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VOL. 27, NO. 45, July25 , 2008 (Shrawan 10 2065 B.S.)
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Foreign Aid
The book highlights effectiveness and analysis of foreign aid to Nepal
By A CORRESPONDENT
Despite certain drawbacks and political and economic attachment, foreign aid has played a very important role in overall social and economic transformation of Nepal. When the country opened its door to outside world in 1951 following the political change, Nepal had virtually nothing.
From the making of new political institutions like executive, judiciary and legislative to building infrastructures like roads, hydro powers, education, drinking water, health and know how of banking system, the contributions made by foreign aid have been extremely important.
Is Foreign Aid Working?
An analysis of aid effectiveness and growth
By: Bishwambher Pyakuryal, Dadhi Adhikari and
Dipendra Purush Dhakal
Pages: 118
Published by: Mandala Book Point, Kantipath,
G.P.O. Box 528, Kathmandu, Nepal
Telephone 977-1-4227711,
4245570, 4249555, and 4255444
Email: books@mos.com.np/mandala@ccst.com.np
www.mandalabookpoint.com
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Even after fifty years of going through processes of all kinds of development, the country is yet to have resources to mobilize the revenue to support the education, health and other social sectors. If the donors do not offer generous support, Nepal's half of the development projects will be stopped.
Of course, many foreign aid come with attached agenda but it is the government policy and its bargaining power, which gives them the leverage. For a least developed country like Nepal, there is a very nominal leverage.
The effectiveness of the foreign aid is determined by its own strength. A country like Nepal has very little choice and thus forced to accept all kinds of terms and conditions. So, there is mixed result of foreign aid in Nepal.
"Globally, foreign aid regime shows a mixed result both as a success or failure story. In Nepal, our findings reveal that, in general, foreign aid is successful because it has generally contributed to economic growth. Foreign aid has been increasingly contributing to the national financial requirements over the years,"0 write authors in the executive summary.
Although more than five decades have passed since Nepal opened its door to foreign aid, Nepal has received enormous volume of foreign aid in its overall economic development and transformation of social system.
Nepal developed its foreign aid policy just in 2002.
Written by three prominent persons Dr Bishwambher Pyakuryal, Dadhi Adhikari and Dipendra Purush Dhakal, the book talks about the foreign aid policy of Nepal and its implications.
After Eugene Bramer Mihaly's book on Foreign Aid and Politics in Nepal, a Case Study, Pyakuryal, Adhikary and Dhakal's book is first-of-its-kind, which analyses aid effectiveness and growth. They analyse the institutional capabilities, mode of foreign aid as well as its effectiveness in society. Authors discuss the way of utilization of foreign aid in Nepal and its internal linkages with the Institutions.
With the complete data of foreign aid in Nepal in the last five decades, authors have drawn the conclusion of effectiveness of the foreign after analysing the projects and programs implemented in the country.
At a time when some left-leaning intellectuals have been making efforts to discredit the contribution made by generous aid by foreign countries, the authors objectively discuss all different aspects of foreign aid. "Although the quality of aid has increased after the implementation of Foreign Aid Policy, there are still some serious problems associated with the management of aid," write authors.
For scholars, donors, academicians and students of economics, the book is very useful.
