The drop in position, however, was recorded not because Nepal performed badly on income, education and health -- three key areas that Human Development Repot (HDR) focuses on, but because this year´s ranking was done after adjusting inequality in all those areas, according to officials.[break]
“Had traditional methodology alone been applied, our rank would have improved than the previous year. But this year, the report has factored in internal inequality on all those indicators,” said Dr Jagadish Chandra Pokharel, former vice-chairman of National Planning Commission (NPC).
What this means is that even though Nepal´s income growth, health and education indicators improved satisfactorily, the inequality on all of those indicators were huge.
The report shows the adjustment of inequality on income caused Nepal to lose 37.4 percent on income index. This was the biggest loss when compared among all South Asian countries.
“This indicates Nepal´s income inequality was widest among all South Asian countries,” said Dr Pokharel.
Likewise, similar adjustment of inequality has caused Nepal to lose 43.6 percent on education index and 19.5 percent on life expectancy index.
Interestingly, such adjustment of international inequalities in health education and income has caused some of the wealthiest countries to drop out of the HDI´s top 20 position.
For example, it has caused the United States to fall from fourth to 23rd position, South Korea from 15th to 32nd and Israel from 17th to 25th position.
“This indicates income distribution has worsened in many countries of the world,” notes the report.
The report ranks Norway, Australia and the Netherlands at top three countries in terms of HDI, while Congo, Niger and Burundi are at the bottom of this year´s rankings.
Referring to huge internal inequalities, Rober Piper, UN Resident and Humanitarian Coordinator for Nepal, stressed the need for more inclusive and equitable growth. “The developmental gains that Nepal experience in the past decade have not benefited all Nepalis equitably. This must be changed,” he stated.
HDR 2011 revolves around the theme of equity and sustainability and calls for shift in global focus on the way development is handled. Given that most disadvantaged people continue to bear the repercussions of environmental deterioration, even though they are contributing little to the problem of climate change, the report seeks the global leaders to integrate environmental issue in development policies, programs and approaches.
“The importance of understanding links between sustainability and equity is especially relevant for Nepal as the country has seen rise in inequality even when poverty reduction has been significant,” noted Piper.
Moreover, the country has started to see the direct impact of climate changes in the form of increased floods, melting glaciers and shifting seasons, cautions the report, urging for more immediate shift in policy priority so that already excluded and deprived communities and individuals are not left farther behind.
At the global level, the report urges the global leaders, who are preparing for UN Conference on Sustainable Development in June 2012 in Rio de Janeiro, to approach sustainability as a matter of basic social justice for current and future generations alike.
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