Human development up, inequalities persist

Kathmandu, Dec. 13

Nepal has made a slight improvement in the Human Development Index (HDI) in 2019 with 0.587 value against 0.579 in 2018.

With the score Nepal falls in the category of medium human development.

HDI of less than 0.550 indicates low human development, 0.550-0.699 medium, 0.700-0.799 high and 0.800 or greater shows very high degree of human development.

Minister for Finance Bishnu Prasad Paudel and Vice-Chairman of the National Planning Commission Prof. Dr. Pushpa Raj Kandel jointly launched the Nepal Human Development Report, 2020 in a virtual programme organised on Sunday.

In the last three decades, Nepal has climbed to 0.587 from 0.378 in 1990.

However, provincial inequality status is varied in terms of human development with Bagmati going far above the national average and Karnali lagging far behind.

Bagmati's inequality adjusted HDI value is 0.502 and Karnali's 0.375. Gandaki is ranked in the second position with 0.441 value while national average is 0.444.

Likewise, according to the report, there is a significant gap between the rural and urban societies as well – rural inequality adjusted HDI is 0.431 and urban 0.487.

Gender inequality index has pointed towards growing inequality last year as the score increased to 0.479 from 2018's 0.476. Highest gender inequality is in Karnali province and Himali region followed by Sudurpaschim and Province 2. Karnali's GII is at 0.558 while Sudurpaschim and Province 2 have 0.522 and 0.503 respectively. Gandaki is the most gender equal province compared to other provinces.

However, there were important achievements in terms of social, economic and political empowerment. Women representation at local level stands at 41 per cent, in province at 34.4 per cent, House of Representatives 32.7 per cent and National Assembly 37.3 per cent.

But the report has noted the existence of inequality according to the socio-economic group and geographical areas.

 

Unequal income

Nepal is a country with high income inequality with Bagmati having 168.4 per cent of the national average while Karnali, Province 2 and Sudurpaschim's per capital income (PCI) is just 29 per cent, 33 per cent and 31 per cent against Bagmati's PCI.

An individual in Karnali Province earns Rs. 49.81 while a person in Bagmati earns Rs. 168.4.

Similarly, Province 2 also lags in human property index. It has the score of 76 in HPI while Gandaki has 114 and Bagmati 112.

According to the report, median year of school education is 5.2, expected year of school education is 12.7, life expectancy 69.7 year and national per capita income US$2,784 (measured in purchasing power parity).

The report has concluded that the country needs to lessen the disparities between the rural and urban societies as well as among provinces.

"Policy gaps and other vulnerabilities have posed challenges to the sustainable development and country's graduation to the middle-income country," said Dr. Krishna Prasad Oli, Member of the NPC.

Likewise, there are quality issues and structural obstacles in education. The report has also concluded that all levels of the government suffer from poor accountability and weak governance system. The COVID-19 pandemic has also posed risk to the achievement made so far. Insufficient health infrastructure and obstruction in medical supply could worsen the situation further while children of the poor families are at high risk of poor physical and mental development.

Presenting the conclusions at the programme, Dr. Oli said that the country should focus on energy, agriculture and tourism for social and economic development.

FM Poudel expressed hope that the report would help in creating a path to the upgrading of Nepal to the developing country status by 2022. "However, we have to work hard to increase the national per capita income," he said.

Dr. Kandel said that although the country had achieved good results in various dimensions of human development, it should develop and implement policies and programmes for rapid economic development.

Published in The Rising Nepal daily on 14 December 2020.