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countries to the poor ones help to distribute global resources more equally,
which, in the long run, is benefi cial and is also a prerequisite for con� nued
welfare and growth of the rich industrial countries. Growing poverty in many
underdeveloped countries and the widening gap between the rich and the
poor supposedly poses a threat to the security of the rich na� ons. Thus, this
is the general hidden mo� ve of all donors to Nepal behind their assistance to
the poor ones: to tackle this possible threat to their own security.
Small European donors, like Denmark, Norway, Finland, Netherlands
seem to be the ones providing aid more on humanist grounds and to transfer
their own development experiences to Nepal. However, it does not mean
that these countries did not have the mo� ves of opening market and global
security, a general mo� ve of all developed countries.
Socio-economic development is the global objec� ve behind aid from
mul� lateral ins� tu� ons such as WB, ADB and UN agencies. Their global
interest of helping developing countries and raising the living standards of
people is valid in Nepal too. In line with their global agenda, the ini� a� on
of these mul� lateral banks’ aid programmes in Nepal is to integrate the
country into the global economy – the hidden agenda of western countries.
Similarly, the UNDP’s interest is to secure security, and to contribute to
poverty reduc� on goals 6 .
Likewise, the ruling party and government of Nepal also have their own
hidden agenda with foreign aid infl ow. Despite theore� cal need of foreign
aid to bridge the technological and fi nancial gap, the past experiences show
that the foreign aid has remained means to stay on power. The amount of
foreign aid infl ow into the country and donor’s support in the development
are considered as a measuring rod of judging the strength of poli� cal party
or government. Rather than u� lizing it, each poli� cal party in government
counts the amount of foreign aid that could enter in the country during their
tenure. Moreover, it is an easy way to collect resources. It needs neither
brain storming nor puts any risk of being unpopular by levying tax on people.
Further, grant aid is not to be paid back while loan aid will be paid by future
genera� on.
Foreign aid: volume, sources, types and priority sectors
None of the responsible government agencies in Nepal can give
the accurate amount of the total infl ow of foreign aid to the country.
Government has the record of only budgetary support of foreign aid while
a huge amount of foreign aid such as some INGO’s contribu� on and support
of some missionary organiza� ons are believed to be aid out of record. Even
the MoF does not have full record on actual foreign assistance received and
its use.
The amount of foreign assistance included in the budget is almost equal
to the amount of foreign assistance that is not included in the budget 7 .
6. SECOND COUNTRY COOPERATION FRAMEWORK FOR NEPAL (2002 - 2006), UNDP Nepal
7. Based on the interview with Mr. Bishnu Bahadur KC, Auditor general, Deshantar Weekly, 4
March 2000
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Changing paradigms of aid eff ec� veness in Nepal