Can we reduce aid dependency?

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Can we reduce aid dependency?

FROM ISSUE #478 (27 NOV 2009 - 03 DEC 2009) | TABLE OF CONTENTS

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This week, in 'Politics of aid', Rabin Subedi says:

"More than 60 per cent of Nepal's development budget comes from foreign aid, but a Finance Ministry official admitted recently that there had been no progress in enforcing international aid guidelines.

"This has not just made aid less sustainable and increased dependency, it has also resulted in wastage, duplication and aid failure and ineffectiveness."

Considering that the long-term economic growth of the country cannot be sustained through foreign aid, we want to hear your opinion on the question: How can we reduce aid dependency in Nepal?

Please leave your comments below.

1. allare nepali
jabo everestma cabinet meeting garna ta bideshisanga haat pasaarne sarkaarbata dherai apekshya garnu afnai bauddhikta ra samrthayata maathi khilli udaunu ho....aba chharjana jaane bujhekale conference ra meeting gardai aayekopani jhandai 20 barshanai bho, foreign donation bhandai, ahilesamma kehi lachhaarpaato lagauna sakeka hainan aba ajhai 20 birsa yaso garnu bhayena bhanera bitaunchhan jasto chha...ajhai kaati meeting ra eating gardai jaane ho jane bujheka ra hunekhaanekale..

Posted on: 30 NOV 2009 | 2:59 PM NST

2. Abhinav
Not until there is a sea change in the political 'top management".

Posted on: 30 NOV 2009 | 3:28 PM NST

3. Shellfish
The problem is not just about management, its also about having enough capital to fuel a healthy economy. The private sector is too small to float the economy, and our political and bureaucratic sector is exacerbating the problem by making it difficult for what's there of the private market to operate freely. At least in the forseeable future, Its hard to see Nepal operating without aid. And, its hard to sustain forever on aid. K garne?

Posted on: 30 NOV 2009 | 5:02 PM NST

4. webguy
Begging money never works, Shut down all ngo/ingo immediately; start to punish corrupted bureaucrat or business houses. All youths must go for development work after their schooling. Award the people who create jobs in society. Then invite the international business houses for investment by policy and provide the security for business houses.

Posted on: 30 NOV 2009 | 7:42 PM NST

5. Manohara Khadka
Thank you for starting a debate on the politics of aid. I however would like to draw an attention to our understanding of 'aid'. Why do we always conceive aid 'in terms of financial aspects' (i.e. economic growth in the country through foreign aid). What about knowledge, ideas and ideological aspect of aid! Why do we hesitate to look at the relationships of aid from a broader perspective of poverty, people, development and bureaucratic practices. Since Nepali government has a rare experience of doing development without foreign aid, debate on whether Nepal needs more aid or not does not give any sense unless we look at the issue of politics involved in the use of aid and its implications for socioeconomically disadvantaged groups in the country. The effective use of foreign aid relies on (a) the mentality of the Nepalese who are in decisionmaking positions in the government and non-government sector and their capacity to understand poverty (which is not only about the lack of money or resources; it is more about recognition of social relations and challenging unequal power relations between people or understanding difference between people) (b) the interests of policy makers and decision-makers at different layers to understand the politics of aid from socially just view (i.e. what is aid; for whose aid is ; are we doing thing what we are supposed to do; what is the implications of aid for the poor and other socially disadvantaged groups; do we have enough capacity and knowledge to mobilise aid for positive social outcomes; if not what blocks the change (c) the ability of people's representatives to negotiate with aid givers strategically (d) the ability of citizens and their representatives to review the impact of aid supported policy and programs on the livelihoods of those who deserve aid, and (e) inadequate capacity of Nepali government to influence the focus and direction of aid for social and economical outcomes. Thanks!

Posted on: 30 NOV 2009 | 8:20 PM NST

6. Sargam
The word that springs to my mind is an inadvertent insult, by the same token, an ironic twist which challenges the sovereignty of a nation like Nepal mired in inextricable confusion and existential survival. For the foreseeable future to think of any improvement in the political horizon of this country shall be simply like following a sort of donkey-logic, ie unable to decide between two alternatives, illustrating some of those too complex and eternal disputes not easy to pigeonhole into an intractable body of internationally convened rules and practices. As of now what are those magical ways, if there are any, in which a majority of Nepalese either better off and sedentary or nomadic and plebs could be harnessed together to right the wrongs so that they would at last free themselves from the financial dependency on international assistance as if Nepalese are the people who are doomed to live sponge off somebody, and to kowtowing to the invisible creditors a.k.a. donors who are always around you to remind you and yours, pointing a finger of blame at you indicating, ' you Nepalese you owe to the rest of the Universe your very existence?' One day, I wish I could boldly thump my chest in pride to have achieved something precious with my sole proficiency without anybody's help enabling me at the same time to lead an unfettered existence conversing with the blissful stars and untold varieties of beauty that this country is profusely endowed with.

Posted on: 30 NOV 2009 | 8:45 PM NST

7. MD
Yes, we can! (in the long run at least). Through good governance and the political stability that comes from such governance. Political stability, good internal security and public- private partnership in infrastructure can create a climate conducive for the expansion of private businesses and public services. Increased industrial output, increased jobs, increased access to education and healthcare - these are the things that can can create the kind of GDP growth needed to lift us out of poverty and reduce our dependency on foreign aid. As Dambisa Moyo puts it "trade, not aid" is our ticket out of poverty and donor dependency in the long haul. For the moment, it all boils down to political stability and the rule of law. In the absence of these, any spikes and spurts in investment can only have a limited impact on the long-term growth of the country. The towering condominium buildings cropping up around the valley are unlikely to provide sustainable growth but building roads, parking lots, public transportation, parks, drinking water, sewage and telecom facilities that need to go hand in hand with these just might.

Posted on: 30 NOV 2009 | 9:12 PM NST

8. Sea Monster
Glad you opened the gates...

Posted on: 30 NOV 2009 | 11:57 PM NST

9. jange
"Aid" is a market just like any other market such as the tourist market, hydropower market, working abroad market etc. Nepalis have been reasonably good at it and have managed to capture some of that market. However, there is a lot of scope for improvement.

Posted on: 01 DEC 2009 | 6:21 AM NST

10. Maaili
Aid is a dangerous weapon powerful states employ to keep control of weak and underdeveloped states like ours. IMF, World Bank, USAid and all other development organizations who shed money over Nepal have their own individual interests to fulfill. As long as money from them keeps pouring over Nepal, a string of commitments they want us to make over their donated money will keep coming. So sooner we get rid of it all, the better we'll be able to think on our own feet and implement what is best. Majority of when we'll get rid of it depends on how political actors in Nepal maintain overall stability and look towards creative a healthy economy.

Posted on: 01 DEC 2009 | 9:33 AM NST

11. Agya Poudyal
We can but only if we make proper use of the aid that we've already got.

Posted on: 01 DEC 2009 | 2:48 AM NST