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Political impasse makes funding harder to justify: Donor agencies

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KATHMANDU, Nov 23: With protracted political deadlock taking its toll in almost every sector of the country, the donor community on Tuesday raised serious concern over a significantly reduced donor ability to secure future resources for Nepal due to the continued caretaker status of the government, a slackened peace process and lack of development leadership.



Issuing a joint statement, 12 donor agencies -- Asian Development Bank, Canadian International Development Agency, European Union, Swiss Agency for Development and Cooperation, UK Department for International Development, United States Agency for International Development, World Bank and the embassies of Denmark, Finland, Germany, Norway and Switzerland-- said, “Nepal´s unstable political situation has made it increasingly difficult for many donors to justify why Nepal should receive support in a world where there are many competing demands for limited development resources.” [break]



They urged the government to focus on issues like corruption, ownership and accountability, slow progress in filling key positions at important public offices and the security environment.



They have shown their concern especially over the negative development impact resulting from slow progress in forming the government, implementing the peace process and writing the constitution.



The statement reads, “While development progress continues in certain sectors, the ongoing political impasse has stalled or slowed many development projects and may negatively impact or limit future donor assistance.”



Stating that the most effective programs are designed in strong participation with the government, they have also expressed concern over numerous key positions remaining vacant in important public offices, which limit the effectiveness of the government and reduce the donors´ confidence.



“... numerous key senior positions remain vacant, limiting the effectiveness of the Nepal Government and reducing donor confidence, including the Head of Supreme Audit Authority (Auditor General), Chief Election Commissioner, and Chief of the CIAA (Commission for the Investigation of Abuse of Authority) as well as significant numbers of leadership positions at the Village Development Committees,” the statement reads.



The statement further added, “We urge the leaders of Nepal to bring an end to the political deadlock, complete the peace process and effectively deal with the other ongoing issues constraining Nepal´s development in order to create an environment in which foreign assistance can most effectively be implemented for the betterment of Nepal and its people.”



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