- Poverty Reduction Strategy
- Millennium Development Goals
Country Information: Poverty Reduction Strategy / 10th Plan


Brief Introduction
The Government of Nepal (GoN) has identified poverty reduction as the priority objective for its Tenth Plan (See www.npc.gov.np). Poverty and social exclusion are regarded as root causes of the escalating political conflict in the country and the poverty ratio is to be reduced from 38% of the population to 30% by 2007, and to 10% by 2017. This coincides with the international commitment under the Millennium Development Goals to reduce by at least half the number of people living in extreme poverty by 2015.

The challenges required to meet these goals are considerable.  To address these GoN has defined under its Tenth Plan a poverty reduction strategy based on four pillars:

1) Broad Based Economic Growth: Promotion of faster and pro-poor economic growth;

2) Social Development (including Basic Services): Equitable access to social and economic infrastructure and resources for the poor and marginalized groups;

3) Social Inclusion and Targeted Programmes: Special programmes to ensure social inclusion and to target the needs of poor and socially excluded;

4) Good Governance: Various initiatives for improved governance.

To be successful, implementation of the strategy requires the long-term commitment of GoN and all development actors. Concerted efforts will be needed to promote socially inclusive development through local government, NGOs, communities and the private sector.  These initiatives will need to tie in with macro-level policies, broad development strategies and financial allocations from the centre and be effectively coordinated. Helvetas Nepal intends to support a coordinated effort among all development organizations for poverty reduction in Nepal.

Helvetas Nepal Contribution to the Poverty Reduction Strategy

PRSP Pillar 1:  Broad Based Economic Growth

Objectives and Strategies

Indicators (Activities, intermediate Indicators and  Outcomes)

Expected main contributions under <h> Country Programme

1 Agriculture

1.1  Increase agricultural production productivity and income for food security and poverty reduction

1.1.1 Expand the use of available modern technology

·    Enhanced farmer’s group based technology dissemination system and capability enhancement of staff and farmers groups (need based location specific technology).

·    Increased number of effective farmers groups

·    Enhance balanced use of agro-chemicals (increase number of IPM and other farmer’s field schools).

·    Promote research, development and extension for food security in severely food deficit districts (e.g. More diversified production system and enhanced commercialization)

·    About 3500 farmer groups served (LLINK, LISP,  CoPP, SSMP) per year

·    Integrated Crop and Plant Nutrient Management through more than 100 Farmer Field Schools per year (SSMP, CoPP, LLINK with DoA)

·    Achham, Dailekh, Doti, Jajarkot, Dachula, Baitadi by LLINK and SSMP

1.1.2 Increase farmers access to modern agricultural input and credit

·      Enhance market based environment for increasing fertilizer supply and uses.

·      Enhance rural banking activities (ADBN/ RBs) for effective credit delivery (continued).

·      Strengthen regional research farms stations and private sectors resources for ensured quality seeds/breeds/planting materials production and supply to the local multipliers/nurseries.

·      As part of Integrated Plant Nutrient Management (SSMP with DoA)

·      Linkage with regional research farms in Doti, Dailekh, Kailali, Kaski and Dhankuta (LLINK, SSMP)

 

1.1.3 Promote diversification and commercialization in crops/livestock production system

·      Implement intensive agriculture program in year round irrigated areas (e.g. reduced food insecurity, contribution to income increase).

·      Increased number and coverage of intensive pockets in year round irrigated areas.

·      Provide incentive and appropriate support package for expansion of ground water irrigation and on farm water management (improved efficiency of on farm water uses).

·      Intensify production and increase areas /coverage of high value crops / livestock commodities in potentials pockets (continued).

·      Micro-irrigation (drip, sprinkler, water harvesting ponds, ….) supported in combination with cash crop production (e.g. vegetable)

·      Support to vegetable, citrus, coffee, ginger as main commodities in pocket areas

 

1.1.4 Include NGOs / private sector involvement in partnership and contract in agricultural service delivery system

·      Ensure and increase involvement of private sector / NGOs / CBOs and local bodies sector in extension service delivery

·      More than 100 NGO / CBO are annually participating in activities (LLINK, LISP, SSMP, CoPP)

·      Linkage of NGO / CBO with line agencies at district level through quarterly review and planning

·      Local extension fund for farmer-to-farmer diffusion reaching more than 15000 HH per year

1.1.5 Improve effectiveness of Panning, Monitoring and Evaluation

·      Enhance PME capabilities at all levels (e.g. improved database and regularized reporting and review system in place at all levels).

·      Enhanced through CPPME in at least 5 focal districts in collaboration with DDC and MoLD

1.1.6 Decentralize research and extension

·      Devolve DOA/DLS extension activities to local bodies and ensure operational effectiveness and technical backstopping to them ( decentralized extensions are fully functional by 2004).

·      Decentralize NARC’s adaptive and on farms research activities to RARCS.

·      Support decentralized extension in focal districts (in collaboration with APPSP)

·      Capacitate local NGOs and CBOs as local extension organizations

 

 

1.2 Develop local and export market opportunities

1.2.1 Encourage private and cooperative sectors involvement for market promotion and infrastructure development

·      Co-ordinate the expansion of agricultural roads and rural electrification.

·      Commodity policies developed for major commodities by 2004.

·      Emphasize on marketing research, flow of market information and development of market infrastructure (Agro industry, collection center, and whole-sale and retail outlets).

·      Increased number of market infrastructures and continuity in market research and information flow.

·      Feeder and district road development (support to RAP)

·      District road 80km in Terhathum

·      Capillary roads in Palpa

·      Collection centre development (Terhathum, Palpa, Dailekh, Doti)

·      Commodity specific support to ginger and coffee at national level

 

1.2.2 Promote cooperative and contractual farming

·      Regulate/facilitate agro processing and standardization.

·      Legal arrangements for cooperative and contractual farming in place by 2004.

·      Cases of cooperative and contractual farming in place after 2004.

·      Support to coffee and ginger at national level

 

 

2 Irrigation

2.1. Promote year round irrigation in the irrigable land

2.1.1 Strengthen public and community
based irrigation system

 

·     Enhance maintenance and rehabilitation of existing farmer managed and public irrigation systems (Increased and strengthened water users’ committees (WUAS) in place).

·     Year round irrigation increased to 50% of the irrigated land by 2005.

·      Rehabilitation of at least 15 small irrigation systems per year in hill areas (LILI)

 

2.1.2 Expand new irrigation facilities with focus on APP

 

·     Develop and implement small surface irrigation facilities in the hill and surface and ground water irrigation facilities in the Terai.

·     Increased number and hectarage of new schemes developed and managed by NGO’s and private sector.

·     Private sector and NGO participation in irrigation management increased.

·      Complementary irrigation systems for bari land (LILI, LLINK)

 

2.1.3 Establish coordination in intensive agriculture program formulation and implementation in year round irrigated areas at all level

·     Scale up On Farm Water Management Program

·     Environmental and occupational health care and sanitation facilities provided with inter-sectoral collaboration.

·      Integrated Water Resource Management to be developed and tested in collaboration with other actors (WARM, LILI, SSMP, LLINK)

·      Preparation of at least 15 Water Use Master Plans per year and integration into policy (WARM, RVWRMP)

3 Trade

3.1 Increase the contribution of trade in the economy

3.1.1 Trade policy to be made compatible with regional/international agreements

3.1.2 Enhance competitiveness

3.1.3 Involve private sector for export promotion

Not a priority area for <h>

4 Labor

4.1 Increase employment to reduce poverty

4.1.1 Make employment intensive growth objectives

·      Reorient public expenditure to make it more employment intensive

·      Incentives and policies improvement for private sector to generate employment growth

·      F-SKILL tests a new approach to link the employment sector with the training sector. The modality is open for expansion as it is based on a franchising modality.

4.1.2 Reform vocational training program to link with employment policy objectives and labor demand

·      Streamline present training programs based on market and demand for such training identified by CBOs at district level (Efficiency of labor enhanced).

·      Consultative process strengthened and cooperation initiated and institutionalized with the private sector in making the training programme more demand driven and effective

·      F-SKILL contributes through employment-oriented training with business like implementation modality and impact financing.

·      Close linkage with Skill Testing Division of CTEVT for developing national standards for market oriented skill training.

4.1.3 Make labor laws flexible

Not a priority area for <h>

4.1.4 Enhance foreign employment

·       Agreements with labor importing countries increased/strengthened (number of laborers employed oversees increases).

·       Skill development program encouraged for oversea migrants workers.

·      F-SKILL explores employment opportunities and skill requirements for overseas employment.

4.2 Ensure congenial environment for better industrial relation.

4.2 1 Promote industrial relationship for increasing the labor productivity

Not a priority area for <h>

4.3 Protect children from exploitation

4.3 1 Eliminate child labor

Not a priority area for <h>

5 Roads

5.1 Develop & manage road transport network in cost effective way to support socio economic development effort

5.1.1 Expansion of road network to link the districts without road

·       10 additional District headquarters connected by road (by FY 07).

·       Road access increased to 70 District Headquarters.

·      Indirect contribution through RAP in 9 districts

 

5.1.2 Encourage private sector participation

·       Act developed for BOT projects (Road length increased by 1025 km).

·      Indirect contribution through RAP

 

5.1.3 Maintain the road network in serviceable condition

·        Rural roads responsibilities transferred to DDCs.

·      Indirect contribution through RAP

 

5.1.4 Maintain the road network in serviceable condition

·        Road Board operational

·        Framework planned for road maintenance system (90% of SRN in good/fair condition).

·        Management efficiency improved in planning, procurement and implementation

·      Indirect contribution through RAP

 

6 Power sector

6.1 Expand electricity coverage in a reliable, financially and environmentally sustainable manner.

6.1.1 Promote private sector participation in power sector

6.1.2 Improve financial viability of NEA

6.1.3 Integrate rural electrification with rural economic development

6.1.4 Promote cooperative based grid-based rural electrification

6.1.5 Expand and reinforce power infrastructure

Not a priority area for <h>

Indirect contribution through RVWRMP for micro-hydro power

7 Information and communication

7.1 Improve access of information and communication

7.1.1 Private sector participation

7.1.2 Clarity on role and responsibility of public and private operators

7.1.3 Functional autonomy

Not a priority area for <h>

8 Tourism, Infrastructure, Services and Promotion

8.1 Expand tourism activities

8.1 1 Tourism promotion/marketing and product development

8.1.2 Infrastructure development

8.1.3 Tourism facilitation

Not a priority area for <h>

Local support for tourism development in Palpa (LISP)

9 Industry

9.1 Expand industrialization

9.1.1 Strengthened market oriented policies

Not a priority area for <h>

9.1.2 Strengthening SMEs

·       Incentive and programs for technological improvement and upgrading SMEs

·       Institutional mechanism/acts subcontracting to SMEs

·       Entrepreneurship training, skill development

·      F-SKILL targets employment in the small and medium enterprise sector which will benefit from the enhanced work force.

·      Additionally, it will explore under its SKILL-plus approach modalities to strengthen employment and self-employment in the micro-enterprise sector.

·      Elam supports about 50 new micro-enterprises per year

9.1.2 Improved industrial environment

Not a priority area for <h>

10 Supply

10.1 Improve the supply and distribution of essential commodities

10.1.1 Strengthen food supplies in remote areas

10.1.2 Market based petroleum prize

Not a priority area for <h>

Pillar 2: Social Development (including human development)

Objectives and Strategies

Indicators (Activities, Intermediate Indicators and  Outcomes)

Contributions under <h> Country Programme

11 Education

11.1 Improve quality of and access to education especially primary education

11.1.1 Decentralization of school management to communities/local bodies and change in role of district and central level agencies from implementation to facilitation, monitoring and evaluation

11.1.2 Improve and expand teachers training program

11.1.3 Strengthen school monitoring and supervision system

Not a priority area for <h>

11.2 Delivery of literacy programs with livelihood improvement

11.2.1 Integration of literacy programs with CBO-based income generation activities facilitated by local bodies.

·      Expand literacy campaign by increased involvement of CBOs/NGOs/local bodies

·      Adult literacy rate (+15) increased from 49 to 63%.

·      Female adult literacy rate (+15) increased from 34 to 55%.

·      Expand Community Learning Centers

·      Literacy classes supported as part of other projects (RAP, , LLINK)

 

11.3 Improve access of girls, Dalits and disadvantaged children to education

11.3.1 Mitigate social, cultural and financial barriers for access to education

11.3.2 Social contracts for access improvement

Not a priority area for <h>

11.4 Meet national demand for basic and middle level Technical human resources

11.4.1 Vocational courses attached to existing secondary school

·      Initiate and strengthen the program in 25 schools as an annex program, to start from 2004. (Short an medium term technical training to more than 30 000 people)

·      Increase share of semi-skilled and skilled labor in the labor force.

·      Not a priority area for <h>

·      Vocational training to about 1300 persons (SKILL, F-SKILL) but not as annex programme

 

11.4.2 Promote private provision of basic and middle level technical training

·      Introduction of voucher system targeted to poor for basic and middle level technical training, to start from 2004.

·       

 

12 Health

12.1 Increase essential heath care services to all with special emphasis to rural/remote/poor population

12.1.1 Development and retention of trained staff especially in rural areas

12.1.2 Training and upgrading of health personnel

12.1.3 Increased supply of essential drugs, vaccines

12.1.4 Expand accessibility/facilities (TB, malaria, leprosy, HIV/AIDS prevention and treatment)

12.1.5 Up-gradation of primary health centers and hospitals

12.1.6 Decentralized operation and management

12.1.7 Promotion and coordination with NGO/INGOs and private Sectors

12.1.8 Improved regulatory mechanism (improved collaboration)

Not a priority area for <h>

Targeted support to Uterus Prolapse awareness, prevention and treatment (LLINK)

HIV/AIDS awareness and traininig on prevention integrated into most programmes

13 Drinking Water and Sanitation

13.1 Increased/improved access to sustainable basic drinking water services in rural areas

13.1.1 Scale up the demand driven and participatory approach to rural water supply and sanitation schemes. This approach involves NGOs, CBOs, local private sector to assist communities to plan, design and implement and operate and maintain their own schemes

·      Revise the 1998 rural sub-sector policy to include clear roles & responsibilities of sector actors by 2003 (consistent sector policy in place and implemented)

·      Reform / consolidate the institutional mechanisms and approaches to service delivery to facilitate implementation by 2003 (community driven approaches adopted to sustainable water systems).

·      About 3.8 million people have access to safe and sustainable drinking water services.

·      Strengthen autonomy of the RWSS Fund Development Board through Act by 2003

·      Rehabilitate rural water supply schemes for community management

·      Sector monitoring system established, the sector monitored effectively and regularly and budget allocations to sector agencies are performance based

·      Reduced water borne and water washed diseases

·      District develop /update district water development plans regular to improve planning staring 2003 and continuous (about 150 schemes rehabilitated an community managed)

·     About 150 schemes rehabilitated and community managed.

·      More than 15000 people get access to drinking water in rural areas every year (WARM)

·      More than 50 schemes per year constructed and handed over to community management including OM-fund

·      Sanitation and health promotion part of the drinking water construction

 

13.2 Improve and expand basic sanitation facilities in rural and urban areas

13.2.1 Promote sanitation as an integral part of water supply projects through public education and awareness campaigns by mobilizing NGOs, CBOs, local bodies and the private sector

·      Every new water supply scheme should include sanitation as a component of the project and provide for promotional activities (about 4,50 000 households build and use latrines in rural areas)

·      Promote sanitation activities in areas that already have water supply services but no sanitation facilities

·      All drinking new water schemes include sanitation (WARM, RVWRMP)

 

 

13.3 Improved access to and up-gradation of basic drinking water services in urban and semi-urban areas through involvement of private sector and / or local bodies

13.3.1 Create a conducive environment for private sector participation & local bodies involvement in urban and semi-urban water supply services by legislative reforms, cost recovery policy & a national water quality standards/guideline

·       Implement cost recovery policies starting 2003

·       Develop national water quality standard / guidelines and strengthen water quality monitoring by 2004.

·       Frame legislation, establish and make operational a regulatory body by 2003

·      Drinking water systems in Municipality areas with cost contribution in construction

·      All schemes collect operation and maintenance fund

 

13.3.2 Increase supply in the valley by reducing unaccounted for water

Not a priority area for <h>

Pillar 3: Targeted Programs for Social Inclusion

Objectives and Strategies

Indicators (Activities, Intermediate Indicators and  Outcomes)

Contributions under <h> Country Programme

14 Targeted programs

14.1 Bring poor/socially excluded / disadvantaged groups out of poverty trap

14.1.1 Reorient sectoral programs to focus on targeted groups/areas

·      Initiate the system of expanding / developing sectoral activities based on poverty mapping

·      Budget allocation for deprived communities/areas increased.

·       HDI index of Far-western and Mid-western increase by 8 % per annum.

·      Literacy rate of dalits and indigenous people increases significantly

·      Framework for addressing the problem of deprived communities / regions developed and implemented.

·      Development, testing and implementation of CPPME in focal districts with DDC, line agencies and MoLD

·      Work with DDC and VDC for budget allocation for deprived

·      Focal programme in Mid and Far West by various <h> projects and district window programmes in 5 districts

14.1.2 Make local bodies more responsible for designing and implementing local poverty programs

·      Use decentralized mechanism for implementation (DIDO and service delivery agencies transferred to local level).

·      Increase grant to local bodies on the basis of poverty index

·      Allocation to district with low HDI increased.

·      Collaboration with local agencies under DDC for capacity building and local coordination (TBSSP, RVWRMP, SSMP, …)

 

14.1.3 Supplement the targeted programs of local bodies and the government with the participation of NGOs/CBOs

·      Train local bodies and make them accountable for the poverty reduction program at the local level

·      Strengthen social mobilization

·      Use PAF to supplement targeted programs, to be carried out mainly by NGO/CBOs (FY 2004 onwards)

·      Social mobilization a key element of most <h> projects, in particular LISP, LLINK

 

14.1.4 Reorient and coordinate NGO/INGOs activities towards targeted groups

·      Encourage coordination and develop partnership with NGO/CBOs and the private sector (Mapping of INGOs activities done and INGOs encouraged to work for deprived areas / communities)

·      District level coordination bodies among INGOs and DDC supported in focal districts

 

14.1.5 Initiate and implement effective mechanism for poverty monitoring

·       Design special mechanism to monitor outcome and input indicators for targeted group (Poverty monitoring disaggregated by gender / social groups/regions)

·       Initiate and support, strengthen and assess district level poverty monitoring mechanism

·      Poverty and social inclusion monitoring to be developed with DDC in focal district

·      Partners and projects of <h> use poverty and social inclusion monitoring

14.1.6 Encourage philanthropic organization in expanding poverty reduction strategy

·      Enhance public awareness campaign for voluntary work, welfare activities and poverty reduction programs to be generated by philanthropic organizations and private sector (More resources mobilized by local NGOs locally)

 

14.1.7 Special programs from Far-west and Mid-west regions’ poor districts

·      Assistance for overseas employment.

·      Micro credit /micro-enterprises training/education etc. strengthened.

·      F-SKILL with office cell in Dhangadi to explore linkages with franchisees for training and employment in Mid and Far West

14.2  Mainstreaming gender in development activities

14.2.1 Women empowered by removing the social, legal, economic and other constraints

·      Production loan and social mobilization (proportion of women in socio-economic political activities and public positions improved).

·      Special health care system to women to reduce maternal mortality.

·      Action Plan for gender mainstreaming developed and implemented (FY onwards).

·      Special monitoring system for improving gender equality (2004)

·      About 50% of participants in most <h> projects are women

·      Uterus prolapse campaign at national level and concrete support to women in Mid and Far West in 6 districts (LLINK)

 

14.3 Mainstreaming the deprived communities

14.3.1 By removing social legal and economic constraints

14.3.2 Empower-ment

·      Credit facility and social mobilization

·      Incentives to increased proportion of deprived children in education

·      Special emphasis in skill training, income generation activities and special scholarship program for higher education

·      Legal and other constraints removed

·      VDC and DDC to focus on the mainstreaming of deprived communities. (Proportion of socially excluded people increased in socio-economic and political activities).

·      Special infrastructure, income generating and human development activities for deprived communities and areas

·      Special monitoring system in improving the status of derived community

·      Focus on deprived communities in skill training (F-SKILL)

·      Access to credit facilities improved for socially disadvantaged micro-enterprises (Elam)

·      Support to local advocacy organizations to contribute to local decision taking (dalit, janjati organizations)

 

Pillar 4: Good Governance

Objectives and Strategies

Indicators (Activities, Intermediate Indicators and  Outcomes)

Contributions under <h> Country Programme

15 Civil service reform

15.1 Civil service (including Judiciary) made competitive accountable and service oriented

15.1.1 Improvement in recruitment and promotion system

15.1.2 Reduce political interference in civil service function

15.1.3 Strengthening personnel information system and human resource management

15.1.4 Proportion of women, ethnic and disadvantaged group in civil service increased

Not a priority area for <h>

16 Anticorruption

16.1 Ensure efficiency of resources use and improve service delivery

16.1.1 Preventive action for anti-corruption strengthened and implemented

16.1.2 Action against corruption strengthened

16.1.3 Judicial system strengthened

Not a priority area for <h>

Public audit and public hearings implemented with partners and communities

17 Decentralization

17.1 Enhancing development process with the participation and empowerment of people at large in the governance

17.1.1 Devolve service delivery functions to local bodies

·      DIDO transfers to local bodies

·      Education, health, postal service transfer to local bodies

·      Agriculture and small irrigation services transfer to local bodies

·      Rural roads transfer to local bodies (Local road tolls handed over to Road User Groups in 20 districts for maintenance of roads).

·      Transparency and accountability improved

·      Support local infrastructure works (TBSSP, LILI)

·      Support decentralization of extension (SSMP, LLINK)

·      Support local road maintenance (RAP, LISP, )

·      Public audit in all rural infrastructure projects

 

17.1.2 Capacity building

·      Enhance planning, management and evaluation capacities of local bodies (District profile of 20 districts for DPP completed in the first year. Electronic MIS operational in 25 districts)

·      Train and equip local bodies offices (District Period Plans DPP all district brought out).

·      Support to district periodic plans where and as needed in focal districts

 

17.1.3 Fiscal decentralization

·      Central grants allocated to local bodies on poverty based formula begins

·      Fiscal management, auditing accounting system (Public Audit of development projects practiced)

·      Fiscal framework introduced in pilot basis

·      Preparation of citizen’s charter (15 districts, 2003)

 

18  Human rights

18.1 Promotion of human fights for the dignity of people

18.1.1 Acts and laws made compatible with international conventions

·      Formulate and amend major Acts and regulations (Number of human rights violation investigation cases increased)

 

18.1.2 Institutional strengthening

·      Strengthen Human Rights Commission, women commission and Dalit commission (Reduction of discrimination, violation and exploitation cases)

·      Establish and strengthen human rights cells in major government agencies (Empowerment of people to exercise their rights)

·      Support to Human Rights organizations in civil society at national and local level

 

19 Integrated Security development program

19.1 Enhance security and expand development activities

19.1.1 Enhance the security umbrella and the sense of security and peace to continue and expand development activities and service delivery

Not a priority area for <h>

19.2 Rehabilitation of victims of violence

19.2.1 Rehabilitation of the victims of violence

Not a priority area for <h>

Note: Only a selected number of indicators are included with a preference for those where relevant for the Helvetas Country Programme

Source: The Tenth Plan (Poverty Reduction Strategy Paper) 2002-2007 (July 2003): Summary. NPC, Katmandu.


 
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