KATHMANDU, Dec 22: Experts have pointed out the need to streamline small-scale foreign aid that various countries including Nepal’s immediate neighbors provide in underserved areas including those in the border region.

Addressing a discussion program on Dynamics of Small-Scale Foreign Aid in Nepal's Borderland organized by the Center for Social Inclusion and Federalism in the capital on Friday, the experts argued that small-scale aid must be regulated by Nepal’s state mechanism and there must be an institutional cohesion among ministries concerned to avoid duplication to ensure effectiveness of such aid.

The discussion was held after the presentation of the findings on “Dynamics of Small-Scale Foreign Aid in Nepal’s Borderlands by Milan Acharya, a researcher at CESIF. Acharya argued that China’s small-scale aid focused solely on the northern frontier districts bordering Tibet Autonomous Region, while India’s assistance spread across Nepal.

Acharya, however, noted that India’s small-scale aid and projects had increased in the northern region in recent years. Making a comparative analysis of the trend of such aid by India and China in the borderland, the research showed that China had a tendency to override state mechanisms and procedures and its small-scale aid is more unregulated compared to that of India’s small aid.

Commenting on the findings of the research, Former Secretary Krishna Gyawali said that although small-scale assistance is very important, its sustainability after the departure of donors’ funding also needs to be taken into account. He saw lobbying from politicians as the most important factor for small-scale funds at the local level.

Secretary Gyawali also noted that the objective of small-scale aid must be aligned with national interest, with appropriate monitoring, operation maintenance and accountability mechanisms.

Madhav Sapkota, a member of the Infrastructure Development Committee under the House of Representatives (HoR), Samjhana Thapaliya, Member of International Relations and Tourism Committee (HoR), Former Secretary Lal Shankar Ghimire and Secretary of the Ministry of Industry, Commerce and Supplies, Madhu Marasini were also among the prominent speakers during the discussion.

Former Secretary Ghimire expressed his concern on Nepal having an agreement with Tibet, a province of China instead of its central government of China. Experts argued that such agreements can put Nepal into trouble as sub-national units may start handling such small-scale assistance in the future.

Addressing the program, federal parliament lawmaker Sapkota pointed out the need to have a clear policy on how to manage small-scale foreign aid in Nepal's borderland. "It seems we do not have clarity on how to manage the small scale foreign aid," he said, while noting that a number of countries including India and China have lately focused more on small scale projects.

Sapkota, representing a northern bordering district Sindhupalchowk, shared his experience of China’s aid in Nepal. He specified an example of the high maintenance cost of a school constructed by China, highlighting the need to align with local needs and long-term sustainability.

Similarly, federal parliament lawmaker Thapaliya raised concerns about the border issues with India in Saptari which need to be resolved by both neighbors, India and Nepal. 

 
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