book1

ilateral ODA from DAC members, compared to only 12.9 percent in
1964 8 , Though technical assistance cons� tutes a large percentage,
the amount of aid under technical experts and volunteers costs are not
adequately refl ected in the aid fi gures published by the government of
Nepal (ibid). The share of technical assistance in total foreign aid further
increased in 1990s. Over 40 percent of all aid now is technical assistance and
free standing technical assistance, that accounts for the bulk of technical
assistance, has increased during the 1990-1999 period at an average
annual rate of 17 percent 9 . The use of foreign aid is highly infl uenced by
the donor agency rather than the need of Nepal. Interna� onal development
paradigms, contemporary development theories and their applica� on
by the infl uen� al donors such as the World Bank, ADB, USA, UK and UN
organiza� ons determine the priority of foreign aid. The foreign aid oriented
development ini� a� on has adopted the “copy and paste” of the world’s
best examples and global leading concepts of development modality rather
than iden� fying the country’s need and addressing it. The fact that more
priority was given to infrastructure in 1950s and 60s, basic need in 1970s,
the agriculture sector in the 1980s, the con� nua� on in increase in the share
of social sector from1990s, and the sharp decline in priority of the industrial
sector from the 1990s and emphasis in good governance and social exclusion
2000 onwards, are examples of this.
Impact of foreign aid: less intended and more unintended results
Foreign aid had provided not only the scarce resources to Nepal but
has shaped the en� re development model of the country. All development
approaches pursued by Nepal at diff erent � mes such as industrializa� on to
sustainable development, integrated rural development to
poverty reduc� on, fulfi llment of basic needs to structural adjustment,
import subs� tu� on to export oriented produc� on, and empowerment of
women to social inclusion are the result of foreign aid. All these are part of
the changing global development strategies over � me that were advocated
and ini� ated by donor agencies in Nepal. Thus, all the present outcome of
development in the country is the result of foreign aid oriented development
process. However, it will be injus� ce to undermine the role of internal
stakeholder of development.
Foreign aid has been unable to achieve its major objec� ves in Nepal.
By principle, foreign aid helps to bridge the resource gaps in short term so
that in the long term, the developing countries would be able to mobilize
their own resources for sustainable development. But, in reality, Nepal could
never mobilize its internal resources to meet the fi nancial requirements of
its development ac� vi� es. Similarly, foreign aid was started in the country
in the 1950s with the fi rst and foremost objec� ve of economic and poli� cal
stability. But, despite a regular infl ow of millions of dollars for more than
8. Khadka N (1991), Foreign Aid, Poverty and Stagna� on in Nepal, Vikash Publishing House,
New Delhi
9. Foireign Aid Policy 2002, MoF/HMGN
126
Changing paradigms of aid eff ec� veness in Nepal