NEPAL IN RESULT-BASED MANAGEMENT
Ram Kumar Shrestha
Former Permanent Secretary
Ministry of Local Development
Government of Nepal
1. Introducing MfDR Tools
Nepal, supported by many donor communities, has already introduced a
Poverty Reduction Strategy Paper (PRSP), Periodic Development Plan, a
Medium Term Expenditure Framework (MTEF), a Poverty Monitoring and
Analysis System (PMAS) to support MfDR. Result-based log frame,
Business plan, Linkage between planning and budgeting, and Base line data
for performance indicators are in practice for Operational zing MfDR.
2. Following MFDR Process
2.1 Setting Institutional Objectives
Institutional objectives are normally guided by vision and goal of the
organization, and linked with national periodic Plan. Setting objective is the
first step in Results Matrix. Some organizations set objectives only whereas
some organizations set primary as well as supporting objectives too.
2.2 Establishing linkage between Result chain and Performance Indicators
Impact
→
Outcome →
Output
→
Input
The importance of Result chain is realized. However, the tendency in
shifting from traditional planning (input focused) to Result Chain (output
focused) is not encouraging.
2.3 Deciding Performance Indicators
Every result chain is linking with performance indicators. And, performance
is linking with monitoring too.
Result
Impact
Outcome
Output
Input
Chain→
Indicators →
2.4 Linking Performance Indicators and Monitoring
Sectoral Objective of Indicators Base
Progr %
Office
Project
line
ess
Required data
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Traditional Monitoring system was linked to annual work plan only.
Differing to it, now performance indictors is selected and linked with
monitoring. District Poverty Monitoring and Analysis system is there to
identify poverty monitoring indicators, collect data and information, process,
analyze and disseminate them.
2.5 Linking Problems and Solutions
How problems are linked with solutions can be seen by following matrix.
Main
Reason
Reason for
Attempt for
Expected
problem
reason
solution
result
Lack of
Lack of
Old pipeline Search for
Sufficient
drinking
source and
and faulty
new source
drinking
water
poor
distributive
and control
water will be
management system
of leakage
available
2.6 Strengthening District Information and Documentation Centre
Earlier information and data have upward movement. There was no system
of store, analyze and manage. Currently, District Management Information
system (DMIS) is established. It has horizontal and vertical linkage. DMIS
works as: Understanding → Establishing Working Unit→ Problem
Analysis → Orientation → Indicator Selection → Review → Format
preparation → Network → Establishing Data Bank → Report.
2.7 Monitoring system
A. Monitoring Mechanism
VDC
DDC
MP
MoLD
NPC & MoF
B. Total Performance Monitoring check list
Yes
Service
delivery
No
Remark
Particulars of check list
Provision of all party committee in Monitoring and Evaluation committee
has not been functioning well. There are chances of budget freeze.
Formation of High Level Restructuring Commission to make local bodies
more functional and effective is in process. Use of operational performance
indicators and base line data, and arrangement of adequate physical and
facility and manpower is required. Monitoring and Evaluation information
hardly incorporated in the decision making process. Representation of
women and deprived community should be included in monitoring process.
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3. MfDR for Ensuring Service Delivery
3.1 Mobilization of domestic resources
Too many demands at the settlement level and weak prioritization have led
practice of spreading scarce resources in many projects. Many on going
programs are existed for long period which are not benefited to people.
Allocating of all capital funds for one single project is affecting other
development activities. Projects, that bring quick return and change in the
people’s livelihood, should be prioritized. Poor resource mobilization is also
caused by absence of elected representatives.
3.2 Donor Harmonization
All the donor supported projects should be executed having understanding
and coordinating with donor partners. For maintaining donor harmonization
series of discussion have been done before and after executing projects.
Monitoring is also done jointly.
3.3 Political commitment
Absence of political commitment but political interference has been main
problem. Due to the unstable political situation commitments have been
limited only in words and in writing.
3.4 Development ofPartnership
Initiation has been taken in establishing Common Basket Fund so that all
types of capital grant (government and donor community’ grant) release
through one
door. Large number of development agencies bilateral,
multilateral, INGOs have committed to assist in the development activities.
However, donor support should not be dominated by their interest.
3.5 Civil service Incentives
Civil service incentive is essential to make service delivery more effective,
efficient
and non-corrupt. Last few years a financial incentive of up to
200% has been given to some revenue field offices if they achieve target to
100% or more than that. Surprisingly, some offices are even getting regular
financial allowance to make staff retain there because it has no other
charming. Is it not misuse of resources? Incentive should be linked with
expected outcome and that outcome should be reliable.
3.6 Participatory Planning and Policy formulation
S. Activitiy NPC
MoLD
Sectoral
N.
Ministry
Local Body
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Participatory planning process is weak although National Planning
Commission to Local body is involved. Process is delayed due to lack of
consensus among major political parties. Allocation of fund for gender
balance and disadvantaged group according to Local Self Government Act is
not followed. DDC lack professional capacity to provide technical
backstopping to VDC in plan formulation. Women, deprived and
marginalized group hardly participate in this process.
4. Challenges for result-based management
4.1 Improve Personal management
Lack of training and strong reward and punishment system, too many
directives, high administrative cost, poor accountability, poor physical and
human capacity, unsecured situation from terrorist and criminal groups have
spoiled working environment.
4.2 Improve Financial Management
Low absorptive capacity due to delay in convening district and village
council has caused budget lapse. Central directives for matching fund to
VDC have created budget inadequacy for the locally agreed project. Central
procurement system is not reflecting need and priority of VDC. Too many
bank accounts (up to 18 different accounts in DDC), incomplete financial
guidelines and lack of training have hampered in smooth implementation.
4.3 Improve devolution in package
Holistic approach for the promotion of decentralization, devolution on
package, use of decentralized management information is lacking.
5. Progress in MfDR in Local Level
Efforts have been undertaken by DDC in regard to MfDR. Sectoral
Devolution Strategy, District Periodic Plan, District Transport Master Plan,
District Development fund, Public Private Partnership Policy, NGO
Mobilization Procedures, Formula-based grant allocation, Capacity
Development strategy, Minimum Condition and Performance Measurement,
Poverty and Social Mobilization Mapping and E-governance are in place.
THANKS YOU FOR YOUR KIND ATTENTION
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