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  Kathmandu Monday February 11, 2002 Magh 29,  2058.


How long can govt afford self-deception?

By Satyendra Timilsina

KATHMANDU, Feb 10: The recently concluded Nepal Development Forum (NDF) meet underscores the fact that the donors are ready to help bailout Nepal from any crisis. But then, it is the government that now has to capitalise on the support that the donors have pledged for.

The donor community has played their part well. Their endorsement to the Poverty Reduction Strategy Paper (PRSP), the Tenth Five-Year Plan (TFYP) and the Medium Term Expenditure Framework (MTEF) and commitment to provide US$ 500 million annually is a notable achievement.

But most important is the positive response the donors showed to the PRSP, which outlines that the donors would not be allowed to select priority areas of their own but should rather work in areas that the government stipulates.

And now that Nepal received what it had dreamt for at the meet, it is faced with the task of meeting the donor’s expectations. In short: "The ball is now in the Nepali court and all depends on what it does to keep up to the promises it made during the meet."

The NDF meet had begun with a bold statement from the vice president of the World Bank who lambasted Nepal’s poor governance. She had stated that Nepal currently faced a crisis of good governance. But she had added, "Poverty in Nepal is the poverty of means, not minds."

And though Nepal reciprocated by convincing the donors that it would carry out the promised reforms zealously, question arises if the government would really be able to overhaul the corrupt bureaucratic system where service delivery is beyond the reach of the general public.

The government had made a number of commitments even in the past. Though successes cannot be denied, governance has always remained a problem. But henceforth, failure to deliver on "governance" would only taint Nepal’s image in the international arena, and that is what the government needs to keep in mind.

The finance minister indeed was able to assure the foreign delegates that he would mobilise the foreign-acquired resources efficiently. He even admitted that Nepal would loose its moral rights to ask for additional financial support if it fails to incorporate the donors’ genuine demand. Unfortunately, the finance ministry alone cannot improve the country’s weak governance.

The actual disbursement of the committed financial support would rely mostly on how the government initiates its actions to fulfil its commitments – improve weak governance by strengthening its implementation machinery. However, to ensure that development endeavours go unrewarded, there is an urgent need to increase even the absorptive capacity.

Taking into the fact that the only half of the budgeted development expenditure is disbursed and even less is actually utilised, the government has to strengthen the implementation machinery for the desired output of the perspective plans.

This calls for strong co-ordination among the line ministries, whose functioning so far has been blighted by power struggle and political interventions. Therefore, a major task before the implementation of the reform programme is to improve the work culture in the ministries to increase the efficiency in service delivery.

Furthermore, the success of the government’s will to improve governance depends a lot on the endemically weak political leadership that is prone more to self-seeking and petty squabbling than honestly reasoning together in the interest of public good and personal image.

The need of the hour is to ensure that the donors’ expectations are met. Especially under the present circumstances when resources mobilised internally are below regular expenses. And if Nepal fails to deliver even at this juncture, perhaps a long wait would be required to see any silver lining in Nepal’s development.

It is now high time that we stop deceiving ourselves. Especially since the figures are there to speak for themselves. Almost 38 per cent of the population live under poverty line, 300,000 unemployed people enter the job market annually, irrigation is yet to cover two-thirds of the cultivable land, many district headquarters have not even seen road links and essential services are yet to reach out to the total population.


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