Even now, questions arise from time to time about the use of foreign aid received by the country. Such a question is not only now, but has been raised for three decades. The government concluded that most of the financial and technical support received from abroad goes back there in the form of consultants, technical equipment purchase or similar titles.
After the political change of 2046, priority was given to market-oriented liberal and competitive economy. But the government seemed displeased that the Nepali side's decision on foreign aid and its use was not implemented. The government has been holding the opinion that it should be changed . Aid and loans were imposed on Nepali people but the donors themselves took a large part of the money.
Although there are various efforts for economic reform, the Ministry of Finance and the Planning Commission announced the fact that a large part of the money coming in the name of technical assistance is taken by the donor country or agency under one or the other pretext.
The then Finance Secretary Thakurnath Pant said that they should hire consultants from foreign aid and if they refuse to hire them, they will have to buy equipment from there. Pant said that if nothing happens, the donors should accept that they have chosen the place of training.
The periodic aid evaluation project established by the Planning Commission stated that 50 percent of the amount received will be used for consultant's salary, 20 percent for the purchase of equipment, 20 percent for training abroad and 10 percent for local technical assistance.
The then vice-chairman of the Planning Commission, Ram Sharan Mahat, said that in the new situation, donor countries and organizations should change their thinking so that they can support poverty alleviation and sustainable development.
According to the Ministry of Finance, Nepalese employees used to receive more technical assistance than the annual salary. At that time, it seems that on an average, about 5 billion is received annually in Nepal for technical assistance. The Ministry of Finance said that this amount is about 25 percent of the total foreign aid. Since the 40s, 2,000 projects worth Rs 2 to 5 crore were conducted with foreign technical assistance.
In particular, government planners were displeased with neglecting the use of local technical resources . Among the nearly three dozen countries and organizations that provided technical assistance to Nepal in the 1950s, the largest share was from the United Nations Development Program (UNDP). In the discussion held in Lalitpur on 31 Baisakh 2050 regarding technical assistance in Nepal, Kerala Long, the resident representative of UNDP, admitted the weakness in technical assistance.
He believed that the development of Nepal requires skilled manpower and strong local institutions. The news prepared by journalist Narayan Wagle was published on the front page of Kantipur Dainik on 1st May 2050, focusing on the issues of utilization of foreign technical assistance, modality and timely changes.
presentation: Rishiram Paudel
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