Political Economy of Rural Finance Reform in Nepal: ADB’s Experience
Acharya, Yubraj; Dhakal, Saroj | April 2012
Abstract
This paper analyzes ADB’s rural finance program in Nepal, particularly the support to the Agriculture Development Bank (ADB/N), from a political economy perspective. The relatively smooth transformation of ADBN toward a viable commercial institution so far can be attributed to the congruence of the stakeholders’ policies, the cluster approach, and the strong engagement among the stakeholders led by the project staff. A number of general recommendations are made for more effective ADB interventions in Nepal’s finance sector. ADB should (i) engage only in an area that is clearly on the government’s priority; (ii) engage more proactively with “street actors” including labor unions, while remaining within ADB’s mandate; (iii) modify the modality of engaging consultants; and (iv) continue with the cluster approach at least until the country’s transition is complete.
Citation
Acharya, Yubraj; Dhakal, Saroj. 2012. Political Economy of Rural Finance Reform in Nepal: ADB’s Experience. © Asian Development Bank. http://hdl.handle.net/11540/1385. License: CC BY 3.0 IGO.Keywords
Agricultural And Rural Development
Development In East Asia
Infrastructure Development Projects
Institutional Development
Millennium Development Goals
Policy Development
Social Development Programs
Social Development
Rural planning
Aid coordination
Industrial projects
Infrastructure projects
Natural resources policy
Educational development
Social participation
Political participation
Community banks
Business planning
Infrastructure
Sustainable urban development
Social contract
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