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Do social security allowances empower or disempower endangered Indigenous groups in Nepal?

April 20, 2026

Nepal's constitution guarantees social protection for vulnerable groups, with over 85 programs currently serving approximately 3. 8 million people, including 10 endangered Indigenous communities receiving monthly allowances. While social security payments have enabled families to afford education, healthcare, and small business ventures, critics warn that cash transfers alone risk creating dependency and eroding traditional livelihoods without complementary development programs.

Who is affected

  • 10 endangered Indigenous communities (Bankariya, Hayu, Kisan, Kusbadhiya, Kusunda, Lepcha, Meche, Raji, Raute, and Surel)
  • Approximately 3.8 million people currently receiving social security allowances (13% of Nepal's population)
  • An estimated 20.1 million people in Nepal without any social protection
  • Senior citizens, economically disadvantaged groups, Dalits, people with disabilities, children, single women, and members of endangered castes
  • Santoshi Bankariya and the Bankariya community
  • The Raji community in Chaukune Rural Municipality of Surkhet District
  • The Raute community (experiencing dependency issues)

What action is being taken

  • The Nepal government is providing monthly allowances of NPR 4,000 (USD 27) to members of endangered Indigenous communities through the Ministry of Federal Affairs and General Administration
  • The government is promoting electronic payment systems for social security allowances
  • Community members in the Raji community are using allowances to start small businesses, cooperative savings programs, and cultural preservation initiatives

Why it matters

  • This matters because social protection programs serve as critical tools for addressing multi-dimensional poverty and supporting communities at the bottom of Nepal's social and economic pyramid, particularly as the country has committed to international obligations under conventions like ILO Convention No. 169 and the UN Declaration on the Rights of Indigenous Peoples. The effectiveness of these programs directly impacts Nepal's ability to achieve the UN's Sustainable Development Goals, particularly eliminating extreme poverty. However, the current approach risks creating long-term dependency and cultural erosion among Indigenous communities if not complemented by comprehensive development strategies that address structural inequalities, preserve traditional knowledge systems, and promote genuine self-determination. The politicization of social protection also threatens to undermine its effectiveness and transform it into a tool for electoral gain rather than sustainable community empowerment.

What's next

  • Experts urge the Government of Nepal to continue promoting electronic payment systems while ensuring accessibility and protection against duplication and misuse
  • Activists argue the federal government should become involved in managing allowance distribution
  • Experts recommend implementing targeted orientation programs for Indigenous groups to promote effective and responsible use of allowances
  • Policy experts suggest considering longer-term support measures including access to land, secure housing, residential education opportunities, and fair representation in government as complementary strategies
  • There is advocacy for linking allowances with livelihood programs, such as Indigenous enterprise development, to revitalize traditional community skills

Read full article from source: Global Voices