The failure to redistribute gains of economic growth has been the net cause of civil war that erupted in Nepal in 1995. Bias in favour of urban-based growth attracted resources away from rural areas where 86% of the population live. This resulted in a fall in agricultural productivity and exports. This, together with the lack of alternative employment opportunities and poor governance significantly increased poverty and inequality in both political and economic dimensions. This unequal growth pattern forced disadvantaged young people from the rural and remote areas to join radical left wing forces (known as Maoists) to fight against the political system and economic policy, leading to the eruption of civil war in the mid 1990s. The war has done significant damaged to institutions, infrastructure and productive capacity of the country, which needs to be reconstructed and revived as soon as possible to reduce human suffering. While military aid is important to maintain law and order in the country, it does not address the root cause of the crisis. Since poverty and inequality are the roots cause of conflict, they should be addressed. This would mean additional investment in remote areas and development of a strong integration between rural and urban areas through a well-developed transport network to generate income and employment for the rural poor.
|Title of host publication||Poverty, Poverty Alleviation and Social Disadvantage|
|Place of Publication||New Delhi|
|Number of pages||9|
|Publication status||Published - 2007|