In fact, because of the rising population, there are indications that the absolute number of the poor has almost doubled during this period 6 . Initiatives to reduce poverty and income inequality need to address these closely interrelated factors. The people in the poorest regions of the country also have the lowest access to education and basic health services, highest rates of infant mortality, and highest rates of child malnutrition. Poverty undermines efforts at promoting human development, since it prevents many parents from sending their children to school. However, only 20 percent of the poor are literate compared to 60 percent of those in the higher-income groups.
Poverty also heightens gender differences.
While 32 percent of poor men are literate, the literacy rate of poor women is much lower at 9 percent. Poverty induces malnutrition and frequent illnesses forcing households to waste their precious resources on medical care. In turn, illiteracy, malnutrition, and disease reduce development and employment opportunities, worsening poverty. The major challenge facing Nepal is to overcome this vicious cycle of poverty and low human development. To achieve this goal, the Ninth Plan incorporates interventions to promote broad-based growth of the economy with targeted programs for poverty reduction.