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LESSONS:

Nepal: Country Partnership Strategy 2010-2012 Final Review Validation

| country: Nepal

1. Simplicity needs to be balanced with a strategic focus on development results. One of the principles the country partnership strategy espoused was to keep things simple, yet it included a strategic architecture with four pillars, six sectors, 24 subsectors, six themes, and three screening tools. This apparent inconsistency was not a weakness, as simplicity is not an end in itself. What is more important is that future efforts need to address binding constraints to achieve desired development outcomes. [Executive Summary, page iii; Main text, para. 92(i)]

2. Insufficient power sector response. The power crisis has disrupted the workings of the government, when the population needed to see that the government could perform to rebuild confidence. The country partnership strategy declared that ADB would be flexible in its response to the country’s needs, but there was no emergency response to the crippling power situation. [Executive Summary, page iii; Main text, para. 92(ii)]

3. Policy reform overload. While reforms were needed, political volatility and a focus on more fundamental political issues crowded out attention to the more developmental reforms. In retrospect, this could have been anticipated and a more focused policy agenda supported. [Executive Summary, pages iii-iv; Main text, para. 92(iii)]

4. Program implementation. The solution to improving portfolio performance has generally been to intensify supervision. There does not seem to have been any restructuring (or cancellation) of projects that were not working or were excessively complex to begin with. [Executive Summary, page iv; Main text, para. 92(iv)]

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