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Country Strategic Opportunities
      Program (COSOP)

          Annual Review
              2012
Mission Objectives
Track progress and impact on development effectiveness
Assess the relevance of SOs to the current context
Examine the appropriateness of strategies and approaches for
 achieving the SOs
Examine the adequacy of institutional support and
 implementation arrangements
Draw conclusions and recommendations
Methodology

Literature review


Interviews with related government, non-government,
  private sector agencies, project staff and beneficiaries

Field visits
Country Context
Demography: 26 million people, 83% rural
Economy: Low HDI, low income, slow growing, changing
 income structure (farm income 28%)
Poverty: Reduced to 25% (rural 28%), highest incidence in FW
 and mountains, and among dalits, HH headed by agricultural wage
 workers
Drivers of poverty gains: Remittance, connectivity,
 urbanization, commercial agriculture
Agriculture: Small, traditional, cereal-dominated, low-
 productivity and rain-fed farming
Forestry: 39%, ¼ CFUG managed, LHF
Policy environment: TYIP, NAP, ADS
IFAD Country Strategies
COSOP 2000: Guided by 9th Plan, strategic thrust on sustainable
  livelihoods and social justice in remote, isolated and disadvantaged
  area of Mid and FW
COSOP 2006: Fully aligned with 10th Plan with three strategic
  objectives: (i) increased access to economic opportunities, (ii)
  improved community infrastructure and services, and (iii)
  reduced gender, ethnic and caste-related disparities
Crosscutting: Local governance and peace building
Relevance of SOs: Still relevant in the current context
Projects Covered by the Review
Project     Effective   closing

WUPAP         2003       2014

 LFLP         2005       2014

 PAF II       2008       2012

 HVAP         2010       2017

 ISFP           -          -
Project Coverage
Country-specific grant projects implemented during the
  COSOP period: LLP, COCIS, SEEP, PPLP and HVAP-IB

Actual coverage of the projects as of Dec 2011 was about
  153,000 HH (3% of rural HH) against the planned coverage
  of 232,900 HH (5% of all rural HH) in 42 districts
Impact on Poverty
            Poverty Headcount Ratio by Regions
 Region          NLSS 1995/96   NLSS 2003/04   NLSS 2010/11

  Eastern             39             29             21

  Central             33             27             22

 Western              39             27             22

Mid-western           60             45             32

Far-western           64             41             46

  Nepal               42             31             25
Impact on SOs
SO I: Increased access to economic opportunities
(i) % increase in volume and value of agricultural, livestock and
    forestry outputs
(ii)% increase in trade flows to/from project areas
(iii)Increased incomes from HV commodities


SO II: Comm. infrastructure and services improved
(i) Availability of rural infrastructure and services
(ii)Involvement of NGOs, CBOs and private sector
Impact on SOs (contd..)
SO III: Gender, ethnic and caste-related disparities reduced
(i) Participation of DAGs in local decision making and governance
    increased
(ii)Higher standards of health and education among women and
    DAGs
Crosscutting: Local governance and peace building
(i) Progress in achieving sustained reconciliation and reconstruction
    process
(ii)Inclusiveness and transparency of local governance
Project Ratings
                            June 2012

                    WUPAP        LFLP   PAF II   HVAP


Fiduciary Aspects    4.3         4.2     4.3      3.8


Implementation       4.4         4.3     4.5      4.1
   progress

  Outputs and        3.8         3.6     4.0      4.0
   outcomes

  Sustainability     4.3         4.3     4.5      4.0
Overall Portfolio Ratings
                    CPE, Nov 2012
Relevance                   4
Effectiveness               4
Efficiency                  3
Impact on rural poverty     4
Sustainability              3

Overall portfolio           4

Non-lending activities      3
Status of Implementation of Agreed
    Actions and Recommendations

WUPAP (Dec 2011): All, except one, of the agreed actions
  implemented
LFLP (June 2012): Some completed, some on-going and
  some are planned
PAF II (June 2012): Planned, some work initiated
HVAP (June 2012): Majority implemented, some are in
  process and some yet to start
Log-frame revised
Support to private traders under VC fund
Changes in Nepal Projects Over the
             COSOP Period

Reorientation of strategic thrust and sectoral commodity
 focus
More sharply focused targeting
Increased emphasis on knowledge management
RIMS started in LFLP and WUPAP
SIMES developed and partially operationalized in projects
Key Conclusions/Issues
Targeting (economic efficiency, social/geographic)
Knowledge management
COSOP management and communication
Capacity building
Policy feedback
Project design and flexibility
Monitoring indicators (e.g. RIMS from Projects)
Partnership strategy
Environment and climate change
Recommendations
 Adopt a two-pronged Program strategy and inclusive targeting
 Adopt a clear and simple policy agenda and support national
  debate, forums and advocacy on key policy issues
 Support capacity building of COs, PMU and frontline technical
  staff
 Establish and equip a single Country Support Office
 Improve monitoring indicators and internalize SIMES
 Support NGO/regional grants for action research to improve
  adaptation and resilience to climate change
 Improve partnership strategy and harmonization of approaches
  with other donor programs

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Cosop Review

  • 1. Country Strategic Opportunities Program (COSOP) Annual Review 2012
  • 2. Mission Objectives Track progress and impact on development effectiveness Assess the relevance of SOs to the current context Examine the appropriateness of strategies and approaches for achieving the SOs Examine the adequacy of institutional support and implementation arrangements Draw conclusions and recommendations
  • 3. Methodology Literature review Interviews with related government, non-government, private sector agencies, project staff and beneficiaries Field visits
  • 4. Country Context Demography: 26 million people, 83% rural Economy: Low HDI, low income, slow growing, changing income structure (farm income 28%) Poverty: Reduced to 25% (rural 28%), highest incidence in FW and mountains, and among dalits, HH headed by agricultural wage workers Drivers of poverty gains: Remittance, connectivity, urbanization, commercial agriculture Agriculture: Small, traditional, cereal-dominated, low- productivity and rain-fed farming Forestry: 39%, ¼ CFUG managed, LHF Policy environment: TYIP, NAP, ADS
  • 5. IFAD Country Strategies COSOP 2000: Guided by 9th Plan, strategic thrust on sustainable livelihoods and social justice in remote, isolated and disadvantaged area of Mid and FW COSOP 2006: Fully aligned with 10th Plan with three strategic objectives: (i) increased access to economic opportunities, (ii) improved community infrastructure and services, and (iii) reduced gender, ethnic and caste-related disparities Crosscutting: Local governance and peace building Relevance of SOs: Still relevant in the current context
  • 6. Projects Covered by the Review Project Effective closing WUPAP 2003 2014 LFLP 2005 2014 PAF II 2008 2012 HVAP 2010 2017 ISFP - -
  • 7. Project Coverage Country-specific grant projects implemented during the COSOP period: LLP, COCIS, SEEP, PPLP and HVAP-IB Actual coverage of the projects as of Dec 2011 was about 153,000 HH (3% of rural HH) against the planned coverage of 232,900 HH (5% of all rural HH) in 42 districts
  • 8. Impact on Poverty Poverty Headcount Ratio by Regions Region NLSS 1995/96 NLSS 2003/04 NLSS 2010/11 Eastern 39 29 21 Central 33 27 22 Western 39 27 22 Mid-western 60 45 32 Far-western 64 41 46 Nepal 42 31 25
  • 9. Impact on SOs SO I: Increased access to economic opportunities (i) % increase in volume and value of agricultural, livestock and forestry outputs (ii)% increase in trade flows to/from project areas (iii)Increased incomes from HV commodities SO II: Comm. infrastructure and services improved (i) Availability of rural infrastructure and services (ii)Involvement of NGOs, CBOs and private sector
  • 10. Impact on SOs (contd..) SO III: Gender, ethnic and caste-related disparities reduced (i) Participation of DAGs in local decision making and governance increased (ii)Higher standards of health and education among women and DAGs Crosscutting: Local governance and peace building (i) Progress in achieving sustained reconciliation and reconstruction process (ii)Inclusiveness and transparency of local governance
  • 11. Project Ratings June 2012 WUPAP LFLP PAF II HVAP Fiduciary Aspects 4.3 4.2 4.3 3.8 Implementation 4.4 4.3 4.5 4.1 progress Outputs and 3.8 3.6 4.0 4.0 outcomes Sustainability 4.3 4.3 4.5 4.0
  • 12. Overall Portfolio Ratings CPE, Nov 2012 Relevance 4 Effectiveness 4 Efficiency 3 Impact on rural poverty 4 Sustainability 3 Overall portfolio 4 Non-lending activities 3
  • 13. Status of Implementation of Agreed Actions and Recommendations WUPAP (Dec 2011): All, except one, of the agreed actions implemented LFLP (June 2012): Some completed, some on-going and some are planned PAF II (June 2012): Planned, some work initiated HVAP (June 2012): Majority implemented, some are in process and some yet to start Log-frame revised Support to private traders under VC fund
  • 14. Changes in Nepal Projects Over the COSOP Period Reorientation of strategic thrust and sectoral commodity focus More sharply focused targeting Increased emphasis on knowledge management RIMS started in LFLP and WUPAP SIMES developed and partially operationalized in projects
  • 15. Key Conclusions/Issues Targeting (economic efficiency, social/geographic) Knowledge management COSOP management and communication Capacity building Policy feedback Project design and flexibility Monitoring indicators (e.g. RIMS from Projects) Partnership strategy Environment and climate change
  • 16. Recommendations  Adopt a two-pronged Program strategy and inclusive targeting  Adopt a clear and simple policy agenda and support national debate, forums and advocacy on key policy issues  Support capacity building of COs, PMU and frontline technical staff  Establish and equip a single Country Support Office  Improve monitoring indicators and internalize SIMES  Support NGO/regional grants for action research to improve adaptation and resilience to climate change  Improve partnership strategy and harmonization of approaches with other donor programs