One disaster away

Poverty is Nepal’s inheritance, and a stubborn one. For decades, it has been a defining feature of Nepal’s identity. State policy and the grit of families have pushed the rate down over time, but not by nearly enough. Many things hold back progress. Disasters are among the cruellest.

The National Planning Commission has found that poverty rose by 2.7 percentage points in the municipalities hit by the Bhotekoshi flood on August 26. The figure covers only the affected areas. Still, it confirms what Nepal has been slow to admit: disasters are a major reason poverty does not fall faster. The structural causes are familiar. Farming is expensive and pays little.

Industry has failed to take root. Infrastructure projects drag on for years, and jobs are scarce. The climate for investors and entrepreneurs is hardly encouraging. The state’s presence in social security is thin, and many announced programmes are ineffective or have failed outright. Out-of-pocket health spending pushes roughly 600,000 people into poverty every year.