Urban Poverty Reduction Through Local Governance in Nepal

Part of the India Studies in Business and Economics book series (ISBE)


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.


Nepal Municipality Poverty Fiscal decentralization 

JEL Classification

O53 H70 I32 



The author is grateful to Dr. Maniklal Adhikary, Professor of Economics, the University of Burdwan, W B-713104, India, for his support and suggestions. However, the author takes responsibility for any remaining errors.


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Copyright information

© Springer Nature Singapore Pte Ltd. 2017

Authors and Affiliations

  1. 1.Economics EducationTribhuvan UniversityKirtipurNepal

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