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Foreign Assistance -- a Journey
that didn’t take too far
Priori� es in Development Plans
–Professor Bishwambher Pyakuryal
The history of development of Nepal begins with the fi rst fi ve year plan
implemented from 1956. To date, a total of 11 plans have been implemented.
The fi rst plan (1956-62) was followed by the Second (1962-65), Third (1965-
1970), Fourth (1970-1975), Fi� h (1975-1980), Sixth (1980-85), Seventh
(1985-90), Eighth (1992-1997), Ninth (1997-2002), Tenth Plan in 2002-2007,
and Interim Plan (2007-10) covering a period of over fi ve decades.
Compared to the four consecu� ve Plans (1956-62, 1962-65, 1965-70,
1970-75) that laid emphasis on building basic infrastructure, the Fi� h Plan
(1975-80) acknowledged people-oriented development and egalitarian
distribu� on built in the produc� on process. The underlying principle in
the Fi� h Plan was signifi cantly diff erent since its objec� ve was not only to
maximize the output but also to make output consistent with the minimum
felt needs of the people (NPC, The Fi� h Plan, 1975). The basic objec� ve
emphasizes mass-oriented produc� on and maximum u� liza� on of labor
force. The Sixth Plan (1975-80) spelt more loudly on mee� ng minimum basic
needs of the people by adding new dimension in the planning objec� ves.
Reduc� on in income inequality, by increasing alterna� ve employment
opportuni� es was therefore the priority of the Sixth Plan. Specifi c objec� ves
were to increase produc� on at a higher rate by increasing opportuni� es
for produc� ve employment. In view of this, the Seventh plan a� empted to
narrow down the gulf between planning and implementa� on. To achieve
this goal, it aimed at building up the produc� ve capacity of the economy by
Changing paradigms of aid eff ec� veness in Nepal 41