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The survey, in brief, found that the donor’s actual disbursements are<br />

considerably less than the amounts pledged, a considerable amount of ODA<br />

does not come through the Government fi nancial systems, donors perceive<br />

that Nepal has a limited capacity to formulate and implement development<br />

programs, leading them to establish separate PIUs and direct budget<br />

expenditure and management of procurement of goods and services.<br />

Some suggested next steps were: 1) For Government, needs to create more<br />

incen� ves for donors to channel aid through country systems, performance<br />

based funding, E-bidding, PEFA ac� on plan, capacity development plan and<br />

advocacy to un� e aid, 2) for donors, donor decentraliza� on, commonly<br />

pooled technical assistance, common monitoring and evalua� on frameworks<br />

and all donors par� cipa� ng in NPPR exercise. (Nepal Country Report 2008<br />

Survey on Monitoring the Paris Declara� on, 2008)<br />

In 2010, Nepal Country Evalua� on, an exercise on a Joint Evalua� on of<br />

the Implementa� on of Paris Declara� on, was carried out by the Ministry of<br />

Finance and the development partners. The following are the main fi ndings<br />

and sugges� ons from that evalua� on work:<br />

The effi ciencies and eff ec� veness developed through taking a programme<br />

approach can be replicated in other sectors. The lessons from the sector<br />

programmes in educa� on and health are applicable more widely.<br />

Shared learning by GoN, DPs, civil society partners and service users and<br />

benefi ciaries can be of benefi t.<br />

• A focus on results increases responsiveness.<br />

MfDR has changed the way in which programmes are designed and<br />

delivered making delivery more responsive to benefi ciaries and puts<br />

the individual, family and community at the forefront.<br />

• Just by labelling it as a ‘Paris Declara� on Principle’ does not change<br />

what is already being prac� ced.<br />

Through the evalua� on many people discovered that what had<br />

become common and expected prac� ce was in fact the applica� on<br />

of the Paris Declara� on principles.<br />

• Paris Declara� on implementa� on has enhanced results.<br />

• Paris Declara� on principles are valid. Though it is too early to<br />

iden� fy plausible contribu� ons that relate to the Paris Declara� on.<br />

• The Paris Declara� on is not being adopted because of perverse<br />

incen� ves within<br />

Nepal and DP systems. (Nepal Country Evalua� on for Joint Evalua� on of<br />

the Implementa� on of the Paris Declara� on, Phase II, 2010)<br />

The key implica� ons of aid eff ec� veness for future are described as:<br />

Aid eff ec� veness is not simply about the effi cient and eff ec� ve ins� tu� onal<br />

dynamics of aid management, it relates to the processes through which<br />

policy, strategy and service delivery meet the needs of Nepal’s ci� zens. This<br />

requires improved ins� tu� onal capacity, access to informa� on and voice<br />

and par� cipa� on at all levels.<br />

Changing paradigms of aid eff ec� veness in Nepal 93

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