A large number of people in Nepal are under poverty trap caused by lack of access to education and healthcare, poor infrastructures, rising unemployment and market and Institutional failures. The National Statistics Office (NSO) report shows that 20.27 percent of Nepalis are in Multidimensional Poverty down by 4.93 percentage points compared to 12 years ago. Around 6 million Nepalis struggle to make up basic needs. Despite poverty reduction, it still remains one of the poorest countries in the world.
Furthermore the NSO report shows that Sudurpaschim, Karnali and Madhesh Provinces are in lower levels both of the Multidimensional Poverty Index (MPI) and per capita GDP compared to other provinces of the country. The Multidimensional Poverty Index (MPI) uses 10 indicators to measure poverty across three dimensions: health, education, and living standards, which are: nutrition, child mortality, years of schooling, school attendance, sanitation, water, electricity, cooking fuel, flooring and roofing and assets.
Moreover,these three provinces are situated in two blocks of Nepal – the first is plain lands between Koshi and Gandak rivers south of Chure mountains known as Madhesh Province and the second is the entire part west of Karnali river, which are known as Karnali and Sudur Paschim Provinces. Moreover, these provinces have been bordered with the world’s worst Multidimensional Poverty Index (MPI) and densely-populated border districts of India and underpopulated poor border counties of Tibet of China.
Previously in history, these provinces were the most prosperous states. Doti district of present Sudurpaschim province was an ancient powerful kingdom, which ruled up to Kumaon region. Similarly, in the past, the present Karnali province was also a powerful and prosperous state.The capital of the Khas Kingdom was Sinja in present-day Jumla district. The kingdom expanded to a great extent to Garhwal in the west, Mansarovar and Tibet in the north, Gorkha–Nuwakot regions in the east and Kapilvastu with large areas of Terai in the south. Similarly, in the history, the present Janakpur was known as the capital city of Mithila and Viseha, ruled by the father of Goddess Sita, King Janaka, which was was a very prosperous region during Ramayana period.
Why these provinces remained poorest and underdeveloped compared to other provinces in Nepal. There could be many reasons, however the delay in road connectivity and negative thoughts of Panchayat era rulers seem to be its major causes. In 2000, the Mahendra Highway reached the far west region of Nepal only after thirty years of completion of the eastern section of the highway. Due to this delay in road connectivity, the highway towards north from Kohalpur and Attaria also started lately and still not a single reliable highway from south to north has been completed in Sudurpaschim and Karnali provinces. The connectivity has been one of the major problems for these provinces to be poorest and underdeveloped. And as far Madhesh province is concerned, among others, the rulers in Panchayat era had least priority to this region due to bomb attack on King Mahendra by freedom fighters in Janakpur
The people who have historically suffered on the provinces from poverty are – persons with disabilities, dalit communities, women, landless persons or those with very few assets, bonded laborers, illiterate and unemployed populations. They have continually been lacking opportunities , and support and have been compelled to live in substandard conditions on all affairs of the state and society as well. These provinces have proportionately high problem of untouchability, superstitions, child marriage, child labor with Chaupadi and Deuki system in Sudur Paschim province and dowry system, female infanticide, loan shark, and the history of prejudice against other than Madhesis ethnicities in Madhesh province. The border populations of Madhesh province are comparatively more underdeveloped than those across Mahendra highway.
Due to underdeveloped road infrastructures in many parts of these provinces, students and the general public have to walk hours to reach schools and hospitals and in case of health emergencies the situation becomes worse. As a result of economic hardships and lower employment opportunities, the majority of the working population migrate in high numbers to foreign countries for employment – from Karnali and Sudur Paschim provinces to India and from Madhesh province to Gulf countries. A small number of northern bordering people from Humla go to the town of Taklakot in Tibet for seasonal employment.
Except Birgunj, other districts of these three provinces do not have the good facilities for international trade, such as trade and transit facilities with dry ports in customs points. It is expected that the proposed Dodhara Chandani Dry Port in Kanchanpur near the Indian border and Hilsa Dry Port in Humla districts near Tibet border would increase trade and employment opportunities in Sudur Paschim and Karnali provinces. Moreover, these two provinces have the capacity to produce one third electricity from the hydropower potentials of Nepal, however only negligible electricity has been harnessed there.
Despite being full of scarcity and underdevelopment, there are also some well developed cities in these provinces like Birgunj and Janakpur in Madhesh province, Dhangadhi and Bhimdatta in Sudur Paschim province and Birendranagar in Karnali province. Birgunj and surrounding areas, the economic hub of the nation, have the highest concentration of large industries and largest trading points in Nepal. Moreover, the many districts of these provinces have high potential for tourism development. As entire Madhesh province and plain districts of Sudurpaschim province are important bread basket areas of Nepal, the government should take the lead role by attracting domestic and foreign investment for modernization of the agricultural sector. Moreover, Karnali province has the highest potentials for ganic food, fruit and medicinal herbs farming, which is facing the problems of storage, transportation and marketing as well. The government should offer special relief packages to support these sectors.nThe government, donors and private sector double their investments to support development and employment in the provinces by constructing and facilitating the establishment of Small and Medium Sized Industries (SMEs), tourism and other infrastructure for development and employment generations. Last but not least, the expansion of quality educational and health institutions, especially technical and medical and the early completion of Postal Highway, Karnali Highway and Mahakali Highway are considered to be lifelines for development and poverty reductions in these provinces.