Development Cooperation Policy 2014

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Development cooperation has played a vital role in Nepal’s overall development efforts over the past 6 decades. However, enhancement of development cooperation effectiveness to deliver expected results remains a key challenge. There is a need of continuous reform for maximum use of cooperation with mutual understanding among the development partners and the Government for which, Nepal has been also expressing its commitment at various international forums.
In this context, Nepal has endorsed the Paris Declaration on Aid Effectiveness 2005, the Accra Agenda for Action 2008, and the Busan Commitment 2011. Furthermore, Nepal has expressed its solidarity with the global collective efforts for reform made during the First High-Level meeting held in Mexico in 2014 with the goal of garnering global partnership for development effectiveness.
The second Constituent Assembly election concluded in 2013 has paved the way for promulgation of a new constitution. In the context of moving from transition towards stability, the Government of Nepal has given higher priority for economic development agenda. It is necessary to mobilize development cooperation more effectively in order to achieve those agendas.
It is essential to mobilize development cooperation effectively to achieve Nepal’s goal of graduating from ‘Least Developed Country’ to ‘Developing Country’ status by 2022 AD, and also to gradually reduce the dependency on foreign aid and build a self-reliant economy.
The Government has felt the need to revise the Foreign Aid Policy, 2002 as per the demand of time and the need to formulate a new policy in the context of changed national and international scenarios. In addition, various development cooperation stakeholders – development partners, international forums, the civil society, and government agencies – have advised the Government from time to time on the need for a new development cooperation policy. After the People’s Movement of 2006/07, the people’s aspirations for economic development and prosperity have significantly heightened. Addressing those aspirations also comes under the purview of the State responsibility. Therefore, there has been a need to formulate a new and dynamic development cooperation policy to address the aspirations emerged from the political changes, to internalize the recommendations and commitments from international forums, to incorporate the changes in donors’ cooperation strategies, to increase accountability and transparency by using the aid money in priority areas in selective manner, and to increase the use of country system in the mobilization of development cooperation in order to transform the country’s goal of upgrading the status from ‘Least Developed Country’ to ‘Developing Country’ by 2022.