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level and user level within and outside the Government system. 5) The
Government will try to achieve self-reliance in the longer term by enhancing
domes� c resource mobiliza� on while increasing quality and quan� ty of F A
during short and medium term. (Foreign Aid Policy, 2002)
F A Policy 2002 lays emphasis on concessional loans and grants, budgetary
supports, pu� ng in Nepalese resource persons in the technical assistance
provided by donors, one door policy for supports through INGOs and NGOs,
emphasis on domes� c resource mobiliza� on, leadership and ownership of
GON, suppor� ve role of Nepalese civil society, building na� onal capacity
and partnership, solici� ng an increased level of coopera� on from donors,
be� er understanding of donors with respect to sensi� vity, selec� vity,
avoiding trial and error methods, maintaining fi nancial discipline, refl ec� on
of fi nancial sources in the Annual Budget and improving donor procedures
(harmoniza� on). (Foreign Aid Policy, 2002)
Some strategies have also been discussed in the F A Policy, 2002 for the
implementa� on of policies adopted. Major strategies are: Formula� on of
Economy-wide and Sectoral Perspec� ve Plans, ensuring transparency and
accountability, enhancing the quality of aid, strengthening aid coordina� on,
project/ program iden� fi ca� on, selec� on, design and securing sustainability,
crea� ng a foreign aid MIS and promo� ng ins� tu� onal eff ec� veness. (Foreign
Aid Policy, 2002)
Harmoniza� on of Donor Assistance was discussed in the Nepal
Development Forum, 2004 (NDF, 2004). A dra� paper and na� onal ac� on
plan on harmoniza� on of donor assistance was presented in the NDF, 2004,
based on Rome Declara� on, 2003. Need of harmoniza� on of donor assistance
at three � ers in Nepal, namely, harmoniza� on at the overall program level,
harmoniza� on at the individual program level and harmoniza� on at the
fi nancial modality level was felt. Aid integra� on process was highlighted
with focus on support to PRSP and sectoral policies and harmoniza� on in
terms of joint programming, common procedures, common monitoring
and repor� ng formats and support to Nepalese fi nancial management
procedures. (NDF2004, 2004)
Nepal Donor Consulta� on Mee� ng was held in 2008, February (NDCM,
2008) a� er a gap of four years, that is to say, a� er NDF 2004. This mee� ng was
also dubbed Mini –NDF, held a� er Peoples’ movement, to discuss popular
aspira� ons of New Nepal, progress on Paris Declara� ons and peace dividend.
The major issues raised and discussed in the mee� ng on aid eff ec� veness
were: 1) need of support to relief, rehabilita� on and reconstruc� on (RRR)
and peace dividend, 2) rights based approach and community ownership of
development eff orts, 3) aid transparency, accountability and predictability,
4) na� onal ownership and harmoniza� on, and, 5) a double compact
between the GON and Nepali people and between the GON and the donors.
(NDCM2008, 2008)
Nepal Por� olio Performance Review was held on November 13-14, 2008,
jointly by MOF and some donors with the theme on strengthening country
systems for improved por� olio performance. A paper by the GON was
Changing paradigms of aid eff ec� veness in Nepal 91