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Economic Inequality in the ‘Democratic’ Nepal: Dimensions and Implications
Unformatted Document Text:  34 16 This begs a question of the difference in the types of businesses across the two regions, clearly an issue that needs further research. 17 The Center region, for example, has the largest representation of urban households with 38 percent of the sampled households coming from urban areas in 2004. But the representations in the East and West (22 and 19 percent) were much larger than those in the Mid-West and Far-West (12 and nine percent). The representations are also comparable between the Hills and Terai belts (38 and 25 percent). In case of the Mountains belt, however, urban households comprised only three percent of the sample (CBS 2004a). 18 The declining within group inequality estimates among the Janjatis may be associated with their declining estimates of resources. This is not necessarily the case with the others suggesting that the average access to resources is not the only factor driving the inequality outcomes. 19 The human development indices in these locations, for example, were between 0.07 and 0.12 points lower than those in the Hills and Center locations where as the human poverty indices were between six and 11 points higher (UNDP 2004). 20 The human development indices for the Hills and Terai are within 0.03 points from each other where as the human poverty indices are only one point different. Between the three development regions, the human poverty indices are different up to three points where as they are almost identical on the human development index (UNDP 2004). 21 The endogenous and exogenous theories of democracy are conceptually quite different with the former suggesting democracy to evolve out of some socioeconomic workings and the latter suggesting it to evolve randomly and yet to depend on the socioeconomic workings for survival. In this case, however, these differences are not highly relevant since democracy in Nepal is neither fully established nor has survived for long. 22 There is a dearth of systematic assessments of the degree of corruption taking place in the 1980s and 1990s. More recent surveys, however, indicate that the corruption perceptions index was very low and is worsening year after year since 2004 (Transparency International 2004, 2005, 2006). Because these are the years in which anticorruption movements have taken momentum in Nepal, one can reasonably argue that corruption may have been comparable if not worse in the preceding years.

Authors: Wagle, Udaya.
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34
16
This begs a question of the difference in the types of businesses across the two regions, clearly an issue that needs
further research.
17
The Center region, for example, has the largest representation of urban households with 38 percent of the sampled
households coming from urban areas in 2004. But the representations in the East and West (22 and 19 percent) were
much larger than those in the Mid-West and Far-West (12 and nine percent). The representations are also
comparable between the Hills and Terai belts (38 and 25 percent). In case of the Mountains belt, however, urban
households comprised only three percent of the sample (CBS 2004a).
18
The declining within group inequality estimates among the Janjatis may be associated with their declining
estimates of resources. This is not necessarily the case with the others suggesting that the average access to
resources is not the only factor driving the inequality outcomes.
19
The human development indices in these locations, for example, were between 0.07 and 0.12 points lower than
those in the Hills and Center locations where as the human poverty indices were between six and 11 points higher
(UNDP 2004).
20
The human development indices for the Hills and Terai are within 0.03 points from each other where as the
human poverty indices are only one point different. Between the three development regions, the human poverty
indices are different up to three points where as they are almost identical on the human development index (UNDP
2004).
21
The endogenous and exogenous theories of democracy are conceptually quite different with the former suggesting
democracy to evolve out of some socioeconomic workings and the latter suggesting it to evolve randomly and yet to
depend on the socioeconomic workings for survival. In this case, however, these differences are not highly relevant
since democracy in Nepal is neither fully established nor has survived for long.
22
There is a dearth of systematic assessments of the degree of corruption taking place in the 1980s and 1990s. More
recent surveys, however, indicate that the corruption perceptions index was very low and is worsening year after
year since 2004 (Transparency International 2004, 2005, 2006). Because these are the years in which anticorruption
movements have taken momentum in Nepal, one can reasonably argue that corruption may have been comparable if
not worse in the preceding years.


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