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Hill Agricultural Research Project (HARP) Nepal - Lessons for the Policy, Institutions and Processes Dimensions of the Sustainable Livelihoods Approach: Karim Hussein (ODI) and Sarah Montagu (DFID)

 3. Political Setting

Nepal has a long history of autocratic rule, with most of the political power concentrated in the centre and with the monarchy. After restoration of democracy in 1990, strengthening of local self-government became a basic policy for decentralisation. The current legal framework for decentralisation (1997 Act and 1999 Local - Self governance Act) potentially gives more voice to the poor in local decisions and emphasises the participation of local people with the preparation and implementation of district development plans.

Decentralisation
To some extent it can be said that decentralisation, in the sense of sharing "public power" vertically through "interventions" from outside the state apparatus, has occurred. The Local Self-governance Act, 1999, provides local institutions with executive, legislative and judicial powers in order to establish them as local governments and make them accountable to local people. The role of central government is limited to policy formulation. All responsibilities for planning, resource mobilisation, allocation, monitoring and evaluation have been handed over to the local institutions and to newly created representative village and district level organisations: Village Development Committees (VDCs) and District Development Committees DDCs).

However, devolution in Nepal has rarely been understood as a mechanism of sharing political power among the central and local levels of governance. Elected local bodies are often put together with the field offices of the line agencies, both taken simply as an arm of central authorities designed to execute their decisions. Elected bodies therefore tend draw their legitimacy from, and are accountable to, the centre rather than local electorates. This undermines the potential to make demands on the centre, and for the centre to respond more appropriately to local livelihood needs.

However, the experiences of many developing countries show that without the democratisation and decentralisation of state institutions, it is not possible to build self-reliant and self-determining local entities capable of responding to the increasing demands of diverse groups in a polity. This is highly relevant in a multi-ethnic, multi-lingual and multi-religious society such as Nepal. Hence, while there are problems, decentralisation is has still been important in empowering many sections of the population of Nepal.

Public Sector Institutions
External factors limiting the performance of public sector institutions in Nepal include:

  • an absence of effective systems for relating expenditure programmes to outputs, such as targets in the development plan;
  • management systems that emphasise management controls on the distribution and use of resources;
  • organisational culture that rewards obedience (to rules and to superiors).

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Patronage
It is frequently argued that Nepalese institutions, both within and outside government, are dominated by patronage. This refers to practices such as the promotion of like-minded supporters to key posts, the replacement or relocation of many civil servants after a change of leadership, and so on. This context of patronage is characterised by:

  • informal connections rather than transparent rules governing behaviour;
  • personal connections often being the most important factor in decision-making;
  • politicians working within networks of bureaucratic and political clients to gain influence and authority within and outside government.

Attempts to change this system are few. Expectations are that government and civil institutions will continue to support privileged access and opportunity, and in consequence strategies pursued by less advantaged groups tend to focus on working with the patronage system rather than seeking fundamental change. A manifestation of the patronage system within government includes frequent changes in senior government personnel, resulting in a lack of continuity.

These constraints have prevented public sector institutions from responding to the policies (in successive development plans) calling for accelerated development. Policies are ambitious, but institutions are unable to implement the changes necessary to deliver them. Accountability, in terms of the delivery of effective services, is weak. Under these circumstances many poor people have little effective control over their lives. Furthermore, more powerful groups have an interest in maintaining the status quo.

Political Instability
The expression of democracy and the removal of the King's authority over policy have had both positive (democratic elections have empowered the people to have a voice in selecting and changing their leaders; press freedoms are cherished; decentralised institutions have been established) and negative implications (instability; changing officials).

Frequent changes in the government, a crisis of confidence among political parties, unwillingness of the bureaucracy to delegate power to local levels, and problems in budget allocation from the centre to the regions have all held back power-sharing. Frequent changes in government result in frequent staff changes in public sector institutions. Government staff members are not in their posts for long enough to do anything effective, least of all take on board the livelihoods and poverty reduction principles or are transferred before they can implement change. Political instability also contributes to corruption as some officials try to reap the benefits of their position before they are moved on.

In this context, development practitioners can take on the role of institutional memory - being more stable than staff in national institutions.

Maoist Insurgency
There has been increased Maoist activity in the mid-west and western areas of Nepal, with violence being reported regularly. The situation became so serious that the government briefly activated the National Defence Council in May 2000. This simmering conflict poses significant problems for all development initiatives in rural areas, especially as the poorest tend to live in these areas. NGOs are beginning to down-scale their activities in these areas and in some cases are withdrawing to safer areas. Banks and police posts are also closing in the rural areas and moving back to district headquarters, making them less accessible to rural people. Extension workers are also naturally reluctant to visit such areas.

 Box 1: Lessons on decentralisation in Nepal for SLAs 



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Contents:
Summary
1 Relevance of the Study to Sustainable Livelihoods
2 Livelihoods Context and Summary Data: Nepal
3 Political Setting
4 Macro-Economic Policy and Agricultural Policy Context
5 DFID Policy and Approach to Development Assistance in Nepal
6 The Nepal Agricultural Research Council (NARC)
7 HARP - The Project and the Process
8 HRP - Funded Project Case Study: Combined Rice-Fish Farming in the Hills
9 Emerging Issues: How Does the Political and Institutional Setting Influence the Achievement of SL Objectives
10 Key Sources and Further Reading
Annex 1: HARP Timeline and Process
Annex 2: Programme for Nepal Visit
Acronyms
Research Biodata


   
   

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