The government of Nepal has identified poverty and social exclusion as root causes of escalating political conflict in the country and has prioritised poverty reduction for its tenth plan. Donors, the UN and NGOs alike share a similarly broad recognition of economic inequity and social exclusion as drivers/contributors to conflict and violence, although the particular explanations for this link vary.
In response to this recognition, both the international community and the government of Nepal have invested heavily under the assumption that an emphasis on inclusive income generation or employment will contribute to peace and stability. Numerous initiatives have emerged over the years during and following conflict that seek to enhance group and individual income-generation capacity through micro-finance, self-employment and jobs-for-peace type schemes.
Beginning in May 2009, International Alert and Samjhauta Nepal began exploring the links between income generation and peacebuilding in Nepal, in particular looking at ways in which links identified could be strengthened. The project worked through new and existing income generation groups in the Morang and Kailali districts, with Alert and Samjhauta working together to provide start-up capital for new enterprises, specialised conflict sensitivity training to local facilitators, and to explore opportunities for connecting groups to district-level networks and to strengthen both economic empowerment and access to peacebuilding networks.