2000年-世界发展银行全球_Nepal___Public_Expenditure_Review_Volume_2_Agriculture_and_Rural_Development_101页_8mb

Nepal Public Expenditure Review: Agriculture and Rural Development (Volume II)

Core Content Overview

This report is part of a five-volume series on Nepal's public expenditure review, focusing on the Agriculture and Rural Development sector. It provides an analysis of the economic and social conditions in Nepal, particularly in rural areas, and evaluates the government's public expenditure management in key sectors. The report also discusses ongoing reforms and challenges in the agricultural, forestry, and irrigation sub-sectors, as well as the role of decentralization and the private sector in rural development.

Key Findings and Main Points

1. Rural Poverty and Economic Context

• Poverty is widespread, with a national headcount index of 42% in 1996.
• The rural sector is more affected by poverty than urban areas.
• Agriculture stagnation has been a major contributor to rural poverty, with real agricultural growth at only 2.6% annually, barely keeping up with population growth.
• Low infrastructure (e.g., road density, irrigation coverage) and low per capita income have exacerbated rural poverty.

2. Public Expenditure and Resource Management

• Rural spending has not kept pace with domestic inflation.
• Inefficient resource use has been identified, with a need for better prioritization and cost-cutting.
• The government has been reducing subsidies and shifting towards more market-oriented approaches.
• Decentralization is emphasized as a key strategy for improving rural development, particularly through District Development Committees (DDCs).

3. Agriculture Sub-sector

• Fertilizer usage is low, with a nutrient application rate of only 33 kg/ha (compared to 78 kg/ha in India).
• Fertilizer subsidies were eliminated, and prices were deregulated.
• The Nepal Food Corporation (NFC) has been criticized for inefficiency and heavy reliance on government subsidies.
• Reforms include reducing the number of districts served by NFC, cutting staff, and promoting a ration card system.
• Research and extension services are underdeveloped, with the Nepal Agriculture Research Council (NARC) failing to align research with agricultural priorities.
• Decentralization and community involvement are recommended for both research and extension.

4. Forestry Sub-sector

• The Ministry of Forestry and Soil Conservation (MoFSC) manages community forestry, leasehold forestry, and national forest conservation.
• Community forestry has been a major focus, with DFOs empowered to transfer forest land to user groups.
• A recent ban on green felling threatens the sustainability of community forests.
• Leasehold forestry generates significant revenue (almost half of the forestry budget), but there is a need for legislation to regulate groundwater use and reforms to improve conservation incentives.
• The Timber Corporation of Nepal (TCN) has a monopoly on timber marketing and is running at a loss. It should be opened to competition to improve efficiency.

5. Irrigation Sub-sector

• Only 35% of crop land is under irrigation, with the Terai region having the most irrigable land but only a third of it actually being irrigated.
• Surface irrigation systems suffer from poor water management and low investment in maintenance, leading to costly repairs.
• Groundwater usage is increasing due to government subsidies, but it is costly and environmentally unsustainable.
• The government's goal of installing 8,200 new tubewells was too ambitious and led to reduced investment due to uncertainty in subsidy access.
• Capital subsidies for tubewells range from 60% to 84% of costs, depending on depth.
• Funding for these subsidies comes from donor projects and the government, but collection rates are poor, leading to sub-optimal spending on maintenance.

Key Recommendations

• Increase resource allocation for rural services and improve their efficiency.
• Decentralize agricultural research and extension services to better meet local needs.
• Promote private sector involvement in agricultural inputs and services.
• Reform the NFC to make it more commercially viable and reduce reliance on subsidies.
• Improve legal and regulatory frameworks for forestry and groundwater use.
• Enhance the role of DDCs in managing rural development and resource allocation.
• Encourage competition in the irrigation sector to improve performance and reduce losses.

Data Highlights

Summary of Reforms

• Fertilizer subsidy removal and deregulation.
• NFC reform with reduced districts, staff, and depots.
• Decentralization of research and extension.
• Leasehold forestry as a revenue source and tool for illegal logging control.
• TCN reform to promote competition and transparency.
• Irrigation policy to increase groundwater use and improve infrastructure.

Conclusion

The report highlights the inefficiencies and challenges in Nepal's rural development sectors, particularly in agriculture, forestry, and irrigation. It emphasizes the need for better resource allocation, decentralization, and reforms in public sector management to improve the delivery of rural services and reduce poverty. The private sector is encouraged to play a larger role in agricultural input supply and services, and community-based approaches are seen as vital for sustainable development.