Action Aid Nepal has prepared a study report on the effectiveness of foreign aid in Nepal. The report was prepared by senior economist Dr. Dilli Raj Khanal. The report book was released in a formal ceremony held in the capital on Friday.
Researcher Dilli Raj Khanal has concluded that there is no relationship between foreign aid and economic development, considering the fact that foreign aid is only 4 and a half percent of Nepal’s total GDP. Another is that there is no relationship between foreign aid and country’s policy rules. According to his report, while foreign aid is needed in education and health, no result has been seen because all the aid is in the energy sector.
The summary of the report book written by him is that foreign aid is decreasing due to our policies to achieve the goal of sustainable development, and as government intervention in foreign aid decreases, spending through direct agencies is increasing.
Commenting on the report, former finance minister Dr. Yuvraj Khatiwada said that it will be clear if foreign aid is evaluated in terms of mutual relations rather than evaluating it from one side only. Stating that every big project of Nepal has some part of foreign aid, it is natural that some foreign aid is good and some is bad, Khatiwada said.
Dr. Swarnim Wagle, Deputy Chairman and Member of Parliament of Rashtriya Swatantra Party), said that extreme corruption is taking place by taking over the regulatory body. He said that he is in favor of the issue that the countries that give foreign aid to such countries should be tied to financial transparency. He said that if foreign aid agencies do not adhere to financial conditions, financial discipline and transparency, more corruption will increase.
He said that the main need today is to discuss the effectiveness of taxes and direct foreign investment in the country’s development rather than foreign aid, which has a small share in the country’s development.
Commenting on the program, former minister Dr. Minendra Rizal said that when there is a divided class in the country, no plan would be successful. Claiming that the government is focused at building an airport but always failing to run it, he expressed the view that the effectiveness of education and health will not be realized until foreign aid intervenes.
Similarly, Speaker Devraj Ghimire, the chief guest of the program, said that in order to make good use of foreign aid, information about the aid should be accessible to the common people. He said that the assistance coming through various foreign organizations, nations and programs for the development of the country should be submitted to the parliament through the government and the parliamentarians should implement it under the budget or policy on where, in which areas and how they should be used.
