Development partners share the stated vision of the Government of Nepal which is to achieve all the Global Goals and emerge as an inclusive, equitable, and prosperous middle-income country (MIC) by 2030. In the process of becoming a MIC, we hope Nepal is able to establish robust mechanisms to be able to exit from poverty, using its own resources, within an acceptable timeline and with a low risk of failure and reversal.
With such an ambition, the development sector should flex to respond to the quality of a Nepal’s development trajectory out of poverty informed by critical diagnosis of the bottlenecks. Within this evolution, I suggest a number of potential emerging themes:
- There will be a move from aid to finance development outcomes directly (typically through projects), to more of a focus on demand side technical assistance sharing evidence on global evidence on what works to unlock specific constraints within the social, economic and institutional building blocks of development.
- Overseas Development Assistance (ODA) will become an even smaller share of finance flows. Globally, Foreign Direct Investment, private debt and equity and remittance financial flows to developing countries dwarf ODA. As such, aid in Nepal should aim to more systematically leverage other development finance resources.
- This transition will not be linear, especially given the risks of natural disasters and a changing climate which can undermine and even reverse development. Ensuring Nepal is able to safeguard its progress through adapting to the impacts of climate change and strengthening resilience to disasters will remain a priority.
- Technology and digitization have transformed our world over the last few decades and will continue to do so in the development sector. I expect potentially transformative innovations in the delivery of services / programs, data collection, tracking and monitoring and communications