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A National Strategy
for Economic Growth and Poverty Reduction II-PRSP The poverty reduction strategy paper (PRSP) provides an overall perspective of the country's poverty trends in terms of income-poverty and human poverty. The income poverty between 1991/92 and 2000 (on HIES unit-record data) shows a modest reduction one percentage per year (from 58.8 to 49.8 percent). There exist noticeable urban and rural variation in poverty. The pace of poverty reduction in nineties can't step up the overall poverty reduction of the country. The human poverty considered three dimensions i.e. deprivation in health, deprivation of education and deprivation of nutrition. The human poverty is accompanied by gender inequality, child mortality and the female-male gap in malnutrition. The government supported programmes such as old age pension schemes, vulnerable group development (VGD), food for education (FFE) and food for works (FFW) reveal favourable effects. But the grass-root consultation reveals several key concerns relating to law and order situation, extortion and economic violence, ineffective local government and decentralisation, poor quality of education, health and other social services, lack of infrastructure, lack of social capital at the community level resulting in low-level of collective action and lack of democratisation of political process. The Millennium Development Goals (MDG) addresse the following targets (i) reduce the number of people living below the poverty line by 50%; (ii) attain universal primary education for all girls and boys of primary school age; (iii) eliminate gender disparity in primary and secondary education; (iv) reduce infant and under five mortality rates by 65% and eliminate gender disparity in child mortality; (v) reduce the proportion of malnourished by 50% and eliminate gender disparity in child malnutrition; (vi) reduce maternal mortality rate by 75% and (vii) ensure availability of reproductive health services to all women. The paper proposes the five measures for long-term poverty reduction and social development. These are: (i) pro-poor economic growth for increasing income and employment of the poor; (ii) human development of the poor for raising their capability through education, health, nutrition and social interventions; (iii) woman's advancement and closing of gender gaps in development; (iv) social safety nets for the poor against anticipated and unanticipated income/consumption shocks through targeted and other efforts; and (v) participatory governance for enhancing voice of the poor and improving non-material dimensions of well-being including security, power and social inclusion by improving the performance of anti-poverty institutions and removing institutional hurdles to social mobility. The paper sets a medium-term macro-economic framework that is supported by financing pattern and public resource provision to achieve the desired growth targets. The highlighted areas are macroeconomic framework, macro and trade reforms, governance and sectoral reforms. The proposed paper presents the national directions and priorities for achieving the poverty reduction goals. The policy matrix outlined the operational monitoring and evaluation methods of the specific poverty alleviating programs and projects.
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