925.33 0.442 0.30418.00 40.86 0.474 0.256 12.0614.99 0.45825.36 0.502 22.61 0.221 27.919.47 0.238 2466 0.474 0.204 11.92 18.19 0.426 68.68 0.545 26.02 0.384 1188 19.09 0.373 23.76 1333 0.274 19.1019.47 0.364 1209 0.375 1220 0.461 1145 0.472 0.496 0.261 0.257 0.242 0.375 0.181 0.176 0.303 0.447 0.339 0.329 0.269 0.174 0.260 0.648 1.000 0.379 0.119 0.184 0.500 0.132 0.199 0.237 0.132 0.273 0.192 149 0.196 0.287 0.169 81 0.2128.15 0.398 85 0.22614.85 63 118 67 0.665 0.445 40.76 32.89 1184 0.148 0.759 0.593 0.332 0.183 0.403 120 38.4542.5718.61 0.529 0.527 0.339 0.562 0.421 36.69 28.14 0.548 28.11 19.80 37.45 23.97 1310 1358 0.393 1121 0.436 0.187 0.543 0.711 0.968 0.534 0.410 0.288 0.263 0.398 0.203 0.228 0.246 0.160 0.392 0.440 0.361 117 131 107

Economic empowerment index by district, 2001 District Salyan Surkhet Dailekh Jajarkot Dang BankeBardiya Bajura 32.20 0.543 0.425 32.89 43.90 1370 0.329 0.719 0.479 0.491 0.250 0.454 135 Mugu Humla PyuthanRolpa Rukum 16.59 7.61 0.489Bajhang 0.343Darchula Achham 35.35 24.95 5.11 754 0.166 0.550 0.515 0.217 0.027 0.295 88 ManangMustang Gorkha LamjungTanahu Syangja KaskiMyagdi 80.24Parbat Baglung 31.18 0.441Gulmi Palpa 0.268Arghakhanchi 0.434 31.33 74.36 0.255 31.97 27.38 0.493Jumla Kalikot 21.59 0.223 2746 48.23 0.828 1284 50.75 0.318 0.399 4.94 1707 0.371 0.456 0.767 0.399 0.318 0.307 0.168 0.749 0.702 0.219 0.550Doti Dadeldhura 0.591Baitadi 0.295Kailali 163 Kanchanpur 0.372 88 0.548 17.36 11.79 22.03 0.419 163 0.343 0.517 0.508 63.85 0.198 0.418 15.78 36.74 50.06 16.65 28.57 890 0.116 0.256 0.535 0.097 0.076 0.216 64 Nawalparasi Rupandehi Kapilbastu Dolpa 0.59 TABLE 6

166 Nepal =100 Relative value index Political empowerment index Contestants competition 0.8180.364 0.700 0.327 0.759 0.346 117 53 0.634 0.502 0.568 88 0.658 0.546 0.602 93 0.8380.654 0.688 0.437 0.763 0.546 118 84 0.663 0.390 0.526 81 0.691 0.507 0.5990.693 93 0.577 0.635 98 0.8200.661 0.758 0.622 0.789 0.642 122 99 0.6940.707 0.589 0.683 0.642 0.6950.645 99 108 0.521 0.583 90 0.6530.734 0.508 0.593 0.581 0.663 90 103 0.7460.716 0.692 0.727 0.719 0.721 111 112 0.7310.741 0.744 0.640 0.737 0.691 114 107 0.6690.789 0.4950.597 0.868 0.5820.448 0.332 0.829 90 0.272 0.465 128 0.360 72 56 0.6980.703 0.594 0.644 0.646 0.674 100 104 index Voter turn-out Voter 2.23 1.57 1.88 1.96 2.21 1.77 1.68 1.89 2.01 2.34 2.10 1.92 2.04 2.20 1.89 2.04 2.22 2.28 2.31 2.13 1.87 2.53 1.58 1.47 2.05 2.14 contested Candidates election (No) per post in local 62.90 64.05 65.68 65.79 63.45 68.37 66.90 67.63 68.14 53.77 66.05 66.25 election (%) Voter turn-out Voter in the national arai Political empowerment index by region, 2001 Political arai arai arai estern T Region Mid-western mountain 71.90 Mid-western hills 49.67 Hills Mid-western region Western mountain 72.89 Western hills 63.89 MountainWestern region 64.30 Mid-western Tarai Central mountain 72.00 Central hills 64.23 Central T Western T RuralCentral region 65.84 66.49 Eastern mountain 63.82 Eastern hills 67.79 Eastern T Urban Eastern region Nepal Tarai Far Western region 64.63 Far Western mountain 70.50 Far Western hills 61.09 Far W TABLE 7

167 Contd... Nepal =100 Relative value index Political empowerment index Contestants competition index 0.6980.6950.5660.7330.8180.9120.8120.735 0.5940.5590.604 0.5070.538 0.550 0.4670.660 0.7840.782 0.6880.8370.809 0.612 0.6460.831 0.672 0.503 0.601 0.5340.823 0.558 0.4780.587 0.6000.715 0.8010.852 0.620 0.8000.557 0.809 1.000 0.712 0.7700.495 100 0.704 0.7520.692 0.5310.701 93 0.5690.835 0.617 86 0.5080.536 0.505 93 0.699 124 0.640 0.4690.631 124 0.795 0.4540.729 0.9190.672 110 0.7890.752 0.641 109 0.7910.685 0.560 82 0.710 88 0.720 0.8120.754 79 0.546 0.7490.730 0.7070.856 99 0.6610.817 0.823 123 0.5060.761 0.672 142 0.727 122 0.568 0.803 122 0.626 0.757 0.705 111 0.823 0.766 84 0.643 0.551 109 0.679 102 0.727 0.700 78 0.700 0.683 0.699 88 0.778 97 0.721 109 127 0.760 99 0.641 0.768 112 0.758 108 0.722 108 120 112 118 99 119 117 112 Voter turn-out Voter (No) 1.89 1.97 1.82 2.38 2.08 2.18 1.88 1.94 2.09 2.43 2.77 2.36 2.09 1.89 2.23 1.82 2.13 1.99 2.25 2.43 2.45 2.18 2.28 2.42 2.35 1.97 2.20 2.23 1.84 2.32 2.20 2.05 2.21 2.33 1.80 2.34 Candidates in local election contested per post 65.90 67.74 61.40 64.15 70.13 72.87 71.45 72.15 66.85 73.60 56.05 66.20 72.73 62.75 64.75 73.80 71.86 66.05 76.51 72.54 59.12 65.40 election (%) Voter turn-out Voter in the national Political empowerment index by district, 2001 Political Taplejung SankhuwasabhaSolukhumbu Panchthar 59.56 DhankutaTerhathum 71.93 BhojpurOkhaldhunga 71.61 67.87 Udayapur Jhapa 59.20 Morang Sunsari Siraha DolakhaSindhupalchok Rasuwa Ramechhap 60.59 KavrepalanchokLalitpur Bhaktapur 65.72 Nuwakot DhadingMakwanpur DhanushaSarlahi 67.54 Rautahat 68.70 Bara Parsa 68.76 67.62 Nepal Ilam Khotang 58.19 Saptari Sindhuli Kathmandu 58.09 Mahottari Chitawan 69.12 District TABLE 8

168 Nepal =100 Relative value index Political empowerment index Contestants competition index Voter turn-out Voter (No) Candidates in local election contested per Post 69.0960.2963.3958.2266.9264.17 1.0864.42 1.5561.48 1.9064.70 1.8373.4870.57 1.38 1.8270.91 1.9179.36 0.76074.36 0.581 1.90 1.81 0.644 2.4780.84 0.539 2.3831.81 0.716 2.5343.98 0.660 0.9947.58 0.665 0.051 1.42 0.317 0.60568.68 0.671 0.51462.98 1.03 0.85067.84 0.475 0.790 1.44 0.220 1.07 0.79773.66 0.470 1.90 0.970 0.406 0.518 0.868 0.449 2.23 0.509 0.57961.07 0.460 1.36 2.44 1.000 0.50750.43 0.835 0.780 0.000 0.468 2.59 0.248 0.565 0.868 63 0.322 0.591 0.000 69 0.239 0.557 0.752 90 1.53 0.565 0.636 78 1.36 0.843 0.735 0.024 0.785 72 0.255 87 0.833 0.854 0.044 92 0.485 0.514 0.554 86 0.696 87 0.597 0.206 130 0.512 0.380 0.815 122 0.128 129 0.146 0.897 75 0.418 86 0.724 0.307 0.421 79 0.775 0.207 20 23 0.875 65 112 0.452 65 120 0.293 135 70 45 election (%) Voter turn-out Voter in the national Political empowerment index by district, 2001 Political District ManangMustang Gorkha LamjungTanahu 40.05Syangja 64.10KaskiMyagdi Parbat Baglung Gulmi 66.10Palpa 1.00ArghakhanchiNawalparasi 1.68Rupandehi 64.88Kapilbastu Dolpa Jumla 2.04KalikotMugu 0.168Humla 0.659Pyuthan 2.13 56.80Rolpa 72.47Rukum Salyan 57.65 0.699Surkhet Dailekh 0.008Jajarkot Dang Banke 0.387 1.66 0.675 64.10 1.23Bardiya BajuraBajhang 2.05 70.84Darchula 0.588Achham 0.088 63.86Doti 56.64 65.05 0.523Dadeldhura 0.510 0.642Baitadi 2.08 0.829 59.07 0.527 2.59 0.644 49.12 14 1.53 1.57 1.70 81 0.658 0.379 0.659 0.136 1.75 0.595 0.796 100 1.63 0.654 0.506 0.678 102 0.444 0.614 0.483 0.556 0.561 0.898 0.353 0.303 0.329 0.402 69 0.636 75 0.426 87 0.847 0.359 0.479 0.418 0.540 98 0.491 131 0.356 74 65 84 76 55 TABLE 8

169 PHEI SHEI -0.813 0.5815 0.68150.8327 0.653 0.839 0.5193 0.5494 -0.6935 P= .000P= .000P= .000 1 P= .000 P= .000P= .000 P= .000 1 P= .000 P= .0000.757 P= .000P= .000 P= .000 P= .000 P= .000 1 P= .000 0.3802 P= .001 P= .000 P= .000 P= .000 0.3608 P= .001 1 P= .000 P= .000 P= .522 0.075 P= .000 1 P= .000 -0.4401 P= .000 P= .000 0.4812 1 P= .047 0.2306 1 HEI HDI GDI GEM HPI EHEI Correlation coefficients between human empowerment and development indices (N = 75) GDIGEM 0.7737HPI 0.4676EHEI -0.8218 0.994 SHEI 0.8465 0.593PHEI 0.7495 -0.9067 0.6115 -0.9082 -0.583 HEIHDI 1 0.7901 TABLE 9 Notes: EHEI, SHEI and PHEI stand for economic empowerment index, social index political respec- P stands for 2-tailed significance tively.

170 ANNEX 3: National and international commitments and supplementary information

Table 1 Accepted conditions in electricity purchase agreements

Khimti Bhote Koshi Upper Modi

Per unit base year price (cents) 5.94 6.0 5.4 Compulsory purchase units at take or pay price 350 Million 246 million 89.6 million Annual increment in base year price As per annual rate of inflation 3% 2.7% Mode of payment 100% US$ Converting US$ into Nepali rupees Starting from 90 percent now to 70 percent at the lower end in US$ Royalty NEA NEA NEA

Source: NEA 1999/2000.

TABLE 2 Effectiveness of the Judiciary

Year Cases Verdicts given Percent

2000 4564 1884 41.3 2001 4131 1348 33.8

Source: Supreme Court 2001.

TABLE 3 Representation of different groups in Parliament (number)

Brahmin/Chhetri Mangol Kirat Madhesi Dalit Newar Total

Lower house 105 45 11 24 0 20 205 Upper house 20 11 4 12 4 9 60

Source: Election Commission 1999.

TABLE 4 Dalits, indigenous people and women candidates and elected numbers in the Parliamentary election, 1999

UML NC RPP Others Total Winner % in total seats

Total candidates contested 195 205 195 1643 2238 – Total winners 71 111 11 12 205 – No. of indigenous candidates contested 71 83 89 924 1167 – No. of winners 26 40 7 5 78 38.0 No. of Dalit candidates contested 2 0 2 78 82 – No. of winners 0 0 0 0 0 0.0 No. of women candidates contested 12 14 14 103 143 – No. of winners 6 5 1 0 12 5.9

Source: Election Commission 1999.

171 Table 5 Representation of various socio-economic groups in the central committees of major political parties

Nepali Congress+ CPN (UML) RPP

Total seats (number) 29 46 41 Brahmin (%) 62.1 65.2 19.5 Chhetri (%) 10.3 10.9 31.7 Newar (%) 3.4 13.0 4.9 Hill ethnic groups (%) 13.8 6.5 26.8 Tarai communities (%) 10.3 4.3 17.1 Others (%) – – – TOTAL (%) 100 100 100

+ This represents the situation before the split of the Nepali Congress. Source: Political parties.

BOX 1 International human rights instruments ratified by Nepal

S.N. International Instruments Ratification/Accession Date 1. Slavery convention, 1926 7 January, 1963 (A) 2. Protocol amending the slavery convention, 1953 7 January, 1993 (A) 3. Supplementary convention on the abolition of slavery, the slave Trade and the institutions and practices similar to slavery,. 7 January, 1963 (A) 4. Convention on the political rights of women, 1952 26 April, 1967 (A) 5. Convention on the prevention and the punishment of genocide, 1948 17 January, 1969 (A) 6. International convention on the elimination of all forms of racial discrimination, 1965 30 January, 1971 (A) 7. International convention on the suppression and punishment of the crime of apartheid, 1973 12 July, 1977 (A) 8. International convention against apartheid in sports, 1985 1 March, 1989 (R) 9. Convention on the rights of the child, 1989 14 September, 1990 (R) 10. Convention on the elimination of all forms of discrimination against women, 1979 22 April, 1991(R) 11. International covenant on economic, social and cultural rights, 1966 14 May, 1991 (A) 12. International covenant on civil and political rights, 1966 14 May, 1991 (A) 13. Optional protocol to the international covenant on civil and political rights, 1966 14 May, 1991 (A) 14. Convention against torture and other cruel, inhuman or degrading treatment or punishment, 1984 14 May, 1991 (A) 15. Convention on the suppression of immoral trafficking and protocol, 1949 27 December, 1995 (A) 16. Second optional protocol to the international convention on civil and political rights/aiming at the abolition of death penalty, 1989 26 September, 1997 (A)

Note: R = Ratification/A = Accession date.

BOX 2 Unfulfilled commitments: a few cases from a long list

! Recommendations of Mallik Commission to take action against abuses before the restoration of democracy ! Recommendations of Administrative Reform Commission ! Recommendations of the High Level Commission (1994) on Resolving Citizenship Problem ! Recommendations of Land Reform Commission of 1994 ! Unanimous Resolution of Joint Parliamentary Committee on Revenue Leakages ! Deuba Committee Report (2002) on solving the Maoist Problem ! Recommendations of High-Level All-Party Election Reform Committee ! Eight-point programmes declared by the Prime Minister in Parliament in 2001 ! Suggestions of the High-Level Public Expenditure Review Commission (2001)

Source: Compiled from government documents 1990-2003.

172 ANNEX 4: Statistical tables and definitions

TABLE 1 Population aged 6 years and above by educational attainment and sex, 1981-2001

Literacy, level of education 1981 1991 2001 Male Female Male Female Male Female Total number (in 000) 6233 5947 7523 7622 9593 9663 Illiterate (%) 66.0 88.0 45.2 74.4 34.3 56.8 Literate (%) 34.0 12.0 54.1 24.7 65.1 42.5 Total 100.0 100.0 100.0 100.0 100.0 100.0 Level of educational attainment (%) No schooling 23.9 22.8 22.3 24.0 8.5 9.2 Primary 46.1 56.4 39.1 45.2 39.3 45.9 Secondary 22.2 15.9 23.7 20.1 30.8 30.3 SLC 3.6 2.4 5.6 3.8 9.6 8.1 Intermediate and above 4.1 2.4 4.6 2.4 10.7 5.3 Total 100.0 100.0 100.0 100.0 100.0 100.0

Source: MoES 2001a, 2001b.

TABLE 2 Mortality rate by sex, 1996-2001

CBR CDR IMR Under 5 mortality Maternal mortality ratio 1996, total 35.4 11.5 78.5 118.3 539 Male 101.9 142.8 Female 83.7 135.5 2001, total 33.5 9.6 64.4 91.2 415* Male 79.2 104.8 Female 75.2 112.4

Source: Pradhan et al 1997; MoH, New ERA, and ORC Macro 2002; CBS 2002a. * HMG/N/NPC/MoPE 2003.

TABLE 3 Estimates of trafficked girls and women for sex work

Sources* No. of girls/women Frequency/time frame Destinations Acharya 1998 and Koirala 1999 200,000 – India 40,000-50,000 – Bombay 60,000 – Falkland 17,000 – Calcutta Pokhrel 1999 250,000 – India SAFAHT 1997 70,000-100,000 – India CWIN 1997 153,000 (in 1987) (20 per cent children below 16 years) 100,000-200,000 (1996) – India CWIN 1997 100,000-160,000 – India MoWCSW 1998 – India Times of India 1989 100,000 – India Singh 1999 80,000-100,000 – India Pradhan 1991 27,000 – Calcutta 21,000 – Delhi 3,480 – Banaras 4,700 – Gorakhapur STOP/Maiti 2002 5,000-11,000 Annually – CAC Nepal 2000 300,000 (globally) – – Ghimire 2002 5,000-(7,000) Annually – PC and TAF 2001 5,000-7,000 Annually – STOP 2002 50,000 – – Population Council, Delhi 2001 200,000 – Sex Industry LHRLA and UNESCO 1997 Approximately 160,000 Working in Indian brothels ILO/IPEC 2001 12,000 Annually –

Note: According to the SANLAAP report, receiving children and women from Bangladesh and Nepal and sending them to the Middle East is a daily occurrence in India. As a case in point, more than 40 per cent of the 484 female prostitutes rescued during major raids on brothels in Bombay in 1996 were from Nepal. * The data were extracted either directly from the given sources or from the reports of ILO/IPEC 2001 and ADB 2002. Source: IIDS and UNIFEM 2004. 173 TABLE 4 Households reporting female ownership of land, house and livestock, 2001

Number Percent Total households 4,174,374 100.0 House, land, livestock 32,766 0.8 House and land 161,204 3.9 House and livestock 3,709 0.1 Land and livestock 39,257 0.9 House only 32,518 0.8 Land only 219,196 5.3 Livestock only 226,320 5.4

Note: Households not reporting ownership of female of house, land and livestock = 83%. Source: CBS 2002a.

TABLE 5 Usually economically active population 10 years of age and over by major industry, 2001

Both sexes Male % Female % Agriculture and forestry 6496222 52 48 Fishing 8467 85 15 Mining and quarrying 16048 64 36 Manufacturing and recycling 872254 52 48 Electricity, gas and water supply 148218 22 78 Construction 286418 82 18 Wholesale and retail trade 863773 60 40 Hotels and restaurants 120889 65 35 Transport, storage and communications 161638 96 4 Financial intermediation 46765 85 15 Real state, renting and business activities 29922 86 14 Public administration and social security 301024 88 12 Education 228381 74 26 Health and social work 61797 71 29 Other community, social and personal service activities 72575 85 15 Private households with employed persons 105139 60 40 Extra-territorial organizations and bodies 58273 94 6 Not stated 22395 59 41 Total 9900196 57 43

Source: CBS 2002a.

TABLE 6 Women's representation in civil service by class/level, 1999-2001

Class Total civil servants % of women 2000 1999 2000 Special 85 3.5 2.4 First 633 5.1 4.1 Second 2,719 4.9 3.2 Third 7,418 5.3 5.2 Non-gazetted 87,834 8.0 8.2 Total 98,689 7.7 7.8

Source:MoWCSW 2000 (May).

TABLE 7 Women's representation in the House of Representatives, 1991-1999

1991 1994 1999 Male Female Male Female Male Female Number 198 7 198 7 193 12 % 96.6 3.4 96.6 3.4 94.2 5.8

Source: Election Commission 1991, 1994, 1999.

174 TABLE 8 Women's representation in local government institutions, 1997-2002

Local bodies Total representation Share of women (%) District councils 10,000 1.5 District development committees 1,117 6.7 Municipalities 4,146 19.5 Village development committees 50,857 7.7 Village councils 183,865 2.1 Ward committees 176,031 20.0

Source: Election Commission 1991, 1994, 1999.

TABLE 9 Literacy status of indigeneous people aged 6 years and above and educational attainment by ethnicity, 2001

Ethnicity/caste Literate (%) S.L.C. and equivalent Certificate level Graduate and above and equivalent No. % No. % NO. % Mountain and hills Thakali, Byansi 72.42 1220 0.13 663 0.12 363 0.10 Newar 72.18 110599 11.87 70633 13.27 47577 13.51 Yakkha, Chantel, Jirel, Darai, Dura 59.84 1316 0.14 509 0.10 149 0.04 Limbu 59.64 13084 1.40 5398 1.01 2381 0.68 Rai 58.77 21454 2.30 9169 1.72 4417 1.25 Magar 57.70 42683 4.58 16415 3.08 7624 2.16 Gurung 57.61 18455 1.98 8647 1.62 3784 1.07 Bhujel, Kumal, Sunuwar, Baramu, Pahari 46.17 5637 0.61 1642 0.31 736 0.21 Sherpa 45.76 3050 0.33 1412 0.27 734 0.21 Tamang 42.00 19291 2.07 5998 1.13 2650 0.75 Majhi, Danuwar, Thami, Lepcha 37.38 1873 0.20 886 0.17 163 0.05 Bhote, Walung, Hyolmo 36.72 362 0.04 229 0.04 87 0.02 Chepang, Bote, Raji, Hayu, Raute*, Kusunda 28.66 227 0.02 114 0.02 35 0.01

Ta r a i Rajbansi, Tajpurya, Gangai, Dhimal, Meche, Kisan, Munda 49.10 2876 0.31 1136 0.21 390 0.11 Tharu 46.54 32780 3.52 14638 2.75 5955 1.69 Dhanuk 33.99 4296 0.46 2161 0.41 1121 0.32 Santhal, Jhangad, Koche, Kusbadiya 26.87 639 0.07 360 0.07 296 0.08

Caste groups Hill Brahmin 75.64 278626 29.91 185464 34.85 146093 41.48 Chhetri, Thakuri, Syansi 60.90 204830 21.99 107376 20.17 64278 18.25 Tarai Upper Castes 73.92 38260 4.11 29975 5.63 24468 6.95 Hill Dalits 41.93 12309 1.32 4600 0.86 1814 0.51 Tarai Dalits 21.06 5878 0.63 2433 0.46 1093 0.31 Nepal** 53.74 931583 100 532227 100 352243 100

* Settled Rautes mostly from Dadeldhura. Nomadic Rautes are not included in the statistics and they are mostly illiterate. ** Including other castes, religious minorities and unidentified groups. Source: CBS 2002a.

175 TABLE 10 Percentage of households with toilet facilities by ethnicity, 2001 Ethnicity Without toilet Ordinary toilet Flush/modern toilet Not reported Total households

Jhangad 96.26 2.14 0.99 0.66 8072 Gangain 95.03 3.13 1.44 0.39 6037 Dhanuk 91.71 4.33 2.66 1.30 32609 Santhal 87.67 7.07 4.74 0.51 7859 Danuwar 87.18 7.96 3.98 0.89 9461 Tajpuriya 86.17 8.72 2.03 3.08 3007 Rajbansi 86.16 7.38 5.18 1.28 20016 Tharu 85.57 8.25 4.82 1.36 236341 Raji 85.25 10.36 4.40 0.00 513 Chepang 83.85 13.76 1.45 0.94 8819 Bote 80.57 11.07 5.29 3.07 1268 Majhi 79.99 12.38 6.71 0.92 12013 Hayu 79.43 17.32 3.25 0.00 364 Baramu 76.85 18.96 2.71 1.48 1556 Sunuwar 73.44 19.30 5.54 1.72 17159 Bhote 72.08 12.52 14.23 1.18 3697 Kumal 71.88 21.63 5.83 0.66 17937 Meche69.50 24.93 4.01 1.55 965 Kisan 65.59 20.77 13.37 0.27 552 Darai 63.47 21.57 13.60 1.36 2245

Nepal 60.10 23.24 15.48 1.18 4174374

Source: CBS 2002a.

TABLE 11 Percentage distribution of households owning self-operated land by farm size and ethnicity, 2001

Marginal Small Semi- Medium Large Semi-landless cultivators cultivators medium cultivators Total Ethnicity/caste Landless cultivators (<.20 acres*) (0.21–1.00 (1.01-2.00 (2.01-4.00 (4.01-10.00 households (10.01+ acres) acres) acres) acres) acres)

Indigenous Groups Santhal, Jhangad, Kisan, Munda 58.46 4.91 10.44 7.07 9.5 8.76 0.87 16910 Raute, Kusbodiya, Kusunda 46.12 6.12 20.41 15.51 9.39 2.04 0.41 245 Rajbansi (Koche), Gangain, Dhimal, Tajpuriya, Meche 45.78 6.12 10.89 9.09 11.85 12.88 3.39 33597 Dhanuk 34.04 7.79 25.66 14.2 10.67 6.45 1.2 32290 Sherpa, Bhote, Walung 32.4 3.81 20.45 18.27 14.35 8.67 2.04 35731 Majhi, Bote, Raji 31.64 15.07 28.91 14.22 7.11 2.71 0.33 15005 Gurung 26.85 6.36 30.53 21.5 11.1 3.25 0.41 110574 Tharu 22.83 6.36 17.93 15.65 19.25 15.18 2.79 235500 Kumal, Sunuwar, Danuwar, Bhujel, Pahari, Baramu, Adivasi/Janajati 20.04 10.59 32.84 20.28 11.6 4.13 0.51 72715 Rai 20.04 4.89 24.97 24.24 17.69 7.4 0.76 125297 Tamang 16.69 6.93 31.29 26.73 14.18 3.85 0.32 239755 Limbu 15.83 4.57 27.06 25 18.67 7.95 0.91 67916 Magar 14.41 5.88 33.33 26.53 14.71 4.51 0.63 296313

Caste Groups Tarai Dalits 43.98 9.89 26.19 11.3 6.01 2.29 0.34 231880 Hill Dalits 15.32 15.24 44.55 17.25 6.14 1.27 0.24 308796

Religious Groups Muslims, Churaute 40.37 6.39 19.54 13.18 11.19 7.4 1.94 148036

Nepal 24.44 6.98 27.59 20.15 13.42 6.25 1.17 4174374

Source: CBS 2002a.

176 TABLE 12 Economically active population 10 years and above by white collar occupation and ethnicity/caste (in % of the group's population), 2001

Legislators, senior Technician Clerks or office Officials, managers and and associate Caste/ethnicity assistants professionals professionals

Mountain and hills Indigenous People 2.72 1.51 1.94 Thakali 8.24 3.21 1.88 Newar 6.39 3.70 3.80 Gurung 2.22 1.32 1.82 Yakkha, Chantel, Jirel, Darai, Dura 2.12 1.14 0.84 Limbu 2.08 0.80 1.03 Rai 1.97 1.00 1.22 Byansi, Hyolmo, Bhote, Walung 1.76 0.55 1.23 Sherpa 1.74 0.75 1.25 Magar 1.61 0.91 1.61 Tamang 1.02 0.54 0.01 Bhujel, Kumal, Sunuwar, Baramu, Pahari 1.03 0.51 1.73 Majhi, Danuwar, Tharu, Lepcha 0.76 0.54 0.89 Chepang, Bote, Raji, Hayu, Raute 0.31 0.26 1.00

Tarai Indigenous People 1.30 0.78 1.84 Dhanuk 1.58 1.16 2.52 Rajbansi, Tajpuriya, Gangain, Dhimal, Meche, Kisan, Munda 1.34 0.52 1.13 Tharu 1.31 0.81 1.90 Santhal, Jhangad, Koche, Kusbadiya, Kusunda 0.65 0.17 1.06

Caste groups Hill Brahmin 9.09 4.83 4.13 Hill Dalits 0.45 0.31 0.55 Tarai Dalits 0.30 0.26 1.06

Source: CBS 2002a.

177 Number % 1983/85 1986/87 1988/89 1990/91 1992/93 1994/95 1996/97 1998/99 2001/2002 – – 1 0.4 3 0.5 3 0.7 2 0.4 2 0.2 1 0.1 - - - - 3 0.6 2 0.7 1 0.2 4 0.9 3 0.6 4 0.4 2 0.2 2 0.5 1 0.5 88 18.6 64 23.4 118 18.8 85 18.5 51 10.7 98 9.7 86 9.4 31 7.9 16 8.7 327 69.3 176 64.5 438 69.9 309 67.3 383 80.5 823 81.1 759 83.1 327 83.4 161 87.0 Number % Number % Number % Number % Number % Number % Number % Number % , ) 14 3.0 8 2.9 11 1.6 11 2.4 12 2.5 18 1.8 15 1.7 6 1.5 1 0.5 ) 40 8.5 22 8.1 56 9.0 47 10.2 25 5.3 69 6.8 50 5.5 26 6.7 6 3.3 in the composition of gazetted third class officers Government by ethnicity (from Mid-April 1983 to 2002) Trends / Brahmin Newar Dalit , Adivasis Janajatis (except Caste/ethnicity Brahmin Chhetri Newar TOTAL 472 100 273 100 627 100 459 100 476 100 1014 100 913 100 392 100 185 100 Dalit castes Tarai (except Rajput Muslims Source: Various issues of Public Service Commission bulletins. Source: Various TABLE 13

178 BOX 1 Defining the Dalits

Despite the fact that the term ‘Dalit’ is used extensively in The Uppechhit, Utpidit ra Dalit Barga Utthan Bikas different reports/studies, deliberations and day-to-day Samiti (Ignored, Oppressed and Dalit Group’s dialogues, understandings differ as to its definition. The Upliftment Development Committee), formed under literal meaning of Dalit in the Nepali dictionary is “the the Ministry of Local Development, has identified 23 person who is suppressed”. In the context of South Asia, different Dalit communities: Lohar, Sunar, Kami, Dalit is a common term used to address culturally, economi- Damai, Kasai, Sarki, Badi, Gaine, Kusule, Kuche, cally and socially marginalized individuals or communities. Chyame, Chamar, Dhobi, Paswan (Dusadh), Tatma, Batar, Khatbe, Masahar, Santhal, Sattar and Halkhor. The proposed Bill on Dalits in Nepal forwarded by Na- tional Dalit Commission to the Lower House of Parliament The recent government Bill in the Parliament (March for approval has defined the term 'Dalit’ as “those com- 19, 2002) forwarded by the National Dalit Commission munities who by virtue of atrocities of caste-based dis- has identified 19 caste groups as Dalits: These castes crimination and untouchability, are most backward in are: Biswakarma (Kami, Sunar, Lohar, Tamata, social, economic, educational, political and religious fields, Chunara, Aod), Darji (Damai, Pariyar, Hudke, Dholi), and are deprived of human dignity and social justice. Sarki (Mijhar, Charmkar), Badi, Gaine (Gandharva), Kapali, Khadgi, Deula, Kuche, Chamar, Dushadh, In this Report, the term is used to designate communi- (Paswan, Hajara), Dhobi (Rajak), Tatma, Doom, Batar, ties that in practice continue to be treated as Pani Khatwe, Musahar, Halkhor, and Pattharkatta. There Nachalne, Chhoi Chhito Halnu Parne (groups or castes is, however, a controversy on the issue of whether any from whom water is not accepted, and whose touch Newar caste falls into the Dalit categories, since Newars requires sprinkling of water by the so-called high caste have been identified as Indigenous Nationalities by the communities). Ministry of Local Development. These groups have ap- pealed to the appropriate offices for their removal The National Code of 1854 listed 10 castes at the bottom from the list of Dalits. of the caste hierarchy, Pani Nachalne Chhoi Chhito Halnu Parne. These are: Sarki, Kami, Sunar, Chunara, Hudke, Source: Rajbhandari T. 2003 and Shrestha A. 2003. Damai, Gaine, Badibhand, Pode and Chymkhalak.

179 BOX 2 Defining the indigenous people of Nepal

The words Janajati, Adivasi, Mulbasi and Bhumiputra their line of descent back to the occupants of the are interchangeably used to describe the ethnic minori- territories before their annexation into the present ties as a whole. Adivasi and Janajati are terms widely frontiers of Nepal; and used by the majority population and those that also ap- ! those who are listed in the schedule of indigenous pear extensively in government documents:Janajatis (na- people/nationalities published by HMGN. tionalities) are known as Adivasis (indigenous people, autochthons, native people); conversely Adivasis are The identification of the indigenous people of Nepal known as Janajatis in Nepal. So the term Adivasis or was carried out by the government on the basis of “indigenous people” applies to all ethnic groups – Adivasi, these criteria. So far, 59 ethnic groups have been Janajati, Mulbasi (native people) and Bhumiputra (sons identified as indigenous people or nationalities: the of the soil). Kisan, Kumal, Kusbadiya, Kusunda, Gangai, Gurung, Chepang, Chhantyal, Chairotan, Jirel, According to ILO Convention No. 169, indigenous people Jhangad, Dolpo, Tangbe, Tajpuriya, Tamang, “are [those] regarded indigenous on account of their Tingaunle Thakali, Topkegola, Thakali, Thami, descent from the populations which inhabited the coun- Tharu, Thudam, Danuwar, Darai, Dura, Dhanuk try or a geographical region to which the country be- (Rajbansi), Dhimal, Newar, Pahari, Free, Bankariya, longs, at the time of conquest or colonization or the Baramo, Bahragaunle, Bote, Bhujel, Bhote, Magar, establishment of present state boundaries, and who, Majhi, Marphali Thakali, Mugali, Meche (Bodo), irrespective of their legal status, retain some or all of Yakkha, Rai, Raute, Rajbansi (Koch), Raji, Larke, their own social, economic, cultural and political institu- Limbu, Lepcha, Lhopa, Lhomi (Singsawa), Walung, tions.” In addition to these characteristics, self-identi- Byasi, Sherpa, Satar (Santhal), Siyar, Sunuwar, Surel, fication as indigenous is also considered a fundamental Hayu and Hyolmo. Only 43 indigenous groups were criterion for determining the groups as “indigenous specified in the Census 2001, along with two addi- people”. tional tribal groups, Munda and Khadiya that are linguistically distinct. The World Bank has specified five distinctive characteristics for the identification of indigenous people: i) a On the basis of various indicators, Nepal Federation close attachment to ancestral territories and natural of Indigenous Nationalities has classified 59 indigenous resources in these areas; (ii) an indigenous language that people/nationalities into five major categories: often differs from the predominant language; (iii) the (i) endangered groups (1) Bankariya, (2) Kusunda, presence of customary social and political institutions; (3) Kushbadiya, (4) Raute, (5) Surel, (6) Hayu, (iv) an economic system primarily oriented to subsis- (7) Raji, (8) Kisan, (9) Lepcha, (10) Meche; tence production; and (v) self-identification and identi- (ii) highly marginalized groups (1) Santhal, fication by others as members of a distinct cultural (2) Jhangad, (3) Chepang, (4) Thami, (5) Majhi, group. (6) Bote, (7) Dhanuk (Rajbansi), (8) Lhomi (Singsawa), (9) Thudamba, (10) Siyar (Chumba), According to the official definition stated by the Na- (11) Baramu, (12) Danuwar. tional Foundation for Development of Indigenous Na- iii) marginalized groups (1) Sunuwar, (2) Tharu, tionalities Act 2002, “indigenous people/nationalities (3) Tamang, (4) Bhujel, (5) Kumal, (6) Rajbansi are those ethnic groups or communities enlisted in the (Koch), (7) Gangai, (8) Dhimal, (9) Bhote, Appendix I Schedule of the Act who have their own (10) Darai, (11) Tajpuriya, (12) Pahari, mother tongue and traditional customs, distinct cul- (13) Dhokpya (Topkegola), (14) Dolpo, (15) Free, tural identity, distinct social structure and written or (16) Mugal, (17) Larke (Nupriba), (18) Lhopa, oral history of their own.” (19) Dura, (20) Walung. (iv) disadvantaged groups (1) Jirel, (2) Tangbe Though incomplete, this definition illuminates certain char- (Tangbetani), (3) Hyolmo, (4) Limbu, (5) Yakkha, acteristics of Nepalese indigenous people or nationalities (6) Rai, (7) Chhantyal, (8) Magar, (9) Chhairotan, as those ethnic groups with the following characteristics: (10) Tingaunle Thakali, (11) Bahragaunle, ! those who have their own ethnic languages other than (12) Byansi, (13) Gurung, (14) Marphali Thakali, Nepali; (15) Sherpa. ! those who have their own distinct traditional cus- (v) advanced groups: (1) Newar, (2) Thakali. toms other than those of the ruling high castes; ! those who espouse a culture distinct from that of the Among the small number of endangered groups, the Aryan/Hindu culture of dominant groups; Bankariya, Kusunda, Kushbadiya, Raute and Surel ! those who have distinct social structures that do not are close to physical extinction. The Hayu, Raji, Kisan, fall under the hierarchical varna or caste system; Lepcha and Meche are also threatened groups, as their ! those who have a written or oral history that traces population is decreasing and does not exceed 4,000.

180 BOX 3 Defining people with disability

The first Sample Survey on Disabilities, carried out by the Sub–Committee for the Sample Survey of Disabled Persons in Nepal in 1980 defined a disabled person as one who by virtue of a congenital disease or an acquired disease or injury is incapable of living an independent personal or social life or is incapable of engaging in gainful employment or acquiring normal education consistent with age or sex. In 1999, the government officially defined disabilities in five categories: Physical Disabled, Blind and Visually Impaired, Mentally Retarded, Deaf and Hearing Impaired and Mental Illness. Further, such people are categorized as severely disabled and profoundly disabled. A study carried out by National Planning Commission and UNICEF in 2001 has contextualized disability in four major categories as: 1) Communication disability 2) Locomotion disability 3) Mentally related disability and 4) Multiple/complex disability.

CLASSIFICATION OF DISABILITY Communication disability Locomotion Mentally related disability Multiple/complex disability disabilities Seeing disability Physical disability Mental retardation Multiple disabilities A person, who, even after A person who is unable to A person who is unable to A person having more treatment cannot count perform daily activities of acquire the ability to perform than one type of fingers with improved life due to a physical activities or to learn new tasks disability is said to be eyesight from a distance deficiency, defect or per the age and environment multiply disabled. of ten feet (3 meters), is deformity is said to be due to delayed mental develop- said to have seeing physical disable. ment prior to the age of 18 disability. years is said to be mentally retarded. 1. Persons who can manage the daily activities of life with the help of training. 2. Persons who cannot manage the daily life activities like eating, dressing, speaking, going to toilet even with training.

Hearing disability Mobility/walking Neuro-psychiatric conditions. Cerebral palsy A person who can not hear A person who is unable to Epilepsy: A person who has A person who has some ordinary voices from a perform the daily frequent attacks of unconscious- damage in the immature distance of one meter is activities of life due to a ness and shows symptoms of brain leading to physical said to have hearing physical deficiency, defect tongue biting, frothing from the incapacity is said to disability. or deformity in the lower mouth, shivering and inconti- have cerebral palsy. limbs is said to have nence is said to be an epileptic. Some cases could have mobility or walking mental retardation. disability. Chronic mental Illness A person, who after 18 years of age has some kind of mental instability with symptoms of unprovoked anger or elation, crying without reason and seeking isolation is said to have some kind of mental illness.

Speaking disability Manipulation/working A person who can not A person who is unable to speak at all or a person perform the daily who can not be under- activities of life due to a stood outside the family is physical deficiency, defect said to have a speaking or deformity in the upper disability. limbs is said to have working or manipulation disability.

Source: IYDP 1981 and WHO 1996.

181 ANNEX 5: Survey of socially mobilized communities – methods and results

The study on Socially Mobilized Commu- The average score or ranking (AN) is calcu- nities (SMCs) was carried out during 2003 lated as: in 10 districts (Dhankuta, Morang, AN = 1/N[1x(freq. for rank1) + 2x(freq. for Sindhupalchok, Chitwan, Syangja, rank2) + 3x(freq. for rank3) + 4x(freq. for Rupandehi, Surkhet, Dang, Doti and rank4) + 5x(freq. for rank5)], where N = to- Kanchanpur) of five development regions tal frequency (taking one Hill and one Tarai district in each). The Social Mobilization Agencies On a five-point scale, the average rank of an (SMAs) comprised cooperatives and indicator lies between 1 and 5. Inferences banks, (SFCL and Nirdhan), INGO-imple- are based on whether the average rank is mented programmes (AAN, CARE and the nearest 1 (signifying a very low rating of the Red Cross), government-implemented relevant indicator) or, at the upper end, 5 (sig- programmes (BAP and Khageri irrigation), nifying a very positive indicator rating). A donor-assisted programmes (VDP of score of 3 on the five-point scale represents UNDP and LFP of DFID), technology-fo- an average position between the lowest and cused programmes (CEAPRED and highest possible ranks. The average scores SAPPROS), women’s empowerment summarize the percentage distribution of programmes (PACT), alliance-building responses within this five-point range. programmes (SAP) and NGO-targeted programmes (BASE and FECOFUN). The The selected SMCs were examined in terms Participatory Learning and Action method of four attributes: process, outcomes, impact was adopted as the major research ap- of conflict and impact of programme. Analy- proach. To collect the necessary data, the sis was done based on the aggregate index Survey used four major types of instru- of different indicators underlying different ments: 20 SMA interviews, 40 stakeholder dimensions of organizational capacity interviews, 38 focus group discussions building (see table 1). The perceived impact and 599 individual member/household of SM programmes on varied dimensions interviews. The distribution of sample size of livelihood, and level of satisfaction after is shown in the table below. the programme intervention are shown in table 2 through 4.

Distribution of sample size

Group Sample Group Sample Group Sample

Poor 325 Rural 325 Eastern 120 Non-poor 274 Urban 274 Central 120 Female 121 Hills 121 Western 120 Male 478 Mountain 478 Mid-western 120 Targeted 298 Far Western 119 Holistic 301

Total 599 Total 599 Total 599

Source: UNDP 2004c.

182 To classify the 20 SMCs in groups with models are stronger in terms of process, while similar and dissimilar characteristics, the the holistic models are stronger in terms of Cluster Analysis method was used. Al- outcomes and impact on people’s liveli- though models vary from one another in hoods. Their horizons are broader in terms many respects, in terms of making the great- of developing coordination with other agen- est impact on livelihood conditions and also cies, mobilizing resources and enhancing the in the aggregate of process outcome and im- strengths of people in their command area. pact, the most noteworthy are those imple- In short, because the holistic models gener- mented by the government (BAP) and those ate greater synergy, they produce greater supported by UNDP (VDP) and DFID (LFP). impact overall on the livelihood conditions By contrast, the others emerged as relatively of the people they mobilize. However, the poor in terms of desirable impact on liveli- weakness that often besets holistic models hood conditions and also in the aggregate is a “‘process” that tends towards “exclu- of process model and impact (see table 5). sion of ultra-poor”. If a holistic model sets out to eliminate this “weakness” by target- Analysis based on the aggregate index of ing the ultra-poor within its framework, its different indicators showed that the targeted effectiveness may well increase.

TABLE 1 Rating of different attributes of organizational capacity and empowerment in sample SMCs

Indicators Poor Non-poor Female Male Targeted Holistic Total

Participation in decision-making processes Selection of executive body 4.8 4.8 4.8 4.8 4.9 4.7 4.8 Formulation of rules 4.7 4.6 4.5 4.6 4.7 4.5 4.6 Selection of programme 4.4 4.5 4.2 4.5 4.5 4.4 4.5 Programme implementation 4.5 4.5 4.2 4.5 4.5 4.4 4.5 Inspection and evaluation 3.6 4.2 3.7 3.9 3.9 3.8 3.9

Aggregate index 4.4 4.52 4.28 4.46 4.5 4.36 4.46

Level of participation in community activities Formulation of rules 3.5 3.7 3.6 3.6 3.6 3.6 3.6 Programme selection 3.3 3.6 3.4 3.4 3.4 3.5 3.5 Community development 3.4 3.6 3.4 3.4 3.3 3.5 3.5 Implementation 3.4 3.6 3.3 3.5 3.4 3.5 3.5 Maintenance 3.3 3.6 3.3 3.5 3.4 3.5 3.5 Inspection 2.7 3.1 2.9 2.9 2.7 3 2.9

Aggregate index 3.3 3.6 3.3 3.4 3.3 3.4 3.4

Knowledge about the process and transparency Programme objective 2.9 3.3 3 3.1 3.2 3 3.1 Loan and investment 2.9 3.2 2.9 3333 Seed money/revolving fund 2.2 3.1 1.9 2.1 1.9 2.2 3 Community rules 3.1 3.5 3.1 3.3 3.2 3.2 3.2 Government's attitude 1.5 2.1 1.8 1.7 1.8 1.7 1.8 Other organization and co-ordination 2.1 2.4 2 2.3 2.1 2.4 2.3

Aggregate index 2.5 2.9 2.5 2.6 2.5 2.6 2.7

Accountability of groups and members Leadership accountability to group 3.4 3.7 3.6 3.5 3.5 3.5 3.5 Other members' accountability 3.4 3.6 3.5 3.4 3.4 3.4 3.5 Accountability of stakeholders to leadership 3.4 3.7 3.5 3.5 3.5 3.5 3.6

Aggregate index 3.4 3.7 3.5 3.5 3.5 3.5 3.5

Contd...

183 TABLE 1 Rating of different attributes of organizational capacity and empowerment in sample SMCs

Indicators Poor Non-Poor Female Male Targeted Holistic Total

Quality of group leaders Honesty 4 4.2 4.2 4 4 4.1 4.1 Dedication 4 4.1 4.1 3.9 3.9 4 4 Accountability 3.9 4 4 3.9 3.9 3.9 4 Trustworthiness 4 4.2 4.1 4444.1 Skill/capacity 3.7 3.9 3.7 3.7 3.7 3.7 3.8

Aggregate index 3.9 4.1 4 3.9 3.9 4.1 4

Relations with other partner/support organizations Groups of other I/NGO 3 3.3 2.6 2.7 2.5 2.8 3.1 VDC 2.8 2.9 2.9 2.8 2.5 3.2 2.8 DDC 2.2 2.4 2.5 2.2 2 2.6 2.3 District line agency 2.4 2.6 2.5 2.5 2.5 2.4 2.5 Financial institution 1.9 2.2 2.4 2.2 2.1 2.4 2 Group federation 1.9 2.2 2.5 1.9 1.9 2.2 2 Other groups 3.4 3.4 2.4 2.9 3 2.5 3.3

Aggregate index 2.5 2.7 2.5 2.5 2.4 2.6 2.6

Mutual trust and solidarity organizational capacity to work together and manage inter/intra group conflicts Demand for public facilities 3.3 4 3.6 3.3 3.4 3.4 4 Working together with other groups 3.3 3.5 3.5 3.4 3.4 3.4 3.4 Manage inter-group conflict 3.3 3.6 3.4 3.4 3.3 3.5 3.5 Manage intra-group conflict 2.8 3.6 1.5 1.4 1.4 1.5 3.4

Aggregate index 3.2 3.7 3 2.9 2.9 2.9 3.6

Source: UNDP 2004c.

TABLE 2 Perceived impact of SM programmes on livelihood

SMCs Poor Non-Poor Female Male Targeted Holistic All

Health 3.9 3.2 4 3.9 4 4 3 Education 4 4 4.1 4 4 4 4 Information 4 4 4 4 4 4 4 Natural resources 3.8 4 3.9 3.8 3.9 3.8 4 Loan facility 4.1 3.9 4.3 4.1 4.2 4.1 3.8 Improved technology 3.5 4.2 3.5 3.5 3.5 3.6 4.2 Market facility 3.4 3.5 3.6 3.5 3.5 3.6 3.5 Public facilities 3.7 3.6 3.8 3.7 3.6 3.7 3.5 Training 3.4 3.7 3.5 3.5 3.4 3.5 3.7 Employability 3.7 3.5 3.8 3.7 3.7 3.8 3.5 Household income 3.8 3.8 3.6 3.8 3.7 3.7 3.7 Dependency on landlord 1.9 3.7 1.8 1.9 1.9 1.9 3.7 Dependency on SMCs 2.5 1.8 2.5 2.4 2.4 2.5 1.9 Social evils 3.5 2.3 3.6 3.6 3.7 3.4 2.4 Mutual work 4 3.6 4.2 4.1 4.2 4.1 3.6 Mutual trust 4 4.2 4.2 4.1 4.1 4.1 4.1 Economic status of marginalized 3.9 4.2 3.9 3.9 3.9 3.9 4.1 Socioeconomic status of women 3.9 3.9 3.9 3.9 4 3.8 3.9

Aggregate index 3.6 3.6 3.7 3.6 3.6 3.6 3.6

Source: UNDP 2004c.

184 TABLE 3 Improvement in social/economic/political status

Area Poor Non-poor Female Male Targeted Holistic All

Social 3.5 3.6 0 3.5 3.5 3.6 3.5 Family health 3.3 3.5 3.4 3.4 3.3 3.5 3.4 Knowledge/skill 3.6 3.8 3.8 3.7 3.7 3.6 3.7 Respect 2.9 3.1 3.1 3 2.9 3.1 3 Economic 3.2 3.6 3.4 3.4 3.3 3.4 3.4 Employability 3.3 3.4 3.4 3.3 3.3 3.4 3.3 Physical assets 2.9 3.1 3.1 3 3 3 3 Income 3.3 3.5 3.4 3.4 3.4 3.4 3.4 Comparability in income 3.4 3.6 3.5 3.4 3.5 3.5 3.5 Political strength 3.3 3.5 3.5 3.4 3.5 3.3 3.4 Civil power 3.9 4.3 1.1 1.1 1.1 1.1 4

Aggregate index 3.3 3.5 2.9 3.1 3.1 3.2 3.4

Source: UNDP 2004c.

TABLE 4 Level of satisfaction after programme intervention (percentage distribution by group)

Group Little satisfaction As before Some satisfaction Great satisfaction Total

Poor 1.5 2.8 56.6 39.1 100 Non-poor 0.4 1.5 44.2 54 100 Female 0.8 0.8 51.2 47.1 100 Male 1 2.5 50.8 45.6 100 Targeted 1 2 52.3 44.6 100 Holistic 1 2.3 49.5 47.2 100

TOTAL 1 2.2 50.9 45.9 100 Source: UNDP 2004c.

TABLE 5 Comparison of SM models by average scores

SMCs Process Outcome Livelihood impact Aggregate

Targeted 3.2 4.1 3.3 3.7 Holistic 2.6 3.3 3.9 3.6 Technology-focused 4.0 4.3 3.5 4.0 I/NGO-implemented 2.7 4.3 2.4 3.3 Government-implemented 3.0 3.0 5.0 5.0 UNDP-supported 2.0 2.5 5.0 4.5 Women's empowerment 3.0 4.5 1.0 3.0 Partnership-focused 2.0 3.5 3.5 3.5 NGO/CBO-targeted 3.5 3.5 1.5 3.0 Financial 2.8 3.7 2.5 3.7 DFID-supported 3.0 3.0 5.0 4.0 Khageri/water user group 2.0 2.0 3.0 3.0

Note: In this table, average scores are calculated on the basis of cluster analysis. A model classified as best is given a score of five and that classified as poorest a score of one.

185 186 Nepal Human Development

ea Human Nepal Development eot2004 Report Report 2004 Empowerment and Poverty Reduction

Even at the dawn of this new millennium, policy-makers and planners

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