Donor Aid

This paper grows from the meeting between IA and the Donor Group on 23rd November 2006 on how to respond effectively and appropriately in the changed political context in Nepal. Drawing on the comments and analysis at the meeting, this paper offers recommendations on priorities for donor engagement. The basic theme is that short-term goals can be achieved, but only if addressing the culture of power in Nepal is the starting point.

Briefing paper

Over the past 50 years, Nepal has received over USD11 billion in foreign aid.Today, almost 50 bilateral and multilateral donor agencies and more than 100 INGOs regularly provide aid to Nepal. International aid accounts for the majority of the national development budget whereby Nepal is dependent on aid (loans and grants) for basic service delivery, social and economic infrastructure development.Nepal remains, however, one of the poorest countries in South Asia, with over one quarter of the population under the poverty line and huge swathes of the country food-poor.

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