Sustainable Development Agenda For Nepal

7.3 Expectations from the International Community 31 Message Our twin development challenges today are velopment of different sectors that HMG has to lift the majority of our men and women articulated in greater detail elsewhere. I note out from abject conditions of absolute pov- that SDAN brings together all facets of de- erty, and to ensure secure, peaceful lives of velopment relevant to our distinguishing cir- honor and dignity for all people of Nepal. A cumstances. The mutually re-enforcing goals path that addresses these prime goals with- are aptly buttressed by a comprehensive defi- out adversely affecting the environment and nition of sustainable development in the con- prospects of future Nepali generations to text of Nepal, spanning issues from equitable improve the quality of their livelihoods re- growth to environmental conservation to mains our consensual approach to sustain- security of Nepal's citizens. able development. This Agenda is somewhat ambitious by de- This Sustainable Development Agenda for sign. It is inspired by the assumption that Nepal (SDAN) is an attempt to spell out what Nepal has the ability and will to achieve such a path may look like. It is a national much more than what can be inferred by sim- document prepared by His Majesty's Govern- ply projecting to the future trends of the im- ment following a series of consultations with mediate past. I state with confidence that our national and international development there exists a resolve on the part of the HMG partners. As a broad Agenda, SDAN is envis- to steer the country towards peace and pros- aged to be a process in motion that comple- perity by translating appropriate policies into ments and guides all sectoral and periodic effective results. But this challenge is to be plans of the government. This Agenda also faced jointly with active engagement of all meets in advance part of the government's our citizens - women and men, civic asso- commitment to fulfill one of our Millennium ciations that they are part of, the private sec- Development Goals of having a national tor, all our state entities, and the interna- agenda and strategy on sustainable devel- tional community. I thus humbly urge all of opment in place by 2005. I thus expect it to you to join us and be part of this noble pur- remain relevant and to be implemented over suit of making our great nation better. the next fifteen years. The broad goals and thematic assessments, as well as the sum- mary of policies contained herein are con- sistent with the projected trajectory in de- Surya Bahadur Thapa Prime Minister and Chairperson, National Planning Commission v Foreword The National Planning Commission, together This document describes the pathways to with the Ministry of Population and Envi- achieving the goals and mentions how it re- ronment is pleased to bring out His Majestys mains relevant over a fifteen-year time, dur- Governments (HMG/N) Sustainable Develop- ing which new knowledge, needs and infor- ment Agenda for Nepal (SDAN). Its prepara- mation may arise. However, it is not a blue- tion was triggered by our national prepara- print of technical details or specific develop- tions for the 2002 World Summit on Sus- ment strategies. The original purpose and tainable Development (WSSD) in scope of the exercise was to produce a crisp Johannesburg, South Africa, but in many and succinct vision document that lays in ways, it is also a continuation of Nepals clear, understandable terms what the national and global commitments to the ob- countrys status and priorities are in the field jectives of the landmark, United Nations Con- of sustainable development, and where it ference on Environment and Development, could head to improve them. But it would held in Rio in 1992. It is a reaffirmation of refrain from prescriptive details, which fall His Majestys Governments pledge to imple- under the purview of the governments dif- ment Agenda 21, a blueprint for sustainable ferent plans produced at various time inter- development in the 21st century, which was vals by respective entities of the state with reinforced during the WSSD as well. specific sectoral mandates. SDAN was prepared in a consultative man- HMG has committed to translating the ethos ner with the participation of a wide range of and the letters contained herein by not only stakeholders. As a guiding document, it is mainstreaming planning, monitoring and fairly simple, but it is also robust and ambi- evaluation process but internalizing sustain- tious in its goals, re-enforcing attainable able development approach in all plans and national aspirations in a coherent framework programmes funded through its resources. It of priorities that principally set out to se- also encourages a similar approach by the cure higher incomes, create good institutions, private sector and civil society at the central establish peace, nurture the nations health and increasingly the local level. I am confi- and education, and of course preserve its dent that this document that has gone through environmental integrity. In all these respects, several tiers and fora of civic and official scru- SDAN aims to guide national level develop- tiny reflects adequate national consensus to ment plans and policies up to 2017, and is inspire confidence, and generate ownership, consistent with the governments more de- both in its sweep of substantive coverage, and tailed plans of action such as the Poverty its agenda of reform and transformation to Reduction Strategy Paper and the Tenth Plan, ensure environmental, social and economic as well as long-term development strategies sustainability in the nation. at the sectoral level. It is also compatible with the objectives of attaining the Millen- nium Development Goals. Dr. Shankar Prasad Sharma vi Vice Chairman National Planning Commission Acknowledgement The Sustainable Development Agenda for Khadka, and Prithibi Raj Ligal, former Vice Nepal (SDAN) is prepared by HMG's National Chairmen of NPC; Jagadish Chandra Pokharel Planning Commission (NPC) in close collabo- and Minendra Prasad Rijal, former Members ration with the Ministry of Population and of the NPC; Hari Shankar Tripathi and Environment (MOPE). HMG is grateful to the Prakash Sharan Mahat, former Members of United Nations Development Program the NPC and Chairmen of the Steering Com- (UNDP) and the World Wildlife Fund (WWF) mittee at different periods; Janak Raj Joshi, for supporting this initiative. SDAN was Joint Secretary of MoPE; Gyan Prasad launched in parallel with the national strat- Sharma, Under Secretary and National egies for sustainable development dialogue Programme Director for Sustainable Commu- process, which was assisted by the Organi- nity Development Program (SCDP); Chandra zation for Economic Cooperation and Devel- Prasad Gurung, Country Representative of opment (OECD) and the World Conservation the World Wildlife Fund; Bhesh Raj Dhamala, Union (IUCN). HMG is grateful to them, as former Assistant Resident Representative, well as for the support received from UNDP's and Kristiina Mikkola, Environmental Gov- Capacity 21 Program, the Earth Council, and ernance Advisor, of UNDP; Champak Pokhrel, the British Embassy. Team Leader, and his colleagues for the preparation of the Tenth Plan in NPC. HMG For its substantive work on this Agenda, also appreciates the contributions of Shankar HMG is very grateful to the task force on Sharma, Vice Chairman, Yuba Raj SDAN, led by Minendra Prasad Rijal. The task Khatiwada, Member, and Bhoj Raj Ghimire, force consisted of Harka Gurung, former Vice Member Secretary, of the NPC for bringing Chairman of the NPC as Advisor, as well as SDAN into its current form. members P uskar Bajracharya, Govinda Koirala, Bikash Pandey, Bhojraj Pokharel, Grateful acknowledgements are also ex- Pitamber Sharma, Uday Raj Sharma, and Ava tended to members of SDAN Steering and Darshan Shrestha. Drawing on the inputs of Technical Committees, all stakeholders and the task force, Arnico Panday and Swarnim participants of workshops at district, regional Waglé contributed in drafting and synthe- and national levels, and the Nepal Forum of sizing this document. Environmental Journalists. Finally, HMG most gratefully acknowledges the SCDP For supporting in various capacities the pro- (funded by HMG and UNDP), especially its cess of launching the SDAN, generous National Programme Manager, Hum Bahadur acknowledgements are due to the Steering Gurung, and his colleagues, for their invalu- Committee, which guided the task force. able role in facilitating the preparation of this Acknowledgements are also due to Narayan Agenda. vii Acronyms APP Agricultural Perspective Plan BOT Built Operate Transfer FM Frequency Modulator GDP Gross Domestic Product GHG Green House Gas GLOF Glacier Lake Outburst Floods HIV/AIDS Human Immune Virus/Acquired Immune Deficiency Syndrome HMG His Majestys Government of Nepal ICT Information and Communication Technology ILO International Labour Organisation IUCN The World Conservation Union LDC Least Developed Countries MDG Millennium Development Goal MOPE Ministry of Population and Environment NCSD National Commission on Sustainable Development NGO Non-government Organisation NPC National Planning Commission NTFP Non-Timber Forest Products OECD Organisation for Economic Cooperation and Development PAF Poverty Alleviation Fund RNAC Royal Nepal Airlines Corporation SAARC South Asian Association for Regional Cooperation SAPTA SAARC Preferential Trading Arrangement SCDP Sustainable Community Development Programme SDAN Sustainable Development Agenda for Nepal SLC School Leaving Certificate TU Tribhuvan University UNDP United Nations Development Programme UN United Nations VAT Value Added Tax VDC Village Development Committee WSSD World Summit on Sustainable Development WTO World Trade Organisation WWF World Wildlife Fund viii 1 Introduction and Overview Nepals Sustainable Development Agenda aims to guide and influence national-level planning and policies up to 2017. The agenda presented draws upon and is in conformity with the longer term goals envisaged in the Ninth Plan (1997-2002), the Tenth Plan (2002-2007), the Poverty Re- duction Strategy Paper, the Millennium Development Goals, and commitments made by the country in various interna- tional forums. Accepting and building upon Nepal's status as a largely mountainous country beset by poverty but holding tremendous future potentials, this document goes beyond setting goals that appear within reach by simply projecting forward the trends of the recent past. It states broad goals that describe where HMG hopes to take Nepal by 2017. Reach- ing these goals is challenging but plausible. This document begins by describing the pathways forward to achieving the goals, detailed objectives, followed by neces- sary government policies. Due to cross-cutting linkages, the discussion is grouped into broad topic themes (income; health; education; institutions and infrastructure; forest, ecosystems and biodiversity; and security). Many of these objectives are to be fulfilled through policies in multiple sectors, while poli- cies in individual sectors will contribute to achieving mul- tiple objectives. Finally, the document describes how it can Introduction and Overview remain relevant over a fifteen-year time scale during which new knowledge, needs, and information will arise. Sustainable Development Agenda for Nepal 1 2 Defining Sustainable Development for Nepal The over-arching goal of sustainable development in Nepal is to expedite a process that reduces poverty and provides to its citizens and successive genera- tions not just the basic means of livelihood, but also the broadest of opportunities in the social, economic, political, cultural, and ecological aspects of their lives. This begins with the pursuit of increased per capita income afforded by a stable population size that gen- erates a viable and environmentally sound domestic resource base to create and nurture institutions of the state, markets, and civil society, whose services can be accessed equitably by all Nepalis. Basic devel- opment processes are to be overseen by accountable units of government with representation of women and men of all ethnicity and socio-economic status, whose management of resources, including the en- vironment, is to be governed by an imperative that the ability of future Nepali generations to sustain or Defining Sustainable Development for Nepal improve upon their quality of life and livelihoods is kept intact. A corollary inherent in viewing sustainable develop- ment in Nepal in these broad terms is a national resolve to pursue happy, healthy, and secure lives as citizens who lead a life of honor and dignity in a tolerant, just and democratic nation. 2 Sustainable Development Agenda for Nepal 3 Opportunities and Constraints A fifteen-year sustainable development agenda of Nepal must draw upon the country's current and potential strengths as well as take into account its vulnerabilities. Nepal's strengths include its attractive marketable landscape and its unique biodiversity, its large hydropower potential, its fertile Terai lands, good agro climates in the hills, large mar- ket prospect in neighboring countries as well as its diverse people and their cultural heritage. Nepal is also already working to build a fifth strength: an educated, skilled workforce. Nepal's development path will be constrained by weaknesses including its landlockedness, its rugged and isolating topography, weak technical know-how and limited financial resource base. In addition, Nepal will continue to be vulnerable to losses and damage from climate change, natural disaster and environmental degradation. To earn the income necessary for sustainable national de- velopment, Nepal must provide to the world market prod- ucts and services for which it has a comparative advantage. It has a biologically and culturally rich landscape whose marketing for tourism can be greatly increased, that can support rural livelihoods and provide a large variety of forest Opportunities and Constraints products, and that can also provide attractive settings for international educational and health care institutions. It also has the potential to produce premium and high value agricultural products as well as medicines from indigenous herbs and genetic resources. It has the potential to meet its entire energy needs through clean hydropower; this will especially contribute to the upliftment of women from drudg- ery. By attracting foreign investment, opportunity also ex- ists for large export to neighboring countries. The country's Sustainable Development Agenda for Nepal 3 cultural richness is also a source of indigenous Today, a nascent democracy in Nepal, which strength to the nation offering diversity of has had to mediate competing interests and ideas, ways of thinking, and practices. By legacies long rooted in a patriarchal, multi-lin- adequately targeting investment in educa- gual, and multi-ethnic setting, finds itself faced tion, the country has the potential to build with difficult challenges, including random acts additional strength of a skilled workforce, of violence and terror. Nepal's future growth drawn from today's young demographic com- hinges upon the challenging task of bringing position (nearly 40% of Nepal's population is every political and social force into the national within the age range 0-14). mainstream adequately with meaningful po- litical participation through decentralization. Planning for sustainable development for Nepal also has to take into account the areas Nepal is also vulnerable to natural influences. Its where Nepal has disadvantages. For example, agricultural system is heavily dependent upon without a sea port, Nepal will unlikely be able the timing and quantity of monsoon rains. Dur- to compete on the world market with ship- ing the dry season, drinking water, irrigation, ping-dependent heavy industry. Nepal's and hydropower depend upon melt-water from economy is heavily influenced by the glaciers. Climate change may affect the monsoon economy of two large neighboring countries. cycle, melt Himalayan glaciers, and threaten the The mountain landscapes that can be mar- survival of Nepal's biodiversity. Moreover, land keted to tourism also make infrastructure ex- slides, especially due to weak geological struc- pensive, and in addition, increase travel dis- ture of Siwaliks and floods downstream have tance and cost. The diversity of ecosystems resulted in loss of fertile soil from Terai. Regard- and micro-habitats inherent in a mountain- ing air pollution, Nepal is currently vulnerable ous landscape also makes resource manage- not just to domestic emissions (including indoor ment more challenging: rarely can a blanket air pollution from biofuel combustion) but also to national policy bring in desired effects na- growing trans-boundary air pollution from up- tionwide. wind urban and industrial areas. Opportunities and Constraints 4 Sustainable Development Agenda for Nepal 4 Broad Goals This section lists a set of the broad goals that Nepal aspires to achieve by pursuing sustainable development over the time frame of this agenda. The pathways to achieving these goals are described in the sections that follow. Successful implementation of the Sustainable Development Agenda of Nepal is defined to mean that: n Every citizen is able to lead a secure life freely and with dignity. n Every citizen and household has an income that not just covers expenses needed for reasonable healthy living, but also allows the accumulation of savings and the pur- suit of knowledge and leisurely activities. n Every girl and boy child attends school, every adult is literate. n Vocational training is accessible to anyone. n Every citizen is able to pursue higher education based on merit, irrespective of financial circumstances and social standing. n No home in the country is more than a few hours of travel away from basic medical facilities. n Every citizen has easy access to adequate amounts of clean water, nutritious food, and clean air. n Most of the nations energy is generated from domestic renewable sources, including hydro, solar, wind, as well as sustainably harvested and cleanly burned bio-fuel. The Broad Goals transport sector is increasingly powered by domestic re- newable energy sources, with continuing efforts to free it from fossil-fuel dependence. n Nepals hydropower potential is developed not just for domestic consumption but also to provide a steady source of export income. n Land use is planned and managed at the local and na- Sustainable Development Agenda for Nepal 5 tional level such that resource bases and climate change, is developed to closely in- ecosystems are improved, with form Nepals foreign and domestic policy complementarity between high- and low- on those as well as to help adequately pre- lands, that forest biomass grows, that agri- pare for adverse consequences. cultural and forest lands are protected from n Every Village Development Committee urban sprawl, and that biodiversity is con- (VDC) is linked to the rest of the country by served at the landscape level by recogniz- at least one modern form of transportation ing threats from habitat fragmentation and and communication. loss of forest cover. n Viable domestic industries meet at low cost n A system of protected areas (including the demand for products of daily house- national parks and conservation areas) is hold use as well as produce high-value, maintained and further developed to safe- low-weight products for export. guard the nations rich biodiversity. Local n Nepal is better integrated internationally communities near protected areas are in- and becomes an attractive place for for- volved in both the management and eco- eign investment. Its natural and cultural nomic benefit sharing of the area. heritage is protected and marketed to visi- n Every citizen has adequate availability of tors to generate maximum revenue. forest products to meet his or her basic n All citizens, from every culture, ethnicity need, and also has the opportunity to en- and religion have swift access to all forms joy aesthetic and spiritual experiences in of state services provided by each branch of nature. the state - the executive, the legislature, n The micro-climates of hills and mountains the judiciary, and all their sub-entities. are used to produce high-value agricultural Institutions of the state represent women products and sustainable production of and men of all ethnicity and social groups. non-timber forest products for domestic n The national development budget is fi- consumption and export. nanced largely through domestic resources. n Scientific research and domestic industry n Foreign aid is limited to specific sectors ensures that Nepal gets adequate benefit only, then gradually phased out, first from from the protection of the genetic diver- areas where Nepal can help itself. sity of its biological resources. n Domestic scientific expertise on global and Those goals are to shape the direction of regional environmental threats, including sectoral objectives and policies. Broad Goals 6 Sustainable Development Agenda for Nepal 5 Current Status and Future Agenda Finding ways to achieve broad goals requires an understand- ing of the current situations and reality, and formulation of clear objectives. This section discusses status and objec- tives under following broad topics: i) Income ii) Health, Population and Settlements iii) Forests, Ecosystems and Biodiversity iv) Education v) Institutions and Infrastructure vi) Peace and Security. These themes, rather than traditional sectors, are chosen to organize the discussion because they allow clearer linkages to the broad goals and presentation of crosscutting policies for sustainable development.

5.1 — Income

5.1 Income This theme embraces sectors that have a direct bearing on generating sustainable incomes for poverty reduction around which peoples livelihood and the nations resource viabil- ity and development activities will be anchored. The in- cluded sectors are: agriculture and forestry, industry and Current Status and Future Agenda services, hydropower and energy, remittance, trade and eco- nomic integration, and landscape marketing and tourism.

5.1.1 — Agriculture and Forestry

5.1.1 Agriculture and Forestry Although its share of the national product is around 40%, an overwhelming majority of Nepalis and over two thirds of economically active population, is dependent on agricul- ture. In the last 40 years, however, agricultural productivity in Nepal in major grains has gone from being the highest in South Asia to being the lowest. The current rate is less than half its potential. Rural farmlands are usually fragmented and labor productivity is low. Only around 25% of all culti- vated land is irrigated year around. Added to this the Sustainable Development Agenda for Nepal 7 unpredictability of the monsoons, annual production to ensure that Nepal can remain variation in production is wide. Around 50% as independent of imports as possible to meet of Nepals 75 districts record food grain defi- its domestic nutritional needs. In the more cit. The 20-year Agricultural Perspective Plan immediate run, the fertilizer policy will be (APP) launched in 1997 seeks to expand from directed at ensuring a consistent supply of subsistence farming into value-adding com- reliable, affordable, and high quality inputs mercial ventures with a focus on infrastruc- to small farmers. Trained female personnel ture, fertilizers, research and extension ser- will increasingly staff extension services. To vices, and irrigation. However, progress on the reflect local needs, devolution of agricultural APP to date has been less than satisfactory. extension services will be assigned to local bodies, with technical backup from national The most important objectives in the agricul- resource farms and stations. These resource tural sector are to, i) enhance food security, stations will ensure quality materials for local ii) spur annual growth of agricultural GDP to seeds, saplings, and breed multipliers. at least 5% to alleviate rural poverty at a faster rate, and iii) increase rural employment. At- Forest resources also play a major role in rural tempts to increase production will have to go peoples livelihoods, often serving as a major hand in hand with efforts to commercialize source of fuel, food, and fodder. HMGs Mas- agriculture, radically diversify the production ter Plan for the Forestry Sector (1989-2010) and processing of edibles, and increase the provides a long-term policy and planning marketable value of those products. framework, identifying major programs aimed at generating revenue to both the government The Agricultural Perspective Plan offers a and local communities. These specific pro- bedrock to build upon the successes and im- grams are in community and private forestry, prove implementation. Ensuring food secu- leasehold forestry, development of wood- rity in deficit districts will require better and based industries, aromatic plants and medici- affordable transport links from regions that nal plants, soil conservation and watershed produce or store grain. Primary focus will, management, and conservation of ecosystems however, remain on increasing total produc- and genetic resources. Implementation will tion and its value. Thus, increased irrigation be focused on these programmes. coverage that is cost-effective is a must. Nepal has performed much better in constructing 5.1.2 Industry and Services and sustaining small-scale irrigation schemes Industry and services together (non-agricul- that are managed by farmers in a participa- tural sector) account for nearly 60% of the tory manner. These grassroots successes will gross domestic product. Prior to 1990, Nepal Current Status and Future Agenda be replicated and widened. Similarly, Terai had created a largely state-owned network of has a large potential for ground water irriga- production that was heavily protected from tion at low cost. This potential needs to be foreign competition. Attempts to liberalize in utilized with priority. the early 1990s diversified the non-agricul- ture sector, particularly in services, propelling Long-term, research expenditures into horti- national growth rates in the sector to as high culture and high value crops is necessary for as 9% in 1991 and 1992. Construction, fi- the idea of geographical specialization of nance and domestic airlines have seen in- mass-produced crops to materialize. Pockets creased levels of activity. of specialized production will be connected by requisite infrastructure to convenient lo- Political instability and policy inconsistency cations for processing and export. Emphasis following the first wave of economic reforms, will be on international marketing. In the fer- effects of a porous border with India, high tile Terai lands, emphasis will remain on grain cost of capital borrowing, lack of infrastruc- 8 Sustainable Development Agenda for Nepal ture especially power, and a weak civil ser- about 4.4% of GDP, and the recent growth rate vice delivery have all inhibited a fuller growth is in double digits. Money flowing in through potential. In fact, the situation at present, informal channels is much higher. Remit- complicated by global economic slowdown and tance has thus become a significant source of domestic instability and uncertainty, is dire income that has penetration and coverage with GDP growth rate having plummeted to across the country. The tradition of remittance 0.6% in 2001/02. supporting an unproductive agrarian economy is long, going back over 150 years to the be- The pattern of industrial growth to be pro- ginnings of Gurkha recruitment. The purpose moted will be consistent with HMG policies and pattern of todays youth exodus, how- on clean energy and environmental safe- ever, is different. There are 200,000 officially guards. HMGs long-term objectives in this recorded Nepali workers in the Gulf and East sector are to orient industries towards lighter Asia; many times more work in India, but are areas in which Nepal may have a long-term unrecorded. Poverty, unemployment, and edge and where transport cost matters less. fears of terrorism have fuelled the outflow in Attention will also be paid to the production recent years. The exodus of rural citizens of trademark goods that are promoted by vir- sheds some pressure off agricultural land but tue of their origin in Nepal. also removes a large chunk of the agricultural labor force. Although remittance as a source In services, HMG will focus upon particular of income has recently grown, the areas that can generate sustainable streams sustainability of remittance as a source of of income while overcoming the hurdles of income is unpredictable, and the kind of jobs high transportation cost. Such sectors could that Nepalis are employed at are mostly un- be financial services, software, knowledge skilled, low paying, and hazardous and have based industries, and biotechnology, with the a direct bearing on the long-term sustainable first three requiring almost no physical trans- development goals that aspire to assure a life port of goods. of dignity and honor. Also, there has been a shortage of attractive investment opportuni- Industries and services will also need to ab- ties within Nepal, leading a large fraction of sorb a greater share of the labor force and remittance incomes to be inefficiently in- lighten the burden on the less productive ag- vested in real estate speculations. riculture sector. Need for better technical know-how and adequate financing also in- Recognizing the immense growth of remit- vites a special role for foreign direct invest- tance in the economy, HMG will seek to chan- ment over the next 15 years. nel remittance into productive investment Current Status and Future Agenda through the nations formal financial institu- HMG will urgently harmonize all fragmented tions. Monetary instruments such as selling policies having an impact on this sector from government bonds to finance infrastructure export promotion to revenue policies. Com- such as roads and hydropower projects will be mitments to further liberalization will have introduced on a wider scale with the goal of to be supported by greater supervisory and using foreign earned income to enhance do- regulatory roles on the part of HMG together mestic productive capacity. Upon accession with its obligation to provide public goods in to the World Trade Organization (WTO), the form of supporting infrastructure to des- Nepals multi-lateral negotiations will seek to ignated industries. secure reciprocity in the form of increased access to Nepali workers (mode four of ser-

5.1.3 — Remittance vice supply in the General Agreement on

5.1.3 Remittance Formal remittance from Nepali workers abroad Trade is about 240 million dollars a year, which is ments Sustainable Development Agenda for Nepal tual property or any of the emerging issues (of investment, competition policy, and gov- ernment procurement). Three basic policies will govern HMG actions in this arena: i) through economic diplomacy, new and better markets for Nepali sought whose outflow will be orderly and bet- ter managed, ii) what citizens earn abroad will be encouraged to get channeled into the coun- try through proper and formal banking chan- nels, so that part of that inflow can be used for investments that enhance long-term produc- tion capacities, and iii) skills and experiences gained by workers overseas will be channeled into the economy with appropriate policies. vice supply in the General Agreement on in Services) for any binding commit- it may undertake in services, intellec- 9 is the export of premium brand, value-added agricultural products. The traditional sectors of strength remain energy and tourism. HMG will learn from lessons of the past where Nepals primary earners of foreign exchange were fickle and unsustainable. labor will be Nepal will accede to the World Trade Organi- zation. By conforming to the rules and obli- gations under a multi-lateral trading frame- work, Nepal hopes to take advantage of global markets as well as offer a predictable policy regime of standardized regulations to attract foreign direct investment. HMG also seeks to be an active player in regional free trade blocs such as SAPTA. However, economic integra- tion requires a high level of institutional pre-

5.1.4 — Trade and Economic Integration paredness at home. HMG will thus pursue a

5.1.4 Trade and Economic Integration paredness at home. HMG will thus pursue a Completely isolated and least equipped with carefully managed process of opening up, with infrastructure until the country opened to gradual liberalization. Increasingly, state con- external contact in 1950, Nepal has made trol of means of production and exchange will substantial gains since. But, as its population also be liberalized. has also almost quadrupled during the pe- riod, many of the material gains have been 5.1.5 Landscape, Marketing and Tourism dissipated. Nepal today has one of the most Although tourist arrivals have recently de- liberal trading regimes in the region, and the clined due to domestic and international vio- extent of integration into the global economy lence, the attractiveness of Nepals landscape is steadily increasing, with the export and and heritage to foreign visitors remain un- import of goods and services constituting changed. The mountains and valleys that pro- about 40% of GDP. However, in addition to vide spectacular vistas can be maintained as the curable constraints such as lack of incen- Nepals permanent resource. In addition, tives, markets, and finance, the country faces Nepals rich cultural heritage as well as Nepali a more fundamental handicap. While Nepals peoples friendly reputation provide further neighbors present potentially lucrative mar- attractions to foreign visitors, as does the rich kets to Nepali agricultural and other special- biological heritage of national parks and pro- Current Status and Future Agenda ized products, with no direct access to navi- tected areas. To date, Nepal has only tapped a gable rivers or sea, Nepals ability to trade small fraction of the potential income and globally in manufactured goods and bulky, benefit of marketing its landscape: First, av- unprocessed product is restricted. erage visitors do not stay long enough, and do not spend enough. Second, tourism in- HMG will seek to secure lucrative markets for come is spread unevenly. Third, the last two Nepali products in the region as well as decades have seen insufficient marketing and around the globe. But in the climate of ever- promotion of alternative tourist destinations increasing competition, Nepali products will and attractions around the country. Fourth, have to be increasingly differentiated. They Nepal has been losing potential visitors to will also have to come from industries that competing countries, because of inadequate can be sustained and nurtured on domestic marketing and inadequate as well as over- strengths. One neglected aspect, for example, priced flight connections. 10 Sustainable Development Agenda for Nepal Tourism is an easy source of income for Nepal, makes imported fossil fuels the fastest grow- requiring relatively less investment, and pro- ing energy source in the country. Except for viding many jobs; at times it can even take solar water heating in urban areas and some advantage of the lack of infrastructure in re- biogas production in rural areas, the use of mote areas. However, reliance on tourism in- other renewable energy sources is very small. come is risky and vulnerable to factors be- In recent years there has been growth in the yond Nepals control: economic condition in use of photovoltaic systems in rural communi- visitors countries, domestic and interna- ties. However, electricity is available to just tional violence and negative media reports. 40% of the countrys population, mostly urban. Only 5% of the population in rural areas has More has to be done to both promote domestic access to electricity. Yet the energy potentially tourism and to attract foreign visitors who stay available from hydropower in Nepal is among longer and contribute more. There is both the the highest in the world. Only 1% of the eco- opportunity and the need to use Nepals land- nomically accessible hydropower is tapped. scape, and the quality of life (including recre- This provides not just a potential for meeting a ation) that it allows, to attract highly trained large fraction of domestic energy needs with a professionals to live in Nepal (and institutions clean source, but, as Nepal is bordered by a that support these) who not only benefit Nepal heavily populated energy starved region to its by providing jobs and services, but also attract south, hydropower also represents a large po- visits by thousands of their own clients. In tential source of export income. Prior to 1992, particular, Nepal would be well served by at- hydropower in Nepal was developed by HMG tracting world-class educational and health with donor assistance. The past decade has care institutions, which can then use the Hi- seen the growth of private investment and malayan locations to attract top-paying stu- Nepali companies, as well as a drop in con- dents and patients. Nepal would also be well struction cost per electricity unit. served by attracting wealthy retirees who are visited frequently by friends and family, as In the next 15 years, Nepal is to make strong well as software developers, whose high-value strides not only towards meetings its own export products are weightless. energy needs with domestic renewable sources, but also to produce the energy cheaply

5.1.6 — Energy and Hydropower enough to make domestic industries competi

5.1.6 Energy and Hydropower enough to make domestic industries competi- Today biofuels provide 87% of the energy con- tive, and to create conditions whereby sur- sumed in Nepal, fossil fuels provide 12%, and plus hydroelectricity can be exported. Condi- electricity around 1%. In rural areas, particu- tions will also be created to allow the con- larly in the hills, it is likely that efforts of man- struction of export-oriented hydropower Current Status and Future Agenda agement by communities can regenerate and projects, which can earn Nepal an income be- sustain the forest biomass. Rural livelihoods sides other benefits, including flood control, in Nepal today are also constrained by the lim- irrigation and dry-season water source. Espe- ited availability of energy, and by the hard cially with large projects, environmental eq- labor costs of obtaining biofuel energy. uity and justice issues will have to be prop- erly addressed, such that communities living In urban areas, imported fossil fuels account near power plants are adequately compensated for 90% of the total energy use, including for for their losses and receive a fair share of the cooking, transport and industry. In sub-urban benefits of the project. and newly urbanizing areas, biofuels for cook- ing are giving way to kerosene and other im- Hydropower investments are to be increas- ported fossil fuels. Substitution in cooking ingly financed in Nepali rupees, while de- fuels and expansion of the road network sign and construction of increasingly larger Sustainable Development Agenda for Nepal 11 projects is to be carried out by Nepali exper- parity, as well as the serious problems of mal- tise. In the initial stage, there is to be nutrition, inadequate health spending and complementarity (in terms of who builds run- outreach, and lack of viable income in many of-the river and who builds multi-purpose rural pockets. Problems of alcohol and drug peaking projects) between the government consumption in urban areas are also growing and private investment to avoid a waste of threats to public health. resources. However, the government itself will slowly step out of the business of building While increased national incomes have a power plants and supplying electricity. Devel- strong correlation with increased social opment of community-driven, innovatively spending on health, long-term HMG objec- financed small and micro hydropower plants tives will center around increasing the span and other isolated and standalone renewable of healthy lives by expanding coverage and energy sources like solar, biogas and wind quality of essential and important forms of will play a vital role in meeting the energy health services to all Nepalis. In line with the demand of the country, especially in areas Millennium Development Goals, HMG will be where extending the central grid connection directing its efforts to reduce under-five mor- is expensive. tality by two thirds and to reduce maternal mortality ratio by three-quarters by 2015.

5.2 — Health, Population HMG also expects life expectancy to cross 70

5.2 Health, Population HMG also expects life expectancy to cross 70 and Settlements years by 2017. This theme embraces sectors that impinge on the overall quality of life. This includes lon- 5.2.2 Disease Control and Disability Relief gevity, control of morbidity, family planning, Incidences of diarrhea, neo-natal tetanus, population and migratory pressures, housing acute respiratory tract infections, polio, and living space, quality of air and water, and measles, and tuberculosis are all very high waste management. Discussed here are those among Nepali children. Immunization cover- components of the environment that directly age of infants against diseases is far below impact on human health. universal. In fact, less than 40% of under- fives are fully immunized. HIV/AIDS among

5.2.1 — Longevity adults is a growing problem. Recent estimates

5.2.1 Longevity adults is a growing problem. Recent estimates The average life expectancy of Nepalis today that accept the caveat of under-reporting put has reached 61.9 years. Unlike the global the total number of HIV/AIDS infected people trend though, womens life expectancy is lower at over 35,000. Although available records than mens. More crucially, there has also been cite only around 2% of the population as dis- a sharp reduction in child mortality in the abled, actual figure could be much higher than Current Status and Future Agenda past thirty years, from 200 deaths per 1,000 this. Per capita public expenditures in health live births to around 64.2 today. Maternal is generally low at 2 US dollars per annum. mortality rates, however, remain high at The effectiveness of the existing health in- around 415 per 100,000 live births with only frastructure suffers from bottlenecks ranging around 13% of deliveries attended by trained from poor supply of medicines in the rural health staff. High prevalence of iron anemia areas to natural disease burdens that arise in Nepali women (75%) together with early because of poverty-environmental linkages. marriages also contributes to a high maternal Progress has been made in recent years in mortality rate. Nutritional deficiency affects improving low cost domestic drug production. almost half the children although with supple- mentary medical interventions (like Vitamin A fundamental policy objective of HMG is to A), it has been slowly receding among the universalize primary health care. With the under-5 children since 1990. The average creation and maintenance of health posts in mortality rates, however, hide regional dis- all villages of the country, HMG projects that 12 Sustainable Development Agenda for Nepal almost everyone in the country will be able to sharply, but actual use of contraception among access a medical institution and cost-effec- non-pregnant married women of reproduc- tive delivery of treatment within a few hours tive age is low at 30%. High fertility, in addi- of travel time. HMG also expects to increas- tion to lowered mortality rate, and immigra- ingly transfer management of sub-health posts tion, have caused the population to grow at a to local communities. In the debut year of fast rate of 2.25%, although it has declined 2002/03, this policy benefited 20 sub-health from an even higher rate of 2.6% in the 1980s. posts in 10 districts. Other things remaining the same, at the cur- rent growth rate of 2.25%, the population is Specific policies will center on targeted at- bound to double in the next 30 years to al- tention on nutrition for children, access to most 48.5 million. basic health services, both curative and pre- ventive, in all remote villages including com- Migration, both internal from the hills to the mitments to implement the National Plan for plains and external from India into Nepal, and Safe Motherhood (2001-2017). Better coor- vice-versa, is widespread. While movement of dination with other services such as potable Nepali migrants to India is seasonal, prompted drinking water, sanitation, and education will by low rural wages and agricultural slack peri- also be forged together with increased infor- ods in Nepal, many of the workers coming from mational awareness on the causes of neo-na- India are more skilled and employed in the tal, child mortality and general disease bur- high wage paying manufacturing sector. Travel den. These priorities call for increased per costs and lack of economic opportunities within capita spending on public health, procurement the country have also distorted migratory of cheap generic drugs, greater involvement movements of Nepalis, with most migrants of local bodies and communities in commu- from far- and mid-western Nepal preferring to nication drive. Policies aimed at reversing travel to India rather than to central and east- HIV/AIDS trend also call for prioritized atten- ern Nepal. Within the domestic labor market, tion to the most vulnerable groups. All poli- the use of child labor is also a major concern. cies and results aimed at enhancing longev- ity of Nepalis will be centrally monitored and Population growth in Nepal will be brought coordinated. For this, the institutional down to around 1% by 2017 through coordi- strengthening of the health administration, nated interventions in reproductive health especially at the district level is needed to and family planning, as well as regulation of step-up preventive and curative health ser- migratory flows. The fertility rate has to be vices. HMG will also balance the need for up- decreased considerably with an increased con- stream medical specialists and downstream traceptive prevalence rate. While employment- Current Status and Future Agenda public health workers. Priority on the latter inspired labor movements are not abnormal in will center on creating a large number of developing economies, the problem of seasonal trained health workers, especially female. migration in mid and far western regions of Nepals disabled population will also be as- Nepal is quite serious from the point of view sisted with socio-economic relief and re- of lost national labor, disrupted family and so- dresses both from the state and non-govern- cial ties, and health risk brought back by mi- mental organizations. grants. These demand a targeted attention of HMG in spearheading infrastructure and em-

5.2.3 — Family Planning and Migration ployment related development

5.2.3 Family Planning and Migration ployment related development. Institutionalized state intervention in fam- ily planning began only some 30 years ago. Over the past few decades there has been While the total fertility rate has declined growth in the illegal practice of luring a siz- much since, it is still high at around 4.1. able number of young Nepali women into pros- Knowledge about contraception has increased titution within Nepal and abroad. Human Sustainable Development Agenda for Nepal 13 trafficking of all forms is disgraceful, impact- stoves are to be promoted to decrease indoor ing directly the health, freedom and dignity air pollution from bio-fuel. In the longer run, of a person. HMG will work to eliminate all as Nepals electricity supply builds up, even forms of forced migration and sexual exploi- rural households will be encouraged to switch tation; introduce stricter legal provisions to to cooking with electricity (or bio-gas). In ur- convict and punish perpetrators; strengthen ban areas, local governments will be directed efforts, with the help of NGOs, to rehabili- to create zoning codes that ensure adequate tate trafficked girls and women; and address public and recreational spaces, as well as pro- the underlying causes that make Nepali tection of forests, riverbanks, agricultural land, women vulnerable to trafficking and sexual and other common assets. In particular, ur- exploitation. ban growth will be directed to result in com- pact settlements that promote walking and

5.2.4 — Urbanization, Housing use of public transportation, and that both

5.2.4 Urbanization, Housing use of public transportation, and that both and Living Space provide adequate public space while protect- Although later and slower than in many coun- ing the best agricultural and forest lands in tries, Nepals population is gradually shifting the rural areas, healthy settlement environ- from living in villages to living in urban ar- ment will be promoted. eas. Concentration of population and eco- nomic activities in certain urban centers has 5.2.5 Air Quality created imbalance in the demand and supply As mentioned in the previous section, a large of infrastructure and services; migration and fraction of Nepals population is routinely ex- urban growth has resulted in an urban hous- posed to unhealthy levels of indoor air pollu- ing shortage, crowded living spaces, growth tion from biofuel combustion. The problem is of substandard squatter housing, and a rapid especially acute for women (who spend more loss of per capita public space, including ac- time exposed to kitchen fires), and during cessible green space and space for children to winter heating. Outdoor air quality in Nepal play, as well as permanent losses of prime for- varies widely in space and time, but is gener- est and agricultural land. Many rural as well ally getting worse. Several urban and indus- as some urban households using bio-fuels for trial areas (particularly the Kathmandu Val- cooking suffer from considerable indoor air ley) experience concentrations of airborne pollution. Only 76% of urban households and particulates that are above WHO health stan- 71% of rural households have piped water dards. Concentrations of pollutant gases, such supply; only 76% of urban and fewer rural as CO, ozone, NO2, and SO2 are today mostly households have access to toilets. Current below health limits, but emissions of these home environments and settlement patterns gases or their chemical precursors is growing Current Status and Future Agenda provide unhealthy living conditions for a large rapidly within and upwind of Nepal. Emis- fraction of Nepals population and they repre- sions sources within Nepal include motor ve- sent wasted resources with high opportunity hicles with poor maintenance and little cost. With a few exceptions, urban growth in tailpipe emissions control (these dominate Nepal has taken place in an unplanned man- emissions in some urban areas and highway ner that has contributed to public health haz- corridors), factory smokestacks, widespread ards, as well as to high costs and complica- use of cooking for firewood, winter heating, tions in the delivery of infrastructure and as well as forest fires during the dry season. services. Meanwhile, combustion of biofuels in open stoves is responsible for hazardous indoor air SDAN objectives include providing all people pollution in large numbers of households in living in Nepal with access to safe drinking Nepal. This affects women more than men, as water and to adequate sanitary facilities they typically spend much more time near within and around their homes. Smokeless the stove. 14 Sustainable Development Agenda for Nepal Outdoor air pollution is an especially large cades, rivers downstream of cities and in- concern in the Kathmandu Valley, where half dustrial areas have become increasingly con- the countrys vehicles, 57% of the countrys taminated by raw sewage and industrial ef- industries, and 6% of the countrys popula- fluents. Ponds near dense settlements have tion pollute a very small volume of air con- fared even worse. Public health in settlements fined by surrounding mountains and often depending upon surface water for drinking also by a temperature inversion lid over water is increasingly threatened. Meanwhile, the top. Any mountain valley with little ven- in the Terai, there is growing concern about tilation is susceptible to severe air pollution high natural levels of toxic arsenic in pumped problem if subject to large local emission ground water, while in the Kathmandu Val- sources. Remote areas in the country still have ley, the rate of ground water extraction ex- relatively clean air; this is a marketable asset ceeds the recharge rate. for attracting visitors. However, clean air is under threat even in remote areas without Access to adequate water is an acute problem large local emission sources: Nepal is down- in the major cities. In the remote areas supply wind from mega-cities and growing indus- of piped water is very much limited. Provid- trial areas in India and Bangladesh. ing adequate quantities of safe drinking wa- ter to all households is of utmost priority. The The 15 years objectives include: setting discharge of untreated wastewater into riv- strictly enforced ambient air quality standards, ers and lakes is to be forbidden, and enforced whose exceedance requires immediate cuts by local governments. Regulations and incen- in activities responsible for emission, as well tives are to be introduced for urban and in- as requiring adequate control of emission dustrial areas to build and operate wastewa- from vehicle tailpipes and industry smoke- ter treatment plants. Where drinking water stacks. HMG will encourage the shift towards sources are not adequately clean (for example zero-emission vehicles, especially in dense with the arsenic pollution in the Terai), HMG urban areas, and the shift towards clean will work to ensure that water is properly sources of industrial energy. HMG will also treated. create conditions that foster the growth of institutions that increase domestic research 5.2.7 Solid Waste Management and monitoring capability of air quality, and The increase in inorganic packaging material to create conditions that facilitate the estab- and broken appliances has in recent decades lishment of domestic research and monitor- created solid waste management problem that ing capacity for tracking the trans-boundary did not exist when households mostly transport of air pollution into Nepal to pro- composted or reused organic waste. Today Current Status and Future Agenda vide necessary data for effective international garbage litters streets and trekking trails as negotiations. Meanwhile, HMG will also en- well as pollutes rivers around many settle- sure the spread of cleaner stove technology ments in Nepal. Collection for recycling or re- and alternative cooking fuel sources to re- use of inorganic materials is mostly confined duce indoor air pollution. to the informal economy run by low-income laborers whose services are inadequately rec-

5.2.6 — Water Supply and Quality ognized

5.2.6 Water Supply and Quality ognized. As most springs feeding Nepals streams and rivers are within the country (and those out- The objectives by 2017 include promotion of side are on the sparsely populated Tibetan a reduction in waste volume, as well as in- plateau) ensuring water quality is mostly in creased reuse and recycling. HMG will also Nepals own hands. Himalayan springs pro- encourage research and industry to work to- vide water that is sufficiently pure and po- gether to create cyclical flows of materials, re- tential for bottling and export. In recent de- quiring factory products to be easily disas- Sustainable Development Agenda for Nepal 15 sembled and separated by material, and fac- The relative scarcity of land has forced the tory byproducts to be reused. HMG will also cultivation of steep slopes. Farmers have de- create conditions that facilitate the establish- veloped intricate, labor-intensive terracing ment of recycling centers that have economies techniques for cultivating slopes, aiming for of scale, and the establishment of hazardous minimal loss of top soil and micro-control of waste management centers whose costs are water flow. The subsistence farming that de- paid for by products that emit the waste. Only veloped across much of the hills depended non-recyclable waste is to be disposed in envi- upon a close linkage between crop cultivation, ronmentally sound sanitary landfills. livestock raising and forests. Forests provided firewood and animal fodder (among many

5.3 — Forests, Ecosystems other products), animals provided milk and

5.3 Forests, Ecosystems other products), animals provided milk and and Biodiversity meat, as well as fertilizer for the fields. The Development efforts can never be sustainable man-made and natural ecosystems were man- if they deplete natural resources and damage aged to function together to provide resources ecosystems. Environmental conservation and services that sustained human life. should not be an after-thought of modern eco- nomic development; it is an intrinsic and in- Fast degradation of forest land is a post 1950s violable party to prospects of poverty reduction phenomenon. During the 1950s, nationaliza- and sustainable economic growth. In Nepal tion of forests took place leading to the re- this is made particularly clear by the vulner- moval of the ownership and management of ability of the mountains upon which many of resource base away from villagers without our development efforts are centered. Any de- changing the demand for forest products. In velopment effort that involves a physical addition, Nepals population growth acceler- change (whether through infrastructure con- ated, roads were constructed that provided struction or incentives that change migration easy access to urban areas with growing de- or agricultural patterns) can have a long chain mand for timber and firewood, while increas- of consequences whose prediction requires ing number of foreign trekkers visited moun- deep understanding of the whole system of tain areas consuming additional firewood. The linkages between human economy, physical result was a significant degradation and loss environment, and biotic ecosystems that in- of hill forests, accompanied by other forms of habit and maintain the physical environment. land degradation. In contrast to other sections, discussion here First illegally and later encouraged by changed will not be subdivided into subtopics. This is government policy, many villagers, with an to facilitate an overview of linkages and to a especially active role by women, took conser- Current Status and Future Agenda better understanding of the present status of vation of forests into their own community related topics in context. hands. Today, community forest management in rural Nepal is a rare item in which Nepal The same topography that poses challenges to has become a world leader. Although the coun- infrastructure development also has provided try as a whole still faces net deforestation, Nepal with a rich ecological diversity and for- many areas in the middle hills, where com- est resources. Within this mostly forested land- munity forestry has been especially active, scape live a large variety of animals, in a large have seen a re-growth of forest biomass. variety of niches and micro-habitats made possible by the differences in temperature, al- Over the past three decades, HMG has also titude and moisture at different locations. been active in identifying areas of high bio- Nepal has 118 types of forest ecosystems and logical diversity needing protection. Initially it is inhabited by 9.3% of the worlds bird and national parks were established from which 4.5% of the worlds mammal species. the local inhabitants were displaced. The so- 16 Sustainable Development Agenda for Nepal cial problems thus generated, as well as the scape complex of natural vegetation connect- limited extent to which national parks could ing protected areas together such that spe- be created by removing people led to much cies can roam freely over a large enough area learning and changing strategies. Initiatives to sustain their populations. The Conserva- were taken with conservation areas where tion Areas and Buffer zones are managed by people play an active role in managing the local communities. Today such areas repre- protected areas that they live in or near. sent nearly half of the total protected areas in the country. The future of the biodiversity Even today, Nepals poorest stratum depends conservation program lies in the effective most upon biodiversity products freely gath- broadening of community based conservation ered from forests and other public lands. For programs. In the future, Nepals biodiversity instance, species diversity supplies a range will also be increasingly threatened by exter- of wild plant and animal products on which nally imposed environmental challenges, in- people rely for subsistence, barter and trade: cluding possible acidification of precipitation foods, including fruits, nuts, fish, insects, and as well as changing climates that require spe- roots, wood for fuel, making tools and imple- cies migration. ments, furniture, grasses, reeds and leaves for thatch, mats, baskets, wrapping and fod- 5.4 Education der, leaf litter for fertilizer and various other Education is both a strong means and an end products which are used as medicines, soaps, to sustainable development. An educated and or for ritual purposes. skilled workforce is not only a crucial ingredi- ent for activities that raise income per capita Over the next fifteen years, HMG will con- and well-being in general, but the pursuit of tinue to pursue an adaptive, flexible policy knowledge is an end in itself with immea- that allows learning from experience to cre- surable spill-over benefits to the person, fam- ate an optimal management framework. To- ily, community, and nation. Education has a day, national parks and other protected areas direct bearing also on the quality of leader- cover about 18% of Nepals land area, among ship that a society produces. the highest percentages in the world. Pres- ently, the protected area locations are more 5.4.1 Primary Education concentrated in the Terai and high mountain and Adult Literacy areas, while hilly regions are Today Nepals adult literacy rate (15+age underrepresented. The hills, however, are the group) is still low: about 50%. It also varies by region where community forest management population and gender: 67% for male and 35% is also most successful and has a potential of for female, giving a literacy gender parity of Current Status and Future Agenda being extended to wider management of eco- 0.56. It varies greatly by ethnic and indig- systems. The management and conservation enous groups and between regions of the of ecosystem in Nepal faces several challenges. country. Adult education programs have only Terai and Siwalik forests continue to be lost touched a fraction of the illiterate population. at a rapid rate, generating concerns that in Among school-age children, over 30% of boys the future protected areas may become is- and 40% of girls do not begin school. Even lands of natural vegetation surrounded by students attending school face high dropout growing settlements. Species, such as tigers, and grade repetition rates: children, especially rhinos and Asiatic wild elephant, which need girls, bear heavy household workloads (fetch- large areas for survival are threatened by ing water, collecting fodders, caring young- steady fragmentation of habitats. sters and grazing animals); schools are a long walk from home for about 25% of the primary Creative, well informed, and enforced land school students; and many households can- use planning is required to maintain a land- not afford the cost of sending their children Sustainable Development Agenda for Nepal 17 to school. Private schools are mostly concen- tween the secondary and the higher second- trated in urban areas and market centers. ary (grades 11 and 12) level, there is a great Many schools in rural Nepal often suffer from attrition rate, as less than a third of students poor instruction quality, teacher truancy as each year pass the School Leaving Certificate well as shortages of books and other educa- Examination that gives access to grade 11. tional materials. There is increasing recogni- tion that primary schools would be better run Education objectives include raising the en- if they were community owned, with teach- rollment of girls to the same level as that of ers directly accountable to parents. HMG has boys, and raising the enrollment of both at all already begun taking concrete steps to sup- levels. The education system is to be im- port and expand this. proved to allow for better access and quality. Sustainable development objectives include Further objectives include raising the num- raising primary school attendance of every ber and quality of schools available through- girl and boy to 100%, building more schools out the country at the secondary and higher such that no primary school is more than half secondary levels, as well as establishing well- an hour walk from home, as well as raising endowed scholarship funds to make access to the quality of instruction by providing better quality education independent of family fi- educational materials as well as teacher train- nancial situations. In the short term, enhanc- ing courses. The primary school curriculum ing quality in schools would directly depend will also be revamped to teach more skills. upon performance of teachers. Their pay and There will also be more regional specificity in perks will thus need to be partially tied to the curriculum so that pupils can learn about their performance as measured, for instance, their local geographical and cultural vicinity by standardized national and zonal exam re- as well as the rest of the world. The growing sults of their students. number of private schools will also need to be regulated through broad legislative directives Formal vocational training resulting in cer- to rationalize school fees and services ren- tificates is in its infancy in Nepal. Most work- dered. Private educational establishments at ers learn their skills on the job; in general all levels will also be encouraged to fulfill so- technical skill levels are low throughout the cial responsibilities by setting aside scholar- population. Nine technical schools in Nepal ships for poor, deserving girls and boys espe- teach 16 different skills to students holding cially from disadvantaged ethnic and indig- a 10th grade diploma; however the number enous groups. enrolled is barely a tenth of the number of students who fail the SLC (10th grade) ex- Current Status and Future Agenda

5.4.2 — Secondary, Higher Secondary amination each year. The result is that a large

5.4.2 Secondary, Higher Secondary amination each year. The result is that a large and Vocational Education number of youths neither can gain the skills Although the number of lower secondary and needed for productive employment nor can secondary schools increased five fold between continue to pursue higher education. 1971 and 1997, the enrollment rates are still significantly lower than in primary schools. HMG objectives also include greatly increas- By secondary school age, the enrollment rate ing the vocational training choices available drops to less than a quarter for boys and less to students who are unwilling or unable to than one eighth for girls. The gender differ- continue formal education. Especially impor- ence is a problem resulting from both the lack tant will be the establishment of a widespread of awareness about the importance of female system of stipend-paying, monitored and ac- education as well as societal assumptions of credited apprenticeships in the private sector the role of the male as the breadwinner. Be- which provide young women and men with 18 Sustainable Development Agenda for Nepal the skills necessary to advance in occupations choice, competition, quality, and reputation, of their choice. Not to fragment scarce re- and also to increase domestic revenue, Nepal sources, and to promote synergies, HMG will will make itself attractive for private and es- also encourage the annexing of vocational pecially foreign investment in the tertiary wings to existing schools. It will also be im- education sector. portant to keep access open to people of all ages by facilitating retraining 5.5 Institutions and Infrastructure

5.4.3 — Tertiary Education and Research This chapter brings together sectors that fa

5.4.3 Tertiary Education and Research This chapter brings together sectors that fa- College and university education in Nepal has cilitate a sovereign citizens meaningful a long road ahead to becoming internation- participation in all aspects of the nations po- ally competitive. Today, about 150,000 stu- litical, economic, and socio-cultural life, as dents are enrolled in campuses of the state- well as provide the backbone upon which the run Tribhuvan University (TU). In many fac- nations economy will function. Topics include ulties, quality of instruction and reputation issues of access and representation in state of graduates has much room for improvement, entities, transport, and communication facili- as evidenced by the performance of gradu- ties. Hydropower infrastructure was already ates on the job market. In addition, especially discussed in section 5.1. during the past decade, TUs ability to func- tion effectively has been hampered by fre- 5.5.1 Access to and Representation quent changes in politically appointed admin- in the State and Governance istrative posts, and by excessive political ac- Exercise of good citizenship and peoples par- tivism among students. A small number of ticipation in community and public affairs is recently founded private universities have both a means and an end of sustainable de- established a reputation for quality instruc- velopment. The 1990 Constitution makes the tion; but their small enrollment and high people of Nepal sovereign and a source of all prices put them out of reach for most stu- state power. In a diverse country with many dents. The last decade has seen a rapid growth ethnic and religious groups, gender imbal- in number of Nepali students pursuing ter- ance, and geographical differences, the pat- tiary education overseas, often at high cost to tern of access and representation of citizens the family, and with a high loss rate to Nepal in institutions of the state is, however, not of students who do not return. even and representative. Among the three branches of state, the executive has the most Fifteen years from now, Nepal is to have a visible presence; however inadequate insti- university system that provides access and tutional capacity, inefficiency in manage- Current Status and Future Agenda choices to any citizen who qualifies on the ment, centralized structure, and systemic basis of merit, and produces well-trained bureaucratic apathy coupled with a general graduates. A homegrown network of inde- lack of accountability and transparency have pendent competing private as well as com- hindered and weakened proper discharge of munity colleges, universities, and research state services. Nepals reinstated democracy institutions is to be fostered through appro- since 1990 has allowed citizens to become priate government policy. increasingly vocal and assertive in their de- mand from the state. Participation in national Increasingly, state university students will be and local elections is widespread and the abil- expected to cost-share in university educa- ity of citizens to organize into interest groups tion through user fees, or to receive scholar- is becoming stronger. However, adequate par- ships and loans when deserving. This will ticipation by women, ethnic minorities and screen students with the right motivation to deprived sections has not adequately materi- pursue higher education. In order to increase alized in public affairs. Sustainable Development Agenda for Nepal 19 HMGs continuing objectives in this area will governments ability to deliver services, and be to build upon the momentous gains en- the overall economy. A large part of the coun- shrined in the 1990 Constitution the source try is yet to be connected with modern trans- of sovereignty and of civic and political free- port; vast areas, especially northern parts of doms to secure and increase the level of Nepal, are still several days walk from the peoples participation in public affairs, and nearest road; 15 districts have no road ac- promote the ease with which citizens have cess. The domestic air transport network is access to fair, accountable, transparent, and extensive and plays an important role for efficient services of the state. Public institu- many parts of the country, but it is unaffordable tions will increasingly be represented and to much of the population. There is one inter- staffed by a wide range of ethnic groups and national airport with a handful of overpriced by a fair share of women. HMGs over-arching flights. Government control, a state-owned objective in the structure of government will monopoly, and bilateral agreements instead be to redress the skewed pattern of access of open sky policies have suppressed compe- and representation. This is most important tition on international routes and kept the because HMG explicitly recognizes the number of flights small. countrys diversity of heritage, ideas, ways of thinking, and practices as a source of national The last decade has seen major achievements pride and strength. in the surface transport sector with a dou- bling of the total road length, as well as the Fairer, easier and more equitable access to construction of many roads connecting vil- and representation of citizens in state insti- lages. In some cases, these have been poorly tutions need consistent, long-term, and coor- built leading to loss of topsoil and triggering dinated strategies from education and urban landslides. Cable cars, which have a lot of po- policy to legal design and construction of tential for transporting people and goods in physical infrastructure. All HMG policies will, mountainous areas are gradually attracting thus, be informed and influenced by a need the private sector. Today, there is one opera- to ensure that all citizens irrespective of tional railroad connecting a very short stretch. ethnicity, religion, caste, creed, and sex have Nepal has several all-weather road connec- access to and become part of all organs of the tions to India, and one to China. The trans- state. Decentralization of administration and port of goods to and from overseas takes place political devolution have remained long- either by air or via a lengthy route through standing HMG policies which will be pro- Calcutta harbor, making transportation cost moted over the coming years through sub- expensive. Meanwhile traffic growth in sev- stantive legal and financial autonomy. It is eral urban areas, most notably in the Current Status and Future Agenda HMGs view that increased access and par- Kathmandu Valley, create the urgent need for ticipation of citizens in community and state planning of sustainable urban mobility that affairs not only expedites meaningful devel- is efficient and flexible, while protecting air opment efforts, but that these are also linked quality and cultural heritage. with the fundamental ends of development themselves, such as citizen honor and dig- Objectives by 2017 include providing most nity. HMG recognizes that because this theme of the VDCs with at least one modern form of is important and all encompassing, it should transport, as well as improving walking and and will cut across all national polices in ev- mule trails. Most local roads will be constructed ery sector. with local level decision-making using eco- friendly techniques. The private sector is to

5.5.2 — Transport Network be attracted to the construction and mainte

5.5.2 Transport Network be attracted to the construction and mainte- The efficiency of the countrys transport net- nance of roads. There is also to be an explora- work affects population movement, the tion of the use of motor barges on some of the 20 Sustainable Development Agenda for Nepal larger rivers (perhaps with the removal of key two new private television channels supple- rocks), as well as the invitation for the private ment the state-owned Nepal Television. The sector and foreign investors to build and oper- print media has also become most vibrant af- ate passenger and cargo railroads connecting ter 1990, with a healthy growth of national the major urban areas of Nepal, perhaps through broad-sheets and newsmagazines. Build Operate Transfer (BOT) arrangements. In urban areas, local governments are to be The entire telephone network is operated by assisted with necessary expertise to plan their a government-owned monopoly. Communi- own local transportation systems to efficiently cation policies are gradually being liberalized and cleanly transport people and goods. and they are showing results. A regulatory body on telecom has already been formed with The private sector and foreign investors are also the expectation that the state-owned telecom invited to build, improve and operate airports corporation will only be one of many players at sites that allow growth without noise con- in the future. Some services, such as mobile cerns: the largest would be in the Terai area of phones, are already licensed to private pro- Nepal with the capacity to develop into an in- viders. Much remains to be done. During the tercontinental air travel hub of a scale not pos- conflict micro-wave telephone repeater tow- sible in Kathmandu. Connected to major cities ers have been targeted and destroyed, cut- in Nepal (as well as northern India) by efficient ting off several districts and demonstrating surface transport as well as by regular shuttle the vulnerability of a system dependent upon flights, this airport would handle most of Nepals a small number of key nodes. intercontinental and regional flights. The pri- vate sector would also be invited to invest in Telecommunication objectives include further two somewhat smaller international airports liberalization and privatization of domestic serving the eastern and the mid-to-far western fixed and wireless infrastructure and services, regions of Nepal (as well as adjoining parts of as well as creating a network with built-in India) with regular flights to important cities in redundancies and back-up routings such that South Asia, to regions with trade/labor connec- destruction of one node cannot interrupt ser- tion, and cargo flights. vices.

5.5.3 — Communication Network By 2017, there is to be telephone as well as

5.5.3 Communication Network By 2017, there is to be telephone as well as Similar to the transport network, communi- internet service in every VDC. Telecommuni- cation in Nepal made great strides in the last cation access is to be improved through pub- decade. Telephone lines increased several lic as well as private investment. The latter is fold, vast rural areas received telephone lines, to be facilitated by legal provisions, fiscal in- Current Status and Future Agenda and cellular coverage was started in major centives, and supportive operational regula- urban areas and along highways. However, tions. HMG foresees a strong private sector low income, low literacy level, and low access role in this area and even public utilities will to electricity, among other factors, have to date need to be guided by innovative, cost effec- limited expansion of Information and Com- tive, and value-adding services. HMG has munication Technologies (ICT) and perhaps incorporated ICT in academic curricula and widened the digital divide between social seeks to create a growing pool of human re- groups. Radio and television coverage are still sources in this field. Management of local not nation-wide, although the number of pri- postal services may be handed over to the vately operated FM radio stations has risen local bodies. from zero to twenty. Local bodies like the Kathmandu Metropolis has also started their 5.6 Peace and Security own FM radio services. ISPs have started pro- Like honor and dignity, ability of citizens to viding internet services in major cities, while lead secure lives is an important objective of Sustainable Development Agenda for Nepal 21 development itself. There are many facets of version, and armed insurgencies. First, they security. We cover here the following: secu- will be sought to be ended through dialogue rity from violence, peaceful co-existence with and peaceful settlement. Second, there is no neighbors; access to food, prevention from room for violence in the country, and every natural disasters, and climate change. citizen has the right to lead secure lives, as well as defend herself. Third, perpetrators of

5.6.1 — Regional Cooperation unlawful destruction and violence will be cap

5.6.1 Regional Cooperation unlawful destruction and violence will be cap- Nepal is not a small country in terms of both tured and tried as per the laws of the land territorial size and population. The fact that it and no citizen will be allowed to possess un- is among the 40 most populous is often forgot- licensed arms. Fourth, as a maturing democ- ten because it is nestled between nations with racy, Nepal will honor all its commitments to over 1 billion people each. The Indo-Nepal bor- protect human rights, especially those en- der is porous, only mildly regulated with mo- shrined in the Universal Declaration of Hu- bility of people largely unaccounted. India pre- man Rights and not misuse state security sents a big market for Nepali products if it can apparatus in taming any kind of dissent. be facilitated by mutually beneficial trade and Fifth, HMG will identify the underlying causes transit treaties and linked by better transport of discontent and seek to implement with infrastructure. The bordering Indian states of sincerity the socio-political-cultural redresses. Uttar Pradesh, Bihar and West Bengal alone offer a regional market with 300 million con- 5.6.3 Food Security sumers. It will be HMGs policy to pursue bet- Recent decades have seen repeated incidences ter-negotiated understanding and trading ar- of hunger and starvation in remote districts of rangements with India and China. In addi- mid-western Nepal. Food security requires tion to trade, the border is to be arranged to meeting two conditions: first, local agricultural oversee flow of people, as well as check move- production and/or the supply network has to ment of restricted items, screen diseases, and physically bring enough food into a location of be vigilant about movement of terrorists. As need. Second, all people must have the means the host of the SAARC Secretariat, Nepal will of acquiring food, whether through access to also aspire to play a more active role in ensur- land, livestock, cash crops and grain, or through ing peace in the region by assuming neutral, sufficient income to allow purchase of needed mediating roles. food. These conditions can be threatened by a variety of factors: by floods and landslides dam-

5.6.2 — Strengthening Democracy aging fields and/or the transport infrastruc

5.6.2 Strengthening Democracy aging fields and/or the transport infrastruc- and Fight Against Terrorism ture, by collapse of an income source, or by It is HMGs non-negotiable position that there political violence and instability. Current Status and Future Agenda is no justification for any form of armed insur- gency in the country when all civil channels Sustainable development cannot proceed un- for expression of dissent are open and there der a situation of hunger; and food security are constitutional guarantees to secure politi- cannot be ensured through external supplies cal expression peacefully and change of gov- alone. HMG will, thus, set utmost priority to ernment through elections. Terrorism not only food security by ensuring that the regional impacts on the security of the current genera- agro-ecological and economic systems supply tion of the living, but by disturbing peace, it enough food to the whole population under directly impacts on the development prospect, normal circumstances, and by preparing for stability of the country, and security and well unexpected times of additional threat. The being of current and future generations. latter will require setting up a dispersed net- work of emergency food storage centers There are a few fundamental principles that throughout the country, as well as a fund that HMG will uphold in tackling terrorism, sub- allows making that food available to people in 22 Sustainable Development Agenda for Nepal need at prices that they can afford. As men- ible a transportation system as one based on tioned earlier, it will also be important to en- motor vehicles. However, a move towards in- sure not just access to adequate amount of vesting in cleaner, energy efficient vehicles food but also to nutritionally balanced food, will make increasing economic sense and pro- such that malnutrition can be fully eliminated. vide other benefits, including less air pollu- tion, and less fuel import dependence. Com-

5.6.4 — Climate Change pared to many countries, Nepals economy is

5.6.4 Climate Change pared to many countries, Nepals economy is Recent research indicates that human in- not yet locked into heavy fossil-fuel depen- duced climate change is real, already taking dence; this provides many opportunities to place, and certain to proceed in future de- choose cleaner paths from the start. cades. Uncertainties and debates remain in the timing and exact magnitude of predicted Nepals foreign policy situation with regard changes, but there is little doubt that even a to climate change is different from that of its slight increase in global average temperature neighbors as well as most other LDCs. It shares is accompanied by much larger changes in the low-blame, high-vulnerability features of local and regional climates. Nepals blame for other developing mountain and small island causing climate change is negligibly small: nations. It will thus play an active role in in- today Nepali citizens comprise less than 0.4% ternational arenas, vigorously defending its of the world population and are responsible right to continue its economic development for only about 0.025% of annual greenhouse unimpeded by restriction on cost effective gas emissions. Nepals vulnerability to dam- energy. However, because of its hydroelec- age from climate change, however, is large. tricity potential, it is also sitting on a clean Temperatures are likely to increase more in domestic energy source that can meet not only high mountain areas than elsewhere. Glaciers most of its future needs, but also supply an and snowfields will recede and may even dis- exportable surplus. Nepals ability to export appear, reducing Nepals dry season river wa- hydro-electricity at a beneficial price would ter source. This will impact irrigation and benefit from restrictions on GHG emission drinking water supply as well as the reliabil- upon large nearby countries, as well as im- ity of hydroelectricity. In addition, receding proved international recognition of hydroelec- glaciers often leave behind growing glacier tricity as a clean source of energy. lakes that can break through terminal mo- raines causing catastrophic floods. Global cli- 5.6.5 Natural Disasters mate change will also likely shift monsoon The monsoon that brings rain and life to rural precipitation patterns in ways that will Nepal also brings destruction and disaster. threaten Nepals current agricultural practices, Every year hundreds of people in Nepal die Current Status and Future Agenda as well as threaten infrastructure. Changing from flashfloods and landslides, and thou- temperature and moisture patterns will also sands more lose their homes, fields, and live- threaten biodiversity, especially in mountain stock. Every year landslides damage the areas where migration of species is physi- countrys transport network, and the econo- cally restricted. mies that depend on it. This is due to a num- ber of causes, including young geological Only vigorous economic growth can provide structure, steep slopes, unplanned settle- Nepal with the means to withstand and miti- ments, rapid deforestation and the construc- gate some of the effects of a changing climate tion of infrastructure without appropriate pro- that Nepal did not choose and did not cause. tection of the alignments. Nepals rugged to- Ironically, in the short run, Nepals economic pography is responsible for rainfall patterns development depends on increased domes- and microclimates that vary greatly in space, tic GHG emissions, as no alternative fuel to- making accurate weather and flood predic- day allows as cost effective, efficient, and flex- tions extremely difficult. Sustainable Development Agenda for Nepal 23 Nepals location, straddling major faults along ume of water is stored (potentially larger the growing Himalaya mountain ensures that flood), and an increasing water level adds the country experiences strong earthquakes pressure on the moraine. Proper monitoring once or twice a century. Heavy losses are best of all glacier lakes is needed in order to allow avoided by constructing houses resistant to similar mitigative and corrective measures. collapse and fire, by training the population to protect themselves when an earthquake Objectives in natural disaster management occurs and by having emergency response by 2017 include decreasing the loss of lives plans, materials, and equipment on stand-by and property by landslides, earthquakes, and at all times. Apart from a few earthquake re- floods by orienting new constructions towards sistant building designs, our preparation for appropriate locations, conducting research and a large earthquake is poor. Nepal is also not setting up monitoring system that provides equipped with any early warning system. early warning (rainfall, GLOF, earthquake), as Setting this up could save many lives. well as setting up alarm system that can con- vey advanced notification to people in areas at Nepal has also experienced several severe imminent risk. There is also a need to stock- floods from rapidly draining glacier lakes. pile emergency relief materials and equipment These glacier lake outburst floods (GLOF) at strategic locations. In urban areas, there is occur with the collapse of the terminal mo- need for creating more open spaces. An urgent raine dam that holds up the water at the lower task is the establishment of early-response end of the lake. The recent and future reced- teams at both the local and national level that ing of Himalayan glaciers due to a warming can be deployed immediately following a di- climate, and the consequent growth of lakes saster. Each disaster will also be analyzed between the moraines and the receding ice, closely to draw lessons to allow faster, more are causes for concern, since both a larger vol- effective deployment the next time. Current Status and Future Agenda 24 Sustainable Development Agenda for Nepal 6 Summary of Policies Against the backdrop of the status and objectives for various sectors discussed in Section Five, this section summarizes specific existing or new policies that need to be pursued with greater effectiveness by HMG in order to achieve sus- tainable development as defined earlier.

6.1 — Economic Growth and

6.1 Economic Growth and Poverty Reduction

6.1.1 — New Investment and Trade Opportunities

6.1.1 New Investment and Trade Opportunities Achieve and maintain broad-based pro-poor growth to at least 7% per annum that draws on intensive agriculture and agro-industries, hydropower and services such as eco-tour- ism which contribute to reducing absolute poverty levels to a single digit percentage point; remove policy inconsisten- cies to attract foreign direct investment; reform policies to accelerate private sector participation and good corporate governance, export products and labor to new markets se- cured through economic diplomacy and WTO membership, and channel remittance through formal banking sector into productive investment; complement global integration by institutional preparedness at home.

6.1.2 — Substantial Financial Re-structuring

6.1.2 Substantial Financial Re-structuring Increase revenue generation through effective implemen- tation of taxes such as the VAT and a widening of the tax base; reduce burden of debt servicing; reform financial sys- Summary of Policies tem through prudential regulation.

6.1.3 — Better Public Sector Provisioning

6.1.3 Better Public Sector Provisioning Utilize development budget fully with multi-year planning of public expenditures and prioritization of government projects and programs; improve provision of public goods; gradually privatize state-owned-enterprises. Sustainable Development Agenda for Nepal 25

6.1.4 — Optimized Growth and trained health staff; restructure the incen

6.1.4 Optimized Growth and trained health staff; restructure the incen- Reorientation in Agriculture tive and administrative enforcement system Drawing on added investment in fertilizers, in the health bureaucracy. Work towards irrigation, research and extension, infrastruc- providing health insurance to the population ture, increase both the value and volume of to ensure increased access to health services. production, especially of high-value-low-volume crops; expedite land reform, land use manage- 6.2.2 Inter-sectoral Linkages ment and security of contractual farming. Integrate health issues with nutrition, edu- cation, food security, and drinking water for

6.1.5 — Targeted Development Programs an inter-sectoral approach to improve social

6.1.5 Targeted Development Programs an inter-sectoral approach to improve social Improve social indicators and infrastructure indicators. in the poorest regions, especially the far and mid-west, and among the poorest groups 6.2.3 Decentralized Administration Dalits, indigenous groups, and women among Increasingly manage district and village health them. Strengthen Poverty Alleviation Fund installations by local bodies. Most communi- (PAF) and establish local development funds cation drives on health awareness, including for investment in infrastructure. HIV/AIDS, drugs and alcohol consumption, to be locally driven in conjunction with commu-

6.1.6 — Environmental Redresses nity and womens groups and mass media

6.1.6 Environmental Redresses nity and womens groups and mass media. Create economic incentives to use clean en- ergy sources; require environmental impact 6.2.4 Control of Fertility, and Child assessments and analyses of alternatives for and Maternal Mortality all projects. Honor commitments to internationally agreed Universal Rights of the Child; ensure protec-

6.1.7 — Social Mobilization tion of children from armed conflicts; effec

6.1.7 Social Mobilization tion of children from armed conflicts; effec- With assistance of NGOs, facilitate expansion tively implement national safe motherhood of organized groups of the poor through bet- plan; improve Contraceptive Prevalence Rate; ter linkages with local bodies and their ex- halve child under-nutrition rate. tension services in health, agriculture as well as provision of credit, skills training, and adult 6.2.5 Regulation of All Forms of Labor education; operationalize the Poverty Alle- Abolish child labor and bonded labor; moni- viation Fund. tor labor movement in and outside the coun- try; create a domestic pool of skilled workforce

6.1.8 — Increased Social Security while honoring ILO conventions on minimum

6.1.8 Increased Social Security while honoring ILO conventions on minimum and Safety Nets wage, maternity leaves, occupational health Widen the net of vulnerability allowances to and safety standards. the elderly, widows, disabled and others; spread publicly and privately provided insur- 6.2.6 Emissions Control Summary of Policies ance schemes to cover all households against Move towards zero emission vehicles; set and risk to health and property. encourage air quality standard; enforce ban on untreated wastewater discharge from industries

6.2 — Health, Population and municipalities; create incentive for waste

6.2 Health, Population and municipalities; create incentive for waste- and Settlements water treatment; expand research on air quality;

6.2.1 — Nationwide Network of get local governments to establish programs on

6.2.1 Nationwide Network of get local governments to establish programs on Health Service recyclables including the policy of making house- Provide to all citizens access, within at most holds pay for non-recyclable domestic waste; in- a few hours of travel, to basic health care fa- crease the regulatory role of the state, but also cilities that offer medicines and services; in- increase private sector provisioning of environ- crease the number of women working as mental services such as waste management. 26 Sustainable Development Agenda for Nepal

6.3 — Forests, Ecosystems tion, community seed banking, utilization of

6.3 Forests, Ecosystems tion, community seed banking, utilization of and Biodiversity landraces, and indigenous knowledge systems.

6.3.1 — Management of Natural Forests

6.3.1 Management of Natural Forests and Protected Areas 6.3.7 Conservation of Rangelands Promote peoples participation in forestry re- Develop cohesive and comprehensive range- source development, management, and con- land conservation strategies on biological re- servation; ensure that protected areas bring sources by and between the forestry and agri- economic benefits to local communities by pro- cultural sectors, which is critical for a majority moting protected areas as tourist destinations. of endangered species as well as for the subsis- tence of mountain communities.

6.3.2 — Conservation of Ecosystems

6.3.2 Conservation of Ecosystems and Genetic Resources 6.3.8 Research and Exploration of Implement Nepals Biodiversity Strategy, which Medical Application and Income of emphasizes conservation and management of Nepals Biodiversity biodiversity contained in forests, rangeland, Regulate the export of herbs; encourage local re- protected areas, wetlands and agriculture. searchers to study the healing properties of herbs used in traditional medicines; facilitate rapid

6.3.3 — Conservation of Biodiversity at patenting of drugs derived from Nepals herbs

6.3.3 Conservation of Biodiversity at patenting of drugs derived from Nepals herbs. the Landscape Level Recognize the role of large-scale threats from 6.4 Education climate change, habitat fragmentations and 6.4.1 Access to School Education and loss of forest cover, and conserve biodiversity 100% Literacy outside protected areas as well. Make every girl and boy attend primary school; provide adult education programs. Increase com-

6.3.4 — Protection of Land Against munity-managed primary and secondary

6.3.4 Protection of Land Against munity-managed primary and secondary Degradation schools; create conditions that allow more girls Take steps to minimize losses from soil ero- to attend secondary schools. Restructure school sion, floods, landslides, desertification, and systems so that high school education formally other effects of ecological imbalance. Require terminates at grade twelve. local governments to prepare and enforce land use plans so that integrated land use prin- 6.4.2 Vocational Training Opportunities ciples are followed; more effective interac- Increase the number and enrollment of exist- tion between forestry and farming practices ing vocational training schools; build new such to contribute to food production. schools, encourage the private sector to pro- vide formal vocational training opportunities

6.3.5 — Promotion of Sustainable for both women and men

6.3.5 Promotion of Sustainable for both women and men. Harvest and Management of Non-Timber Forest Products 6.4.3 Improve the Quality of Colleges Summary of Policies Promote cultivation of NTFP on private land and Universities and in community and leasehold forests, es- Depoliticize universities; increase the num- pecially medicinal and aromatic plants; con- ber of regional universities; encourage com- duct forest resource assessment and adap- petition; and invite foreign investment in tive research. education and encourage the establishment of international university.

6.3.6 — Agricultural Biodiversity for

6.3.6 Agricultural Biodiversity for Marginalized Mountain Communities 6.4.4 Improve Domestic Research Capacity Continue ensuring variability in crop species by Establish a well-endowed national research traditional farming systems through participa- fund; establish a council that lists research tory plant breeding, participatory variety selec- fields of national priority and conducts. Sustainable Development Agenda for Nepal 27

6.5 — Good Governance 6.6.2 Private Investment in

6.5 Good Governance 6.6.2 Private Investment in

6.5.1 — Effective Decentralization Transport Infrastructure and Services

6.5.1 Effective Decentralization Transport Infrastructure and Services Devolve political, financial, and administra- Encourage the private sector to invest in and tive authority to empowered locally elected operate long-distance highways and railroads as entities that increasingly manage local public well as telecommunication infrastructure and services such as agriculture extension, educa- services; disband cartels and encourage bus op- tion and health; increase grants to local bodies erations that compete with price and service level. on the basis of poverty and population levels; assist them to create local resource bases and 6.6.3 Local Development Funds for to explore new ways of revenue sharing; amend Infrastructure Acts for greater legal authority. Facilitate through endowments the local deci- sion-making on formulation, execution, main-

6.5.2 — Review Patterns of Access and tenance, and ownership of small-scale infra

6.5.2 Review Patterns of Access and tenance, and ownership of small-scale infra- Representation structure projects such as irrigation, agricul- Periodically review entry requirements and tural roads, local roads and other public works. existing staff composition of all publicly funded state entities. Set meritocracy as the 6.6.4 Food Security guiding principle, but have the state seriously Establish emergency food storage centers redress uneven gender as well as socio-eth- throughout the country; reduce transport in- nic composition. terruption by encouraging the development of a transportation network with multiple con-

6.5.3 — Civil Service Reforms nections; ensure adequate fertilizer and seed

6.5.3 Civil Service Reforms nections; ensure adequate fertilizer and seed Restructure and reform state organs, like the supply to rural areas. administrative bureaucracy, Police and the Army, that have direct contact with the citi- 6.6.5 Aviation Policy zens, in favor of retrenchment, meritocratic Privatize RNAC and open international routes representation of gender and ethnicity, cost- to open competition from Nepali and foreign effectiveness, and better public service and airlines; continue the present policy of pri- value for tax money. vate domestic aviation of modified open sky (with price ceiling and incentive to operate

6.5.4 — Good Governance Legislation public service routes); create conditions

6.5.4 Good Governance Legislation public service routes); create conditions Develop and promulgate strong bills assuring whereby the private sector and foreign in- good governance through respect of human vestment build several airports around Nepal. rights, citizens charters, control of corruption and abuse of public authority, and other means 6.7 Peace and Security to improve transparency, accountability and par- 6.7.1 Constructive Diplomacy ticipation in public expenditure management. Secure new global markets for Nepali prod- ucts and workers; improve bilateral trade ties

6.6 — Infrastructure

6.6 Infrastructure Summary of Policies with India, China and other immediate neigh-

6.6.1 — Nationwide Network of Surface bors, as well as other landlocked and moun

6.6.1 Nationwide Network of Surface bors, as well as other landlocked and moun- Transport tain nations, activate economic diplomacy in Emphasize the connection of all districts by promoting tourism and investment. modern transport; provide adequate funding and technical guidance to district and VDC 6.7.2 Regulation of Border for construction of roads, cable cars and im- Monitor and record the flow of foreign mi- proved trails; explore the feasibility of motor grants, block the trafficking of women and boat and barge operation on large rivers as children, and the flows of diseases, terrorists, well as the linkage of railroads. and restricted items. 28 Sustainable Development Agenda for Nepal

6.7.3 — Coping with Violence early warning in every village to convey warn

6.7.3 Coping with Violence early warning in every village to convey warn- Leave no room for unlicensed arms posses- ings of flood, landslide, or earthquake; build sion and terrorist activities; try to end all forms decentralized emergency response capacity; of dissent through dialogue and negotiated enforce safety design standard for buildings settlements. and infrastructure that take into account site- specific risks; research and invest in earth-

6.7.4 — Emergency Response quake prediction system as well as weather

6.7.4 Emergency Response quake prediction system as well as weather Create a national disaster preparation and prediction system; monitor all glacier lakes management agency that guides and assesses and have siphon materials ready for rapid preparedness for disasters; set up a system of installation. Summary of Policies Sustainable Development Agenda for Nepal 29 7 Implementation

7.1 — Monitoring and Evaluation

7.1 Monitoring and Evaluation The Sustainable Development Agenda of Nepal is a broad, national, vision-setting document that is expected to guide the policies and programs of HMG presented to the budget sessions of the parliament each year, as well as the annual presentation of revenue and expenditure estimates (bud- get), the five-year plans, and all long-term sectoral strate- gies. SDAN is thus more than a static document. Its objec- tives and policy guidelines will take the form of an umbrella under which all disparate development strategies will be placed and be made coherent. This will be a continuous and cyclic arrangement of feedback for, i) broad monitoring of progress towards development goals, ii) necessary modifi- cations, and iii) consequent updates. Three features are rec- ognized here:

7.1.1 — Community Participation and Civic Scrutiny

7.1.1 Community Participation and Civic Scrutiny People are the most important beneficiaries, of development. Their participation in the formulation, execution, monitor- ing, and evaluation of all development efforts is fundamen- tal. Since several grassroots initiatives will be undertaken in support of broad policy objectives, it will be important to mandate peoples engagement in almost all development initiatives launched in their name. Community-based moni- toring and evaluation will thus form part of all development projects at the grass roots level. This form of beneficiary Implementation scrutiny will not only promote the attainment of immediate project or micro-level objectives, but effort will also be made to distill and channel broader lessons and cases of successes, as well as failures, to higher tiers of development decision- making. This way, community- based monitoring and evalu- ation will be institutionalized to inform all formal policy making processes. Methods of public expenditure tracking will also be adopted to monitor and scrutinize the flow of 30 Sustainable Development Agenda for Nepal public funds from the exchequer down to the central entity will be institutionalized and people in each district and village. operationalized. SDAN thus foresees the people being completely at the center of the

7.1.2 — Decentralized Monitoring and cycle of all development efforts from planning

7.1.2 Decentralized Monitoring and cycle of all development efforts from planning Evaluation Capacities to evaluation. A coordinated reporting system While informal civic participatory efforts have on SDAN with overall poverty monitoring sys- their merit, these are best complemented by tem will also be put in place . institutionalized, formal channels of moni- toring with a functioning feedback loop es- 7.2 Institutional tablished in the planning cycle. Since HMG Arrangements is committed to advancing the processes of The National Commission on Sustainable decentralization and greater financial as well Development (NCSD) was formed on 4 April as legislative empowerment to local bodies, it 2002. The Commission is to be chaired by will strengthen local bodies ability to plan the Prime Minister with the Finance Minis- and execute annual or multi year develop- ter as Vice Chairman. It is a high level com- ment plans at the district and village level. mission that draws on a wide membership Here, the usual biases strengthening the going beyond the cabinet to include seven front-heavy planning capacities will be bal- representative members from the following anced by strong monitoring capacity at the major groups of stakeholders: Farmers, NGOs, local level to solicit feedback on performance Industry and Commerce, Women, Ethnic of projects and programs, process the feed- Groups and Youth, Labor, Science and Tech- back, analyze them and incorporate them into nology Community, and Elected Bodies. From subsequent plans. This will also help in es- the executive, full rank cabinet ministers from tablishing a system whereby the district level the following ministries are members of the lessons are relayed to the ministry level for Commission: Health, Agriculture, Foreign Af- policy lessons and better sectoral strategies fairs, Women, Children and Social Welfare, will also be instituted. Water Resources, Science and Technology, and Forest and Soil Conservation. The Vice Chair-

7.1.3 — Coordinating Central Monitoring man of the NPC is also a Member of NCSD,

7.1.3 Coordinating Central Monitoring man of the NPC is also a Member of NCSD, As outlined at the outset, because SDAN is a while the Member-Secretary of the Commis- broad vision setting process and not a self- sion is the Secretary of the Ministry of Popu- contained development strategy per se, a cen- lation and Environment. tral level entity that coordinates different HMG initiatives, from the annual budget and the This high level commission is to endorse and periodic plan to sectoral strategies, is envi- issue broad vision and guidelines. However, sioned for keeping track of the broad devel- given the all-encompassing nature of sustain- opment goals. Monitoring results as reported able development goals, it is necessary for all from the grassroots through surveys, censuses actors the state, civil society and the pri- and individual development programs will vate sector to play their respective roles in be consolidated and analyzed centrally so that implementing the policies and strive to meet Implementation modification can be made and thrust of pri- the goals and objectives outlined as part of ority shifted. This central entity to monitor, the countrys Sustainable Development modify and update broad development strat- Agenda. egies will be the National Planning Commis- sion in conjunction with the newly-formed 7.3 Expectations from the National Commission on Sustainable Devel- International Community opment. Fundamentally altering a past prac- At its current stage of development, given the tice, the feedback chain from the community capacity, knowledge, and financial constraints level to the local bodies and then on to the of the country, Nepal will only be able to meet Sustainable Development Agenda for Nepal 31 the goals set out in this Agenda if its existing ing and investing nations should be more resource base is complemented synergistically lenient in their offers of access for products by external assistance that may arrive in many originating in countries like Nepal. Nations, forms. While dependence on foreign aid has especially those that are industrially affluent to be gradually phased out, current trends and and more responsible for climate change, pol- allocations of external financial and technical lution, and other environmental damages assistance will need some re-orientation with should do more to assist poorer countries re- greater focus on its more effective use. Nepal dress their environmental problems through has been fortunate to have a generous access transfer of technology, expertise, and com- to international resources for many years. This pensation. flow of international assistance is expected to continue to play an increasingly catalytic role One of Nepals key identities originates in its in, i) triggering policy reforms, ii) supporting Himalayan location, which hosts eight of the local initiatives, and iii) filling crucial knowl- ten highest mountains in the world includ- edge gaps so as to ensure that development ing Mt. Everest. Although half the countrys initiatives are not only initiated, but also nur- population now lives in the Terai and Inner tured and sustained nationally. Terai a narrow strip of flat land extending from the Indo-Gangetic plains, more than four Besides receiving conventional forms of for- fifths of the countrys area is mountainous. eign aid, Nepal as a landlocked, least devel- Mountain eco-systems impact the prospects oped country (LDC) also rightly maintains its of development in the Terai, for example claim to special attention in all international through the flow of irrigation, ground water fora. As least developing countries seek to recharge, and flood waters. Forming alliances integrate themselves into the global economy, with other mountainous countries for mu- through membership of the World Trade Or- tual co-operation and seeking assistance from ganization and various regional trading blocs, international fora to conserve and develop the international community needs to recog- sustainably its precious mountains and moun- nize the difficulties faced by LDCs like Nepal tain-based resources is thus key to sustain- in accepting multi-lateral obligations of mak- able development of Nepal. ing concessions on goods and services, and of also participating effectively in the acces- Nepal, as a sovereign territory, also believes sion process, as highlighted at the Third UN in being an active member in the global com- Conference on LDCs in Brussels, 2001. Nepal munity of nations. It recognizes the impor- must be allowed to maintain its policy space, tance of multilateral organizations like the and avail of the basic principles of special United Nations, and wishes to see these and differentiated treatment with automatic strengthened to respect, with greater effec- eligibility in existing WTO Agreements rang- tiveness, the concerns of small, landlocked ing from agriculture and services, to intellec- developing countries like Nepal in order to tual property, investment measures, and use achieve shared global goals of peace and sus- Implementation of subsidies and anti-dumping. Richer trad- tainable prosperity. 32 Sustainable Development Agenda for Nepal Color profile: Generic CMYK printer profile Composite Default screen t/fO{ l;jflns dWokxfl8 If]q pRr kxfl8 IF]q 100 pRr lxdfnL IF]q lhNnf l;dfgf Kilometers 50 0 NEPAL g]kfn ) %) !)) Terai lsnf]ld6/ Siwalik Mid Mountain High Mountain High Himalaya District Boundary Cover.prn N:\SCDP\Report\mainfiles\Cover.cdr Monday, October 13, 2003 7:54:04 PM

Sustainable Development Agenda For Nepal

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