The foreign aid which has poured into Nepal in the form of cash, commodities and advisory services has only led the individual Nepalis deeper into poverty. Despite the massive intervention of foreign aid, which makes up 44 per cent of the 1991-92 budget, the per capita income remains a lowly US 170.
Nepal´s transition to democracy was, in part, the result of foreign donors (particularly the United States and several European countries) threatening closure of the aid pipeline unless human rights were respected and repression ended. Subsequently, the major donor have indicated that they will support the democratic Government´s development efforts.
Just because well-wishers arc. willing to pro vide assistance, however. does not mean that we must accept whatever is placed before us. Enough has gone wrong with the giving and taking of aid in the past that, as Nepal seeks to break new ground in the sphere of development, we must analyse the problems encountered in the past.
The preambles of project documents, which govern overall implementation of technical and financial aid projects, are always pro-development and pro- common man. But the day -to -day implementation of projects is quite another story. The discrepancy between theory (project document) and practice (implementation) is caused by many factors, some of which are listed below.