Despite the ongoing conflict, Nepal has been able to jump three spots and enter the category of medium development countries from a lower grouping in this year's UNDP Human Development Report (HDR). The annual report has ranked the country 140th with a HDI (Human Development Index) value of 0.504, based on measures of life expectancy, school enrolment, literacy and income.

Nepal ranks 69th among 95 developing countries in the Human Poverty Index. Nepal's HPI has been out at 41.2 percent, which shows the country has been able to decrease poverty by 0.7 percent over the last year. Another favourable factor is GDP per capita calculated in purchasing power parity-up from last years $1,310 to $1,370. The average GDP of South Asian countries this year is $2,658. In the Gender-related Development Index (GDI) in South Asia, Nepal's GDI value of 0.484 ranked it 116th among 144 countries, up from last year's 0.479 mark.
Still, Nepal didn't fare so well in other HDR criteria: Nepal performs worst in net primary enrolment ratio. The eight years of Maoist insurgency, the report says, may be attributed to deep grievances stemming from the systematic marginalisation and exclusion of certain groups, ethnic groups, castes and women.

"In Nepal, the problems of social exclusion, structural inequality and discrimination have been commonly attributed as the root causes for the current conflict," said UNDP acting resident representative Nicholas Brown during the HDR launch on Monday. In South Asia's HDI, Nepal's position is better than only Pakistan which ranks 142. The Maldives has the best record, ranked 84th with an HDI value of 0.497.