Nepal Covid-19 Poverty Monitor: December 2020

Thank you for visiting our new Covid-19 Poverty Monitor. To find out more about the project, read our blog.

Read more on CPAN’s Poverty Eradication Policy Preparedness Index adapted for Covid-19.

Areas of concern for the poorest and potential impoverishment

Partial recovery: Most respondents report partial economic recovery since lockdown lifted, but all report continued partial livelihood loss. Some who lost employment due to lockdown in the first bulletin have returned to work. Small business owners report being able to operate again but have seen a reduction in their income. Those producing food for local markets have been able to sell their goods again, though many interviewed report receiving lower prices. Continued challenges in accessing farm inputs is a widely cited challenge in rural areas. Farmers who faced losses earlier in the year report having used savings and taken loans, but there is concern that a lack of access to fertiliser may impact the next harvest, threatening farmers’ recovery in the short term.

Higher costs of staple goods: Many respondents continue to report higher prices for staple goods, particularly food. A VSO survey found food shortage to be the most commonly cited challenge, with many borrowing money and food from friends and relatives or relying on government support.

“[Last time] we talked there was no fertiliser. We got it now, but it wasn’t timely, we didn’t get it when it was necessary, and all our crops were spoiled.”

— Male respondent, Nuwakot

Increased violence against women and people with disabilities: An increase in gender-based violence (GBV) has been reported by key informants and supported by other sources. A survey by VSO found that 21% of respondents reported an increase in GBV in their communities. The study also found increases in violence to be highest towards people with disabilities, particularly those with multiple disabilities: 5.6% of total respondents reported facing violence compared to 21.7% of people with a single disability and 41.7% with multiple disabilities.

Child marriage: An increase of child marriage was reported by a key informant in Dailekh and this trend has been identified by other sources. A study in four rural districts identified 11 child marriages over the early lockdown period, deemed to be an increase on the normal three-month period.

Partial reopening: The government has recently allowed local authorities to decide when to reopen schools. Schools in some regions have resumed partial services, while others remain closed. In Banke, it was reported that some teachers refused to hold classes in areas where schools were to be opened. Children that have not been able to return to school are reported to be facing protection risks, idleness and some are reported to have run away from home.

“Our child got lost and we had to find him and bring him home. He went with his friends. Children running away from home and getting lost has been common here, mostly among 12-16-year-olds. I found this when I went to the police station to report about my child. ”

— Female respondent, Kathmandu

Groups missing out: Children in areas where schools have not reopened, teachers are not holding classes, or where remote learning has not been provided are still missing out on education. Those without access to a mobile phone or television are unable to access remote learning. A recent World Bank survey also found that only half of schools were providing remote learning support to children with disabilities. A survey of girls enrolled in a girls’ education programme found that 49% were at risk of dropping out due to the pandemic. A VSO survey found that 89% of girls reported increased pressure to do housework or agricultural labour in place of schoolwork.

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Coping strategies being employed by poor and non-poor households

Taking loans and drawing on savings: Multiple respondents report taking out loans or drawing on limited savings to pay for daily costs, such as food and rent. Some reported that informal savings groups have not resumed after lockdown restrictions were lifted. The importance of local saving groups as a main support system was highlighted by many respondents.

“I am involved in an organisation where we collect money every month and provide loans, but we have stopped doing so due to lockdown. Even after the lockdown is lifted, things are still not fully on track. It is the same environment of unemployment and fear. ”

— Older male respondent, Kathmandu

Pensions: Older respondents continue to cite pensions and social protection allowances, as their primary livelihood sources and are using this to cope with lost household income from other household members and increasing costs.

Remittances: Nepal has one of the highest rates of remittances in the world, making up 26.9% of GDP in 2019. Several respondents report that they are still receiving remittances from family members working abroad.

Farming: Agricultural households, specifically those with land, report relying on their production to maintain food security. Some respondents without land have identified food security impacts.

““It is hard to manage my necessities and I have reduced my food intake, but we don’t have to sleep empty stomached. We have to buy everything. We don’t have a place of our own, we live in slums.” ”

— Older female respondent, Nuwakot

Increased migration: The continued economic downturn in Nepal is reportedly leading to increased migration in search of work. This includes internal migration and international migration, particularly to India. At the beginning of the pandemic ACAPS reported between 400,000-750,000 people returned to Nepal from India, “and many more are now choosing to return to India in search on income-generating opportunities due to lack of support at home”.

“Due to Covid-19, people who didn’t go to India before are going there now. Many people had business or hotels here, but due to Covid-19, everything was closed so they didn’t have any work and money to pay their rent. They are going to India as they don’t have any other choice. There is no proper daily wage work here, otherwise, they would have worked here.”

— Community worker, Dailekh

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Programmes in place to mitigate impoverishment due to Covid-19

Relief for farmers: At the beginning of the pandemic the Government of Nepal announced an emergency relief package for farmers, with cash and farm input support based on land entitlement and size. Several respondents expressed concern with the lack of transparency and poor targeting of support, as well as delays in receiving support that led to crop losses; this finding is supported by other studies.

Youth Employment Transformation Initiative: This four-year programme aims to promote domestic employment and enable poor and vulnerable youth to gain access to employment, skills development and capacity building. Funded by the World Bank, it was agreed in late 2019, but will now be front-loaded as part of the Bank’s Covid-19 response.

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Oma’s story

A Nepalese farmer talks about how his family is coping with the pandemic.

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Key external sources

To find out more about the impacts of Covid-19 on poverty in Nepal, please explore the following sources that were reviewed for this bulletin:

CPAN country bulletins are compiled using a combination of original qualitative data collected from a small number of affected people in each country, interviews with local leaders and community development actors, and secondary data from a range of available published sources. Interviews for this bulletin were conducted in Banke, Nukawot and Kathmandu between November 23rd and December 1st 2020. See our Covid-19 Poverty Monitor methodology note for more details on how we collected this data.

This project was made possible with support from HelpAge International.

Nepal Covid-19 Poverty Monitor: October 2020

Thank you for visiting our new Covid-19 Poverty Monitor. To find out more about the project, visit our blog about the project launch.

Read more on CPAN’s Poverty Eradication Policy Preparedness Index adapted for Covid-19.

“Community feelings have changed – everyone feels insecure about their neighbours. Now the situation is such that you will be suffering more from emotional problems than the disease itself if you are sick.”

— Local social leader, Banke

Areas of concern for the poorest and potential impoverishment

Lost livelihoods: Movement restrictions and border closures have impacted livelihoods for migrant workers, informal workers, loans from savings groups, lost wages for day labourers and limited access to markets for farmers. 

Climate variability and markets: Unpredictable rains led to significant crop loss in sampled areas. This, combined with market disruptions has led to significant threats to livelihoods for smallholder farmers. 

Increased prices: Farmers are facing high prices for inputs such as seed and fertiliser. Many households report higher costs of food and other basic goods.

Access to treatment: Preventative measures in hospitals have deterred some people from attending, for example women giving birth at home. Older people note continued access to medicines.

Quarantine: Returnees from India were reportedly placed in unsafe quarantine conditions in Banke with inadequate food, exposure due to crowded conditions, and protection risks. Dysentery, diarrhoea and a lack of essential medicines were reported in quarantine centres.

Isolation: Older people report feeling isolated due to perceptions that they are more vulnerable to the disease. 

Stigmatisation: Migrants workers returning from India have been stigmatised based on the perception that they are carrying the disease. Older people are seen as less rule-abiding and therefore more likely to carry the disease. 

Social cohesion: Many respondents report a decline in social cohesion, particularly affecting informal support networks and psychosocial well-being of those in need.

Distance learning challenges: Radio classes are provided but respondents note challenges in maintaining children’s attention. Online learning is only available for households with internet access. 

Loss of aspiration and hope among youth: Respondents note psychosocial impacts among youth who are unable to attend school or earn livelihoods. Many have drawn links between their isolation and depression. 

Sectors most affected by containment measures

Migrants and remittances: Labour migration is a key feature of Nepal’s economy. Around 700,000 people migrated internally for work or business in 2017/18 (Nepal Labour Force Survey, 2018). Cross-border migration accounted for 28% of GDP in 2018/19 (ILO, 202o). Many respondents noted livelihood effects from movement restrictions and border closures. In Banke, many relied on migrant work in India and had to make difficult and unsafe journeys back to Nepal.

Agriculture: Unpredictable rains this season have led to significant crop losses. This, alongside market disruptions for inputs and outputs due to border closures and movement restrictions, has led to losses in farmers’ livelihoods. This is also anticipated to have a knock-on effect on food security in the medium-term.

Day labourers: Many of the poorest households that do not own land rely on casual day labour in rural areas. This work has been limited by containment measures and reduced farm incomes have resulted in increased competition for work. 

“I had to reduce my costs for managing food. We are having very simple food these days. Previously we used to have rice, lentils, and many different vegetables.”

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Coping strategies being employed by poor and non-poor households

Day labour: Farmers with failed harvests due to bad rains have been seeking day labour opportunities, including public works opportunities.

Informal trade: Farmers are reportedly bringing goods over the border from India and selling them informally (e.g. potatoes, spices).

Pensions: Older people receiving pensions are using these to support the wider household to cope.

Loans: Many respondents reported taking out formal or informal loans to cope with lost income or increased prices. This coping strategy will need to be monitored in the medium-term as the inability to repay these may lead to impoverishment.

“We have become very much used to these things because of other previous crises such as the blockade and earthquake in Nepal. Those crises taught us how to manage things. ”

— Female respondent from Kathmandu

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Programmes in place to mitigate impoverishment due to Covid-19

Social Assistance: Nepal’s largest contributory social protection scheme is pensions for public employees, with 47% of Nepalis 65+ receiving robust social protection (Pension Watch, 2020). New cash transfers and programmes for informal workers have been announced and are being monitored. 

In-kind transfers: Food, soap, masks and hand sanitisers have been distributed to vulnerable households, mainly informal workers and deprived people with no caregivers (International Policy Centre for Inclusive Growth, 2020).

Public works: Low-paid public works opportunities (25% of local daily wages) have been introduced for informal workers that have lost their jobs (IMF, 2020).

“During the first phase of relief, people in extreme poverty were aided by organizations and rural municipalities, mostly with food items. But the pending budget and lack of attention from rural municipalities might cause them to suffer in the near future.”

— Local official

Key external sources

To find out more about the impacts of Covid-19 on poverty in Nepal, please explore the following sources that were reviewed for this bulletin:

See our Covid-19 Poverty Monitor methodology note for more details on how we collected this data.

This project was made possible with support from HelpAge International.

Kenya Covid-19 Poverty Monitor: October 2020

Thank you for visiting our new Covid-19 Poverty Monitor. To find out more about the project, visit our blog about the project launch.

Read more on CPAN’s Poverty Eradication Policy Preparedness Index adapted for Covid-19.

“Covid so far has been the biggest shock I’ve faced. No going out? No solace? No going to church? This has never happened to me in all my lifetime.”

— Older female respondent, Nairobi

Areas of concern for the poorest and potential impoverishment

Lost livelihoods: Movement restrictions have resulted in lost income for small businesses and employed people with limited labour rights, such as domestic and transport workers. The closure of local markets has reduced income of small traders.

Increased costs of staple goods: Respondents in rural and urban areas reported increased costs of food and other staple goods. This is supported by secondary evidence (see APRA, 2020). The price of soap is also reported to be high.

Caring responsibilities: Increased caring responsibilities for out-of-school children have restricted time for livelihoods generation.

Food security: Additional costs of food staples combined with reduced income is leading to households reducing daily meals and threatening food security. The majority of households interviewed indicated eating one meal less per day since the outbreak began.

Access to health services: Fear of contracting the virus or being subjected to quarantine by attending hospitals is reportedly deterring some people from accessing health services for non-Covid related health issues.

Stigmatisation: Stigma has been reported among those showing unrelated symptoms (e.g. a cough), attended a funeral, or have a relative that died from Covid-19.

Social cohesion: Many respondents report a decline in social cohesion, particularly affecting informal support networks, the ability to attend church services, and simple greetings such as handshaking.

School closures: Disruptions to children’s education and increased caring responsibilities are the most widely reported impacts of government restrictions. Respondents reported impacts on children’s behaviour, lost interest in returning to school and increased demand for food in the household.

Teachers: Multiple respondents who are teachers or relied on teachers for household income reported losing their jobs or not being paid for work before lockdown.

“The cost of food is very high and even getting it is not easy. I eat a meal a day of Ugali/Omena [small fish] and add a banana.”

— Older male respondent, Nairobi

Sectors most affected by containment measures

Markets for food and staple goods: The pandemic and containment measures coincided with the planting season in March. The imposed curfew and travel restrictions affected farmers and vulnerable populations in the food value chain. All respondents reported market disruptions affecting the price of staple goods, with the majority pointing to increased costs of food as a principal strain on household income and negatively impacting food security.

Informal workers and small businesses: The majority of Kenya’s employment, 82.7%, is in the informal sector where labour rights are minimal (World Bank, 2016). Informal workers do not have access to social insurance, and social protection provisions remain largely targeted to households that were assessed as vulnerable before the pandemic (World Bank, 2020). Some reported a total loss of income, and all reported at least partial loss leading to reduced wellbeing. 

Education: The most widely cited impact of government containment measures has been felt by the education sector. Teachers have reported losing their jobs and failing to receive pay for time worked before the pandemic. Added caring responsibilities among parents – mainly women, but also reported by men – have put a strain on livelihoods generation. Children’s disrupted learning is reportedly leading to disinterest among children to return to school, with potential long-term effects on education outcomes.

Transport and travel restrictions: Those working in the transport industry were affected by the curfew, lockdown and social distancing. Cost of public transport increased due to the need to carry fewer passengers to adhere to the social distancing measures. The boda boda and taxi transport network faced a reduction in the number of customers. Long-distance journeys have been affected by border closures and curfew hours.

Governance and security: Court activities were scaled-down, and all appeals, hearings and civil cases were suspended. There is an increase in reports of gender violence cases at household level which is attributed to loss of employment, no income, depression and strict Covid-19 measures and there have been no courts to address these cases.

“As a shoemaker, before Covid-19, I could receive as high as 500 shillings a day. But now I hardly take home any money. On a good day, I can get 40 shillings at most.”

— Older male respondent, Nairobi

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Coping strategies being employed by poor and non-poor households

Migration: Respondents in rural areas had children return from urban areas who had lost their jobs or were struggling to afford daily costs. A respondent in Nairobi sent his family to live in a rural area to minimise household costs. In Nairobi, respondents report moving in with friends or relatives due to being unable to pay rent or to share food costs. 

Informal support through networks: Many households are relying on support from informal network, friends and relatives in the form of food assistance, lodging and loans.

Selling assets: Respondents report selling household items and appliances to smooth out consumption, namely of food. One respondent reported selling her spare wheelchair and another reported selling their children’s textbooks to buy food.

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Programmes in place to mitigate impoverishment due to Covid-19

Food distribution: Respondents reported that food support was being distributed in their communities but expressed concerns that this was not being allocated effectively to those most in need.

Pensions: The only social assistance identified by respondents were pensions. Some reported delayed payments, though the Kenyan government allocated additional funding in April to clear arrears in payments (The Star, April 19 2020). 

Social protection:  Kenya’s social protection system targeted older people and orphans with cash transfers prior to the pandemic, with overall protection low at just 10.4% (ILO, 2020). The national treasury has allocated an additional 10 billion shillings to this programme since the pandemic. One respondent reported receiving a Covid-19 reprieve cash transfer worth 1000 shillings per week.

Key external sources

To find out more about the impacts of Covid-19 on poverty in Kenya, please explore the following sources that were reviewed for this bulletin:

This project was made possible with support from HelpAge International.