Factors Ailing Nepal's Development

After a decade plus, Nepal launched a periodic plan; an internationally acclaimed political scientist and researcher, Mr Aaron Wildavsky, wrote a seminal essay, 'Why planning fails in Nepal'. In the article incorporated in a quarterly journal named 'Administrative Science', which was published by the Sage Publications in 1972, Wildavsky mentioned five key points as reasons behind unsuccessful planning in Nepal: a) Lack of information; b) Differing priorities of the Nepal government (Nepal's plan) and donor agencies; c) Dearth of coordination among significant bodies like the Finance Ministry, National Planning Commission, and other ministries; d) Underspending; and e) Presence and influence of multiple government agencies in the name of a single government. Since the international observer wrote this journal article, Nepal has made several periodic plans and forwarded development projects accordingly.

However, all five points he mentioned are still relevant and warrant serious attention from the policy makers and shapers – bureaucracy, parliament, political parties, development practitioners, and even aid agencies.

These issues are finely elaborated by former Secretary of the Nepal government, Mr Lal Shankar Ghimire, in his book, "Nepalko Sambriddhika Badha Ra Byabadhan" (Obstructions and Barriers of Prosperity in Nepal). It is worth reading to enhance knowledge on Nepal's efforts for development and economic progress, as well as the obstructions emanating from multiple sides. The points concluded by Wildavsky nearly six decades ago are still recurring in the government's review meetings of development projects and periodic plans, which Ghimire describes clearly in the book. Interestingly, a lack of coordination among government agencies is often a concern. Why are our government agencies so irresponsible toward development activities and projects, and why do they fail to make a single stand on setting priorities? Is the development only for a select few and the needs of only people with low incomes? What ails Nepal's development and hinders the successful enforcement of periodic plans and budgets? This book gives clear answers to these questions from the former bureaucrat without hesitation. He admits bureaucratic malfeasance and exposes the attitude that plagues Nepal's governance.  

It is a compendium of 28 compelling essays, mostly about foreign aid and its relations to Nepal's development. As the longest-serving government employee in the Finance Ministry of Nepal, looking after multifarious issues surrounding foreign aid, concerns, and priorities of the Nepal government and development partners, Ghimire boldly brings to light the malaise that plagues the Nepali bureaucracy and political leadership. He does not even spare those assisting Nepal, but with cogent arguments. If the development projects fail, donors don't worry but point fingers towards the Nepal government, he says, urging all concerned to shake up development discourse.

These essays conclude that poverty, backwardness, subpar economic growth, administrative malfeasance, and shortsighted leadership have dented Nepal's development and blunted the journey to prosperity. As the researcher indicated and Ghimire explained, 'prosperity' is not a new buzzword in Nepali bureaucratic and political landscapes and media alike, but the aspiration of Nepalis for decades. 

Foreign aid has been sought and accepted for Nepal's development and well-being for seven decades, and the trend of seeking assistance has not stopped. When does this end? Ghimire argues that foreign aid does not develop a country; it is capital formation, production boost, industrial and workforce development, trade, and political stability. Worryingly, Nepal is so snared in foreign aid that it cannot get rid of it anytime soon, for its national economy is feeble and largely dependent on others. Indeed, the countries that used to receive foreign aid, like Nepal, have stopped and even begun assisting others. Ghimire gives a significant example of South Korea's decision to stop receiving foreign aid after 30 years of self-sufficiency. The status of South Korea and Nepal in the 1960s was similar in terms of economy. Why and how did South Korea make economic progress, and why are we slowing down? Even India and China, which once accepted aid, have now stopped it. 

What is the foreign assistance for? For a country like ours, the overall wellbeing is to reduce poverty, enhance health and educational attainment, and improve living standards. But whether the assistance achieved in loans and grants is utilised is a critical issue, Ghimire reminds. Importantly, Nepal does not receive the aid in the amount as committed by the rich; a huge chunk of the assistance is returned to the donors/foreign countries. What a contradiction! In an essay titled 'Brokering in Foreign Aid', Ghimire describes multiple brokers: national and foreign advisors, contractors, employees, public officials, and politicians lobbying for varying interests in development projects. He writes, "Political activists lobby for foreign aid to fulfil commercial, personal, and strategic interests and advocate for purchasing things and making infrastructure that is not necessary for the country."

The former bureaucrat also expressed concern over why there is a fuss over a loan or a grant. It is an illogical debate to be obsessed with prioritising a grant over a loan. Grant alone is not the solution. How the loan is utilised best for the national cause matters most. 

Another critical area Mr Ghimire ponders is the protracted construction of development projects. He asserts that the slow pace of development work is a failed development in the sense that the cost, quality, amount, and deadline are often compromised and conditions are violated. If the planned projects are not completed on time, the soaring cost and difficulty in managing resources are torturous, thereby dashing development and dampening people's aspirations for prosperity. He gives the example of the Melamchi Drinking Water Project and the Upper Tamakoshi Hydro Project. Ultimately, the Melamchi came to the parched Kathmandu with tremendous delay and mounting cost!

Ghimire has written boldly and without hesitation. Most of the essays were written during his tenure in a government office. One may question whether Ghimire regrets it, but he has vividly written in the very preface of the book that there were very few things he could be proud of over decades of service.

At a time when the world, those rich in modern resources and a knack for capital, is advancing towards the fifth industrial revolution, why is the tardy pace of development nagging Nepal? The readers can find the barriers in this book. Ghimire's essays, rich in facts, data, and cogent argument, make a clarion call on all to review our development efforts and wipe out the barriers as soon as possible.