Urban poverty is becoming more pervasive in Nepal: The poverty rate is increasing in urban areas, whilst it is declining in rural areas (ADB, 2013; UNDP, 2014). There has been a noticeable improvement in the rural Human Development Index (HDI) value between 2006 and 2011, whilst the urban HDI value has remained constant (UNDP, 2014).
Urban poverty rates vary substantially across Nepal: Urban areas in the hill ecological zone are the least poor with a poverty incidence of 8.7 per cent. This increases to 22 per cent in urban parts of the Tarai, whilst Kathmandu has a poverty rate of 11.5 per cent (CBS, 2012).
Informal settlements are a relatively new phenomenon in Nepal and there is a poor understanding of the overall context of slums and squatter settlements (UN, 2013). The key trends are that:
The key trends are that:
The urban poor are vulnerable to natural hazards because of the location of informal settlements in marginal areas, the poor quality of housing, and the lack of assets to assist in their recovery. Slums and squatter settlements are often located in ecologically sensitive and marginal areas such as riverbeds, lowlands, and flood-prone areas (Muzzini & Aparacio, 2013: p. 63). Unplanned growth and poor enforcement of building regulations have led to substandard housing and the loss of open space. Narrow streets and the incremental growth of informal settlements increases the vulnerability of the urban poor to seismic hazards (Bajracharya et al., 2015; Muzzini & Aparacio, 2013).
Several dimensions of poverty that impact upon the vulnerability of the urban poor can be identified:
A number of factors contribute to increasing the resilience of the urban poor: Social organization within informal settlements, local level initiatives and self-help schemes are helping to reduce vulnerability of the urban poor. Squatters are relatively organized in demanding their rights (UN, 2013: p. 83), whilst locally established saving and credit groups and cooperatives are providing access to credit and financial assets (Dahal, 2011).
Government policies on urban poverty and informal settlements do not directly address the issue of land tenure (UN, 2013), and no policy exists to prevent unnecessary evictions and violations of housing rights (UN-HABITAT, 2010: p. 59). There is a lack of public investment in slums and squatter areas, and housing development trends in Kathmandu largely ignore the urban poor (Shrestha, 2013; UN, 2013). Evidence on the efficacy of government resettlement schemes is limited. Squatters have been refusing to stay in the new settlements due to the inadequate size of the new housing units, the location of sites far away from their jobs and the lack of facilities such as markets and schools (B. Shrestha, personal communication, 20 December, 2015).