'Sharp decline' in Nepal poverty

The number of people below the poverty line in Nepal has dropped by 11% in less than a decade, a new report says.

The report by the World Bank and Nepal's Central Bureau of Statistics (CBS) says that the drop is because of money sent home by overseas workers.

The improvement comes despite a nine-year Maoist rebellion that has strangled economic development.

However, other figures show that direct foreign investment to Nepal declined sharply during the current fiscal year.

Basic needs
"Foreign remittances have played a key role in reducing the number of poor people because almost one third of all Nepali families were getting the money," Yuvaraj Khatiwada, a member of the National Planning Commission, told the Reuters news agency.

Tens of thousands of Nepalese work in India, Malaysia, Korea and the Middle East. They sent $650m in the 12 months up to mid-July last year, compared with $184m eight years ago.

The joint World Bank CBS study says that 31% of the country's 23 million people are presently below the poverty line.

These are people who do not have access to basic needs such as food, health and education.
The figure was 42% in 1995.

The Director General of CBS, Tunga Shiromani Banstola told the BBC's Sushil Sharma that there have been improvements in housing, education, health and public services across the country.

Foreign remittances have played a key role in reducing the number of poor people
National Planning Commission member Yuvaraj Khatiwada
Per capita spending doubled to more than $200 a year during this period, Mr Banstola said.

Analysts say the latest findings are sure to please the authorities, coming as they do amid persistent concerns that the economy has suffered due to the long running Maoist insurgency.

They say there is still cause for concern as the study claims that the gap between the rich and poor has widened in recent years.

Figures recently released in the Kathmandu Post show that foreign direct investment to Nepal declined by 85% during the first nine months of the financial year that ends in mid-July, compared to the same period last year. Sphere: Related Content

10,000 take to streets in protest over Nepal's king

THOMAS BELL AND BINAJ GURUBACHARYA IN KATHMANDU

UP to 10,000 people marched through the streets of Kathmandu yesterday chanting "We want democracy" and "Down with autocracy", in the biggest demonstrations since King Gyanendra seized power in February.

In two rallies, demonstrators carried placards and shouted pro-democracy slogans, taking advantage of reduced restrictions after the king ended a state of emergency. But the marchers avoided the city centre where demonstrations are still banned.

Gopalman Shrestha, of the Nepali Congress Democratic party, said: "We will continue to protest against the king until full democracy is restored. We have teamed up with other parties and are working on a joint strategy to fight the king’s direct rule."

The government said the emergency was lifted because security had improved in Nepal. "Our security forces have been successful in controlling the insurgency in just three months and people are feeling secure," said the information minister, Tanka Dhakal, on state radio.

King Gyanendra seized power and imposed the state of emergency on 1 February, saying that 14 years of democracy had led to widespread corruption and allowed a Maoist rebellion that has cost over 11,000 lives to spread unchallenged.

Hundreds of political opponents arrested under the emergency remain in custody. Mobile phones are banned and the press is heavily censored.

The media are forbidden from criticising the government or printing news that may "damage the morale" of the security forces. Radio news is banned, including the BBC, which was formerly relayed locally on FM.

On Saturday, several student activists - between three and five, according to differing reports - were shot and wounded by soldiers during a meeting in Mahendranagar, 400 miles west of Kathmandu.

An army spokesman said the soldiers had been searching for Maoist rebels, but conceded that none had in fact been present.

The surprise lifting of the state of emergency followed Gyanendra’s return on Friday from a tour of international meetings in Asian capitals where the United Nations secretary-general Kofi Annan told him to "return to constitutional rule as soon as possible".

Shree Ram Bajagain, a student activist, said: "The king has double standards. He does one thing inside the country and there is another face he shows to foreigners. By withdrawing the state of emergency he is acting for the benefit of the international community to save himself from all sorts of pressure."

However, many in Kathmandu approve of the greater order that the king’s rule has brought to the city. Sita Pariyar, 24, who works as a housekeeper, praised the king’s pursuit of corrupt politicians.

"All the ministers are angry, but the king’s doing a nice job. I like it," she said. Sphere: Related Content