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Delivery of Rural Services NEPAL Namaste !. Why Nepal rural services?. Limited ec. and social progress Due to adverse physical constraints and communications difficulties, but also political instability and flawed policies --- > Ineffective inst. arrangements

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Delivery of rural services nepal namaste l.jpg

Delivery of

Rural Services


Namaste !

Why nepal rural services l.jpg
Why Nepal rural services?

  • Limited ec. and social progress

  • Due to adverse physical constraints and communications difficulties, but also political instability and flawed policies

    --- > Ineffective inst. arrangements

  • Half population is poor, mostly rural

  • Services not provided to rural poor

    --- > Hence the focus of the study

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Small farmers need….

  • Agricultural services:

  • new and adapted technologies (research)

  • advice and information (extension)

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Small farmers need….

Infrastructure services : for agricultural production (irrigation)

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Small farmers need….

Infrastructure services :

for market access (roads and bridges)

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Small farmers need….

  • Infrastructure services :

  • to stay healthy and productive (water supply)

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Small farmers need….

  • Infrastructure services:

  • to process products and cottage industries (rural electrification)

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Small farmers need ...

  • Above priority sub-sectors are the focus of the study

  • Prepared 1999/2000 with a Nepali NGO (SAPPROS)

  • Focus on the Tarai region of Nepal

  • Under oversight of National Planning Commission

  • Recommendations were shared/discussed in both national and local level workshops

  • Donor community was involved

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  • service delivery works better when people are empowered


  • establish institutional features of best performing models (underlying correlation between efficiency vs. degree of participation)

  • determine policy conditions for models to work and be upscaled

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Conceptual framework

  • Provisioning and production of services

  • Polycentricity, co-production and competition

  • Public vs. private services

  • Subsidiarity

  • Social capital development

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  • Case study approach: sample of 60 purposely selected case-studies

  • Define and classify services

  • Identify delivery actors and steps

  • Develop generic models

  • Assess performance (efficiency and process=farmer participation)

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Classification of services





Electricity grid distribution












Input supply

Shallow tubewells

Farm specific advice

Corporate roads

Surface water supply/irrigation

Ag. extension

Market information

Strategjc roads

Ag. research (food crops)

Village roads

Res. on agro-forestry




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Key institutional actors

  • Individual end-users/beneficiaries: rural dwellers in the broader sense

  • CBOs: including User Groups and community associations

  • NGOs: national, international, local

  • Decentralized bodies: local governments (DDCs/VDCs)

  • Government agencies: local services of ministries, public agencies and projects

  • Private sector: individual operators, companies or industry associations

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Service delivery cycle

Provisioning stage

- Initiation: formulation of request - Planning: preparation/design - Res. mobilization: funds and others - Resource allocation amongst projects

Production stage

- Project execution/service delivery - O&M: operation and maintenance - M&E: Monitoring and Evaluation

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Measure of performance

Efficiency criteria(scale of 3)

- Service delivery standards - Cost-effectiveness - Impact (output, income…) - Sustainability (fin./inst.)

Process criteria

- User involvement in project/delivery cycle (No. of steps, scale of 6) - Co-production index (total No. of actors in delivery cycle, Scale of 6 x 5)

Sector specific indicators

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Generic models

  • Agency model

  • Local government model

  • NGO model

  • CB0 model

  • Private sector model

  • N.B.: actual models = hybrid

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Funding ……... Delivery









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Agricultural Services:




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Agricultural research

  • in Nepal:

    - agricultural research is mostly applied and adaptive

  • in this study:

    • crop variety selection and improvement

    • breeder and foundation seed production

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Agricultural extension

  • Information about technology

  • Exposure to performance of technology (demonstrations)

  • Practical and cognitive skills

  • Identify problems and opportunities

  • Technical advice to solve problems

  • Market information: prices, demand

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Research: main findings

  • NGO modelfacilitates identification of relevant researchable problems with farmer involvement

  • Public sector fundingis needed for public goods research (food crops) but on competitive basis (funds)

  • Agency/private model effective for industrial crops

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Extension: main findings

  • NGO(best)

    • integrated with other services

    • full participation of clients

    • builds social capital

  • Agency(worst)

    • quality and coverage poor and costly

    • lack transparency

  • Private(OK for special cases)

    • effective for specific types of service

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Recommendations: research

  • Agenda setting by stakeholders

  • Collaborative research (NARC/NGO/private)

  • Public funding of research through:

    • core funding

    • autonomous research fund (competitive)

    • commissioning NGOs for adaptive research

  • Cost recovery for private benefit

  • Capacity building in NGO, private sector

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Recommendations: extension

  • Private sector for private goods

    • capacity building

    • credit for agro-vets

    • regulations to assure quality

  • Private/NGO sector for public goods (subsistence crops)

    • experiment with contracting

  • Industrial commodities (sugar cane)

    • leave to private sector

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Summary findings

  • Strong correlation between efficiency and beneficiary involvement.

  • Pure agency model consistently rates lowest. Agency-managed projects are systematically larger/more complex + involve perverse subsidies + clear lack of accountability and transparency

  • Community-based arrangements rate higher. Not panacea ---> partnerships better. Lack of capacity and social capital need to be addressed.

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Key messages

  • Change paradigm: disengage agencies and get CBOs involved

  • Rely on NGOs and private sector for technical support in service delivery

  • Rely on local (vs. central) government for provisioning

  • Build social capital

  • Better governance/transparency

  • Arrangements to be sector-specific(sectoral funds) and tailored to local circumstances