Experience in Nepal Local Development and Service

Experience in Nepal

Local Development and Service Delivery Mechanism In Nepal Central Level Ministry Pre 1990 Donors Departments INGO 1990 - 1999 & 2003 - 2007 2000 – 2002 Post 2007 LSGA Dist Dev Committee District Level Private Sector VDC Level Missing 1990 - 2000 & 2003 Accountability - 2007 Community Households LA Offices LED Model NGOs/ Civil Society VDC Sub-offices Missing Accountability HH HH User Groups, CBOs, Mothers’ Groups, CMCs Income Education Health Human Security

NEPAL B. E. CONTEXT • Post-conflict situation with a poor investment climate due to difficult political transition and rising crime: at the same time, conflict did not destroy infrastructure, institutional structures, etc • Limited decentralized development investments sustainability and impact for growth and employment creation due to: § Short one year planning cycle (dominated by politicians and local government officials in the absence of locally elected representatives) § Excessive emphasis on community and household level investments § Fragmented sectoral approaches to development (e. g. infrastructure investments not linked to building key competitive advantages for growth and job creation) § The transition of the role of Government in PSD from ‘managing’ to ‘facilitator’ is slow

NEPAL B. E. CONTEXT (Cont’d/-) • High dependency on foreign remittances: it’s the largest sector of the economy after agriculture • High levels of underemployment and poverty: Nepal is a landlocked LCD • Women, Indigenous People and Excluded Castes marginalized in enterprise development and employment (decision-making and receipt of benefits) • Government does not understand its (ideal) role as catalyst and facilitator of private sector-led growth: it wants to be the manager of PSD!

LED Key principles Integrated approach Territorial approach Sustainability and decent work Good governance

LED strategic planning The Em. PLED process of six phases: Territorial Creating diagnosis and institutional mapping or Sensitizing Coordinate or Designing create promoting an LED implemena local forum strategy tation structures Evaluating and monitoring activities

Em. PLED STEPS • • Project formulation Stakeholder orientation meeting – overview of LED and Em. PLED and promotion of LED Forum. Data collection for rapid socio-economic profiling (GPRP). Introductory workshop for all key stakeholders – findings of GPR profile, consider hypothesis, and decide on immediate priority areas. PACA (participatory appraisal of competitive advantage) – gather additional detailed information on priority areas. Start-up workshop to agree quick impact activities for priority areas, establishment of LED Forum and implementation. Longer term planning and action plans and leveraging of support funds. Implementation, monitoring and evaluation.

LED Forum_ Unique Nepali Public, Private, civil Society Partnership TRADE UNIONS PRIVATE SECTORS LED GOVERNMENT LINE AGENCIES Forum TVET, BANK, NGOs, IP’s & Dalit

Em. PLED Nepal’s Components 1. Capacity Development of Stakeholders 2. Food Value Chain 3. Tourism Value Chain

LED Forum, identifies priority, area Food value chain Training, network formation High value cropping seeds Trainings Resources Marketing training Experienced Lead Farmers/certifi cation farmers Results: 8, 000 farmers trained access to Coope services/market rative 40 certified ELF 320 ha Irrigation Command area LED Radio developed Program 30 Km Agriculture Road 16 sq. Km watershed Managed 143, , 450 Work days Job created & income 2 -3 $ per day Exposure visit to successful cases Rupendehi Training and income for farmers Irrigation Canals CORE Road middlemen wholesalers Link to Wholesaler Farmers Associatio n & link to DADO Markets

LED Forum, identifies priority Junar value chain Training, network formation Intercropping seeds Marketing training Exposure visit to Kathmandu Experienced Lead Farmers Results: 1, 500 farmers trained and gain access to market 170 organised Sales/Income increased Road CORE Training Resources Training and income for farmers Coope rative middlemen wholesalers Link to super market Markets

Numbur Chees & IP tourism value chain LED Cooking, Exposure Home-stay Training and Forum, home-stay visit income for improvement identifies management local workers Guide priority training Access road training Trail improved Campsites developed Product development Training Resources Results: 27 home-stays, 9 VTC 31 km trail, 10 km road 38 people trained 15, 000 actor connected Promotion taking place Tourists are starting to use the trail CORE Guides, Porters, Home-stays Tourism committees Agents Link, visit to trails National and international promotion, brochure, map, Website Markets

Some “early signs” • Tripling of sales in junar and potato • Incomes generated from tourists on two new trails • Better quality potato seeds, sales increased due to new markets • Productivity up and more rice, vegetables grown in Kamala irrigation area • More vegetables grown in Khimti irrigation area • First sales made from fish pond & Association of Fish Farmer • More enterprises joining flower value chain • VAHW earning Rs 3, 000 to 12, 000 per month • 8, 500 households benefited directly from Em. PLED 15

Increased outreach through “demonstration effect” • Replication of LED approach by other projects • Potato store and training • Solar irrigation pump • Fodder grass • Asparagus (4 villages) • Radio programmes (4) • Watershed – funding being sought • Irrigation – funding likely in Kamala, sought for other districts • VDC planning (87 in Dhanusha), also in other Districts 16

Lesson Learned • Project successfully introduced a new Integrated approach under difficult circumstances • Responded flexibly and appropriately to emerging opportunities • Objectives and outputs largely achieved • Significant outreach and impact likely • Stakeholders and beneficiaries very positive • Some changes in strategy would enhance effectiveness, impact, sustainability • 3 years is too short for LED 17

Em. PLED NAMASTE