Resource gap major hurdle in meeting MDGs
Nepal is holding true to its course in its efforts to attain most of the millennium development goals (MDGs) by 2015, but the huge resource gap stands as a major deterrent.
The Millennium Development Goals Needs Assessment Report for Nepal 2010 says there is a shortfall of Rs 451.43 billion than planned and estimated allocation of resources. As per the report, Nepal needs investment of Rs 1395.80 billion while the proposed resource for the period stands at Rs 944.36 billion only.
The report, prepared jointly by National Planning Commission (NPC) and United Nations Development Programme (UNDP), is pessimistic about how resources would be generated to meet the gap. “It will be hard for the government to raise financial resources, both internally and externally,” the report says. “The global recession and climate change have made international support less generous. Therefore, Nepal will have to show higher development aid effectiveness to attract global funds.”
It means that the government will have to strive harder to mobilise available resources optimally and double its efforts to acquire international financial and technical support through better performance and economic diplomacy.
Releasing the report on Wednesday, NPC Vice-chairman Dinesh Chandra Devkota said that the government must be clear on how to mobilise resources and effectively utilize foreign aid.
Given Nepal’s low foreign aid absorbing capacity, the country has been receiving much less than what the donors had pledged. Nepal has received Rs 46 billion in cash in both grant and loans from donors as of 11 months of the last fiscal year which is far less than the targeted amount.
However, United Nation Resident and Humanitarian Coordinator Robert Piper said that aid would not be a problem for Nepal. “Due to Nepal’s international goodwill, it could get increased aid from donors despite financial crisis hitting the world economies,” he said.
Even though it is critical of the country’s ability to raise resources, the report reasserted the progress achieved as indicated by MDG Progress Report-2010. Nepal has already achieved the target in regard to proportion of population with access to safer drinking water, under-five mortality rate and ratio of girls to boys’ enrollment in primary level.
Encouragingly, Nepal is also close to reaching some of the targets by 2015, such as the proportion of population living on less than US$ 1 per day, net enrollment rate in primary education, ratio of boys to girls at the secondary level, maternal mortality rate and death rate associated with tuberculosis.
However, the report says the issues of quality of service, inclusiveness and sustainability of already achieved targets as well as targets close to being achieved may need accelerated effort. Nepal also faces challenges in attaining some targets related to hunger, gender balance, and universal access to reproductive health, proportion of underweight children and proportion of stunted children. Likewise, survival rate till grade 5, literacy rate of 15-24 years olds, proportion of births attended by skilled attendants and proportion of population using improved sanitation facilities are other targets that are unlikely to be met.
The report suggests three three-pronged strategic interventions to realize goals that include-continuation, reinforcement and additional effort. It stressed on the need for increasing income, employment and social protection in regard to employment and poverty reduction. On education, it suggested providing access to schools for out of school children and building capacity of teachers and gender equality.
For the health sector, the report suggests strengthening immunization programme, integrated management of child illness are necessary and improving quality of drinking water.
Resource Needs (Rs in billion)
Goals Need Availability Gap
Poverty 379.96 277.10 102.86
Education 344.50 167.32 177.18
Gender 27.59 12.62 14.97
Health 105.68 84.89 20.79
Energy, enviro 273.72 159.06 114.67
Road infra 264.35 243.38 20.97
Total 1395.80 944.37 451.44
Source: MDG Needs Assessment Report for Nepal 2010
Posted on: 2011-08-25 09:18
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