The Government of Nepal and the International Labour Organization (ILO) - Local Economic Development Programme for Dhanusha and Ramechhap Districts

The Government of Nepal and the International Labour Organization (ILO) signed the implementation agreement in Kathmandu today for the “Employment for Peace Building through Local Economic Development” (EmPLED) project. Building on the ILO’s 40-year history in Nepal, the three-year intervention funded by the Netherlands Government targets employment creation in Dhanusha and Ramechhap Districts.

Primary target beneficiaries include youth, women and disadvantaged and marginalized groups. The Government and ILO see the creation of new and improved decent work opportunities as crucial for peace building in post-conflict Nepal. EmPLED is a product of the Government’s and the ILO’s commitment to sustained recovery and development in Nepal through the Decent Work Decade for Asia 2006-15.

Driven by stakeholder-owned local economic development (LED) forums and strategies, the US$3 million (NRs.194.7 million) project will be launched in the two Districts under the guidance of a national stakeholders’ steering committee. This committee has broad-based representation including the National Planning Commission, (NPC), Ministry of Local Development (MoLD), Department of Local Infrastructure Development and Agricultural Roads (DoLIDAR), trade unions, employers, Council for Technical Education and Vocational Training (CTEVT) and others.

The LED umbrella offers stakeholders several dynamic components for employment creation. The employment intensive investment projects (EIIP) component has a multiplier impact. In addition to creating immediate jobs, EIIP injects cash into reviving local economies, creates quality assets and services for economic recovery and development, improves household access to essential basic services, and provides cash for investment in livelihood and micro-enterprise activities.

Long-term employment creation through economic growth is addressed by the LED component for improving the competitiveness of local firms, both formal and informal. Strategies may responsively include supporting and promoting local firms with a strong emphasis on innovation in primary sectors such as agriculture, forestry and tourism. Other strategies available for economic growth include investment promotion and creating an enabling environment for investment and entrepreneurship. At the micro and small enterprise levels, the project will compliment and build upon the achievements and approaches of UNDP’s Micro Enterprise Development Programme. Enabling and facilitating local business, technical and financial service providers is expected to form a key strategy for implementation of this and other EmPLED components.

Focusing on skills for employment, the skills development component will compliment the project’s EIIP component. Local communities, organizations private contractors, engineering, professionals and local works authorities will benefit from a range of technical skills in works, labour-based technologies and community contracting. The project will otherwise focus on developing local service provider capacities to deliver a range of demand-driven training services and products to primary target beneficiaries. The project will also liaise closely with CTEVT and other relevant national training institutions/bodies to improve the national and local linkage and coordination in skills training. EmPLED will also explore the identification and demonstration of appropriate social protection schemes for needy households.

In addition to employment creation, Shengjie Li, ILO’S Country Director, foresees other significant benefits of EmPLED for the Nepali people. Li is confident that Local Economic Development can greatly enhance the decentralized planning and budgeting process at the District and VDC territory levels. This will enable Nepali capacities to programme increased donor funding support through government financing mechanisms. In the same context and that of UN reform, Li also sees a wonderful opportunity for vibrant UN-Agency and other partner collaboration under the LED umbrella that can compliment the government’s decentralized funding for needy local areas.

For further information please contact:

Mr Shengjie Li, Director
ILO Office in Nepal
Tel: +977 1 5555777, 5551082
Email