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An Evaluation of Land Reform in Nepal: Simulation Based Approach

An Evaluation of Land Reform in Nepal: Simulation Based Approach

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Access to land for extremely poor households is very important for their livelihood. Land is not only a source of means for subsistence living but also the means for access to credit facility. The redistribution policy of state by means of land reform is a matter of concern in Nepal since more than half a century but in low pace and even in the failed attempts. The disputes in land between the landlord and tenants, the farmer's movements for land rights and the commitment of the political parties to the people by their election manifesto are some driving forces of land reform. Land Reform Act 1964 is the main basis of Land Reform which set various new land ceilings in different regions in its fifth amendement in 2oo2. Due to lack of proper implementation it remained in status quo leaving many poor still in vulnerable condition.

In this paper, we evaluate the land reform scenario of Nepal by means of simulation technique. We examine that if land reform were properly implemented what would be its effect on peoples welfare. We also attempt to explore the casual relationship between land holding size to income and consumption measures of poverty and inequality based on household level data. The results found in this paper suggest that land reform has significant role to rise in income and consumption level of poor households and thereby reducing poverty and inequality in Nepal.

Key words: land reform, land related act 1964, land ceiling, inequality, household own land, simulation, Nepal"
Access to land for extremely poor households is very important for their livelihood. Land is not only a source of means for subsistence living but also the means for access to credit facility. The redistribution policy of state by means of land reform is a matter of concern in Nepal since more than half a century but in low pace and even in the failed attempts. The disputes in land between the landlord and tenants, the farmer's movements for land rights and the commitment of the political parties to the people by their election manifesto are some driving forces of land reform. Land Reform Act 1964 is the main basis of Land Reform which set various new land ceilings in different regions in its fifth amendement in 2oo2. Due to lack of proper implementation it remained in status quo leaving many poor still in vulnerable condition.

In this paper, we evaluate the land reform scenario of Nepal by means of simulation technique. We examine that if land reform were properly implemented what would be its effect on peoples welfare. We also attempt to explore the casual relationship between land holding size to income and consumption measures of poverty and inequality based on household level data. The results found in this paper suggest that land reform has significant role to rise in income and consumption level of poor households and thereby reducing poverty and inequality in Nepal.

Key words: land reform, land related act 1964, land ceiling, inequality, household own land, simulation, Nepal"

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Categories:Types, Research
Published by: Damaru Ballabha Paudel on Feb 01, 2013
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