Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
NEPAL
FY 1998 Development Assistance .......... $23,115,000 Introduction
The U. S. Government bilateral assistance program to Nepal supports the broader United States interest of maintaining Nepal's independence and stability as a buffer between two major powers, China and India. Small, landlocked and impoverished, the Himalayan Kingdom of Nepal was first opened to the outside world in 1951. The country was never colonized. Seven centuries of authoritarian rule ended only in 1990 with the establishment of a constitutional monarchy and multiparty democracy. Central planning is giving way to market-led development, and a more dynamic monetized economy is emerging as government policies are liberalized. Nepal has a strong record of support for positions favored by the United States in international fora, including participation in international peacekeeping operations. U.S. assistance, which has been provided for the past 45 years, has directly and substantially contributed to establishing a framework for achieving sustainable development and longer-term stability.
The Development Challenge
With an annual per capita income level of $210 (the September 1996 UNICEF Situation Report shows a figure of $190), Nepal is one of the world's poorest countries: half of Nepal's 21.4 million citizens live in absolute poverty. Average life expectancy is estimated to be only 54 years; infant and maternal mortality rates remain among the highest in the world; and the 1991 census shows only 40% of the population is literate (22% for adult women).
Rapid population growth of 2.5% annually exacerbates a difficult development environment and further complicates the delivery of services for the improvement of human welfare. The population increased by 65% to 21.4 million over the past 20 years, and it is expected to double within the next 27 years. The Government of Nepal (GON) strategy to reduce population growth recognizes that there is a large unmet need for family planning services, and a great number of gaps in service delivery. USAID is helping to expand the availability, access to and use of quality, voluntary family planning, and reproductive health services.
Reducing maternal and under five-year-old child mortality rates are complementary efforts. Due in part to USAID's efforts, results have been significant. The use of contraceptives has risen from 3% to 28.9% over the past 20 years; desired family size has declined from five children per family to 2.9; the under-five child mortality rate declined from 165 in 1991 to 118 per 1,000 live births in 1996; and the average life expectancy for women (lower than that of men) has risen from 49 years a decade ago to 53 currently. As a complement to these social initiatives, and recognizing the threat of a rapid spread of the HIV/AIDS epidemic in Nepal and throughout South Asia, USAID is employing proven methods to increase prevention and control practices of people with high-risk behaviors.
The poor are predominately rural subsistence farmers. Agriculture is the primary occupation for 80% of the economically-active population, and women perform approximately 70% of farm-related work. Subsistence farming reached peak productivity levels years ago as high population density resulted in over-exploitation of the natural resource base and erosion of soil fertility. Cultivated land constitutes only 18% of the total land area of Nepal, and opportunities to bring additional land into cultivation are limited. However, the Government of Nepal (GON) is giving priority, with good results and promise, to irrigation crop intensification, diversification, and commercialization.
USAID's strategic vision is to raise the annual agricultural growth rate from the current 3% to about 5%. Coupled with efforts to reduce the population growth rate to 2%, this will have significant impact on poverty reduction. Over a 20 year period, rural poverty could be reduced to 30% of present levels benefitting some 5.5 million people.
For development programs to be effective, the central role of women in the economic and social advancement of Nepal must be recognized and strengthened. While women are very disadvantaged in Nepal they are also key agents for change. As guardians of family health and primary providers of agricultural production, they shape the welfare of future generations. Since the 1950s the female labor force has grown twice as fast as the male labor force. However, low levels of literacy, limited access to resources, and limited knowledge of legal rights depress women's quality of life and hinder their participation in the economy. Twice as many men as women are literate and only two out of every 100 women have participated in legal rights education, community mediation, and local advocacy activities. USAID is working to strengthen women's capacity to be effective change agents by increasing women's literacy, knowledge of their legal rights, and access to economic opportunity.
Finally, progress in the energy sector is essential for Nepal's development, because the power shortage has constrained overall economic development and accelerated environmental degradation. Nepal has focused on developing its hydropower potential by encouraging private investment in power development and distribution, and by signing the Mahakali Treaty which allows for energy to be exported to India. To this end USAID has been assisting the Energy Development Center to establish procedures for attracting private investment to provide the financial resources and engineering expertise needed to develop Nepal's impressive hydroenergy potential. Already these GON measures, coupled with USAID assistance, have helped foster the single largest U.S. investment in the history of Nepal.
Other Donors
Donor assistance accounts for nearly 60% of the GON's investment budget. Approximately $400 million is provided annually by donors with the greatest contributions coming from Japan, the World Bank, and the Asian Development Bank. The United States provides about 5% of all donor assistance to Nepal.
FY 1998 Program
Priority investments in high-growth agriculture, family planning and health services, and the empowerment of women are strategic to Nepal's attainment of sustainable growth, broad-based development and longer-term stability. At the same time, these investments address global interests of respect for human rights, environmental protection, stabilization of population growth, and control of HIV/AIDS.
Development assistance is requested for the continued implementation of a focused, results-oriented program that builds upon the successes of past investments and capitalizes on current opportunities. Over 70% of the FY 1998 funds requested will be applied to the Agency goal of stabilizing world population growth and protecting human health. The balance of funds will be distributed between the Agency goals of broad-based economic growth and building democracy, with a higher portion allocated to economic growth. Over the next two years, the Mission plans to reduce its focus on Agency goals from its current level of four to two.
Agency Goal: Stabilizing World Population Growth and Protecting Human Health
Rapid population growth is a fundamental constraint to sustainable development in Nepal, and parental concerns about child survival are a deciding factor influencing demand for family planning services. A USAID Strategic Objective in Nepal is to reduce fertility and improve maternal and child health.
The delivery of contraceptive services is increasing in both the public and private sectors, and the number of new acceptors of temporary contraceptive methods nearly doubled over the past year. New standards for contraceptive services were developed and are being used in new curricula for service
providers, while national medical standards for reproductive health are still being developed. Through a distance education program, radio broadcasts keep health workers current and the public informed on family planning concepts and methods. Approximately 90% of births are taking place in Nepali homes. As many as 20% of these home births were made safer through the distribution of a home birthing kit designed to promote cleaner birth practices.
The frequent transfer of Ministry of Health staff from district and central offices is the major constraint to increasing the availability of family planning and maternal and child health services in the public sector. However, the very active and enthusiastic participation of international and indigenous nongovernmental organizations, private practitioners, and commercial retail outlets in extending services to the community has resulted in a productive public-private sector partnership in fulfilling demand for family planning and maternal and child health services.
Vitamin A capsule distribution to children has been phased into 32 of Nepal's 75 districts, with over 14,000 female community health volunteers providing life saving capsules twice a year to 1.4 million children. This results in a 30% reduction in the risk of mortality among children receiving capsules. USAID is also supporting efforts to combat diarrheal diseases and acute respiratory infections, the two major causes of death for young children.
Funding for continued growth of the family planning program in Nepal is essential for the increased contraceptive prevalence necessary to help couples achieve their desired family size of 2.9 children. Funding for Maternal and Child Health would support interventions designed to 1) promote treatment of diarrheal diseases, acute respiratory infections, and vitamin A deficiency; 2) encourage safer birthing practices and services; and 3) increase awareness and use of AIDS/HIV prevention and control services.
* Strategic Objective 2: Reduced Fertility and Improved Maternal and Child Health.
Agency Goal: Encouraging Broad-based Economic Growth
Agriculture offers the best prospects for broad-based growth and development in Nepal. Sustainable growth and development require rational use of the natural resource base. A USAID objective in Nepal is to achieve a sustainable increase in production and sales of forest and high-value agricultural products.In 1996, Nepal's agricultural gross domestic product (GDP) grew by 4.6%, and USAID achieved 107% of quantified targets for production and sales of forest and high-value agricultural products. During 1995, 57,400 metric tons of high-value commodities were produced, and commercial sales totaled $8.1 million in the Midwestern Development Region where USAID has been promoting production of high-value crops. Vegetable seeds and apples from USAID-assisted areas accounted for 50% of total national production and sales of these commodities.
In a joint venture with the Asian Development Bank, USAID's assistance with the turnover of government-operated irrigation systems (covering 15,000 hectares) to private user associations resulted in a 25% increase in incomes for 12,000 farm households. In another activity, USAID's support to 600 community forestry user groups improved management and productivity of 64,700 hectares of forest land. The value of biomass produced in forests under community and private management is increasing by over $10 million annually. In technology development, 20 new food and cash crop varieties and management techniques were released and adopted in the past year by over 130,000 farmers on 82,000 hectares of land.
USAID's involvement in developing legislation to provide communities with the legal right to manage their productive resources has had a substantial impact on increased agricultural productivity. Communities now have a clear stake in the sustainable management of the productive resource base,because they can legally benefit directly from increased productivity. USAID's rural economic development program capitalizes on the new legislation. USAID experience suggests that expanding production and sales of forest and high value cash crops holds considerable promise for empowering women; because an increasing proportion of community-based economic and natural resource associations are comprised of women.
USAID is encouraging the GON to further liberalize economic policies, privatize state-owned agricultural enterprises, and develop efficient agricultural research capability to provide the technology which is essential for achieving a sustainable increase in the agricultural growth rate. In addition, USAID proposes to continue working with the GON to identify private sector investment opportunities for rural hydropower development.
* Strategic Objective 1: Sustainable Increase in Production and Sales of Forest and High-value Agricultural Products.
Agency Goal: Building Democracy
The promotion of democracy through women's empowerment is a USAID objective in Nepal. For democracy to be effective at the local level, women must meet their basic needs and the needs of their families. The family is the nucleus of Nepali society. To organize the family through women's empowerment is to organize society, and to democratize the family is to democratize society.
The USAID strategy of empowering Nepali women focuses on three critical areas: literacy, legal rights and representation, and economic participation. There is a direct and positive link between literacy, awareness of legal rights, and income for empowering women to act for their well-being and that of the family. Program interventions address three key constraints to women's democratic participation: access to and control of personal income, access to education, and access to information. Women who become literate know their legal rights and participate in income-generating activities which improve their status within their households and communities. This new status allows women to participate in advocating issues affecting their lives and the lives of their families.
Results have been impressive. Over the past year, the literacy rate among adult women aged 15-44 increased to an estimated 35%; in 1991, it was 22%. USAID, with its partner organizations, continues to be the major player in this nationwide effort, and is directly accountable for almost half of this achievement--USAID assistance made 100,000 of these women literate in 1996 alone. This literacy program is showing results beyond the acquisition of basic literacy and numeracy skills: women take jobs which they could not get while illiterate, thereby bringing more income into the household to support their families; they feel more confident to participate in community advocacy and user groups; and they seek additional training opportunities, such as legal and business literacy.
Nearly 43,000 women were provided legal awareness and advocacy skills, which led to the formation of 800 new women's advocacy groups in several districts. Mediation committees and legal aid provided through three satellite offices helped about 500 women to seek redress and resolve their conflicts. Advocacy organizations have advanced women's inheritance and property rights as a national issue of unprecedented importance.
Between 1995 and 1996, the number of women borrowers tripled, resulting in a total of 13,450 borrowers investing in microenterprise activities. An increasing number of women are learning basic business skills. A total of 1,900 women passed a basic business literacy test. For economic participation, access to productive resources is critical to improving women's choices. Empowerment means women have a greater choice in how productive resources are allocated at the household level, and this choice usually has a positive impact on the health and education of their children.
* Strategic Objective 3: Empowerment of Women.
NEPAL
FY 1998 PROGRAM SUMMARY
($000)
Encouraging Economic Growth Stabilizing Population Growth and Protecting Human Health Protecting the Environ-ment Building Democracy
Providing Humanitar-ian Assist.
Total
USAID Strategic Objectives
1. Sustainable Increase in Production and Sales of Forest and High-Value Agricultural Products. Development Asst
$3,110
$2,200
$4,310
2. Reduced Fertility and Improved Maternal-Child Health. Development Asst
$16,805
$16,805
3. Empowerment of Women. Development Asst
$500
$500
$1,000
Total Development Asst
$3,610
$16,805
$2,200
$500
$23,115
USAID Mission Director: Frederick E. Machmer, Jr.
ACTIVITY DATA SHEET
PROGRAM: NEPAL
TITLE AND NUMBER: Reduced Fertility and Improved Maternal and Child Health, 367-SO2A1
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: 16,805,000 DA
INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 2002
Purpose: To reduce currently high levels of fertility and maternal and childhood mortality by expanding the availability, access to and use of quality, voluntary family planning and reproductive health services, and key child survival and maternal health services.
Background: Nepal is faced with major problems in the health sector that impact especially on women and children. Although significant advances have been made in some areas, the nation still faces high population growth rates, high maternal and child death rates, weak health institutions, a difficult geographical setting, and many social barriers to improved health practices.
USAID Role and Achievements to Date: USAID's support to the public and private sectors includes improving the quality as well as availability of family planning services, and selected community-based maternal health and child survival interventions. The total fertility rate has dropped from 5.6 children per woman in 1991 to an estimated 4.6 children in 1996. Contraceptive prevalence has increased from 24% in 1991 to an estimated 28.9% in 1996, and under-five child mortality has decreased from 165 deaths per 1,000 live births in 1991 to an estimated 118 deaths per 1,000 live births in 1996.
Description: USAID focuses on four activity areas: increasing the use of family planning (FP) services; increasing the quality of family planning services; increasing the use of selected maternal and child health (MCH) services; and increasing the use of HIV/AIDS prevention and control practices. Assistance is delivered to cooperating agencies through an integrated program of USAID bilateral and centrally funded field support. Technical assistance and local cost funding are provided to the Ministry of Health to strengthen an integrated logistics management system, family planning and reproductive health training programs, the FP/MCH service delivery system, and to increase awareness and use of FP/MCH and HIV/AIDS services through effective communications and counseling. USAID supports a private, nonprofit Nepali company that markets contraceptives and health products, accounting for 45% of the distribution of oral contraceptives and condoms in Nepal. USAID provides 60% of the contraceptives to Nepal for distribution by the GON, private commercial outlets, and NGOs. A network of U.S. and Nepal nongovernmental organizations (NGOs) provides community-based health and family planning services in 25 of Nepal's 75 districts. Female community health workers and community members participating in health education and adult post-literacy classes provide information and community-level services for diarrheal diseases, acute respiratory infections, vitamin A deficiency, child spacing, safe birthing practices and HIV/AIDS. This forms the basis for long-term sustainability of changed health behaviors and practices.
Host Country and Other Donors: USAID is the lead donor for family planning service delivery, a major contributor to selected maternal and child health programs (vitamin A, diarrheal disease control, and acute respiratory infection), and is the only donor supporting private sector family planning, HIV/AIDS, and other sexually transmitted disease interventions. The United Nations Children's Fund (UNICEF) assists with the national immunization program, control of diarrheal diseases, acute respiratory infections, vitamin A capsule supply, water and sanitation, nutrition, and basic education programs. The United Nations Fund for Population Activities (UNFPA) provides the balance of the contraceptive supplies, promotes population awareness, and supports family planning and safe motherhood programs. The World Bank supports construction and renovation of health facilities and warehouses. Host country contributions include procurement of some essential drugs and vaccines, payment of staff salaries and maintenance of facilities. USAID works closely with these donors and the host country in implementing its program.
Beneficiaries: Children under five years of age and women of child-bearing age in Nepal represent 35% of Nepal's population (about 7.2 million people). USAID-supported MCH programs reach over half of these customers. USAID's support to the family planning program potentially reaches the entire population of women (15-49 years of age) and men of reproductive age.
Principal Contractors, Grantees, or Agencies: USAID implements activities through the Ministry of Health, Ministry of Population and Environment, USAID Global Bureau Cooperating Agencies, a U.S. firm, private nonprofit companies, and U.S. and local NGOs.
Major Results Indicators:
Baseline Target
Total Fertility Rate 5.6 (1991) 4.0 (2002)
Under-five Mortality Rate per 1,000
Live Births1 165 (1991) 85 (2002)
ACTIVITY DATA SHEET
PROGRAM: NEPAL
TITLE AND NUMBER: High-Value Agriculture and Forestry, 367-SO01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING
G SOURCE: FY 1998; $4,310,000 DA
INITIAL OBLIGATION: FY 1992; ESTIMATED COMPLETION DATE: FY 2002
Purpose: 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, promoting sustainable management of the productive resource base, and increasing adoption of improved technologies for high-value agriculture.
Background: Accelerating agricultural growth is a key component of USAID's strategy for addressing the needs of the 80% of Nepal's population employed in agriculture and agro-based industry. Commercializing agriculture and improving management of the productive resource base are key elements of USAID's highly successful high-growth agriculture model, which has been established in the Midwestern Development Region of Nepal. Donors are now expanding this high-growth model into new geographic regions and further supporting the development of a policy environment which promotes the commercialization of agriculture.
USAID Role and Achievements to Date: The focus of USAID's support is to create market linkages for new technology inputs to improve production, and to develop markets for forest and high-value agricultural products in Nepal and the South Asia region. At the national level, USAID supports development and adoption of export-oriented trade policies, and implementation of natural resource legislation which expands community and private management of forest and water resources. As a result, sales of forest and high-value agricultural products have increased from an estimated $3 million in 1993 to over $18 million in 1996; production of vegetable seeds and apples in the Midwestern Development Region now account for over 50% of national production levels; and the legal framework for transferring up to 60% of Nepal's national forests to community-based user groups has been established. This has resulted in the turnover of over 64,700 hectares of forest land to community management. In cooperation with the Asian Development Bank, USAID is assisting with the turn-over of government-operated irrigation systems (covering 15,000 hectares) to private user associations. This has already resulted in significant income increases (approximately 25%) for 12,000 farm households. USAID will build on these achievements to help Nepal achieve sustainable economic growth.
Description: USAID provides funds to NGOs and private firms to develop community level capacity to produce, process, and market forest and high-value agricultural commodities. USAID also works with national level organizations, including the Agro-Enterprise Center of the Federation of Nepalese Chambers of Commerce and Industry and government ministries, to create an improved economic and business environment for export-oriented high-growth agriculture. Increasing access to improved technologies and increasing the competitiveness of community-based and small enterprises have fueled growth in production and sales. Greater community and private control of local natural resources is enhancing the quality and productivity of the resource base. Sustainability is further enhanced by strengthening government capacity to provide extension services in support of commercial agriculture, and by linking producers and community groups with private traders, agro-entrepreneurs and other market intermediaries to provide market information and access.
Host Country and Other Donors: A consortium of donors, including USAID, participated in developing Nepal's principal agricultural planning document, the Agriculture Perspective Plan, and is now coordinating with the Government of Nepal (GON) to implement the 20-year plan. The high-growth agriculture models being employed by the Overseas Development Administration (British) in easternNepal, and by German Technical Aid (GTZ) and the Swiss Development Cooperation in central Nepal are based on USAID's experience in western Nepal. USAID's efforts to strengthen the GON's capacity to conduct agricultural research and provide extension services complements similar efforts by the World Bank and the Asian Development Bank. The two banks also fund large infrastructure programs in irrigation and rural roads.
Beneficiaries: Approximately 1.2 million people (210,000 farm households) in the Midwestern Development Region will directly benefit from increased production and marketing of forest and high-value agricultural products. Many additional people throughout Nepal will benefit from the introduction of improved varieties, increased trade, off-farm employment opportunities, and increased access to high-quality/lower-cost agricultural products. Women make up 35% of the participants in the high-value agriculture program, and have traditionally been involved in production, processing and marketing of fruits and vegetables. USAID also will improve the nutritional status of women and preschool children in the Midwestern Development Region. This is part of a new initiative to link nutrition with increased production and consumption of high-value, micronutrient-rich foods.
Principal Contractors, Grantees or Agencies: USAID implements activities through two U.S. firms, a Nepali private firm, the private Agroenterprise Center of the Federation of Nepalese Chambers of Commerce and Industry, and U.S. and local NGOs.
Major Results Indicators:
Baseline Target
Production of forest and high-value
agricultural commodities (metric tons) 21,428 (1993) 170,000 (2002)
Annual sales of forest and high-value
agricultural commodities ($ 000) 3,200 (1993) 40,000 (2002)
ACTIVITY DATA SHEET
PROGRAM: NEPAL
TITLE AND NUMBER: Empowerment of Women, 367-SO03
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $1,000,000 DA
INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 2002
Purpose: To enable women to improve their own and their families' well-being by facilitating their access to literacy, income generating opportunities, and legal rights.
Background: Nepal needs the full participation of women in its struggle to confront the challenges of poverty. Women constitute more than half the population, and are the primary providers of subsistence for much of the population in Nepal. Yet, as the country continues the struggle to develop, women continue to be marginalized in terms of literacy, legal rights, economic opportunities, and general control over their lives. Women's status is a marker of Nepal's ability to participate in the increasingly complex global economy and to redress the overwhelming poverty enveloping the country.
USAID Role and Achievements to Date: USAID chairs and shapes the agenda for a large donor working group on women and in this capacity has become recognized as the lead donor agency addressing women's issues in Nepal. USAID interventions--literacy, legal rights, and economic participation--are inextricably linked to the empowerment of Nepali women and their strengthened participation in the overall economy. Numerous studies support this premise.
In the past year the programmatic linkages between USAID interventions and women's empowerment have been refined and strengthened. Activities are currently being implemented by eight nongovernmental organizations. These organizations are coordinating their activities to ensure that participating women benefit from multiple interventions. For example, women participating in microenterprise programs are often graduates of basic literacy classes. Women who have completed basic literacy classes are also provided the opportunity to participate in legal literacy classes and advocacy groups.
In 1996 100,000 women became literate, 43,000 women learned of their legal rights, and 34,500 women participated in savings and credit programs. These women are empowered by their successful participation in these programs: they are better able to direct the allocation of household expenditures toward investment or consumption which improves their own and their families' well-being.
Description: USAID will continue to focus in three areas to empower women: increasing adult female literacy rates; improving the legal status of women; and strengthening women's economic participation. Literacy, which is central to the process of empowering women, is an agent for awareness and change. Women's literacy groups are entry points for income-generating activities that also facilitate more effective participation in markets. Since women's legal status also impacts on their ability to contribute to and benefit from economic opportunities, USAID works with the same women's groups to improve their knowledge about the law, legal processes and the judiciary. As these women gain confidence and take an active role in decision-making, families can better confront the challenges of poverty in Nepal. Empowered women will support poverty reduction efforts, achieve significant productivity gains, and have a positive influence on their children's health and education. Their improved status is pivotal to political and economic change and the ability of Nepal to participate in the increasingly complex global economy.
Host Country and Other Donors: USAID has become the recognized leader in supporting empowerment of Nepali women. UNICEF believes that to help children, women must be empowered. Their programs target women for health, water, education, and advocacy. The Asian Development Bank has a comprehensive program in microcredit for women through Nepali NGOs. USAID is the lead donor in adult female literacy and for legal rights as a post-literacy activity. Formal collaboration occurs through the USAID-chaired donor group in which representatives of the Ministry of Women and Social Affairs participate.
Beneficiaries: The direct beneficiaries are primarily adult women of Nepal aged 15-44. On a nation-wide scale they constitute 22% of the population or 4.7 million people. Indirect beneficiaries are their families.
Principal Contractors, Grantees, or Agencies: USAID implements activities through a combination of U.S. and Nepali NGOs.
Major Results Indicators:
Baseline Target (Cumulative)
Adult females between ages 15-44 who 900 (1991) 1,500 (2000)
are literate (000)
Adult females between ages 15-44 who have 43 (1995) 150 (2000)
legal literacy (000)
Number of small enterprise loans to women (000) 2 (1994) 100 (2000)
![[USAID Home]](/images/usaid.gif)
[USAID Home]
[CP 98 Home]