Economic models for peace, growth and poverty alleviation and resolution of con‡ in Nepal, July 2010-July 2011 ict Poverty and inequality in Nepal has increased substantially in the last two decades. Major reason for this is the failure of the economy to grow because of internal con‡ and political ict instability. As a result of the lack of employment prospects in the country thousands of young people are forced to migrate abroad and economy has lost manpower that could actively contribute to the growth process. Nepal’ performance has been dismal compared s to neighboring countries in terms of per capita income either in market prices or in PPP terms. This study has three major objectives:
1. (a) To measure the depth of poverty and pattern of inequality in the distribution of income in Nepal based on most up to data household level information.
(b) To …nd a mechanism that can help alleviating poverty in Nepal within a shortest possible time period.
(c) To provide a thorough comparison of successes and failures of poverty reduction strategies in South Asia, and possibly also from other regions.
Literature review: Impact of Political Con‡ on Poverty and Inict come Inequality
Available documents on poverty from the National Planning Commission of Nepal, Ministry of Finance and Central Bureau of Statistics explaining the poverty situation in Nepal are not up to date. Reports of international agencies such as the World Bank or the Asian
Development Bank are helpful but very general and outdated particularly in the current context of con‡ ict. Many macro and micro level studies in India could be relevant but have not been properly accounted so far while analysing poverty and income inequality studies in
Nepal.
A signi…cant amount of work has been done on the issue of measurement and analysis of poverty using statistical, econometric and dynamic general equilibrium models for evaluation of micro and macro