Context
Nepal has been in a process of transition since the end of its civil war in 2006. Economic development in the country is hindered by political instability, and many structural deficits are apparent. It is especially difficult for socially or economically disadvantaged segments of the population in rural areas to find work.
Until now, the responsible public and private institutions and cooperatives have not played a sufficient role in promoting inclusive development of the economy. Established mechanisms to coordinate cooperative efforts, as well as innovative approaches to economic development and resources for training, are lacking.
Objective
Selected actors within the public, private and cooperative sectors play an increasing role in promoting inclusive development of the economy.
Approach
The project supports the Nepalese Ministry of Industry in promoting inclusive development of the economy in Banke, Dang, Kailali, Pyuthan and Surkhet, five districts in central and far-western Nepal. The project strengthens partner institutions by improving the public–private dialogue. It promotes the economic inclusion of target groups through support for selected value chains such as honey, medicinal aromatic plants and dairy products.
The project additionally aims to transfer successful local practices to the national level, develop innovative approaches to improved cooperation among partners, and promote socially responsible entrepreneurship. The institutional capacity of selected partners is to be expanded and services of public institutions developed. These aspects of the project are intended to promote inclusive growth and employment.
Target groups include the poor and very poor populations of Nepal who are economically active or have the relevant potential. The focus is on women, disadvantaged castes and ethnic/religious groups, people affected by the civil war, as well as people with disabilities.
The Ministry of Industry is the lead executing agency of the project. Implementing organisations include the Department for Small and Cottage Industries, the Cottage and Small Industry Development Board, as well as the Department of Cooperatives of the Ministry of Cooperatives and Poverty Alleviation. Additionally, organisations from the private sector, cooperatives and selected companies are involved in implementing the project.
Results achieved so far
Local structures, as well as the resources and public services of the chambers of industry and commerce at the district level, have been improved. A particular milestone was the establishment of information and service centres for business start-ups and business promotion at eight selected chambers. With support from these centres, more than 1,500 Nepalese citizens had set up or expanded their own companies by November 2013.
Between 2012 and 2013, more than 3,500 producers were reached with support from the value chains. 70% of these producers were from disadvantaged groups, and 55% of those receiving support from the project have been women.
The findings of the first business climate study to be conducted enhanced public–private dialogue in the target districts and were incorporated into development plans.