This report for Nepal - Resilience amidst conflict, focuses on determinants of growth and income poverty, achievements and challenges in improving human capital (education, health, and child nutrition) and on understanding inequality and exclusion. It uses data from the two rounds of the nationally representative Nepal Living Standards Survey carried out in 1995-96 and 2003-04. The surveys were conducted by the Central Bureau of Statistics (CBS) with technical assistance from the World Bank using the Living Standards Measurement Study (LSMS) methodology. Data from the 1991 and 2001 population censuses and the 1996 and 2001 Nepal Demographic and Health Surveys were used to supplement the analysis.