EXECUTIVE SUMMARY
Background
Following an 11-year armed insurgency, Nepal has achieved a transition from a monarchy to a federal democratic republic. Despite a well-observed ceasefire, public security and rule of law are tenuous. New conflict has risen, driven by unresolved social exclusion, marginalization of ethnic groups, economic disparities, political fractionalization and lack of state services.
The signing of the Comprehensive Peace Agreement (CPA) between the Government of Nepal and the Maoists in 2006 created an opportunity for peace and reconciliation. An interim Constitution was promulgated and an interim parliament was elected. In the election, the Maoists won more seats than any other party, historically dominant parties suffered unexpected defeats, and new Madeshi parties (from the volatile southern region of Nepal) won significant representation. Nepal was de¬clared a republic. The Constituent Assembly (CA) was tasked with drafting Nepal's new constitution while addressing significant social, economic, and political issues.
However, constitution drafting, re-establishment of the rule of law, and the addressing of histori¬cal grievances have seriously lagged; very few elements of the CPA have been resolved, most urgent being the integration of the military under civilian control. The long-standing inequalities that fed the original Maoist insurgency have come to a head in central and eastern Terai districts, where Nepal's landless poor and marginalized groups have long been denied equal access to social, economic, and political resources. Former cadres, new splintered political parties, and criminal gangs joined forces with disillusioned youth, inflaming historical grievances among frustrated groups in the Terai, and giving rise to a new wave of conflict in Nepal.
OTI Intervention
USAID Office of Transition Initiatives and its implementing partner, Chemonics International, commenced its three-year Nepal program in mid 2006, with the goal "to positively affect the current political transition in Nepal and help advance Nepal's transition to peace and democracy." The initial objectives were:
- To increase information access and diversify public debate on issues critical to the political transition.
- To increase effectiveness of key political transition institutions.
At first, OTI focused on national-level support to the peace process, including support to the National Monitoring Commission for the Ceasefire Code of Conduct, the Electoral Commission, and the Ministry of Peace. In 2007, OTI opened a field office in Sunsari District to better understand local conflict dynamics, identify local organizations, and monitor activities. Following the 2008 CA elections, ethnic violence increased in the Terai, and the OTI program shifted focus to community-level peace building and conflict mitigation. The second objective was replaced with a new objective that reflected this change in emphasis:
- To increase local level engagement and participation in the peace process.
Over the three-year program period, $20 million has been programmed in over 300 grants made in strategically identified sectors: community stabilization, media strengthening, key political institu¬tions strengthening, elections, and social inclusion, as a cross-cutting sector. To increase awareness of the peace process and constitutional issues, OTI supported a wide range of local-level initiatives and media activities. Equipment and training for local radio networks supported vernacular language broadcasts on the political transition. Toll-free call-in talk shows with local officials were initiated, and CA members and their constituents took advantage of new opportunities to air grievances and discuss local issues. Responding to the changing political situation, OTI worked to cultivate positive productive roles and resources for youth leaders in small-scale community development activities (Community Development Fund) through grants to partner Nepalese NGOs. Youth-managed, small scale projects (school and clinic rehabilitation, road repairs, latrine construction) have reached over 400 Village Development Committees in the Eastern and Central Terai. The OTI Program will con¬tinue at a reduced funding level, subsumed within USAID Nepal for an additional two years through 09/2011. Excellent documentation of the OTI process and the Nepal program (maintained in the OTI Database) provides extensive reporting of the conduct of the program, adjustments made, and success stories. Internal reporting and documentation of program activities and outputs is thorough, extensive and timely. Reports of nine Quarterly Strategy Review Sessions and two Program Performance Reviews chronicle rolling assessments, critical events and ac¬tion items which tell the story of the flexible, dynamic, and responsive program which exemplified OTI Operating Principles and conducted an efficient, well-managed and creative program in Nepal.
