Timely Move

Nepal being a developing country, it has had to depend a lot on foreign aid for its development efforts. Furthermore, as the nation opened its doors to the outside world comparatively much later than other countries, it fell even more behind in many vital sectors. So for the development of its economy, industries and other basic areas like roads, hydro-power, education and health among others, Nepal has been depending much on foreign expertise and resources. One factor in Nepal’s favour was the fact that it had the best of relations with virtually all the countries of the world. Therefore, there were and still are many donor nations and agencies which are only too eager to assist in Nepal’s development efforts. However, it is also true that a country cannot afford to be too dependent on foreign aid. It has to learn to be self reliant. But this process should be a gradual one. Specially a country like Nepal, which depends to a large extent on foreign loans and grants, cannot at once cut off such sources. However, at a meeting organised to discuss the preliminary draft report published by the Finance Ministry Foreign Aid Division the other day, Finance Minister Mahesh Acharya quite rightly emphasised that the nation in the long run will have to follow the path of self reliance.

But for now, the policy makers must make clear cut policies on how best foreign aid can be utilised. In this regard, using local experience and knowledge, will go a long way in maintaining a balance in all aspects of foreign aid. It is encouraging that the present foreign aid policy draft has put emphasis on gradually reducing Nepal’s dependence on foreign aid and for this it envisages "improvements in the utilisation of aid, resolving operational issues, making aid qualitative, enriching the policy related matters and making the economy efficient to raise resources required". Making a judicious selection of foreign aid and utilising them in the priority areas will contribute significantly in fulfilling the dual objectives of expediting the development process in the country and at the same time phasing out outside dependence. For now, it is a mature move on the part of the government to hold discussions with everyone before giving a final shape to this important draft. It can be hoped by incorporating different suggestions, a comprehensive and practical foreign aid policy will be prepared for the good of the nation.

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