Study Reports

Institute for International Cooperation
Japan International Cooperation Agency

PDF (PDF/652KB)

Japan has been extending assistance to Nepal as its largest donor, taking into account the seriousness of the poverty situation and the undeniable need for assistance to the country. In March 1993, following the 1990 democratization movement in Nepal, JICA compiled the first Country Study for Japan's Official Development Assistance to Nepal. Subsequently, Nepal underwent drastic changes, including the intensification of the Maoist insurgency (led by the Communist Party of Nepal) during the latter half of the 1990s. While the poverty situation remained more or less the same, new developments emerged, including the formulation of a Poverty Reduction Strategy Paper (PRSP) as advocated by the World Bank and the IMF. These political and socio-economic changes in Nepal, as well as changing international trends of aid to the country, made it necessary for Japan to urgently review its own approach. This was the background to the establishment of this study committee - the Second Committee on the Country Study for Japan's Official Development Assistance to the Kingdom of Nepal.

This study committee was chaired by Prof. Hiroshi Ishii, Research Institute for Languages and Cultures of Asia and Africa, Tokyo University of Foreign Studies. Its 15 members and advisors included academics and JICA staff. The committee met six times and sent missions to Nepal. The findings of these activities are compiled in this report.

At the end of 2001, the committee, moving towards the final stage of its activities, suspended the edition of the report due to the intensification of Maoist conflict in Nepal. After January 2003, when the situation was turning around, the committee compiled this report in light of the latest conditions.

Contents of this report

This report is composed of two chapters:

Foreword

Preface

List of Study Committee Members and Advisors

Map of Nepal

Contents

Highlight of the Country Study for Japan's Official Development Assistance to the Kingdom of Nepal (PDF/120KB)

Chapter 1 Current Situation and Future Directions of the Development in Nepal (PDF/396KB)

Chapter 1, Chapter 2 and References are included.

1-1 Nepalese government development plans and policies

1-1-1 From the First to the Eighth Five-Year Plans
1-1-2 The Ninth Five Year Plan and the Long-Term Development Strategy (1997-2017)
1-1-3 Development of the Poverty Reduction Strategy Paper and the Medium Term Expenditure Framework
1-1-4 Development of Foreign Aid Policy

1-2 Current situation of the development in Nepal and its problems

1-2-1 Current situation of development
1-2-2 Development potential
1-2-3 Problems with the development of Nepal - the mechanism of poverty

1-3 Medium- to long-term directions for the development of Nepal

1-3-1 Proposed pro-poor growth strategy for Nepal
1-3-2 Approaches of Nepal's pro-poor growth strategy

Chapter 2 Exploring the Optimal Approach for Japan's ODA to Nepal

2-1 Trends of assistance by Japan and other donors

2-1-1 Trends in Japan's ODA to Nepal
2-1-2 Aid trends of the major donors
2-1-3 Situation of the Nepal Development Forum

2-2 Rationales of Japan's ODA to Nepal

2-3 Basic perspectives of Japan's ODA to Nepal

2-4 Basic approaches of Japan's ODA to Nepal

2-4-1 Proper way to support local development initiatives
2-4-2 Selection of priority sectors

2-5 Proposed approaches of Japan's ODA to Nepal in consideration of peace facts

2-5-1 Escalation of the Maoist problems and responses of the major donors
2-5-2 Proposed approaches of Japan's ODA to Nepal in consideration of peace facts

2-6 Points to be noted in extending aid to Nepal

References

Appendix: Trends in Major Indicators (PDF/156KB)