In this presentation, I have given a brief summary of preliminary report of Nepal Population and Housing Census 2021 and compared the economy of Nepal with other SAARC countries.

1. SOME FACTS
ABOUT NEPAL

2. MAP OF NEPAL

3. KEY HIGHLIGHTS (POPULATION CENSUS 2021)

4. Key Highlights from POPULATION
CENSUS 2021 (Preliminary)
COUNTRY NEPAL
POPULATION 2,91,92,480
AVERAGE EXPONENTIAL GROWTH RATE PER YEAR 0.93%
MALE POPULATION 1,42,91,311 (48.96%)
FEMALE POPULATION 1,49,09,169 (51.04%)
SEX RATIO ( NO. OF MALE PER 100 FEMALE) 95.91
NUMBER OF FAMILITES LIVING IN NEPAL 67,61,059
AVERAGE FAMILY SIZE 4.32
ABSENTEE POPULATION 21,69,478

5. SUSTAINABLE DEVELOPMENT GOAL
RELATED TO POVERTY
Goal 1: End poverty in all its forms everywhere
• 1.1 By 2030, eradicate extreme poverty for all people everywhere, currently
measured as people living on less than $1.25 a day
• 1.2 By 2030, reduce at least by half the proportion of men, women and
children of all ages living in poverty in all its dimensions according to
national definitions
• 1.3 Implement nationally appropriate social protection systems and measures
for all, including floors, and by 2030 achieve substantial coverage of the poor
and the vulnerable

6. SUSTAINABLE DEVELOPMENT GOAL
RELATED TO POVERTY
Goal 1: End poverty in all its forms everywhere...
• 1.4 By 2030, ensure that all men and women, in particular the poor and the
vulnerable, have equal rights to economic resources, as well as access to basic
services, ownership and control over land and other forms of property,
inheritance, natural resources, appropriate new technology and financial
services, including microfinance
• 1.5 By 2030, build the resilience of the poor and those in vulnerable
situations and reduce their exposure and vulnerability to climate-related
extreme events and other economic, social and environmental shocks and
disasters

7. SOME MEASURES OF POVERTY
• Headcount Ratio of Poverty (HRP) measurement
• Poverty Gap Index (PGI)
• Squared Poverty Gap Index (SPGI)
• Multidimensional Poverty Index (MPI)

8. HEADCOUNT RATIO OF POVERTY(HRP)
MEASUREMENT
The simplest and most widely used poverty measure is the headcount ratio of
poverty. This measure is defined as the proportion of population whose per
capita income or consumption is less than the poverty line.
HRP = q/n
where, “n” is total population of the country or the community and “q” is the
number of people below the poverty line

9. POVERTY GAP INDEX (PGI)
• The head count poverty tells us only what proportion of the population is
poor but it cannot indicate the extent of the poverty depth of the people
who are below the poverty line, i.e., the head count cannot tell us how poor
are the poor in the community.
• The PGI measures the depth of poverty among poor individuals.
• PGI measures the depth of poverty, it can indicate how much money we
need to bring all the poor individuals in the community or in the country
exactly above the poverty line.

10. POVERTY GAP INDEX (PGI)
• PGI is defined as average of the ratio of the poverty gap to the poverty line.
• PGI is given by
where N is the total population, q is the total population of poor who are
living at or below the poverty line, z is the poverty line, and yj is the income of
the poor individual.

11. POVERTY GAP INDEX (PGI)
• If we multiply a country's poverty gap index by both the poverty line and the total number
of individuals in the country we will get the total amount of money needed to bring the
poor in the population out of extreme poverty and up to the poverty line, assuming perfect
targeting of transfers.
• For example, suppose a country has 1 crore individuals, a poverty line of NRP 50,000 per
year and a poverty gap index of 5%. Then an average increase of NRP 2500 per individual
per year would eliminate extreme poverty. Note that NRP 2500 is 5% of the poverty line.
The total increase needed to eliminate poverty is NRP 25 Arab which is result of NRP2500
multiplied by 1 crore individuals.

12. SQUARED POVERTY GAP INDEX(SPGI)
• The degree of poverty measured by PGI assumes that the welfare implications
of the poverty gap are proportional to the gap, irrespective of the depth of
poverty.
• It treats different levels of poor differently weighing their level of welfare by
their distance from the poverty line.
• By squaring the poverty gaps, individuals in poorer households receive greater
weight in computing the index than do those in less poor households, resulting
in a better measure of welfare loss associated with the increasing severity of
poverty than the poverty measure based on adding poverty gaps only.

13. HRP, PGI & SPGI IN SINGLE FORM
• HRP, PGI and SPGI are member of the FGT (Foster, Greer, Thorbecke)
family of poverty measures. All of the poverty measures can be combined
into one mathematical framework as indicated by Foster-Greer-Thorbecke
(Econometrica, 1984)
where Pα is incidence, gap or severity of poverty depending on the value of
α=0, 1 or 2 respectively

14. MULTIDIMENSIONAL POVERTY INDEX
(MPI)
• The multidimensional poverty index (MPI) is an index of acute
multidimensional poverty. It complements traditional monetary poverty
measures by capturing the deprivations that each person faces at the same
time with respect to different dimensions of welfare viz: education, health
and living standards

15. MULTIDIMENSIONAL POVERTY INDEX
(MPI)
• The MPI reflects both the incidence (H) of poverty – the proportion of the
population that is multidimensional poor – and the average intensity (A) of
their deprivation – the average proportion of indicators in which they are
deprived. The MPI is calculated by multiplying the incidence of poverty by
the average intensity across the poor.
• MPI= H*A
•

16. DIMENSIONS OF MPI

17. WEIGHT FOR POVERTY INDICATORS IN
MPI

18. POVERTY RESULT OF NEPAL BASED ON
DIFFERENT SURVEY

19. Changes in MPI, H, and A at the National
Level, 2014`-2019
• Source : Nepal,MPI report 2021

20. Multidimensional Poverty by Sex 2019
• Source : Nepal,MPI report 2021

21. MULTIDIMENSIONAL POVETTY BY AGE
GROUPS 2019
• Source : Nepal,MPI Report 2021

22. Highlights of Economy of
South Asian Countries

23. Abbreviations and Acronyms
• PCI= Per Capita Income
• HDI = Human Development Index
• PPP$ = Purchasing Power Parity in $
• NA = Not Available
• H= Higher value is better
• L= Lower value is better
• Blue color = Best
• Red color= Worst

24. PCI
• Per capita income (PCI) or total income measures the average income earned
per person in a given area (city, region, country, etc.) in a specified year. It is
calculated by dividing the area's total income by its total population.
Source:
• https://www.worldbank.org/en/region/sar/overview#1
• cbs.gov.np

25. HDI
• The Human Development Index (HDI) is a summary measure of average
achievement in key dimensions of human development: a long and healthy
life, being knowledgeable and have a decent standard of living. The HDI is
the geometric mean of normalized indices for each of the three dimension.
Source:
https://hdr.undp.org/en/content/human-development-index-hdi

26. HDI
Source:
https://hdr.undp.org/en/content/human-development-index-hdi

27. PPP
• Purchasing power parity conversion factor is the number of units of a
country's currency required to buy the same amounts of goods and services
in the domestic market as U.S. dollar would buy in the United States.
• Source: https://databank.worldbank.org/metadataglossary/africa-development-
indicators/series/PA.NUS.PPPC.RF

28. PPP in ASIA AND THE PACIFIC
• PPP in Asia and the Pacific are calculate on the basis of Hong Kong dollars
(HK$).
Source : 2017 International Comparison Program for Asia and the Pacific, ADB.

29. GINI COEFICIENT
• Gini coefficient or Gini index is a measure of statistical
dispersion intended to represent the income inequality or the wealth
inequality within a nation or a social group.
• The Gini coefficient was proposed by Corrado Gini as a measure of
inequality of income or wealth.It is used to estimate how far a country's
wealth or income distribution deviates from a totally equal distribution.

30. GINI COEFICIENT
• Source :
https://en.wikipedia.org/wiki/Gini_coefficient#:~:text=In%20economics%2C%20the%20Gini%20c
oefficient,statistician%20and%20sociologist%20Corrado%20Gini.

31. OVERVIEW ON SOUTH ASIAN ECONOMY

32. GDP GROWTH RATE AT PURCHASE’S PRICE OF NEPAL
4.67
3.53
6.01
3.98
0.43
8.98
7.62
6.66
-2.09
4.01
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

33. PER CAPITA GDP in (US$)
816 808 814 824
871 866
1009
1138
1159
1126
1191
400
500
600
700
800
900
1000
1100
1200
1300
Nominal Percapita GDP (US$)

34. GINI COEFFICIENT

35. REFERENCES
• https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=A
F-BD-BT-IN-MV-NP-PK-LK
• cbs.gov.np
• https://data.worldbank.org/indicator/SI.POV.GINI?locations=AF-BD-BT-
IN-MV-NP-PK-LK

36. THANK YOU