EFFECTS OF POVERTY AND INEQUALITY

IN THE ECONOMIC CONDITION OF NEPAL

Submitted by: Submitted to:

This project work is submitted for partial fulfillment of NEB exam, 2079
September 5, 2022.
 Acknowledgment
I would like to express my special thanks of gratitude to my teacher Mr. Ajay
Chandra Jha, who gave me this wonderful opportunity to do this project work on Economics
on “PROBLEM ON INEQUALITY AND POVERTY ON ECONOMIC
DEVELOPMENT OF NEPAL.” I have decided to put my effort into this project. However,
it would not have been possible without my subject teacher’s constant support and the help of
my friends. I would like express my gratitude to all of them.

Table of Content
Topics Page No.
Introduction to Poverty 2
Types of Poverty 3
Causes of Poverty 3
Problem of Poverty 3
Solution to Poverty 3
Introduction to Inequality 4
Objectives of Inequality 4
Causes of Inequality 4
Problem of Inequality 4
Solution to Inequality 4
Conclusion 5
References

Introduction
Poverty:

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Poverty is the state of one who lacks a usual or socially acceptable amount of money or
material possessions. Poverty is said to exist when people lack the means to satisfy their basic
needs. It is the inability of the people to attain a minimum standard of living. In other words,
poverty is a relationship between the essential needs of the people to survive and their ability
to satisfy them.
Therefore, poverty may be said to be a situation where people are deprived of basic needs,
basic rights and basic opportunities for their livelihood.

Types of Poverty
1. Absolute Poverty
Absolute poverty is when household income is below a certain level. This makes it
impossible for the person or family to meet basic needs of life including food, shelter,
safe drinking water, education, healthcare, etc.
2. Relative Poverty
Relative poverty is when households receive 50% less than average household
incomes. So, they do have some money but still not enough money to afford anything
above the basics. This type of poverty is, on the other hand, changeable depending on
the economic growth of the country.

Cause of Poverty
 Lack of access to clean water and nutritious food.
 Lack of access to basic healthcare.

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  Inequality or social injustice.
 Conflict and instability.
 Lack of education.
 Lack of access to jobs and livelihood.
 Poor basic infrastructure.
 Climate change.

Problem of Poverty
Poverty entails more than the lack of income and productive resources to ensure sustainable
livelihoods. Its manifestations include hunger and malnutrition, limited access to
education and basic services, social discrimination and exclusion as well as the lack of
participation in decision-making.
1. Unable to recognize poor families and households.
2. Social protection activities did not target poor families.
3. Unable to establish proper coordination between the conducted programs.
4. Inadequate capacity-building programs.
5. Lack of proper co-ordination.

Solution to Poverty
 Quality education: - Education provides children with the knowledge and life skills to
realize their full potential.
 Access to Health care: - Access to health care is essential.
 Water & Sanitation: - Water and sanitation are also essential for every child’s
survival.
 Economic security.
 Child participation
Inequality:
Inequality refers to the phenomenon of unequal and/or unjust distribution of
resources and opportunities among members of a given society. The term inequality
may mean different things to different people and in different contexts.
 Income Inequality: - Income inequality is the extent to which income is distributed
unevenly in a group of people.
 Pay Inequality: - A person’s pay is different to their income. Pay refers to
payment from employment only.
 Wealth Inequality

Objectives of Inequality
1. Understand the effect that inequality and lack of rights can have on service users.
2. Solve compound inequalities.
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 3. Solve inequality applications.

Causes of Inequality
 The labor markets.
 Gender, race, and culture.
 Development patterns.
 Wealth condensation.
 Mitigating factors.
 Social cohesion.
 Population health.
 Utility, economic welfare and distributive efficiency.

Problem of Inequality
1. Economic inequality undermines the fairness of the economic system itself.
2. Inequality causes a wide range of health and social problems from reduced life
expectancy and higher infant mortality to poor educational attainment, lower
social mobility and increased levels of violence and mental illness.

Solution to Inequality
1. Lowering the ceiling of agricultural land and redistributing the surplus land.
2. Generating employment opportunities.
3. Bolstering human capital.
4. Raising wages and returns.
5. Altering corporate governance.
6. Expanding infrastructure.
7. Protecting intellectual property.

Conclusion
In conclusion, poverty is not the problem of a person but of the whole nation.
Also, it should be dealt with on an urgent basis by the implementation of effective
measures. In addition, eradication of poverty has become necessary for the sustainable
and inclusive growth of people, society, country, and economy.
Poverty is the main cause because people living in poverty cannot afford
nutritious food for themselves and their families. This makes them weak, unstable,
and less able to earn the money that would help them escape poverty and hunger to
feed their families.

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 Social inequality in society has led to decreased social mobility in society.
No country can develop if they have less social mobility in its society. People need to
have equal opportunities to succeed in their life.

References
 Economics-II, Buddha Publications
 Google