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Nepal
>> Regional Overview >> Nepal Overview ACTIVITY DATA SHEET
PROGRAM: Nepal
TITLE AND NUMBER: Increased Sustainable Production and Sales of Forest and High-Value Agricultural Products, 367-001
STATUS: Continuing
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: None.
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: None.
INITIAL OBLIGATION: FY 1992 ESTIMATED COMPLETION DATE: FY 2002Summary: Over 80% of Nepal's 23 million people depend on agriculture, agribusiness, and/or forestry for their livelihood. Pervasive poverty and rapid population growth in the rural areas are forcing farmers to use ever more marginal lands, leading to deforestation and soil erosion. Accelerating agricultural growth consequently has been a key component of USAID's strategy for alleviating poverty and facilitating economic development in Nepal. The purpose of this objective is to increase the sustainable production and sales of forest and high?value agricultural products. This will be accomplished by expanding market participation by farmers, traders, and entrepreneurs, and by promoting sustainable management of the productive resource base.
This objective is closely tied to U.S. Government interests in promoting broad-based economic growth through increasing opportunities for disadvantaged groups such as farmers and women. The objective also promotes a sustained global environment through programs to reduce forest degradation and to promote biodiversity conservation. The establishment and strengthening of popularly elected, community-based forest and irrigation water groups also contributes significantly to building democracy while improving local resource management.
Approximately 1.2 million rural poor directly benefit from this program. People throughout Nepal will benefit from the introduction of improved crop varieties, increased trade, additional off?farm employment opportunities, and increased access to high?quality/lower?cost agricultural products. Women beneficiaries make up over 46% of the participants in the high?value agriculture program and 80% of the participants in the community forestry program.
Key Results: Two primary results will indicate that this objective has been achieved: a) annual sales of forest and high-value agricultural commodities in targeted areas should increase from $3.2 million in 1993 to $37 million by 2002; and b) community forest and irrigation-user groups with fully developed management plans will increase from 586 (1995) to 2,700 (2002). Other results that indicate progress toward the objective include a) land turned over to forest-user groups will increase from 37,754 hectares (1994) to 150,000 hectares (2002); b) the number of buffer zone conservation committees sharing in national park revenues will increase from 0 (1997) to 50 (2002); and c) the annual production of forest/pasture biomass will increase from 174,000 cubic meters (1994) to 3,300,000 cubic meters (2002). Good progress is being made on these targets throughout the program.
Performance and Prospects: The production of high-value forest and agricultural commodities correlates strongly with increased family income and with shifts from subsistence to market-oriented production systems. The transfer of land and resources to private forestry and irrigation-user groups demonstrates the Government of Nepal's (GON) acceptance of the need for productive resource management by the private sector. It also increases the confidence of rural citizens in their own ability to manage resources; directly builds grass roots democracy; and demonstrates that democratic government can effectively and tangibly address the needs of its poorest citizens. Recent performance of USAID-sponsored activities has been very good, with all related indicators exceeding targets. Prospects are favorable for even greater contributions to an increased standard of living in rural areas, provided funding levels are maintained.
USAID assistance has helped to create market linkages for new technologies that improve production and has identified markets for forest and high?value agricultural products in Nepal and the South Asia region. At the national level, USAID is continuing to support development and adoption of export?oriented trade policies and implementation of natural resource legislation that expands community and private management of forest and water resources.
USAID works primarily with and through non-governmental organizations (NGOs), private firms, and GON counterparts on these activities. Community groups are given training and technical assistance, which increases their capacity to help themselves. Increased incomes from community-managed forests and irrigation schemes, as well as high-value crop production and marketing systems, are now being used to build roads, potable water systems, and schools, and to undertake other types of self-help development activities. Knowledge of improved technologies is increasing production and the competitiveness of Nepalese farm and forest enterprises in both local and export markets. Under a new development strategy, USAID will move to more cost-effective mechanisms, including greater use of local and international NGOs.
Possible Adjustments to Plans: As part of a USAID country strategy review, all activities have been scrutinized for development impact, and adjustments have been made to budgets and work plans. In particular, decisions have been made to discontinue support to livestock production, increase efforts to create sustainable marketing links between producers' groups and buyers at wholesale market centers, and to better target specific problems in the marketing chain through policy work. Under the new 2001-2005 strategy, this objective focuses on addressing second-generation issues with community forest-user and irrigation-management groups established under earlier programs. This includes better management of the forest and water resources under community control and ensuring equitable participation in decision-making and benefit distribution. These interventions will increase the chances that past investments will be sustained by Nepali beneficiaries. In addition, USAID is considering redirecting its high-value commodity program to focus on strengthening federations of producers and buyers' groups to further market development.
Other Donor Programs: USAID participates actively in donor thematic groups on forestry and agriculture/rural development. Community forestry programs, which are now spread across the country, are closely coordinated with the United Kingdom (U.K.), Australia, Switzerland, and Denmark. USAID's high-growth agriculture model is being replicated by the U.K. in eastern Nepal, by Germany and Switzerland in central Nepal, and by Denmark in western Nepal. USAID works in partnership with the Asian Development Bank to strengthen the GON's capacity to transfer the operation and maintenance of government irrigation systems to private water-user groups.
Principal Contractors, Grantees, or Agencies: Current partners include the Nepali Ministries of Agriculture and Forests and Soil Conservation; Winrock International Institute for Agricultural Development; Chemonics International; World Wildlife Fund; CARE; Canadian Center for International Studies and Cooperation; and the U.S. Department of the Interior.
Selected Performance Measures:
Baseline Actual (1998) Actual (1999) Actual (2000) Target (2001) Target(2002) Annual Sales of High-Value Agricultural, Livestock and Forest Commodities in Target Areas (U.S. $ millions) 3.2 (1993) 25.1 30.0 36.4 35.0 37.0 Farm and Forest Households Producing High-Value Products in Target Areas (Thousands of Farm and Forest Households) 23(1993) 160 247 266 280 300 Annual Production of Forest/Pasture Biomass (Thousand of Cubic Meters) 174 (1994) 1,400 2,448 2,785 3,000 3,300 Community Forest and Irrigation User Groups Formed with Management Plans in Target Areas (Groups) 586 (1995) 1,500 1,691 2,183 2,100 2,700 U.S. Financing
(In thousands of dollars)
Obligations Expenditures Unliquidated Through September 30, 1999 35,291 DA 25,170 DA 10,121 DA 400 CSD 46 CSD 354 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Fiscal Year 2000 0 DA 0 DA 0 CSD 0 CSD 0 ESF 0 ESF 0 SEED 0 SEED 0 FSA 0 FSA 0 DFA 0 DFA Through September 30, 2000 35,291 DA 25,170 DA 10,121 DA 400 CSD 46 CSD 354 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Prior Year Unobligated Funds 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Planned Fiscal Year 2001 NOA 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Total Planned Fiscal Year 2001 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Future Obligations Est. Total Cost Proposed Fiscal Year 2002 NOA 0 DA 0 DA 35,291 DA 0 CSD 0 CSD 400 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA
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Last Updated on: May 29, 2002 |
