The main reason behind the widening gap between the rich and the poor in LDCs is the capitalist system whose main objective is to reap profit. The day there is no profit, the system will collapse. Since profit is earned from investment of profits made earlier, there is no level ground for trade. On a macro level, this situation has benefitted developed countries that trade with underdeveloped ones.

The rich-poor gap is characteristic of the capitalist system. To stop this system from encroaching poverty-ridden areas, special arrangements have to be made. Education, skill and health facilities enable people to be more productive. If there is famine, the government needs to address the situation. Mass production must result in products being affordable to the poor also. Governments need to keep this in mind and such safety nets are in place in India. The government should look after basic needs such as education, health and skill training of the poor. In Nepal, primary education in public schools is free. Implementing such programs means that the state can minimise the effects of poverty.

Another problem is urban-centred investment. Private investment, foreign aid and government money are mostly spent in the capital. Even when it comes to public infrastructure, these are the places that benefit the most. There was a time when Nepalis serving in foreign armies returned to the villages. The rural economy benefited to an extent. Now even the lahures have begun to settle in urban areas like Pokhara, Butwal and Dharan. Gender and caste-based issues are other reasons for the widening gap between the rich and the poor. After the 1990 movement, the rift between dalits and other castes grew as the issue of land ownership and health facilities began. In the last 50 years, the people who had been left behind are still lagging behind.