The SDGs differ fundamentally from the earlier MDGs, in ways that offer both opportunity and complexity for countries including Nepal. Dr. Khatiwada shares insights on this, as well as on the challenges of estimating the costs of the SDGs and identifying financial resources from a range of sources.

If we look at the development around the world that flourished in the 1990’s, it brought economic growth while also giving rise to inequality. Social indicators could not keep up with the pace of the economic growth. The Millennium Development Goals (MDGs) emphasized social indicators and included issues like education, health, poverty, drinking water and environment were included in the MDGs. However, with only achievements on social indicators no holistic development was possible, and more areas were recognized as important when entering the agenda of the Sustainable Development Goals (SDGs). Hence issues like economic growth, overall human development, our inhabited land and its environmental improvement, ending inequality, and building infrastructure were included in the SDGs. The SDGs also take into account the outcomes achieved from the MDGs, to accomplish better results. In general, the MDGs were successful but we also see their development outcomes limited to certain areas. For example, a lack of road and bridge infrastructure where schools and health posts have been built or lack of maintenance in an already existing drinking water project. The SDGs have to take economic growth, infrastructure development and social development together.

The MDGs essentially prioritized the issue of social development to help overcome poverty alleviation. At that time, overall economic growth together with the need to change the framework of employment and equality for economic growth was not discussed. During the era of the MDGs, there was an increase in inequality within a nation and amongst nations which was a major issue to be addressed.  I myself raised this agenda in various international forums concerning sustainable development, which also helped point out the factors responsible for inequality.

Issues related to climate change were not strongly discussed during the MDGs years, but required urgent attention. Also, after the international financial crisis of 2007-2008, issues of financial good governance were brought forward. Although many nations were out of extreme poverty, it was felt that there were not significant changes in their living standards and they could not rise above their existing conditions. Only minimum needs of people were fulfilled, while human poverty still existed. Now, the SDGs envision alleviation to all kinds of poverty, which then leads to prosperity. 

Our nation’s first priority is to end absolute poverty in the next five years. The SDGs also focus on ending extreme poverty and cutting all kinds of poverty in half, which echoes our agenda as well. As we are an agriculture-based economy, we are strongly emphasizing agriculture to address problems like poverty, unemployment, and malnutrition among others, which revolve around it.  Agriculture has always been our priority, but now it requires modification to be professional, modern and sustainable, to yield comparative benefits.  Similarly, we also require a colossal change in education and health. We need skilled manpower with knowledge and expertise to bring about economic growth and development. The SDGs also incorporate education, health, skills development and gender equality, which is equally important to us.

While some understand the SDGs merely as an agenda of the United Nations, we have endorsed it formally and signed it at the UN headquarters in New York and are committed to attain these objectives. Nepal also took part in various meetings and discussions to formulate the SDGs, together with holding various discussions at the national level. Our agenda became an international agenda for everyone, with the coordination carried out by the United Nations. It is not right to have UN agencies constantly remind us to take ownership. Since this is our agenda it’s our duty to implement it and also to take ownership of the achieved outcomes.

Local and provincial governments play a very important role in achieving the SDGs. For example, we cannot just consider the average when it comes to eradicating absolute poverty. On average, although extreme poverty is 21 percent in the country, many areas still have extreme poverty of 70 percent. So it is very important to identify those areas and formulate targeted projects to address them. If we take a top-down policy approach, it will take a long time to achieve this goal. However, the local level can easily identify areas and work can be carried out to alleviate poverty and similarly other areas including health, sanitation, drinking water and literacy among others could benefit from a similar approach. While the central government provides financial support, the implementation has to be done by the local authorities. Hence, the local level has to work more around issues relating to sustainable development, while the support from the provincial and federal government is an absolute necessity.

The other side of the coin is to acquire skills and knowledge to accomplish the SDGs. There is also the financial and technical side to this, for which we have made many attempts to implement from the budget system. There are also misconceptions that the SDG agenda has to be treated as a separate project with its own financial system and program, while the need is to incorporate sustainable development in the national plan and budget system together with integrating both provincial and local levels and their resources. There might be a problem if we move forward focusing on the project rather than on the program itself.

While formulating their periodic plans the local level should consider the SDGs in the background, on the basis of set national milestones for 2022, 2025 and 2030, and deal with the fundamental development required to prepare the strategies. On the basis of this, the budget should be formulated and implemented after the required economic sources and resources are estimated. After assessing our own sources, we should estimate the expectation we seek from the United Nations, which will then move forward with its international support. Therefore, the starting point for the implementation of SDGs should begin from ward level where the plans and processes should be discussed, debated and programs should be selected. Taking a bottom-up approach these plans should be systematized and be included in the periodic plans of the local level to be implemented in a disciplined manner. The United Nations should support the endeavor and provide the required technical assistance.

We require huge financial resources to implement the SDGs. Even if we commit our entire annual budget to this, it will not be sufficient. Right now the federal government has over a Rs. 1.3 trillion budget. Even if we add up the tax revenue from both the provincial and local level, it will be limited to Rs. 1.6 trillion. On the contrary, we need an annual average of Rs. 2 trillion. Also, we cannot channel the entire budget to the SDGs as the state has other important duties carry out which might involve state security and also various constitutional duties. These legal duties also require an additional Rs. 100-200 billion annually. Hence, to fully implement the SDGs, an annual budget of Rs. 2.2 trillion is required. And to just gather sources to initiate the SDGs, an additional Rs. 300-400 billion is necessary.

Since timeframe of 2030 is set, we cannot add the costs involved and move forward. While the entire budget will not be set aside for this agenda, we commit that a big portion of our investment will be dedicated to the SDGs. And for this we require additional resources in the form of foreign assistance, which is an estimated Rs. 500 billion annually.

At the moment, the widened tax net is estimated to generate revenue of Rs. 945 billion. Tax collection has now been authorized at the local level, which raises its revenue. Looking at the budget system, we don’t have internal resources over Rs. 1.1-1.2 trillion. Along with the foreign assistance, it is also important to attract foreign investment. If we could bring in Rs. 100 billion in external investments annually, we would not be forced to rely on foreign assistance. It is also important to involve private sector and their resources for sustainable development, as their participation is very necessary to implement SDG 9 and SDG 11.

Both the government and private sector should invest in infrastructure development and for this we have to create a favorable environment. Legal reforms have to be made in order to safeguard investments by ensuring foreign currency exchange. We have to develop a source to earn foreign currency, which will help us take back the investment income with mediums like product or service businesses. Along with this, SDG 17 encourages technology transfer, and promotes technology for low-income nations and privileges to be obtained by under developed nations. It is also the responsibility of donor countries to facilitate the private sector promoting investments, supporting its operations and loan processes altogether. Failing to do these duties will result in bad financial management. A discussion should be carried out on this issue, while we have to encourage investments, loans and increase the capacity to pay in foreign currency.

The most ambitious aspect in implementation of the SDGs is gathering resources, while also trying to find additional resources. During the MDGs, the commitment for foreign assistance was not fulfilled as planned for development assistance given to low-income countries which was at 0.95 percent of the GDP. Even now we have not moved forward with any outcome concerning the coordination of international financial support, which could be assistance, investment or technology transfer. Multilateral organizations like the Asian Development Bank and the World Bank have not discussed the implementation of the SDGs. We have to develop capacity to manage the assistance as we have always been blamed for failing to do so. For capacity building, technical assistance programs have to be provided as grants on minimum terms. But in various circumstances taking loans may be more favorable than seeking grants. However, concerning global issues like climate change, we cannot afford to take loans to seek solutions. The international community has to be responsible concerning these issues as we are not the major player in this context. However, we have to solve issues concerning the unnecessary exploitation of nature and exploitation of our resources. We will require assistance to address these issues, because this is also our right. But, if we want agricultural reforms, we will seek loans for it.

Similarly, technological development has been tremendous and in the hands of powerful nations. We do not possess the capacity to buy these modern technologies. So we will request aid assistance for these too. We also have some rights to do so as our workforce employed elsewhere is contributing to the economic development of that country. So we can always seek fragments of that development as a part of aid and assistance. In the first and second World Wars Nepalese bravely fought and acquired a reputation for bravery. Many of these countries still remember Nepalese people although we were part of their army fighting for their country. We are also seeking similar concern from the countries where Nepalese are migrant workers.

We are also very close to achieving success in a few proposed SDGs with our own budget. Among these we plan to end extreme poverty in five years and illiteracy in two years. Similarly, in education, we plan to ensure one hundred percent school admissions by next year. Also, we plan basic drinking water for everyone and modernization of new energy both in the next three years. But so many things are still beyond our control, such as that we cannot eradicate malnutrition immediately and cannot completely eliminate infant mortality and maternal mortality.

It is very important to receive international support for goals that are very challenging. Issues involving environmental degradation, tackling the world economic crisis and inter-economic and social issues require international assistance. While we always say we plan to give social security to our workers, we have not been able to give it to millions of people residing outside the country. We also have our shared responsibilities and we need to initiate ways to fulfill them. Good governance always takes time and zero tolerance on corruption has been our agenda. We are advocating development based on social justice. We need effective partnerships and coordination with stakeholders from various fields to promote peace and justice for development.

(As told to Development Advocate)

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