The Challenge

With a GDP per capita of US$470, the Federal Democratic Republic of Nepal is the poorest country in South Asia. It has the lowest life expectancy, the largest share of undernourished children, and significant inequality across social groups. In the 2012 Human Development Report, Nepal was ranked 157 out of 187 countries.

How We Are Helping?

UNCDF is helping to address Nepal’s development challenges by working to strengthen local service delivery and expand access to financial services for the poor. The joint UNCDF-UNDP Local Governance and Community Development Programme (LGDP) promotes decentralization of governance, improved local service delivery and grassroots community empowerment. It is the largest decentralization programme in Nepal, and provides an opportunity for the Government to take the lead in coordinating once-fractured donor support, promoting inclusive, responsive and accountable local governance in which citizens are actively engaged.

UNCDF is also addressing the challenge of equitable growth in Nepal through the project Enhancing Access to Financial Services (EAFS): Building an Inclusive Financial Sector in Nepal. This project is aimed at poor youth and marginalized groups, and seeks to broaden access to services by forging linkages between financial service providers and savings credit groups. The programme supports innovations in product delivery methods (such as expanded branch networks in poor areas, linked self-help groups, mobile technology, and the use of third-party agents), strategic partnerships (e.g., collaborating with insurance companies, remittance firms, leasing agencies and others) and products. The programme has established a fund for inclusive finance to coordinate funding to financial service providers serving the lower end of the financial sector.

In Detail