INCLUDE – Inclusive Development of the Economy

Programme description

Title: INCLUDE – Inclusive Development of the Economy
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Nepal
Lead executing agency: Ministry of Cooperatives and Poverty Alleviation (MoCPA)
Overall term: 2008 to 2019

Afghanistan. Essential oil is obtained from distillation. © GIZ

Context
Nepal has been in a process of transition since the end of the civil war in 2006. In addition, the country was hit by a devastating earthquake in April 2015. 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.

The responsible public and private institutions and cooperatives do not play a sufficient role in promoting inclusive development of the economy. The country also lacks established mechanisms to coordinate cooperative efforts, as well as innovative approaches to economic development and resources for training.

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 the five districts of Banke, Dang, Kailali, Pyuthan and Surkhet in central and far-western Nepal. The project strengthens the ability of partner institutions to improve 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 improve 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 employment growth.

Target groups include the poor and very poor populations of Nepal who are economically active or have strong potential. The focus is on women, disadvantaged castes and ethnic/religious groups, people affected by the civil war, and people with disabilities.

The Ministry of Industry is the lead executing agency for the project. Implementing organisations include the Department for Small and Cottage Industries, the Cottage and Small Industry Development Board, and 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
By late 2015, the project had reached more than 7,500 producers through its support for value chains. Over half of these were earning over EUR 200 in additional income per year. 70 per cent of these producers were from disadvantaged groups, and over half of those receiving support from the programme are women.

Local structures as well as the resources and public services of the chambers of industry and commerce at the district level have been improved. The findings of a business climate study, conducted for the first time in 2013, enhanced public–private dialogue in the target districts and were incorporated into development plans.

Women from a savings cooperative © GIZ

Contact

Gerald Duda
gerald.duda@giz.de