World Bank Releases Interim Strategy For Nepal

The World Bank Group (WBG) has launched a two years Interim Strategy for assistance in Nepal’s transitional phase and peace building. Finance Minister Barsha Man Pun released the strategy named, Interim Strategy Note for Nepal, for fiscal year 2012 and 2013 on October 18 in Kathmandu. The strategy promises to continue WBG efforts to achieve durable peace with investments in development and poverty reduction. “Given the transitional nature of Nepal’s current situation, with a new constitution being drafted and elections to follow, the World Bank Group has prepared a new Interim Strategy Note for Nepal,” reads the press statement issued by WBG. The strategy is formulated considering the Government of Nepal’s Three Year Plan. WBG says, “The interim strategy sets out some basic parameters of the WBG programme but still retains the flexibility to deal with the birth of a new republic. The strategy reflects considerable continuity, building on programs with successful track records that are adapted to local conditions.” The strategy emphasises greater selectivity, focusing on areas considered vital to Nepal’s development and complementing programs supported by other development partners. According to WBG, agriculture, infrastructure and social development are in top priority. The World Bank has decided to allocate US $ 400 million for two fiscal years. The aid will be provided through bank’s International Development Association (IDA), the concessionary financing arm. However, the size of the assistance will depend on Nepal’s good performance and successful economic management, according to WBG. These funds would be invested in four to five new operations per year. Similarly, World Bank has projected Nepal’s Gross Domestic Production growth to remain at three per cent for the fiscal year 2011/12.