Denmark’s Partnership with Nepal

Published by:Embassy of Denmark in Nepal761 Neel Saraswati MargP.O. Box 6332Lazimpat, Kathmandu

Tel: +977(1)4413010 Fax: +977(1)4411409 Email: ktmamb@um.dk

Text: Maja Kaalund Bygvrå, Pernille KristensenPhotos: Jan Møller Hansen, Ingrid Dahl Madsen, Maja Kaalund Bygvrå, Danida, CKU, Rajneesh Bhandari, Anine Hagemann, Tess Thurøe

Nepal is one of the least developed countries in the world and is struggling to overcome the legacy of a decade long armed conflict, which ended in 2006. Denmark has had a partnership with Nepal since 1989. Through this long-term collaboration, the aim has been to contribute to poverty reduction, respect for human rights, deepen democracy, and supporting green and inclusive growth.

The current post-conflict phase is a historic moment of transition and change, and Denmark provides around EUR 25 million in development assistance to Nepal every year, in addition to the support from the Danish civil society and the private sector.

The aim with this brochure is to provide an overview of the current Danish development assistance to Nepal within the timeframe of 2012-2018. The following programmes will be described:

• Peace, Rights and Governance Programme

• UNNATI – Inclusive Growth Programme

• National Rural and Renewable Energy Programme

• Culture Development Programme

• Building Stronger Universities and South Driven Development

Research Programme

• Danida Business Explorer and Danida Business Delegation

Introduction

Denmark has supported the peace process, human rights and good governance in Nepal since the early 1990s. Today, Nepal is still one of the least developed countries in the world and is facing democratic and human rights challenges.

The Peace, Rights and Governance Programme is designed to face these challenges, to support the

state and the civil society, and to build partnerships between the two. The aim is to foster social cohesion and improving access to justice and public services in rural areas, and thereby help Nepal ensure political stability and peace.

The programme is divided into three components:

Peace, Rights and Governance Programme Time Frame: 2014-2018 Budget: EUR 27 million

Local GovernanceWe support civil society organisations and local government institutions to improve service delivery, such as access to health care, citizenship- and birth registration, and contribute to citizen empowerment.

Access to Justice and Human Rights We work from a human rights-based approach and support organisations that empower marginalised communities to demand access to education, work, and non-discriminatory behaviour from government officials. We also support national institutions to ensure that human rights are protected and respected in

accordance with international obligations and norms. In addition, the aim is to develop a more accessible justice system and better regulated alternative dispute resolution system.

Peacebuilding and Democratic Development We engage in dialogue with the Government of Nepal, political parties, and civil society on challenges and opportunities of consolidating peace in Nepal. Denmark urge all partners to show flexibility and willingness to compromise in order to build trust and forge consensus across the political divide to ensure that the peace process will be brought to a successful conclusion.

Partners: Nepal Peace Trust Fund, Ministry of Federal Affairs and Local Development, National Human Rights Commission, Governance Facility, Supreme Court and Ministry of Law, Justice, Constitution Assembly and Parliamentary Affairs, Kathmandu School of Law, National & International NGO’s, Ministry of Peace and Reconstruction, Election Commission, United Nations Development Programme.

Agriculture is the corner stone of the Nepali economy, providing livelihood for three-fourths of the population and accounting for about one-third of the gross domestic product.

UNNATI means “prosperity” or “progress” in Nepali, and the programme helps farmers and agriculture entrepreneurs in Eastern Nepal to sell and earn more, both regionally and globally, by improving

the value chain and getting access to better finance, technology, and infrastructure.

The programme is divided into three components:

Value Chain UNNATI focuses on the commercialisation of the value chains within ginger, dairy, tea, and cardamom products. The

UNNATI – Inclusive Growth Programme Time Frame: 2014-2018 Budget: EUR 54 million

programme assists farmers to increase their competitiveness by improving product development, processes, production, marketing, sales, and distribution. This leads to higher yields and better quality so the products can be sold for more money and increase exportsIn addition, access to finance is a major constraint for commercialisation of the agricultural sector. UNNATI, therefore, focuses on creating financial services for smallholder farmers and Micro, Small and Medium Enterprises.

Infrastructure A major challenge that farmers in Nepal face is the country’s poor infrastructure. Getting products to markets is by no means an easy

task. Therefore, UNNATI focuses on supporting local government‘s effort to improve infrastructure so farmers find it easier and cheaper to get their products to markets.

Enabling EnvironmentWe aim to create inclusive settings for growth and innovation by strengthening forums where the private and public sector can enter into a dialogue on policy issues. This will lead to increased investments and emphasise on corporate social responsibility, human rights, and labour rights. In addition, it will create job opportunities for some of the many thousands of young people that leave Nepal every day in search of jobs abroad.

The UNNATI programme assists farmers to produce high quality tea in remote areas of Nepal, along with creating better export opportunities.

Geographic Focus: Ilam, Panchthar, Dhankuta, Sankhuwasabha, Tehrathum, Taplejung and Bhojpur

UNNATI goals by 2020:

• 100,000 households with additional income • 24,000 farms and enterprises financially benefited • 240 additional full time jobs• Improved living standards

Partners: Ministry of Agricultural Development, Department of Local Infrastructure and Agricultural Roads (Ministry of Federal Affairs and Local Development), Management Contractor – Orgut, United Nations Capital Development Fund, District Technical Offices and District Development Committees, Nepal Rastra Bank, International Labour Organisation and Nepal Business Forum

National Rural and Renewable Energy Programme

Time Frame: 2012-2017 Budget: EUR 27 million

The Government of Nepal is struggling to provide energy to its citizens. For more than ten hours a day the capital, Kathmandu, is without electricity, and many communities in the rural areas still do not have access to electricity.

We support green and renewable energy such as home solar power, hydro power, improved cooking stoves, and biogas installations. The aim is to reach the poorest and most remote parts of the country. This will contribute to improved living standards and increased

employment. The programme has a decentralised structure and strong partnerships with NGOs, local authorities, and the private sector and it is funded through subsidies, credit, and technical support.

Over the last twelve years, more than 1 million households have gained access to renewable energy, which has created green jobs and helped families to better health. With the current programme the aim is to reach an additional 1 million households with renewable energy within the next five years.

Partners: Alternative Energy Promotion Centre, Ministry of Science, Technology and Environment.

Expected major results:

• 150,000 households benefitting from community electrification • 600,000 solar home systems • 475,000 improved cooking stoves • 130,000 biogas household systems

Denmark-Nepal Culture and Development Programme

Time Frame: 2014-2016 Budget: EUR 1 million

The Danish Centre for Culture and Development is managing the culture programme in close collaboration with the Embassy of Denmark. We support organisations, artists, and cultural entrepreneurs that can contribute to widen the access to cultural activities, promote Nepali role models, and create job opportunities for young

people. This is done, among others, through spoken word workshops and performances where young people are encouraged to express themselves publicly, through TV- and radio productions, and street art projects that identify local heroes. Currently, we have partnerships with these organisations:

Cultural Partners:

Photo.circle brings photographers and other visual storytellers together to document and engage in social change in Nepal through workshops, publications, and exhibitions.

Word Warriors is a group of young poets leading the spoken word movement in Nepal. The group arrange events, competitions, and workshops all over Nepal to give the youth a platform to express their opinions.

South Asia Communication produce television shows, public outreach programmes, and training programmes for the youth.

Artlab promotes collaboration between artists and designers, and also to empower and involve communities through cultural activities and events. Karkhana is a collective of young engineers, artists, teachers, designers, and scientists dedicated to create interdisciplinary and innovative teaching methods.

Siddhartha Arts Foundation promotes contemporary art and engages the community through debates on social issues.

Denmark has supported the education sector in Nepal since 1992, which has resulted in more children, especially girls, attending and finishing primary school. Currently, we support Kathmandu University in improving libraries, creating study policies and strategies, and we also focus on capacity building and generating quality research. Denmark supports the Nepali education system through two programmes:

Building Stronger Universities is a programme that strengthen the

quality of higher education in Nepal and give the youth the possibility to obtain a good education in their home country.

South Driven Development Research Programme supports research partnerships between Nepali and Danish scholars and provides Master’s and PhD scholarships. Study proposals are selected each year by an independent committee in Denmark supported by prominent Nepali researchers.

Building Stronger Universities and South Driven Development Research Programme Time Frame: 2014-2016 Budget: EUR 1 million

Denmark has facilitated and supported business partnerships between Danish and Nepali companies since 2001. Around 30 partnerships have been established and the majority of these are within the agriculture and textile industry. At the moment Denmark is supporting business development in Nepal through two programmes:

Danida Business Explorer provides financial support to Danish companies that want to investigate specific business opportunities in Nepal.

Danida Business Delegation supports groups of minimum five Danish companies that want to make a joint export promotion or delegation visit to Nepal, or invite a delegation of potential business partners from Nepal to Denmark.

Both programmes focus on contributing to sustainable growth and employment, and responsible business based on the principles of the UN Global Compact and the UN Guiding Principles on Business and Human Rights.

Danida Business Explorer and Danida Business Delegation

Denmark’s engagement in Nepal is based on a human rights-based approach, which means that we especially support people that are marginalised, excluded, and discriminated against. In addition, the principles of non-discrimination, participation, transparency and accountability are integrated in all aspects of our policy dialogue and development cooperation.

It is a priority to harmonise Denmark’s engagement in Nepal with other development partners, such as the EU, the UN, international financial institutions, and other countries that contribute with development assistance in order to achieve the best results. It is of significant importance for

Denmark to ensure Nepali ownership and empowerment in all of our programmes. Hence, we also see the importance of engaging in a conflict-sensitive manner, which involves assessing and understanding the complex context, processes and dynamics in the country in order to maximize the positive impacts of our engagement. Denmark will continue to address challenges of corruption in all our development programmes. We will raise the issue with the Government of Nepal, and through a specific task force on Public Financial Management, in order to further pave the way towards sound economic growth and democratic development.

Guidelines for Denmark’s Engagement in Nepal

Danish Embassy in Nepal761 Neel Saraswati MargP.O. Box 6332Lazimpat, Kathmandu

Tel: +977(1)4413010 Fax: +977(1)4411409 Email: ktmamb@um.dk