The starting point of this paper is that poverty is multi-dimensional, being not only concerned with economic, but also social exclusion – and thus powerlessness. Under the Nepal Swiss Community Forestry Project, five particular aspects of chronic poverty are recognised – class (economic status), caste, gender, geography and vulnerability (which may be a result of the first four, but also encompasses ill health, disability, and suffering related to the armed conflict).

Whilst it is difficult to identify precisely the extent to which spatial poverty traps contribute to chronic poverty, geographical isolation is one element, interacting with others. This paper describes the project's work in addressing chronic poverty through sensitising Forest User Groups – of which there are some 886 in the project area, representing some 92,613 households – to economic and social exclusion. Through a well-being ranking, the chronically poor are identified, and options for improving their livelihoods are explored by the FUG membership. Aspects considered include funds (loans at reasonable interest rates), representation in leadership positions, training for employment, educational scholarships, access to community forest land, pro-active inclusion in decision making processes, equitable access to forest products and the opportunity to participate in forest-based enterprises. The project monitors the extent to which FUGs make “pro-poor” provision in their planning and implementation, and the extent of social inclusion in decision-making processes. The latter includes records from meetings on the number of actively participating women and individuals belonging to disadvantaged groups; their representation on FUG committees, etc. The project is also seeking to challenge attitudes of social discrimination through demonstrating workforce diversity, and encouraging this amongst partners. However, the feudal attitude of the powerful towards disadvantaged households remains a major challenge in addressing chronic poverty.