Post 2015: Global Action for an Inclusive and Sustainable Future

• Nepal
after over 200 years as a kingdom run by hereditary
and autocratic rulers, nepal elected a democratic
government in 1990. political differences quickly
emerged and led to a maoist insurgency from
1996 to 2006, when the insurgents joined with
the political parties to oust the ruling monarch.
although work on a new constitution began, it has
yet to be completed because of frequent changes in
government coalitions. the civil war and subsequent
instability have meant that nepal has not attracted
large-scale foreign investment in any productive
sector and the economy has remained weak. Donors
have also been wary, focusing on the social sectors
and often managing their own projects rather than
channelling support via the government.
the mDGs and donor preferences for them have
contributed to guiding development policy in nepal.
South–South cooperation (SSc) and migrant
remittances have also been important drivers of
development. In its mid- to long-term plans over
the past decade, the government has focused on
two priorities: infrastructure development and
poverty reduction. the mDG targets are therefore
integrated into these strategies, together with an
emphasis on physical infrastructure (hydropower
and strategic roads network, including interdistrict
highways) designed to promote economic
Box 2.1 Nepal’s MDG achievements
Nepal has substantially reduced poverty.
According to the World Bank, the proportion of
people living on $1.25 a day (PPP) was down to
24.8% in 2010, from 53.1% in 2003 and 68% in
1995.
The 2010 MDG progress report (National
Planning Commission, 2010) indicated that Nepal
is likely to achieve some of the targets. In addition
growth. the government’s prime strategy was first
to achieve growth and then tackle distribution.
Since 2000, government policies have been
influenced by donors, giving rise to an increased
focus on social challenges to the detriment of other
sectors. nepal’s reliance on aid and its very low FDI
flows help to explain this situation. In fact, foreign
aid represents around 25% of nepal’s national
budget as significant amounts of aid other than
Dac oDa also enter the country. the comparison
between recent disbursements with those prior to
2000 makes it clear that donors’ preferences shifted
toward social sectors in line with the mDGs, thus
diverting funding previously focused on productive
sectors (e.g. industry and commerce, transport and
communication, agriculture). Southern partners,
however, particularly china and India, have shown
an interest in developing nepal’s hydropower
potential.
nepal’s development progress is also driven by
remittances. In 2010, these were estimated to have
contributed 22.6% of its GDp. the World bank
(2011) found that between 1995 and 2004, up to
half of nepal’s overall poverty-reduction rates
could be attributed to remittances and that they
continue to play an important role. almost 80% of
these remittances are used for consumption and
to the decline in poverty, the net school enrolment
rate has increased to 93.7% and gender parity in
enrolment for primary education has already
been achieved. Under-five mortality and maternal
mortality rates have been reduced to 50 per 1,000
and 229 per 100,000 live births, respectively. It is
doubtful that the MDG targets on environmental
sustainability will be reached. (Nepal case study
and World Bank online databank)
poSt-2015: Global actIon For an IncluSIvE anD SuStaInablE FuturE
The MDGs and
donor preferences
for them have
contributed
to guiding
development
policy in Nepal.
South–South
Cooperation (SSC)
and migrant
remittances have
also been
important drivers
of development.
29