2024 has been a year of significant challenges for the global development sector. In Nepal, declining donor support and reduced commitments from strategic development partners have compounded various difficulties. Frequent political transitions and administrative hurdles have further strained the capacity of international and national NGOs to design and implement projects effectively. Additionally, climate change has exacerbated existing vulnerabilities, with increasing floods and prolonged droughts disproportionately impacting marginalized communities. These challenges have deprived many from accessing basic rights such as health, education, safe drinking water and sanitation, and improved livelihoods. Amid these adversities, 2024 has provided us with valuable lessons on some of these critical aspects of development in Nepal.
Address Economic Barriers to Attract More Funding
While Nepal’s real GDP growth is projected to rise to 3.9% in 2024 from 2% in 2023, nearly a quarter of this growth is driven by remittances. The 2021 Census revealed that 25% of Nepali households have at least one member living abroad, highlighting the country’s struggle to retain human capital.
Besides, Official Development Assistance (ODA) from major donors, like the World Bank, Asian Development Bank, USAID, and United Nations, have been declining sharply, undermining Nepal’s ability to achieve Sustainable Development Goals (SDGs) by 2030, particularly in poverty reduction, education, and inclusive growth. Although the government has introduced progressive policies, challenges in implementation, such as delays in high value infrastructure projects, raise concerns about institutional capacity and accountability. To address these issues, Nepal must invest in capacity-building of systemic actors, foster stronger partnerships with CSOs, and ensure greater aid transparency and accountability at all levels. A collective commitment to sustainable development is key to achieving long-term progress.
Streamline Systems to Advance Localization Efforts
Five Major Lessons for Development Sector in 2022
Localization of foreign aid has become a key focus in Nepal’s development sector, emphasizing sustainable, context-specific, and need-based support for disadvantaged communities. In theory, this approach strengthens local capacity and promotes community ownership aligned with local, provincial, and federal priorities. However, varying capacities among local actors and confusion over roles—particularly between local, national, and international NGOs—have created significant challenges. Additionally, administrative hurdles in fund management and delays in fund transfers, especially between NGOs and INGOs, have hindered progress. Donors, once committed to localization goals, are now more cautious due to unmet objectives. It is crucial for the government of Nepal to address these systemic barriers to fund transfers and approve processes, ensuring smoother coordination and effective implementation of localization efforts.
Attract More Funding for Climate-Induced Disasters
2024 has seen an increase in climate-induced disasters, with flash floods—some of the worst in over four decades—impacting areas like Kathmandu. Two major glacial lake outburst floods (GLOFs) occurred this year, and flooding and river erosion have intensified. Despite the global recognition of climate change’s disproportionate impact on countries like Nepal, the recent UN Conference of the Parties (COP29) failed to adequately address these issues or demonstrate tangible global commitments. Mountain regions, particularly vulnerable, received insufficient attention.
It is crucial for our government to engage in diplomatic efforts, emphasizing climate justice, and explore mechanisms like carbon trading and the $300 billion climate finance pledged by developed nations. These resources are vital for climate adaptation and risk mitigation. Given the link between climate change and the water and sanitation sector, there is a strong need for better data and scientific evidence from affected communities, requiring sustained financing from both the government and development partners.
Ensure Inclusion of The Left Behind Groups
Nepal’s constitution has made important provisions for marginalized and vulnerable groups, yet the 16th Periodic Plan (2024/25 - 2028/29) sets ambitious 40 goals without sufficient resourcing and clear strategies to reach them. It is plausible that marginalized communities, including Dalits, Persons with Disabilities, and other minority groups, continue to face significant barriers to accessing essential services and exercising their rights.
Acquired from Water-Aid Nepal’s efforts to promote inclusive WASH services in the country, adopting universal design principles, ensuring accessible messaging, and collaborating with local governments and skilful organizations can improve service delivery and inclusion for these groups. The engagement of these groups in the project cycle management process will not only empower them but also build ownership and promote resilient and sustainable development in the long run.
Uproot Policy Implementation Obstacles
While Nepal has made notable progress in policy formulation and in signing international treaties and conventions, implementation remains a significant challenge. The absence of actionable plans, and clear rules and regulations hampers progress. For instance, the Water, Sanitation, and Hygiene (WASH) Regulation has been delayed in cabinet approval, thereby obstructing progress towards SDG-related targets. In addition, lack of clarity on intergovernmental coordination for the execution of existing policy frameworks further impedes progress. Strengthening collaboration among the three tiers of government—federal, provincial, and local—is essential to enhance planning, budgeting, and the effective implementation of priority projects.
Use Innovation to Reach Impact and Scalability
Lastly, in the ever-evolving development landscape of Nepal, it is essential for the government, non-profit organizations, academia, and the private sector to collaborate on the front of innovation and explore viable solutions to the persistent challenges. The current model of development is not only outdated but may have been disconnected from the field realities of Nepal, failing to demonstrate relevant and affordable solutions for our communities.
I am proud to be associated with WaterAid, which has recognized innovation as a core value and actively supports the piloting of simple yet effective solutions to global challenges related to water quality, sanitation treatment, and poor hygiene. These proven effective models, developed by any partners in the innovation space, must be appraised by the government, and scaled up to ensure broader reach and greater impact, fostering sustainable development and addressing Nepal’s unique needs.
The author is currently associated with WaterAid as a Country Director in Nepal, opinions expressed are solely personal and does not represent the organization’s viewpoint.
