PDDP has grown to become a model programme of the Government of Nepal in strengthening decentralised local governance and in bringing the grassroots into the mainstream of development for poverty alleviation initiatives. The success of the Programme and the impact it has made at the local level has meant that the model is now expanded in 72 districts (out of 75) of the country. The Programme itself has been expanded from 20 to 30 districts. It started with six districts from its predecessor project-Supporting Decentralisation in Nepal in 1993.

PDDP has demonstrated that strengthening the programming and management capacities of the local bodies, especially of the DDCs, and facilitating functional linkage between them and the sectoral line agencies, and the donors provides the best possible platform for successful implementation of development interventions and use of resources. The core PDDP strategy and structure provides a valuable vehicle and participation of other donors and partners. This was testified by PDDP’s External Evaluation Report too. The programme has helped to enhance the capacities of the local bodies by fostering functional linkages with other donors and their projects. NORAD is already a major partner, having contributed US$ 3.03 million for the expansion of VDP. UNICEF-supported DPCP and other UNDP-supported programmes such as Micro Enterprise Development Programme, Rural Energy Development Programme, Community Owned Primary Education , South Asia Poverty Alleviation Programme, Rural Urban Partnership Programme, HIV AIDs Programme and others have been piggy-backing on the base of social capital formed by PDDP. These programmes are tapping on the socially mobilised communities to channel their development resources. Such coordination efforts have allowed for more effective institutional support, capacity building, and better interaction amongst local bodies and development partners.

A more recent entrant, UNCDF is channelling its resources through Local Development Fund (LDF) into eight districts that are implementing PDDP/Local Governance Programme (LGP). LDF will help to develop an improved system of decentralised financing and has provisions for supporting basic rural infrastructure in the communities, thus complementing the existing activities of PDDP and LGP.

Such linkages and partnerships help to develop stronger impact and synergy on development assistance and thereby avoid duplication of scarce development resources and efforts. The United Nations Country Team’s (UNCT) decision to work together in an integrated manner in Achham , Baitadi and Banke district is another very good indicator of increased integration and linkages between the various stakeholders working for local development.

Further Elaboration of Local Self Governance Act
and its Regulations

PDDP along with LGP have been assisting the government in its decentralisation efforts by supporting the Ministry of Local Development in the preparation of draft by-laws on: (1) Administrative Regulations, (2) Financial Regulations, (3) Procedural Regulations, and (4) Local Trust Fund (LTF) Directives and by-laws, for the DDCs, VDCs and Muncipalities. Once endorsed by their respective Councils, they will be autonomous in their implementation. The LTF by-laws is expected to be the basis for legalising both LTF and COs. It will also practically institutionalise the social mobilisation in the districts and is also expected to be instrumental in further resource mobilisation for poverty alleviation initiatives.

Local Authoritities from the districts of the Western Development Region at group work during the orientation on periodic planning provided by NPC in Palapa

Manual on Periodic Planning

The assistance provided by PDDP/LGP to the National Planning Commission to develop a manual on periodic planning will assist the local bodies in the preparation of their districts’ long-term plans. NPC was also supported in orienting the Regional/district officials on the periodic plan and to solicit their views on its conceptual framework for incorporation into the manual. Implementation of periodic plan along with the provisions made in the Local Self-Governance Act, 1999 will have a powerful influence on district development planning and management as well as on national budget allocation process to the annual district development plans.

Supporting the LSGA

The implementation of the Local Self-Governance Act, 1999, which has incorporated PDDP’s experiences, will practically institutionalise the PDDP approach to promote participatory and sustainable local development in Nepal. In order to make the local bodies more versant with the provisions of the Act and its regulations, PDDP and LGP have supported MLD to provide orientation to the local bodies of 60 DDCs.

"PDDP’s experience has been influential in the formulation and implementation of several policy measures such as institutionalisation of bottom-up participatory development planning process, local level information systems etc. in the Local Self-Governance Act 1999 and its Regulations..."

Deputy PM Mr. Ram Chandra Poudel

"With the Local Self-Governance Act now in place, Nepal is now more advanced than other countries in South Asia as far as decentralisation is concerned."

UNDP Res. Rep Dr. Henning Karcher

Fast-Tracking the Innovative Provisions of LSGA

PDDP is supporting three "pilot" districts to fast-track the innovative provisions of LSGA like assuming sectoral functions and enhancing internal revenue base. To meet this greatly expanded authority and responsibility, DDCs will require substantial capacity-buildingefforts. Another area where further capacity building is required is on fiscal decentralisation. The Financial Regulations, which seeks to guide the budget preparation and streamline the accounting and financial management systems of the local bodies, has just become operative. The experiences gained by these districts from the implementation of expanded authority and responsibility will demonstrate the process and help other districts to assume similar responsibilities for attaining sound, effective and efficient local government. Meanwhile, the user-friendly Accounting and Financial management Package is being amended too as per the provisions outlined in LSGA. Many DDCs are committed to adopt the package for increased transparency and effiency of work operations.