Poverty, Inequality,

Unemployment & Human

Resources
Poverty

Poverty is the inability to sustain some minimum level

of living. i.e lack of nutritious food, clothing, shelter,
primary health, basic education and security
Poverty is the situation where people are deprived of
basic need, basic rights and basic opportunities for
their livelihood.
People earning less than $1.9 fall under poverty
 Types of Poverty

1.Absolute Poverty
 Absolute Poverty is the situation where people are
deprived of basic need, basic rights and basic
opportunities for their livelihood.
 Nutritious food, clothing, shelter, primary health,
basic education and security are lacking in absolute
poverty.
 Unable to maintain basic level of living
2. Relative Poverty

 Relative poverty is the situation in which people has

enough income to sustain life, but it is low compared
to the rest of the community.

 It is the unequal distribution of income.

 It exists in developed countries also

 Causes of Poverty

High population growth

Low Economic growth

Deficiency of resources

Subsistence agriculture

Low industrial development

Old technology

Unequal distribution of income

Underutilization of local resources and

environmental pollution
Inadequate socio-economic infrastructure

Political instability
 Measures to Poverty Reduction

Create Economic Opportunities

Expansion of social services

Increase the access and participation of poor

Expansion of employment opportunities

Food pricing and distribution policy

Targeted programs

Transfer and safety nets

Equity enhancing policies

Institutional development

Women empowerment
 Present Situation of Poverty in Nepal

According to Nepal Living Standard Survey III,

2009/2010 people living an average annual income
of less than Rs 19,261 are defined as people below
poverty line.
Initially poverty at the year 1995/96, 41.76% people
lived under poverty line but this has dramatically
changed to 18.7% in 2018.
 Concept of Inequality

It is known as the gap between rich and poor,

income inequality, the wealth gap

Situation in which income and wealth are distributed

unequally among the people of a nation.
Gini coefficient, Lorenz curve etc are used to
measure inequality
 Causes of Economic Inequality

Generation of inadequate employment

Unequal distribution of asset
Gender discrimination
Property rights
Geographical variation
The difference in education, training, and
opportunities
 Measures to reduce the Inequality

Investment in economic and social sectors

Progressive income tax

Enforce a living wage

Equality of opportunity

Social security
 Unemployment

Individuals who are capable and actively seeking a

job but are unable to find a job
The state of being without any work yet looking for
work is called unemployment.
Unemployment is measured by the unemployment
rate, which is the number of people who are
unemployed as a percentage of the labour force
 Types of Unemployment

Open Unemployment

Disguised Unemployment

Frictional Unemployment

Structural Unemployment

Cyclical Unemployment

Seasonal Unemployment

Underempolyment

Educated Unemployment
 Causes of Unemployment in Nepal

Slow development of the industrial sector

Insufficient foreign investment
Underutilization of natural resources
Agricultural is the main occupation
Theoretical education system
Defective government policy
Slow economic growth rate
 Measure to Create the Employment Opportunities

Education and Training

Improved geographical mobility
Development of large scale project
Attraction of foreign investment
Decentralization of industrial activity
Assisting self employed people
High rate of capital formation
 Human Resource

Unit of active manpower or labor force of the age

above 14 yrs and below 60 yrs having a high level of
education, skill, and knowledge, experience, health
physical condition and rational mental condition.
Physical and mental quality of the people of the
country is known as human resource.
 Role of HR in Economic Development

Utilization of natural resources

Basis of agriculture and industrial development
Increase production
Social Development
Utilization of physical capital
Sustainable economic development
Increase in managerial capacity and
entrepreneurship
 Human Development Indicator

Life Expectancy

Literacy rate

Infant Mortality rate

Per capita income

Human Development Index