RESE ARCH NOTE

REVIT ALIZA TION OF THE REGIONAL

DEVE LOPM ENT AGENDA IN NEPAL: LESSONS FROM
BRITI SH MODE L
Kedar Dahal

Introduction
cians and
The main objectiv e of this paper is to draw attention of the academi
rk and its
professi onals regardin g the new regional develop ment framewo
sections .
mechan ism in Nepal. This paper is concept ually divided into three
an introduc tion to the policies and program mes or
The first section, given
develop ment in Nepal. In addition . emergen ccs of regional
regional
strategie s
develop ment concept s in Nepal, their purposes, objectiv es and
of regional develop ment in United
have also been discusse d. The model
and their mechani sm and structure s have been disCUSSL :d
Kingdom after 1990
second section for the compari son. At the end, discussi on has been
in the
based
done on the possible regional develop ment agenda [model] for Nepal
on the British approac h, their wicked issues and strength s.

Develop ment Scenari o and Regional Issue in Nepal

Several
The concept of regional develop ment and planning came in 1960s.
the regional variation s of poverty in Nepal
attempts were made to reduce
plannin g periods. For this purpose , the nation has been
during various
ment
divided initially into four Develop ment Regions e.g. Eastern Develop
ment
Region (EDR), Centre Develop ment Region (CDR), Western Develop
stern Develop ment Region (MWDR ) in 1972
Region (WDRj and Mid-We
ment regions in 1981 in vie\.. . of balanced and integrate d
and five develop
and 3 Ecologi cal
develop ment. There are 5 Develop ment Regions (DR)
City, four
Regions (Mounta in, Hills and Terai), 75 districts , one Metropo litan
cities, 52 municip alities and 3,474 Village Dev'elop mcnt
sub-met ropolita n
y in the
Commit tees (VDCs) in Nepal and emergin g a rural-ur ban dichotom
by some
develop ment context. Althoug h, the develop ment was guided
in certain typical location s. Kathma ndu
centrifu gal forces and confined
ing as a 'develop ment island' and remainin g parts of the
Valley is develop
whole nation are still backwar d.
have
Regional variatio n of poverty among the differen t regional units
recent years. It seems to be an effectiv e tool for
highly been perceive d in the
alleviati on in Nepal for two reasons. First. it is importa nt for
the poverty
y to
identify ing poverty pockets in the country. Second. it is necessar
mes for poverty alleviati on
formula te location specific develop ment program

Contributions to Nepalese Studies, Vol. 32, No.2 (July 2005), 277-297

Copyright © 2005 CNASITU
 278 CNAS Journal, VoL 32, No, 2 (July 2005) Revitalization of the Regional 279

(Shrestha 1998). The spatial pattern of poverty shmvs that the Mountain. Sindhupalchowk, Dolakha, Ramechhap. Sindhuli. Rautahat and ~ahottari
M\\/DR and rWDR have conccntratl:d high mass ofpovnty. CDR. LUR and have categorized in worse districts. The study shQ\vs that. the EDR, V:'DR and
WDR have comparatively better position than the remaining two Kathmandu valley have been categorized into best In terms of o\"(;:l"all
development regions. Similarly, Tcrai (Plain) and Kathmandu Valley arc composite indcx of development. One study conducted in .San.khu~vasabha
mort; developed as comrared to the other regions. The political instability. and l3hojpur district shows that the level of pov'crty and deprivation 111 Nepal
poor accessibility, poor economic integration, rigid nnd steep topography. mostly conforms to the resource endowment, accessibility, markcts and
high rate orinter and intra-regional migration. environmental and natura! topography (DEVA, 1997). [n this 'context, the re~ional. dc~elopment
calamities are core causes of the regional inequalities of Nepal. approach might be ml're relevant to address the poverty I~sue,s In "!\;epal. The
identification of the poverty pockcts would be more meanlllgful to formulate.
Regional \'"riation of Poverty and implement of the development plans and policies in the Kingdom.
i\'lost ufthe ll10untain and hill districts ofNcpal are containeu \\'OI"st in tel"lllS
of the pm'erty and deprivation. \lore pmerty is concentrated in those areas. Table 1: Ree:ional Variation of Poverty
\\hich urc characterized by poor resuurces. remotl'ness und rugged Regions Poverty 0/0 Per capita Income
topography. Out ofthc total. \lVv'DR has u large number ol"peoplc helongs to (Rs) .-
the po\.erty (i.e.56.4 %). it follO\\'s ]-'\VDR (45.8 (~'o). CDR (]9.7 ~'o). \\'DR 1989 2000 1996 I 1999
(38.2 %) and EDR (34.2 (~/o) (Tahle 1). EDR hus lo\\est concenlrution or Development Ree:ions
pO\'erty whilst M\VDR is the worst. ha\'ing more than 56(~/o population unuer FDR 34,2 42 7,434 1073 __
the poverty line dominuted by the large percentage or rural PO\Trty (ahout CDR 39,2 40,7 9.366 1713
59.2 percent). WDR 38,2 39,9 7.011 ]D22
According to Nepal Li\'ing Standard Survey (?''';LSS) 1996. averagl: MWDR 56,2 43.4 6.038 861
household income at the national Ie\cl was estimated Rs. 43.732 anu per FWDR 45,8 54,3 5,928 899 "_.-
capita income Rs. 7.690. The highest household income \\3S l:stimated in Ecoloe;ical Re~!o_~s
CDR (Rs. 52.408). while. the 100\'est in \1\VDR (Rs. 36,435). Kathmandu, High Mountain NA 46 5,938 898
the capital of \iepal. in CDR. has higher level of household incol11l: as Hill NA 37.2 8,433 1262--
compared to other regions. Similarly. per capita income was cstimated to be Terai NA 40.2 7,322 1267
highcst in the CDR (Rs. 9.366) as compared to the Imvest in F\VDR (Rs. Residential Areas
5.(28). As estimated by the ecological regions, it clearly seems that. hill Rural 43,1 41.4 7,075 1.094 , -
people have highest per capita income (e.g. about Rs. HA33) as against the Urban 19.2 23,9 16,118 2,133__
lowcst in mountain people (e.g. ahout Rs. 5.938). Average householu income --
NEPAL 42,5 39,2 27690 1237
in the hill was estimated::ls ave,agc Rs. 45.000. which by Tcrai (Rs. 44.5(0)
Sources. HImalayan StudIes Centres (HSC) 1989
and r-,.'1ountain (Rs. 32.300). Urban-rural difTcrentiatjon of po\'ert~ in Nepal
Nepal Living Standards Survey Report, CRSI996
is also a major issue. The per capita income of urban \vas estimated as Rs.
Human Development Report. /Vrational Planning Commission (lv'PC)
16,118 in stead of Rs. 7.075 in rural areas, while. the average householu
2000
income in urban areas estimated as Rs. H6,797 as against Rs. 40.4()() in rural
areas (NLSS. 19(6). Regional Development Planning in Nepal .. .
IC10.10\) (1997) had conducted a study on puverty based (~;stricl ranking. Regional development planning in Nepal can be diVIded lnto three phases
for e\:ample better rank districts, intermediate rank uistrich and \\urse runh: • Regional development before 19705
districts. shO\\s that the poverty and deprivati()n in Ner~t1 arc unJl'r t\\'() • Regional development in 1970s-1990s, and
distinct clusters, one lies in the hill anu m\)untain regions or r\\'DR dnd • Regional development after 1990s
M\VDR. anu another lies in the Ccntral hill and mountain regions. But
Kanchanpur of !-"\VDR categorized into best Jistrict and D.~ll"Chlila unJ Regional Development Before 1970s
western terai districts have been categori/.ed into intermcdiak districts. In Regional development approach \vas first introduced in the Sec.o~d T~ree
CDR. e\:cept Kathmandu. Rhuktapur and Lalitpur, 7 districts lih:l' RcL'iU\\a. Year Plan (1962-1965) in Nepal. As a result, the country was dIVided II1to
several development and administration regions. Third Five Year Plan (1965-
280 CNAS Journal, Vol. 32, NO.2 (July 2005) Revilalizati6n of the Regional 281

1970) was focused on the road and transportation development to link In 1992, four-development regions have been defined e.g. EDR, CDR, WDR
mountain, hills and terai region in the national development process. Third and MWDR. Growth centres and their possible hinterland areas have also
plan gave prominence to regional aspects in the national development plan by been defined (Table 4). The main objective of the regional planning during
dividing the country into three watershed regions like Koshi, Gandaki and the 1970s was to provide a comprehensive spatial framework to the national
Karnali with the aim of the balance regional development. Till 1970. regional development.
dev.d.opment was in the initial stage. There were no additional development These roads were proposed to liok series of grO'\1h centres wherc
pohcles and pions prepared in the field of regional development in Nepal developmi:nt efforts will be concentrated in order to achieve full economies
of scale and encourage agglomeration economies (Gl1rung 1969). The
Regional Development in 1970s-1990s important aspect of Ihe gro\\1h centres approach is the positive nature of
Fourth Fi\e-Year Plan (1970-1975) was a milestone in the regional planning polarized development as it takes place and the me<:hanisms whereb} the
and development in Nepal. Gro\\1h pole hypothesis was introduced in the grO\Hh centres spread to the surrounding areas.
country. Four growth poles and several other growth centres were identified This strategy of regional planning has been closely linked to the road
in order to reduce the regional disparity of Nepal. The main growth pole construction linking teraL hill and mountain, and generating greater inter-
hypothesis \\ os to establish the north-south linkages in thc mo\t:ment of regional circulalion of goods, service and people. This approach of regional
goods and serviccs. trade and people \\ith (hc ,iew to coordination and development has focussed on the circulation of goods, people and services
intcgrated dc\clopmcnt acti\ities within the countl) (Table 3 & Fig. I). among the mountain. hill and terai and ultimately of India. but did nOI give
more atlention about the flow of goods and services among the regions like
Fig. 1: Gro¥lth Axis, Nepal
hill 10 hill, mountain to mountain and terai to teraL In effect, Nepal is made
up of several separated regional economics, each one dependent upon its
railhead connection with India (Blaikie 1981). As a consequence, hills ha,'e
NEPAL
-,, GROWTH AXIS
become grain deficit and are obliged to export labour to Terai and India.

Table J: Growth oles and De"elopment Centres

Growth Poles Re.. ions Develo ment Centres
~ ~\I Biratnagar Koshi (Eastem) Biratnager, Dharan. Dhankuta. I-Iedanga
>-_.r:: J • China Dhankuta
C •.... -Jf Hetaunda--- I ~athm:l~u
Central
Birgunj . Kathmandu Valley.
Helauda, B8I1lbishc,Dhunche
Kathmandu
Bhairahawa Gandaki Bhairawa. Butwal. Tansen. Shangja.
Jomsom (Western) Pokhara. Jomsom
Geoaraohic Re<Jion, Ncpalganj Jumla Karnali NcpaJganj, Surkhcl. Dailekh. Jumla
I ;Far Wcstern}
Source: The Fourth Plan (/970-1975) /JMG/ NPC. Nepal.
HIlII India
Tical Table 4: Development Region. Growth (;entres and Hinterland Districts
Index
Development Growth Hinterland Districts
Scale re..ions Centres
Growth AxJo Terai Total
"\'..." ~·~~=t- Mountain Hills
Gcowth Centr.. 5 16
Eastern Dhankuta J 8
Central Kathmandu J 9 7 19
Western Pokhara 2 II 7 18
Far Western Surkhel 8 II 5 24
Source. Shrestha and Jam /978
 282 CNAS Journal, Vol. 32, No.2 (July 2005)
Revitalization of the Regional 283

I-Iarka Gurung's development approach has brought many significant

chan~:s i~ the location of flows and break-of-bulk points (fig2). Road In the Sixth Five Year Plan (1980-1985), regional development planning
provISIon In west- central Nepal has accelerated in some instances the long- emphasized not only to the integration bctnecn north and south but focused
established decline of the hill economy, particularly in the case of artisans, on the east and \\est integration through the development of roads and other
craftsmen and occupational castes (Blaikie, 1881). This is true that Harka infrastructure development, and priorit) was given to increase economic
Gurung's approach of regional development has a number oflimitations and integration among the different regions through the huge economic
does not otTer a suitable regional development framework. Many rural areas investment, especially to the food produetfon in the backward and poor areas.
of Nepal have self-sufficient economy. Road and communication Integrated Rural Development Programmes (IRDP) \\ere ghen more
infrastructure and service facilities are developing fast in recent years. In thi~ emphasis on thc Sixth Fivc Year Plan allhough the concept of IRDP \\as
context, this approach of regional development would not be an appropriate introduced during the Fifth Plan in order to imprme the qualit) of socio-
strateg) for national development. economic standard of people. The main objecti\'es of the IRDP \\cre to (1)
Fifth Five Year Plan (1975-1980) was designed to increase national improve the socio-economic condition of rural communities (2) provides
re~<:n.ue b} widening the foundation and boundary of development, by
social services, (3) mobilize local resources through people participation. (4)
utlhzm~ the ~urces in particular region and community through
involve local people in thc decision making of local de\elopment
appropnate methodology (NPC. 1995). The objective of regional programmes and (5) develop different components in an integrated wa}
de\elopme.nt .was to bring unifonnity in the income by increasing the income (Shrestha 1986).
of the ~aJonty of the population based on social justice in maintaining The Sixth Plan was focused on the regional de\ elopment through
economIc and social unification and by mobilizing local resources. integration of rural infrastructure de\elopment. i.e. ag.ricuhure. small-scale
industries, horticulture, livestock. and consenation of the natural resources.
Fig. 2: Impact of Growth Axes (An Example of Bhairabawa- This was the second main step in the field of the balanced regional
PokbaraJomsom Growth Axis) development in Nepal.
But location of such schemes has mutually contradictol'} aims. The
problems of poverty. deprivation. ecological dttline. lack of ph)sical
infrastruclUre and personnel within a political economy tend not to be
conductive to a purposeful solution. and these problems are all so pcn'asivc
(Blaikie, 1981). Lack of transparency and political intenention \\crc another
causes of the failure of the IRDP in the past. In the Scventh Five Year Plan
(1985-1990), the national goals and objectives \\ere to reduce the regional
imbalances in Nepal through the high utilization of local resources. The
Seventh Plan proposed a regional structure of regional dcvelopment plan
under three dimensions:
""LL [. To develop development centres and scniee centres establishcd in thc
sub-regions in cach developmcnt region e.g. towns and market centres.
2, To make the regional level plans practical and effective. regional
development projects should be carried out at diffcrent levels/tiers i.e.
DR, Sub-region and District, and
3. District Development Plans formulated under the decentralization polic}
will conform to regional development plan, Sub·regional will be
identified recognizing the e'iisting zones liS they are. The dislrict will be
,...•..
o .• ~."."
~...

" .... ""~,,

•
'"
~
,~"",,,.,
,,,.,-~,

""40<.'" ._..
the lhird tier of development region (NPe. 1990)
....... ~ ... "'..... .. 0>", ..
--== ",,' •.,'"."...
C> _ _ ...' ....... ,,
~ "... ,
~, _""""'~
"~
Therefore. the deccntraliztllion nnd regionlll dc\c1opmenl polic) wcre
integrated during the Se\enth Plnn periods lind the regional de\clopmcnt
Source: Ben/ley and Gibney. 2000
284 CNAS Journal, Vol. 32, No.2 (July 2005) Revitalization of the Regional 285

through an cmpO\verment of the local government was considered as an among different regional units (intra and interregional interaction),
important approach of development. .' . . the regional development policies became ineffective. There were
But without a statutory regional and sub-regional InstitutIon and lacking an effective programmers in the context of regional
pov.;erless districts. the proposed regional devel?p~ent polici.es wer~ not development, except rural infrastructure development.
properly implemented. National Planning CommiSSion (~PC) IS .a natIOnal The Ninth Five Year Plan (1997-2002) was designed with the aim (0
le\ el statutory institution and the planning from above dId not give propcr reduce the level of poverty in the country. Balanced regional
attention in the regional development. Seventh Plan did not mentio~ t~e development was seen as an impmtant aspect of poverty alleviation
programme coordination among the different tier of regional un~ts. District in the country. This plan highlighted four core objectives fl.)]' regional
development plans were prepared \\'ithout detailed study of ~he l~)Cal development. Ninth Plan also focussed on regional development
resources and their relations among the diflerent districts and regIOns. I he through the three tiered hierarchy of areas for development i.e.
main problem or this plan was the improper implementation of the target cd Development Region, Sub-region and Districts and formulated 13
policies. different policies to fulfill these objectives. One of the important
aspects of this plan was to define and formulate different
Regional Development After 1990 . . programmes. Many programmes were proposed in order to reduce
People's democratic movement in 1990 establ1shed ;J parllamentary the regional imbalance in the country. Optimum mobilization of the
dcmocratic system in Nepal, and gave more priorities to the rural and regional resources, identification of the potentiality and capacity of
regional dev~l()pment through morc decentralization and empowerment of the resources at regional level, area specific programme, NGOs
local bodies. Policies. which aim to the empmverment of the local people and mobilization, peoples' participation in the development process.
local gov'Crnment in the development process. \.. . ere formulated in order to development of infrastructure and service facilities, co-ordination
balance the regional development. and integration mechanism for the regional development and
Eighth Five Year Plan (1992~1997) was designed \vith emphasis on proposed regional offices for the formulation, mobilization.
three-core obiectiyes: (a) sustainable economic grmvth, (b) poverty monitoring and evaluation of district level programmes were very
alleviation. a;ld (c) rl:Juction or regional imbalances (NPC. 1992). important aspects in the context of regional development. This plan
The main objectives of the regiunal development in the eighth plan for the first time felt the necessity of regional offices, peoples'
\\ere (i) to -increase n:gional amI national production and reduce participation, area-specific programmes and analysis resource
rcgional imbalance by llwbili/ing n:snurces and assets scattered in potentiality for the regional development, which were not mentioned
differcnt parts of the c{)untry. anu (ii) to intcgrate rural deve!ormcnt in the previous plans.
pmcesscs into the national mainstream oy involving the prevailing Policies and programmes prepared in the ninth Fivc Ycar Plan
economic condition of the less dcveloped rural and back\vard areas seem to be more ambitious. It is very difficult to implement these
(NPC. 1992). policies and programmes in a short period. After 1990, the country
Reduction of the regional imbalances through creating the physical has been facing serious political instability (See annex 1 for further
infrastructures in the rural and backvvard regions had been detail). Moreover. after 1996 the targeted policies and plans in the
emphasized in the plan. It had given more priorities on the e:\tension I regional level have failed and less implemented due to extreme
or rural roads, health facilities and education. Fineen dilTerent political instability. MWDR, FWDR and some high mountain
policies were put for\.. . ard in regard to the regional devc!opment in districts are still backward due to the high political uncertainty, poor
the plan. These policies were enacted throu~h ditTcrent regional. sub- human and natural resources and. deficit budget as well.
regional and district level programmes. Expansion or the road The tenth Five Year Plan (2002-2007) is focused on the balanced
netviOrks, rural electrification, establishment of the health post and regional development through the utilization of potential resources in
schools in rural village, extension of infrastructure and service different regions. Three core fegional strategies have been prepared
facilities in the rural areas, establishment of rural development banks. in order to reduce regional imbalances. The core strategies are
natural resources conservation through the extensive community concerned with:
forestry were some important achievemcnts during this peri~d. (~ut • People's participation in the social and political decision making
without appropriate mechanism and programmes to co-ordInation processes.
 Revitalization of the Regional 287
2 (July 2005)
286 CNAS Journal, Vol. 32, NO.
e English RDAs Sicne 1999
Fig. J: Regions and the logos ofth
ions among the rural, urban and
• The interregional economic relat
infrastructure development
backward regions Ihrough the
icati on.
particularly transpon and commun
cing regional imbalance.
• Resource allocation in view of redu
nodal market centre and road and
The concept of economic region, s are
the use of local skills and resource
infrastructure de\clopment through deta iled expl anat ion and its
plan. But the
major policies highlighted in this . The curr ent
not been defined well
scopes of the economic region have
wea k secu rity in the kingdom has been disturbing for
political insurgent) and
.
further implementation of the policics l
Nep al Gaz ette 2058 (200 2) has emphasized the position of Regiona
The Gaz ette did not
regional security. But the
Administrator in the \iew of the
er lind focu sed only in the regional security.
give alieni ion in this matl
da has been put forward through an
In Britain. regional de\elopment agen
elopment Agencies (MA s). Let us look
institution naming New Regional Dev
el of regional dcvelopment first.
al the salient features of British Mod of
Government recognized the need
After 1994. Dritain's Conservative gove rnm cnt laun ched its
the conserva tive
regional coordinator. In this regard. y's
JO Go\ crnm cnt Offi ces for the Regions (GORs). Labour Pan
network of Con lcde ratio n of
for England (1995).
consultation Document, A Choice for Busi ness (199 7) and
report. Reg iolls
British Industry (CBI) published a
En\i ronm ent. Tran spor t and Regions (DETR) White Bill
Department of Suslainabilily, Groll'lh,
Partnerships for Pros perily:
Bui/ding 7) emph llSi7..cd
lhe English Regions (199
Compelirheness alld Employment in
In 1997. DETR WltS esta blish ed and a new Source' BemteyandGibney, 2000.
on lhe regional level government.
bill of RDAs was announced.
DETR White Paper (1997a) and
In 1998, RDAs Act was sct out. Both RDAs aration of Regional Economic Stra
tegy
functions of the RDAs. The Eight The roles of R!'.As include the prep
RDAs Act 1998 defined Ihe core began upon other areas of gove rnm ent poli cy
(RES) and ~dvtsrng and commt:nting
were established und er the Act and
(Nine RDAs. if London included) tory purp oses - relation to the task of imp leme ntati on,
operation in April 1999 (Fig 3). Each
RDAs have fi\e statu and expenditure where relevant. In l
of its area s; n o,:,er. the pow ers of English Partnerships and the Rura
• To funher the economic developm
ent RDAs have take prop eny
!argely. in respect of land and
ness effic ienc y, inve stment and competitiveness in Development Commission (RD~). n
• To prom ote busi y for Inward investment and promotio
its area; de~el.opment, as well as responsi bIlit
Org aniz ation s (Ma wso n.
Development
area; polICies of the English Regional
• To promote employment in its n resp onsibility for programmes such as Ihe
ent of sustainable development in the 2?OO). The new RDA s ha\'e take
• To contribute 10 the achi evem and have resource of up to £200m per
do so; and Smgle Regeneration Budget (SRB)
UK whcre it is relevant to its area to region.
lopm ent and appl ication of skills relevant to annum depending on the size of the
• To enhance the dcve
Sect ion 7( I) RDAs Act 1998)
employment in its areas. (Source: A New Fram ewo rk for the Regions
The Regional Agenda in Brit ain: board
government sponsored bodies, with
The Act 19?8 provides RDAs as a in the region.
a range of diverse interests
that are busmess led and reflecting the RDA s will be
nd and London,
In Wales, Scotland, Northern Irela
288 CNAS Journal, Vol. 32, NO.2 (July 2005) Revitalization of the Regional 289

responsible to direcL;J elected regional authorities and regional governments, Four key aspects of the regional development in England have been
while in England, they are new quangos responsible to the Secretary of State established for example Regional Governance, Regional Development
for the Environment and to a certain extent, to new voluntary regional Agency, Regional Assembly and Regional Chamber. Figure 4 shows the role
chambers, whose membership consists of a regional public-private of these institutions and their relationships in the broad regional development
partnerships (Shutt, 2000). context in Britain.
One of the principles of the RDAs is to establish regional partnerships.
Each RDAs would have well skil1ed and experienced board members. Each Lessons from British Model
regions have a regional assembly, established all party support, bring together British approach of regional development could be feasible for the balanced
all the local authorities in each regions and building a new regional level and integrated development through making independent regional
local government. These regional assemblies linked number of voluntary administrative structures. Let us discuss the possible framework of the
regional chambers, these are public private partnerships, which have to be regional development in Nepal tased on the British model. Two institutional
consulted by the new RDAs as a part of their statutory obligation':.. All mechanisms found essential for the effective regional development in Nepal
regional organizations are linked with each other and important bodies of the for example, Regional Development Council (RDe) and Regional Assembly
RGOs. In the North West Region, for example, the assembly and chamber (RA). Because of the environmental diversification, loeational specificities,
have been combined. Both are focused on the RDA formation and socio-cultural diversity, political pressures, resource allocation and
partnership process. It is the regional chamber that have the potential to bring availability, such institutions might be an appropriate for the planning and
together the rang of key regional partners and stakeholders, not only from the development of the region through a suitable coordination and linkages
public and private sectors, but also from further higher education (Shutt, among the various local-regional-central level public and private
2000). organizations. Public and private nexus seems to be an essential in the
development. RDC and RA therefore are proposing in this study, which will
5t
Fig. 4: Regional GOl'ernance in England from 1 April 1999 play key roles in the regional development.

IProposed) Regional Institutions and their Relationships

Regional European Union Regional Developmenl Due to the lack of an appropriate regional institutional mechanism, the
Government Office Agency regional development plans and policies are directly guided by the National
Secretary's Policy Chairman and ,..-_ _..L_----,
Established 1994 Planning Commission (NPC) and their frameworks. There is no effective
Regional irect Board Chief Exec
regional institutional mechanism throughout the history of development of
Nepal. Regional plans and policies are formulated and guided directly
through the NPC in their own mechanism. Like in Britain, four regional
RTS Regional Spatial institutions could be proposed in Nepal, for example, Regional Development
oed
RPG
Strategy Council (RDC), Regional Assembly (RA), Regional Administration (RAd)
and Regional Chamber (RC). RDC is supposed to be an appropriate
Regional Chamber
institutional mechanism for the regional development of Nepal. RDC would
Regional Assembly A Voluntary have stakeholders from private, public and other voluntary groups. All
All Local authorities association of District Development Committee's chairman will automatically be a member
in regional public and private
of the RDC. Moreover, experts from the different interests would have also
orgamzatlOn stakeholders
(Chairman and been members of the cQuncil appointed by NPC and RA. RA, in the present
representing local
government Director) situation, could be a Federation of District Development Committee (FDDC).
(Chairman and All DDC members would be automatically a member of the assembly. RDC
can give their power of implementation to the District Development
Committee (DDC). Each DDC would have responsibility of the
implementation of the development plans and policies designed by the RDC.
Even, Local Self-help Governance Act 1998 has been given more power to
 Revitalization of the Regional 291
290 CNAS Journal, Vol. 32, No.2 (July 2005)

development in the regions. All the regional development planning and

make and implement local development plans and programmes in the district,
programmes will prepare and decide through RDC and RA with close contact
municipal and VDC levels. The main role of the RDC will make plans and
with the RAd and RC. The possible coordination and the concept of regional
policies suitable to the region. DOC, Central Government and donors will be
governance are shown in Fig.S and 6.
appropriate financial supporters for the implementation programmes.

Fig. 6: Proposed Regional Developm.ent Mechanism in Nepal

Fig. 5: Possible Coordination among the Different Regional Units

,"iational Goals and Guidelines NatIOnal Planning Commission

(Prepare by NPC) (NPC)

.• Guidelines for Decentralization

Guidelines for Regional Development
National Goals and Guidelines

I ..
Regional Assembly Regional
Regional Plans and Policies (All District Regional Planmng & Developmenl (iuidellne.\'
Development
(Prepare by RDCI RAlRC) Development Council
Committee) (Proposed)
• Prepare detail development plans and strategies
(Proposed)
• Programming and phasing
J
~
• Analysis resource potentiality
Consultation &
• Coordinator of the development activities of the Planning Regional Economi GUidelines

regIOns
POwer of Implementation ... & Planning

• Monitoring and evaluation Regional

Development
-~ Strategy
... I-
Implementation
(Implementation by DDC)
Regional Chamber
Regional
• Implementation development plans and Administration
(Regional F:'iCCI)
(Proposed)
~ ~ (Regional Government)

YDC level Municipality level

programs programs
But the establishment or the RDC is not easy. There y.,rill be v'arying
assessments and opinions regarding the implication and consequences for
RDC. The most important argument might be eroding power of the local
The concept of RAd has been already evolved in Nepal since 19605, but the
govL:rnmL:nt, i.e. district government. Other argument may be the power
provision of the RAd has been created since 2001. Regional Administrators
devolution from the centre government will strengthen regional and local
could playa role in the regional development. Such institution would have
governmen 1.
responsible for both development as well as regional security. But the
Regional Administrator according to the Gazette 2058 (2001) is responsible
Weak Issues
primarily for the security. Each five-development region should have
Even in England, RDA faces a range of issues and difficulties to address
Regional Chamber (RC) Federation of Nepal Chamber of Commerce and
regional agenda. DETR 20bo has also been considered these issues. All weak
Industry (FNCCI) can playa role of RC. FNCCI is a business organization
issues arc rising in the implementation stages. However, RDA in England is
could focus for the promotion of regional business activities and economic
 Revitalization of the Regional 293
292 CNAS Journal, Vol. 32, NO.2 (July 2005)

Integration and relationships

in the honeymoon stage. There are many areas that RDAs may fail to address
The most important issue will arise the relationships among the RDC, RA,
the regional issues in England, for example:
Re and RAd. It will also be difficult to define their scope and limitations in
• Develop consultation with partners in a meaningful way;
the development. Furthermore, the preparation and integration of economic
• Consult adequately action plans; development plan, transport and environmental plans in the broad regional
• Privilege urban areas above rural areas; development context would have been challenged. Therefore, each institution
• Resource properly the strategic regional priorities and actions; and should have holistic vision and have integtated approach for the overall
• Get to grips with the regional institutional architecture. (Shutt, 2000) development of the regions. One of the core objectives of the development is
to promote the sustainable development. Sustainable Development means the
The revitalization of regional agenda in Nepal is not easy even difficult to balanced and integrated socio-economic and environmental development
adopt British Model. Several wicked problems will .arise wh~le di~cussing the within the framework of the need of the present and future generation.
new model of regional agenda. Some of the core Issues WIll arise after the Without integration, the goal of sustainable regional development would not
adaptation of the British Model in Nepal are summarized below. have been meet.

Integration of number of agencies . .. Conclusion

The integration and coordination of many regional level offices [UnIts]. wlthm The new approach to regional development is essential due to the different
their own vision, target, philosophy, or policies and set up theIr own features and multi~cultural specificities of Nepal. The concepts of regional
organizational structure p~obably bec~mes a ?arr.ier in the regio~al development need to develop beyond the traditional approaches and models.
development in Nepal. RegIOnal strategies, organizatIOns and. partners~l~s Traditional approaches did not give a clear-cut picture of balanced and
need to be developed for the economic development of the regions. But It IS integrated regional development and regional competitiveness. Regional
not easy task to develop such integration within their own individual policies problems and issues can be identified and solved through suitable regional
and ways of activities. governance. The concept of regional governance is also a process of
development of decentralization that would be able to address the regional
Partnership for economic development . issues including poverty. resources and development. Even in England, RDA
Each Region must prepare their own economic plans together wlt~ map-out is an initial step not only for the economic development but also for the
and create strong linkage with economic development partnerships. Each socia-cultural, environmental and political development and reform of the
region needs to understand the local economic develo~ment part~ers and England's urban, rural as well as countryside development.
their plans and policies and also need to regular dlalog.ue .wlth local Because of the different level of economic development, socio~cultural
partnership agencies. Regional c.hamber, busin~ss. organIzatIOns, n~n­ and environmental speciticities, the original British model of regional
government organizations, community based organizations and lo~al service development might not be appropriate in Nepal. British model of regional
providers- should have a strong coordination and have partners~lps for the development is led mainly by public/private organizations including business
development. But partnership is not an easy task. PartnershiP. ~ust be sectors. Nevertheless, in Nepal, private and business sectors are not strong
identified in terms of their financial adequacy, human resources, willingness like in England which can contribute to the regional development processes.
to integration and the development. However, academics and policy makers could learn and make regional level
policies based on the British Model. This model of regional development
Resource attraction could also help to increase interests of the community. business sector, NGO
Each Region needs to attract new fund for the inve~tment. ~ut it. is a and CBOs in the development and in regional competitiveness. This model of
challenge to attract huge investment through attractmg publici private regional development can also reduce the burden of the central government,
investors. On the other hand, human resource development, for example, for example NPC and other different ministries and departments.
dexterous administrators, advisors and motivators with highly developed Revitalization of regional agenda in Nepal is not an easy task. Several
diplomatic networking and political skills, is essential for the effectiveness of weak issues will emerge during the implementation of the regional policies.
the regional development. What would be the relationships of regional governments with central
government and other lower tiers of regional units? How many agencies will
 Revitalization of the Regional 295
294 CNAS Journal, Vol. 32, NO.2 (July 2005)
economi c
including research. They are to expand and develop regional
own and
integrate in the new regional develop ment model with their intelligence.
policies
rragmented development strategies and policies? What would be the The RDAs have, from pt April 1999, the lead the role in the social,
physical and
ion? Does and spread
and strategie s for the rural poverty, unemplo yment and deprivat economic regeneration of each region, seeking to maximize benefits
of sustaina ble regional develop ment? These of economi c developm ent and investme nt. Each RDA will: (i)
this model \vould be in the path the benefits
administ er
regional RB) Challeng e Fund; (ii)
issues are more critical and need to be conside red in the broad administ er the Single Regeneration Budget(S
develop ment framewo rk. and combine the regeneration role or
English Partnerships (EP) and the Rural
activities of
Development Commiss ion(RDC ); and (iii) absorb and integrate the
Nepal. There arc existing inward investment agencies.
This is an innovati ve approac h of regional develop ment of g town and
many models and approac hes that could be an appropr iate for the The RDAs must address both urban and rural issues, integratin
tion of
develop ment country, and be responsible for the economi c development and regenera
dc\'elop menl. Further study and research in the field of regional
is still importa nt in Nepal. rural areas.
in order to make sustaina ble regional develop ment The RDAs will take a 'leading' role in the European Union Structura
l Funds
mers in each region for the 2000-200 6 period. In the first
(EUSF) Program
mers remains
:"Jotes
towards the instance, however, responsibility for delivering European Program
I. Regional development planning is a comprehenSIve approach with Government Offices for the Regions and with the Department
of Trade and
ation of cconomi c and social aims as well as a means of broadeni ng the
reconcili Industry.
s of the national plan regional planning Assistan ce
scope of the allocative processe The RDAs will provide advice to ministers on Regional Selective
local level and
provides an important link between the micro-analytic concern at (RSA). The DTI has since reviewed RSA, which is seen as an importan t tool in
s at the national level by laying stress on the co-
macro- economic objective
m;\\, resource attracting and retaining internationally mobile investment.
ordinative relations among programmers in particula r localities and The RDAs \\i'ill monitor and provide a regional focus for the work
of Business
combina tion for improved land use (Gurung, 1969). Enterprise
Links in promotin g small and medium sized enterprises (SMEs) and
2. Regional developm ent objectives of the Ninth plan were programmes. The DfEE has reviev.-ed the Training and Enterpris e Councils (to
To minimize regional imbalances. Services.
be replace by LSCs) and the OTl is establish ing the Small Business
including
fn illle\iilte poverty. The RDAs will promote the reclamation and preparati on of sites,
10 achieve naliOl1<l1 socio-ecnnomic Integration by expt:diting
the social and offices.
thaL contribute 10 taking the role now played by English Partnersh ips through its regional
economi c dev~loprnent throug.h promotio n of actiVIties went into the RDAs, but EP has retained a central national
EP Regional Offices
employm ent and income gencration role on key strategic programm ers.
social and
1'0 achieve national socio-economic intcgration by cxpediting the The RDAs will facilitate investments, including projects encourag
ing public-
contribute Lo
economi c development through promotion of activities that private partnerships. New Regional Capital Funds are to be establish ed.
employment and income generation and The RDAs will market their regions as business locations in conjuncti
on with the
tion of local
To give emphasis to production enhancem ent through identifica invest in Britain Bureau and regional partners.
to the geograph ICal regions. the benefits
resources specitic
f\)r directl) The RDAs will promote technology transfer, including maximizing
3. Labour Party Election Manifesto on Regional Government Demand of the work of the higher and further education institutio ns (universi ties and
regional governm ent so varies across Fngland that it would be wrong to
eketed colleges) in the regions.
to allow the
impose a uniform system. In time wc will introduce legislation The RDAs will make improvements to the skill base of the region,
including
want directl:
people. region by region, to decide in a referendulll whether they developing a regional skills agenda, assessing the contribution of
TEes towards
is estanlish ed
elected regional government. Only where clear popular consent regional objectives and promotin g training for major investments.
rcquire a
\\ til arrangements he madc for elected rcgional assemhlil:s. This \\ould 5. The responsibility of the regional administ rator is to coordina
tor for the regional
system or local governm ent. as pn..' sently exists in
predominantly unitary administration. The main duties and responsibility are:
no additional
Scotland and \Vales, and confirmation by independent auditors that To create the peace safety and hannony in the region
a new tire
public expenditure \vould he involved. Our plans \vill not mean adding To monitor and coordina tor the district administration in the region
of government to the existing English system To make regional; and district administration more transpare ncy
and public
orth and
Source: Labour Party Election Manit\:sto 1997. ljuoted in Cullingw oriented
in sides the
Nadin, 2002
a new regional To care and maintenance the public and government properties
4 The RDAs will provide leadership I developing and impletl'enting regions
upon exist111g
economi c strategy for cach region for 21'1 century, They will build To provides the regular infuriation of the regional security
to the centre
economies.
regional PJrtncrships and develop a fuller understanding of regional government
296 CNAS Journal, VoL 32, NO.2 (July 2005) Revitalization of the Regional 297

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