1. GOVERNANCE IN NEPAL: CONTEXT, ISSUES AND CHALLENGES Trilochan Pokharel, tpokharel@nasc.org.np

2. Session Objectives Governance, NASC 2015 2  Explain the key actors of governance  Explain the characteristics of good governance  Analyze governance issues and challenges in the changing socio-political context

3. Presentation outline Governance, NASC 2015 3  Reimagining governance  Government and governance  Governance actors  Governance status in Nepal  Issues and challenges

4. Governance, NASC 2015 4 Review of governance status of Nepal

5. Governance, NASC 2015 5 Governance Characteristics IssuesActors involvedExplanation Participation Rule of Law Consensus Oriented Equity and Inclusiveness Transparency Accountability Responsiveness Effectiveness and Efficiency

6. Context Governance, NASC 2015 6 Nepal has everything in place. It has abundant natural resources, a large workforce ready for shouldering development agenda, democratic institutions and practices, supportive international community, historical political changes etc. The only thing we do lack is effective governance. Hence, we are in serious 'Governance crisis'.

7. Understanding governance Governance, NASC 2015 7 World Bank (1991) the manner in which power is exercised in the management of a country's economic and social resources for development World Bank (2006) the traditions and institutions by which authority in a country is exercised

8. Understanding… Governance, NASC 2015 8 UNDP (1997) Governance is the exercise of economic, political, and administrative authority to manage a country’s affairs at all levels. It comprises the mechanisms, processes, and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations and mediate their differences.

9. Understanding... Governance, NASC 2015 9 Turke (2008)  Structure- systems, processes, institutions…  Actor- policy makers, public service providers and government…  Synthesis- combination of both

10. Reimagining governance Governance, NASC 2015 10 Policy Decisions Citizens Governance system

11. Pillars of governance Governance, NASC 2015 11 Participation Rule of Law Consensus Oriented Equity and Inclusiveness Transparency Accountability Responsiveness Effectiveness and Efficiency Good Governance Information and Communication Technology

12. Government and governance Governance, NASC 2015 12  Role overlap  Power holding vs service delivery  Power - by nature undemocratic, upholding and restrictive  Democratic institutions and systems induce democratic exercise of power

13. Actors of governance Governance, NASC 2015 13  Change in governance philosophy- governance beyond government State Market Civil Society Mobilizing people’s participation, promoting constructive engagement Creating favourable political, legal and economic environment Creating opportunities for people

14. Governance… Governance, NASC 2015 14  However, inherent characteristics of governance actors remained intact  Serious gap between demand and supply  Emergence of intermediary

15. Actors… Governance, NASC 2015 15 State People

16. Actors Governance, NASC 2015 16 State Intermediary People

17. What democratic value is here? Governance, NASC 2015 17

18. Governance status of Nepal Governance, NASC 2015 18 Source: World Bank, 2014 Worldwide Governance Indicators.

19. Issues and challenges Governance, NASC 2015 19  Low accountability, responsiveness and transparency  Rampant corruption  Non-inclusive governance  Low credibility of public institutions  Over politicization in governance practices  Low innovation in governance system

20. Issues Governance, NASC 2015 20

21. Issues… Governance, NASC 2015 21  Strengthening state institutions

22. Issues… Governance, NASC 2015 22  State-people interface - constructive engagement

23. Ways… Governance, NASC 2015 23  Promoting accountability, responsiveness and transparency

24. Story of a common man Governance, NASC 2015 24

25. Strengthening state-people relationship Governance, NASC 2015 25 State Interme diary People

26. Issues Governance, NASC 2015 26  Maintaining ethical standards  Using politics for improve service delivery  Rule of law  Inclusive governance  Innovative governance- use of technology

27. Reinforcing Governance Functions Governance, NASC 2015 27 Policy Citizens Gover nance System Political parities and environment Bureaucratic systems and culture International context Culture and social values Integrity Leadership Strategic Thinking

28. Enhancing Governance- A Framework Individual (Service Provider) Institution (Structure and system) Collective (Society, WPEs, Community of Practice) Collective (Society, WPEs, Community of Practice) Social Accountability Capacity building Empowerment, awareness, experience sharing Revisit, restructure Improved public service delivery ® NASC 2013 Governance, NASC 2015 28

29. Governance, NASC 2015 29 Thank you