Countries and Regions

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p. 4 of 20 BACK | NEXT I. Country Performance Assessment A. Economic Performance Assessment B. Poverty Assessment C. Assessment of Socio-Environmental Performance D. Governance: Sound Development Management E. Implementation Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Nepal : I. Country Performance Assessment

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C. Assessment of Socio-Environmental Performance

1. Gender Issues

17. Women in Nepal are deprived and severely underprivileged in rural areas. Nepal ranks 119th among 143 countries in UNDP's 1998 gender development index (GDI), published in 2000. The maternal mortality rate of 539 per 100,000 live births is one of the highest in the Asia and Pacific region. The gender empowerment measure, which reflects women's participation in economic, political and professional spheres was 0.191 in 1996 for Nepal, well below the average of 0.367 for developing countries in that year⁷. Gender disparity persists in educational attainment, health status, and participation in the decision-making process. Disadvantaged castes and ethnic communities show higher levels of gender disparities in education. Enrolment levels show a severe gender gap in school attendance. While efforts are being made to improve the status of women, the Constitution and subsequent legislation on citizenship do not treat women equally. Women are treated unequally under inheritance laws. Women also suffer from trafficking and domestic violence. While women have made substantial gains in education, and the female literacy rate has risen from 4 percent in 1971 to 24 percent in 1996, the gender gap in terms of the percentage of graduates at various educational levels is rising. Efforts have been made by the Government to close the gender gap as well as to improve the status of women through various development programs and activities funded by bilateral and multilateral donors. However, the results of these efforts are likely to remain limited unless the gender bias in the social system is reduced, if not eliminated.

18. The National Planning Commission (NPC) and the Ministry of Women, Children and Social Welfare (MWCSW) are the two organizations responsible for mainstreaming gender issues. The NPC has a women's division mandated to review programs and projects from a gender perspective. The MCWSW, created in 1995, is the lead agency and focal point for women's development with a mandate to coordinate gender activities of sectoral line ministries. MCWSW focuses on advocacy and sensitization and has been working for legislation to ensure women's rights and legal reforms to eliminate discrimination against women. Some of the outcomes include amendment of the laws concerning property rights and formulation of the new Domestic Violence Act. MCWSW is currently reviewing all laws and planning to draw up a new Family Code and Juvenile Code. MCWSW recently launched a women empowerment program called Jagriti (awakening) in all 75 districts of the country with a focus on women's social and economic development. This is the first time that the Government has allocated a separate budget advancing the interests of women, demonstrating a strong of national commitment

2. Human Development

19. Social indicators in Nepal remain weak. However, for countries starting from a low level of human development, Nepal recorded one of the fastest rates of progress in its human development index from 1975 to 1998, with an absolute change of 0.183 (or 63 percent, as reported in UNDP's 2000 Human Development Report). Some improvement has been made over the past decade with a reduction in the total fertility rate from 5.3 in 1981 to 4.6 in 1996, and infant mortality rate from 156 per 1,000 live births in 1974 to 75 per 1,000 live births in 1998. These figures are still high in comparison to countries of similar income level. While the adult literacy rate has increased at an average rate of about 1.0 percent per year in recent years, the vast majority of the adult population in rural areas is illiterate. About 71 percent of the population have access to safe water and only 16 percent of households have sanitary facilities

20. Reducing the incidence of poverty, slowing the population growth rate, and achieving good governance are three crucial issues in human development in Nepal. Spending on social services (education, health, and drinking water) has increased as a share of total spending during the 1990s. In FY2000, social service expenditures accounted for 23.9 percent of total expenditures and are budgeted to increase their share slightly to 24.5 percent in FY2001. Public expenditure on education at 2.4 percent of GDP in FY2000 was still below the average in countries with low levels of human development. Public expenditure on health also remains at a low level accounting for 0.9 percent of GDP in FY2000.

21. The Government has ratified the UN Convention on the Rights of the Child and has taken steps to eliminate child labor. The Labor Act of 1992 and the Children's Act of 1992 have clearly defined, regulated, and prohibited employment of children using a number of provisions. The Government has also formulated a ten-year National Program of Action for Children and created a Child Welfare Board at the national and district levels.

22. Out of 6.23 million children aged 5-14 years, some 42 per cent (2.6 million) regularly work while 37 per cent do not work and attend school and about 21 per cent are idle or otherwise engaged. The number of working children is higher among girls, whose work participation rate is estimated at 48 per cent, which compares with 36 per cent for boys. While the proportion of economically active children declined from 1981 to 1991, boys benefited more than girls did from this transition, as indicated by the increased school enrolment of boys. Of all working children, some 61 percent go to school. A much higher proportion of girls do not go to school. The mountain zones have the highest work participation rate of children (52.2 percent) followed by the middle hills (45 percent) and terai (36 percent). With regard to the development regions, the highest work participation rate is found for the Midwestern development region (50 percent), followed by the Far Western region (49 percent)⁸.

23. Although Nepal has long had laws prohibiting all forms of slavery, a system of bonded laborers based on debt obligations to a landlord-known as Kamaiyas-continued to be practiced, mainly in several Western districts. Despite a lifetime of work, these debts are seldom repaid, and the obligation to work is passed on to the debtor's descendants. In 1993, the Government estimated that approximately 14,000 families were bonded laborers and more recent estimates place that figure as high as 40,000 families. On 17 July 2000, the Government announced the decision to outlaw the practice of bonded labor, emancipating the Kamaiyas and waiving their debt obligations that kept them bound to their landlords. Under the new restrictions, keeping a laborer against his or her will is an offense punishable by 3 to 10 years in prison.

3. Environment

24. Nepal's natural resource base is under increasing pressure. High population growth, poverty, and environmental problems are all linked to the degradation process perpetuated by slow economic growth. Soil erosion, deforestation, and degradation of the natural ecosystem and its biodiversity, together with air and water pollution and lack of proper sanitation and solid waste disposal in the urban areas, are among Nepal's major environmental problems. The poor rely on the overexploitation of the country's natural resources for their survival, including cultivation of marginal lands and uncontrolled fuelwood collection, and this increasing pressure coupled with rapid population growth contributes to further decline in labor and soil productivity, which in turn is the main factor contributing to poverty and further environmental degradation. To achieve sustainable development and preserve its natural resource base, the country must therefore break this vicious circle by effectively addressing poverty, high population growth, and ecological imbalances in both rural and urban areas.

25. Recognizing the crucial importance of proper environmental management and the effective implementation of the existing environmental policy and legal framework, the Government has, in the last decade, taken important steps towards a more systematic approach. Policies to protect the environment were included under the Seventh and Eighth Development Plans and in the National Conservation Strategy and Nepal Environmental Policy and Action Plan, which were prepared in 1988 and 1993, respectively. In addition, a comprehensive process to establish and operationalize an Environmental Impact Assessment system was undertaken. In 1993 the Environment Protection Council was created and the Ministry of Population and Environment was established in September 1995. The Environment Protection Act was approved at the beginning of 1997 and, more recently, the Environment Protection Regulations were approved by the Cabinet.

26. These legislative developments are significant institutional steps towards improved enforcement and overall effective implementation of environmental policies. Environmental management in Nepal has reached a crucial point and three factors will now play a decisive role: (i) the level of commitment and ownership at the highest institutional and political levels; (ii) the sustained capacity to enhance inter-agency coordination and government-nongovernment cooperation in undertaking and implementing environmental programs; and (iii) the degree to which continued, coordinated, and streamlined external assistance will be able to effectively assist the country in achieving its main environmental objectives.

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