Despite rapid reduction in poverty, Nepal’s development path is not helping it escape a low-growth trap, says the World Bank in a new report, Climbing Higher: Toward a Middle Income Nepal, released today.
Without comprehensive reforms to address its long-standing challenges, the report says Nepal will probably not become a lower-middle-income country before 2030.
Nepal’s recent history of development is marred by a paradox, notes the report.
Many countries in the world have experienced rapid growth but modest poverty reduction, as income has increasingly concentrated in the hands of the wealthy. Nepal, however, has the opposite problem—modest growth but brisk poverty reduction, it says.