Nepal: Governance Support Program (Subprogram I)
sector: Public Sector Management | country: Nepal
Most of the lessons outlined in the program completion report (PCR) are in line with this validation’s findings and need not be repeated. The following lessons need to be modified:
(i) Policy reforms are likely to be more effective if local government bodies and citizen committees are consulted before and during program formulation to synchronize reform outcomes with expectations at the early stage of formulation. For example, fiduciary controls could have been developed on a participatory basis during reform formulation.
(ii) Capacity development should not be based on nominations but on needs assessed before program implementation. Suitable training for village development committees (VDCs) was different from training required by the district development committees (DDCs) and local government bodies. Capacity development requires a more in-depth understanding of the various program components and recipients.
(iii) Service delivery was less effective in some districts because of varying reasons beyond public financial management alone. These issues need to be addressed beyond the scope of program loan/grant modality.
(iv) The Governance Support Program-Subprogram 1 (GSP 1) confirmed that political stability is crucial for the delivery of services and greater decentralization of governance initiatives.
This validation offers two additional lessons. First, in complex program loans that attract multi-donor support, a framework for cooperation should be agreed upon in advance-in addition to any conditions that each donor might enforce independently-before operations begin. This was a positive lesson under the GSP. Second, the design and monitoring framework of similar programs should be more results- oriented with indicators spelled out for monitoring outputs and outcomes.