Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010Table 12.1Implementation of the Five Paris Principles on Aid Effectiveness in Nepal, 2007PRINCIPLES 2007 CHALLENGES PRIORITY ACTIONSOwnershipAlignmentHarmonizationManaging forresultsMutualaccountabilityModerateModerateLowModerateLowEnhancing country capacity and commitmentfor ownership of development plans andprogrammes in the post-confl ict environmentLimited extent to which aid flows are onbudget and to which detailed information ondisbursements is provided to governmentLimited use of programme-based and sectorwideapproachesRelative absence of measurable performanceassessment frameworkLack of mechanism for mutual assessment ofaid effectivenessImplement Poverty Reduction Strategy Paperand Three-Year Interim Plan; establishclearer linkages with the annual budgetGovernment to implement public expenditureand financial accountability action planExtend sector-wide approaches into sectorsbeyond health and educationDonors and government to agree on commonmonitoring and evaluation framework insector-wide support programmesBuild and implement a joint action plan for aideffectivenessSource: OECD, Development Assistance Committee, 2008 Survey on Monitoring the Paris Declaration: Making Aid More Effectiveby 2010, OECD Publications.According to the 2008 Survey on Monitoring the Paris Declaration: Making Aid More Effective, ‘… harmonizationis relatively unadvanced in Nepal. To date, little use is made of programme-based approaches (PBAs) andonly a small proportion of country analytical work is conducted jointly. Some progress has been made in thehealth and education sectors but it needs to be deepened; overall, harmonization needs to be expanded toother sectors.’ 1 The stress put on the use of SWAp as a way to better harmonize interventions by donors andthe need to agree, as soon as possible, on a common monitoring and evaluation framework should be noted.Harmonization of aid delivery procedures and adoption of common arrangements help reduce duplication ofefforts and overlap among interventions and lower the steep transaction costs of managing aid.Aid for Trade InitiativeAid for Trade (AfT) is about helping developing countries, in particular LDCs, to build the trade capacity andinfrastructure they need to benefit from market opening, including through the WTO Agreements. It is partof overall Official Development Assistance (ODA)—grants and concessional loans—targeted at trade-relatedprogrammes and projects.Because trade is a broad and complex activity, AfT is broad and not easily defined. It includes technicalassistance—helping countries to develop trade strategies, negotiate more effectively, and implementoutcomes as well as some infrastructure investment (especially that which benefits trade facilitation and easeof doing business.)The success of the initiative depends on building closer cooperation in national capitals among trade, finance,and development officials. This needs to be matched by closer cooperation at international and regionallevel among intergovernmental organizations with core responsibilities in these areas and their membercountries.Engagement of Nepal’s Development Partners in TRTAThe political changes that have occurred in Nepal since 2006 in Nepal have made it difficult for many Nepalbaseddevelopment partners (DPs) to commit long-term support to a trade development agenda. This isdemonstrated by the relatively low level of implementation of the NTIS 2004 recommendations.1OECD, Development Assistance Committee, 2008 Survey on Monitoring the Paris Declaration: Making Aid More Effective by 2010, OECDPublications.NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT241