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Development assistance in Nepal

Flag of Nepal

Pillar 3 – Economic Recovery

Overview

Australia is supporting Nepal to reduce the economic impact of the pandemic.  We are working to provide economic opportunities to the most vulnerable and to strengthen government systems that will support Nepal’s longer-term economic development.

In partnership with the United Nations Development Programme (UNDP) we are supporting the Government of Nepal’s Micro-Enterprise Development for Poverty Alleviation program (MEDPA). The program is supporting the creation of micro-enterprises that generate jobs and incomes for the rural poor, women and socially marginalised groups.  

In partnership with the World Bank, we are supporting the Government of Nepal to strengthen its public financial management.  Our work has a regional focus on sustainability through the South Asia Regional program and well as leveraging the benefits of partnering with the private sector through DFAT’s business partnerships platform.

Further information, including situation analysis, expected outcomes, key results and Australia’s broader engagement, can be found in COVID-19 Development Response Plan.

Related initiatives

Technical Assistance for Micro Enterprise Development for Poverty Alleviation Program

$1.1 million, 2018 to 2021

After the twenty years (1998-2018) of successful implementation of Micro-Enterprise Development Programme (MEDEP) supported by Australia and its efforts to institutionalize micro enterprise development (MED) model into government systems and structures particularly during the fourth phase (2013-2018), the country was restructured into federal structure with three levels of governments - Federal, Provincial and Local.

Microenterprise development and supporting poor households to become micro entrepreneurs is now recognized as among the effective strategies for reducing poverty and generating employment in Nepal. Recognizing the effectiveness, the Government of Nepal has internalized MED model into the government system as “Micro-Enterprise Development for Poverty Alleviation (MEDPA)” which has now been rolled out to all 753 local governments. This was possible due to MEDEP’s two decades of involvement to develop and refine the MED model and roll it out nationwide.

Our technical assistance, in partnership with the United Nations Development Programme (UNDP), is helping federal, provincial and sub-national governments to effectively implement MEDPA.

UNDP is working closely with the government officials to roll out the MEDPA program in all 753 local governments through allocations of budgets, provisions of micro-enterprise development policies and guidelines, building the capacities of government officials, and strong collaboration between local, provincial and federal governments.

Additional information on the partnership can be found on the MEDPA website.

Related documents

Name of document Year published
MEDEP Achievements (1998 -2018) 2018
Anthology of 108 Successful Entrepreneurs in Nepal 2018

Public Financial Management Multi Donor Trust Fund

$5.3 million, 2016 to 2026

The Public Financial Management Multi Donor Trust Fund (PFM MDTF) is strengthening the performance, transparency and accountability of public financial management in Nepal. The MDTF is managed by the World Bank and jointly funded by six donors: USAID, European Union and the government of Australia, UK, Switzerland and Norway.

The Integrated PFM Reform Program (IPFMRP), funded by the PFM MDTF, is the Government of Nepal’s flagship program that supports the Government’s agenda to enhance overall fiscal management and governance, strategic allocation of resources and efficiency in use of public resource that contribute to overall macro-economic stability, economic growth and poverty reduction.

Additional information on the partnership can be found on the PFM Multi Donor Trust Fund website.

Related documents

Name of document Year published
Nepal Public Financial Management Multi Donor Trust Fund: Progress Report (January — July 2020) 2020
Nepal Public Financial Management Multi Donor Trust Fund: Progress Report (July-December 2019) 2020
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