Poverty in Nepal – 20 Reasons Why Nepal is Poor with 8 Powerful Ideas on Solution

Poverty in Nepal:- Nepal is landlocked country and is famous for the tourism and cultural sector only. As we know that the Nepalese people are mostly dependent on the agriculture sector which shows that the capability of the people.

The government of Nepal has no any interest in the development of the country. The polluted politics have made everything polluted. All the things and the product which are producers in the country are facing the difficulties to export but the government is sleeping in the bed of Crores.

The Nepalese are very laborious in nature so the people of Nepal are itself dependent and live the life by doing hard work.

The country economy depends upon the Remittance of the foreign country which is sent by the Nepalese youth who are sweating in the foreign land. They are working like the machine and the politicians of Nepal are taking and sucking that amount as the tax.

There are many difficulties which are facing by the Nepalese youth and Nepalese. We are like the lion in the cage that means that we have all thing but even though we are hungry and thirsty.

The person is suffering from the many diseases and the leaders are suffering from the money earning disease. The Nepal has everything which will bring the great change in the formation of Nepal change.

Nepal is rich in many infrastructures and minerals but the government does not want to invest the capital so that the production and independence will be reduced. Although we have the great sources of water we are thirsty and we do not have the drop to drink.


20 Major Causes of Poverty in Nepal – Facts and Reasons Why Nepal is Poor

1. Youth Awareness

The Nepal is only the country of the world which import the water from the world to drink even though having the great water tank. The Nepalese water is going wastes but the government of Nepal’s eye is not going to them.

The Nepalese leaders are busy in buying the houses in the Kathmandu and in the foreign country. The bad politics and the irregular checking in the corruption sector have damaged the country and the people economic conditions. The person thought is the first thing to see the world and the things.

If he is positive in nature then absolutely he or she will see positives only even in the negatives things but if the viewer attitude is negative then he or she will see only negatives even in the positive factors.

There are many men who have made their life like the moon which shines even in the night. And others who have made the life like the animal house, and next one who is grown in the dirtiness of water like the lotus. These are the characteristics of the people who convert and make the life precious and praiseful.

Everything is possible in the Nepal if we join the hands for the development of Nepal. The tree is not itself become the big Firstly they were in the seed and later on they grow and builds their identity.

The Nepal will adopt the great change if all the youth will be unified and walk the same steps and invest the same efforts in the development of the country. The personal identity is determined by the identity of their country from where he or she belongs to.

2. Unskilled manpower

Nepal has the largest scope and the markets but due to the lack of skilled manpower, it’s difficult to bring them in use. The country has much manpower but not have the idea to use it.

The lands are barren, the water is flowing, the Hurbs and precious Shrubs are wasting, many foreign brokers have kept an eye like an eagle to scrap the capital and again fly up in the high of the sky.

The great efforts are only be implemented if the implementer is great. The rat can’t pull the cart but the ox can do it. Similarly, the man is not only born for enjoying and entertaining the life but also they have the responsibility to change the society and the country.

If they become a success in that activities keep the responsibility of changing the world. The world is going polluted day by day which is also increasing the problems and disease to the persons. the person enjoys the life and sleeping in the house that has no upper flats.

It’s empty tank which is shining from outside. So to produce the better product we have to give better input. Same the problem is going to the Nepal which is promoting the poverty instead of reducing.

The problem of any solution is not the difficult if we want to adopt it. But the sounds noise much where there is a lot of utensils. The person and the intelligent are fighting among them that they understand more than other. Nepal is not poor in the infrastructure and the resources but is behind in knowing techniques of utilization.

The plane can be flown if the pilot is not trained. Besides, the leader and the politics are non-trained and not educated then how can the Nepal be developed.

Let’s discuss the related topics which are making the country poverty:

3. Lack of manpower

As we know that the country economy is dependent on Remittance which shows the effects and the capacity of Nepal. The investors are also pulling their partners from investing in Nepal.

The great Nepal can be formed if the country has the power to use the resources. The many youths are wasting their labors in the foreign country is due to the lack of employment opportunity.

terai madhesh people in Nepal
terai madhesh people in Nepal

The man and the youth are mostly outside of the country because they do not see any future in their own motherland. The lack of employment opportunity is making the people obligation to traveling the foreign country.

The person doesn’t want to believe away from their mother and the family but it is their obligation to do so. The one bad stomach show the world if we do not do the work then it will be difficult to survive.


4. Government is Passive

Nepalese youth is the obligation to work at the temperature of 50 degrees. The government of Nepal does not do any supports in the foreign country because it does not have power.

If the government use the available manpower and the youth of the country in the path of development, then it will be the miracle and the map and the lights of the Nepal will change very fast.

The manpower is the great efforts of the country which can bring the great change at the very short period. The Nepal will not be itself change. To change the Nepal Firstly the Nepalese should be changed.

The persons of Nepal are very intelligent and patriotic too so the government does not have to face many obstacles to the building if they forward their steps in the thoughts of developing the country in any bade.

Parliamentary democracy nepal
Parliamentary democracy Nepal

5. Traditional technology

There are many organization and the domestic industry which are even following the traditional technology or the machine for the production of the goods.

So that type of the industry is mostly facing the crisis of loss and quality. There are many industries in the Nepal which are very processing their products from the old machine.

The productions effect many things for the country and for the market too. If the industry’s machine is not producing the demanding units then it will be difficult for the company to fulfill the demand of the customer.

But if the country adopts the new technology then it will reduce their production cost too due to huge numbers of productions. There will also not the increase meant of the price in the products.

budget briefcase of Nepal
budget, Nepal

6. Industry

The price of the products will reduce and the demand can be fulfilled. But in the Nepal, mostly industry have adopted the old technology which does not create the extra job.

If there is an adoption of new technology than the new and the more man is needed to operate which creates the job opportunity. This is also the one factor to reduce the poverty. The industry of Nepal is running and operating in their own principles.

So it’s also one of the best reasons to being back in the industrial world. And the Nepalese industry is limited within the domestic territory. There will be the inflation problem if there is less output in the comparison of cost invested in the raw materials.

7. Value of money

The problem of inflations will create lots of problem in the nations and one of them is the poverty too. If there is no money and the value of money is decreasing then the customer can’t buy the goods from their sufficient income. It will be difficult to survive.

The person income is limited but the desire has no barriers. The adoptions of new technology help in the production of goods in the huge numbers. And if there will be the productions of the goods in the huge number of less cost of raw materials and the cost of labors than the price of the commodity will be less.

The demand will be also fulfilled and there will also be the needs of the manpower and skilled technicians to run the advanced technology and the machine.

counting Nepali Rupees Paper Money
Counting Nepali Paper Money

8. Lack of industrialization

The economy can’t fully depend on the agriculture and can’t afford the weight of economy. There are many domestic industries of Nepal which are working in the country. But there is the lack of international industry which is helpful to the country of taking the tax.

The government rule is like the game of playing the hockey with children where the rules are implemented according to the choice. Nepalese market is facing the problem of qualitative product which is difficult to get.

Where there is the availability of the groups of industry, the customs are of the benefit as they got the qualitative product at the low price due to the competition among the products and the company.

9. Taxation

If the country opens the door of establishing of the industry in the Nepal then there will be the creation of many employment opportunities which will promote the life of Nepalese and the economy of Nepal.

The Nepalese economy is depended upon the agriculture most not in the sector of industrialization. The government does not ban any tax in the agriculture.

But the production of crops from the agriculture is very huge in number. The tax is not borrowed from the agriculture sector which is also the major cause of downward the economy.


10. Government investment

I think it might be the good decisions from the government side but it also the facts that there is the close of tax door.

But if the government increases the industrialization sector then there will be income of many taxes which will make the nations rich and if the nations will become rich then there will not be the inflations and much more.

The economic conditions denote the economy of the person living in the country. There will occur the lack poverty if the government is able to collect the lots of tax. The government also invest in many projects which also creates the employment doors.


11. Small Market

The Nepal is limited in the short area of one Lakh Forty-Seven Thousand and One Hundred Eighty-One Square Kilometer. Nepal has the very short market as it has very less population.

The industry or the investor only invests their money by looking the market structure. The person and the consumer only consume the needy things which are most important for them.

The customer has many choices and the desires but they have only limited sources. They want to buy the new product which came in the market but due to the less limited resources, they are obligated to buy the alternative choices.

12. Traditional market

The market is not the places of buying and selling of the goods but also the publicity of the goods. If we sell the product online then for us, that is the market. Simply means the market is the places where we buy and sell the products at given or discounted price.

But according to the market definitions, online business is also the one type of largest market structure. People of present era have become the change and advanced. They don’t want to waste their time and the money much due to the busiest age.

street vegetable shopper old aged female
Street vegetable shopper old aged female

But they only buy the product which is compulsory for them. There is least population who buys the product even without of need and for passion only. The businessman first views the market structure that their products get to sell in those market or not.

If their mind shows the positive signal then only he will be encouraged to invest and establish the industry and different organization. The Nepalese market and area are limited within the country.

If the government push their internal interest in the field of industrialization then there may increase the chance of investment by the national and the international businessman.

13. Political instability

Nepal is the great country famous for but not forehead in the development. Nepal is the country of god gifts where all the natural tourism sector lies and the god also burns.

The person of Nepal is spending the life of playing the games of football that is played only of the hours. Then they spend rest of the time by playing the card or drinking the wine or visiting and another enjoying moment. There lies the great risk to operate the country.

As the present Nepal is constitutions, it’s difficult to make the country operating in the path of law. There is no cage which can not bind the lion. Person’s nature is like the lion of the forest.

Political instability parliament of nepal
parliament of Nepal

The person thinks himself or herself as the lion. The man or the youth of the country are sweating outside of the country in the foreign land. The government does not have any tension to bring them and give them employment opportunity.


So that the country economy will be better and outstanding in the list of the developed country.

The presence of senseless leader and absence of youth in the country are lacking the values, norms, and the power to lead the country. If there will not be the youth then the country will be treated as the country of the lane.

And the development also not catches the speed of improvement. The environment plays the great role in achieving the best result.

14. Transportation

Without the best platform, the railways do not run speed. Although the country is wanting the perfect leader and the crowd of youth which will match their steps together in the way of development and support to form the better economy.

Persons thought are mostly the priority thing which mentions their future works and the character of doing and performing the works. The better output can be obtained by only the better input. So your works and the methods of performing the works determines your achievement.

If the circumstances that come in front of our task then the responsibility of bearing compensation is ours. Similarly, the political instability is breaking the development and has blocked the foreign investment in the country. These are the major problems to get a cure.

The political leader should improve their habits and the thoughts toward the development of the country how the country steps the long in the development’s race.

15. Public instability

The problem of public instability creates the problem of political instability. It’s the great task for the public to do if the instructions came from the upper level. The problem of pointing the self-identity in the eyes of the public is going on by the political leaders.

The country will only be developed if they have a good political leader that show the way and have the plan and strategy to make and bring a great change in the country. It’s too difficult to operate the country in the single moment.

So there is need of the political leader having the thoughts and the idea that can moderate the moment. If the country gets good leader then there will be the development on the fast track. The person of the country and the economy of the country depend upon the leadership.

public instability transportation truck Nepalese politics
A Truck in Queue

The person inside the country is treated the god and the power to change the government. The person is measured as the value if she or he is educated and not educated. If the country people are educated then there become easy to make the change the country.

But in the context of Nepal, there are opposite effects. Mostly the people of Nepal are uneducated and follower of the least great person who exists. The person is mostly of greedy in nature, and they only perform the tasks according to the upper decisions and instructions.

All the party of the Nepal has established their member and the group of men in every district and the area.

So there is not fixed when will the strike starts in the Nepal. Unlimited strikes in the Nepal have become common due to most practices. The person and the political leaders in the country start doing strikes even in the small issue. They do not think about the future of the country, their intention goes only to think about their future.

16. Brokers availability

Nepal is suffered from the problem of brokers too. As we know that the people of Nepal are mostly touched with agriculture. Most of the Nepalese spends their life by cultivating the land and farming the fields.

The grown of crops makes the full of the farmer’s stomach. The farmers of Nepal are very laborious and hard work, they want to grow the more and sell the more. But due to the presence of broker in the market, the farmers do not get the good price of their goods.

The actual price of the market is not known by the rural farmers because they are mostly uneducated. The mediator between the farmer and the market get the good benefit and commission.

Brokers availability Progess Symbol Success Uptime Image
Symbol of Success

So that the product of the good goes expensive. The real price of goods is very less if the goods are directly delivered by the farmers. But due to no direct contact with the market with the farmers, they are also suffering from the loss in the agriculture as they don’t get the profit in comparison to investment.

The farmers have to bear many cost and expenses while cultivating the lands and in the process of the crops. The problem of shorting the broker must be at the rapid speed. There should be made the governmental law to forbid the broker and the mediator.

The problem of making the distance should be built and try to make it closer in the relationship between farmers and the market.

If the customer gets the goods at the low price then the people will consume the goods more. And the farmers also get the good price of their investment and they encourage the other to do agriculture.

As according to the economist view agriculture is the best factor to make the economy stable. If the person and the country are not touched with the agriculture then the country has to face the problem of inflation. It’s because the industry of the country can only produce the good and the service from the raw material.

If there is an absence of the raw materials then the problem of products occurs which leads the scarcity and other inflation problems. And if the country is not producing the raw materials and has to import from the other country then the problem of dependency falls in the production of the goods.

The different problems like the goods can be imported through their decisions and time only. We have to face the problem of many things. And the quality of the production can be affected.

17. Fewer savings

The other major problems of Nepalese are fewer savings. The most of the Nepalese are uneducated and don’t know the value of savings. The persons of the Nepal are more passionate about the goods.

They are high class in living and wearing the dress. The person of Nepal mostly spends their money in drinking wine, smoking and enjoying the life. The many youths have become the victims of drug addiction which may bring the greater change in the family. The hurricane of addicted youth may spoil the life and the nation.

If the personal income is more than they expend more but in the context of Nepal, mostly the youth are facing the unemployment. Although their basics needs are not controlled and fulfilled from their short sources of income. The government has slept and become the dumb which do not listen to the voice of the youth and the people.

Due to lack of job opportunities, many of the youth is an obligation to use their brainpower and manpower in less salary and income.

They are not getting the actual values of their works and the knowledge. And the basics needs are also not fulfilled by their income. The consumptions values are more than the value of achieving income.

If the person gets the job of good salary and they gets the knowledge and importance of savings than the problem itself gets solutions. Fewer savings of income affects the country’s economy very much.

If the manpower is unemployed then they have no any other sources to spend the life by fighting the inflation. If they do not have any job then they don’t get any income and they have no money rest after the consumption. If they have no money to save then how can the investment extend?

18. Lack of education

As we know that this is the blood of the students and the most needed things that must be present in the human beings. The great leaders of the world Nelson Mandela have told’’ education is the powerful weapon which can use to change the world’’.

So if you want to see the change of the nations then there must be the change of the education system. It the power and the motivations which affect the person’s mind that will be the help to make the country economy best.

The good educations give us good and skillful manpower which makes the country developed. Besides, the development of the nations Firstly the educations system should be bitterly enhanced.

If the country becomes educated then the problem of unemployment will itself goes away. Because the skills and the techniques of the manpower will create the job. If there occurs the employment the country itself becomes strong.

Children of Nepal Are Struggling for to fulfill thier thier life's needs
Children of Nepal Are Struggling to fulfill thier life’s needs

19. Non-promotion of tourism sector

The bad political conditions and mismanagement of the country are spoiling the identity of Nepal and Nepalese. Due to lack of promotion in the tourism sector, the foreign income is least imported.

As the increase meant in tourism increases the income and economy of the country. The tourist comes to visit Nepal but they are not the safe and can’t visit whole the nation. They are afraid of loot and kidnapped may happen with them.

The governments did not open their mouth in the topics of the tourism sector. Promotion and conservation of tourism sector should be bitterly enhanced.

So that the foreign feel the homely feeling in the Nepal’s land and the environment. The government should make the environment favorable to tourist so that they can enjoy and entertainment their time.

traveller family mother son daughter koshi river seeing beautiful scene
Seeing Koshi river



20. GDP



Japan Economy Grows 0.5% QQ in Q3, US Consumer Sentiment Up to 5-Month High, Russia Trade Surplus Above Expectations in September, Hong Kong GDP Growth Beats Expectations in Q3, German Inflation Rate Confirmed at 2-Year High in October, Malaysia GDP Growth Beats Estimates in Q3, South Korea Leaves Monetary Policy Unchanged, US Posts $44 Billion Budget Deficit in October.

Similarly, US Jobless Claims Drop to 4-Week Low, Ireland Falls Back Into Deflation in October, Portugal Inflation Rate Hits 1-Year High in October, Greek Jobless Rate Edges Up to 23.4% in August, Philippines Leaves Rates on Hold; Raises Inflation Forecasts, Philippines Trade Gap Narrows to 6-Month Low in September.

And, New Zealand Cuts Key Rate to 1.75%, Mexico Inflation Rate Hits Highest Level in 18 Months, Ghana Inflation Rate Lowest Since 2014 in October, Portuguese Jobless Rate Falls to Nearly 7-Year Low in Q3, Brazil Inflation Rate Down to 7.87% in October, UK Trade Deficit Widens Sharply in September…..

Ideas on solution of poverty in Nepal

Nepal is one of the least developed countries in the world. The official data as per 2010/11 affirms that almost 25 percent of Nepalese people live under the absolute poverty line.

Apart from that, the human poverty index shows that 44 percent of people of Nepal are deprived of basic health, education and even access to resources making Nepal one of the highly poor countries in the world.

The government of Nepal is regarding the development of the country as the basic goal and is fully committed to that as well. However, the poverty level of Nepalese people is putting a severe challenge on how this goal of developing nation can be achieved by the defined target.

To uplift the status of Nepal and alleviate the poverty from Nepal, the government need to empower poor and marginalized as well provide them basic health services, employment, and education. If these are kept as the agenda of development planning in Nepal, I am sure Nepal will be able to achieve sustainable development.

When it comes to alleviating poverty from Nepal, every individual residing in Nepal, poor or rich should contribute their bit. Development is a slow process and it would be stupid to expect it overnight. Years of contribution from the government as well as individual people can successfully lead to sustainable development.

So, each individual should contribute to alleviating poverty from Nepal from the there side as well while the role of government is a significant requirement. Below are listed few of the points that can help to alleviate poverty from Nepal.

1. Educating:

Education is the core reason behind every successful nation. Most of the developed nations like USA, China, and Japan has the literacy rate of above 90 percent. While Nepal has the literacy rate of just 67 percent.

So much so that, the female literacy rate is just above 50 percent which makes Nepalese women less literate. So, one of the solutions to poverty in Nepal would be educating the women of the nation.

Education of women impacts the rest of the society in which she resides. If a woman of a family is educated, then the entire family gets enlightened as she would pass on her education to her children.

Also, when people get educated, they can work in different organizations and earn living thereby reducing the poverty from the nation.

children are siting on the firewood - poor poverty in Nepal
children are siting on the firewood.

2. Creating jobs:

Underdevelopment, as well as unemployment, is the core of poverty. When people are unemployed, their sources of income diminishing leading not only the family to poverty but also the entire nation to degradation.

Therefore, the great way to reduce poverty in any underdeveloped country would be to create productive jobs. When people get a job, their source of income increases thereby reduce the poverty from the nation. Therefore, creating a favorable situation for flourishing the industries would be the basic requirement of any underdeveloped nation.

If the political, legal, as well as the social environment, is favorable for upcoming entrepreneurs, then I am sure people will look up for creating new ventures and provide jobs for thousands of others.

3. Raising incomes:

Raising income or wages of the workers and employees is one of the solutions for poverty in Nepal. The white color workers get very less salary and wages which are not even enough for daily life.

So, raising the minimum wage can potentially increase the well-being, health of people thereby raising the living standard of people. No doubt, raising the minimum wage of every worker can help people get out of the miserable state of poverty.

4. Micro financing:

Microfinance is basically defined as the supply of loans and other financial services to the poor. Right now, people of Nepal are far from the reach of financial services.

Most of the people living in rural areas are financially excluded and are far from basic financial services including banking services. One solution to poverty would be to provide microfinance services to people via which unemployed people can start up their own small business and earn living.

5. Providing vocational training:

In Nepal, most of the people are illiterate and lack formal education that prepares them for getting jobs.

For those people lacking formal education, vocational training can be given that makes them skilled for jobs like sewing, tailoring including other streamlined jobs. For this, the government should give training to the community people in a mass and help them be trained in works.

6. Engaging oneself into active investing:

Investing in productive sectors, be it in shares or in other investment companies can help people multiply money. Even if people have less money, they can invest it in primary share market and hold the shares to earn more in next few years. So, rather than just keeping money in a wallet, Nepalese people should invest in different sectors.

7. Transparency in Government Spending:

Corruption in the government sector is very high in Nepal due to which rich are becoming richer while poor are becoming poorer. To reduce corruption and lead the country to economic development, there should be transparency in government spending.

When the government’s spending is transparent, it allows all the citizens to see where their paid taxes are and how it has been in use.

8. Increasing remittance and investing it in the productive sector:

Today, the trend of people going abroad for the job is increasing very highly. A lot of Nepalese people are going are in different parts of the world and they are sending lots of remittance to Nepal.

While the remittance is increasing very highly, most of the money is being spent in consumption of goods rather than in investing. One of the best ways to solve the problem of poverty would be to put that remittance money in the productive sector rather than just spending it.

These are few of the probable solutions for poverty in Nepal. For this, government, as well as individuals, should have been more active and engage in themselves in investing and being more conscious while spending.

Author: Asmita Sharma and Dipak Sah