COUNTRY PRESENTATION NEPAL

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Strengthening the Development Results and Impact of the Paris Declaration through work on Gender Equality, Social Exclusion and Human Rights London, 12-13 March 2008 Workshop Jointly Organized by: United Kingdom's Department for International Development (DFID) the WP-EFF and the DAC Network on Gender Equality The Budget as a tool for Ownership, Results and Accountability, as well as Alignment COUNTRY PRESENTATION NEPAL Presented by: Dr. Chandra Bhadra, Associate Professor, TU & Mr. Krishna Hari Baskota, Joint Secretary and Coordinator, GRBC Ministry of Finance, Nepal

GRB Initiatives in Nepal In Nepal Ministry of Finance (MoF) has initiated A Gender Responsive Budget from the Fiscal Year 2005/06. In the Ficial Year 2006/07 the Government has Emphasis on institutionalization of gender-responsive budget. To institutionalize the GRB, MoF has established Gender Responsive Budget Committee (GRBC) in August 2005. In this current fical year 2007/08 the Government has formalized the Gender Responsive Budget incorporating five indicators in its computerized system; where it is evident that 11.3% of the budget is 'directly gender responsive', 33.16% is 'indirectly gender responsive' and 55.54% is 'gender neutral'.

Gender Responsive Budget Committee, Nepal Joint Secretary, Budget and Program Division, Ministry of Finance Coordinator Representative, National Planning Commission Member Representative, Ministry of Women, Children and Social Welfare Member Representative, Ministry of Local Development Member Representative, UNIFEM, Member Under Secretary, Budget and program Division, Ministry of Finance Member Secretary

Scope of Work of GRBC To Review and monitor the patterns of budget allocation and implementation to make budget gender responsive. To evaluate public expenditure from gender perspective. To orient gender focal points and planning divisions of sectoral ministries responsible for budgeting. To disseminate information on gender responsive budget for providing inputs to the government to make budget gender responsive. To work for improvements in making budget gender responsive.

Future steps on GRB GRB initiatives will be continued and efforts will be made to increase GRB budget volume. The Government of Nepal will work together with UNIFEM in future to further institutionalize and strengthen GRB process. Gender audit will be performed for the project which have more than 50 million budget allocation. GRBC will encourage local bodies and NGOs to prepare GRB. Invest more fund on reducing 'feminization of poverty' and allocate more funds on women friendly technology. The GRBC will urgently earmark a substantial budget to address the issues of re-establishment, re-integration and rehabilitation of conflict affected girls and women. The current indicators will be upgraded as and when necessary.

Paris Declaration: Nepalese Experience Ownership Opportunities: Increasing ownership of Government, Donors and Civil Society Sufficient professional capacities in place Active Civil Society Significant Donor support for CSOs Challenges : Uncertain political situation, pushing the GE at back bench Professionals and Activist make more noise less action Insignificant funding by Donor to Government Gaps between commitment and implementation

Paris Declaration: Nepalese Experience Alignment Opportunities: Government has undertaken policy measures to advance GE according to International Commitment Increasing gender awareness among Donors Challenges : Issue of conditionality made by Donor, failure to demonstrate examples within their own agencies Changing and contradictory International Commitments

Paris Declaration: Nepalese Experience Harmonization Opportunities: Government committed to international instruments on gender equality through the formulation of various Action Plans Donor Community has increasing acceptance of GE policies and plans Challenges : GE issues generally not visibly featured in conditionality of Donors New commitments overshadowed by earlier commitments often regressing on GE in terms of quantity and quality

Paris Declaration: Nepalese Experience Managing for Results Opportunities : Increased Emphasis on M & E by implementation of Gender Management System (GMS) at the National Planning Commission Results-Based Management (RBM) by incorporating indicators of gender equality in Gender Responsive Budgeting (GRB) initiative Government and Donor eager to see impact on GE Challenges : Government and Donors laid-back action resulting in resource gaps Gender issues not addressed in large projects of larger Donors Gender-sensitive Donors have small funds

Paris Declaration: Nepalese Experience Mutual Accountability Opportunities : Parliament supportive of GE UNIFEM as UN GE agency is Supporting Government and Civil Society on gender equality initiatives Government policy on Affirmative Action Government has Gender responsive policies, plans and budget Challenges : Lack of follow up by Parliament itself Insufficient Action Plan of the Affirmative Action Commitments No pressure from Donors on affirmative action Male dominated behavior at the Donor level and Government level

Paris Declaration: Key messages Government : To initiate make a linkage between policy initiative/reforms and impact To take Gender Equality issue in rights-based approach rather than welfare approach To initiate empirical experience rather than academic and donor driven based approach Government & Donor: Government and Donor should work seriously on the issue of Gender Equality rather than showing their own supremacy. To strengthen Technical Capability both at the Donor and Government level Government and donor should seriously work on GRB Donor : To remove Decreasing/ Discontinuity of fund flow due to shifting priority based upon Ideological Whims. To remove duplication & unhealthy ideological competition between donor (which would affect the outdo shadowing the GE issue). Donor should make their own serious effort on affirmative initiation at least in their contributing program.

Advocacy by CSOs Continuous Advocacy since Beijing+5 Series of national, regional and international consultations on GRB in Nepal, of government and CSOs between 2000-2005 facilitated by UNIFEM Constant inputs and feedbacks on global and regional GRB initiatives to decision makers in the Ministry of Finance (senior officials, senior advisors and ministers)

From Advocacy to Technical Support Ministry of Finance requested two gender experts to initiate GRB in the Ministry in April 2005 following the Paris Declaration A gender budget expert was housed in the Ministry of Finance in May-July 2005 Conducted orientations on GRB to the Ministry of Finance officials Had GRB sessions with sectoral groups during the budget discussion sessions in the Ministry of Finance Assisted in making Gender Responsive Budget Statement 2005/06 Assisted in the formulation of Gender Responsive Budget Committee (GRBC) Assisted in formulation of GRB tracking indicators

Public Interest in Budget Statement 2005/06 Public interest in Budget Statement 2005/06 centred around the Gender Responsive Budget (GRB) initiative There was a wide media coverage on GRBI There were public debates and discussions on GRB Private sector commitments to provide employment to women

Partial Treatment GRB initiative has encompassed only the allocation aspect of the budget system GRB has to be initiated in the revenue policy and practice GRB has to be initiated in the taxation policy and practice

Way Forward GRBI has to be decentralized Gender equality has to be mandated in the decentralized planning and budgetary process Capacity on GRBI at various levels in the district has to be developed Women s agency on GRBI at the grassroots level has to be facilitated GRBI in private sector and NGOs have to be mandated Capacity on GRBI has to be developed of the private sector and non-government sector

Way Forward (Cont.) GRB needs to be used as a monitoring tool for the impact of national finance policy and practice on Gender Equality GRB needs to be used as a tool for policy reform Need to negotiate with donors in the mandatory application of GRB indicators as the monitoring tool for donor supported projects/programs