The Role of Agriculture in Poverty Reduction in Nepal

Nepal has made impressive gains in poverty reduction in the last one and half decades. Based on the national poverty line, the incidence of poverty declined considerably from 41.8% in 1996 to 30.9% in 2004 and to 25.2% in 2011 (ADB 2013). During the same period, based on the international poverty line of US$1.25 per capita per day (extreme poverty), poverty incidence declined from 68% in 1996 to 53.1% in 2004 and further to 24.8% in 2011. Based on the threshold for moderate poverty (US$2 per capita per day), poverty incidence declined from 89% in 1996 to 77.3% in 2004 and 57.3% in 2011.