Urban Poverty Reduction Through Local Governance in Nepal

Abstract

Urban poverty and increasing urban (municipal) population are the major concern in the development arena in Nepal. In 1954, the urban population in Nepal was 3% of the total population. However in 2011, the urban population residing in the country constitutes 17% of its total population. As such scenario, the formulation of policy strategy for the better life of such rapidly increasing urban population is to be done as early as possible. Fiscal decentralization has been taken as the policy strategy for reducing poverty in most of the countries. In this backdrop, this article intends to examine the association between fiscal decentralization and poverty reduction in the municipalities of Nepal. This study is based on the poverty head count ratio and fiscal decentralization variables adopted from the data of all (58) municipalities in Nepal for the period 1983–2010. The poverty measures and fiscal decentralization variables are used for the study from 1983 through 2010. The comparison in the state of poverty and fiscal decentralization before and after the enactment of Local Self Governance Act, 1999 (LSGA) in Nepal is to be analyzed. Descriptive as well as analytical method is adopted.

Appendix: Classification of Municipalities in Nepal

S.N.	Municipalities	Topography	Location	Generation	District	Zone	Region
1	Ilam	Hilly	Eastern	Old	Illam	Mechi	EDR
2	Bhadrapur	Terain	Eastern	Old	Jhapa	Mechi	EDR
3	Damak	Terain	Eastern	Old	Jhapa	Mechi	EDR
4	Mechinagar	Terain	Eastern	New	Jhapa	Mechi	EDR
5	Biratnagar	Terain	Eastern	Old	Morang	Koshi	EDR
6	Dharan	Terain	Eastern	Old	Sunsari	Koshi	EDR
7	Inaruwa	Terain	Eastern	Old	Sunsari	Koshi	EDR
8	Itahari	Terain	Eastern	New	Sunsari	Koshi	EDR
9	Dhankuta	Hilly	Eastern	New	Dhankuta	Koshi	EDR
10	Khandbari	Hilly	Eastern	New	Sankhuwasabha	Koshi	EDR
11	Rajbiraj	Terain	Eastern	Old	Saptari	Sagarmatha	EDR
12	Lahan	Terain	Eastern	Old	Siraha	Sagarmatha	EDR
13	Siraha	Terain	Eastern	New	Siraha	Sagarmatha	EDR
14	Triyuga	Hilly	Eastern	New	Udaypur	Sagarmatha	EDR
15	Janakpur	Terain	Eastern	Old	Dhanusha	Janakpur	CDR
16	Jaleswor	Terain	Eastern	Old	Mahottari	Janakpur	CDR
17	Malangawa	Terain	Eastern	New	Sarlahi	Janakpur	CDR
18	Bhimeswar	Hilly	Eastern	New	Dolakha	Janakpur	CDR
19	Kamala Mai	Hilly	Eastern	New	Sindhuli	Janakpur	CDR
20	Kathmandu	Hilly	Eastern	Old	Kathmandu	Bagmati	CDR
21	Kirtipur	Hilly	Eastern	Old	Kathmandu	Bagmati	CDR
22	Lalitpur	Hilly	Eastern	Old	Lalitpur	Bagmati	CDR
23	Bhaktapur	Hilly	Eastern	New	Bhaktapur	Bagmati	CDR
24	Madhyapurthimi	Hilly	Eastern	New	Bhaktapur	Bagmati	CDR
25	Banepa	Hilly	Eastern	Old	Kavre Palanchok	Bagmati	CDR
26	Dhulikhel	Hilly	Eastern	New	Kavre Palanchok	Bagmati	CDR
27	Panauti	Hilly	Eastern	New	Kavre Palanchok	Bagmati	CDR
28	Bidur	Hilly	Eastern	New	Nuwakot	Bagmati	CDR
29	Birgunj	Terain	Eastern	Old	Parsa	Narayani	CDR
30	Hetaunda	Hilly	Eastern	Old	Makwanpur	Narayani	CDR
31	Kalaiya	Terain	Eastern	Old	Bara	Narayani	CDR
32	Bharatpur	Terain	Eastern	Old	Chitwan	Narayani	CDR
33	Ratnanagar	Terain	Eastern	New	Chitwan	Narayani	CDR
34	Gaur	Terain	Eastern	New	Rautahat	Narayani	CDR
35	Pokhara	Hilly	Western	Old	Kaski	Gandaki	WDR
36	Lekhnath	Hilly	Western	New	Kaski	Gandaki	WDR
37	Byas	Hilly	Western	New	Tanahun	Gandaki	WDR
38	Gorkha	Hilly	Western	New	Gorkha	Gandaki	WDR
39	Waling	Hilly	Western	New	Syangja	Gandaki	WDR
40	Putali Bazar	Hilly	Western	New	Syangja	Gandaki	WDR
41	Baglung	Hilly	Western	New	Baglung	Dhaulagiri	WDR
42	Siddharthanagar	Terain	Western	Old	Rupendehi	Lumbini	WDR
43	Butwal	Terain	Western	Old	Rupendehi	Lumbini	WDR
44	Tansen	Hilly	Western	Old	Palpa	Lumbini	WDR
45	Kapilvastu	Terain	Western	Old	Kapilvastu	Lumbini	WDR
46	Ramgram	Terain	Western	New	Nawalparasi	Lumbini	WDR
47	Ghorahi	Terain	Western	Old	Dang	Rapti	MWDR
48	Tulsipur	Terain	Western	New	Dang	Rapti	MWDR
49	Nepalgunj	Terain	Western	Old	Banke	Bheri	MWDR
50	Birendranagar	Terain	Western	Old	Surkhet	Bheri	MWDR
51	Guleria	Terain	Western	New	Bardiya	Bheri	MWDR
52	Narayan	Hilly	Western	New	Dailekh	Bheri	MWDR
53	Dhangadi	Terain	Western	Old	Kailali	Seti	FWDR
54	Tikapur	Terain	Western	New	Kailali	Seti	FWDR
55	Dipayal	Hilly	Western	Old	Doti	Seti	FWDR
56	Bhimdutta	Terain	Western	Old	Kanchanpur	Mahakali	FWDR
57	Amargadhi	Hilly	Western	New	Dadeldhura	Mahakali	FWDR
58	Dasarathchand	Hilly	Western	New	Baitadi	Mahakali	FWDR

1. Note
2. (1) Kathmandu is Municipal Corporation; Biratnagr, Birgunj, Lalitpur and Pokhara are Sub-municipal Corporation and remaining 53 cities are Municipalities
3. (2) Gorkha, Ghorahi and Bhimdutta were previously called Prithvi Narayan, Tribhuwan Nagar and Mahendra Nagar respectively
4. (3) EDR, CDR, WDR, MWDR and FWDR are the abbreviation form of Eastern Development Region, Central Development Region, Western Development Region, Mid-Western Development Region and Far-Western Development Region respectively
5. (4) Recently declared municipalities are not considered for the study because of the unavailability of data