Excessive government interference in the past decades has discouraged private investment in several areas, including the production and marketing of farm inputs. The adverse effects of this strategy have been widely acknowledged. Consequently, since the early 1990s, the government of Nepal has been pursuing policies that foster private sector investment and promote public-private partnership (PPP) in various areas of development, including agricultural research and development.
Nepal’s experience with regard to the PPP is mixed. Some PPP modalities have worked, whereas some have not. Similarly, some PPP modalities have been found benefiting the rich and affluent more than the poor and the deprived sections of people. There is a need to devise a sound pro-poor PPP policy in the agriculture sector to achieve inclusive growth and address poverty. While there are a range of PPP models and their variants in use in Nepal, a critical review of these models and assessment of their impact on the poor and deprived sections of society are lacking.
Objectives
The general objective of this policy analysis study is to review and analyse the past experiences within and outside Nepal and recommend a PPP model, including cooperative and contract farming, that can address the needs in various stages and aspects of value chain. The specific objectives are:
- To assess the current situation of PPPs in agriculture;
- To identify policy gaps that have constrained the backward and forward linkages in public-private partnerships in different agricultural subsectors;
- To develop a pro-poor PPP policy package and strategies, including a detailed action plan for the implementation of the policy.
Scope
The scope of work will mainly include, but will not be limited to, the following:
- Establish a clear description of the need and rationale for PPP in agriculture.
- Analyse ongoing and past experiences and best practices in PPP from Nepal and elsewhere.
- Review Nepal's existing policy and regulatory environment and gaps from the perspective of promoting PPP.
- Develop a PPP policy package for consideration of the government.
- Prepare a detailed action plan for the implementation of the policy.
Methodology
This policy analysis study will be based on an investigation into the current situation related to PPP in research and development, technical service delivery, education, provision of inputs (seeds, fertilizers, irrigation, pesticides, machineries, credit, etc) and output management, cooperative farming and marketing (sanitary and phyto-sanitary measures, producer-friendly trade provisions, etc). The study will be based on both primary and secondary information. The methodology will include the following:
- Review and analysis of existing policies, acts, regulations, plans and guidelines and key gaps that relate to PPP.
- Participatory consultations with experts of related agencies and private sector organizations for the identification of study districts and key research issues and their incorporation in the research tools.
- FGDs with line agencies, cooperatives and private sector actors involved in farming, input and output trade and credit services in selected districts representing the mountain, hill and Terai regions to solicit their perspectives and to explore the feasibility of such partnership.
- Organization of a workshop at district and national level to solicit feedback on the policy paper.
The analysis will be largely descriptive and will be based on information collected through the use of different methods, including review of relevant literature and triangulation
