Nepal and World Bank : Nepal joined WB on 06 September 1961. Poverty reduction is the main objective underlying the WB’s activities in Nepal. It assists in its developments with funds and analytical and advisory work. It has offered interest free credits of over USD 1.3 billion. It provides Nepal with loans with the interests of 6-7%. Its areas of assistance include education, health, forest management, irrigation, telecommunication, power generation and other many projects. Other areas of the World Bank support to Nepal consist of rural development, infrastructure macroeconomic reform, private sector development, decentralization and donor coordination.
The World Bank has carried out a number of activities in Nepal. They are; chairing the meeting of the Nepal Development Forum (NDF), engaging NGOs and civil societies in bank funded projects, supporting the agricultural perspective plans through lending and policy advice, financing irrigation projects in Terai, reviving community torestry, education reform, helping set up dry ports, etc.
The volume of the WB’s assistance to Nepal since 1969 has been considerable. But, in terms of the output it has not been so effective, mainly due to lack of ownership, accountability, and sustainability. High interest rates and the harsh conditionality attached to the loans are other reasons for the assistance not being productive.