Donor Obligation for Public Sector Reform in Nepal

Abstract

Donor obligation is the donor role expected by the recipient. As a developing country, Nepal is characterized by the inadequate governance. As a result of the globalization of governance, Nepal has been making efforts for improving governance mostly supported by donor agencies since 1990s. In this context, this paper aims to assess the necessity of donor-support for improving democratic governance; to analyze the appropriateness of donor-support for civil service reform; and to identify the level of efficiency of development actors in demonstrating good governance in Nepal.

This article is heavily based on secondary data. However, the data related to the ‘appropriate donor-support for civil service reform’ are derived from secondary analysis based on the raw data collected during the researcher’s own PhD work (Adhikari, 2011). The study reveals that the donor-support is highly necessary for strengthening local authorities and civil society organizations. Financial support and policy advice are necessary for strengthening local authorities—the best performers of good governance among development actors in Nepal. Only policy advice is required for reforming new areas of civil service such as merit-based bureaucracy and performance incentives. The highly complex issue of civil service reform is corruption control in Nepal for which all kinds of donor-support (policy advice, financial advice and technical assistance) are required in Nepal.