Project description

Title: Promoting Socially Balanced Economic Development
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Nepal
Lead executing agency: Ministry of Industry (MOI)
Overall term: 2008 to 2011

Context

Nepal is one of the poorest countries in the world. Political instability and prolonged social and ethnic conflicts have had a negative impact on economic development in the country. This has resulted in unequal regional development, particularly in rural areas. Other factors standing in the way of economically and socially balanced growth include poor governance, a lack of willingness to implement reforms, insufficient strategies for promoting employment and tackling unemployment as well as a generally poor investment climate.

Objective

The framework conditions for balanced and socially fair economic growth are improved in selected regions.

Approach

The programme supports cooperation between private sector and civil society actors and representatives from the public sector to jointly develop and implement regional/local economic development strategies and action plans. In economic sectors established together, support is given to economic actors at all stages of the respective value chain to help them improve their competitiveness. At the same time, measures are integrated into this process to provide disadvantaged groups as well as women and unemployed young people with sustainable employment and income perspectives.

In addition, the institutional capacities of local chambers of commerce and industry (CCIs), cooperatives and other service providers are strengthened. This enables them to provide appropriate, practical training and advisory services.

Banks and microfinance institutions are also supported in developing financial services that meet the needs of micro, small and medium-sized enterprises (MSMEs).

Results achieved so far

In collaboration with local CCIs, the project has established One Stop Shops (OSS) in four districts to provide information and advice on setting up a business. In an OSS people are able to complete all the necessary bureaucratic and administrative procedures quickly and transparently under one roof. Over 900 people have already used OSS services.

In order to support the government’s Youth and Small Enterprise Self-Employment Programme, which targets young people and disadvantaged groups in particular, the project ran training sessions for 74 trainers in 59 local CCIs to provide them with the skills needed to advise applicants more specifically. The CCI can now draw on a pool of qualified trainers to help implement its own business support programmes too.

Particularly disadvantaged population groups in two districts have been integrated into local economic life. Through association and cooperative activities focusing on marketing issues, 80 members of the Chepang community (including 25 women) are now successfully involved in the beekeeping and honey collection industry. Nine members of this group are now working full-time in the honey value chain. Their cooperative has developed contacts with honey traders in Kathmandu and this has ensured that there is a market for their product. In addition, 500 landless households (around 3,000 people) are benefiting from an income-improving measure that uses riverbanks to grow vegetables.

In six districts, discussion forums have been held for regional actors. Round tables on social and economic development in the region were organised under the direction of local CCIs and cooperatives.

Further information

• Local website of the programme
  The Inclusive Development of the Economy (INCLUDE) Programme. Promoting Socially Balanced Economic Development
  http://www.includenepal.org