Knowledge Note

Nepal is a low income country in South Asia, with 55 percent of the population subsisting on less than US $1.25 per day.1 Nepal’s economy is centered on subsistence agriculture. Remittances from abroad are a significant source of income for households, accounting for 23 percent of GDP in 2009.2 Nepal’s government has developed comprehensive health strategies, prioritizing interventions to achieve the MDGs. In 2010, the GoN and a number of development partners signed a Joint Financing Arrangement, further harmonizing the support for the health sector.3 Nepal has been making progress in maternal health. In 2005, the Safe Delivery Incentive Program was launched in all 75 districts of Nepal, and was found to effectively increase coverage of skilled birth attendance by providing demand-side financing for safe delivery