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Nepal
>> Regional Overview >> Nepal Overview ACTIVITY DATA SHEET
PROGRAM: Nepal
TITLE AND NUMBER: Strengthened Governance of Natural Resources and Selected Institutions, 367-007
STATUS: New
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: $2,300,000 DA
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: $2,300,000 DA; $2,000,000 ESF
INITIAL OBLIGATION: FY 2001 ESTIMATED COMPLETION DATE: FY 2005Summary: Nepal suffers from a crisis of governance that threatens the gains made since the establishment of democracy in 1990. In this context, governance refers to the manner in which power is exercised in the management of a country's economic, environmental, and social resources for development. The four pillars of good governance-transparency, accountability, predictability, and participation-are either weak or nonexistent in Nepal. Citizens are increasingly disillusioned with democracy due to rampant corruption, poor use of public resources, and economic stagnation. A Maoist insurgency that aims to overthrow the current system of government is spreading, particularly in the rural areas. Although Nepal has the basic institutions of a modern democracy in place, it remains a semifeudal society with more than 80 percent of the population residing in rural areas. It derives its income from agriculture and the natural resource base. Nearly half of Nepal's citizens live in poverty, and poverty is worse in rural and remote areas of this mountainous state.
USAID will address these problems by strengthening governance, particularly in the management of the country's natural resources of forests and water, water that is used for irrigation and hydropower development. The development premise is that democracy can be strengthened in Nepal by institutionalizing the principles of good governance at the local level, and that management of the productive resources on which people depend for their livelihoods is the issue of most immediate self-interest to rural people.
USAID will strengthen rural community-based organizations that can control the management of natural resources so that they can exercise their democratic rights, act collectively to ensure the wise use of resources and benefits, and hold local government accountable. This approach builds on USAID's previous work with local forest and water-users' groups and women's microfinance institutions, which have resulted both in improved conservation of natural resources and increased household incomes in rural areas. USAID will support federations, associations, and selected government bodies that possess the potential to funnel citizens' demands upward into the national policy debate and to demand government accountability. In addition, USAID will work with government and nongovernment partners to address several national issues threatening Nepal's democracy, including corruption and the trafficking of women and children. Particular attention will be paid to increasing women's participation and leadership, since women in Nepal suffer disproportionately from poverty, illiteracy, and inequality. These factors are important contributors to the problem of trafficking of women. USAID's proposed interventions will help to prevent trafficking by increasing awareness and providing training to increase women's status.
Activities to strengthen governance of natural resources will include technical and organizational capacity-building for community-based natural resource management groups, as well as advocacy training. Activities to strengthen governance of other key institutions that are engaged in anticorruption and antitrafficking work will include training, provision of technical expertise, and limited commodity support. This program will utilize funds earmarked for biodiversity in its work with community-based forest management groups.
Key Results: Anticipated results include the following: 1) increased management capacities of natural-resource users' groups; 2) increased advocacy capacity of selected civil society groups at community and national level; 3) increased women's participation; and 4) improved performance of selected government institutions.
Performance and Prospects: USAID has worked extensively with natural resource users groups and women's groups in Nepal under previous programs, and will use these groups as an entry point for improving governance at the local level. In its natural resources program, USAID has advocated the need to ensure adequate benefits to local communities from the development and conservation of water and forest resources, and the prevention of trafficking. This experience provides a solid foundation on which to build the proposed new programs.
Possible Adjustments to Plans: None.
Other Donor Programs: The Asian Development Bank, the United Kingdom, and Denmark are working at the central level to address issues of governance, such as civil service reform and improved financial management. Other donors are supporting Nepal's decentralization efforts by strengthening local government entities, particularly the United Nations Development Program and the Asian Development Bank. Many donors are working to establish and strengthen local users groups for forestry (Switzerland, the United Kingdom, Australia, and Denmark) or irrigation management (Canada and the World Bank), but few are building the capacity of such groups to advocate with government entities. USAID is actively involved in donor coordination groups for democracy and governance, forestry and environment, and chairs the donor group on gender. These fora will be the principal means to ensure complementary efforts with other donors.
Principal Contractors, Grantees, or Agencies: Principal grantees are U.S. and local nongovernmental organizations using grants or cooperative agreements. Other expected partners are the Ministry of Forests and Soil Conservation, the Ministry of Water Resources, and the Ministry of Women, Children and Social Welfare.
Selected Performance Measures: Under development.
U.S. Financing
(In thousands of dollars)
Obligations Expenditures Unliquidated Through September 30, 1999 0 DA 0 DA 0 DA 0 CSD 0 CSD 0 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 0 DA 0 DA 0 DA 0 CSD 0 CSD 0 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 2,300 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Total Planned Fiscal Year 2001 2,300 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Future Obligations Est. Total Cost Proposed Fiscal Year 2002 NOA 2,300 DA 4,400 DA 9,000 DA 0 CSD 0 CSD 0 CSD 2,000 ESF 200 ESF 2,200 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 |
