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were not made clear; this was complicated by poor coordination
between different government agencies and inadequate fiscal
transfers to local authorities;
• Low capacity of local bodies, including weak revenue- generating
capacity at the local level;
• Lack of proper supervision, monitoring and auditing of local bodies,
and;
• Increased conflict and insecurity after the implementation of the
decentralization act in 1999.
5.7. Way forward
For the effectiveness of public service delivery in Nepal, the following reforms
and innovations are essential:
• A holistic approach for effective PSD with the provision of relevant
pro-poor policies and their effective implementation are necessary.
This can be done when the excluded groups are well represented and
participate effectively in the political system to change the outcome in
their favor. Unless society eliminates its exclusionary practices, state
transformation can do little to help individuals feel free to develop and
use their capabilities to the fullest extent possible.
• The political system and state structure need change. Such change
and progress requires peace. In short, ending inequality depends in
large measure on political inclusion, whose prerequisite is peace. The
ultimate need is both a democratic state and a democratic society.
Ending exclusion through fair representation and participation in the
political system can enlarge options and thus enhance empowerment.
In this context, it is obvious that the electoral system, the internal
democracy of political parties, and decentralization have great influence
on representation and participation in the process of democratization
which ultimately enriches inclusive development.
• Economic and social policies with a focus on excluded groups are
necessary for improving unequal human development, and attaining
rapid human progress. Targeting basic services including education
and health for women, Dalits and Janajatis together with changes in
other policies is necessary. This social empowerment needs to move
hand in hand with economic empowerment through the provision of
decent employment opportunities.
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