Mon, Jan 30, 2006 - Page 6 News List

Expats become Nepal's biggest money spinner

REMITTANCE ECONOMY The money sent back to Nepal by people who fled the Maoist revolt plays a vital role in keeping the country going, experts say

AFP , KATHMANDU

Furthermore, after the king's takeover, some international donors and lenders curtailed aid. The World Bank suspended a US$70 million credit to Nepal, saying it would need to see how the government implemented development spending and economic reforms.

Development spending, a large part of which comes from donor aid, has fallen by one-third since 2001.

"In the case of government-to-government assistance, when local government is dysfunctional, it's difficult to get the money to the community," said Minty Pande, country director of the development organization Plan, which like other international NGOs with local networks has continued its projects.

"Now is not the time to leave Nepal. Now is the time to give assistance, but give it as directly as possible," Pande said.

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