AGENDA ITEM FOUR The Role of Criminal Justice in the Alleviation of Extreme Poverty Kedar Paudel,
International Director, ACPF
Under Secretary,
Ministry of Law, Justice
and Parliamentary Affairs
HMG/NepalThe Nature and Extent of Extreme Poverty
The Encyclopedia Britannica has defined poverty as the condition that is said to exist when people lack the means to satisfy their basic needs- as narrowly as "those necessary for survival " - as broadly as " those reflecting the prevailing standard of living in the community". Poverty has been a great challenge to most of the developing countries of the world. To raise the living standard of the people in a sustainable manner by alleviating existing poverty has become the biggest challenge ever. In most of the developing countries, a great majority of the population lives in village and a big segment of them are extremely poor. The UNDP Human Development Report 2000 has clearly indicated that poverty eradication is a major human rights challenge of the 21st century. A decent standard of living, adequate nutrition, health care, education, decent work and protection against calamities are not just developing goals- they are also human rights. About 790 million people around the world are hungry and food insecure, and about 1.3 billion live in extreme poverty- lacking basic health, sanitation, and on less than $1 a day. Poverty restricts human freedom and deprives a person of dignity. The Vienna Declaration and Program of Action adopted at the World Conference on Human Rights 1993, has affirmed that the existence of widespread extreme poverty inhibits the full and effective enjoyment of human rights; its immediate alleviation and eventual elimination must remain a high priority for the international community.
Nepal is one of the poorest countries of the world with a per capita income of $ 210 p.a. An overwhelming majority of its 23 million people relies on subsistence farming to make a living. Over half of the population survives on less than a dollar a day. The percentage of population below the poverty line surveyed in different years by the National Planning Commission (NPC) was 36% in 1976, 41.5% in 1984( a household survey conducted by Central Bank of Nepal) and 49.2% in 1992. According to Nepal Living Standard Survey done by NPC in 1996, 42 % of the total population has remained below the absolute poverty line. Among them, about 17.1 % are counted as ultra poor or the poorest.
Table 1 Incidence of Poverty
% population
Below nutrition-based poverty line (NRS 4,404 per capita) 42
Below 1.5 times poverty line 70
Below $1 a day in purchasing power Parity (PPP) terms 53
Below $1.5 a day in PPP terms 76
Source : Nepal Living Standard Survey 1995/96.There is tremendous difference in the incidence of poverty among the different geographical region of the country. Poverty is greater and more pervasive in rural areas. Given that close to about 90 % of the total population resides in rural areas, poverty is much more severe in such areas compared to urban areas.
Based on the UNDP's Human Development Report, 2000, Nepal is ranked 144th the among 174 countries in the Human Development Index Value (HDI) which is below all its South Asian neighbours except for Bangladesh. Nepal lags in almost all key aspects of socio-economic progress like life expectancy, infant mortality rate, maternal mortality rate, female illiteracy rate, and malnutrition as compared to its neighbouring countries. Below, in the table, some of the selected human development indicates show the extent of poverty and its vicious circle in comparison to SAARC and other developing countries.
Table 2 Comparison on Selected Human Development Indicators of Poverty
S. N. Indicators SAARC Developing Countries Nepal
1. Life Expectancy at birth (Year) 63 64.7 57.8
2. People not expected to survive to age 40+ (in %) 15.7 14.3 21.9
3. Adult illiteracy rate (14%) 45.7 27.6 60.8
4. GDP per capita (PPP US$) 2112 3270 1157
5. Without access to safe water (in %) 18 28 29
6. Without access to health service (%) - - 90
7. Without access to sanitation (in %) 65 56 84
8. Under weight children (in %) 49 31 47
9. Infant mortality (per 1000 live births) 72 64 72
10. Maternal mortality ratio (per 100,000 live births) NA NA 540
11. Daily calorie supply (per capita) 2103 2145 1959
12. HDI value 0.560 0.642 0.474
- UNDP Human Development Report 2000
Poverty incidence across various ethnic groups varies significantly. The lower occupational caste group are severely deprived of opportunities in all dimensions of life and live in extremely poor conditions. The social exclusion aspect of poverty is manifested mainly through gender-based exclusion and caste ethnicity based exclusion. As a result, poverty is more prevalent in women than in men. The situation of women belonging to the lower caste group is even more disturbing.
Major Causes of Extreme Poverty in Nepal
It is generally said that a country is poor because it is poor. The root cause of poverty is underdevelopment, i.e., insufficient rate of economic growth. The vicious circle of poverty is the basic reason for such a situation.
The policy makers always look at poverty alleviation from the economic point of view. They believe that poverty is the outcome of economic, political, social and geographical. The landlocked situation, unfavourable topography and less agricultural land are the constraints for alleviation of poverty. In short, following factors are being put forward as the basic causes of poverty :
・ Inconsistency in the socio-economic structure of the country.
・ Unequal distribution of income and productive resources because of which the condition of the landless and marginal groups are worrying.
・ Improper planning of resources and investment programs
・ Low economic growth.
・ Sluggish overall growth and stagnant or diminishing agriculture.
・ High population growth and unemployment
・ Wrong policy and mismanagement.
・ Lack of good governance, sincerity and honesty of the public officials.
・ Lack of political will and criminalization of politics
・ Discrimination of caste, creed, gender and nepotism.
・ Unfavourable topography, landlocked situation and open border with India.
・ High rate of illiteracy, malnutrition, lack of sanitation and basic health care.
・ Multi-sects and cultures.
・ Vicious circle of poverty
No one can disagree on the above-mentioned factors of poverty. But the question arises: why is it so? Why are these factors continuing from decade to decade? Why is there no breakthrough? If analyzed minutely, those factors are only the excuses for the irresponsible and unaccountable system of governance. These are the countries of the world which had the similar situations some decades ago, but they have overcome such factors and are now developed. The topography and resources cannot be a problem forever. There are so many resources and prospects in Nepal which can claim itself as the highest in the world like water resources, tourism etc. The same topography and natural beauty can be converted to the biggest tourism industry. It can also be easily observed that a high flow of foreign assistance, grant and loan has been received and a reasonable investment towards development activities has been allocated, but the outcome in terms of benefits is worsening. The foreign loan till 1990 was totaled to US $ 3 billion and in the past 9 years of multiparty democratic system, it increased to US $ 180 billion but the outcome of that loan seems to be void with the poverty ratio and foreign domination has increased. Good governance, competence, efficiency and people's participation remain only on the election manifesto and for political propaganda by the political masters but in practice, nepotism, favourism, discrimination and corruption reign supreme from top to bottom. The few political leaders, policy makers and lucky bureaucrats and technocrats who have been posted in the development projects and the revenue offices are getting richer and richer and their expensive cars are running in muddy, rough and narrow roads and in an ever-degrading environment. The gap between urban and rural life, the status of have's and have not's are widening. In such a situation, the root cause for extreme poverty seems to be the prevalence of rampant corruption in the country. Poverty alleviation demands ultra sincerity and honesty among the political leaders, bureaucrats and the people working in every sectors. And hence the criminal justice should play an important role in bringing changes in such a situation and to alleviate extreme poverty.
Initiatives and Challenges to Alleviate Extreme Poverty
1. Initiatives for Poverty Alleviation
The problem of poverty has posed itself as a big challenge to Nepal. In the past, poverty alleviation efforts have not been broad, effective and focused on the poor and the ultra poor. The Ninth Plan (1997-2002) has given its highest priority to the alleviation of poverty. Various objectives and strategies have been formulated for the purpose, such as:
・ A long-term objective to reduce poverty incidence from 42% to 10% by the year 2017.
・ To gradually rise the living standard of the people below the poverty line by reducing the pressure of poverty.
・ To socially and economically empower the backward, deprived and weak communities.
・ To reduce the concentration of existing poverty in backward and remote areas by developing physical, social and economic infrastructure.
・ To direct all development activities under all the sectors of economy towards poverty alleviation.
・ To promote growth in agriculture, agro-based industries, cottage and small industries and tourism to create employment opportunities for the poor.
・ To create conductive environment for the investment of private sectors in employment for the investment of private sectors in employment- friendly activities.
・ To give more emphasis to basic and primary education, literacy and vocational training.
・ To provide skill training on credits, marketing and other technical assistance to the poor.
・ To retain programs like small farmer development program, production credit for rural women program, remote area special program, disadvantaged ethnic group program, special program for landless rural people, rural infrastructure building (food for work) program.
Various non-governmental organizations, international non-governmental organizations, United Nations systems, the World Bank, the Asian Development Bank and other cooperation agencies and departments of the friendly countries are also conducting different development programs relating to the alleviation of poverty.
2. Major Challenges
Past experiences show that despite the various programs targeted to reduce extreme poverty and to improve the living conditions of the poor, the achievement is not satisfactory. The country is depending highly on foreign grants and debts. The internal revenue collection is not to the extent which it should be. The tax policy is defective and the laws relating to taxes are favourable for tax evasion and fail to criminalize on such offences. The volume of corruption, tax evasion and other economic crime is increasing and only a small section of the people are prospering. The criminal justice system is not efficient enough to improve the situation.
Contribution of Criminal Justice to the Alleviation of Extreme Poverty
There is rampant corruption in the country where a colossal percentage of the development expenditure has been lost by way of corruption. The development programs have not been able to reach the targeted groups. In Nepal, corruption and tax evasion are two major crimes on the way to alleviate extreme poverty. Effective counter measures against corruption and tax evasion can contribute in alleviating poverty and it can facilitate revenue collection. Proper investment in development projects for the poor, proper distribution of economic and productive resources, increases in the gross domestic products, per capita income as well as other infrastructures help to alleviate poverty. Evidence suggest that those countries able to break out of "vicious circle" of poverty followed three main strategies. Firstly, a strong focus on rapid growth-oriented development policies; secondly, significant investment in human development and ethical standard; and thirdly, concerned efforts at the highest level to control corruption, using legal, judicial and institutional reform. Where resources are limited due to low economic development, it is particularly important to send a strong message that corruption has become a high risk, low profit. In such conditions criminal justice can play an important role.
Connection between Corruption and Extreme Poverty
The world community has well realised the connection between corruption and extreme poverty. Corruption can not be isolated from its social and economic environment. Often a symptom of low level of development corruption becomes a causal factor because it creates a "vicious circle" in which corruption breeds more corruption. Corruption, along with dishonest, unethical behaviour among the political leaders and other public officials undermines the basic principles and values of government, rule of law and democracy. It jeopardizes social, economic and political developments and threatens peace, human rights and environmental protection. As in many countries, corruption is increasingly a pervasive problem in Nepal at many levels. It involves elements of political leadership and party, civil service, local governments and public sector institutions, the private sector and members of civil society, and also external suppliers as bribe givers.
Conclusion and Recommendation
Nepal is burdened with a high level of corruption and tax evasion, and is struggling with extreme poverty. The country has adopted multiparty democracy based on the rule of law and independence of judiciary, with strong anti-corruption laws and national machinery to combat corruption and corrupt practices. However, corruption, tax evasion, irregularities and misappropriation of fund have assumed an epidemic proportion in the country, which has infected almost every sector. Effective criminal justice system facilitates the maintenance of a peaceful society by which development and the fruit of development can reach all corners of the country. It is high time to formulate anti- corruption strategy targeting the alleviation of extreme poverty. International and regional level co-operation to develop strategies, codes, guidelines and the like to work efficiently in national and international levels is necessary. Extreme poverty should be observed from the human rights prospective and the world community should consider it as the gross violation of human dignity. International co-operation should be focused on the anti- corruption projects. Hence, the world community, either it be at governmental or non- governmental level, should join hands with ACPF, which has taken initiatives to empower the criminal justice system and has aimed to help in alleviating extreme poverty, so that we can live in a society that has achieved " Prosperity Without Crime".
Agenda item -4The Role of Criminal Justice in the Alleviation of Extreme Poverty
Eighth World Conference of ACPF
Beijing, China
( 11 to 15 October, 2000)Submitted by:
- Kedar Paudel,
International Director, ACPF
Under Secretary,
Ministry of Law, Justice
and Parliamentary Affairs
HMG/Nepal