Nepal 12th poorest country in the world: ADB

November 30, 2004
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The Asian Development Bank-a major multilateral donor to Nepal-has said that Nepal is the world’s 12th poorest country, with an annual per capita of US$ 241– the lowest in the South Asian region.

About 38% of its 23.2 million population live in poverty. The country’s economy is still predominantly based on agriculture, which is heavily dependent on the monsoon, the Manila-based Bank said in a statement issued on Monday.

“Nepal’s slow growth in recent years, high unemployment rate, and large proportion of the population living below the poverty line call for measures to increase the potential for jobs and income generation,” said Leah Gutierrez, an ADB Senior Social Sector Specialist.

ADB has approved a loan this week to provide vocational skills to thousands of people across the country.

Without a strong private sector to employ Nepal’s 200,000 new, mostly unskilled workers entering the labor force every year, many Nepalese must become either self-employed or work as unpaid family workers.

Further, an estimated one million Nepalese are working abroad, with 105,000 leaving the country in 2001/2002. However, one study shows that the majority of migrant workers have not even completed their basic education, the ADB said.

Remittance sent by Nepalis working abroad-mainly in the Gulf countries – is the main source of foreign exchange in the country. According to unofficial estimates, as much as 125 billion rupees is entering into the country every year in the form of remittance. nepalnews.com by Nov 30 04