Natural Resources Management Sector Concept - CH

SWISS AGENCY FOR
DEVELOPMENT AND COOPERATION
SDC
COUNTRY PROGRAMME FOR NEPAL
1998-2004
Natural Resources Management
Sector Concept
Approved 28 July 1999

Abstract
Natural Resources Management (NRM) is one of
three sectors of the SDC Country Programme
(CP) for Nepal for the period 1998 - 2004. This
NRM sector concept is mainly a working
instrument for the co-ordination off ice (Coof) of
SDC, but also a reference and guide for decisionmakers
at SDC headquarters. It contains
information for SDC and its partners which can
help them to identify, develop, execute and
monitor NRM projects in Nepal.
SDC's vision for a more sustainable NRM in
Nepal is a "triple-win" situation, that
simultaneously involves income generation
(economic "win") from well-managed natural
resources (ecological "win") with an effective
sharing of benefits (social "win") SDC's sector
objective therefore combines a people-centred
Benefit from well managed natural resources.
approach with a focus on ecological sustainability:
Livelihoods of families of small farmers are made more secure through the sustainable management of natural
resources; at the same time, Nepal's natural heritage is protected.
Swiss experiences in the NRM sector of Nepal since the 1950s show that continuity and long-term engagement
can lead to sustainable impacts. Only a mix of local and national level support provides access to highly diverse
NRM experiences. Only a mix of conceptual clarity and operational flexibility can meet changing needs. And
finally, technical assistance needs to be well focused.
SDC's involvement must conform to some important principles. Economic, social and ecological aspects of
NRM are considered simultaneously. Highly dynamic natural and livelihood systems require operational
flexibility, e.g. through support of institutional pluralism and simultaneous use of indigenous experience, as well
as through a constant adaptation of the programme, projects and activities. Social justice, equity, poverty
orientation, and gender balanced development assure that all stakeholders can benefit from NRM and thus
maintain a vital interest in NRM. Considering different stakeholders means managing both synergies and
conflicts among them, while the use of subsidies and incentives is reduced as far as possible. The present
geographical focus in the mid hills north-east of Kathmandu may be supplemented by a shift to the mid- and far
western regions in the years to come.
SDC support of NRM activities should be driven by demands coming from concerned stakeholders, such as
the rural population and local bodies. SDC supports coordination and synergy among the central government
(HMG), the cilvil society, the private sector and other donors organisations. The first step in orienting NRM
activities towards local needs is to select relevant stakeholder groups, identify their interests and roles in NRM,
and explore potential partnerships with SDC.
The NRM sector needs a holistic approach involving people- and resource-centred action. Activities are
traditionally undertaken in four resource management domains: agriculture (mainly private resources), forestry
(mainly communal resources), natural heritage management (mainly national/public resources), and integrated
water management (a mainly communal or public resource). However, any activity in each of the domains must
establish its links and synergies with other domains, and with other CP sectors.
In order to adapt the programme gradually to a changing situation, the Coof monitors and assesses changes on
a regular basis. The challenge is to develop an impact monitoring procedure - rather than performance
monitoring that is integrated into existing SDC and project operations without creating unnecessary additional
paperwork. If monitoring at the project level includes meaningful indicators and procedures, the results can also
be easily used at the Coof level. The Coof must assure that the combined efforts of its projects and activities are
a contribution towards more sustainable NRM. It plays the role of an institutional memory bank of SDC's
activities in Nepal beyond the projects' lifetimes.
SDC Nepal/NRM Sector Concept 1

1 The Natural Resources Management Sector
The NRM sector concept
Natural Resources Management (NRM) is one of three sectors of the
SDC Country Programme (CP) for Nepal for the period 1998 2004.
The NRM sector concept is mainly a working instrument for thee
Co-ordination office (Coof) of SDC. Moreover, it serves as a
reference and guide for decision-makers at SDC headquarters and
contains information that helps partners of SDC to identify, develop,
execute and monitor NRM projects in Nepal. This concept is based
on and specifies the CP; it is not a repetition of the CP.
Natural resources - or the natural heritage - are, on the one
hand, one of the major assets of Nepal. The country has fertile
soils and a great variety of agricultural, horticultural, livestock,
fishery and forest products, marvellous mountain scenery, rivers
and landscapes, and a great biodiversity of both fauna and flora.
On the other hand, the pressure on natural resources is
increasing as degradation processes result from over-utilisation
of land and resources, triggered, for example, by a growing
population, unclear usufruct rights, and migration.
More than 90% of Nepal's population lives in rural communities
and about 85% is involved in land use activities at least parttime.
Their complex livelihood-systems are characterised by
combined income generation, partly from farm and forest
management, partly from offfarm work as traders, artisans, or
migrant labourers. Despite this, livelihood is still highly
dependent on the quality of important natural resources: water,
soil, and biodiversity. Smallholder families have to manage
farms of often less than 0.5 ha at subsistence level, while
landless farm workers and forest users can only get access to
natural resources through common property resources or
employment on a farm. The prevailing economic strategy is risk
minimisation, and the choice of alternatives for the rural
population is small. Men are forced to migrate and look for off -
farm opportunities, which puts a heavy burden of work on the
remaining wq en household heads. Under such circumstances,
a short-term perspective could drive NRM, undermining the
long-term aspects of sustainability. More and more users
compete for increasingly scarce resources, thus putting the
basis of their livelihood at risk.
Management Domains
Agriculture
(mainly private resources)
Forestry
(mainly community resources)
natural heritage management
(mainly national resources)
Integrated water management
(mainly communal or public resources)
Natural Resources
water soils plants
& plant
products
animals
& animal
products
ecosystems
&
landscapea
2 Sustainable NRM requires holistic thinking SDC involving Nepal/NRM people- Sector Concept and

Sustainable NRM requires holistic thinking involving people- and
resource-centred action. A more sustainable NRM basically seeks
to harmonise the complementary but often conflicting goals of
production and environmental protection. NRM involves
competition and complementarity between management domains.
For example, community forestry interferes with agricultural
interests, and protecting biodiversity in national parks competes
with agricultural and forestry interests in the same area.
Therefore, one important part of NRM is managing competitive
demands, harmonising evolving conflicts over natural resources,
and searching for an optimal share of benefits among the
stakeholders. Another important part is exploring potentials and
synergies between the management domains. A well-managed
forest, for example, can satisfy much of the demand for energy,
fodder, medicinal plants, and manure to improve cropland, while
simultaneously harbouring wildlife and increasing the
attractiveness of the area. The central question for NRM is not
how to preserve nature in a pristine state but how to co-exist with
nature in order to maintain the functions of natural resources for
the benefit of society in a sustainable manner.
SDC's vision
is a triple-win situation, involving three aspects of sustainable NRM:
Economically, stakeholders are in a position to satisfy their needs
and generate additional income from well-managed natural
resources. This increases their flexibility to react to changes, and to
gradually shift from a subsistence to a market-oriented economy.
Socially, an effective sharing of benefits is established. It involves
local people, their social networks and institutions, as well as other
relevant stakeholders in the decision-making process. Thus it
assures that benefits from NRM are shared, and no social group is
marginalised.
SDC will mainly support programmes,
which allow to achieve simultaneously
economic, ecological and social benefit.
Ecologically, natural resources are managed in such a way that
degradation is minimised, their quality is improved, and their
potential for careful utilisation s increased.
NRM cannot be efficient and sustainable unless it is linked with the
development of social life, and supported by education and
awareness creation under enabling policy conditions. Parallel, the
development of economic opportunities is necessary beyond
agriculture and forestry, such as processing industries or tourism.
Watching out for synergies and conflicts is not only important within
the NRM sector - between the management domains of agriculture,
forestry and natural heritage management. Links must be found
between other sectors, particularly those of the CP - NRM,
transport, and occupational skills/enterprise development (OSED) -
as well as with the transversal themes and programmatic thrusts of
the CP. The transport and OSED sectors have the potential for
ecologically sound use of natural resources, but they also harbour
the risks of economic exploitation and resource degradation.
SDC Nepal/NRM Sector Concept 3

2 Experiences and Lessons Learned
Swiss NRM experiences in Nepal began in the 1950s with inputs in
agriculture and forestry. The present working style, approaches, and
choice of projects reflect these experiences in the form of institutional
memory. Four major lessons learned can be distinguished:
Continuity and long-term engagement lead to sustainable
impacts
The most positive and long-lasting impacts on NRM have been
achieved in sectors where SDC worked for 10 years and more: for
example, in improved food production (potato production, cheesemaking)
and in participatory forest management (community forestry).
A mix of local and national level support provides access to
highly diverse NRM experiences
Successful approaches combine grass-roots level activities at selected
sites (technology development, action-research, capacity-building) with
a simultaneous policy dialogue that seeks to develop and implement
conducive policies and strategies in order to influence the
socioeconomic, political, legal and institutional framework that affects
N RM. Different stakeholders have different perceptions of NRM and
diverse experiences in handling NRM problems. But farmers cannot
solve resource degradation with their technologies alone, nor can
policy-makers on their own with improved NRM legislation. Combining
the specific experiences and Comparative advantages of all
stakeholder groups, and making the best use of the synergies evolving
from this type of participation, is the most promising choice for
sustainable NRM.
Only a mix of conceptual clarity and operational flexibility
can meet changing needs
On the one hand, a clear concept documented in the country
programme and sector concepts guarantees that projects are designed
in a complementary manner, synergy is optimally used, and relevant
"core" issues are tackled at the same time. On the other hand,
operational flexibility allows SDC and its partners to respond to new
opportunities triggered by changes in the economic, policy, legal,
institutional and environmental context of Nepal.
Technical assistance needs to be well focused
As a result of increasing Nepali expertise and know-how available in
NRM, the number of expatriates has diminished and their role is
changing. Expatriate advisors can now assist, for example, in
conceptual questions, networking, planning-monitoring-evaluation,
providing international links, and act as mediators between Nepali
stakeholders when collaboration is threatened by conflicts.
Photo: F. Berger
Cheese factory supported by Switzerland
in the fifties
4 SDC Nepal/NRM Sector Concept

3 Paving the Way for Sustainable NRM
Photomonitorin,Z Erosion Boach.
Photoes: Ch. Kuechli
On a general level, the 9 th 5-Year-Plan, the National Conservation
Strategy, the Master Plan for the Forestry Sector, and the Agricultural
Perspective Plan of His Majesty's Government (HMO) are setting the
priorities, objectives and strategic guidelines for development activities
in Nepal. From the SDC side, the frames of reference are the Country
Programme for Nepal (CP 1998-2004), as well as the available SDC
sector policies. Taking the complex character of NRM into account,
SDC's sector objective combines a people-centred approach
(production, income generation) with a focus on ecological
sustainability:
The NRM sector objective of SDC
Livelihoods of families of small farmers are made more secure
through the sustainable management of natural resources; at the
same time, Nepal's natural heritage is protected.
The nature works together with the
farmers in healing wounds
1986
1985
Sustainable NRM is a long-term goal and involves an adaptable and
flexible NRM concept. Paving the way for such a concept starts with
the identification of the NRM core issues relevant to Nepal (3.1) and
considers the stakeholders involved (3.2), and their interests,
potentials and limitations with regard to NRM. Based on the sector
objective and the lessons learned, principles (3.3) and possible
activity lines (3.4) indicate how to put the general guidelines of HMG
and SDC into practice. Future options will evolve through permanent
controlling and monitoring 1986 of the changing situation and tracing
the results and impact of SDC's activities, projects and programmes
(3.5).
3.1 NRM Core Issues
The so-called "core issues" of NRM indicate where to concentrate
development activities. Core issues consist of urgent resource and
management topics, and indicate potentials to be strengthened (e.g.
preserving biodiversity, improving soil fertility) as well as problems to
be solved (e.g. managing soil erosion). The following brief description
reflects the 1998 situation, and must be critically reviewed over time
(the sequence does not imply any priority).
Water management
Rainfall as well as river water must be harvested and retained to
reduce soil erosion during the Monsoon and to avoid water shortages
during the dry season. Increasingly competitive water abstractions
have to be managed sensibly.
Soil fertility management
To increase crop production without affecting biodiversity, soil
degradation needs to be tackled and soil fertility improved.
Integration of plant and animal management
Crop and livestock management, forestry, and management of the
natural 1995 heritage (fauna and flora) need to be addressed in a
more integrated approach, in order to meet the growing demand for
food, fodder and fuelwood.
SDC Nepal/NRM Sector Concept 5

Protection of ecosystems and landscapes
Protecting marvellous landscapes and biodiversity as part of the
natural heritage is considered an important asset and potential for
additional benefits to the country as well as to local communities.
Legislation regarding access to and marketing of natural
resources
Nepal's agroecological diversity offers a number of niche markets
for special natural resources products. However, prevailing policies
and practices of land ownership and usufruct rights, as well as
inappropriate enforcement, discriminate against specific social
groups, e.g. women, ethnic groups, the landless, forest users, etc.
Thus income-generating activities are hampered, which leads to
poverty, migration, haphazard urban growth, degradation of natural
resources and encroachment into parks and forests. Policy
improvements, as well as infrastructure and market development,
could be incentives for increased and diversified production, and
allow for more equitable sharing of the benefits. This would further
help to keep qualified and skilled people in rural areas.
3.2 Principles of SDC's Involvement
Considering all aspects of sustainable NRM simultaneously
Sustainable NRM can only be achieved if economic, social and
ecological aspects are simultaneously considered under enabling
policy conditions. Ignoring one or two aspects will result in failure to
achieve the goal of sustainable development in the long-run.
Guiding questions: How can sustainable resource use result in
economic benefits? How can these benefits be shared among
stakeholders? How can social networks and institutions be involved
to ensure an optimal share of benefits and efficient resource
management?
Using indigenous experience and supporting institutional
pluralism
People in Nepal have always lived in a delicate balance with nature
and will continue to do so, in a relatively inaccessible environment
characterised by extremes. The dynamism of natural and livelihood
systems has always played a central role in Nepal's development.
Introduction of new crops and farming systems, migration, and
tourism has a long history. There is a wealth of indigenous
knowledge and technologies for dealing with natural resources and
degradation issues, and there is a range of organised interest
groups. Co-operation with different stakeholder groups and
institutions is the point of departure for incremental improvement
towards more productive and sustainable NRM.
Guiding questions: Which stakeholder groups can provide
experience, knowledge and power to improve NRM? What are the
key functions and comparative advantages of each possible partner
in relation to NRM? ,Which are the most efficient institutions and
partners in NRM?
Social justice, equity, and poverty orientation
The use of natural resources rarely results in equal sharing of
benefits or provision of alternative opportunities. It always implies
the possibility of marginalising those groups that are already
disadvantaged, be it due
6

to geographical remoteness, economic deprivation, occupation,
the heterogeneity of the rural population and carefully monitors the
impact of project activities, particularly on disadvantaged social
plays a proactive role through empowerment and affirmative action.
Guiding questions:
How do they depend on NRM, production and marketing? Where do
these groups need special attention with respect to sharing NRM
comparative advantages and experiences in NRM be optimally used
and strengthened?
Women and men have unequal access to natural resources,
education and jobs. They have different labour burdens, and different
natural resources. With respect to NRM, the power of decisionmaking
is unequally distributed between women and men.
into NRM means being aware of the different roles and
responsibilities of women and men in society, and their roles in the
interests, knowledge, skills and experiences in NRM are valued and
considered, and that women benefit from NRM projects at least as
of either gender.
What are the roles and responsibilities of women
and men in NRM (decision-making, division of labour, etc.)? How and
best be valued? Is a project beneficial to both women and men? How
can disadvantages regarding decision-making, workload and access
Which
men?
Considering both synergies and conflicts between NRM
Practically, activities in agriculture (crop and livestock production),
forestry and natural heritage management are difficult to separate
projects may be "located" in one domain but should always seek
synergies with other domains. For example, community forestry must
products (NTFP), and the benefits of biodiversity protection resulting
from eco-tourism must be shared with farmers and forest users in the
complementarity with other sectors (transport, OSED). Conflicts of
interest may arise between stakeholder groups due to competing
livestock into forests and parks, wildlife damaging farmland, predators
affecting livestock, slash-and-burn systems, fertilisers polluting
transparent action. SDC, through its projects, plays the role of a
mediator, creates awareness of potentials and conflicts, and assists
SDC Nepal/NRM Sector Concept 7

Guidina questions: What synergies between projects in different
improve NRM? How can income generation be diversified, taking
account of a variety of agricultural, forest and natural heritage
created? Where are conflicts that require mediation? Which
institutions or partners are efficient in managing the interests of
different stakeholders?
Geographical focus
hills north-east of Kathmandu, where there is a high population
density and related ecological problems. On-going and new SDC
experience that is gained locally is relevant to a wider area. At the
same time, SDC's NRM sector will prepare for a possible shift to the
important criterion for more detailed project site selection.
Guidincy questions:
comparative advantage? Which areas are most in need of improving
NRM? In which area would an expansion allow for a useful
Adapting programme, projects and activities to a changing
Situation
adapted from time to time to the changing biophysical,
socioeconomic, policy, legal and institutional situation. Therefore,
integral parts of the management and controlling procedures.
Guiding questions:
activities need to be strengthened, corrected or omitted? Where are
specific niches for SDCs investment?
SDC supports a policy of reducing - as far as possible - the use of
incentives and subsidies, which have detrimental side-effects or do
Guiding que .- Which incentives and subsidies had or are likely
to have detrimental impacts? How can the interests of concerned
SDC activities be affected if other donors in the area continue to use
incentives and subsidies?
8 SDC Nepal/NRM Sector Concept

3.3 Potential Partners for SDC: Stakeholders and
Their Role in NRM
The challenge of partnership
SDC support of NRM activities should be driven by demands coming
from concerned stakeholders. On the one hand, each stakeholder group
has its own comparative advantages, experience, specific knowledge,
labour, money or political power to contribute to or invest in NRM. On the
other hand, combining potentials and interests in NRM at various levels
is a great challenge, particularly because a number of conflicting
interests need to be managed, too. Apart from some committed and
qualified individuals and offices, there may also be many barriers, such
as an insufficiently motivated workforce, inefficiency, lack of
transparency, patronage, personnel fluctuations, and the seeking of
personal profit. These barriers require specific skills in bringing together
all stakeholders concerned with NRM. Transparency, accountability and
active participation are important conditions for successful NRM. The first
step in orienting NRM activities towards local needs is to select relevant
stakeholder groups, identify their interests and roles in NRM, specify the
relationships of the stakeholder groups to each other, and explore
potential partnerships with SDC.
The rural population
The rural population is a very heterogeneous mix of farmers' families,
the landless, forest users, artisans and others who are directly
dependent on the productivity and the quality of natural resources.
Which groups will be direct partners in development activities
depends on the specific programme, project or activity. The rural
population are the main actors in NRM, by virtue of their simultaneous
use and protection of natural resources. They are the ones who have
the greatest experience in NRM under the given circumstances, be it
cultivating crops, using medicinal plants, logging, or processing and
marketing of goods. At the same time, they often have the least
influence on decision-making, and therefore need empowerment and
support to defend their interests. This is particularly true of landless
stakeholder groups, as they only have access to communal property
resources.
Civil society
Community-based organisations and user groups, local and national
NGOS, co-operatives, and federations represent aggregated common
interests. They can provide services, know-how, management
capacity and advocacy in NRM, and create awareness of NRMrelated
issues. Many NGOs are supply-driven, and there is a lack of
solid, local or traditional organisations that have managed to
transform themselves into modern partner institutions. But many user
associations have also developed into an effective lobbying force and
have become important intermediaries for donor agencies.
Local bodies
Following the local self-governance act, district and village
development committees, as well as municipalities, are expected to
take over more and more responsibilities for environmental planning
and management in their areas. They can co-ordinate resource
management, regulate ownership issues, and assist in resolving
conflicts. Yet during the shift of responsibilities from line agencies to
local bodies, confusion, redundancies and controversies are expected
and outside assistance in capacity-building may be needed.
SDC Nepal/NRM Sector Concept 9

The central government (HMG)
Well-balanced environmental legislation and its enforcement require
the collaboration of central Government institutions. Besides
government affiliated research, training and service institutes (Nepal
Agricultural Research Council, Universities, etc.), three mainline
agencies, the Ministry of Agriculture, the Ministry of Forestry and Soil
Conservation, and the Ministry of Population and Environment, deal
with NRM issues. Despite the decentralisation process, natural
resources remain an important source of income for the state and its
personnel, respectively. This is an important cause of competition and
conflicts among resource users, and therefore requires special
attention.
The profit-oriented private sector
Particularly in the hills and mountains, resource managers, small
businesses and traders, processing industries, tourism, hydropower
plants, consultancy firms, money-lenders and banks are facing logistic
difficulties and a low degree of education as the main limiting factors in
their development. The private sector has a reputation of being more
interested in quick financial returns than in establishing long-term and
sustainable market networks. Besides consultants for specific tasks,
SDC's preferred partners would be resource managers and
investment-oriented entrepreneurs.
Donors and foreign organisations
Bilateral and multilateral donors provide most of the financial resources
for NRM, but, with a great variety of working styles and approaches.
Apart from providing financial support, specialised international
organisations (ICIMOD, IUCN, FAO, UNDP) play an important role as
knowledge banks and centres of excellence. Most agencies work with
or through HMG, while international NGOs often collaborate with
national or local NGOs in selected districts, using their support
structures and channels. Within this crowded scenario, SDC, as a
relatively small bilateral agency, pursues a dual strategy. On the one
hand, it has to look for comparative advantages (e.g. community
forestry programme) and identify niches (e.g. forest products, hill
agriculture for increased income). On the other hand, it supports the
establishment of a neutral forum for NRM which uses the synergy of
international networking, supporting the development of conducive
national policies. Such a forum is actively involved in donor
coordination, and is ready to take the lead where it is needed (cf. 3.5).
10 SDC Nepal/NRM Sector Concept

3.4 Management Domains and Links - A Possible
Focus for SDC
The NRM approach
The NRM sector needs holistic thinking and involves people- and
resource-centred action. NRM reflects operational flexibility, so that
it can appropriately respond to changes in biophysical,
socioeconomic, policy, legal and institutional realities in Nepal.
There is an on-going debate about how to approach complex
realities such as NRM. On the one hand, integrated development
projects, which previously dominated rural development, raised
high expectations and were difficult to manage. On the other hand,
sector-specific projects often focused too narrowly on site-specific
problems. Taking the management problems of integrated projects
into account, projects focusing on specific domains may be
acceptable, if they have an interdisciplinary approach and seek
links with other domains and sectors. In addition, SDC is conscious
of the need to select new projects that complement on-going
activities within an overall framework of sustainable NRM.
Agriculture (mainly private resources)
Starting Point:
The agricultural component is built on the experience of the Potato
Development Project, the FAO Vegetable Project, and integrated rural
development projects (particularly IHDP and the Palpa Development
Project). Currently, it involves the Potato Post-Project Support, the
Sustainable Soil Management Project, the Hill Maize Research
Project and the People and Resource Dynamics in Mountain
Watersheds Project (PARDYP).
Destination:
The focus is on smallholder families and mixed rainfed farming
systems in the mid hills. The shift from subsistence towards marketoriented
agriculture makes it necessary to strike a balance between
focusing on specific products and diversification of crop, livestock and
forest activities. This implies certain trade-offs:
Issues and Links:
(1) Production must be accompanied by protective measures. Soil
fertility management involves maintaining and - if possible increasing
the nutrient status of the soil, as well as soil erosion control. Water
management simultaneously includes water harvesting and safe
drainage of excess water. Maintenance of biodiversity integrates crop
production, livestock and dairy production, vegetable production,
integrated pest management, forestry, and, from the present
perspective, citrus production.
(2) A vital interest of farmers in agricultural production and
protection of their own resources can be kept alive if supportive
aspects, such as transport, marketing, taxation and other policy
issues are addressed at the same time. If the benefits gained through
improved production are lost due to marketing problems, the
protection of natural resources is put at risk again. Access to markets
must be secured through the development of roads and infrastructure.
The development of professional skills helps to create a demand for
diverse production.
SDC Nepal/NRM Sector Concept 11

Forestry (mainly communal resources)
Starting Point:
SDC's engagement in forestry dates back to the 1960s in Dolakha,
Sindhupaichowk, and Palpa, and presently consists of the Nepal-Swiss
Community Forestry Project in Ddlakha, Rainechhap and Okaldhunga.
The strong link between area-based activities and policy dialogue
makes community forestry one of the most successful NRM activities
in Nepal, combining the efforts of HMG, non-governmental
organisations, communities, and private enterprises.
Destination:
Presently, degraded forests produce only a small percentage of What
would be possible with proper management. This unused potential
needs to be explored.
Issues and Links:
(1) An expansion of SDC's community forestry programme is
planned with a temporary focus on protection to re-establish
productivity. A new commitment will additionally focus on production,
processing and marketing of forest. resources. This will include policy
dialogue, technical assistance, and institutional strengthening, and
needs to be supported by road and infrastructure development.
(2) Giving more responsibility to local resource users and
communities may be the best option to protect biodiversity. Forestrelated
income-generating activities, business enterprises, eco-tourism
and supportive occupational training will help to keep qualified people
in the area, and enable particularly the poorest and landless forest
users to share the benefits of NRM.
(3) The forest area can be used to harvest rainwater for the dry
season. At the same time, neighbouring agricultural lands need to be
protected from runoff water.
Natural heritage management (mainly national/public
resources)
Starting Point:
SDC's overall activities have always assigned great importance to
environmental aspects, with emphasis on public resources, such as
national forests, parks, wetlands, rangelands, and the natural and
cultural heritage. In recent years, IUCN has been SDC's main partner
in conservation activities, while collaboration has also been established
with Kathmandu University (Environment Programme). With the
support of SDC, the National Conservation Strategy was developed
and implemented on three levels, with emphasis on capacity-building,
including: (1) environmental law and policy at the macro-level, (2)
awareness creation, environmental education, and environmental
impact assessment at the meso-level, and (3) support for specific
examples of local-level (microlevel) environmental planning and
management. The latter mainly deals with aspects of the "green
environment" and biodiversity in rural areas.
Destination:
Existing activities in this domain should be continued, but focus more
on resource management by the local population. Environmental
concerns cannot be restricted to national/public resources only, but
must be integrated in the management of private and communal
resources at the same time.
12 SDC Nepal/NRM Sector Concept

Issues and Links:
Protection of public resources - the environment - alone is often not
attractive to land users if it does not include short- or mid-term
benefits. Therefore, this domain in particular must seek links and
synergies with other domains and sectors. The following issues are
important:
(1) Protection of national/public resources, i.e. mainly
management of biodiversity and the landscape, needs to be
developed along with the diversity of forest resources and
sustainable farming systems. Potential conflicts around natural
heritage sites with agriculture and community forestry can be
addressed, as in the buffer zone concept (park and people).
Similarly, the potentials and limitations of imposed
conservation in national parks need to be assessed and
compared with voluntary and sustainable management of
NTFP, e.g. under community forestry.
(2) Road construction and infrastructure development are
essential for an improved marketing of agricultural and forest
products. But they also cause environmental problems, such
as huge amounts of runoff water leading to soil erosion, soil
and air pollution, or the spreading of diseases. Thus, strategies
to address these potentially detrimental impacts must be
developed simultaneously.
Integrated water management (a mainly communal or
public resource)
Starting Point:
At present, there are few on-going SDC activities in the field of
integrated water management through PARDYP. Managing water
resources, however, is one of the most important NRM issues in
Nepal. Water problems in the hills are basically characterised by
three aspects.
(1) Excess water during the Monsoon causes soil erosion,
landslides, loss of organic matter, and decline in soil fertility.
(2) Consequences are flash floods, sedimentation of lakes, and
declining water quality.
(3) During the remaining months, increasing water shortages
cause competition and conflicts over this scarce resource.
Destination:
Harvesting and retention as well as distribution (abstraction) of water
are the most crucial tasks. SDC will not become involved in the
development of hydropower plants and large-scale irrigation
schemes. But water issues can be integrated into agriculture, forestry,
natural heritage management and other sectors.
Issues and Links:
(1) Better recharge of aquifers and other water stores leads to
increasing productivity in agriculture, forestry and fishery.
(2) Time spent satisfying daily water needs can be used more
efficiently, for example for intensive horticulture. Improved
water quality and quantity.
(3) Increase the attractiveness of ecosystems and landscapes.
(4) Help to properly address hygienic problems.
(5) Appropriate runoff control reduces the costs of maintaining
roads and infrastructure.
SDC Nepal/NRM Sector Concept 13

(6) Besides assistance in generating the appropriate technologies
in water harvesting and controlled release (agriculture), there
is a parallel need to support water management on the policy
level, by improving ownership, usufruct rights, and controlled
water use by various stakeholders.
3.5 Managing, Controlling and Monitoring the NRM Sector
Establishing an NRM monitoring procedure
The Coof is in need of basic information for planning and decisionmaking
on corrective action, and must assess whether or not projects
and activities eventually contribute to the sector objective. In this
respect, it is not sufficient to generate baseline data and information. In
order to maintain operational flexibility, integrate lessons learned step
by step, and gradually adapt the programme to a changing situation,
the Coof monitors and assesses changes on a regular basis. The
challenge is to develop an impact monitoring procedure - rather than
performance monitoring - that is integrated into existing SDC and
project operations without creating unnecessary additional paperwork.
If monitoring at the project level includes meaningful indicators, the
results can also be used at the Coof level. At NRM programme level,
the task of the Coof is:
(1) together with its projects and their stakeholders, to define
indicators of sustainable NRM,
(2) to assure that old and new projects make complementary
contributions to the sector objective, programmatic thrusts, and
transversal themes, and
(3) to ensure that all projects and project partners define their
monitoring and assessment procedures and indicators properly
in their respective documents and agreements.
The identification of stakeholders and their interests in NRM is a
precondition for participatory monitoring - at both the sector and project
level - All subsequent monitoring steps need to be carried out together
with the stakeholders, such as:
• identification of the core issues, expected results and activities in
the project area, including the assessment of the possible impacts
of these activities (positive and negative);
• identification of relevant sets of indicators and selection of
respective monitoring methods;
• common assessment and management of information that makes
the findings transparent for all stakeholders.
How to monitor
The impacts of development activities on NRM are long-term and may
often become apparent only after a project is phased out. Therefore,
the Coof assures that there is an institutional memory or assumes this
responsibility itself. This is easier if monitoring procedures for all
projects are designed from the beginning in a compatible manner. The
Coof further takes care that procedures and information are well
documented for permanent access by all stakeholders. This will be
important for the midterm evaluation in 2001/2002, in order to assess
where SDC stands in
14 SDC Nepal/NRM Sector Concept

egard to targets and intended changes referred to in the CP. But it
may even be more important for experts or agencies contracted to
carry out post-project monitoring and assessment after 10 or 20
years. The Coof also initiates and guides external and internal
evaluations. The basic instruments for controlling and monitoring the
NRM sector are:
• Existing statistics and studies by government institutions and
NGOs
• Coof controlling
• Project monitoring and impact assessment
• Specific studies, if needed
What to monitor
At the NRM programme level, it will be essential to define sets of
indicators that address the ecological, economic and social aspects of
NRM - not single indicators - in order to answer questions related to
the sector objective, and to see whether programmatic thrusts and
transversal themes are properly addressed:
• Is the management of natural resources sustainable? Possible
indicators include diminishing signs of degradation, increasing
biodiversity, increased income from natural resource products,
and efficient social networks.
• Are the livelihoods of smallholder families more secure? Possible
indicators include surplus food production, increased off-farm
options and income, and a well-balanced workload for women
and men.
• Is the natural heritage being protected? Possible indicators
include reduced encroachment, increased biodiversity, increased
off-farm income for people in the area or the buffer zone, and
diminishing conflicts between park managers and local resource
users.
Answering these questions often requires judgement rather than
objective numerical indications (hard data). Thus it must be assured
that indicators are not only devised by experts. They need to be
combined with the "indigenous" indicators of other stakeholders,
particularly farmers and other local user groups, to reflect different
local views.
The need to co-ordinate complementary activities - the role
of the Coof
SDC wishes to avoid donor-recipient relationships, and instead
promotes the establishment of partner relationships on a professional
basis. At the CP and sector concept level, the main task is therefore
intensified co-ordination, both administratively and thematically, in
four areas:
• within the NRM sector, between SDC-supported projects in the
management domains agriculture, forestry, natural heritage
management, and integrated water management;
• between the CP sectors transport, occupational skills and
enterprise development, and NRM;
• between NRM, transversal themes and programmatic thrusts;
• between donors involved in NRM. SDC is actively involved in
donor co-ordination and ready to take the lead where needed.
SDC Nepal/NRM Sector Concept 15

Information Management
An NRM focus group or informal NRM forum makes it possible to
share experiences, improve co-operation, develop common thinking,
facilitate important decisions, and provide critical and supportive advice
on NRM matters. The forum comprises SDC-supported projects and
the Coot, reinforced by outside experts, as well as representatives of
other donor agencies. In the beginning, regular interactions may
comprise informal meetings, but other options will be explored, such as
an electronic forum for urgent issues, newsletters, or conferences,
where relevant stakeholders can interact. For an optimal interaction
between stakeholders, it is essential that data and information are
available even beyond the life-span of a project. As SDC staff changes
from time to time, there is a need at the Coot level to establish an
"institutional memory" a data and information base (e.g. a metadatabase)
that serves to facilitate decision-making in NRM and as a
reference for future monitoring.
Photo Monitoring Mudhe
Photoes: F. Berger
1997
1998
16 SDC Nepal/NRM Sector Concept

Annex
1. Resource allocation for the CP Nepal (in %, average for 1999 – 2004)
Sectors %
NRM 25
Transport 36
Occup. Skills 23
Other 16
NRM
Transport
Occup. Skills
Other
2. Effective budget of the NRM sector for 1999 - 2004
Year
Mio CHF
1999 4.1
2000 4.7
2001 5.0
2002 6.0
2003 6.0
2004 5.8
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
1999 2000 2001 2002 2003 2004
3 Trends of budget allocation within the NRM sector
1998 2001 2004 1998 2001 2004 1998 2001 2004
Forestry Agriculture Natural Heritage Management
(in CP: “Conservation”)