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.
|Title of host publication||Poverty, poverty alleviation, and social disadvantage|
|Subtitle of host publication||analysis, case studies, and policies|
|Place of Publication||New Delhi, India|
|Number of pages||9|
|Edition||40 ( Part-4)|
|Publication status||Published - 2007|