This report explores the simultaneous concerns of poverty reduction and governance through the lens of human development. It draws on Nepal’s heritage in social mobilization to show how human development and good governance can create a virtuous cycle. As governance improves, resource allocation becomes more equitable, poverty declines and human development levels rise. As this report demonstrates, there are no “quick fixes”. Working towards good governance is a complex undertaking and without the effort, Nepal’s battle against poverty may end as a lost cause. This report amply illustrates a promising campaign to combat poverty.