Case 2: Read the following text carefully and answer the questions given below:

According to national planning commission, Nepal will have to invest around 49 percent of gross
domestic product during the period from 2016 to 2030 in order to achieve sustainable
development Goals (SDGS). The commission reports that the country will have to invest an
estimated Rs1,700 billion per year till 2030, or around 68 percent of the gross domestic product
(GDP) of 2016/17.
SDGDs- a follow-up on millennium development goals (MDGs) which expired in 2015- are a set
of 17 goals and 169 targets covering a broad rang of sustainable development issues, including
ending poverty and hunger, good health , quality education, and inclusive and sustainable
consumption patterns among others.
Nepal’s public sector is expired to contribute 55 percent of total investment required while the
private sector is expired to contribute around 21 percent of the investment. The households,
cooperatives, non-government organizations are expected to contribute remaining amount.
Most of the public investment will go towards poverty reduction, followed by agriculture, health
, education, gender, water and sanitation, transport infrastructure , climate action, and
governance. The public investment requirement is expected to be the lowest in tourism followed
by energy, industry, and urban infrastructure, mainly housing, where private and household
investment will be required.
The private sector is expected to contributed about RS382 billion per year to meet the SDGs and
house holds are expected to finance up to 5 percent of the total SDG investment requirement,
which comes around Rs88.5 billion per year. The incremental financing resources of
cooperatives available for SDGs are estimated at about Rs25 billion annually, while NGOs are
expected to mobilize about Rs.20 billion per year to meet the SDGs.
‘’But all the government’s revenue and private sector investment will not be sufficient to attain
SDGs by 2030, requiring huge amount of foreign aid,’’ the report said. The inflow of foreign aid
will have to double from existing levels to meet the SDGs, which will raise country’s
dependence on overseas development assistance (ODA). It implies Nepal's dependence on
foreign aid will go up sharply in the coming years,
There are other challenges of for low-income country like Nepal, which has limited resources.
As the country embarks on implementing a new federal structure of governance, a prominent
challenger will be to quickly mainstream SDGs into the provincial and local level planning and
budgeting systems. In addition to the realignment of polices, financing challengers will loom
large, particularly to trigger and sustain job – creating economic growth, enhance the quality of
social service provision and to invest adequately to reduce risk from disasters.
Meeting the SDGs would require Nepal to have a stable political environment with predictable
policies that can usher in developmental reforms. The induction of educated and skilled planners,
researchers and policy experts into the system of governance would be essential in realizing
SDGs. More importantly, the policy markers and administrators of Nepal should be able to
establish various institutional structures and processes to facilitates the work.
Case 2: Read the following text carefully and answer the questions given below:

Questions:

1. Discuss the major hindrances of achieving SDGs for Nepal.

Answer:
The Sustainable Development Goals (SDGs), otherwise known as the Global Goals, are
universal call to action to end poverty, protect the planet and ensure that all people enjoy
peace and prosperity. Nepal has identified 17 Goals (No Poverty, Zero Hunger, Good
Health, Quality Education, Gender Equality, Clean water and sanitation, Renewable
Energy, Good job and economic growth, Industry, Innovation and Infrastructure,
Sustainable cities and communities, Responsible consumption, Reduce Inequalities,
Climate Action, Life below water, Life on Land, Peace and Justice ,Partnership for
Goals) build on the successes of the Millennium Development Goals, while including
new areas such as climate change, economic inequality, innovation, sustainable
consumption, peace and justice, among other priorities. The goals are interconnected –
often the key to success on one will involve tackling issues more commonly associated
with another.

Nepal faces major hindrances in achieving SDGs.

a. Nepal has limited resources.
Nepal will have to invest around 49 percent of gross domestic product during the
period from 2016 to 2030 estimated Rs 1,700 billion per year till 2030, or around
68 percent of the gross domestic product (GDP). The government’s revenue and
private sector investment will not be sufficient to attain SDGs by 2030, requiring
huge amount of foreign aid.
b. ODA(overseas development assistance)
The inflow of foreign aid will have to double from existing levels to meet the
SDGs, which will raise country’s dependence on overseas development assistance
(ODA). It implies Nepal's dependence on foreign aid will go up sharply in the
coming years.
c. Federal system
Federal system is new to Nepal. Nepal need quickly mainstream SDGs into the
provincial and local level planning and budgeting systems.
d. Realignment of polices and stable political environment with predictable policies
can usher in developmental reforms.
e. The induction of educated and skilled planners, researchers and policy experts
into the system of governance would be essential in realizing SDGs.
Case 2: Read the following text carefully and answer the questions given below:

2. Give your option about the suitable of taking foreign loans for the achievement of SDGs.
Answer:
Overseas development assistance (ODA) consists of disbursements of loans made on
concessional terms (net of repayments of principal) and grants by official agencies of the
members of the Development Assistance Committee (DAC), by multilateral institutions,
and by non-DAC countries to promote economic development and welfare in countries
and territories in the DAC list of ODA recipients. By convention, ODA flows comprise
contributions of donor government agencies, at all levels, to developing countries
(“bilateral ODA”) and to multilateral institutions. It includes loans with a grant element
of at least 25 percent (calculated at a rate of discount of 10 percent). Net official
development assistance and official aid received (current US$) in Nepal was reported at
1065920000 USD in 2016, according to the World Bank collection of development
indicators, compiled from officially recognized sources. Nepal's External finance in the
form of ODA for financing public expenditure has declined over the years. Net ODA
flows as compared to GNI per capita in Nepal are lower than almost all other countries in
the same income bracket. Accordingly, the Government of Nepal has significant potential
to raise more finance from ODA grants and concessional lending, primarily by increasing
the capacity to utilize the finance offered and by accessing other and new concessional
arrangements from other sources such as global programs and funds. Nepal has an
opportunity to qualify for larger volumes of this source of concessional funding provided
it can raise the capacity in planning and implementation.
Foreign aid provides necessary resources for countries to fight local issues that may
affect their quality of life. Issues that foreign aid helps to combat include terrorism, HIV
and AIDS, and narcotic addiction. Foreign aid can also be used to improve agricultural
processes, develop local support resources, and provide training for local populations so
they don’t have to continually rely on aid to have a good life. It provides essential
resources for survival at a moment’s notice so that recovery can begin. At the onset,
foreign aid is there to save lives particularly during calamities and disasters, like in the
case of natural disasters. Foreign support directed towards agriculture helps farmers and
increase food production, which leads to better quality of life and higher quantity of food.
Industrial development projects supported by foreign aid create more jobs, improve
infrastructure and overall development of the local community. Some less developed
countries do not have the ability to maximize their otherwise rich natural resources, but
with foreign support, this is possible. Less privileged communities benefit from foreign
aid aimed at providing clean water and sanitation facilities, which reduces risk of
contracting infections and diseases.
However, there is disadvantage in ODA. It Increase Dependency on donor countries.
There is likelihood that foreign financial support do not reach their rightful recipients, but
go to the hands of corrupt political officials. A donor country may place economic and
political pressure on the receiving country, forcing them to return the favor. It Overlook
Small Farmers. Most development may only benefit large corporations and already-
wealthy employers, and not the people who do not have jobs or proper livelihoods.
Foreign aid is sometimes given to a country or recipient to benefit foreign-owned
Case 2: Read the following text carefully and answer the questions given below:

corporations and entities. So the help is not actually directed to the less fortunate, but to
its own people. When there is development and progress, there is inflation, which causes
prices of commodities to increase, making the poor people more deprived.

There are both pros and cons on overseas development assistance. The assistance has to
be utilized in proper manner with maximum benefit to the country. The fund must
properly monitor and manage the flow of foreign aid so that they reach the people who
need it, and not go right into the pockets of corrupt and greedy entities.

3. Do you think that the private sector will be able to invest as expected? Give your logic.
Answer:
Nepal is land of opportunity. Though Nepal has abundant potentialities for investment in
agriculture, tourism and energy, such potentialities have not been tried much to bring
additional foreign investment to home. The private sector is expected to contribute about
RS382 billion per year to meet the SDGs. The households are expected to finance up to 5
percent of the total SDG investment requirement, which comes around Rs88.5 billion per
year. There is potential for an interest in further private sector investments—from both
domestic and foreign sources—especially in such sector of Nepal’s comparative
advantage as hydropower, agriculture, and tourism. There is increase in foreign direct
investment (FDI) from $ 38.42 million in fiscal year (FY) 2009 to $113.92 million in
FY2012. Opening up new sectors to the private sector will also attract more FDI, which
is low compared to other low income countries, although this will require that key
constraints for private sector entry and operations are addressed. Private sector need
rewards, incentives and opportunities, instead of only obligations, the private sector in
Nepal was capable of taking development at the grassroots level. From creation of jobs to
investment on enterprises, private sector can mobilize resources to end poverty as well as
achieve all goals pursued by the world. Nepal’s private sector is dominated by small- and
medium-scale enterprises, which comprised more than 90% of the total registered
businesses and accounted for about 22% of GDP in FY2012. The World Bank’s Nepal
Enterprise Survey 2009 shows that about 60% of the formal nonagricultural private sector
is in wholesale and retail business, followed by 15% in hotels and restaurants, and 12% in
manufacturing. These sectors contribute 13%, 15%, 2%, and 7% to GDP, respectively.3
Construction activities have greatly increased and now account for 6% of GDP
I believe Private sector will be able to invest as expected. Nepal can boost sustainable
investment and accelerate productivity with a comprehensive growth strategy that focuses
on enabling the private sector and removing constraints to competitiveness by focusing
on five priority sectors—tourism, agribusiness, education, health, and information
technology. Nepal has made considerable progress in reducing poverty—from 46 percent
in 1996 to 15 percent in 2011—but remains one of Asia’s poorest and slowest-growing
economies. Over the past 20 years, Nepal’s real GDP growth rate has hovered around 4
percent per year, 2.5 percentage points below the South Asian average. Remittances from
Nepalese working abroad play a significant role in the country’s economy, accounting for
26 percent of the GDP in 2017, but can fluctuate greatly because of shifts in global
Case 2: Read the following text carefully and answer the questions given below:

economic conditions. Domestic expenditures financed by revenue is estimated to reach

80 percent. For meeting the private sector investment financing gap, foreign direct
investment (inward stock) is expected to increase to 20 percent of GDP in 2030 from less
than 3 percent in 2015. Private sector becomes more viable and immense, it has the
capacity of changing economic scenario of the country via creating jobs, increasing
economic activity, domestic production promoting domestic consumption, which would
in turn support in retaining the high number of migrating youths with in the country and
increase the tendency of achieving economic efficiency

4. Write how implementing a new federal structure of governance would obstruct the
achievement of SDGs.
Answer:
Politically, however, Nepal today is a progressive country, propelled by the democratic
mass movements of 1950, 1990 and 2006, heading in earnest towards building an
inclusive state that is representative of its diverse people. The landmark constitution of
2015 envisions a bold reshaping of statecraft and nationhood. It defines dozens of
fundamental rights of citizens, and federates a unitary state into seven provinces for
greater political and economic inclusiveness. As Nepal federates itself into seven
provincial and 753 local governments, much of the burden of SDG implementation will
shift towards sub-national governments. Localization of SDGs is important for several
reasons. Vital public services, which form a social core of the SDGs, are now the
responsibility of the province and local levels, such as basic and secondary education,
primary health care, water supply and sanitation, agriculture, basic infrastructure, and
social security. Mandated transfer of revenue and other resource mobilization authority
given by the constitution to the provincial and local government’s means that sub-
national governments will have increased resources to fund SDGs. Given the uneven
development achievements, prioritization and sequencing of SDGs can now be better
tailored to local contexts. Local people’s participation and effective service delivery can
be best assured when the SDGs are implemented at sub national levels. And fifth,
“leaving no one behind” and ensuring equity in development outcomes require targeted
interventions at pockets of poverty and deprivation; this is a task best handled when
information and peer-monitoring is leveraged locally.

If this balance is not maintained, this can obstruct the achievement of The Sustainable
Development Goals (SDGs).
Case 2: Read the following text carefully and answer the questions given below:

5. What are the major ways forwards for Nepal in achieving SDGs? Discuss.
Answer:
Nepal has committed to achieving the UN Sustainable Development Goals but this will
be no easy task. However, achieving these ambitious goals will depend not only on the
central government. The newly formulated Constitution of Nepal has devolved
responsibilities to provincial and local governments, mostly related to aspects of poverty,
agriculture, basic healthcare, education, and water and sanitation. In addition, civil
society and the private sector must also take ownership of the development agenda in
order to make a meaningful difference to people’s lives.
Some of the major ways are as follows:
a. Balanced growth
The need of the hour is implementing a people-centered development strategy to
achieve balanced growth. A harmony between the economy, environment and society
is a must to attain these lofty ideals. To this end, the state must put development
issues at the core of the policy agendas and create an enabling environment for
working consistently to meet the globally agreed goals.
b. Expand economic opportunity and pro-employment growth
To achieve broader and more inclusive development, where income growth for the
bottom 40 per cent of the population is higher than growth in GDP (SDG 10), Nepal
needs to develop an ecosystem that generates opportunities at all levels where the top-
line economic performance is translated into benefits at the bottom through
employment, education and security. This means focusing beyond redistribution
towards a broad-based expansion of economic opportunity. Lack of opportunities has
already resulted in large numbers of young Nepalese moving abroad to work. Those
left behind are mostly in low skilled informal employment, something ILO describes
as sporadic, poorly paid and falling outside the protection of law. It is high time that
the country capitalizes on the youth bulge in its demographic structure. It should
introduce the pro-employment growth policies that can accommodate the stock of
skilled and semi-skilled young people joining the labor force annually, facilitate the
transition from informal work to formal work, and improve industrial relations in the
economy
c. Share responsibility: public, private and cooperatives
Private sector, cooperatives and households participate will have a major bearing on
whether SDGs can be realized. The private sector is already beginning to link
investments to sustainability objectives, apparent from private sector adoption of
inclusive business approaches, green innovation, emissions reduction, and impact
investing practices. To foster greater private sector interest in sustainable growth, the
country must muster a common will between public and private, and produce a
tangible output by enacting a Public Private Partnership (PPP) policy, and Viability
Gap Funding (VGF) mechanisms. Moreover, there needs to be a shift in attitudes, and
acceptance that responsibilities will have to be shared.