This document discusses concepts of poverty reduction, development, and sustainable development in the Nepali context. It defines poverty as a lack of basic needs, capabilities, and freedoms. Poverty is caused by lack of assets, voice, and vulnerability. Efforts in Nepal to reduce poverty through economic growth, social services, targeted programs and good governance have faced challenges from political instability and conflict. Ending poverty requires building human, physical, financial, natural, and social capital. True development is a participatory process that meets peoples' basic needs and allows them to realize their potential with dignity. Development and poverty reduction depend on supportive cultures, policies, and empowering local participation.