History
Diplomatic connections between Nepal and Norway were established 26 January 1973, but already in the 1960s Norway supported volunteer work from different organisations in the country. Norway's cooperation with Nepal started as a people to people relationship, with active participation of non-governmental agencies and academia. It expanded into private joint venture cooperation in the field of hydropower.
Government-to-government development cooperation was established with the signing of a Memorandum of Understanding (MoU) in 1996. In accordance with Nepal’s own priorities, Norway has chosen to concentrate its assistance on basic and primary education, good governance, human rights and energy sector development (with focus on hydropower and electrification). The MoU was signed by the Norwegian Minister for Development Cooperation, Ms Kari Nordheim Larsen and the Nepali Minister of Finance Dr. Ram Sharan Mahat, 22 November 1996.
Nepal is one of Norway’s main cooperating partners, and in order to further enhance the cooperation between the two governments, Norway established an Embassy in Kathmandu in January 2000. The Embassy in Kathmandu has today seven diplomats. In July 2005, Norway decided to reduce development assistance by 10 % as a reaction to the negative democratic development in the country. However, in connection with the restoration of democracy in April 2006, this decision was reversed. The last two years Nepal has seen an overall positive development, and it has been indicated that the Norwegian support to Nepal may increase if this trend continues.
The main motive behind Norway’s development cooperation is to contribute to growth, democracy, resource planning and development of human resources.
Here is a detailed overview of bilateral aid in the period 2005 to 2007. This overview does only contain the aid that is handled through the embassy and does not reflect total Norwegian support.
Budget Report Nepal 2007
Budget Report Nepal 2006
Budget Report Nepal 2005
The level of development cooperation towards Nepal has increased gradually.
|
Nepal |
1997 |
1998 |
1999 |
2000 |
2001 |
|
54 253 000 |
66 435 000 |
57 670 127 |
78 398 847 |
103 319 822 |
|
|
|
2002 |
2003 |
2004 |
2005 |
2006 |
|
104 659 963 |
143 134 667 |
155 168 550 |
161 804 733 |
160 393 517 |
|
|
|
Selected years total |
1 157 526 226 |
|
Fig. 1 shows the overall bilateral and multi-bilateral aid to Nepal over the last 10 years in Norwegian Kroner. For more detailed information visit http://statistikkportalen.norad.no/
The total development aid for 2007 is approximately 240 mill NOK and it is expected to increase to around 250 mill NOK in 2008. The increase reflects the positive development Nepal is currently experiencing. Of the aid in 2008 the Embassy is responsible for approximately 180 mill, while the rest will be handled by the Ministry of Foreign Affairs or Norad. The main sectors for the bilateral cooperation are the same as defined by the MoU of 1996, but the work related to conflict and later the peace process has now been given more attention. In general the cooperation with Nepal in the areas mentioned has shown good results.
Nepal is a country with a relatively low dependence on development aid. Official Development Assistance consisted in 2005 under six percent of the GNP, which is considerably lower than all of Norway's main cooperation partners in Africa. The country is expected to have the capacity to handle more aid and the ability to achieve reasonable results in chosen sectors. The positive peace and democracy process supports this impression. Nepal can furthermore document a considerable decrease in the number of poor over the last years, and aid is an important contribution to Nepal's efforts to achieve the millennium development goals. The authorities have also experienced an increase in tax income, something which helps secure the more long term sustainable development.
Norway is well regarded in Nepal. The country is perceived as neutral, without hidden agendas, and a strong supporter of the democratic forces and the peace process, with a long term, trustworthy approach. Norway is a medium sized donor in Nepal.
For more information regarding the development cooperation between Norway and Nepal, please contact the Embassy, or the Norwegian Agency for Development Cooperation (NORAD).