Conflict and Development in Nepal

Despite politically difficult situation and the presence of armed conflict, Nepal's achievements in many socio-economic indicators, especially between 1996, the year when conflict started in the country and 2004, when the intensity of conflict was at a higher level, have been remarkable. The incidence of poverty fell from 42% to 31% mainly because of rapid increase in remittances income, increase in agricultural wage rates, speedy urbanization, and reduction in dependency ratio during the same period. Nepal Living Standard Survey (2003/04) shows that Nepal experienced all round improvements in socio-economic indicators between 1996 and 2004.