Foreign aid resources must complement, Finance Minister says

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Finance Minister Dr Yuba Raj Khatiwada has stressed that foreign aid resources must complement, rather than crowd out, domestic resources mobilization. Inaugurating the annual meeting of the International Aid Transparency Initiative’s (IATI) Technical Advisory Group (TAG) in the capital city on Tuesday, he said that the ultimate objective of any aid programme should be to build domestic resource capacity so that recipient countries can reduce their dependency on aid.

Minister Khatiwada also spoke about the importance of improving the transparency of aid resources, noting that transparency was the basis for accountability, which in turn ensures that development cooperation resources are better managed for results. “Development cooperation must support efforts to avoid conflict, protect harmonious social fabric, build peace, and improve global governance”, he stated.

With reference to the Sustainable Development Goals, he asked the audience to consider whether there should be a specific indicator in SDG 17 focusing on ensuring aid transparency.

While appreciating the role of global aid transparency initiatives such as IATI, the Minister also recognized the enabling role that partner countries such as Nepal must play, including in the design of credible programs, strategies and policies which allow for cooperation resources to produce intended results. In order for data to be put to good use, there must be robust systems in place at country level, including for planning, monitoring and public financial management, he said.

More than 150 representatives of the governments from different countries, development partners, civil society organization and the media are participating in the three-day meeting, according to the Ministry of Finance. The meeting has been conducted for the first time in Asia in the history of the organization.

Started in 2008, IATI is a global, multi-stakeholder initiative that seeks to improve the transparency of development and humanitarian resources for addressing poverty and crisis.