Nepal has achieved a lot in terms of reducing the incidence of poverty. What is your assessment?
I always congratulate Nepal for becoming one of the fastest climbers in the human development index worldwide. If you look at the data of last 40 years a lot has been achieved, which also includes poverty reduction. So far, Nepal has achieved six of the eight millennium development goals. And in terms of poverty, the number has halved compared with figures of 1996. But creation of jobs is still an issue. And if you disaggregate the available data you can also see inequality growing among different groups of people.
Poverty reduction in the country has mainly been attributed to contributions made by Nepalis working abroad. Is the process of building economy through remittances sustainable?
Remittance can play a vital role in economic growth and poverty reduction. But that money needs to be invested on people and not on consumption, which is generally fuelled by imported goods. So investment on education, health and the entire social sector is critical.
So how long can we go on building the economy through money sent by migrant workers?
Creation of additional jobs within the country is essential. There are sectors like agriculture and tourism, which have the growth potential. Nepal must create facilitating investment and legal environment for these sectors to grow. So remittances that Nepal is receiving should be invested in these sectors.
You identified agriculture as a potential sector that can create jobs. Could you please elaborate?
For example, in addition to growing vegetables you can also process them here instead of simply exporting them. If you export vegetables, the recipient country adds value to it by, say, processing them, before re-exporting them. Creation of self-employment opportunities are also important. For instance, Micro Enterprise Development Program (which extends credit to potential entrepreneurs) that we are running since 1998 has created 56,000 micro-entrepreneurs.
Coming to MDGs, despite reduction in maternal mortality rate and infant mortality rate, various reports show that death rate among infants less than four weeks old and mothers of different groups is rising. What is your take on this issue?
It´s not only infant and maternal mortality rates that show disparity. If you disaggregate data for each millennium development goals by groups, you start seeing lots of disparities. This is the same for the human development index, in which Brahmins and Chhetris are placed higher than other groups. We need to analyze why certain groups are on the lower rungs of the index. For example, literacy rate among Dalit women is only 15.8 percent, while average literacy rate among women is 34.9 percent and for men it is 62.7 percent. We need to put in efforts to bring these groups at par with other groups.
What is UNDP doing to improve this situation?
Micro Enterprise Development Program, that I referred to earlier, has created 56,000 micro-entrepreneurs of which 22 percent are Dalits, 36 percent are from indigenous groups and 68 percent are women.
You just said literacy rate among dalit women is low. But enrolment rate among orphans, and disabled and street children is also low.
You are right. But the key here is - how to expand the reach. For this you have to analyze the causes and extend necessary assistance. So we should not only look at bigger picture of achieving millennium development goals. We should also disaggregate those data and point out inequalities.
Talking about inequalities, income disparity has been rising in the country. What measures should Nepal take to address this problem?
Job creation is very important as it can raise the income level of people. In addition to that, assurance of dignity and inclusiveness are also important. It is unfortunate that Nepal is yet to finalize its constitution. But we hope the vision of inclusiveness will not be lost in the transitional period.
How has the political situation, policy gaps and absence of elected representatives in local bodies affected UNDP´s work in Nepal?
Of course the environment here is different than in other countries. But we also have to congratulate Nepal for coming this far following signing of the peace agreement. Of course it´s frustrating during the transition period because we don´t see that much of progress going on. But a lot of discussion has taken place on constitution and different views have been expressed, and this should not be lost. I also think fair and transparent election needs to be held soon. I would also like to advocate for early local elections because absence of elected representatives in local bodies has created a vacuum and this can erode democratic values.
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