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Nepal country assistance evaluation, 2003-08 (English)

The FY03-08 evaluation period was one of tumultuous political turmoil, conflict, and dramatic change in Nepal; today, prospects for sustainable peace are brighter, though still fragile. In such difficult and unpredictable conditions, formulating and implementing an effective development assistance strategy and programs were great challenges for development partners, including the Bank. To its credit, the Bank managed to remain constructively engaged in Nepal despite a challenging political and security context and has achieved some significant results on the ground. Nevertheless, the Bank's strategy was poorly adapted to the country's conflict situation and political instability, and until recently (FY08) underwent little adjustment in response to the rapidly-evolving conditions on the ground. Looking forward, Independent Evaluation Group (IEG) recommends that International Development Association (IDA) introduce greater realism into its strategy and program design and keep these flexible against a backdrop of a clear long-term vision, applying frequent course corrections in response to changing circumstances and consulting widely with national stakeholders and development partners. Other than through its existing portfolio of two hydropower projects, International Finance Corporation (IFC) did not make a significant contribution to Nepal's development over most of the review period. IFC's gradual re-engagement beginning in 2006 was successful, resulting in two Global Trade Finance Program (GTFP) investments, an investment in a domestic airline in 2008, a pipeline of investment projects in the financial sector, and a constructive dialogue with the government on the business climate.


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    South Asia,

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    Nepal country assistance evaluation, 2003-08

  • Keywords

    rural water supply and sanitation;access to safe drinking water;social inclusion;access to basic service;Agriculture;economic and sector work;Rural Water and Sanitation;public expenditure management system;monitoring and evaluation system;access to health service;development partner;education and health;political instability;Public Financial Management;rural area;poverty reduction goal;medium-term expenditure planning;central government department;financial sector restructuring;disparities in access;Civil Service Reform;quality of public;Access to Education;quality of education;institutional development impact;peace and development;essential health care;remote rural area;affirmative action policy;improvement of health;Business Enabling Environment;political economy considerations;quality and efficiency;government reform program;Public Finance Management;impact on poverty;improvements in access;Effective Development Assistance;political turmoil;review period;social exclusion;Basic Education;budget support;social improvement;domestic airline;constructive dialogue;Rural Poor;evaluation period;investment climate;security situation;subject line;social disparities;social disparity;agricultural growth;Rural Growth;investment environment;national stakeholder;Sanitation Services;broad consultation;budgetary process;capital spending;living condition;fiscal space;constituent assembly;employment growth;economic reform;agriculture sector;Macroeconomic Management;economic liberalization;subsistence agriculture;dramatic change;sustainable peace;rural environment;conflict situation;state bank;financial deepening;government's policy;commercial bank;political program;rural issue;lagging region;income inequality;social indicator;income poverty;improved environment;government ownership;poverty status;Natural Resources;democratic institution;democracy movement;peace agreement;effective strategy;annual variations;lending scenario;environmental conservation;management outcome;landlocked country;public resource;poverty impact;economic superpower;raise awareness;improving governance;outcome targets;Business Climate;governance objective;environmental issue;fragile states;bank lending;political environment;political stability;productive partnership;adverse consequence;small-scale irrigation;health post;private good;Government Accounts;private investment;hydropower generation;financial statement;governance issue;financing access;sustainable access;diagnostic study;political interference;local bank;public health;



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Nepal country assistance evaluation, 2003-08 (English). IEG Fast Track Brief Washington, D.C. : World Bank Group.