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focusing on conserving and expanding the physical resources.
The eighth plan, following popular movement of 1990, was meant to
address the aspira� on of the people raised during the movement. With
inclusion of few popular programs, this plan chiefl y focused on sustainable
development, poverty reduc� on and on reducing regional dispari� es. Despite
the fact that Nepal con� nues to adopt reform programs, it was realized later
that the program should be � ed up with sectoral priori� es. The Ninth Plan
was � ed up with prospec� ve planning, and accordingly, priority areas were
iden� fi ed. In this plan the area of priori� es were agriculture and forestry;
water resources; human resource and social development; industrializa� on,
tourism development and interna� onal trade; and physical infrastructure.
Nevertheless the objec� ve was to alleviate the poverty.
The Tenth Plan came as Nepal’s Poverty Reduc� on Strategy Paper (PRSP)
with the main objec� ve of poverty allevia� on. The other objec� ves, closely
� ed up with poverty allevia� on, were to achieve broad-based sustainable
economic growth, social sector development, rural infrastructure and
targeted programs for targeted people. This plan acknowledged the need
for special treatment of marginalized and vulnerable groups of the society as
they failed to reap the benefi t of urban sector development.
Two consecu� ve Three year Interim Plans came a� er the end of a
decade-long Maoist insurgency in Nepal. The prime focus of the plan was
for relief, reconstruc� on, rehabilita� on, reintegra� on and revival of the
economy. Special focus was placed on inclusive growth to accommodate
marginalized groups on developmental ac� vi� es. Nevertheless, the overall
objec� ve was to alleviate poverty through pro-poor broad based economic
growth. It also gave emphasis on promo� ng good governance and eff ec� ve
service delivery, increase in investment in physical infrastructural, social
development and inclusive development process.
Sectoral Alloca� on
As Nepal underwent a shi� in its development priori� es over the years,
so has been the case for areas fi nanced by foreign aid. The areas of fi nance
and priori� es both have changed from donors perspec� ve. When Nepal was
following socialism fueled by dependency doctrine of newly independent
states in world, the priority areas of Nepal was the establishments of public
enterprises. Therefore, in early years, Nepal received aid for industrializa� on
along with transport, communica� on and other physical infrastructure.
The sectoral alloca� on of foreign aid shows that Nepal has been receiving
aid on the areas of agriculture including irriga� on and forestry sector;
Transport, Power and Communica� on; Industry and Commerce Sector;
Social services sector.
42
Changing paradigms of aid eff ec� veness in Nepal