Partnership and Community-Based Development

Background

Globalization and information technology have transformed the concepts of partnership and community-based development. To address large-scale infrastructure development, public service delivery, and challenges posed by natural and human-induced events, collaboration, coordination, and networking with the private sector, civil society, international organizations, and other stakeholders are essential. This belief has given rise to the partnership development model. Collaborative efforts involving non-governmental actors in state activities ensure sustainable, reliable, cost-effective, and citizen-centric development that aligns with the interests, needs, and priorities of beneficiary groups, making partnership indispensable for citizen-focused development.

Concept of Partnership Development

Partnership development is a modern concept aimed at ensuring high-quality, sustainable public services and improving service delivery systems through meaningful participation of public and private sector partners. Key milestones include:

The 1980s introduced the concept of New Public Management.
Since the 1990s, good governance and decentralization have created opportunities for partnership in development.
In 1992, David Osborne and Ted Gaebler’s book Reinventing Government promoted privatization of public institutions, alternative service delivery systems, and management contracts to foster partnerships.
The United Nations’ Millennium Development Goals (2000) embraced global partnerships.
The Sustainable Development Goals (SDGs) emphasize global partnerships.
Partnership development is a win-win collaboration between the government, local bodies, and the private sector in a legitimate and transparent environment, involving the community’s presence or participation.

Meaning and Definition of Partnership Development

A results-oriented and achievement-driven development achieved through the integration of capital, technology, experience, and expertise from state and non-state actors.
Development that integrates collective participation, ownership, accountability, equality, and empowerment at all stages by combining the expertise, specialization, and resources of partner entities.
An arrangement where government, private sector organizations, community groups, and individuals jointly provide services, sharing risks and benefits.
A strategy to transform the government’s role into a regulator, encourage private investment, enhance the private sector’s social reputation and business opportunities, ensure reasonable profits, and fulfill citizens’ needs by improving access.

Basis and Prerequisites of Partnership Development

State initiative, private sector investment, and civil society’s recognition of needs.
Mutual interdependence and collaboration among partners.
Ensuring financial frugality, sustainability, and effectiveness in public sector service delivery.
Quality service from the public sector, social responsibility and reasonable profits for the private sector, and benefits for consumers.
Appropriate risk-sharing and returns based on the level of risk.
An environment for dialogue to resolve mutual issues.

Methods of Partnership Development

Various models of partnership development are practiced, as outlined in Section 17 of Nepal’s Public-Private Partnership and Investment Act, 2075 BS:

Build & Transfer (BT): Infrastructure or facilities are constructed by non-state actors and transferred to the government after a specified period.
Build, Operate & Transfer (BOT): Non-state actors construct, operate for a specified period, earn profits, and transfer ownership to the government.
Build, Own, Operate, Transfer (BOOT): The private sector constructs, owns, operates, earns profits, and transfers ownership to the government after recovering investments.
Build, Transfer & Operate (BTO): The private sector constructs and transfers to the government immediately but operates and earns profits for a specified period.
Lease, Operate & Transfer (LOT): Leasing, operating, and transferring assets to the government.
Lease, Build, Operate, Transfer (LBOT): The private sector leases land, constructs infrastructure, operates, earns profits, and transfers ownership to the government.
Develop, Operate & Transfer (DOT): The private sector develops, improves, or modernizes state assets, operates them, and transfers them to the government after recovering investments.
Manage, Operate & Transfer (MOT): The private sector manages and operates state assets for a specified period before transferring them back.
Restoration, Operate & Transfer (ROT): Restoring and operating state assets before transferring them back.
Other similar methods.

Additional methods include:

Management Contract: The state delegates full or partial operational and management responsibilities to non-state actors.
Service Contract: Specific services within the state’s responsibility are outsourced to private organizations or individuals for a service fee.

Need, Importance, and Objectives of Partnership Development

Enhance state ownership by aligning citizens’ needs with efficient private sector management and capital utilization.
Address shortages in capital, managerial capacity, creativity, and technology within the state.
Achieve result-oriented outcomes through meaningful participation of state and non-state actors.
Promote maximum participation of non-state actors to make the government transparent, accountable, and responsible.
Minimize risks by utilizing resources and comparative advantages of each sector.
Maximize returns with limited resources.
Provide citizens with simple, accessible, choice-based, competitive, quick, efficient, high-quality, and interest-driven goods and services.

Status of Partnership Development in Nepal

Traditional practices like “Parma” (labor exchange) in Nepali society exemplify partnership for sustenance.
Modern partnerships between the state, non-state actors, and civil society aim for equitable benefit distribution through high returns on investment.
Economic liberalization has emphasized privatization and limiting state authority.
An investment-friendly environment is being created for partnerships.
Major plans and projects in Nepal are constructed and operated under partnership models.
Hydropower, drinking water, and irrigation projects are implemented through partnerships.
Service delivery and development activities involve collaboration with civil society, beneficiary groups, user committees, community organizations, and neighborhood development groups.

Arrangements for Partnership Development in Nepal

Constitution of Nepal: Aims for rapid economic growth through participation and development of public, private, and cooperative sectors, maximizing resource mobilization (Article 50(3)).
Promotes partnership in responsibilities, resources, and administration among federal units (Article 51(k)).
Utilizes knowledge, skills, technology, and capital of non-resident Nepalis for national development (Article 51(g)).
Relations between federal, provincial, and local levels based on coordination, cooperation, and coexistence (Article 232).
Local Government Operation Act, 2074 BS: Provisions for forming, mobilizing, and regulating neighborhood development committees and user committees.
Public-Private Partnership and Investment Act, 2075 BS, Cooperative Act, 2074 BS, Company Act, 2063 BS: Legal frameworks supporting partnership development.

Community-Based Development

Community-based development targets groups within a specific geographic area with shared interests and needs. It involves development activities led by community members with meaningful participation at all stages. It is development carried out by the community, for the community, and is rooted in the concept of collective development. It integrates diverse societies to address real community needs, opposing externally imposed or elite-driven development. It fosters social tolerance, harmony, brotherhood, and collective solidarity, strengthening community relationships.

Concept of Community-Based Development

In Nepal, community-based development began in the 1950s as rural development and has evolved into the current concept.
It aligns with the cooperative movement.
In the 1990s, the World Bank globalized the concept, emphasizing direct community participation from need identification to benefit utilization.

Principles of Community-Based Development

Utilize community assets.
Create equitable partnerships.
Foster co-learning and capacity development.
Promote public participation and mobilization.
Build public trust and legitimacy.
Ensure monitoring, feedback, and collective accountability.
Encourage community leadership and co-management.
Support participatory decision-making.
Promote interdependency.

Status of Community-Based Development in Nepal

Construction and operation of irrigation channels, embankments, and water mills through collective community efforts.
Service delivery and development activities conducted by neighborhood improvement committees, user committees, women’s groups, mothers’ groups, and other organizations.
Federal governance has made local levels a source of power mobilization, transferring responsibilities to local communities.
Management of forests, drinking water, irrigation, and canals handed over to local communities.
Community halls, hospitals, and schools operated at the community level.
Volunteer-based religious organizations, trusts, grant-based citizen participation, and service-oriented organizations are active.

Arrangements for Community-Based Development in Nepal

Community-based development emphasizes meaningful community participation to address real needs effectively and enhance ownership toward the state. Modern development principles prioritize local needs and relevance, using local labor, capital, and technology to create employment. Constitutional and legal frameworks in Nepal guide community-based development, including:

Constitution of Nepal: Commitment to building an equitable society based on proportional, inclusive, and participatory principles (Preamble).
Consumer rights (Article 44).
Promotion and mobilization of community creativity in social, cultural, and service-oriented activities, enhancing local participation and community development (Social and Cultural Transformation Policy).
Prioritizing local participation-based domestic investment in development processes (Natural Resources Conservation, Promotion, and Utilization Policy, Article 51(c)).
Engaging community, national, and international non-governmental organizations in national priorities (Social Justice and Inclusion Policy, Article 51(j)).
Local Government Operation Act, 2074 BS: Provisions for user committees and neighborhood development committees.
Public Procurement Act, 2063 BS: Allows work to be carried out by user committees or beneficiary communities.
Public Procurement Regulations, 2064 BS: Permits construction or related services up to NPR 10 million to be executed by user committees or beneficiary communities.

Differences Between Partnership Development and Community-Based Development

Aspects	Partnership Development	Community-Based Development
Definition	Results-oriented and achievement-driven development through the integration of capital, technology, and expertise of state and non-state actors.	Development targeting groups within a specific geographic area with shared interests and needs, led by community members.
Focus	Private sector expects profit-oriented returns.	Emphasizes service-oriented motives.
Centricity	Private sector-focused investment and management.	Citizen-centric approach.
Scope	Broader concept.	Limited concept.
Geographic Relevance	May not be tied to a specific geographic area.	Tied to a specific geographic area.
Objective	Promotes innovation.	Promotes community identity and cohesion.

3.8 Partnership Development and Community-Based Development