Land is a principal source of income and employment for majority of households in
Nepal. Specially in rural Nepal which hosts 90 percent of population, size and quality of
farm land are determinants of poverty. Landless and very small land holders often are
engaged in informal credit relationship and have to bear also with unfavorable labor
relationship. Poverty in terms of land owned also means limited capability to benefit from
public services such as education and health. Land determines both the social status and
political participation. On the other hand, undeveloped state of agriculture: lack of
irrigation, use of traditional technology, subsistence production, inaccess to market, have
rendered even relatively large landholders into the state of poverty. Improved land
distribution accompanied with modernizing agriculture has potential to dramatically reduce
incidence of poverty which at present stands at 45 percent (APROSC and JMA, 1995).

Bibliography: Sharma, Shiva. Land Tenure and Poverty In Nepal; MIMAP-Nepal; April 4, 1999