Nepal among Top 20 Fragile LDC ODA Recipients

Nepal is among the world’s top 20 fragile countries to receive official development assistance (ODA) from multilateral and bilateral donors, according to a new OECD report. The report entitled ‘Fragile States 2014: Domestic Revenue Mobilisation’ informs that Nepal received USD 892 million in ODA in 2011. The report prepared by OECD’s Development Assistance Committee (DAC) totalled the country’s net ODA at USD 8.17 billion from 2000-2011.

 

ODA per capita in Nepal was recorded at USD 29 in 2011. The report has characterised 51 countries (both LDCs and non-LDCs) as the fragile states that are unable to meet their population’s expectations or manage changes in expectations and capacity through the political process. According to OECD, ODA to fragile states declined to USD 53.40 billion in 2011 from record high of USD 67.35 billion in 2005. “Aid has declined by 2.4 per cent in 2011 and will continue its downward trend,” says the report.”Meanwhile, the share of the world’s poor found in fragile states is set to rise to a half by 2018.”

 

These countries saw a total inflow of ODA at USD 547.19 billion from 2000-2011. Among 51 countries, Afghanistan was the highest recipient, receiving net ODA of USD 45.43 billion from 2000-2011. The warravaged country saw significant increase in foreign financial and technical assistance after the fall of Taliban regime in 2001.

 

Pakistan also received note worthy amount of ODA over the last decade with USD 28.51 billion being allocated to it. Bangladesh and Sri Lanka, meanwhile, acknowledged net ODA of USD 19.76 billion and USD 9.02 billion respectively. OECD listed Afghanistan, Democratic Republic of Congo, Ethiopia, Pakistan and Kenya as the top five fragile ODA recipients in 2011. Similarly, the global economic body noted United States, European Union, International Development Association (IDA), United Kingdom and Japan as the top five ODA providers to fragile states in 2011.

 

The report informed that Nepal received a net country programmable aid (CPA) of USD 10.25 billion from 2000-2013. Similarly, OECD’s outlook projected that the country will receive USD 3.08 billion in CPA during 2014-2016. However, aid inflow in Nepal is seen fluctuating as the country witnessed a 5 per cent decline in CPA in 2010-2011. In 2008-2009 Nepal observed a sharp rise in CPA by 32 per cent followed by a 1 per cent increase in 2009-2010.

 

Nepal among the Weakest in Securing Property Rights

Nepal is among the weakest countries in terms of securing property rights, a latest global report shows. According to the International Property Rights Index (IPRI) 2013, published by Washington DC based Property Rights Alliance (PRA), Nepal ranked101 among 130 countries in the overall index. Nepal stood at the bottom in Asia region, where the country ranked 15 among 18 Asian countries.

 

The index comprises of three key sub-indexes: Legal and Political Environment, Physical Property Rights and Intellectual Property Rights. The overall grading scale of the IPRI ranges from 0 to 10, where 10 indicates the highest value for a property rights system and 0 the lowest value within a country. Similarly, Nepal also fell among the weakest in securing intellectual property rights. With a score of 4.2 points, Nepal ranks 95 in intellectual property rights sub-index. It also fared poorly in terms of protecting intellectual property rights, patent protection and copyright protection.

 

Likewise, Nepal ranked 113 in legal and political environment sub-index with a meagre score of 3.3 points. The country’s performance in judicial independence, rule of law, political stability, and control of corruption were also seen below par in the index, according to the report. However, Nepal performed better in physical property rights sub-index where it scored 6.0 points and ranked 68. In terms of protecting physical property rights the country scored a mediocre 5.0 points. Meanwhile the country performed strongly in registration of physical properties with a score of 9.5 points and achieving 6th spot among 130 countries in the index.

 

The IPRI 2013 has placed Nepal’s southern and northern neighbours - India and China on 57th position in the index. Sri Lanka, Pakistan and Bangladesh ranked 76, 118 and 126 respectively. According to the report, Singapore is the highest-ranking Asian country (rank-7, score-8.1 points). Finland, Sweden, New Zealand, Norway, Netherlands and Switzerland dominated the top-five spots whereas, Bangladesh, Libya, Venezuela, Burundi and Haiti were the bottom-five countries in IPRI 2013.