Nepal, Rapti zone rural area development project mid-term evaluation report

Special evaluation covers the period 8/80-8/83 and is based on document review, site visits, and interviews with villagers and with Government of Nepal (GON) and project personnel. Most activities have only gotten underway within the past 18 months. The Agriculture Development Bank"s Small Farmer Development Program is off to a good start; loans are also being made to individual entrepreneurs. New varieties of wheat have been introduced, livestock and veterinary services are beginning, and adult education is having an impact on attitudes and skills, particularly among women. The Appropriate Technology Unit is actively promoting private marketing of household and farm innovations (biogas units, water turbine mills, etc.). Access road construction is progressing, with some delays, and 58 rural works projects are either underway or planned. Institutional development and training are occurring in the crucial area of district planning and budgeting, and the project financial management system is working well. Other activities include cottage industries, forestry, soil conservation, and renewable resources. While GON policies and actions are generally favorable, improvements in commitment, planning, and action are needed in five areas: (1) ecology - to reverse environmental degradation caused by the household production system and by development in general; (2) institutional trends - the Decentralization Act should be fully implemented, giving districts clear authority and capacity for their development programs, and private enterprise should be encouraged; (3) stronger focus on increasing household income; (4) improved incentives for private enterprise and for government workers; and (5) quick attention to family planning programs to stem the rapid population growth in the zone. With concerted attention to these issues, there is a good chance for accelerated economic growth and justification for a long-term cooperative program. If GON commitment is not forthcoming during the next 2 years, the project should be terminated. Recommendations are made addressing individual project activities and further development needs. Included are GON reactions to the evaluation conclusions.