Urban Poverty Reduction Through Local Governance in Nepal

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

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.

Keywords

Nepal Municipality Poverty Fiscal decentralization 

JEL Classification

O53 H70 I32 

Notes

Acknowledgements

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.

References

  1. Besley, T., & Coate, S. (2003). Centralized versus decentralized provision of local public goods: A political economy approach. Journal of Public Economics, 87(12), 2611–2637.CrossRefGoogle Scholar
  2. Faguet, J. (2004). Does decentralization increase responsiveness to local needs? Evidence from Bolivia. Journal of Public Economics, 88, 867–894.CrossRefGoogle Scholar
  3. MoLJ. (1999). Local self governance act, 1999. Kathmandu: Ministry of Law and Justice (MoLJ).Google Scholar
  4. MoLJ. (2007). The interim constitution of Nepal, 2007 (Eighth Amendment, May 28, 2010). Kathmandu: MoLJ.Google Scholar
  5. MuAN. (2003). Resource mobilization strategy for new municipalities based on Gulariya Municipality. Lalitpur, Nepal: Municipal Association of Nepal (MuAN).Google Scholar
  6. NPC. (2010). Three year plan approach paper (2010/11–2012/13). Kathmandu: National Planning Commission (NPC).Google Scholar
  7. Pindyck, R. S., & Rubinfeld, D. L. (1998). Econometric models and economic forecasts (International Edition). Singapore: Irwin/McGraw-Hill.Google Scholar
  8. Sepulveda, C. F., & Martinez-Vazquez, J. (2010). The consequences of fiscal decentralization on poverty and income inequality. Working Paper No. 10-2, February, 2010. Georgia: Andrew Young School of Policy Studies, Georgia State University.Google Scholar
  9. Silwal, S. (2012). Municipal resource generation system and its mobilization trends in Nepal: The experience of western development region. Journal of University Grants Commission, 1(1), 216–234.Google Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2017

Authors and Affiliations

  1. 1.Economics EducationTribhuvan UniversityKirtipurNepal

Personalised recommendations