NATIONAL REPORT
ON
UNITED NATIONS CONFERENCE ON
ENVIRONMENT AND DEVELOPMENT
(UNCED)
COUNTRY : NEPAL
TEAM MEMBERS
This report was prepared by New ERA consultants. The members of
the National Review Committee contributed to improve the quality
of the report.
TABLE OF CONTENTS
ABBREVIATIONS AND ACRONYMS
Part A
A. EXECUTIVE SUMMARY
Part B
B. DEVELOPMENT TREND AND ENVIRONMENT
B-I RESOURCE ENDOWMENT
1. Introduction
2. Land use
3. Forests and Bio-diversity
4. Water Resources
5. Minerals
B-II SUMMARY OF SECTORAL ANALYSIS
1. Agriculture, Livestock and Fishery
2. Forestry
3. Social Services
4. Urban Sectors
5. Industry and Tourism
6. Water Resources
B-III DEVELOPMENT TREND
1. Economic Growth
2. Finance
3 Trade
4. Demographic Trend
5. Income Distribution
B-IV ENVIRONMENTAL ISSUES
1. Introduction
2. Land Degradation
3. Deforestation
4. Pollution
5. Hazardous Waste
6. Public Health
Part C
C. RESPONSE TO ENVIRONMENT/DEVELOPMENT ISSUES
C-I POLICIES AND STRATEGIES
1. Policy Goals
2. Strategies
C-II LEGISLATION
1. Introduction
2. Existing Laws
3. Treaties and Conventions
C-III INSTITUTIONS
1. Governmental Organizations
2. Non-Governmental Organizations
C-IV PROGRAMMES AND PROJECTS
1. Sectoral Activities
2. Biotechnology
3. Information and Training
4. Environmental Planning and Environmental Impact
Assessment
C-V INTERNATIONAL COOPERATION
1. Major Economic Institutions
2. Multinational Corporations
3. United Nations and Specialized Agencies
4. Financial Assistance
5. Regional Co-operation
C-VI STRATEGY FOR THE FUTURE
1. Introduction
2. Population Control
3. Land Use Management
4. Bio-diversity Conservation
5. Energy Development
6. Pollution Control
7. Enabling Mechanisms
Part D
D. EXPECTATIONS FROM THE CONFERENCE
ANNEXURES
A. Evolution of Environment-Related Policies, Laws and
Institutions
B. Nepal: Environment Related Legislation
C. Agencies with Environmental Responsibilities
D. Nepal: Chronology of Some Environmental Institutional
Development
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ABBREVIATIONS AND ACRONYMS
ACAP :Annapurna Conservation Area Project
ADB :Asian Development Bank
ADNN :Agriculture Development Bank of Nepal
ANM :Auxiliary Nurse Midwife
ARTEP :Asian Regional Team for Employment Promotion
BNF :Biological Nitrogen Fixation
BNP :Basic Need Programme
CEDA :Centre for Economic Development and Administration
CCNCR :Council for the Conservation of Natural and Cultural
Resources
CITIS :Convention on International Trade on Endangered Species
EIA :Environmental Impact Assessment
ESP :Electrostatic Precipitator
FPDB :Forest Products Development Board
GDP :Gross Domestic Product
GIS :Geographical Information System
HMG/N :His Majesty's Government of Nepal
ICIMOD :International Centre for Integrated Mountain
Development
IDA :International Development Agency
INSAN :Institute of Sustainable Agriculture, Nepal
KMTNC :King Mahendra Trust for Nature Conservation
MPFS :Master Plan for the Forestry Sector
NARSC :National Agricultural Research and Service Centre
NCCNR :National Commission for Conservation for Natural
Resources
NCS :National Conservation Strategy
NECG :Nepal Environment Conservation Group
NEFES :Nepal Forum of Environmental Journalists
NPC :National Planning Commission
NTV :Nepal Television
OGL :Open General License
PCRW :Production Credit for Rural Women
PWA :Protected Watershed Area
RLABB :Research Laboratory for Agricultural Biotechnology and
Biochemistry
RONAST :Royal Nepal Academy of Science and Technology
SAARC :South Asian Association for Regional Cooperation
SAF :Structural Adjustment Facility
SAL :Structural Adjustment Loan
SAP :Structural Adjustment Programme
SWMRMC :Solid Waste Management and Resource Mobilization Centre
TCN :Timber Corporation of Nepal
TDC :Town Development Committee
TDN :Total Digestibe Nutrients
UDS :Ulcerative Disease Syndrome
UNCSTD :United Nations Centre for Science and Technology for
Development
UNEP :United Nations Environment Programme
UNIDO :United Nations Industrial Development Organisation
VDC :Village Development Committee
WDR :Western Development Region
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Part A
EXECUTIVE SUMMARY
Resource Endowment
Nepal, situated in the Central Himalayas, is a country having both
physiographic and climatic contrasts compared to its small area of
147,181 sq. km. The country's economy depends largely on the use
of its natural resource base. Among the least developed countries
of the world, Nepal's economic growth has been hampered by the
lack of economic opportunities and infrastructure. The problems
have been further exacerbated by growing poverty and environmental
deterioration. Environmental problems in the country emanate from
excessive dependence on the use of natural resources.
About two-thirds of the country is occupied by hills and mountains
with steep to very steep slopes. Nepal's lowland Terai is formed
of rich alluvial sediments while the Siwaliks, which stands as a
transition between the Terai and the Mountains, is mostly
erodible. The nutrient status of soils, as a result, differs from
place to place. In Nepal, soil nutrients are also washed away by
erosion during the heavy rains. Erosion has been made worse in
areas where agriculture is practised, specially on the steeper
slopes.
Though the country produces 85-90 percent of its foodgrain
requirement, the production of cereals per unit area has not
increased. Since the mid-1970s, emphasis has been given to land
use based on regional and ecological potentialities such as
livestock, farming and horticulture in the Mountains, horticulture
in the Hills, and cereals and cash crops in the Terai.
Thirty-seven percent of the country's area is under forest cover
while that under agriculture is about 20 percent. On an average,
the population is 5.7 per hectare of net cultivated land. Eleven
percent of the forest land is in a degraded state while another 26
percent has less than 40 percent crown cover. Forests in Nepal
are not well distributed compared to population density. The
share of forests in the country's GDP is about 15 percent which
also remains the source of livelihood for a large section of the
population.
From 6.4 million ha in 1964, the total forest area is estimated to
have declined to 5.5 million ha by 1985. About 0.2 million ha of
the Terai and Siwaliks forests were cleared through planned
settlement and illegal felling between the 1950s and 1985.
Nepal's total forest bio-mass is about 648 million tons.
Seventy-five percent of the country's energy requirement is met by
fuel wood. Per capita fuel consumption in the Hills and Terai is
about 708 kg and 689 kg respectively. The annual timber
production is estimated to reach 0.1 m3 per capita by the year
2000 AD. Forty-two percent of the TDN (Total Digestible
Nutrients) required is supplied from the forest sector with heavy
pressure on the Hills.
The current tree plantation rate is unable to meet the
deforestation rate. A 25-year Forestry Sector Master Plan being
implemented from 1988 emphasises on community and private forests,
national and leasehold forests, soil conservation and watershed
management, conservation of the ecosystem and genetic resources
and medicinal and aromatic plant development.
Over 5400 species of vascular plants including over 245 species of
endemic plants and 700 species of medicinal plants and 175 species
of mammals, 850 species of birds, 170 species of fishes, 600
species of butterflies, 50 species of moths and 180 species of
dragon flies have so far been identified in this country. These
species are being protected and conserved through national parks,
wildlife reserves and conservation areas covering 12 percent of
the country's area. Two of the national parks have also been
included in UNESCO's World Heritage Sites.
Nepal is drained by three major river systems namely the Kosi,
Gandaki and Karnali. The combined flow of the rivers of the
country is about 200 billion cubic metres in a year. The country
has a theoretical hydro power potential of 83,000 MW. Out of
this, only 42,130 MW (50.8%) could be harnessed economically.
However, the present installed capacity is only 238 MW.
Electricity is available to about 9 percent of the population.
Irrigation is provided to about 0.94 million ha, of which about 80
percent is in the Terai.
Both surface and ground water is used as drinking sources. In
1990, about 7.2 million people representing 38 percent of the
population had access to piped water supply. The plan is to
provide improved drinking water to all by the year 2000 AD. Water
sports like white water rafting, canoeing and boating have been
gaining popularity in recent years.
Nepal has good deposits of cement grade limestone and sub-economic
mineral deposits of copper, iron, tin-tungsten, lead and zinc and
glass sand. Some limestone deposits are exploited for cement
production. Lead and zinc, magnesite and marble are also under
production. The mining sector contributes about 2.3 percent to
the GDP. However, the full potential of the mining sector remains
to be explored.
Economic Development
No significant economic growth has been achieved despite the
implementation of a series of development plans since 1956.
Rising population pressure on the land and a sectoral development
approach have led to the deterioration of the environment. The
per capita income estimated in 1988 was US $ 180 per annum, which
declined to US $ 113 at the prevailing exchange rate in mid-1991.
The overall GDP grew at about 3 percent per annum during the
period 1964/65 - 1989/90, while per capita income during the same
period showed an annual growth rate of about 0.8 percent. The
economic condition has, therefore, not improved because of the gap
between investment and savings and marginal returns despite heavy
investment.
There has been no change in the pattern of consumption over the
last 16 years. The major part of income in Nepal is spent on food
and other essential goods. However,there is a rising trend in
public consumption, from 8 percent in 1974/75 to 11.7 percent in
1989/90. Hence, Nepal has yet to create a foundation for
sustained economic growth and development.
Between 1974/75 and 1989/90, regular and development expenditure
budget grew by 12.2 times and 12.9 times respectively. The rapid
increase in regular and development expenditures, discrepancies
between investment and savings, trade and balance of payment and
revenue and expenditure have created many distortions in the
economy.
More than 50 percent of the total revenue collection is from
imports. About 10 percent of the GDP is from import- based
revenue. About one-fifth of the total revenue is derived from
non-tax sources such as license fees, import licenses and
auctions. Out of the government expenditure, 65 percent was spent
on consumption goods in 1988/89. A major percentage of regular
expenditure presently goes for payment of salaries and allowances,
subsidies to public enterprises and in debt servicing. In the
fiscal year 1989/90, debt servicing accounted for 34.2 percent of
the regular expenditure budget showing an increase of 25.4 percent
over 1974/75. The total outstanding foreign debt reached US $
1186.3 million at the end of the first nine months of 1989/90,
accounting for 39.7 percent of GDP.
Foreign aid increased to 40.8 percent and 59.6 percent of total
and development expenditures respectively in 1988/89 as compared
to 25.5 percent and 40 percent in 1974/75. The level of foreign
aid commitment increased 36.1 times in rupee terms, during 1974/75
and 1989/90. Increasing dependence on external assistance along
with an increasing proportion of loans has increased the burden of
debt servicing.
Nepal's trade deficit has been growing. In the last 16 years,
exports have increased annually at the rate of 12.5 percent
against a growth rate of 18 percent in imports. The trade deficit
with India has been increasing at the rate of 11.1 percent during
the last 15 years. The major exports of Nepal are woollen carpets
and ready-made garments. Export of finished products increased
from 8.7 percent to 63.1 percent during 1974/75 to 1987/88. The
balance of payments situation continues to remain favourable,
despite an increase in the trade deficit by 17.4 percent per annum
during 1982/83- 1987/88. This has been possible due to the large
inflow of foreign assistance. Trade reforms have been implemented
under the SAP using measures like the licensing system,
OGL/passbook system, auctioning of import licenses for commercial
items, and cash incentives for the export of certain items to
third countries.
At present, Nepal has 86 industrial establishments in the
manufacturing sector under foreign collaboration. Only 52 of
these have started production while the rest are at different
stages of establishment. Public enterprises, established under
grant assistance, on an average, invested US $ 3 million in
foreign capital, 15 times more than the average foreign investment
in the private sector. In spite of incentives and concessions
granted to foreign investors, involvement of international
corporations in Nepal's industrial sector is low.
In 1989/90, about 62.4 percent of the total foreign assistance
comprised of loans while the remaining 37.6 percent was received
as grants. There were 158 projects financed by 17 donor countries
for which 76.3 percent of the total financial assistance was in
the form of grants. The share received by the agricultural,
irrigation and forestry sectors indicates the increasing
importance attached to the natural resource sectors.
Nepal has been receiving aid from UN agencies since the 1950s.
Their role in the country's development has been significant and
meaningful. Aid from UNDP has been increasing since 1972. The
quantum of UN aid increased to US $ 26.3 million by 1985 against
US $ 3.1 million between 1953 to 1961. Agriculture and natural
resources development received the largest share of UNDP aid (23%
of the total) during 1972-85. Eight major sectors for support and
development had been identified in the aid package. About 113
projects were identified for implementation with UNDP funding of
about US $ 92 million within the period of 1986-91. There has,
however, been a shortfall in UNDP aid of about US $ 50 million
which has necessitated across the board cuts on projects in the
identified sectors.
Multilateral loans to Nepal from IDA of the World Bank account for
about 45 percent of the country's external debt. The largest
share of IDA loans (48.3%) during 1969 to 1986 had been allocated
to infrastructure projects, followed by agricultural and rural
development (41 %). In the mid-1970s, the World Bank shifted its
loan priority from infrastructure to the agricultural sector. The
Asian Development Bank, which has a different priority for loans,
provided Nepal with about 36 percent of the total loan between
1979/82. The sectoral distribution of ADB loans between 1969 and
1982 shows that agriculture, industry and transport are the
primary sectors accounting for about 66 percent of the total loan.
The ADB has also provided industrial loans to the private sector.
Nepal's current population, estimated to be 18.5 million, is
expected to reach 24 million by 2000 AD. Though the death rate
continues to decline, the crude birth rate and the infant
mortality rates are still very high, in spite of various
population control measures. Nepal has also experienced a high
rate of Hill-Terai migration since the 1950s, due to declining
productivity in the Hills and better economic opportunities in the
Terai. Urban growth rate is currently 7.6 percent of which 40
percent is through migration.
Literacy rate reached 38.9 percent in 1990 and about 87 percent of
children in the 6-10 year old age group have received primary
education. Urban literacy is nearly double that of the rural
population. About 39 percent of the male and 12 percent of the
female population had become literate by 1990. The aim is to
provide primary education to all children in the 6-10 year old age
group by the year 2000 AD.
Over 90 percent of Nepal's total population depend on agriculture
for their livelihood. Agriculture and related activities account
for 82.2 percent of the rural and 34.4 percent of the urban
employment. The agricultural sector has been forced to absorb the
growing labour force every year. This phenomenon has created
pressure on the natural resource base and has resulted in further
fragmentation of agricultural land. Grain production increased by
only 1.3 percent during 1975/76 and 1985/86, productivity fell by
0.5 percent while the population increased by 2.6 percent. Of the
total population, 42.5 percent is estimated to be below the
poverty line in terms of minimum calorific requirement. About 97
percent of the absolute poor live in rural areas.
Environmental Issues
The major environmental problems in Nepal are caused by land
degradation, deforestation and pollution. Poverty is the root
cause of environmental degradation. Land and forest resources are
over-exploited because of heavy dependence in the natural resource
base while water and mineral resources are under-utilized owing to
lack of financial resources and infrastructure. Soil erosion,
fertility decline, sedimentation and floods have degraded and
continue to degrade the land. Soil loss ranges from 5-200
mt/ha/yr depending on the land use and land form. Their causative
factors are steep slope cultivation, use of marginal land,
overgrazing, forest fires, nutrient deficiency and population
pressure. Continued compulsions to cultivate marginal land are
resulting in further encroachment on forests and grazing lands.
Nepal's land resource is also under pressure from a high number of
unproductive livestock which take about 42 percent of the TDN from
forest land. The absence of a national land use policy and
programmes, and a narrow sectoral approach, have led to land use
conflict, particularly between forestry and agriculture.
Deforestation in Nepal is primarily due to the extraction of fuel
wood, fodder and timber, overgrazing and frequent fires,
encroachment on forest land for agricultural expansion, and
poaching and smuggling. As forests are not evenly distributed in
relation to the population, all accessible forests are over-used
and depleted. Many species of wild plants and animals have been
threatened by the destruction of their habitat outside the
protected areas.
Water and air pollution is particularly evident in urban and
industrial areas. Available data indicate high bacterial
contamination, mainly during the rainy season, in urban water
systems. Even springs have been found to be contaminated.
Industrial wastes, including toxic effluents, are discharged
directly into the rivers and streams without any treatment in
major urban areas and industrial districts. The water quality as
a result has deteriorated. Instances of water-borne diseases are
frequent and on the rise.
The burning of moist wood for domestic cooking and heating in
poorly ventilated houses has contributed to poor indoor air
quality in rural areas of Nepal. Urban air pollution is also on
the increase due to old vehicles, incomplete combustion of fossil
fuel and industrial emissions.
Noise levels in most urban centres are also of high intensity due
to heavy and light vehicular movement. Other sources of noise
pollution include industries, indiscriminate use of horns and
amplifiers in public places during ceremonial activities.
In Nepal, it is a common practice to dispose off toxic and
industrial wastes without any sorting or pre-treatment. At
present, industries dump their solid wastes, including toxic
wastes, on their premises or illegally dispose them off in rivers
or on public lands. In some cases, industrial wastes are also used
as by-products.
Policies and Strategies
Development planning in Nepal began in 1956. The First Plan
(1956-61) emphasized agricultural production. The need for
wildlife conservation was realized during the Second Plan
(1962-65). The Third Plan (1965-70) drew attention to the
prevalence of deforestation and the need for soil conservation.
The Fourth Plan (1970-75) emphasized the protection of biological
diversity through the establishment of national parks and wildlife
reserves. The Fifth Plan (1975-80) introduced a land use and
water resources development policy, soil and watershed management
programmes, and recommended plantation and management of forest
resources. The Sixth Plan (1980-85) initiated environment impact
assessment (EIA) and incorporated environmental issues with
emphasis on population control. The Seventh Plan (1985-90)
included many environmental programmes and made EIA mandatory for
all major development activities.
A National Conservation Strategy for Nepal endorsed by HMG in
1988, proposed a conservation action agenda. The Master Plan for
the Forestry Sector (25 year plan) has placed emphasis on
programme approach and consists of community and private forestry,
national and leasehold forestry, soil conservation and watershed
management, and conservation of ecosystems and genetic resources,
as priority programmes under the six primary development
programmes.
There was Plan Holiday in 1991. The Eighth Plan (1992-97) will
include environment as a separate sector. The plan will duly
address the critical role played by poverty, increasing
population, low level of economic growth, ill-planned urbanization
and industrialization on the environment with the integration of
human development and environment conservation. It will also set
out policies and an intended plan of action in relation to the
environment including a comprehensive system of environmental laws
that will ensure all future decisions on investment to take full
account of their effect on the environment.
The Constitution of Nepal 1990 has included environmental
protection under the directive principles and policies of the
State. Based on this constitutional provision, a special
committee on natural resources and environmental protection has
been constituted in the House of Representatives (Lower House).
The existing legislation stresses on exploitation of natural
resources and, hence, requires some revision in line with the
spirit of the new Constitution. Existing environmental laws
related to land use include land reform, preservation of mountain
environment, and protection of designated areas in the
representative eco-physiographic zones for the protection of
bio-diversity.
Similarly, forest-related Acts include provisions to prohibit
deforestation, cultivation and grazing on, and illegal removal of,
products from government forest land; protection of demarcated
forest and afforested areas; proper management of wildlife and
their habitat in national parks and wildlife reserves; management
of community forests; and conservation of nature and natural
resources. Likewise, there are Acts that forbid the use of
explosives for catching and killing aquatic life, that consider
environmental aspects during mineral production, and that allow
for cultural heritage conservation. These Acts will be reviewed
and amended as and when necessary to align them with environment
and development concepts.
Nepal is a signatory to Biological and Toxic Weapons (1972), Ocean
Dumping (1972), and Law of the Sea (1982), and has ratified the
Nuclear Test Ban Treaty (1983), Wetlands Treaty (1971), World
Heritage Treaty (1972) and CITES (1973). At the regional level,
Nepal is responding to the environmental initiatives taken by
SAARC and ESCAP.
Several governmental institutions, established since the 1960s,
are sectorally involved in environmental issues. Nepal's National
Commission for the Conservation of Natural Resources was
established in 1980, to play an advisory role to HMG on matters
related to natural resources conservation. In January 1991, a
Council for the Conservation of Natural and Cultural Resources
(CCNCR) was formed under the auspices of the National Planning
Commission to facilitate the implementation of the National
Conservation Strategy for Nepal. In September 1991, the Ministry
of Forests and Soil Conservation was renamed the Ministry of
Forests and Environment with a view to implementing and
coordinating environmental activities, besides forestry. In recent
years, several non-governmental organizations have been
established to increase public awareness of the necessity of
rational environment management. Several NGOs are active in
conservation awareness programmes at the national and grassroots
level.
Attempts are being made to institutionalize Environmental Impact
Assessment (EIA) in all major development sectors. Currently,
national EIA guidelines are being drafted, and environmental
planning and impact assessment are being incorporated into
economic development planning.
As poverty is the root cause of environmental degradation, the
basic strategy aims to secure a link between economic and
environmental policies aimed at poverty alleviation. Another
important aspect is population control. The strategy for
fertility control has encompassed expansion of services, enhancing
the role of women and mobilization of local communities and NGOs.
Since land is a scarce resource, policies are made to use it more
judiciously.
The strategy for conserving biological diversity focuses on
neutralizing the conflict between the people and the parks.
Similarly, pressure on traditional energy sources, primarily fuel
wood, will be reduced by developing alternative energy sources.
The emphasis will be on harnessing the country's immense hydro
energy resource. The strategy for control of pollution will be
developed based on minimum allowable standards of air, water, land
and noise pollution. Institutional capabilities are being
strengthened to initiate coordinated actions, covering all
sectors.
The present experience in managing protected areas will be
utilized to take future initiatives in managing and extending
areas for conservation of biological diversity. The policy of
zoning protected areas, with surrounding buffer zones for
conservation and allowing access to local users, will be promoted
in parks and reserves.
Expectations from the Conference
As an active member of the United Nations system in the
environmental arena, Nepal will continue to support the efforts of
the international community in sustainable development. But as
one of the least developed countries, it has particular concerns
and interest in matters relating to the protection and management
of land and water resources and improvement of the living
conditions of the poor. Being a mountainous country encompassing
a major portion of the Himalayan ecosystem, Nepal proposes that
development of mountainous regions be given specific coverage in
Agenda 21 of UNCED 92.
Nepal's areas of interest also include conservation of biological
diversity and environmentally sound management of bio-technology.
The country includes a territory of immense bio-diversity
extending from humid tropics to an alpine temperate ecosystem,
which could provide an ideal location for research on biodiversity
as well as on land degradation process. HMG welcomes any
international cooperation for such scientific ventures.
Nepal hopes that UNCED 92 will succeed in addressing the common
global environmental issues in light of the inter-relationship
between the people, resources, environment and development. The
country also calls for resolving some of the cross-sectoral issues
such as transfer of technology and increased financial resources
critically needed for sustainable development. This would be
essential to strengthen and expand national institutions including
training, education, research and management capability.
UNCED should be a forum to initiate a new international economic
order in view of the post cold war era. This new order should
generously support the developing countries in their endeavour to
sustainable development without affecting the economic growth
currently constrained by debt crisis. Developing countries,
particularly the least developed countries, would need greater
support from developed countries on the basis of equity to deal
with global environmental issues.
Poverty is the basic cause of excessive resource exploitation and
underdevelopment leading to further degradation of the environment
in many developing countries. These countries need external
assistance in their national efforts for poverty alleviation,
population control and natural resource management including
alternative energy development.
Restriction on use or overuse of the natural resources of
developing countries, in the larger interests of the global
community, should be duly compensated to keep pace with economic
development. In addition, the expression of developing countries
calling for the support of developed countries for transfer of
technology on a preferential and non-commercial basis should be
addressed by the conference. The conference should also focus on
the effectiveness of international conventions and treaties
brought into force so far, and look into the institutional
requirement for the implementation of the proposed "Earth
Charter", including Agenda 21.
It is expected that the UNCED would also recognize the role of the
Global Environment Facility (GEF) as an instrument for channelling
funds to developing countries for assisting them in resolving
global environmental problems. UNCED should make an effort to
expand and further strengthen the GEF and streamline funding
mechanisms, recognizing the needs and aspirations of developing
countries.
Nepal also expects UNCED to firmly establish the 'Polluters Pay'
principle making adequate provisions to launch the principle of
environmentally safe, sound and sustainable development.
Nepal's ability to adopt the principles of sustainable environment
and development are affected by two critical barriers originating
from its geographical location. The first one is the physiography
of the country. Two-thirds of the country's area comprises of
hills and mountains, limiting rapid expansion of basic
infrastructure to support economic development. The high cost of
construction and maintenance of physical infrastructures, such as
the roads, hydroelectricity and irrigation networks constrain
their management. Secondly, the land-locked status of the
country, at times, poses constraints due to transit restrictions
affecting overall economic development.
The country's development efforts and allocation of resources are
being continuously threatened by the rising population. Hence,
the global strategy for sustainable development should also stress
the need to reduce population growth and other associated
problems.
Nepal's specific concerns relating to development and environment
problems that need support in the Rio Conference are as follows:
_ Development and environment problems associated with the
country's physical features which are dominated by one of the
highest reliefs of the world. The important and essential
resource base of the region like land, vegetation and water
which show immense variation among and within micro
ecological zones, would get affected by the global changes in
environment. The development of the mountainous areas,
therefore, need to be given special considerations.
_ Global attention, therefore, needs to be drawn towards
mountain ecosystems and strategies for developing such areas.
These strategies must be long-term and must focus on tackling
the problems caused by inaccessibility, fragility and
marginality of the regions through studies, and application
of technologies that are sensitive and specific to mountains.
- The difficulties of Nepal are further expounded by its land-
locked geo-physical reality. As the nearest sea port is more
than 700 km away, the country needs guarantees of
uninterrupted land access to external markets. Nepal hopes
that UNCED will be able to address this concern of all land-
locked nations.
_ Environmental degradation in Nepal is also on the rise
because of continuation of poverty which perpetuates the
vicious cycle of destitution. Poverty alleviation measures
must, therefore, form an integral part of the global
development strategy.
_ Nepal seeks to use its water resources for generating
electricity, irrigation and other purposes through a series
of interventions that are cost effective and environmentally
palatable. The country is committed to preserving the
sanctity of her fresh water resources for the benefit of
future generations while meeting present demands.
_ As a land mass located centrally amidst various ecological
regions of south and central Asia, Nepal's natural heritage
is extremely important and continues to be a source of
inspiration to the whole world. In its continued efforts to
improve the quality of life of her people, Nepal seeks
cooperation from all agencies in preserving the natural
heritage of the country as well as the rich cultural heritage
of its people.
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Part B
DEVELOPMENT TRENDS AND ENVIRONMENTAL IMPACT
B-I RESOURCE ENDOWMENT
1. Introduction
Nepal extends 800 km east-west along the Central Himalayas and
covers an area of 147,181 sq.km. The northern section of the
country, adjacent to the Tibet Autonomous Region of China,
includes an extensive mountainous terrain (Fig.1). About 100 to
140 km south, adjoining India, the Terai lowlands form an
extension of the Gangetic plain. Some regional order can be
discerned despite the rugged relief. The basic physiographic
structure of the country is made up of a succession of east-west
ranges that are arranged en echelon from the south to the
north and are punctuated by distinctive depressions. Nepal has
been divided into five physiographic zones, namely, High Himal
(above 4000 m), High Mountain (1000-4000m), Middle Mountain
(200-3000m), Siwaliks (120-2000m) and the Terai (100-300m). These
zones separate and confine various depression areas that form the
main settlement zones. South of the Siwaliks range extends the
Terai that merges imperceptibly into the Gangetic plain. Between
the Siwaliks range and the Middle Mountains are valleys of varying
extent. The most extensive depression region is represented by a
complex of hills between the Middle Mountains and the High
Mountains. West of longitude 85řE, the High Himalayan zone also
includes plateaus and elevated valleys.
One of the important features of the country is the sharp contrast
in elevation. More than a third of the country's land surface
lies between 305m and 1524m, and another 22.6 percent lies between
1524m and 3048m. Land over 3048m covers 27.5 percent while
lowlands below 305m are only 11.3 percent of the total land
surface. Consequently, there is altitudinal zonation with
distinctive climatic types of natural vegetation and cultivated
crops. Thus, the upper limit for double paddy cropping occurs in
the sub-tropical zone below 1000m. The upper limit for paddy
growing is at 2000m and for buckwheat at 3100m in the cool
temperate zone. The tree-line occurs at 4000m and the upper limit
for grazing is at about 5000m, above the alpine zone.
Another distinctive aspect is the steepness of the terrain.
According to the dominant slope of major land forms, 58.7 percent
of the land is steep to very steep, i.e. it exceeds a slope of 20
degrees in the Siwaliks, 30 degrees in the Hills and 35 degrees in
the Mountain zone. Another 21.7 percent of the land surface has
moderate to steep slopes. Land forms defined as very gentle with
a slope of less than one degree only represent 13.6 percent,
mostly in the Terai. Dominant slopes categorized as gentle and
dissected are 4.6 percent and 1.4 percent respectively.
The average annual precipitation in the country is about 1600 mm
but there is wide regional variation. In general, the Hills of
eastern Nepal receive more rainfall than those in western Nepal.
About 80 percent of the total precipitation occurs during the
monsoon season (June-September).
Nepal's economy depends largely on the use of its natural
resources base. The distribution pattern of resources and their
harnessing for the socio-economic development of the country
remains uneven. Hence, it is important to discuss in brief the
following aspects of the natural resources base:
2. Land Use
In Nepal, the major land use categories are: forest 42 percent;
agriculture, including non-cultivated inclusion, 27 percent;
grassland 12 percent; and others 18 percent (Fig.2). Land
categorized as forest also includes shrubland with less than 10
percent crown cover. Of the total forest land, 35 percent is in
the Hills and one-third in the Mountain region. A quarter of the
agricultural land is uncultivated and most of this is in the
Hills. Over 80 percent of the grassland and 90 percent of land in
other categories are concentrated in the Mountains. The regions
vary widely in their proportion of land use. In the Mountains, a
third of the area is forest and another 39 percent belong to other
categories (Fig.2). In the Hills, half is forest land and another
42 percent agricultural. In the Siwaliks, 78 percent is forest
land, while the Terai has 64 percent agricultural land.
Land varies considerably in terms of its potential and capability
for different uses as a result of the wide variation in the
topography, soil composition and climate. On an average, there
are 5.7 persons per net cultivated hectare. Out of the 75
districts in the country, 34 have a higher density than the
national average. Of these, 22 are in the Hill and 6 in the
Mountain districts. Nine districts have an extremely high
pressure on cultivated land with over 7.7 persons per net
cultivated hectare. Most of the Terai districts have lesser
population pressure on agricultural land than the national
average. The national per capita agriculture land holding is 0.2
ha.
The Terai has four types of soil associations, mostly entric
fluvisols, identified with different textural characteristics.
The Siwaliks has fine to coarse-grained, loosely structured soil.
It consists of dystric regosols, mostly developed from sedimentary
rocks, with a loamy sand to sandy loam texture, and is vulnerable
to erosion. The Hills are characterized by soils derived from
metamorphic and sedimentary rocks, and these are usually erodible
and stony in steep and dissected areas. The Mountain area is
characterized by hard rocks. The soils are lithic and humic
cambisols, and generally shallow, stony and rocky. The geomorphic
processes include mass wasting, physical weathering and
glaciation.
More than 90 percent of the people depend on subsistence farming
and about 91 percent of the economically active population are
engaged in agriculture. Paddy, maize and wheat are the major
crops accounting for 74 percent of the total cropped area and
almost 96 percent of the total cereal grain production. The yield
per unit area has not increased to the intended level despite the
high priority given to the development of this sector from the
very beginning of planned development in Nepal. Intensification
efforts in recent years have been made through provision of
irrigation, improved seeds, use of chemical fertilizers and
pesticides, land reform, bank credit, extension services and other
facilities.
Analyzing the agri-production scenario of one and a half decades,
the net agri-production has not met the population growth rate of
2.6 percent per annum. Since 1975, the area of cereal production
has increased by about 42 percent whereas the productivity
increase has been only 9 percent. Cash crops are grown in 10
percent of the total cropped area whereas their share of total
crop production amounts to about 24 percent. Agricultural
production, in terms of unit area, has not increased.
Nepal has 1.6 million ha of potentially irrigable land of which
about 1.3 million ha. are located in the Terai while the remaining
0.3 million ha are in the Hills. The total area under irrigation
is about 0.94 million ha, out of which 0.27 million ha are agency
managed, 0.19 million ha farmer managed but assisted by agencies
and 0.49 million ha are managed by the farmers themselves. Over
80 percent of irrigated land is in the Terai area. Since the
mid-1960s, HMG has initiated construction and management of new
irrigation schemes by assisting farmer groups in low-cost Farm
Managed Irrigation Systems (FMIS). Government-assisted systems
cover some 29 percent of the irrigated land whereas the remaining
land receives irrigation facilities from farm-managed systems.
The Master Plan for Irrigation Development has recommended
efficiency in service delivery, implementation of large Terai
projects, institutional efficiency, and planning and design
improvement.
3. Forest and Bio-diversity
Major forest types in Nepal are tropical, sub-tropical, warm
temperate, cool temperate, sub-alpine and alpine. Of the total
6.8 million ha designated as forest area, 37 percent is natural
forest, 5 percent shrubland and 4 percent tree-covered land
adjacent to farms. Another 12 percent of the country's area is
grassland. Of the remaining 5.5 million ha natural forest, 59
percent is of hardwood, 24 percent is mixed, and 17 percent
conifer species. Hardwoods are dominant in the Terai and lower
Hills while conifers occur at higher elevations.
Another aspect of forest land is its cover type or crown density.
Of the 5.5 million ha land with tree cover, 59 percent has medium
crown cover, about 40 to 70 percent. Areas with high crown cover,
exceeding 70 percent, constitute only 15 percent of the total
forest land. The rest of the forest land is degraded, with crown
cover ranging from 10 to 40 percent. High density forests are
left only in protected forests in the Terai or in inaccessible
areas in the Mountains. More than half of the forests with poor
crown cover (10-40%) is in the densely populated Hill region.
Over 75 percent of the people still depend on fuel wood to meet
their energy requirements. Fuel wood is the only source of energy
for cooking and heating in the rural areas. Its consumption in
the Hills is slightly higher than in the Terai. The annual per
capita fuel wood consumption in the Hills is about 708 kg whereas
it is 689 kg in the Terai. Out of the total household fuel
consumption in the Eastern Development Region, about 30 percent is
from dung cakes which could be used for manure if alternate energy
sources were available. There is high pressure on forest
resources due to lack of alternate energy sources.
The livestock sector in Nepal is heavily dependent on forests and
grasslands. About 42 percent of the total TDN (Total Digestible
Nutrients) requirement is estimated to be met from the forestry
sector. In 1990-91, the total number of livestock in terms of
livestock unit (LU) was estimated to be 9.8 million. The
livestock in terms of LU will reach 11.6 million by the year 2000
AD. The fodder requirement or total digestible nutrients (TDN) is
obtained from the accessible forests, shrublands and grasslands.
At present, a total of 1.88 million tons of TDN is supplied from
accessible forest areas. The Hill Region alone supplies nearly 50
percent of the total TDN requirements. The TDN requirement was
about 6.08 million tons in 1985 and has reached 6.39 million tons
by 1990. In line with livestock production, the pressure is high
in the Hills and in the Central Development Region.
Annual per capita timber consumption was about 0.07 m3 in 1986 and
it has been projected to increase to 0.11 m3 per capita per annum
by the year 2000 AD. It may reach 0.12 m3 per capita per annum by
the 2011. The timber consumption in 1991 was estimated at 0.04 m3
per capita for housing purposes.
Forest land in Nepal is not well distributed in relation to the
population density. The per capita forest in the Hills and the
Terai is only 0.26 and 0.11 ha respectively. However, other zones
have over one hectare per capita. The western part of the country
has more forest than the eastern, and the per capita forest is
more in the former areas. The national per capita of forest and
shrubland, on an average, comes to about 0.37 ha.
If Nepal's forests were uniformly accessible, they could provide
the basic needs for forestry products on a sustained yield basis.
However, the distribution pattern of forest and population does
not meet the growing demand for forest products. Accessible
forests are already overcut and destroyed. Because of the lack
of a sustainable supply of forestry products, people have
difficulty in collecting fuel wood and fodder to meet their
requirements. It has been estimated that, in specific locations
in the Hills, the demand-supply ratio of forest produce ranges
from 2.3:1 to 4.1:1.
Annual tree planting in the country covered only 10,000 ha during
1979- 86. The present plantation rate is less than the
deforestation rate. At the same time the demand-supply situation
of forestry products in the country is not favourable. For the
better management of forestry resources, a 25-year Forestry Sector
Master Plan was implemented in 1988. The plan clearly spells
out the primary development programmes for community and private
forestry, national and leasehold forestry, wood-based industries,
medicinal and aromatic plants, soil conservation and watershed
management and conservation of the ecosystem and genetic
resources. To accomplish these, some supportive development
programmes in the areas of policy, legal and institutional
reforms, human resource development, research and extension,
resource information and planning, and monitoring and evaluation
have been prepared.
The immense bio-climatic diversity in Nepal supports more than 35
forest types. These forests comprise over 5400 species of
vascular plants, including over 245 species of endemic plants and
700 species of medicinal plants. In addition, over 175 species of
mammals, 850 species of birds, 600 species of butterflies, 50
species of moths, 180 species of dragon flies, 170 species of
fishes and other animals inhabit this small country. Presently,
26 species of mammals, 9 species of birds and 3 species of
reptiles are declared endangered and are being protected by
Nepalese law. These floral and faunal species are protected in
eight national parks, four wildlife reserves and one hunting
reserve that cover approximately 12,500 sq.km. or 8.5 percent of
the total land area. Two of these National Parks, the Chitwan and
the Mount Everest, are listed under the list of UNESCO's World
Heritage sites. There are two protected or conservation areas as
well. Considering all the national parks, wildlife reserves and
conservation areas, about 12 percent of the Nepal's land mass
receives attention for nature conservation.
The network of parks and protected areas represent almost all the
ecological zones, and contains a large number of endemic plants
and endangered animals. The national parks and wildlife reserves
are serving as a "natural gene bank". The conservation areas in
Nepal have been implemented with the aim of attaining a balance
between the needs of the local people, tourism development and
nature conservation. Flora and fauna are under extreme pressure
outside the national parks and protected areas primarily because
of poaching and encroachment on forest land.
4. Water Resources
In the region south of the Himalayan ranges, the monsoon
contributes to a rich water regime. As a result, several sources
of water in the form of glaciers, snow pack, ground water and
river networks exist in Nepal.
The country is drained by three major river basins; Sapta Kosi in
the east, Karnali in the west and Sapta Gandaki which drains the
region lying between these two basins. Nepalese rivers are
classified into three classes based on their origin. Rivers in
Class I originate in the High Himalayas above the snow line and
have a sustained dry season flow due to snow melt. The Class II
rivers originate below the snow line in the slopes of the
Mahabharat Mountains which are perennial but have a low dry season
flow. The Class III originate in the Siwalik ranges and southern
slopes of the Mahabharat Mountains. These rivers are ephemeral
and flashy with watersheds that are geologically fragile, erodible
and are deteriorating fast due to population pressure.
The rivers drain a total of 191,000 sq.km. area, of which 74
percent lies within Nepal. The Class I rivers altogether occupy
about 80 percent of the total drainage area of which 68 percent
lies in Nepal. The total area under snow occupied by the major
tributaries of the Class I rivers is 17,920 sq.km. representing
about 8 percent of the country's area. There are about 6000 rivers
and streams. Hundreds of these rivers are more than 160 km. long.
The combined length of the rivers and streams exceeds 45,000 km.
Arun, a tributary of the Sapta Koshi river, is the longest one
with its major drainage area in Tibet. The rivers are
characterised by an energetic hydraulic regime that simultaneously
degrades and deposits, transporting high sediment mass.
The annual run-off from the total drainage area, including that in
Tibet, is estimated to be 202 billion cu.m. The contribution from
the Nepalese territory accounts to an annual run-off of 170
billion cu. m. The estimated annual mean run-off of all rivers is
about 6396 cu. m/sec. About 72 percent of the total surface run-
off occurs as instantaneous flow, while the rest is conserved as
snow pack and ground water. About 4063 sq.km. area is estimated
to be covered by surface water. This represents 97.3 percent
under the larger rivers, followed by natural lakes (1.2 %), ponds
(1.2 %), and reservoirs (0.3 %). Only 9 percent of the total run-
off occurs through Class II rivers while 3 percent flows out of
the Class III rivers.
Nepal's Terai belt has rechargeable ground water potential which
occurs in both artesian and non-artesian aquifers. Studies show
that ground water table occurs at a depth of 5 m. in the plains
while artesian aquifers yield about 100 cu. m./hr. Ground water
is used for irrigation, and for meeting drinking water needs
through shallow tube wells at individual levels. Deep tube wells
at several district centres meet drinking water requirements. Use
of deep tube wells is yet to be carried out for irrigation. This
aspect calls for further studies.
In the inner valleys and Hills, ground water occurrence is limited
and, wherever it occurs, the recharge characteristics are not
understood but generally low. In Kathmandu, the use of ground
water at its current rate appears to be unsustainable as the
recharge properties are unknown.
The steep topography and the high run-off offer opportunities of
generating hydro power in the corridors of Nepal Himalayas. The
theoretical potential on the basis of average flow is estimated to
be 83,000 MW out of which 44,600 MW (53.5 %) has been assessed to
be technically feasible while 42,130 MW (50.6 %) could be
economically harnessed. Several sites to generate hydro power
through large and medium schemes have been identified. Scope
exists for development of several run-off river power as well as
storage projects. Investigations have been undertaken up to pre-
feasibility, feasibility and detailed feasibility levels. Large-
scale hydro power projects have been contemplated to export energy
thus produced to regional countries. In addition to these large-
scale hydro power projects, efforts are also being made to develop
small and micro-hydro projects. The preparation of a Master Plan
for Small Hydro Power Development Projects is in its initial
stage.
Several sites for developing surface water irrigation run-off
river schemes have been identified in the Terai. These projects
are at different study levels which reveal potential of irrigating
some 190,950 ha of land under different schemes. Some of the
contemplated large hydro power projects have also irrigation as
one of the benefits.
The southern stretches of the three rivers could be developed for
some form of inland navigation. This could be further extended to
link Nepal with Calcutta port in India through waterways.
However, infrastructure facilities for inland navigation are yet
to be developed after duly considering every aspect of taming
rivers for navigation.
The installed hydro power capacity by the end of 1990 was only 238
MW. This is about 0.29 percent of the theoretical power potential
and 0.55 percent of the economically usable power potential. By
the year 2000, the installed capacity is expected to reach 654 MW
with the help of planned projects when the peak power demand is
expected to be 396 MW. With such a high potential for hydro power
development, Nepal can play an important role in providing clean
energy for domestic needs as well as to its neighbouring
countries.
Electricity thus generated is used mainly for lighting and heating
purposes which meets only 0.66 percent of the country's total
energy needs. About 44 percent of the generated energy in 1985
was consumed by the domestic sector, 34 percent by the industrial
sector, 6 percent by the commercial sector and the remaining 16
percent by other sectors such as irrigation, drinking water,
transport and street lighting. In 1989, however, domestic
electricity consumption went down to 40.63 percent while
industrial sector demand increased to 36.86 percent. The
consumption in the commercial sector was 9.75 percent while the
remaining uses accounted for 12.76 percent. The 6.2 percent of
the total population served by electricity reached 8.0 percent in
1989 and further went up to 9 percent by July 1991. Power
consumption in 1990 was estimated to be 39 kw/hr/individual as
compared to 27 kw/hr/individual in 1985. This is expected to go
up in the coming years.
At present, irrigation is provided to about 0.943 million ha of
cultivated land. Out of this, 0.267, 0.186 and 0.490 million ha
are under irrigation systems that are agency managed, agency-
assisted farmer managed or exclusively farmer managed.
Current efforts for major irrigation development are concentrated
mainly in the Terai. In the Hills, irrigation is provided in the
lower terraces the majority of which are already irrigated by
systems developed by farmers. Extension to remaining areas would
need major interventions to tackle the complex physical, technical
as well as financial constraints. Feasibility and pre-feasibility
studies of irrigation projects with large command areas reveal the
expansion on a further 190,950 ha. of land, indicating that little
scope for horizontal expansion exists. To meet the agriculture
production target set out by the Basic Needs Programme, irrigation
has to be provided, at the rate of some 60,000 ha. per year in
order to irrigate 1.25 million ha. of land by the year 2000 A.D.
from systems built by the Government.
Cage fishery for fish production has been introduced in lakes and
reservoirs whose production trend indicates a high potential for
expansion. In 1975/76, the total fish production was 2600 M.T.
which increased to about 8750 M.T. in 1984/85. Fishery activities
have already been introduced in Terai ponds while cold water
fishery activities in the hill rivers and streams are under
consideration. The annual growth rate of fish production during
1975 to 1985 was about 8.9 percent which is planned to increase to
14.8 percent by the year 2000 AD.
Water sports in the form of white water rafting, canoeing and
boating has been gaining popularity. River rafting in an
organized form was introduced in 1985/86 in Trisuli River. In the
beginning, a total of 2500 river rafters were involved and this
increased to 5000 by 1990/91. The rafting season lasts generally
from November to March. Potential also exist for using other
river stretches for rafting to attract more tourists.
5. Minerals
Different types of minerals occur in different parts of the
country, but because of the lack of scientific and extensive
geological survey, the actual statistics of the mineral resources
are not available. However, based on preliminary surveys, iron,
copper, mica, gold, lead, zinc, limestone, marble, slate, mineral
oil and gas, coal, nickel, sulphur, graphite and dolomite exist in
the country. The economic exploitation of these minerals has been
limited till now because of lack of capital, technical know-how,
and transportation, etc. Copper is known to occur in more than 65
places, lead and zinc deposits in over 30 places and iron ores are
reported from about 40 places. Their potential based on
cost/benefit analysis are not yet known. The chemical analysis of
the Mahabharat limestone indicates that it is highly siliceous,
and some bands are good for cement production.
Mineral exploration in Nepal shows good deposits of cement grade
limestone for local consumption and of sub-economic mineral
deposits of copper, iron, tin, tungsten, lead and zinc, glass sand
and construction materials. Economic feasibility of other known
minerals has yet to be studied in detail. Present mineral
explorations show 11.9 million tons of sand suitable for glass
industry, 47 million m3 of natural gas and 3.6 million tons of
iron. At present, cement factories produce about 1200 tons of
cement per day. This will increase to 2000 t/day after the
Udayapur Cement Factory comes in operation. Similarly, magnesite,
marble and agri-lime industries are under production. A lead and
zinc industry has been established at some 4000m with a production
rate of 20,000 t/day. At present, the contribution of mineral-
based industries to GDP is estimated at 2.3 percent.
Mountainous terrain and poor accessibility have hindered
large-scale exploration of minerals. Out of the explored
deposits, most are not economically feasible for large-scale
mining operations. However, there may be potential to utilize
some mineral deposits at the local level.
The Minerals Act of 1987 incorporates provision for environmental
considerations during mineral exploitation. However,
environmental aspects have not been adequately considered in
mineral production activities and none of them have so far
prepared reclamation plans. In addition, stone quarries are
extensively operated in Kathmandu Valley in an unorganized manner.
In recent years, a number of environmental complaints have been
registered on deforestation, disposal of wastes, soil erosion and
diversion of hill streams, and damage of aesthetic beauty. A
Mineral Resources Master Plan with environmental consideration is
under preparation.
B-II SUMMARY OF SECTORAL ANALYSIS
1. Agriculture, Livestock and Fishery
1.1 Agriculture
Nepal's national economy is dominated by the agricultural sector.
It has a 54 percent share of GDP and accounts for 75 percent of
the total exports. Over 90 percent of the total population
depends on this sector for subsistence living. Although there has
been an increase in agricultural production, there is a declining
trend in crop yields per unit area due to deforestation, loss of
top soil, shortage of chemical fertilizers, lack of irrigation
facilities and other inputs. There is high potential for its
expansion through the management of land and water resources, and
the formulation of a rational agricultural land use plan. With a
view to develop these sectors in a planned way, the Horticulture
Master Plan has been completed and the Livestock Master Plan is
under preparation.
The environmental problems faced by the agricultural sector are
the loss of soil fertility leading to marginal agricultural land
in the Hills and high sedimentation in the Terai. To arrest soil
erosion, afforestation and management of natural forests are under
way. Research on hill farming systems and their expansion are
considered important in sustaining the Hill agricultural systems.
High-yielding and pest-resistant varieties are being introduced in
order to increase per unit area production. Although the
agricultural sector has been getting topmost priority since the
beginning of the First Five Year Plan, the achievements envisaged
have not been attained so far.
1.2 Livestock
Nepal's land resource is under pressure due to the high number of
unproductive livestock. In 1988-89, the population of cattle,
goat and buffalo was 6.3 million, 5.3 million and 3.0 million
respectively. The Middle Mountains have the highest concentration
of livestock. Feed for livestock is derived from forest,
agricultural and pasture lands. About 42 percent of the TDN
requirement is met from forest land. Because of the high
livestock numbers and inadequate grazing land, livestock are
nutritionally stressed. People in the High Mountains also
practice transhumance grazing.
Livestock density per hectare is roughly 7.6 on grazing land, 4.4
on gross cultivated land and 2.1 on forest land (Table B-1). In
the Terai and Siwaliks, livestock density is high at 73 per
hectare of grazing land. It is only 1.4 per hectare in the High
Mountains. Livestock density on cultivated land is high in the
High Mountains and Middle Mountains, while it is low on forest
land.
1.3 Fishery
Total fish and fingerlings production in 1990 amounted to 14,550
M.T. and 32.5 millions respectively, with the average production
of 1.82 M.T./ha. Fish production activities have covered 60 out
of 75 districts and integrated fishery development programmes are
planned in 21 districts.
Table B-1 : Livestock Density by Elevation Zones
_______________________________________________________________
Geographic Region Cultivated Land Grazing Land Forest Land
_______________________________________________________________
1. High Mountain 6.5 1.4 1.1
2. Middle Mountain 5.4 11.7 2.2
3. Siwalik 5.2 73.0 3.2
4. Terai 3.1 73.0 3.2
_______________________________________________________________
Average for Nepal 4.4 7.6 2.1
_______________________________________________________________
The periodic plans have laid down policies to develop and expand
this sector, emphasizing the utilization of potential water
resources, encouraging the private sector in aqua-culture
production and cage fishery, and providing technical services to
increase per unit production. Integrated fish culture in ponds
and cage fish culture programmes in lakes and reservoirs are being
encouraged by providing loans to the private sector. Aqua-culture
development shows the potential for expansion. Production trends
for warm water fisheries indicate the attainment of sustainable
development.
Some of the environmental problems are the high rate of sediment
deposition in rivers, streams, lakes and reservoirs, degradation
of water quality, prevalence of UDS (ulcerative disease syndrome),
drying-up of Terai ponds and occasional washing away of pond
fishes due to flooding.
Biological and limnological studies have been carried out in areas
of intensive fish production on feed and fertilizer, fish disease
and parasite, and growth techniques for fish rearing. They have
identified the problems, and suggested corrective measures such as
the addition of quick lime, potassium permanganate and
trichloroform in fish farms. Similarly, the Aquatic Life
(Conservation) Act 1961 and Rule (1962) have been enacted to
prohibit the use of explosives and poison in killing fresh water
fish.
2. Forestry
There is a high rate of deforestation and forest degradation due
to encroachment, past resettlement, shifting cultivation, and
illicit felling and overgrazing. The present rate of
deforestation exceeds the rate of plantation and natural
regeneration. In order to mitigate such problems, conservation
prescriptions of the Master Plan are under implementation. In
high capital-intensive projects, environmental impact studies have
been conducted, planning capabilities are being strengthened,
environmental guidelines have been drafted, community forestry
activities have been prioritized, and NGOs and private sectors are
being encouraged.
In order to meet the basic needs of forest products without
permanently damaging the resource base, the Master Plan for the
Forestry Sector (MPFS) is being implemented. Management of forest
resources has been directed to augment supply and reduce the
demand for forest products. And in order to achieve this, the
MPFS emphasizes the expansion of activities for community and
private forestry, national and leasehold forestry, medicinal and
aromatic plants, soil conservation and watershed management, and
conservation of the ecosystem and genetic resources with some
supportive programmes on policy, legal and institutional reforms,
human resources development, R&D, forest resources information,
and monitoring and evaluation. In addition, there is also
potential to expand 15.7 percent, out of the total area, for
forestry development. Local interest toward private planting and
participation in community forestry activities is an additional
potential for expansion. The network of national parks, wildlife
reserves and conservation areas corresponding to about 12 percent
of the total area of the country, attempts to protect
representative biological diversity and genetic resources.
To implement MPFS programmes, government funding will reach US $
18.62 million during 1995 to 2000 A.D., and external assistance
will reach an average of US $ 21.63 million during the same
period. As women are the direct beneficiaries of environmental
management and the victims of related problems, they have been
greatly encouraged to participate in forestry activities.
There is need to categorize the total area under different systems
of management, to increase the level of peoples' participation in
community forestry, and to promote private forestry and upgrade
its capability.
3. Social Services
3.1 Education
By 1990, the literacy rate had reached 38.9 percent and about 87
percent of the children in the 6-10 year age group had received
primary education. The aim is to provide primary education for
all 6-10 year old children by the year 2000 AD. In this regard,
primary education had been made free up to grade 6 in 1991. In
addition, the Nepal Education and Human Resources Sector
Assessment Study adopted 5 sub-goals and 18 action recommendations
including better administration to enhance employment
opportunities. Steps have been taken to include conservation
education in school curricula, teacher training, in-service
training and extension services.
In this regard, attempts are being made to review the existing
curricula of formal education in order to identify gaps and
constraints to integrate environment issues into the educational
system. Non-formal extension activities of governmental and
non-governmental organizations have made efforts to create public
awareness.
3.2 Health
The health sector is severely affected by the lack of sanitation
facilities. The pollution level in several rivers is showing an
increasing trend and pollution-related diseases have become more
frequent. Some legislative measures are being taken to mitigate
the pollution problems more effectively.
There is a need to quadruple the existing number of trained
manpower to assist in the adequate incorporation of environmental
consideration in this sector. External assistance has been used
in supporting the training of environmental health personnel, and
water and sanitary engineers. Similarly, special waste problems
have been identified in municipalities, and attempts are under way
to train municipal staff in order to clean up urban areas, and
improve the health status of the people.
3.3 Water Supply
Most drinking water systems in the Hills use spring sources while
ground water is used in the Terai. In the absence of springs,
stream water is used which generally gets contaminated with
suspended sediment during the monsoon. In many cases, human and
animal encroachment leads to contamination of these sources,
necessitating water treatment. Only in certain urban pockets is
water treatment carried out in the form of chlorination. In
Kathmandu and in certain Terai towns, the quality of drinking
water has been impaired due to suspended and biological
impurities. Water testing laboratories have been planned in all
the five centres of the development regions.
Efforts are being made to integrate environmental concerns such as
health and sanitation improvement in the water supply improvement
programmes. The role of women in water supply improvement has
been recognized and the approach is to bring about their
participation in these efforts by encouraging them to participate
in community water supply projects, under specifically designed
production credit programmes.
By the end of the Seventh Plan in 1990, the population served by
piped water supply had reached 7.2 million, representing 38
percent of the total population. About 1.3 and 5.9 million of the
urban and rural population had respectively benefitted. The plan
is to provide access to improved water supply to all by the year
2000 AD.
The water supply improvement programme will also include water
source protection and simple chlorination in rural areas,
rehabilitation of treatment plants and improvement of the
distribution system. In rural water supply projects, efforts are
being made to share costs by involving the local community in the
development. The voluntary contribution is about 10 percent of
the project cost in terms of labour while a water users' committee
operates and maintains the project, including minor repairs. The
investment cost, estimated to extend water supply to the rest of
the population by the end of the decade, is about US $ 735 million
at the 1990 price level.
4. Urban Sector
4.1 Urbanization
In Nepal, the urban sector had a 30 percent share of GDP and about
a 7 percent share of employment in 1988. Major environmental
problems in this sector is created by the concentrated and
haphazard growth of a few urban centres only, resulting in air,
water, soil and noise pollution, loss of prime farm land, lack of
open spaces and services, and a high frequency of
pollution-related diseases.
Studies are being carried out to identify urban environmental
problems, which may result in major decisions and in formulating
appropriate policies and programmes. In addition, EIA guidelines
have been drafted: pollution-prone industries are to be prohibited
from operating in urban centres, and municipalities will be
strengthened for dealing with pollution problems.
Policy components include decentralization of urban planning,
programming and management, expansion of urban jobs/skills,
development of investment strategies, provision of services to
rural hinterland, mobilization of urban resources, and promotion
of the private sector in improving services. It is envisaged that
expansion in urbanization would be sustainable only through the
implementation of a realistic urban development policy, by
developing the institutional capabilities of the municipalities,
facilitating bottom-up planning processes and by incorporating
social cost/benefit schemes.
4.2 Infrastructure
Urban environmental problems are generated through poor
sanitation, laying of parallel drinking water and sewerage pipes,
incorrect disposal of domestic wastes without specifying proper
disposal sites, discharge of industrial effluents and sewage, and
loss of prime farm land as a result of haphazard settlement and
industrial establishment.
Infrastructural services in urban areas are substandard and
inadequate. HMG has given due recognition and attention to the
development of this sector. Recently, several donor agencies were
actively involved in infrastructure development projects. To meet
these needs, urban roads, water connections, storm water drainage
and solid waste collection are to be extended and increased by
1.8, 2.7, 9.0 and 17.0 times respectively between 1987-2002,
requiring a total investment of US $ 405 million. It is necessary
to expand the infrastructural facilities in urban areas but the
municipalities, at present, lack the investments, trained manpower
and institutional capability to maintain existing infrastructures.
4.3 Housing
Housing investment is directly associated with the level of per
capita GDP. In Nepal, 93.6 percent of the households possess
their own dwellings (96% in rural and 76% in urban areas). There
are 2.8 million dwelling units: 2.6 million in rural areas and 0.2
million units in urban areas. The share of the households living
in rented dwelling units accounts for 19.7 percent in urban areas
and 1.6 percent in rural areas. At present, a sample household
survey is under way with a view to formulating a National Shelter
Strategy for Nepal. In meeting the ambitious target of the Basic
Needs Programme, HMG proposed programmes on service-centered
development in rural areas, involving the private sector in
low-income housing, using cost recovery criteria, promoting
municipalities involved in services projects, and implementing
guided land development programmes.
A structural plan for each municipality has been prepared. There
is high potential for urban development in the Terai area along
the strategic locations of the East-West Highway. In the Hills,
urban development is expected to decline because of depletion of
the resource base. It is assumed that expansion in the housing
sector would be sustainable through developing an appropriate and
realistic national housing strategy, implementing national urban
development policy with provision of utility services, giving due
attention to urban environmental planning, financing low to middle
income households with long-term and soft loan provision,
providing technical assistance, revising conventional accounting
procedures and emphasizing social cost/benefit analysis with
consideration to environmental aspects.
Attempts have been made to identify the pollution problems
resulting from the rapid increase in housing units and industrial
establishments. Domestic air pollution problems occur in rural
areas because of the lack of chimneys, the design of high altitude
houses, and the burning of moist wood to cook and heat the houses
in cold areas. National EIA guidelines have to be finalised, and
pollution-prone industries in some municipalities have to be
restricted. However, there is no specific monitoring authority
for environmental pollution and even the existing legislative
provisions have not been enforced strictly. As the construction
of houses is increasing at a rapid rate, it is essential to
consider environmental aspects at an early stage of urban
development. The concerned agencies have already outlined
specific policies for orderly and efficient development of urban
settlement.
5. Industry and Tourism
5.1 Manufacturing
Industrial development in Nepal is still at an early stage and its
share of GDP is only 10.5 percent. The findings of past studies
at policy and macro-level as to feasibility and studies at the
company level on management capability, productivity improvement
and energy efficiency revealed the need and potentiality of
expansion of this sector, especially for providing impetus to
economic growth. There is need to allocate scarce resources
efficiently, to promote the sector so that there is additional
income and greater employment, and to set environmental standards
and enact legislation with incentive provisions that adequately
consider the environment management of this sector.
At present industrial pollution problems have been identified in
leather and tanning, paper, magnesite, cement and brick factories.
With a view to initiating mitigation and precautionary measures,
some attempts were made at minimizing environmental pollution in
the Industrial Policy and Enterprises Act (1987). In addition,
some air pollution-prone industries such as cement factories have
been contemplating installation of electrostatic precipitators
(ESP), wet scrubbers and bag filters. The Ministry of Industry is
drafting Environmental Impact and Risk Assessment Guidelines that
incorporate environmental considerations in industrial
development. The Ministry is also establishing an environmental
unit, introducing EIA both in public and private sector
industries, introducing a procedure for the submission of
environmental protection plans, enacting the Environmental Quality
Act, developing guidelines for the zoning and siting of industries
and the handling of toxic wastes, and developing a comprehensive
industrial environmental information system to help achieve
sustainable industrial development in the country.
5.2 Mining
The mining sector has a three percent share of GDP. This activity
has been regulated by the Nepal Mines and Minerals Act (1985),
Forest Act (1961) and the Forest Protection (Special Arrangement)
Act (1968).
HMG is planning to develop a geological data bank, formulate
appropriate policy and mining codes, conduct field-oriented
training, and coordinate marketing efforts. About half of the
total area of the country has been covered by geological mapping.
HMG is planning to develop a mineral master plan.
The environmental concerns noticed in mining operations are
primarily related to deforestation, disposal of over-burden
materials, soil erosion and diversion of mountain streams. Though
consideration of the environment is incorporated in the Mineral
Act of 1987, because of the absence of a specific monitoring and
law enforcing agency concerning environment, the issues still
remain. HMG has also formed a technical committee to study the
problem of stone and boulders excavation, and has suggested
mitigation measures.
5.3 Tourism
Nepal's rich natural environment and cultural diversity provide
good opportunity for developing the tourism sector. Tourists
visit Nepal mainly for pleasure, sight-seeing, white-river
rafting, trekking, mountaineering and other adventure sports. In
spite of the Gulf crisis, tourist arrivals in mid-December 1990,
was 0.26 million, an increase of 6.23 percent on last year's
figures. Tourism has been a major foreign exchange earner that
accounts for 23.9 percent of the total foreign exchange earnings
of the country. Tourism has been introduced in this country with
the basic objective of generating foreign exchange as well as a
means of accelerating economic development. The growth of tourism
in urban areas is handicapped by the lack of financial resources
to develop the infrastructure and superstructure, whereas rural
tourism development has not picked up because of its limited
visitor-carrying capacity. However, tourism development
programmes in the past have been initiated without careful
examination of the availability of resources and the likely impact
on the socioculture and environment. Expansion in the number of
visitors in rural and mountainous areas could be sometimes
detrimental if adequate environmental considerations are not taken
into account. Environmental problems are more or less confined to
adventure tourism. Increasing numbers of trekking/mountaineering
tourists, and their concentration in some specified areas, have
exerted pressure on mountain forests for fuel wood and timber.
Some other adverse impacts noticed are inadequate disposal of
solid wastes and increasing contamination of drinking water.
There are also some adverse social and cultural influences.
Attempts are being made to minimise such adverse impacts through
education, occasional mountain clean-up campaigns, providing
alternative sources of energy such as kerosene, enforcing
legislative provisions of the Tourism Act (1978), and developing
and implementing a multi-conceptual park management system with
local people participation.
Seasonal and regional dispersion of tourist flow, provision of
alternative sources of energy and consumption of locally produced
goods and services make the sector sustainable. Nepal's
unexplored areas and rich geo-cultural diversity provides
certainly a basis for expansion for tourism if it is well planned.
Keeping these in mind, some of the remote areas closed to
foreigners so far, have now been opened for soft tourism. The
regulations on visiting the heretofore restricted areas
specifically provide for a strict environmental code of conduct to
be followed and every organized package trip to be accompanied by
a liaison officer.
In recent years, tourism as a means of economic development in
Nepal has become a subject of debate. However, if properly
planned, regulated and coordinated, tourism can be an useful agent
of economic development, but if allowed to develop in a haphazard
manner, tourism can well turn out to be a negative factor
resulting in minimal economic benefit at a very high social and
environmental cost. These concerns are being fully considered in
the future tourism plan of the country.
6. Water Resources
6.1 Irrigation
At present, irrigation is provided to some 0.943 million ha of
cultivated land. To meet the agriculture production target set
out by the Basic Needs Programme, irrigation has to be provided at
the rate of some 60,000 ha per year in order to irrigate 1.25
million ha of land by the year 2000 AD. The irrigation command
area is under expansion by government, agency-assisted farmer
managed and exclusively farmer managed irrigation schemes.
Feasibility and pre-feasibility studies of irrigation projects
with large command areas reveal the expansion potential on a
further 190,950 ha of land.
The high rate of sediment deposition in dams, channels and even on
farm land is one of the major environmental problems. The
recently established Environment Section in the Department of
Irrigation plans to start the incorporation of environment aspects
both in the Hills and in the large-scale irrigation schemes.
Recently, major irrigation projects have undergone EIA in order to
identify major environmental impact and prepare mitigation plans
to minimize irrigation-related environmental problems.
6.2 Hydroelectricity
The hydro power installed capacity in Nepal is only 238 MW out of
the 83,000 MW of theoretical potential, providing electricity to
only 9 percent of the total population. After the commissioning
of the Arun III Hydro Project, the total installed capacity would
reach 654 MW by the year 2000 AD while the peak power demand at
that time is estimated to be 396 MW. There is much scope and
potential to operate run-off river power projects.
Pre-feasibility, feasibility and detailed feasibility studies have
been carried out on several rivers, including large ones. The
preparation of a master plan for small hydro power development
projects is in its initial stage. The major environmental problem
in this sector is the high rate of sediment deposition in the dams
and reservoirs. To assess potential environmental impacts,
environmental studies have been carried out or are under way in
the Trisuli Devighat Upgrading Project, the Marsyangdi Hydro Power
Project, the Karnali (Chisapani), Arun-III, Upper Arun and Sapta
Gandaki Hydro Power projects. These studies are assisted by the
environmental unit of the Nepal Electricity Authority with a
provision to consider environmental aspects of water resource
development.
B-III. DEVELOPMENT TREND
1. Economic Growth
Nepal has not been able to achieve much economic growth despite a
series of development plans since 1956 and an increasing trend in
foreign aid. The poor performance of the agricultural sector has
been further accentuated by rising population pressure on land and
limited resources. With little sectoral shift, the pervasive
dependence on land has led to the deterioration of the
environment. Nepal had a per capita income of US$ 180 per annum
in 1988. The appreciation of the dollar by about 14 percent
during the last year and the recent devaluation of the rupee by
about 20 percent has lowered per capita income to US$ 113 at
current exchange rates. The per capita GDP of Rs. 5241 in 1990/91
at the current exchange rate of Rs. 42.70 to a US dollar is
equivalent to about US$ 123 per annum.
In 1990/91, the gross domestic product of Nepal was estimated to
have reached US$ 3230.4 million at current prices. GDP by origin,
at two points in time, shows that agriculture continues to be the
dominant sector in the economy (Fig.4) although its share since
1978/79 fell by about 11 percent in 1988/89. There has been a
substantial increase in community and social services while the
contributions of other sectors have been marginal. There has been
no significant growth in the economy mainly because of stagnant
agriculture and a weak industrial base.
GDP growth was 2.31 and 2.01 percent respectively in 1988/89 and
1989/90. This implies a decline in economic growth, especially
since the population has been growing at a sustained rate of 2.6
percent per annum. From a surplus producer of foodgrains in the
1960s, Nepal has now become a net importer of food, producing only
80-85 percent of her needs. There was some improvement during
1990/91 with GDP registering a growth of 4.01 percent.
The Gross National Product (GNP) grew at a rate of 8 percent in
1974/75 to 11.7 percent at current prices in 1988/89. This growth
is insignificant when discounted for inflation. The gross factor
income and transfer income are two major sources influencing GNP
growth. Foreign savings have been mainly responsible for keeping
GNP (US$ 3156 million in 1989/90) higher than GDP (US$ 3113
million). During the last couple of years, gross factor incomes
have been increasing while transfer incomes have been falling.
The per capita national income in 1989/90 was US$ 170 at current
prices.
Total investment increased from 14.5 percent of GDP in 1974/75 to
18.2 percent in 1989/90, with marked fluctuations. A large part
of the investment was financed from external sources as internal
savings were quite low. In 1988/89, gross capital formation
amounted to US$ 493 million, a slight decline (0.75%) over the
previous year due to increased consumption. The performance of
the public sector in Nepal has not been very encouraging with a
large part of the investment providing only marginal returns.
The consumption pattern in Nepal is typical of a low income
country where the major part of the income is spent on food and
other essentials. There has been no change in the extent of
consumption over the last 16 years. Total consumption in 1989/90
was 90.7 percent of GDP as compared to 90 percent in 1974/75 and
85.9 percent in 1984/85. It not only shows a low savings rate but
also an unstable pattern. Another factor which is not conducive
to sustained economic growth is the rising trend in public
consumption, which increased from 8 percent in 1974/75 to 11.7
percent in 1989/90.
The gross domestic savings record is also quite erratic. Average
annual savings increased at the rate of 12.3 percent between
1979/80 and 1989/90 compared to only 7.1 percent between 1974/75
and 1982/83. Gross domestic savings as a proportion of GDP has,
however, declined over the last 16 years from 10 percent in
1974/75 to 9.3 percent in 1989/90 with fluctuations in between due
mainly to high liquidity in the economy and lack of alternative
investment opportunities. To encourage past shortcomings and to
boost the economy, the country, in its forthcoming Eighth Five
Year Plan, will initiate new policy directives.
2. Finance
The discrepancies between investment and savings, trade and
balance of payments, and revenue and expenditure have made the
country's financial position precarious. Government expenditure
has been growing at an unsustainable rate in view of the weak
productive base and fragile revenue system. Expenditure grew at
an average annual rate of 18.6 percent during the period 1974/75 -
1989/90. Regular and development expenditures in 1974/75 were US$
54.7 million and US$ 96.7 million respectively. The absolute
amounts increased by 12.2 times and 12.9 times in rupee terms by
1989/90. The rising trend has continued since 1981/82, when total
government expenditure increased by 31 percent over the previous
year.
Resource allocation in the public sector had been very inefficient
during the previous regime. Investments were made without due
consideration of the financial or economic viability of the
projects and the economy's capacity to sustain them. The rapid
increase in regular expenditure and share of consumption in
development expenditure (68% of the development budget in 1989/90
went for consumption purposes) have created many distortions in
the economy. There has been minimal trickle-down effect because
of the extremely high consumption component in government
expenditure.
The country depends heavily on imports for revenue, over half of
the total revenue collection. However, the majority of the people
still remain outside the tax net including high-income individuals
and businesses who benefit most from government facilities. Thus,
government revenue does not relate to the volume of economic
activity while fiscal policies remain ineffective in directing the
course of economic development. In spite of the many revenue
facilities enjoyed by the industrial sector, its contribution to
government revenue has been insignificant. Without effective
fiscal instruments, the government has had to depend increasingly
on the more accessible foreign assistance and loans to finance its
increasing expenditure.
The total outstanding debt reached US$ 1914 million at the end of
the first nine months of 1990/91, out of which 77 percent was
external loans and the remaining 23 percent, internal. The total
outstanding debt was 57.2 percent of GDP, with external debt
accounting for 41.5 percent and internal loans, 15.7 percent. The
government's increasing dependence on loans to finance its
deficits has put a great strain on the current account balance.
This strain has been disguised by the flow of external finance.
Foreign outstanding debt increased by 21.1 times in 1989/90 over
1979/80. The problem has been further aggravated with the private
sector being increasingly squeezed out of the money market as the
government takes recourse to financing deficits through loans from
the banking system and consequently also putting pressure on the
balance of payments position.
The ratio of expenditures to GDP in Nepal which was 22.2% in
1989/90, has been growing continuously over the years although it
is relatively less than the neighbouring countries of Pakistan
(26%) and Sri Lanka (over 30%). Of the total government
expenditure in 1988/89, 65 percent was spent on consumption goods.
Regular expenditure accounted for about 38 percent of total
expenditure during the first nine months of 1990/91. As a result
of the mistakes in the past, the major part of regular expenditure
goes as payment of salaries and allowances, subsidies to public
enterprises and debt servicing. Debt servicing was 34.2 percent
of the regular expenditure budget in the fiscal year 1989/90, an
increase of 25.4 percent over 1974/75.
Resource mobilization in Nepal has been among the lowest in the
world. Total revenue in 1989/90 accounted for 10.1 percent of
GDP. The tax base is presently extremely narrow with import-
related taxes being the major source of revenue. Revenue from
custom and sale of goods and services accounted for about 80
percent of total tax revenue in 1988/89 without any appreciable
shift from the condition prevailing in 1978/79 (Fig. 5). The
positive correlation between imports and revenue is documented by
the following statistics: imports during 1984/85-1988/89
registered an increase of 16.3 percent annually while revenue
collection grew at an annual rate of 15.7 percent. Imports
recorded 8.2 times higher rate of increase during the period while
revenue increased only by 7.7 times. About one-fifth of total
revenue was derived from non-tax sources, including a major
contribution from license fees, import licenses and auctions.
External dependence has increased substantially. In 1974/75,
external assistance was 25.5 percent of total government
expenditure and 40 percent of development expenditure. By
1988/89, the share of foreign aid had increased to 40.8 percent
and 59.6 percent of total and development expenditure
respectively. The volume of foreign aid increased substantially
during 1984/85-1988/89 with commitments and disbursements
increasing at an annual rate of 27.4 percent and 23.6 percent
respectively, at current prices. The implementation of the
Structural Adjustment Programme in 1986/87 brought even greater
increases in foreign assistance. The level of foreign aid
commitment increased by 36.1 times in rupee terms, between 1974/75
and 1989/90. In terms of US dollars, however, foreign aid
commitment increased only by 9.2 times from US$ 43.8 million in
1974/75 to US$ 403.2 million in 1988/89 at current prices,
indicating a substantial erosion in the value of the rupee as
compared to the US dollar. While 73.1 percent of aid
disbursements was in the form of grants in 1979/80, it declined to
22.9 percent in 1988/89 due to substantial increase in the loan
component. Debt servicing commitments are already taking up a
major share of the government's regular expenditure.
Bilateral aid constituted 30.1 percent of total aid disbursement
of US$ 219.6 million in 1988/89. The annual growth rates of
bilateral and multilateral aid during the 1978/79 - 1988/89 period
were 12.2 percent and 24.3 percent respectively. A larger part of
the bilateral aid was in the form of grants while multilateral aid
comprised mainly of loans. More than half of the aid
disbursements (55.1%) went into infrastructure development (power,
transport and communication) while agriculture, irrigation and
forestry were allocated 25.9 percent of the total. The sources of
finance for 1979/80 and 1989/90 show that while the proportion of
foreign loans and internal borrowing had doubled while the foreign
grant component had declined, indicating a greater debt burden on
the economy.
Between 1974/75 and 1982/83, the major part of foreign aid
commitments were to the agricultural, power and transport
sectors. In recent years, priority has shifted to the power,
communications, irrigation and education sectors. In 1989/90,
18.8 percent of aid commitment was made to the agricultural,
irrigation and forestry sectors. Transport and communications
received 19.4 percent, power 20.1 percent, education 4.4 percent,
and health, social services and other sectors, 37.3 percent.
Foreign aid commitment for 1989/90 was US$ 529.5 million, out of
which the Nepal Aid Group, comprising the World Bank, UNDP and ADB
member countries, committed 82.6 percent. The protection and
conservation of the environment in developmental activities has
been receiving increased emphasis in recent years.
The resource gap has increased especially since 1981/82 when the
deficit stood at 54.2 percent. In 1988/89, expenditure was US$
697.8 million and revenue only US$ 301.4 million, with a deficit
of 56.6 percent. Many distortions have thus crept into the
economy like spiralling prices, heavy imports and low savings.
The reliance of the budget on foreign assistance during
1974/75-1988/89 increased by 17 times. Internal borrowing
increased by 23.3 times in 1988/89 over 1974/75. External
assistance and internal borrowing increased to 9.5 percent and 3.7
percent of GDP respectively in 1988/89 from the 1974/75 figures of
2.3 percent and 0.7 percent. The Structural Adjustment Programme
(SAP) failed to curb the fiscal deficit as expected over the
three-year period beginning 1986/87. The deficit was 37.4 times
greater in absolute terms in 1988/89 than in 1974/75. This has
had a strong negative impact, especially on prices, the brunt of
which is borne by the common person.
Internal loans have also become an integral part of deficit
financing, with the banking sector owning 72 percent of the total
outstanding government bonds, which accounted for 15.8 percent of
GDP in 1988/89. The heavy reliance on the banking system has
increased money supply which in turn has greatly affected prices
and resulted in high inflation.
Foreign debt has increased at the rate of 33 percent per annum
between 1974/75 and 1988/89. From Rs. 34.1 million (US$ 3.4
million) in 1974/75, the net outstanding foreign debt increased to
Rs. 33,691 million (US$ 1186.3 million) at the end of the first
nine months of 1989/90, which is equivalent to 39.7 percent of
GDP. The increase in foreign debt has been especially significant
after the implementation of the SAP.
Nepal does not need to restructure its debts in the immediate
future as almost 99 percent of its loans carry interest rates of
less than 3 percent and a maturity period of 20 to 40 years. The
debt servicing burden has, however, been rising fast in terms of
amortization and interest payments and also in the depreciation of
the Nepali rupee compared to the US dollar. Although Nepal's debt
service ratio is low compared to neighbouring countries, the
strain on its economy is apparent from the fact that debt
servicing accounted for 30.3 percent of the country's regular
expenditure in 1988/89 and this increased further to 34.2 percent
in 1989/90. The situation calls for the urgent attention of the
international community on debt relief for poorer countries.
3. Trade
During the last 16 years, Nepal's trade deficit has been growing
with exports increasing at the rate of 12.5 percent per annum and
imports registering a 18 percent growth rate. The country's
exports amounted to US$ 176.5 million during the first nine months
of 1990/91 while imports were valued at US$ 541.8 million.
Although trade with India declined from 82.2 percent in 1974/75 to
30.8 percent in 1991, through trade diversification incentives, it
is still the major source of imports of essential commodities and
exports of primary products. Trade diversification occurred
mainly from the import of petroleum products, fertilizer and
construction material aid and other goods from third countries and
the export of carpets and ready-made garments. The liberal trade
policy with India following the recent Trade Treaty is expected to
increase trade transactions in the coming years.
India is still, however, the most important trading partner of
Nepal as clearly experienced during the trade and transit deadlock
of 1988/89. The trade deficit with India has been increasing at
the rate of 11.1 percent per year during the last 15 years.
During the first nine months of 1990/91, trade deficit with India
increased by 35.2 percent (amounting to US$ 137 million) while
third country deficit recorded a growth of 14.9 percent (US$ 228.3
million) during the same period. The composition of foreign
trade has undergone some structural changes with a shift from
export of primary products to manufactured items. While the share
of primary products was 82.4 percent of total exports in 1974/75,
it had fallen to 26.4 percent by 1987/88, mainly due to
insufficient production at home and unfavourable prices in India.
About 72 percent of Nepal's total exports to India, during the
first nine months of 1990/91, was based on natural resources.
Major items included jute goods, rice bran oil, pulses, oil cakes,
ginger, live animals, mustard and linseed. Natural resource-based
products accounted for only a negligible portion of exports to
third countries and comprised mainly of hides and skins. Exports
of finished products increased from 8.7 percent to 63.1 percent
during the same period. However, exports are dominated by woollen
carpets and ready-made garments mainly to German and US markets.
Without diversification of exports, both in terms of products and
markets, it will be difficult for Nepal to maintain sustained
exports.
Although the trade deficit, calculated in US dollars, had
increased to 17.4 percent per annum by the end of 1987/88 relative
to 1982/83, the balance of payments position continues to remain
favourable. This has been made possible mainly due to the flow of
external assistance. The impact of the unfavourable terms of
trade is, however, already reflected in the rapid increase in the
current account deficit, which rose by 2.4 times (US$ 342.5
million) in 1987/88 over 1983/84. The current account deficit is
being met mainly from loans.
Nepal's external trade position continues to be highly
unfavourable in spite of the many reforms introduced by the
government from time to time. There has been substantial
diversification in trade over the years with India. Nepal's
dependence on India for essentials, however, continues unabated.
Because of the highly unfavourable trade balance, the overall
deficit has been growing at the rate of 20.1 percent during the
last 15 years. Various distortions have also surfaced in the
economy due to the highly unfavourable balance of trade. Trade
reforms have been implemented under the SAP using such measures as
the licensing system, the OGL/passbook system and auctioning of
import licenses for commercial items. In March 1989, the
government introduced cash incentives on the export of certain
items to third countries.
4. Demographic Trend
Rapid population growth has become the main constraint to
sustainable economic development in Nepal. The intercensal
population growth rate was 2.66 percent per annum during the
1971-81 period. The momentum of growth has remained unchecked and
the country today has an estimated population of 18.4 million.
About 40 percent of the total population is below 15 years with
the median age at 19.9 years. This signifies a great potential
for rapid growth in the ensuing years.
Even with the implementation of various population control
measures, vital rates indicate that the growth rate will remain
consistently high at least up to 2000. Without control
mechanisms, a substantial rise in population will continue as the
crude birth rate remains consistently high (39.7 per thousand in
1981) and the death rate continues to decline (13.5 per thousand
in 1981). The high infant mortality rate (108 to 144 per thousand
live births) has kept the total fertility rate as high as 5.58 to
6.02.
About 80 percent of the total migration in Nepal is rural based.
The intercensal decade added about 397,000 net lifetime migrants
to the Terai population by 1981. Only about 6.4 percent of the
country's population lived in the 23 designated urban centres in
1981. The country had 33 designated urban areas with an estimated
population of 1.57 million in 1987. The urban growth rate of 7.6
percent was about three times higher than the national average.
Almost 40 percent of urban growth is attributed to migration.
Although literacy rate has increased over the years, it was
estimated at only 34.8 percent in 1986. While 51.8 percent of the
male population was literate, the literacy rate among females was
only 18 percent. Literacy among the urban population was found to
be almost double (62.7%) that of the rural population (32.5%).
The intercensal growth of the economically active population
averaged 3.51 percent annually, with the population 10 years and
above growing at 2.55 percent. The labour force increased by 2.3
million between 1971 and 1981 of which 2 million were economically
active. This has led to increased underemployment in the rural
sector as there is very little intersectoral mobility. The
agriculture sector continues to absorb the vast majority of
entrants who join the labour force every year. This phenomenon
has created extreme pressure on the natural resource base,
especially as productivity remains stagnant and land holdings grow
smaller and more fragmented.
There has been no significant change in the pattern of employment
over the last four decades, with over 90 percent of the population
still engaged in primary activities. According to a recent survey
conducted by the Nepal Rastra Bank, agriculture and related
activities account for 82.2 percent rural and 34.4 percent urban
employment. The labour force participation ratios have been
estimated at over 80 percent for males and less than 50 percent
for females.
The intense pressure on land has contributed significantly to
increasing absolute poverty in Nepal. Growing desperation for
mere survival has prompted the poor farmer to exploit the natural
resource base beyond its capacity to regenerate. Increasing
marginalization of agriculture has occurred, especially in the
Hills where resources are severely strained, as the number of
dependents on a piece of land grows and productivity continues to
decline.
Future demographic prospects are even more daunting. Even if
Nepal is successful in curbing fertility over the next decade, the
country's population will rise to 24 million by the year 2000 AD
and will double by the year 2015. Current efforts to combat
population growth will have some impact only by the year 2030. In
Nepal today, 4.1 million girls are approaching reproductive age, a
figure which is 50 percent higher than all women currently
fertile. Population dynamics indicate that although efforts at
curbing fertility and growth will have no impact during this
generation, the next generation will benefit tremendously from the
initiatives that are taken now. As population control becomes the
long- term objective, short and medium-term efforts should be
directed toward increasing general employment levels (through
capital widening and deepening); expanding rural-based
development and employment (to avoid influx to urban areas);
investing in health and family planning, education, housing and
infrastructure; improving accessibility and flow of information on
contraception and related fertility curbing methods, and food
supply.
5. Income Distribution
A predominantly agricultural economy, with over 90 percent of the
population dependent on agriculture and related activities for its
livelihood, land is the most important resource in Nepal. In a
country where only one-fifth of the total land is cultivated, the
pressure on land has become extremely high. Fragmentation of
already minuscule holdings has resulted in increasing
marginalization of agriculture, pressuring the very poor to
exploit the environment beyond its regenerative capacity. All
these have contributed in declining agricultural productivity and
creating a vicious circle of want and malnutrition.
The dominance of agriculture as the major source of income and
livelihood directly relates it to income distribution. Half of
about 2.2 million farms in the country are less than 0.5 ha in
size, the average land holding being a mere 0.15 ha and this too
undergoes an average of three fragmentations. On the other hand,
16.1 percent of the farmers own 62.8 percent of the land,
indicating a highly skewed ownership pattern. The proportion of
landless households had progressively increased to 20 percent by
1981/82.
The poor performance of the agricultural sector is a major factor
in contributing to increasing poverty in Nepal. Grain production
increased at the rate of 1.5 percent during the period 1975/76 to
1985/86 with productivity falling by 0.5 percent and population
recording a growth of 2.6 percent. Per capita production thus
fell from 92 percent of requirements in 1976 to 80-85 percent in
1988. The natural resource base has been severely damaged during
the last 16-17 years with the forest crown cover being reduced by
more than 25 percent. This has increased soil erosion in the
Hills, created fuel wood shortages and compelled households to
burn dung and thus rob the land of valuable soil nutrients.
According to a National Planning Commission (NPC) estimate, 42.5
percent of the country's population is below the poverty line.
The NPC estimated a poverty line income of Rs. 1,971 (US$ 110) per
person per annum at 1984/85 prices, basing it on minimum caloric
requirement. Even in view of the NPC estimate, 40-60 percent of
the country's population live at levels below minimum caloric
intake, with 97 percent of the absolute poor living in rural
areas. It is estimated that the majority of the population living
in the Hills and Mountains and a quarter of the Terai population
fall below the poverty line. The environmental implication of the
increasingly marginalized farming system of the Hills has become
quite serious.
A sample survey conducted by the NPC in 1976/77 showed that the
bottom 40 percent of households in the country received only 8.7
percent of incomes whereas the share of the top 10 percent was
46.8 percent. Another survey conducted by ARTEP (Asian Regional
Team for Employment Promotion) found that the bottom 40 percent
shared 13.9 percent and 10.7 percent of the Hills and Terai
incomes respectively. The top 10 percent on the other hand
received 32.1 percent and 38.5 percent of incomes in the Terai and
Hills respectively. The relatively high Gini coefficients of 0.59
in the NPC survey and 0.43 (Hills) and 0.51 (Terai) in the ARTEP
study indicate the incidence of inequality between the two groups.
The Multi-Purpose Household Budget Survey conducted by the Nepal
Rastra Bank in 1987, estimated the Gini coefficient at 0.57,
corroborating the results of earlier studies.
The Gini coefficient of per capita income is, however, a more
appropriate measure of income distribution than total income,
especially in Nepal where wealthier households support
increasingly larger numbers than the poor households. The per
capita measure shows that with a Gini coefficient of 0.25, income
distribution in Nepal is fairly even. The bottom 40 percent share
23 percent of total income with the top 10 percent receiving the
same proportion (Table B-2). Except for the Mountains where the
distribution of poverty is almost uniform, area and rural/urban
income distribution depict almost the same pattern as income
distribution for the whole of Nepal.
The almost flat income distribution in the country precludes the
possibility of any meaningful redistribution measures. The heavy
population pressure on land, the country's major resource, has put
a severe strain on its availability. Without a substantial
increase in farm productivity and commensurate compensatory
off-farm income earning opportunities, poverty cannot be
effectively tackled. To achieve these goals, economic growth has
to be accelerated along with population control.
Table B-2 : Per Capita Income Distribution in Nepal
(Percentage Share of Income)
_________________________________________________________________
Rural Urban*
____________________ ________________________
Income Group Nepal Terai Hills Mountain Terai Hills
_________________________________________________________________
Bottom 40% 23 24 23 33 27 24
Middle 50% 54 53 56 54 52 56
Top 10% 23 23 21 13 21 20
________________________________________________________________
Note : * No urban areas in the Mountains
The Land Administration and Land Act (1964) attempted to bring
changes in the agrarian structure. Available information
indicates that the land ownership pattern is highly skewed with 9
percent of households owning nearly 53 percent of the cultivated
land. The Agricultural Statistics of Nepal (1983) estimated 1.93
ha as the average operational land holding size. It is lower in
the Hills (1.12 ha) than in the Terai (2.31 ha). In the Hills,
more than 60 percent of the farm households own less than one
hectare of land, the average being less than 0.5 ha. This
disparity in land holding has encouraged cultivation of more and
more marginal land and shifting cultivation on steep land leading
to more soil erosion. Uneven distribution of assets and income
opportunities have also put extra pressure on land
resources-marginal land, adjoining forest land or grazing areas.
In order to address the problems of land resources, the Fifth Plan
introduced a land use planning concept in 1975. The Sixth Plan
(1985-90) adopted a land use policy that prescribed restricting
the cultivation of unproductive and marginal land, afforesting
degraded land and implementing soil conservation measures.
B-IV ENVIRONMENTAL ISSUES
1. Introduction
The major environmental problems in Nepal are land degradation,
deforestation and pollution. Poverty is the root cause of
environmental degradation as land and forest resources are over-
exploited because of heavy dependency in the natural resource
base. However, water and mineral resources are under-utilized
because of lack of financial resources and infrastructure due to
the low level of economic development. Recently, pollution
problems have also emerged, though limited to urban areas.
2. Land Degradation
In Nepal, the Siwaliks and Middle Mountain zone are more
susceptible to erosion. The former has erodible soil and poor
geological formation while the latter has high population pressure
with limited productive areas. An increasing rate of soil erosion
accompanied by the loss of nutrients, inadequate water management
and increased dependence on the monsoons are the primary causes of
declining agricultural productivity. A rough estimate of surface
soil loss in the Mountains/Hills ranges from 5-10 tons/ha/yr in
well-managed land to 40-200 tons/ha/yr in degraded land.
Cultivation on sloping land causes high nutrient loss and as a
result land degradation is severe.
Also, overgrazing, overuse of marginal land followed in the past
and shifting cultivation practices are contributing to the loss of
fertility. The absence of a national land use policy and
programmes, and a narrow sectorial approach have further led to
land use conflicts, particularly between forestry and agriculture.
One of the causes of decline in soil fertility is the uneven and
inappropriate use of chemical fertilizers which are used without
understanding soil fertility status, nutrient availability and
crop requirements. In Nepal, the average use of chemical
fertilizers is only 19 kg/ha which is the lowest among the South
Asian countries. Out of the total consumption, about 72, 7, 19
and 2 percent of the chemical fertilizers are consumed in the
Terai, Kathmandu Valley, Middle Mountains and High Mountains
respectively. The consumption of pesticides in Nepal is only
about 0.25 kg/ha. In spite of the use of chemical fertilizers
including improved seeds, productivity has improved very slightly.
About 20 percent of the cattle population in Nepal are
unproductive which exert heavy pressure on forest, agriculture and
grazing lands. The increasing number of livestock further
contributes to accelerate forest degradation, compaction of soil
leading to the suppression of vegetation growth, and also to soil
erosion.
High erosion rate, landslides and river bank cutting have
increased sedimentation and flood hazards in the plains, including
river beds and agricultural land. Nepal is estimated to lose 240
million m3 of sediment annually through its river system. The
Karnali, Sapta Gandaki and Sapta Kosi rivers respectively carry an
estimated 60, 73 and 142 million m3 of suspended load
annually. As the sediment load carried by the major rivers is
high, any storage projects in these corridors have a high
siltation rate.
Most rivers of Nepal are subject to changing courses in the Terai
during the flood season while in the Hills, bank cutting is a
serious threat. Generally, at the debouching point in the Terai,
the rivers are braided which change to meandering form at
downstream stretches. The Sapta Kosi river in the last 250 years
(1729-1979) has shifted about 125 km westward in India and about
40 km westward in Nepal. Similarly, the rivers lying east of
Butwal in West Nepal are shifting eastward. It has been estimated
that floods incur a loss of about 30 percent of revenue in the
Terai and 2 percent in the Hills.
The problem of flooding in the Terai is also high due to the high
bed load carried by the rivers in addition to the suspended load.
In the plains, almost all the rivers are widening and cutting
their banks each year. River beds of some Terai rivers are rising
at an annual rate of 15-30 cm, due to high sedimentation.
Although no systematic information on slope failure due to
construction activities such as roads and canals have been
collected, some studies have shown that 5 percent of landslides
were associated with roads and trails. With the opening of more
hill roads and trails, the landslide events triggered by these
activities could go up. Similarly, some of the farmer-built
irrigation canals have been found to induce mass wasting.
3. Deforestation
Encroachment of forest areas occur through the expansion of
agricultural and grazing land. As forest distribution in the
country is uneven in relation to population, accessible forests
are over-used. Consequently, forests are not able to meet the
increasing fuel wood, fodder and timber requirements. Increasing
numbers of unproductive cattle are also compounding the problem as
about 42 percent of the TDN for cattle is obtained from forests.
As the level of extraction of fuel wood, fodder and timber, and
overgrazing exceed forest regeneration and plantation rate, more
forests are gradually being lost. The Hill-Terai migration has
further led to encroachment of forests to create agricultural
land. Extra croplands in the Hills are created by encroaching on
marginal lands. As a result, forests that contribute about 15
percent share of GDP are declining both in quantity and quality.
Resettlement programmes launched by HMG/N since the 1960s, have
also accelerated the destruction of the Terai climax forest. A
total of 0.1 million ha of forest in the Siwaliks and the Terai
were cleared under settlement programmes from 1950s to 1985.
About 22,700 ha of the total forest areas were cleared during
1979-1985. It has been estimated that an equal area of forest
could have been lost due to illegal settlement during the same
period. The period of political transition i.e. Referendum,
People's Movement and General Election, have been associated with
extensive destruction of forests. Illicit felling of timber for
smuggling across the border is one of the major causes of
continuing forest destruction in the Terai. The annual
deforestation rate has been estimated to be 0.4 percent (Table B-
4). Destruction is highest in the Terai where the annual
deforestation rate reached 3.9 percent during 1978-85, followed by
1.1 percent in the Siwaliks while in the Hills, the rate is
insignificant.
Limited attempts have been made to conserve bio-diversity outside
parks, reserves and protected areas. It is assumed that about 20
bird species have probably become extinct in Nepal. Some other
bird species are at risk and demand forest management. An
estimate indicates that the destruction of vegetation and
urbanization in the Kathmandu Valley has accelerated either the
disappearance, migration or extinction of 33 species of birds
between 1948-1977.
Table B-3 : Environmental Problems
_________________________________________________________________
Symptoms Causes
_________________________________________________________________
1. Land Degradation
(a) Soil erosion (Middle -steep slope, exposure,
(Mountain, Siwaliks) over-use
(b) Fertility decline -nutrient deficiency erosion
(c) Sedimentation (Terai) -excessive transportation and
deposition
(d) Flood (Terai) -rise in river bed
(e) Slope failure -construction activities
(road, canals)
2. Deforestation
(a) Forest depletion -extraction of timber,
fuelwood, fodder, overgrazing
(b) Forest clearance -expansion of cropland,
(legal and illegal) settlement
(c) Loss in bio-diversity -encroachment of habitats
3. Pollution (Industrial and Urban)
(a) Water contamination -inadequate supply, poor
layout and leakage
-industrial effluents
(b) Air pollution -domestic smoke, vehicular
toxic fumes, industrial
fall-out
(c) Noise pollution -old vehicles, industrial
activities
(d) Solid and hazardous waste -lack of disposal and
recycling
-industrial dumping, urban
waste
4. Pollution (Trek areas)
(a) Solid waste -overcrowding, lack of
disposal site
(b) Water pollution -lack of facilities
_________________________________________________________________
Table B-4 : Change in Forest Land ( `000 ha.)
_________________________________________________________________
Percent Change
Zone 1978/79 1985/86 Change 1973-85 Annual
_________________________________________________________________
High Himal+
High mountains 1782 1789 +7 0.5 0.0
Middle Mountain 1791 1781 -10 -0.6 0.0
Siwaliks 1445 1434 -11 -0.8 1.1
Terai 587 445 -142 -24.1 3.9
_________________________________________________________________
TOTAL 5605 5449 -156 -2.8 -0.4
_________________________________________________________________
If Nepal were to lose its remaining tropical forests, 10 species
of highly valuable timber, 6 of fibres, 6 of edible fruit trees, 4
of traditional medicinal herbs and some 50 species of little known
trees and shrubs would be permanently lost. In addition, the
habitats of some 200 species of birds, 40 species of mammals and
20 species of reptiles and amphibians would be severely affected,
if not eradicated.
Development potential offered by bio-diversity in the country,
however, has not been adequately explored. Even the important
indigenous medicinal plants are not cultivated. Economic benefits
that could accrue from this sector has not been fully obtained.
On the other hand, several species of wild plants and animal
species are threatened due to habitat destruction. Realizing the
urgency of conserving this diverse flora and fauna, some
conservation efforts are under way. However, issues such as
healthy relations between park management and local community,
reconciling the socioeconomic opportunities offered by park
tourism to the ecological threats, and the lack of financial
resources for management remain to be effectively addressed.
4. Pollution
A national survey on industrial pollution sources was carried out
in Nepal with the primary objective of providing baseline
information on pollution-prone industries so that priorities could
be set for managing industrial pollution. A comprehensive list of
175 potentially serious industrial point sources was developed
following expert desk-top assessment of over 4,000 registered and
unregistered industries. Consequently, 125 operational industries
out of the total 175 pollution-prone industries were field
surveyed. The surveyed industries were found to be distributed in
three major clusters of industrial development: the Kosi Zone in
eastern Terai, the Bagmati Zone in the central Middle Mountains
and the Narayani Zone in central Terai. These industries were
rated with regard to air, water, land and noise pollution using a
simple pollution scoring system. Any industry receiving a high or
very high score in any of the pollution types was considered to be
a point source hot spot. It was found that nearly 60 percent met
the criteria for point source hot spot.
Water Pollution - In Nepal, water pollution is responsible for
the spread of water-borne diseases such as typhoid, paratyphoid,
hepatitis, dysentery, gastro-enteritis, diarrhoea and
dracunculiasis. The quality of drinking water in major urban
centres has been found to be poor. Water sources such as wells
and springs are also used for drinking purposes. The majority of
these have been found to be contaminated, mainly during the rainy
season.
The major water-polluting industries in Nepal are leather,
textiles, paper, steel, kattha, rosin and turpentine, soap, sugar,
breweries and distilleries, carpet washing and dyeing. Most of
the industries are established closed to water bodies which
discharge even the toxic effluents without treatment. In
addition, the dumping of domestic solids as well as untreated
sewage, including dead animals, along river banks are common
practices which further lower water quality. As a result, the
quality of rivers and streams passing through many urban centres
and industrial districts is rapidly degrading. The water from
these sources is frequently used for bathing, washing, and for
irrigating farmland. Such practices pose health hazards.
The absence of planned drainage and sewerage systems have led to
the pollution of water bodies in urban centres. Sporadic research
has shown that the concentration of pollutants is very high in
most of the rivers flowing through major settlements.
Past plans had attempted to address this problems by prescribing
treatment of industrial effluents before disposal. The Department
of Standards and Meteorology had proposed industrial effluent
standards for Nepal, which have yet to be endorsed and
implemented, to reduce water pollution.
Air Pollution - The assessment of air pollution in Nepal is
hampered by the absence of data on the related parameters.
Limited studies, particularly in urban areas like the Kathmandu
Valley, show an increasing trend of air pollution. In Kathmandu,
the emission from the increasing number of vehicles, brick kilns
and cement factories result in a thick layer of smog over the
Valley throughout the year except during the monsoons. The
problem persists because of limited air circulation in the bowl-
shaped Valley.
It is estimated that 18,000, 3300, 1660 and 275 tons/year of
carbon monoxide, hydrocarbons, nitrous oxide and sulphur dioxide
are being annually released into the Valley air. Investigation
has also revealed a high level of lead content in dust and other
particulates. The lead content on roads with heavy traffic was
3000 gm/m3 while that along roads with less traffic was 1500
gm/m3.
With the addition of more vehicles in Kathmandu, the extent of air
pollution has further increased. The problems are further
exacerbated by about 250 brick kilns that every year use 5500 M.T.
of firewood, 3,000 M.T.of coal, and 3000 M.T. of lignite. Apart
from polluting the air, brick kilns are also permanently
destroying the fertile soil layer in the city's periphery. The
cement factory located south of Kathmandu releases 4.5 gm/M3
of dust in the air, adding to the already severe air pollution
problems.
Though the direct correlation of increasing air pollution with
deteriorating health has not been established due to lack of
monitoring, the frequency of reported asthma cases indicates the
influence of degraded air quality. In many cases, particularly in
rural areas, chronic bronchitis cases are evident, caused mainly
by indoor air pollution.
Only in limited cases have air pollution control equipment been
installed. An electrostatic precipitator (ESP) was installed in
the Hetauda Cement Factory, which has not been effective due to
the fluctuating quality of coal and limestone. Though
contemplated for more than two decades, the Himal Cement Factory
in Kathmandu is yet to install filters to arrest its dust
emission.
To minimise air pollution, the Industrial Promotion Board has
recently categorised industries into several classes based on the
level of pollution. For those classified under highly polluting
industries, licenses would be issued only if treatment facilities
are incorporated and the industries are located outside densely
populated areas. The general rule is that such industries should
be kept 10 km away from densely populated areas. In addition,
attempts are under way to establish an Environmental Unit in the
Ministry of Industry, and to introduce EIA processes for both
public and private sector industries.
Noise Pollution - Research on noise level in the urban centres
of Nepal indicate a high average intensity level of noise
primarily due to vehicular movement. The principal sources of
noise include industries, heavy and light vehicles, indiscriminate
use of amplifiers and vehicular horns in public places and
ceremonial activities. However, the harmful effects of noise to
general health, both psychologically and physiologically, are
little known.
Nepal has not so far adopted any mitigating measures to reduce
traffic noise. Some places such as hospital areas and educational
centres are designated as "No horn" zones, but a clear-cut policy
and legal provisions to control noise pollution is yet to be
developed. However, roadside plantations have been encouraged and
these may decrease traffic noise levels to some extent.
5. Hazardous Waste
In Nepal, it is common practice to dispose toxic and industrial
wastes without any sorting and pre-treatment. Though the volume
of wastes generated is relatively small, some are nevertheless
toxic and hazardous to public health and the environment. At
present, industries dump their solid wastes on their premises or
indiscriminately dispose them off in river beds or on public
lands. Even the wastes containing hazardous substances such as
heavy metals, cyanide and organic chemicals are released and
disposed off into streams, rivers and municipal drains. As the
industrial wastes are of a varied nature, entrepreneurs are
utilizing certain industrial wastes and converting them into
by-products.
The Industrial Policy 1987, includes a strategy "to implement
measures that avoid or minimize the effects of environmental
pollution while establishing, expanding and diversifying
industries". The Industrial Enterprises Act (1987) has also a
provision to "issue directives relating to environmental pollution
caused by the enterprise".
Wastes from hospitals may consist of different compositions
ranging from bio-degradable to non-bio-degradable. These may be
paper, glass, tin cans, injection needles, human wastes, blood or
body fluids. Some of these are bio-degradable and can be disposed
off easily. Some chemical wastes are hazardous such as corrosive
acids, inflammable, reactive substances and genotoxics. The total
waste volume generated in hospitals and clinics, in a study
conducted in 1986, was estimated to be 560 tons per annum or 1.5
tons/day. Considering the population growth rate of 4.8 percent
per annum in Kathmandu, hospital waste in 1990 was estimated to
total 679 tons/annum or 1.86 tons/day.
With the exception of Patan and the Teaching Hospital, segregation
of wastes is not practised in an organized manner. A few
hospitals use incinerators to burn waste and in some hospitals and
clinics, the SWMRMC collects and disposes off the wastes.
However, there is still the problem of handling hazardous wastes
as there are no proper disposal sites for such wastes. In other
parts of the country, hospital wastes are either burnt or
incinerated or disposed off by the municipality in unspecified
areas.
Handling dead animals in an organized manner is still a problem.
Sometimes dead human bodies are dumped in river beds. Dead
cattle, dogs, cats etc. are usually disposed off on the banks of
rivers and streams or open/abandoned land by municipality sweepers
resulting in a stench during decomposition.
In addition to these wastes, different kinds of hazardous
pesticides are used on agricultural land. Some pesticides, banned
in other countries, are commonly used in Nepal. They are aldrin,
BHC, chlordane, DDT, endrin, mercury compounds, phenyl mercury
acetate, 2-4 D, and parathion. Some highly toxic pesticides are
used as farmers are anxious to see immediate effects. To address
these problems, His Majesty's Government is conducting research on
biological pest management and has set up pesticide standards for
aldrin, carbaryl, chlordane, DDT, lindane, alfatoxin etc. Some
foodstuffs are reported to be contaminated by pesticides. The
highest level of DDT residue detected in milk during 1981 to 1983
was 1.2 ppm. Recently, pesticide legislation has been drafted to
regulate pesticide use.
6. Public Health
The health sector in Nepal has been severely affected by poor
sanitary facilities, malnutrition and lack of adequate health
facilities. The high rate of infant mortality, 108 to 144 deaths
per 1000 live births, is a clear indicator of the low level of
general health status. The high mortality rate is mainly due to
gastro-enteritis, diarrhoeal diseases and other communicable
diseases such as dysentery, cholera, typhoid, hepatitis,
tuberculosis and meningitis. Protein deficiency is a general
problem and many children suffer from malnutrition or chronic
protein intake deficiency. In addition, about 77,000 persons are
estimated to be disabled due to blindness, deafness, paralysis,
insanity, leprosy, polio and other causes. The maternity death
rate in rural areas is also high due to lack of basic minimum
medical care. Furthermore, environmental pollution in the urban
areas have severely affected public health. Occurrence of
respiratory diseases are frequent and are known to be caused by
air pollution. Drinking water is heavily polluted in most of the
urban centres and water-borne diseases are very common and are
very high during the monsoon season.
Prevention of public health hazards has become increasingly
difficult due to heavy investment requirements in areas such as
solid and liquid waste management, clean water supply, urban
planning, provision of health facilities, etc. In Nepal, the
average life expectancy is 54 years with a total fertility rate of
5.67. There are only 4730 beds in 123 hospitals, 16 health
centres and 816 health posts. The number of doctors, nurses and
health workers for the total population was estimated at 19,450,
4,650 and 1,290 respectively as of 1990. In order to address
these problems, various programmes have been formulated, mainly in
the areas of water supply and sanitation. Training of
environmental health personnel, water and sanitary engineers, and
medical doctors and public health workers need to be greatly
increased in the coming years.
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Part C
RESPONSE TO ENVIRONMENT/DEVELOPMENT ISSUES
C-I. Policies and Strategies
1. Policy Goals
Nepal's development planning exercise began in 1956 with the
launching of the First Five Year Plan (1956-61). The main
objective of this plan was to increase agricultural production,
extract more revenue from forests and to implement the Rapti
Resettlement Scheme. The Forest Nationalization Act (1957) was
enacted during this plan period. It attempted to bring all forest
land under government jurisdiction. Except for the enactment of
this statute, no substantive environmental measures were initiated
during this plan period.
The Second Plan (1962-65) also laid stress on food production.
Programmes related to the environment included the survey of
natural resources and activities in industry, electricity,
irrigation, and transport. The forestry programme included
preparation of management plans for selected districts,
afforestation, forest demarcation, construction of fire-line and
forest roads, and the promotion of forest-based industries.
The Third Plan (1965-70) incorporated some environment-related
policies and programmes. These were resettlement in the Terai to
reduce population pressure in the Hills, a cadastral survey for
land reform, forest survey, protection of temples and other
historical places, preparation of a physical plan for Kathmandu
Valley, water quality analysis, sedimentation and water flow
recording in the Terai, and the initiation of master plans for
drinking water and sewerage.
The basic thrust of the Fourth Plan (1970-75) was to mobilize
internal resources and concentrate available resources for
regional development. The sectoral policies which reflected some
environmental concerns were:
- delineation of major agricultural areas;
- feasibility studies to promote agro-based and forest-based
industries and the reclamation of forest land for increased
agricultural production through resettlement;
- updating land ownership and tenancy records to strengthen
land administration;
- increase revenue from the forestry sector and the scientific
management of forest resources;
- soil and land use surveys in some districts;
- soil conservation of the Kathmandu Valley watershed;
- preparation of tourism master plan; and
- establishment of a laboratory to examine chemical composition
of water.
The Fifth Plan (1975-80) emphasized conservation and development
of the watershed in the Hills, and introduced a land use and water
resources development policy (Annex A). It was during this period
that the National Forest Policy (1976) was enacted. The policy
components were to manage forests; to control floods, landslides,
soil erosion and to maintain the ecological balance; to achieve
sustained economic and social benefits from forest resources by
making the country self-sufficient in timber and fuel; and to
conserve flora and fauna. The plan also advocated the
establishment of industries outside densely populated areas to
control environmental pollution, and the development of new
tourist places with due consideration for the environment. The
plan aimed to encourage womens' participation in forestry,
agriculture, health and water resources development activities.
The objective of the Sixth Plan (1980-85) was to bring about a
balance in the use of land and the environment. The programmes
included population control, emphasis on soil conservation and
watershed management, surveys of endangered flora and fauna,
reduction of overdependence on agriculture, and environmental
impact assessment (EIA) of development activities. Rules and
regulations to control the deteriorating environment of urban
areas were also reviewed.
The Seventh Plan (1985-90) included the environment as a national
development sector with the following objectives:
- to maintain a positive relationship between development
and the environment in order to control degradation;
- to reduce water, air and noise pollution; and
- to develop a sound environmental management system in
order to enhance the welfare of the people.
The specific policy goals were:
- to ensure proper coordination amongst various
governmental organizations in the implementation of
environment-related programmes;
- to encourage people's participation and create public
awareness on resource conservation and management;
- to promote and establish national parks and wildlife
reserves to preserve rare species of animals and plants,
and to the maintain an ecological balance;
- to encourage the population engaged in agriculture to
pursue alternative economic activities, such as, cottage
and small-scale industries, and to convert marginal
lands into forest and pastoral lands;
- to implement tourism development programmes based on
environmental considerations;
- to formulate a system that takes account of land
capabilities and uses for industrialization,
urbanization and resettlement programmes;
- to conserve watersheds and flood control through
afforestation and other appropriate measures;
- to carry on activities for research, data collection and
analysis for maintaining a healthy environment.
2. Strategies
The Seventh Plan documented the following strategies to protect
the environment:
1. Strengthening the National Commission for Conservation
of Natural Resources (NCCNR).
2. Preparation of guidelines for incorporating
environmental considerations right from the formulation
stage of development projects. Conduct EIA to evaluate
the effect of programmes in industries, tourism, water
resources, transport, urbanization, agriculture and
forestry.
3. Scientific research and analysis in areas of resource
conservation and development, in addition to specifying
a minimum standard for the environment.
4. Exchange of information and knowledge on achievements in
resource conservation and management at the
international level.
5. Effective implementation of rules and regulations on
resource conservation and utilization in addition to
formulating an Environment Conservation Act.
6. Preparation of syllabi and textbooks for school/
university level on environmental conservation aspects.
7. Human resource development in resource conservation,
utilization and management by training arrangements both
within and outside the country .
8. Preparation of a report on the status of the
environment.
9. Encouragement of active involvement of individuals,
social organizations, and non-governmental agencies and
local Village Development Committees in environmental
programmes.
10. Land classification on the basis of a national land use
policy.
11. Designation of one of the fiscal years during the
Seventh Plan as "Environment Year".
12. Formulation of a National Conservation Policy and
implementation of programmes.
It was during the Seventh Plan that a breakthrough was made in two
areas. One was the finalization of the National Conservation
Strategy and the other was the approval of the Master Plan for the
Forestry Sector. A National Conservation Strategy (NCS) had been
prepared and is being implemented. The main goal of the NCS is
rational use, protection, preservation, and restoration of
renewable resources to meet the basic needs of the people by the
year 2000 A.D. through conservation and development, and effective
use of existing institutions and structures.
The Master Plan for the Forestry Sector provides guidelines for
the legal, institutional and operational development of the
forestry sector as well as a framework for the systematic
implementation of the programmes.
The Eighth Five Year Plan (1992-97) is under preparation. The
sectoral strategies and working policies of the plan will include
the environment as a separate sector. The critical role played by
poverty, increasing population, low level of economic growth, ill-
planned urbanization and industrialization on the environment will
be duly addressed with the integration of human development and
environment conservation. The plan will set out policies and
intended actions on the environment, including a comprehensive
system of environmental laws that will ensure all future decisions
on investment to take full account of their effects on the
environment. Some guiding policies and strategies of the plan
will include :
- Conservation of the ecosystem and of genetic resources
as an integral part of the natural resources management.
- Enhancing popular participation in every aspect of
natural resource management so that local people obtain
benefits from conservation.
- Increasing supply of safe and adequate drinking water
and minimum sanitation throughout the country within the
next ten years by expansion of physical infrastructure,
and development and implementation of necessary laws and
norms of water quality standards.
- Controlling population growth through expansion of
family planning delivery services by increasing the
number of health posts, and launching public awareness
programmes, adult education and NGO participation.
- Formulating environmental legislation and appropriate
EIA guidelines to guide industrial and urban development
planning.
- Developing a long-term perspective Energy Plan which
will minimize negative impact on the environment, with
particular emphasis on the hydro-power sector.
- Developing a national land use policy and supportive
legislation to implement the national land use plan.
- Allocating a minimum of 70 percent of the development
expenditure specially for the rural areas to implement
integrated rural development projects planned at
regional and local levels.
C-II LEGISLATION
1. Introduction
In Nepal, as elsewhere, the Constitution forms the basic and
fundamental law of the land, and all other laws and rules derive
strength and authority from it. Hence all legislative policies
and executive actions have to conform to the constitutional
provisions. With the promulgation of the Constitution in 1990,
the State has made a strong commitment towards the goal of
environmental protection. Under the directive principles and
policies, it states that the State now on "Shall adopt a policy to
utilize the natural resources of the country in the national
interest and in a fruitful manner" [Article 26 (3)]. Again, the
State "shall give priority attention to conserving the environment
of the country and also prevent any adverse impacts on the
environment, which may be caused as a result of the implementation
of physical development activities, through the mechanism of
creating public awareness towards the quality of environment and
shall make special arrangements for the conservation of rare
animal species, forests and the vegetation of the country"
[Article 26 (4)].
By virtue of the power entrusted to it, the House of
Representatives (Lower House) shall constitute a special committee
on environmental protection and assign necessary tasks to it
pertaining to environmental issues (Article 64). More important
is the right conferred by Article 88 (2) of the new Constitution
whereunder any person can directly move an appeal to the Supreme
Court on any issue of public interest or importance including
environmental issues.
The Eighth Plan (1992-97) will set out the government's policies
and intended plan of action to establish a comprehensive system of
environmental laws and provide for its implementation and
enforcement.
2. Existing Laws
Some of the existing laws related to environment are listed in
Annex B.
2.1 Land Use
The Land Act (1964) `introduced under the Land Reform Programme,
incorporated provisions relating to land consolidation and
development along with control of land degradation. As per the
Act, land owners and tenants may be directed by the government to
adopt improved methods of crop intensification. The Land (Survey)
Act (1962) classifies agricultural land into different categories
according to its present cropping practices. The Land
Administration Act (1967) states that only those lands registered
with the government are considered cultivable. The Kharka
(Pasture) Land Nationalization Act (1973) empowers HMG/N to
nationalize the alpine pasture land under traditional ownership,
with provisions for delegating the use and management of such land
to local village boards. The Tourism Act (1978) is related to the
preservation of the natural environment of wilderness areas by
prescribing certain conservation rules for mountaineering
expeditions. The latest in the series of related Acts is the Soil
and Watershed Conservation Act (1982). It confers on the
government a wide range of powers to regulate land use practices
for the preservation of the environment and natural resources.
2.2 Forest
The Forest Act (1961) provided for the prohibition of
deforestation, cultivation, harvesting and grazing on, and removal
of, products from government forest land. Individuals were
permitted to privately own forest land prior to the promulgation
of the Forest Nationalization Act (1957). The Forest Protection
Act (1967) stipulates provisions with regard to the protection of
demarcated forest and afforested areas. The Plant Protection Act
(1972) aims at the control and prevention of plant diseases by
regulating import and export of plants and allied products. The
National Parks and Wildlife Conservation Act (1973) provides for
the protection and management of designated national parks and
wildlife reserves, as well as protection of wildlife outside the
protected areas. The Act also includes a list of protected
animals and birds. The Forest Act (1961) amended as Forest (First
Amendment) Act, (1977) recognized four categories of forests other
than those directly under government control. These are Community
Forests, Private Forests, Religious Forests and Leasehold Forests,
the protection and management of which are given to local
committees, individuals, religious institutions and entrepreneurs.
The King Mahendra Trust for Nature Conservation Act (1982)
constituted an independent body to raise funds and manage the
conservation of nature and natural resources.
2.3 Water
The Aquatic Animals Protection Act (1960) forbids the use of
explosives or poisonous materials for catching and killing aquatic
life in rivers and lakes. The Canal, Electricity and Water Act
(1967) regulates the use of water except for purposes of daily
human use, and for minor irrigation and cottage industries. Even
for license holders for electricity generation, there are
restrictions on activities that may lead to soil erosion, land
slides and distortions to the landscape.
2.4 Mining
The Nepal Mines Act (1966) allows exploration, exploitation,
extraction, processing, transport and sale of minerals only under
license issued by the government. The government is empowered to
make any special arrangement for mineral development. The
Petroleum Act (1983) gives the government monopolistic power in
investigation, production, refining, storage, transportation and
sale of petroleum products.
2.5 Cultural Heritage
Since the early 1950s, legal and institutional mechanisms have
been introduced for heritage conservation. Cultural heritage
conservation is mainly governed by the Ancient Monument Protection
Act (1956). More recently, as a party to the World Heritage
Convention, Nepal's conservation programme has come to assume
further significance in terms of her increased obligations.
2.6 Occupational Health/Safety Related Legislation
No comprehensive legislative norms so far have been introduced
regarding occupational health and safety conditions for
agricultural workers. For many agricultural workers, the use of
toxic pesticides and other chemicals pose serious risks. In the
organized industrial sector, factory workers are frequently
subjected to high levels of air and noise pollution. The existing
Nepal Factory and Factory Workers Act (1958) and Factory Rules
fall far short of necessary provisions, and also very often their
breach goes unpunished.
2.7 Noise Pollution
Noise pollution is an issue mainly confined to the industrial and
urban areas of Nepal. Vehicular traffic noise, indiscriminate use
of amplifiers and vehicular horns in public places,and
textile/metal/wood/seasoning/ cutting industries are the main
sources of noise pollution. There are no specific legal or
administrative mechanisms to deal with noise pollution.
Similarly, no laws exist to regulate noise levels in factories.
The Civil Aviation Act (1958) contains some provisions for the
control of sound from aircraft and the Explosives Act (1961) also
provides for the control of noise from the use of explosives.
Most of the existing laws lack concrete provisions on the
functions, duties and powers of public authorities designated to
implement the statutes. These are yet to be developed.
3. Treaties and Conventions
As many environmental problems transcend national frontiers,
international cooperation in terms of resources and technology
become vital and necessary. Nepal is a part of the greater
Himalayan range encompassing China, India, Pakistan and Bhutan,
and any change or challenge to the system will disturb the whole
region. Thus, all environmental problems that affect these
countries could best be solved and remedied through their combined
efforts. Since the 1970s, the international community has begun
to appreciate the critical inter-relationship between economic
development and the environment. The importance of establishing
appropriate legal and administrative frameworks for sustainable
development has been increasingly emphasized by the international
community.
Out of the 14 major International Conventions/Agreements of global
significance and importance, Nepal is signatory to the Biological
and Toxic Weapons (1972), Ocean Dumping (1972), and Law of the Sea
(1982). She has also ratified or taken equivalent action on the
Nuclear Test Ban Treaty (1963), the Wetlands Treaty (1971), the
World Heritage Treaty (1972), and the Endangered Species (CITES,
1973). The most recent treaty is the Convention on the Control of
Trans-boundary Movements of Hazardous Wastes and Their Disposal,
adopted in Basel, Switzerland, in March 1989, which came into
force as of January 25, 1990 (it has yet to be ratified by HMG).
Nepal has subscribed to the following
Treaties and Conventions
Nature and Living Resources:
1. International Convention for the Protection of Birds
1950.
2. International Plant Protection Convention, 1951.
3. Convention on Wetlands of International Importance
especially on Water Fowl Habitat, 1971.
4. Convention concerning the Protection of the World
Cultural and Natural Heritage, 1972.
5. Convention on International Trade in Endangered Species
of Wild Fauna and Flora (CITES), 1973.
6. Convention on the Conservation of Migratory Species of
Wild Animals, 1979.
7. International Tropical Timber Agreement, 1983.
Hazardous Substances
8. Treaty Banning Nuclear Weapon Tests in the Atmosphere,
in Outer Space and Under Water, 1963.
9. Vienna Convention on Civil Liability for Nuclear Damage,
1963.
10. Convention on the Prohibition of the Development,
Production and Stockpiling of Bacteriological
(Biological) and Toxic Weapons, and on their
Destruction, 1972.
11. Treaty on the Prohibition of Emplacement of Nuclear
Weapons and other Weapons of Mass Destruction on the Sea
Bed and the Ocean Floor and in the Subsoil thereof,
1972.
12. Treaty on Principles Governing the Activities of States
in the Exploration and Use of Outer Space including the
Moon and other Celestial Bodies, 1967.
13. Convention on Long-range Transboundary Air Pollution,
1979
14. Convention on International Civil Aviation on Aircraft
Engine Emissions, 1981.
Marine Environment
15. United Nations Convention on the Law of the Sea, 1982.
C-III INSTITUTIONS
1. Government Organizations
Several government agencies are directly or indirectly involved
with the environment and natural resources which include
commissions, ministries and departments/agencies (Annex C). The
establishment and change in the affiliation of these institutions
suggest increasing importance accorded to the environment and
natural resources. In the 1960s, departments of agriculture,
forest, medicinal plants, drinking water, electricity and mines
were created as independent agencies. In the last two decades,
the Department of Soil Conservation and Watershed Management, the
Department of National Parks and Wildlife Conservation, the Remote
Sensing Centre, the Drinking Water and Sewerage Corporation, and
the Mineral Exploration Project (Appendix D) have been created.
Attempts have been made from time to time to set up institutional
mechanisms to coordinate environmental administration. The
Council of Ministers at the apex holds the ultimate responsibility
for coordinating policy issues and administrative matters. The
National Planning Commission (NPC) is expected to coordinate
environmental considerations while formulating periodic
development plans. A number of other organizations including the
NPC, the Water and Energy Commission, the National Commission for
Population (now a division of the NPC), and the Royal Nepal
Academy for Science and Technology generally perform advisory
roles. The National Commission for the Conservation of Natural
Resources (NCCNR) was set up in 1981 to advise HMG on activities
of DSCWM and on natural resource management.
In January 1991, a Council for the Conservation of Natural and
Cultural Resources (CCNCR), under the National Planning
Commission, was established to implement the National Conservation
Strategy (NCS). The Council has representation from finance,
forest and environment, industry, water resources, transport,
housing and physical planning, education and culture, local
development and tourism ministries, the business community and
non-governmental organizations.
The Decentralization Act (1982) attempted to establish multi-
disciplinary committees to prepare and implement a development
plan for each district to guide local developmental works. Under
this Act, there was provision for committees for Industry, Forests
and Soil Conservation, Agriculture and Irrigation, Public Works
and Maintenance, and Health and Population, composed of elected
representatives and heads of sectoral department units. But with
the recent political changes in the country, the Act is expected
to take new direction and may require time before it starts
functioning. In view of the existence of numerous agencies and
organizations, there had been some pressure for creating a full-
fledged ministry to look after environmental affairs. This has
resulted in the establishment of the Ministry of Forests and
Environment (formally Ministry of Forests and Soil Conservation).
2. Non-Governmental Organizations
In recent years, a number of non-governmental organizations
(NGOs), including local, national, regional and international
bodies, have been growing. They have been quite effective in
articulating the cause of environmental issues. The government
has liberalized the rules for local NGOs to negotiate with
international NGOs. It is felt that there is a need for an apex
body for NGOs in order to coordinate and avoid duplication in
programmes and wastage of scarce resources. To take up this
function, the Social Services National Coordination Council
(SSNCC) has been reorganized in order to make it more effective in
promoting, coordinating and monitoring NGO activities. Some of
the NGOs directly involved in environment and conservation
activities are as follows:
1. Nepal Nature Conservation Society
2. Nepal Environment Conservation Group
3. Nepal Heritage Society
4. Jara-Juri Trust
5. Forum of Environmental Lawyers
6. Environmental Camps for Conservation Awareness
7. Women in Environment Protection
8. Nepal Forum of Environmental Journalists
9. King Mahendra Trust for Nature Conservation
10. Save Bagmati Campaign
11. Coalition Nepal
12. Mrigendra Medical Trust
13. Nepal Foresters Association
Besides the above, there are many other NGOs (both national and
international) actively working in the field of environment in
Nepal.
C-IV. PROGRAMMES AND PROJECTS
1. Sectoral Activities
Successive periodic plans have attempted to identify and include a
number of programmes to tackle various environmental problems.
The Seventh Five Year Plan (1985-90) included some specific
projects aimed at environmental protection and resource
conservation. Some of the ongoing programmes and projects are
enumerated below by sectors.
1.1 Agriculture
Cultivation of tobacco and cotton as cash crops has been promoted
in the central and mid-western Terai districts. Expansion of tea
plantations on deforested slopes of the Eastern Development Region
was launched in a very limited area. Another programme was the
implementation of sample silvi-cultural activities in some pockets
in the Hills. Cardamon plantations have also reclaimed degraded
lands and gullies in the Eastern Hills. Recently, coffee
plantations have also been encouraged in the Western Hills as a
cash crop with financial support from the Agriculture Development
Bank of Nepal.
1.2 Forest
During the Seventh Plan, out of the targeted 175,000 ha
plantation, 65,000 ha were planted by government agencies and
110,000 ha by peoples' participation. Out of the 110,000 ha
planted through peoples' participation (including community
forestry), 65,000 ha were converted into community forests, 20,000
ha into private forests, 15,000 ha as leasehold forests, and
10,000 ha around residential areas, school compounds and office
buildings.
Other forestry projects started during the Seventh Plan included
the Hill Forest Development Project, the Fuel Wood Plantation
(Sagarnath and Nepalgunj) Project, the Community Forestry (Hill
and Terai) Project, and the Master Plan for the Forestry Sector.
The forestry sector programmes that have direct implication
towards improving the environment are:
- Community and Private Forestry to develop and manage
forest resources through the active participation of
individuals and communities to meet their basic needs.
- National and Leasehold Forestry to develop and manage
national forests through government agencies or private
sector lessees, complementing community and private
forestry.
- Soil Conservation and Watershed Management to restore
environmentally degraded land and to further protect
land against degradation through the mobilization of
national and local resources.
- Conservation of Ecosystems and Genetic Resources through
the establishment of national parks, and reserves and
conservation areas in different physiographic regions.
- Medicinal and aromatic plant development through the
cultivation of high value herbs and grasses.
- Forest and Plant Research in order to maintain the
quality of species and maximize the yield at an optimum
level.
1.3 Hydroelectricity
Attempts have been made to incorporate environmental aspects in
large hydroelectricity projects. EIA studies are being conducted
for some of the proposed large hydroelectricity projects.
Environmental considerations have been incorporated in the Arun
III Hydro Project and the access road. An environmental unit has
been established within the Nepal Electricity Authority.
1.4 Industry
During the Seventh Plan, the Ministry of Industry had made
attempts to enforce pollution abatement measures in major
industries. Pulp and paper, cement and sugar industries were not
allowed to be established within a 10 km radius of the major urban
centres. The Ministry of Industry is preparing Environmental and
Risk Assessment Guidelines.
HMG/N has enacted the Mineral Law (1987) that includes
environmental considerations and guidelines for the economic
exploitation and conservation of the country's mineral resources.
Technical views were collected on the problems created by some
major stone quarries and boulder exploitation in the vicinity of
the major urban centres. The mining activities of two major
cement factories have been directed to follow the environmental
protection measures.
1.5 Road Transport
Certain road projects have been constructed with due consideration
for the environment in which minimum earth works and
bio-engineering devices were adopted. Suitable grass and tree
species were planted on exposed slopes and soils. Surface
drainage was regulated through suitable structures. Experiments
on roadside slope stabilisation and bio-engineering applications
on some of the major highways were undertaken.
Attempts have been made in different parts of the country on
environmentally safe road construction. Environmentally sound and
low-cost road construction techniques are being tested. Tree
plantations on either side of the road, as slope protection
activities, were carried out. Several studies were conducted to
assess the environmental impact of constructing roads in various
parts of the country during the Seventh Plan.
1.6 Waste Disposal
A Solid Waste Management Board was set up in 1980 with a view to
managing and utilizing the waste collected in urban areas,
especially in the Kathmandu Valley. The project has created
public awareness on cleanliness and waste disposal. Physical
facilities have been created for the collection, transport and
disposal of waste, and a pilot compost plant established. The
collection of solid waste went up to 62,583 m3 (F.Y. 1987/88).
Policies were formed on the basis of studies and experiments to
make the system more practicable and sustainable, and to run it on
a `Polluter Pays Principle'. Experience in Kathmandu has shown
the viability of extending this method to other areas as well.
1.7 Pollution Control
Some industrial establishments are engaged in pollution control at
different levels. These include PVC, paints, and flour mills,
which have installed facilities such as exhaust fans, bag filters,
ventilators and precipitators. In some of the industries, both
waste water and scrap materials are recycled. However, industries
such as cement, textiles, soap and chemicals, tanning, paper and
pulp and canning do not yet use any pollution control measures.
2. Biotechnology
Research in biotechnology has been initiated in agriculture,
medicine, chemistry, environment, forestry, and livestock sectors
in Nepal. It has demonstrated its potential, at least under
laboratory conditions, to increase quality productivity in
different sectors like agriculture and forestry. However, the
country lacks advanced techniques in the field of biotechnology
like genetic engineering. Under NARSC of the Ministry of
Agriculture, research on biotechnology has been concentrated on
bio-fertilizer, mushroom research, and potato seed improvement.
The Agricultural Botany Division has been recently upgraded to the
Division of Plant Breeding and Biotechnology. The Department of
Forestry and Plant Research is actively involved in tissue culture
biotechnology and sand rooting on sapling multiplication.
In agricultural biotechnology, attempts to improve quality has
been made through various steps of in-vitro culture and their
field cultivation. Biological nitrogen fixation (BNF) and
different bacteria - Rhizobium, Azoto-bacter etc. - green
manuring, preparation of bio-fertilizer through
cellulose-decomposing bacteria, are being tried for maintenance
and improvement of soil fertility. Fingerling production through
use of pituitary gland (PG) has brought significant impact in fish
farming. Biogas technology is being developed as an alternate
source of energy to reduce deforestation.
3. Information and Training
The role of public information to bring about awareness on
environmental problems has been well recognized. Various
governmental, non- governmental and voluntary organizations are
involved in developing environmental education materials. These
materials are used both in formal and non-formal education.
Regular radio and TV programmes on Agriculture, Forestry, Health
and Tourism, focusing on environmental matters, are on the air,
with target groups ranging from children, youth to adults
(including women). Various newspapers, magazines and journals
publish feature articles, news and comments on environmental
issues. To educate the rural population, specific communication
materials i.e. wall newspapers are being produced and distributed
to almost all districts of Nepal.
Emphasis has been given to including the conservation of natural
resources and the protection of the environment in formal
education, at school, college and university level. Some
institutions have developed curricula incorporating environmental
aspects on a sectoral basis. The Institute of Forestry has
developed its capacity and facilities to produce forestry
graduates within Nepal. Training, workshops, and seminars
involving the rural population, journalists, professionals etc.
are regularly conducted in the field of environmental conservation
and management.
4. Environmental Planning and
Environmental Impact Assessment
The present government has given significant priority to
environmental planning and environmental impact assessment (EIA).
HMG/N has prepared guidelines for EIA and has also prescribed
mitigation measures to various development activities in order to
minimize adverse impact on natural resources and the environment.
HMG/N is now taking environmental considerations seriously and
thus reviewing the existing legislation, administrative
procedures/institutional arrangements. During the Sixth and
Seventh Five-Year Plans, a number of EIAs were carried out in
different fields in response to the growing environmental
problems. EIA studies have been carried out in the fields of
multipurpose hydro projects, irrigation, pollution-prone
industries, road and transport, forestry and watershed, tourism
(trekking tourism) and resettlement projects.
C-V INTERNATIONAL COOPERATION
1. Major Economic Institutions
The government raised public expenditure substantially during the
Sixth Plan (1980/81-1984/85) in order to accelerate economic
development. Consequently, the budget deficit rose from 6.1
percent of GDP in 1980/81 to 12.3 percent in 1982/83. This
measure, though it led to higher GDP growth, was found to be
unsustainable as demand pressures led to a rise in domestic
prices, doubled the current account deficit and depleted the
international reserves substantially. To counteract such
distortions in the economy, the government implemented a
stabilization programme towards the beginning of the Seventh Plan
to bring about macro-economic stability. This programme was
supported by a standby fund arrangement in December 1985.
Macroeconomic stability in itself was not sufficient to accelerate
economic growth without addressing long-term constraints. Thus,
the government also implemented a Structural Adjustment Programme
(SAP), which combined the stabilization measures with
institutional and sectoral reforms supported under the Structural
Adjustment Loan (SAL) and the Structural Adjustment Facility
(SAF).
The basic thrust of the Structural Adjustment Programme lay in
strengthening macroeconomic and sectoral development policies, in
and improving the efficiency of public sector investments and
institutions. Stabilization measures comprised restrained public
expenditure, especially in the regular budget, greater resource
mobilization efforts, and tighter monetary controls. Devaluation
of the rupee by 15 percent, in rupee terms, was initiated to
strengthen the country's external position while several
institutional and procedural reforms were undertaken to liberalize
imports. Attempts were made to address constraints to growth in
agriculture and industry as well as to improve development
administration. Sectoral measures in agriculture focused on
improving input delivery and services, and the effectiveness and
efficiency of related public institutions, liberalizing prices and
distribution with increased private sector involvement, and
improving irrigation services. Community management and the
retention of earnings therefrom has been built into the forestry
sector laws to improve forest management and check deforestation.
The industrial sector witnessed a partial liberalization of
licensing and trade regime, and rectification of biases against
exports. Tariff reforms were initiated along with a system of
duty drawbacks and bonded warehouses for exports. An OGL/passbook
system was introduced for imports while import licenses for
commercial items were awarded through auctioning. In development
administration, programme budgeting and project monitoring were
initiated for the selection of a portfolio of core projects while
efforts were directed towards improvements in project
implementation and budget release procedures. Enterprises to be
privatized were identified in the public sector for subsequent
divestiture.
Under the SAP, macroeconomic performance was quite encouraging
until 1987/88 and it was felt that the macroeconomic balances
would become sustainable. All achievements were, however, diluted
after the trade and transit impasse with India in 1988/89. The
economy reverted to the pre-SAP position, macroeconomic
performance worsened and industrial production almost came to a
halt. Severe damage, both in terms of resource drain and
environmental degeneration, was experienced by the country during
this 15-month period. Resumption of better relations with India
has improved trade, with a 50 percent rise in exports and a 23
percent increase in imports during the first eight months of
1990/91 compared to the same period in 1989/90. Industrial
production is slowly improving as petroleum products and raw
materials become accessible.
2. Multinational Corporations
In spite of the many concessional measures introduced by the
government to attract foreign investment in the country, it has
met with only limited success. The country today has 86
industrial establishments under foreign collaboration. Only 52 of
these have started production while the rest are under different
stages of establishment. The total authorized capital of joint
venture enterprises amounts to about US $ 135 million at current
exchange rates. India is the largest foreign investor in Nepal,
accounting for 20 (36%) of the 55 joint ventures and investments
in subsidiaries in 1987. The rest of the foreign collaborators
were fairly evenly distributed among countries of Asia, Europe and
North America. The mineral sector (Indian collaboration)
accounted for 16 percent of total foreign investment followed by a
Japanese hotel (6%) in the tourism sector. The average size of
foreign investment had, however, been quite low at US $ 180,000.
The proximity to the Indian market and lack of information about
other sources of technology has made India the dominant
collaborating partner and technology supplier.
More than half of the foreign investment in the manufacturing
sector comprises consumer products catering to the tourism sector.
The sectoral distribution of foreign investment and technology
transfer agreements in 1987 consisted of 53 percent in
manufacturing, 25 percent in tourism, 18 percent in services and
the remaining 4 percent in minerals. Textiles and garments, and
food and beverages accounted for 28 percent and 9 percent
respectively of the total number of establishments in the
manufacturing sector. Towards the end of 1987, 16 applications
for foreign investment and/or technology transfer, with almost the
same sectoral distribution pattern as the existing ventures, were
under consideration, many of which have now started production.
Of the nine public sector enterprises established with grants, six
were financed by China and the rest by the USSR.
Nepal has a tremendous potential for hydropower generation and
sale of its excess power to neighbouring countries, including
India. Attention from multinational agencies has been drawn to
this field. A recent example of involvement of multinational
agencies including the World Bank is the Arun III Hydroelectric
Project.
The manufacturing sector accounts for the majority of technical
assistance, licensing and trademark agreements, with food and
beverages, and electrical equipment being the main receivers.
Licensing agreements, though the most important means of acquiring
know-how and access to foreign technology in developing countries,
have been only a few. In certain cases, licensing agreements have
been entered into more for the acquisition of trademarks than for
technological know-how. Hardly any technology transfer has taken
place under such arrangements.
The state-owned enterprises, established under grants assistance,
have an average of U.S. $ 3 million in foreign capital investment,
which is more than 15 times the average foreign investment in the
private sector. These industries play an important role in terms
of technology transfer, knowledge and employment generation.
There is, however, a lack of integration and coordination of the
capital and technology emanating from these projects with the
other forms of foreign participation in the industrial sector
mainly because the normal process for evaluating and screening
projects with foreign technology are not applicable to these
projects. This means that such projects have not been integrated
in a conscious and consistent procurement policy.
There is very little participation of major multinational and
international corporations in Nepal's industrial sector. A number
of establishments producing beer and soft drinks are operating in
Nepal. Involvement of large multinational corporations are welcome
in areas where local participation is constrained due to a lack of
training and technological know-how. Apart from stimulating the
growth of local industries producing raw materials and
intermediate goods, they are an important source of employment
generation. A well-planned package for attracting multinational
corporations into the country could also be instrumental in
alleviating poverty. A proper programming of multinational
participation in the industrial sector could activate a chain of
positive events promoting economic growth and environmental
protection. Some additional incentives could be offered to the
multinational corporations for their assistance in manpower
development.
In spite of the many incentives and concessions granted to foreign
investors in terms of income tax, customs and excise duties,
convertible foreign exchange and capital repatriation facilities,
large multinational and international corporations have not been
attracted to invest in Nepal. Exploitation of the large Indian
market could be used to Nepal's advantage. The recent Trade
Treaty with India reduced the domestic value added component to 55
percent. Nepal expects to attract multinational investments in
view of the large and vibrant Indian market. A substantial part
of the resources generated by multinational corporations would
remain within the country and high quality products would be
manufactured for effective competition in the Indian market. This
would lead to a substantial increase in revenue and, most
important, Nepal would have a strong industrial base for sustained
development.
This strategy could be adopted as a viable development alternative
under the changed political context in Nepal. The international
community can play a very constructive role by collaborating to
adopt a sustainable development strategy of this type and
providing assistance in the identification of constraints and in
the successful formulation and implementation of such a strategy.
The international community can also help Nepal formulate such a
code of conduct to strengthen its bargaining position so that
technical agreements are consistent with the country's overall
development objectives and are free from restrictive business
practices.
3. United Nations and Specialized Agencies
The UN agencies have been providing regular assistance to Nepal
since the early 1950s. Most of the aid is technical in nature
with financial and economic aid growing at an increasing pace over
the years. During the period 1953 to 1961, Nepal received US $
3.1 million as UN aid. The amount had increased to US $ 26.3
million by 1985, out of which US $ 12.1 million was channelled
through the UNDP, which disburses the largest portion of UN aid to
Nepal. From the early 1980s, Nepal has become one of the largest
aid recipients of UNDP with commitments of US $ 98 million made
during the 1982-86 period. The role of UNDP has become
significant since its country programming exercise was adopted to
coordinate aid from the UN agencies and multilateral
organizations.
Most of the aid provided by the UN agencies is in conformity with
their functional responsibilities. Most of this aid has been
channelled into health, education, agriculture, forestry,
telecommunications and manpower development. The Food and
Agriculture Organization (FAO) has been involved in numerous
agricultural and forestry-related projects. The UNFPA and WHO
provide aid for population and health activities while UNESCO is
involved in education. Similarly, UNDP has been involved in
transport and communication, natural resources survey and physical
planning, and regional and community development. Other
specialized agencies which are actively assisting Nepal are
UNICEF, WFP, ILO, ICAO, ESCAP, ITU and more recently UNEP and
UNHCR.
Aid from UNDP has been growing at a rapid pace since 1972 when the
first three-year country programme was formulated. During the
first programme (1972-75), UNDP assistance of US $ 14.1 million
was provided mainly for the development of hydroelectricity and
road feasibility studies. Since 1975, regular five-year country
programmes have been prepared by UNDP for providing assistance to
Nepal. UNDP has assisted in the establishment of the National
Institute of Standards and the National Computer Centre. It has
also provided technical assistance in such areas as
agrometeorology, hill irrigation, integrated rural development,
agriculture and livestock development and Nepal Food Corporation.
During the subsequent country programmes, UNDP has continued its
support in the development of agriculture, forestry, industry,
commerce, social services and human resource.
Agriculture and natural resource development has received the
largest share of UNDP aid (23% of the total) during the 1972-85
period (Table C-1). The transport and communications sector also
received high priority (almost 19% of total aid). UNDP has also
played an important role in assisting human resource development
including strengthening development administration. Unlike other
multilateral agencies, UNDP has prioritized the social sector,
including science and technology, disbursing more than 13 percent
of its total aid package to this area. UNDP has responded quite
effectively to the needs of the government by providing assistance
for strengthening general development policies and in planning and
supporting government programmes.
Recent UNDP initiatives have been to support programmes for direct
enhancement of agricultural productivity to improve Nepal's food
balance. Since the 1980s, UNDP's role as a coordinating agency
for donor-supported programmes has become quite important. Major
sectors for support and development identified are agriculture,
forestry, health and drinking water, water resources, industry,
commerce and tourism, transport and communications, human
resources, regional and rural development, and development
planning and administration. Priority has been to accorded to
water resources, agriculture and forestry, including environmental
protection and soil conservation, and human resource development.
About 113 projects were identified for implementation with UNDP
providing about US $ 92 million in aid within the period 1986-91.
There was a shortfall in UNDP aid by about US $ 50 million which
necessitated across the board cuts on projects in the identified
sectors. UNDP's role in Nepal's development has been quite
significant and meaningful.
4. Financial Assistance
Nepal's dependence on foreign aid has been growing very rapidly
over the years (Fig.6, Chapter B-II). In terms of aid
disbursement, the transport, communication and power sectors
continue to be the major recipients, accounting for 55.1 percent
of total aid disbursements between 1978/79 and 1988/89 whilst the
agriculture, irrigation and forestry sectors occupied second
place, with 25.9 percent of total disbursement and the social
services sector came third with 15 percent.
In 1988/89, foreign aid commitments of US$ 3,002 million were made
by 34 donors for 587 projects. The agriculture, forest and
fishery sectors received the highest priority, with 30.9 percent
of total financial commitments for 141 projects. Area
development, natural resources, health and human resource
development together received 16.1 percent of the total financial
commitments. The shift in donors' priority towards agriculture
and social sectors indicate a growing concern over the
deterioration of the environment and in the quality of life.
Transport, communications and power sectors received only 28.9
percent of the total financial commitments for 1988/89.
Since 1982/83, multilateral aid has superseded bilateral aid, and
this trend has continued at an increasing pace. In 1988/89, 70
percent of bilateral aid was in the form of grants, while 93
percent of the total multilateral aid disbursement constituted
loans. As expenditure has been rising very rapidly, the
government is also increasingly resorting to loan financing to
meet its development and consumption expenditures.
Nepal's sectoral priority has generally matched that of the donors
because Nepal has tried to align its plans and policies according
to mainstream developments. A Nepal Aid Group was formed in 1976
to coordinate the growing aid activities in the country. The
group comprises of Austria, Canada, France, Federal Republic of
Germany, Japan, Switzerland, the United Kingdom, the United
States, ADB, IDA, IMF and UNDP. About 90 percent of foreign aid
commitments to Nepal have been made by the Aid Group since
1974/75.
Concessional loans from IDA and ADB have accounted for most of the
increase in aid disbursements, with loans accounting for 75
percent of all disbursements in 1988/89 as compared to less than
one-third during the early 1970s. In the 1989/90 budget, 62.4
percent of the total foreign assistance comprised of loans and the
remaining 37.6 percent of grants. About half of the total grant
assistance (50%) was in the form of commodity aid. There were 158
projects being financed by 17 donor countries for which 76.3
percent of the total financial assistance was in the form of
grants. The multilateral agencies provided finance for 190
projects, all of which were loans. The UN agencies financed 85
projects in which the grant element constituted 83.8 percent of
total aid. Private foundations and NGOs provided financial
assistance for 24 projects, the entire aid package consisting of
grants. The multilateral agencies accounted for 53.6 percent of
the total external assistance in 1989/90 followed by donor
countries (31.6%), UN agencies (8.1%), and NGOs and private
foundations (6.6%).
International Development Association (IDA) is the major source of
multilateral aid to Nepal, accounting for about 45 percent of
Nepal's total external debt as compared to about 27 percent for
the ADB and 3 percent for the IMF. IDA has so far approved a
total of 56 credits for Nepal, totalling (net of evaluation) US $
1,029.8 million. About 78 percent of total IDA credit have so far
gone to five sectors: agriculture and irrigation (39%); water
supply and sewerage (8%); power and energy (19%);
telecommunications (4%); and highway (8%). Agriculture and
irrigation accounted for 43 percent of the total number of
credits.
Between 1969 and 1986, infrastructural projects like transport,
communications, power, water supply and sewerage received the
largest share of IDA loans (48.3%) followed by agriculture and
rural development (41%). Industry, tourism and the social sector
received low priority.
Poverty alleviation has now become the focus of IDA and most of
its operation are now directed towards this end. Although
infrastructure development continues to receive a large share of
loans, agricultural development has become a major concern of the
World Bank. This is reflected in its financing of large
irrigation projects and also in forestry development.
The Asian Development Bank is another important multilateral
financing agency providing development aid to Nepal. The sectoral
distribution of ADB loans between 1969 and 1982 shows that
agriculture, industry and transport are the three main priority
sectors accounting for about 66 percent of total loans. The
distribution of loans in the industrial sector was, however, quite
uneven with one industry accounting for a large proportion of it.
Agriculture and rural development accounted for over 36 percent of
the total loans while transport and power received 31 percent. In
the agriculture sector, ADB has financed irrigation, agricultural
credit, fisheries and aquaculture programmes. Recently, ADB has
approved a programme loan for the forestry sector for 1991-95.
Community forestry and soil conservation and watershed management
projects are the major activities besides some work on the
protection of bio-diversity. ADB is also financing industrial
loans of between US $ 0.1 to 3 million in the private sector
without government guarantee. The amount is less than 10 percent
of the share capital. Its loan financing follows the same pattern
as that of the World Bank.
Foreign aid accounted for 46.5 percent of the total development
budget for selected sectors in 1989/90 (Table C-1). The share
received by the agriculture, irrigation and forestry sectors
indicates increasing importance attached by donors to the natural
resource sectors. Donors have also attached priority to the
health and drinking water sectors although aid disbursements have
been relatively low.
5. Regional Cooperation
Establishment of a new Global Environment Facility under the joint
auspices of the World Bank, UNDP and UNEP with the objective of
helping developing countries to tackle key environmental concerns
that transcend national borders is also expected to provide new
impetus and dimension. At the regional level, India, Bangladesh,
Bhutan, Burma, Iran, Nepal, Pakistan and Sri Lanka have resolved
to coordinate their efforts in the ecological sector. At a
meeting held in 1982 in Colombo, they considered a scheme for
environmental protection and rational use of natural resources.
Now, through the forum of SAARC, Nepal, along with other member
states, intends to initiate regional programmes aimed at improving
and maintaining regional ecological balance. Nepal is the host
country for the International Centre for Integrated Mountain
Development (ICIMOD) in which eight countries of the region have
representation.
________________________________________________________________________________________________
Table C-1 : Proportion of Aid in Development Budget by Sectors
1989/90 (2046/47)
_________________________________________________________________________________
Development Aid
Budget Disbursement
(1) (2) of Sector
_________________________________ Allocation
Rs. Crore% Rs. Crore % (2)/(1)
_________________________________________________________________________________
1. Agriculture 118.35 8.5 53.62 8.3 45.3
2. Irrigation 120.48 8.7 77.24 12.0 64.1
3. Forest 54.72 3.4 18.06 2.8 33.0
4. Transport 159.01 11.5 74.99 11.6 47.2
5. Power 208.76 15.1 180.16 27.9 86.3
6. Communication 12.84 0.9 12.66 2.0 98.6
7. Industry and Commerce 135.57 9.8 65.66 10.2 48.4
8. Education 147.98 10.7 18.46 2.9 12.5
9. Health 39.38 2.8 12.96 2.0 32.
10.Drinking Water 61.74 4.5 24.06 3.7 39.
11.Local Development, 148.22 10.7 102.11 15.8 68.9
Other Services
12.Statistics, Eco. Services 178.09 12.9 4.59 0.7 2.6
_________________________________________________________________________________
TOTAL 1,385.14 100.06 44.61 100.0 46.5
_________________________________________________________________________________
The South Asian Association for Regional Cooperation (SAARC) and
the International Centre for Integrated Mountain Development
(ICIMOD), with their headquarters in Kathmandu, have given
priority to resolve environmental issues which Nepal duly
endorses. Further, SAARC intends to initiate a regional study on
the "Green house effect" with a view to study its impact on the
region. An Inter-governmental Committee will finalize the common
views of all its member states which will be presented to UNCED
92. Nepal's active participation with the Economic and Social
Commission for Asia and the Pacific (ESCAP) is helping to enhance
regional cooperation for environment and developmental needs.
Nepal's support of the Mountain Agenda of ICIMOD for UNCED'92 and
her active participation in analyzing the causes and consequences
of water-induced disasters, is an indication of her strong
commitment. The country also participates in regional efforts at
limiting the emission of green house gases, in the use of
ozone-depleting chemicals, in protecting and increasing forest
cover, and in a number of other networks and programmes in this
field. Similarly, Nepal's association with regional and
international NGOs also plays a great role in mobilizing national
and local NGOs to complement the government's efforts in achieving
sustainable development through environmental protection.
C-VI STRATEGY FOR THE FUTURE
1. Introduction
Economic development, the common aim of every country, depends
upon the optimal allocation of human and natural resources which,
through the application of modern efficient technology, produces
goods and services contributing to a country's GDP. However,
increased GDP may not be sustainable if it does not take into full
account sustained supply of natural resources. Sustained supply
of natural resources in the production process demands proper
management of the resource base with due consideration of the
environment.
In the past, developmental programmes in Nepal, as elsewhere, had
paid little or no heed to the environment. Rather,many of them
had contributed to the deterioration of the environment, even in
the developed countries. Thus the need of the hour is to look at
environment and development as one intricate whole of the
development process.
As poverty is the basic cause of poor land management in many of
the Third World countries, the consequence of poor land management
has deteriorated the environment leading to further poverty. In
the context of Nepal, it is necessary to deal with the problems of
environment in a broader developmental perspective that encompass
the factors underlying poverty and inequality. In order to
achieve sustainable growth, there is a need to link developmental
and environmental policies. Some of the critical issues Nepal
considers important to address in the coming decade, which have a
direct bearing in resolving environmental problems, are rapid
population growth, land degradation, depletion in bio-diversity,
pressure on traditional wood energy sources and increasing
pollution which have been duly recognized by the National
Conservation Strategy (NCS) of Nepal. The NCS was endorsed by the
government in 1988 and forms a basis for integrating conservation
with development planning. However, it needs to adopt
participatory planning, legislation, institutions, and
international cooperation. The strategic approaches that are
being adopted are briefly enumerated below.
2. Population Control
Nepal is fully aware that population dynamics is inextricably
connected to environmental problems in most of the developing
countries, and has thus given priority population control as the
main policy directive for future economic growth. The present
population growth rate of 2.6 percent per annum has become
untenable if agro-based employment has to be maintained at the
present level (over 90 % agro-based). The strategies for
population control include expansion of family planning, maternity
and child health services, integration of population control
programmes in other sectoral projects, expansion of adult
education programmes for women, emphasis on enhancing the status
and participation of women in decision-making processes,
mobilization of local communities in family planning activities,
and expansion of delivery services for family planning by
involving the private sector and local NGOs. Although population
control is essential, emphasis is also being given to improve the
quality of life of the population through extension of health
services and education facilities.
3. Land Use Management
The productivity of Nepal's land resource is limited by topography
and climate. Considering the small size of the country, the
north-south variation in altitude and the accompanying micro-
climatic changes within a short horizontal distance, affect crop
production potential drastically. There are multiple pressures on
both agricultural and forest land to meet the increasing food
demand and to protect the environment and raw materials required
for urbanization and industrialization for new economic
activities. The government is in the process of devising a land
use policy and supportive legislation to implement a national land
use plan to optimize production from the limited resource base
with due consideration to the environment. The basic approach of
the land use strategy will be intensification of agriculture in
areas having developed infrastructure, protection of forest land
on steep and vulnerable watersheds, (including the Siwaliks),
management of degraded forests and shrublands for timber, fuel
wood and fodder production, and improvement of pasture land. Also
promotion of community forestry and private wood lots on village
marginal lands to supplement the needs of the local people for
firewood, fodder and timber, and which in turn also help to
protect the national forests. A geographical information system
(GIS) is being developed to make regular assessment of changes in
land use in the country.
4. Bio-diversity Conservation
Nepal contains some of the most spectacular natural areas in the
world manifested by the immense contrast in altitude and ecology
within a small land mass. Two of the country's National Parks,
the Chitwan and the Mount Everest, have been listed in UNESCO's
World Heritage Sites. The present experience in managing
protected areas will be utilized to take future initiatives in
managing and extending areas for conservation of biological
diversity. The policy of zoning protected core areas with
surrounding buffer zones for conservation and allowing access to
local users will be promoted in parks and reserves. To minimise
adverse impact on biological diversity in protected areas and
popular tourist destinations, regulatory measures such as limiting
visitors, regional dispersal by opening new areas and clean-up
programmes will be incorporated in the management plans.
5. Energy Development
Heavy dependence on traditional energy sources, mainly fuel wood,
is one of the main causes of forest depletion in Nepal.
Therefore, alternative energy development will be an important
strategy. Extensive poverty precludes the affordability of
alternative sources to fuel wood and can only be tackled through
poverty alleviation. Energy development has been adopted as a
high priority programme with a multi-pronged approach.
Encouragement is being given to community forestry, village wood-
lots and agro-forestry plantations to tackle the fuel wood
deficit. In addition, attention is being given to technology
development for renewable sources of energy such as bio-gas, solar
and wind power. The government is considering a long-term
perspective Energy Plan to identify and develop an adequate number
of power projects of various scales, particularly in the hydro
power sector. Hydro-energy development will include micro systems
for rural electrification as well as large projects for export of
power to neighbouring countries. To harness the hydro power
potential available in the country and to provide a reliable
source of energy, strategies will be developed to generate hydro
power at a lower cost and at a faster pace. The strategy will be
to bring about institutional changes to enhance wider investment
in the development of hydro power of medium scale to suit domestic
requirements. The strategy for implementing larger projects will
also consider fine tuning of the institutional mechanism to
properly assess and mitigate the adverse environmental impact that
would be brought about by such development. Of course,
Environmental Impact Assessment (EIA) will constitute an essential
component of all hydro-power projects.
6. Pollution Control
Despite the low level of industrialization, problems of pollution
have been emerging in Nepal in specific industrial and urban
localities. The strategies adopted to control water, solid waste
and air pollution will have to be location specific.
Infrastructure services for solid waste management is also being
extended to larger towns other than the capital city, Kathmandu.
Regulatory mechanisms are being developed to prescribe effluent
treatment devices to industries, including restriction on the
establishment of certain types of industries in densely populated
areas, and away from watersheds, rivers and lakes of ecological,
religious and touristic values. A more comprehensive strategy
will be developed based on minimum allowable standards of air,
water, land and noise pollution covering major polluting sources
in Nepal. Institutional capability will be developed to initiate
coordinated action on environment protection.
7. Enabling Mechanisms
The National Planning Commission, the apex body of HMG/N to
coordinate implementation of government policies of all sectors,
will formulate a national environmental policy taking into
consideration sustainability of development through an integrated
approach. It will ensure that all national policies, development
plans, budgets and decisions on investment take full account of
their effects on the environment.
The recently established Ministry of Forests and Environment (MoFE
1991) will assist both the NPC and the sectoral agencies in
implementing government policies with minimum adverse effect on
the environment. It will develop its capability to support
institutionalization of Environmental Impact Assessment (EIA) and
development of mitigative programmes, including monitoring and
evaluation. The MoFE will function as a focal node of the
government in environment matters and coordinate environment-
related action programmes of both government and non-governmental
bodies.
As the Constitution of Nepal 1990 includes a special provision for
conservation of bio-diversity and environmental management, the
government will initiate the process of establishing a
comprehensive system of environmental laws. The laws will attempt
to address cross-sectoral linkages to overcome problems emanating
from a vertical approach of implementation. In this regard, the
MoFE will play a major role in the enforcement of legislation
including coordination in implementation with concerned agencies.
However, the strategic thrust in environmental management in Nepal
must aim at poverty alleviation while promoting economic
development. The strategies for poverty alleviation must also
accord due consideration to the environment for sustainable
economic development. The forthcoming National Environmental
Policy in support of the Eighth Five Year Plan will incorporate
the essential elements of the poverty alleviation efforts.
The sustainability of these efforts will be enhanced only when the
beneficiaries have a greater role in all stages of the decision-
making and implementation processes. Since women and children,
particularly at the subsistence level, are most affected by
environmental degradation and as women also play a key role in
economic activities that have long-lasting environmental
implications, their active participation will be ensured in local
resource user's group. Similarly, NGOs will be supported to play
a significant role in bringing people's participation in
environmental management and development. HMG/N also accords
priority in improving awareness in conservation of natural
resources and sustainable development at all levels through formal
and non-formal education.
Nepal has been receiving favourable response from the
international community in all its priority sectors. The present
democratically elected government of Nepal seeks more generous
support from the international community to fulfill the basic
needs of the majority of its population. Nepal takes a positive
view on the timely consideration of global environmental issues of
common concern to all mankind for achieving sustainable
development and assures full cooperation in these endeavours
through appropriate national actions.
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Part D
EXPECTATIONS FROM THE CONFERENCE
As an active member of the United Nations system in the
environment arena, Nepal was party to the UN Conference on the
Human Environment in 1972. It is actively involved with UNEP as an
elected member of the governing council since 1984. Nepal
welcomes the UNCED 1992 that aims to create another milestone, 20
years after the Stockholm Conference, to combat environmental
degradation through strategies and measures at the national and
international level to promote sustainable development in all
countries. Of the global issues that will form the agenda of this
Conference, Nepal has particular concern and interest on matters
relating to the protection and management of land and water
resources, the conservation of biological diversity, the
environmentally sound management of biotechnology, and improvement
of the living conditions of the poor.
Nations inherit natural resources but the environmental
consequences of their use or misuse may transcend political
boundaries. Thus, the degradation of the environment in the
Central Himalayas, where Nepal is located, can have far-reaching
effects on the lowlands. It was with this realization that Nepal
initiated a move for a Himalaya research network as early as 1976
at the XIXth session of UNESCO at Nairobi. The establishment of
ICIMOD in 1983, with its headquarter in Kathmandu, has been a
positive step towards this endeavour. Nepal has also been
emphasizing regional cooperation to resolve economic and
environmental problems with the establishment of the SAARC. Being
a mountainous country encompassing a major portion of the
Himalayan ecosystem, Nepal proposes that development of
mountainous regions be given specific coverage in Agenda 21, UNCED
92.
His Majesty's Government of Nepal considers the conference as an
opportunity to review what has been achieved in the 20 years after
the Stockholm Conference. It also views UNCED 92 as a means of
devising strategies and measures aiming at controlling
environmental degradation and achieving sustainable development in
all the countries. Global environmental problems, including the
depletion of the ozone layer, climatic change, deforestation and
loss of biological diversity and increasing pollution of air,
water and noise have become the focus of the international
community. Nepal includes a territory of immense bio-diversity
extending from humid tropics to an alpine temperate ecosystem,
which could provide an ideal location for research on bio-
diversity as well as the land degradation process. HMG/N welcomes
international cooperation for such scientific ventures.
HMG of Nepal hopes that UNCED 1992 will be able to draw a
consensus framework on the following global issues:
a. An Earth charter on "Principles for Environmental
Protection and Sustainable Development".
b. Depletion of ozone layer, world climatic change,
application of biotechnology, protection of biological
diversity and deforestation.
c. Finalization of strategies for concerted actions to
support sustainable development, and strengthen
institutional capability at international level to
implement Agenda 21 into the 21st century.
Nepal hopes that UNCED 92 will succeed in addressing these issues
in light of the inter-relationship between people, resources,
environment and development in developing countries so that
appropriate policy interventions can be made to enhance the
concept of sustainable development.
Nepal's position has been to support efforts of the international
community in sustainable development, but as a developing country,
Nepal also calls to the international community to resolve some of
the cross sectoral issues such as transfer of technology and
increased financial resources critically needed for sustainable
development. This would help in the strengthening and expansion
of national institutions including training, education, research
and management.
UNCED 92 should be viewed as a forum to initiate a new
international economic order which supports developing countries
in their endeavour to sustainable development without affecting
the economic growth currently constrained by debt crisis. The
burden of dealing with global environmental issues to developing
countries, particularly the least developed countries, for the
sake of the common future of all mankind would need positive
support from developed countries on the basis of equity.
Poverty is the basic cause of excessive resource exploitation and
underdevelopment which has led to further degradation of the
environment in many developing countries. These countries,
besides their own efforts, need external assistance for poverty
alleviation, population control and natural resource management,
including development of alternative sources of energy.
As the use of natural resources is the fundamental right of any
Sovereign State, limiting the use or overuse of these resources of
a particular State in the larger interest of the global community
should be duly compensated so that economic development is not
adversely affected. In addition, the Conference may draw the
attention of industrialized nations to consider the expression of
developing countries i.e. "Need for transfer of technology on a
preferential and non-commercial basis".
The Conference should also focus on the effectiveness of
international conventions and treaties brought into force so far,
and look into the institutional requirements for the
implementation of the proposed "Earth Charter".
Since the emphasis of the Conference will be on sustainable
development, Nepal supports the concept of bringing about
necessary changes in institutional arrangements for the
implementation and follow-up of the resolutions of UNCED 92. For
this purpose, the Conference should decide on establishing
effective institutions under the aegis of the United Nations.
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Anexes
Annex A
Evolution of Environment-Related Policies, Laws and Institutions
_________________________________________________________________________________________________
Seventh Plan (1985-90)
Fifth Plan (1975-80) Sixth Plan (1980-85) and to date
_________________________________________________________________________________________________
a. Policy
- Water resources - Water resources - Water resources and
and energy energy
- Environment and - Land use - Environment and land
land use use
- National Forest - De-emphasis on land - Moratorium on land
Policy , 1976 settlement settlement
- EIA initiated - National Conservation
Strategy, 1987
- Forestry Sector
Master Plan, 1988
b. Laws
- Land Acquisition - King Mahendra Trust - Soil and Watershed
Act, 1977 for Nature Conservation Conservation Rules,
Act, 1982 1986
- Land Revenue Act, - Soil and Watershed - SWMRM Act, 1986
1977 Conservation Act, 1982
- Forestry Rules, - Nepal Petroleum Act,
1978 1983
- Tourism Act, 1978 - Nepal Electricity Act, - Forestry Bill, 1989
- Mountaineering 1984
Rules, 1979 - Mines and Minerals - Nepal Constitution,
Act, 1985 1990
c. Institutions
- National Commission - National Commission - Environment Division
for Conservation for on Population, 1981 in NPC, 1987
Natural Resources - Environmental Impact - Environment Division
(NCCNR) Assessment Project in Dept.of SCWM,1988
- Dept. of National under DSCWM, 1981 - Environment Unit in
Parks and Wildlife - King Mahendra Trust Dept. of Road, 1988
Conservation (1980) for Nature Conservation - Environment Unit in
(KMTNC), 1982 NEA, 1990
- Other Non-governmental - Council for Conservation
Organizations (NGOs) of Natural and Cultural
Resources, 1991 (CCNCR)
- Environment Section in
Dept. of Irrigation, 1991
- Other NGOs
_________________________________________________________________________________________________
Annex B
Nepal: Environment Related Legislation
1. Patent Design and Trademarks Act, 1936 (New Act, 1965)
2. Agriculture Crops Act, 1954
3. Nepal Mines Act, 1956 (New Act in 1985)
4. Private Forest Nationalization Act, 1956
5. Forest Protection Act 1956
6. Lands Act, 1956 (Revised 1965)
7. Ancient Monuments Protection Act, 1956
8. Animal Feed Act, 1956
9. Royal Nepal Airlines Act, 1956 (Revised 1963)
10. Wildlife Protection Act, 1957
11. Nepal Factory and Factory Worker's Act,1958
12. Civil Aviation Act, 1958
13. Nepal Industrial Development Corporation Act, 1958
14. Birta Abolition Act, 1959
15. Aquatic Animals Protection Act, 1961
16. Land Survey Act, 1961
17. Industrial Enterprises Act, 1962 (Revised 1982)
18. New Civil Code, 1962
19. Explosives Act, 1963
20. Land Acquisition Act, 1963
21. Forestry Act, 1963
22. Irrigation Act, 1963
23. Town Development Committee Act, 1964
24. Vehicles Act, 1964
25. Nepal Electricity Act, 1964
26. Malaria Eradication Act, 1965
27. Contagious Diseases Act, 1965
28. Nepal Medical Council Act, 1965
29. Tourism Industry Act, 1965
30. Highway Construction Act, 1965
31. Mills Act, 1965
32. Food Act, 1966
33. Rapti Doon Land Development Area (Sale and Distribution)
Act, 1967
34. Agriculture Development Act, 1966
35. Canal, Electricity and Related Water Resource Act, 1967
36. Forest Protection (Special Arrangements) Act, 1967
37. Town Development Plan (Implementation) Act,(1970)
38. Plants Protection Act, 1972
39. Jhora Sector Land Distribution Act, 1972
40. National Parks and Wildlife Conservation Act, 1973
41. Pasture Land Nationalization Act, 1974
42. Public Roads Act, 1974
43. Narcotic Drugs Control Act, 1976
44. Cattle Feeds Act, 1975
45. Medicines Act, 1976
46. Nepal Standard Act, 1979
47. King Mahendra Trust for Nature Conservation Act, 1982
48. Soil Conservation and Watershed Management Act, 1982
49. Decentralization Act, 1982
50. Natural Calamities Relief Act, 1982
51. Nepal Electricity Authority Act, 1983
52. Nepal Petroleum Act, 1983
53. International Centre for Integrated Mountain Development
Act, 1983
54. Solid Waste Management and Resource Mobilisation Act, 1986
55. Pashupati Area Development Trust Act, 1987
56. Royal Academy of Science and Technology Act, 1988
57. Village Development Act, 1990
58. Municipality Act, 1990
59. District Development Board Act, 1990
60. Constitution of Kingdom of Nepal, 1990
61. Pesticides Control Act, 1991.
Annex C
Agencies with Environmental Responsibilities
________________________________________________________________________________________________________
Agency/Ministry Department/Units Responsibility
________________________________________________________________________________________________________
National Planning 1. CCNCR Coordination
Commission 2. Environment Division
Agriculture 1. Agriculture Bio-technology, land use,
improvement and management,
agri-extension, fisheries
2. Agriculture Marketing Agricultural production,
Services plant quarantine
3. Livestock Development Animal husbandry, animal,
and Animal Health feed and fodder
4. Horticulture Fruits and vegetable
development and promotion
Communication 1. National News Service Dissemination of
2. Radio Nepal environmental information
3. NTV awareness creation
4. Gorkhapatra and Rising Nepal
Defence 1. Army Headquarters Surveillance of National
Parks and Reserves
Education and 1. Archaeology Ancient monuments, museums,
Culture archives, awareness creation
2. Nepal Central Library Documentation
Finance Allocation of funds,
coordination of foreign aids
Customs Prevention of illegal trafficking
of forest produce
Forest and 1. Forests (Regional/ Forest management,
Environment District Offices) protection and community
forestry
2. National Parks and Protection of ecosystems,
Wildlife Conservation bio-diversity
endangered flora and fauna
3. Soil and Watershed Soil conservation and
Management watershed management,
EIA, environment education
4. Plant and Forest Research and herbarium,
Research botanical garden,
genetic resource
________________________________________________________________________________________________________
________________________________________________________________________________________________________
Agency/Ministry Department/Units Responsibility
________________________________________________________________________________________________________
Health 1. Health Services Public health and family
planning
2. Health and Sanitation Environmental health
Services
Housing and 1. Housing and Physical Urban planning and
Physical Planning Planning development, sewerage,
Town Planning sanitation and pollution
Boards control
2. Solid Waste Management Collection recycling and
& Resource Mobilization disposal of solid wastes
and sanitation improvement
Industry 1. Industry/Cottage and Pollution control; mineral,
Village Industry mining and technological
development, transfer of
technology
Land Reform and 1. Land Reform Land tenure, land
Management surveying and mapping
Local Development 1. District Development Integrated rural
Units development,
decentralization
Supply 1. Timber Corporation Sale and distribution of
forest products (fuelwood
and timber)
Tourism 1. Tourism Tourist services, trekking,
2. Civil Aviation mountaineering and
environment protection
Water Resources 1. Irrigation, Electricity Utilization of surface and
Authority, Meteorology ground water, electricity,
and Hydrology flood and river control,
meteorology /hydrology
information
2. Water and Energy Policy and planning
Commission
Works and Transport 1. Roads Land and water transport,
environment protection
________________________________________________________________________________________________________
Annex D
Nepal: Chronology of Some Environmental Institutional
Development
1942 - Department of Forestry
1950 - Establishment Forestry Training School
1951 - Establishment of Ministry of Forestry
1952 - Royal Land Commission formed to promote national land
reform
1952 - Establishment of Department of Archaeology
1956 - Enactment of Forest Nationalization Act
1956 - Commencement of national economic planning with the
First Five - Year Plan (1956-62)
1957 - Founding of Royal Nepal Academy to encourage, protect
and publicize Nepalese literature, art and culture
1961 - Enactment of Forest Act
1962 - Second development plan (1962-65) commences, with
emphasis on land reform, food production and transport
and communication infrastructure
1965 - Third Five-Year Plan (1965-70) launched, giving emphasis
to increased food production, land reform, forest
management, cultural heritage conservation and urban
sanitation
1970 - Fourth Five-Year Plan (1970-75) formulated, giving
emphasis to the development of special areas of national
priority. Regional development planning concepts
emerged.
1973 - Nepal Nature Conservation Society (NGO) established.
1974 - Department of Soil and Water Conservation established:
renamed in 1981 as Department of Soil Conservation and
Watershed Management (DSCWM).
1975 - Fifth Five-Year Plan (1975-80) launched with emphasis on
land use planning.
1980 - Department of National Parks and Wildlife Conservation
set up.
1980 - Sixth Five-Year Plan (1980-85) commenced with greater
consideration to environmental policies and programmes.
1980 - National Commission for the Conservation of Natural
Resources organized with the objective to coordinate the
activities of DSCWM and natural resource management.
1981 - National Commission on Population established (now
Population Division under NPC).
1982 - Environmental Impact Study Project established to study
the environmental consequences (EIA) of selected
development projects.
1982 - King Mahendra Trust for Nature Conservation Act (NGO)
established with the mandate to promote conservation and
management of natural areas and wildlife.
1982 - Nepal Environment Conservation Group (NGO) established
as a non-governmental organization to promote
environmental awareness.
1982 - Water and Energy Commission established.
1983 - International Centre for Integrated Mountain Development
(ICIMOD) founded to address mountain development issues
of Hindukush-Himalayas.
1983 - International Union for the Conservation of Nature and
Natural Resources (NGO) established a project office in
Nepal to prepare NCS for Nepal.
1985 - Seventh Five-Year Plan (1985-90) initiated.
1985 - Nepal Heritage Society (NGO) founded.
1985 - Basic National Principles for Policy issued containing
several environment related policies.
1985 - Nepal Forum of Environmental Communicators (NGO)
established.
1986 - Jarajuri Trust (NGO) created to recognize and support
local initiative in the field of forest conservation and
management.
1986 - Annapurna Area Conservation Project initiated by the
King Mahendra Trust for Nature Conservation.
1987 - Leaders Inc. (NGO) established.
1987 - Environment and Resource Conservation Division
established within the National Planning Commission
Secretariat.
1987 - Environment Division established in the Department of
Soil Conservation and Watershed Management.
1987 - Environment Camp for Awareness (NGO) established.
1987 - National Conservation Strategy document endorsed by
HMG/N.
1988 - Environment Management Unit established within the
Department of Roads.
1988 - Master Plan for the Forestry Sector endorsed by HMG/N.
1989 - Panchayat system replaced by the Multiparty System and
the Interim Government thus formed introduced the
Municipality Act, District Development Committee Act and
Village Development Committee Act. New administrative
units given various environmental management
responsibilities.
1990 - Policy guidelines issued on new development activities
that have potential adverse environmental impacts.
1990 - Council for the Conservation of Natural and Cultural
Resources established under National Planning
Commission.
1990 - Constitution of the Kingdom of Nepal promulgated with a
strong commitment on environmental protection.
1991 - Environment Section established in the Department of
Irrigation.
1991 - Ministry of Forests and Soil Conservation renamed
Ministry of Forests and Environment for greater
protection and management of the natural environment.
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