Appendix
DFID's Economic Development Strategic Framework
and Nepal
This note sets out a brief account of examples of
DFID's work in Nepal on economic development, mapped out against
the pillars of DFID's global Economic Development Strategic Framework.
It complements the briefing provided in the main briefing pack
for members of the IDC. It does not include the work of multilateral
institutions, other than PIDG, that are funded by UK capital contributions.
Pillar 1-Improving international rules for shared
prosperity
· DFID's
multi-country Trade Advocacy Fund supports poorer countries to
strengthen their analytical and negotiating capacity. Nepal is
a key beneficiary country (Centrally managed).
· Joint
DFID and FCO engagement with Nepal partners in Kathmandu, given
its influential role amongst LDCs, about World Trade Organisation
negotiations (Non-financial).
· Joint
DFID and FCO engagement with Nepal partners in Kathmandu about
international climate change negotiations (Non-financial).
· Supporting
Government of Nepal's National Adaptation Plan of Action (Bilateral,
National Climate Change Support Programme).
Pillar 2-Supporting the enabling environment for
private sector growth
· Supporting
a stable macro-economic environment conducive to growth through
our work with the Central Bank of Nepal to strengthen its oversight
of all major financial institutions in Nepal (Bilateral, Accelerating
Investment and Infrastructure in Nepal or AIIN).
· Promoting
open and inclusive economic institutions e.g. by helping to cut
red tape at border posts on the Indian border (Centrally managed)
and helping the Securities and Exchange Board of Nepal to better
regulate its nascent equity market (Bilateral, Access to Finance
programme or A2F).
· Building
better conditions for infrastructure investments by improving
the regulatory environment in the power sector and ensuring maintenance
of road assets is a policy priority (Bilateral, AIIN and the
third phase of the Rural Access Programme or RAP3).
Pillar 3-Catalysing capital flows and trade in
frontiers markets
· Increasing
private investment into poorer countries, including Nepal, through
CDC. CDC has been actively scoping opportunities in Nepal, including
through regular interactions with DFID Nepal, for the last 12
months (Centrally managed).
· Improving
the provision of infrastructure that is critical for growth and
trade, through PIDG's InfraCo Asia work to support a medium-size
hydropower project, Kabeli-A, involving co-financing from IFC
and others (Centrally managed); the Public Private Infrastructure
Advisory Facility support to pre-feasibility work on the Fast
Track Highway project between Kathmandu and the Indian border
(Centrally managed) and DFID Nepal technical assistance
to the Investment Board of Nepal on mega-hydropower (Bilateral,
AIIN).
Pillar 4-Engaging with businesses to help their
investments contribute to development
· Encourage
businesses to invest more, and responsibly in Nepal through our
assistance to getting the first dedicated equity fund (and impact
investment fund) for Nepal, The Dolma Impact Fund, launched in
September 2014 (Bilateral, A2F).
· Supporting
businesses to innovate in the vocational skills sector, by developing
a results-based approach to financing training of young people.
Final tranche of payment is contingent on verifying placement
of graduates into minimum wage-earning jobs in the formal and
informal sectors (Bilateral, The Employment Fund).
· Supporting
domestic and international businesses operating in Nepal to share
views with and hear from Government about the main priorities
affecting business activity in Nepal through the Nepal Business
Forum (Bilateral, AIIN).
· The
global SPRING programme, funded by DFID, USAID and Nike Foundation,
to support early-stage businesses develop products and services
for poor adolescent girls will roll out to Nepal towards end 2016
(Centrally managed).
Pillar 5-Ensuring growth is inclusive, and benefits
girls and women
· Improving
physical access of poor people to markets. DFID's investments
in rural roads in Nepal in the last 14 years has led to 1000km
of roads getting built or improved and 14 million person-days
of employment being generated for local communities, including
women (Bilateral, Rural Access Programme).
· Improving
access of poor people to agricultural and tourism markets. DFID
is working with i) farmers, including from the most socially excluded
groups, like Dalit farmers rearing and selling pigs and ii) family-run
businesses in remote hilly or mountainous regions to boost their
incomes by developing agricultural and tourism markets (Bilateral,
Nepal Market Development Programme).
· Improving
access to finance for both poor women and men, including by supporting
savings groups, improving financial literacy and tackling the
specific needs of those physically excluded from mainstream credit
like poor farmers in the Mid and Far West Regions (Bilateral,
A2F).
· Increasing
employment opportunities and access to jobs for poor women and
men, by providing jobs-based skills training through the private
sector. In 2013, more than 7000 women were trained and placed
in jobs (Bilateral, The Employment Fund).
· New
work to support improvements to the business environment will
generate analysis of and recommendations for tackling the barriers
affecting women entrepreneurs and women-led businesses (Bilateral,
AIIN).
DFID Nepal
February 2015
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