Description
As in most other poor countries, the poverty reduction strategies and policies in Nepal are primarily informed by periodic cross-section household income data that provide estimates of static poverty rates. Interestingly, however, the focus of these policies appears to be chronic or long-term poverty—poverty that is not necessarily reflected in cross-sectional survey data. While estimates of poverty at specific points in time might correlate with chronic poverty to some extent, such estimates are more representative of poverty that is transient in nature. Hence, an issue of interest is the extent to which there is an overlap between the factors that explain transient and chronic poverty.
Determinants and consequences of chronic vs. transient poverty in Nepal
As in most other poor countries, the poverty reduction strategies and policies in Nepal are primarily informed by periodic cross-section household income data that provide estimates of static poverty rates. Interestingly, however, the focus of these policies appears to be chronic or long-term poverty—poverty that is not necessarily reflected in cross-sectional survey data. While estimates of poverty at specific points in time might correlate with chronic poverty to some extent, such estimates are more representative of poverty that is transient in nature. Hence, an issue of interest is the extent to which there is an overlap between the factors that explain transient and chronic poverty.