Nepal needs over 16 bln USD to meet MDGs: report

If Nepal is to meet its development goals by 2015, especially as outlined by the Millennium Development Goals (MDGs) and rural infrastructure, it requires 16.4 billion U.S. dollars, according to study results issued here on Wednesday.

Out of the total government expenses, 3.8 billion dollars have to be borne by sources other than the public sector, according to the study on Needs Assessment for Nepal, carried out jointly by the National Planning Commission and United Nations Development Program (UNDP).

And the total public sector investment required for achieving MDGs and rural infrastructure targets is 12.6 billion dollars at 2004-05 prices.

Matthew Kahane, UNDP resident representative said while launching the report that Nepal requires a major increase in donor funding to properly finance development efforts, especially if the nation is to reduce hunger, improve education and meet development goals.

Kahane also said that the international community is willing to invest in well-planned, well-managed and well-monitored national efforts.

However, the willingness must be complemented by an environment where national development initiatives can be carried out impartially and transparently, without threat or intimidation and reach the most disadvantaged.

Finance Minister Dr Ram Sharan Mahat said that public institutions will be improved to expedite development initiatives and attain goals by 2015 as per MDGs. He hoped that once the country realizes peace, resources will be generated and development activities will gain momentum.

According to the UNDP, since April 2006, violations of the Basic Operating Guidelines have risen sharply, holding back critical activities intended to deliver services to Nepal's most vulnerable groups and eroding donor confidence.

As per the report, Nepal has a financing gap of 7.9 billion dollars. Assuming a relatively quick resolution to the current conflict, it would still require double level of financial support by external development partners to bridge the gap.

The MDGs are the world's time-bound and quantified targets for addressing extreme poverty in its many dimensions -- income poverty, hunger, disease, lack of adequate shelter, and exclusion - - whilst promoting gender equality, education and environmental sustainability.

Source: Xinhua