A memorable 63-year journey and the way forward

Devendra Gautam and Ramkala Khadka of Annapurna Media Network caught up with Katie Donohoe, mission director at the USAID in Nepal, to discuss different facets of the agency’s 63-year-long partnership in Nepal and plans for the future. Excerpts from the interview:

First of all, what inspired you to this journey, this career path?

I think there are two ways to answer that question: my work at USAID, and what inspired me to come to Nepal. I’ve always been interested in seeing the world. And I’ve always been interested in working with others and serving others. USAID allows me to do both. I get to work in partnership with people around the world to help them in different areas and provide assistance on behalf of the US government. And then I get to see the world. I actually started as a Peace Corps volunteer, as a teacher in Madagascar a long time ago. And that really made me want to keep doing this type of work. I’ve also worked in Zambia, Pakistan, Egypt, Nigeria, and now here in Nepal. And what brought me to Nepal is when I was thinking about my next assignment, I was really interested in working in a country with an amazing cultural diversity, a country that’s really changing quickly. So I’m fond of saying Nepal is changing, and USAID needs to change with it.

We’re really thinking about how we work and listen to Nepalis to tailor our portfolio along that development journey. And that’s what brought me here. I’ve been doing this work for about 20 years, and I think it’s shaping up to be my favorite job. 

And how has your experience been so far here in Nepal? 

Wonderful, really great. I had never been to Nepal before. I had certainly read about it and heard about it, but in Nepal, we’ve just been so warmly welcomed. I’m here with my family. I have lots of khadas everywhere in my house.

I’ve gotten to travel in Nepal. I’ve been to Janakpur and Sudurpaschim, Karnali, Pokhara, and then of course around Kathmandu. And it’s just been really a warm welcome, and as fascinating as I thought it would be.

The USAID has been in Nepal for the last seven decades or so?

Sixty-three years. 

What is the guiding philosophy driving the agency in Nepal?

Sure, that’s a great question. Our guiding philosophy is partnership, working together, listening to Nepalis, to determine the needs of the people, and then how we can bring our resources and other expertise to walk along that journey together. So in these 63 years, USAID has had some really remarkable accomplishments in Nepal with Nepali people. We helped pave the first roads here. We helped fund the first telephone exchange. We helped eradicate malaria.

I’m really proud, particularly of our work with women and children. Child mortality in Nepal has gone down 60 percent over the course of two decades. And that’s really remarkable. And we’re lucky to be on that journey.

To go back to your original question, I think those are the guiding principles of partnership. And then we really are focusing on thinking about federalism and how to implement federalism and implement the Nepali constitution by making sure, as Nepal develops, that everyone is included in that journey.

And then resilience. Of course, Nepal is, as we just felt recently, subject to shocks, different environmental shocks. So we do a lot of work thinking about resilience and how to help prepare Nepali people for those shocks so that, hopefully, everyone’s prepared for the next challenge.

What are the main strategic priorities of USAID missions in Nepal over the next few years, and how does it ensure that its projects align with Nepal’s national priorities, Nepal’s government’s priorities.

That’s where we start from: the priorities of the government of Nepal. We don’t ever want to do anything that doesn’t align with the needs of Nepal. So I mentioned those three overarching priorities, which are federalism, inclusion and resilience. And then we also think about working in different areas. So we work in education, which means helping teachers and children. We work in health, which is largely focused on mothers and children. We work on economic growth, which is a lot working with farmers and agriculture, but also working with small entrepreneurs. I’ve met some really great Nepali entrepreneurs. And then also thinking about democratic governance. We support the policymakers at every level of the Nepali government to implement democracy here in Nepal.

One of the foremost challenges for Nepal is dealing with disasters. Recently a quake epicentered in Tibet shook parts of Nepal (eastern Nepal) that showed how ill-prepared we are when it comes to dealing with disasters. This quake comes barely a year after the Jajarkot quake that left behind a trail of death, devastation and displacement. How is the USAID helping Nepal strengthen the institutional capacity in dealing with such disasters?

Sure. There are two ways we’re doing that. One is we’re working with the national institutions that think about disaster risk reduction, doing capacity building, planning to help everyone be prepared. And then we’re also working at the provincial and municipal level.

So for example, when I went to Sudurpaschim, we met with the municipal government and we saw their storeroom of emergency supplies. We have been supporting them to develop a plan to respond to disasters. So we think a lot about preparedness and helping people manage and be ready for a disaster when it strikes. And then of course there are earthquakes and landslides here, so we also have a humanitarian assistance program and a relief and recovery program. For example, in Jajarkot we’re helping build temporary learning centers. We just announced an assistance program of five million dollars that will build classrooms so that children can get back in school. This is an important part of our portfolio because it’s important to the government of Nepal and important to us as well.

As you said, USAID has been serving Nepal for 63 years. How does it measure the impact of its program in Nepal? Are there any notable success stories that you can share?

Monitoring data and accountability are really important to us. We want to make good investments that serve the people of Nepal. So I mentioned a few of the successes earlier but I’ll go back. One is the reduction in child mortality, which has gone down by 60 percent. So that’s a statistic that we track really closely.

Also a huge reduction in malaria. Those are really important. We also think about the number of people we serve. In 2023 alone, we served one million Nepali women, which is a number I love. So we’ve touched them in one way or another because they’re entrepreneurs, because they went to a health clinic that we serve, because they’re teachers and they received support in another way, because they’re community leaders or mayors or deputy mayors and received training or journalists of course, so that’s it. So we look, we try and really think about this data and gather data and that helps us understand what we’ve achieved and how else we can, what else we can achieve.

What also comes to mind is the USAID motto: From the American people. What percentage of USAID assistance, which is the taxpayers’ money, is going to the grassroots? There is this complaint that most of the international development assistance in Nepal actually goes down to paying the consultants, politically influential people and the intermediaries…..

Sure, that’s a great question. I’ll answer it in two ways. First, one of the other reasons I wanted to come to Nepal is that we’re really thinking about locally-led development here. I would say USAID Nepal is really on the cutting edge of getting funding directly to the grassroots, directly to people. So here, we fund Nepali organizations directly. These are civil society and other organizations that are serving Nepalis.

And that funding isn’t going through consultants or international NGOs. It’s going to Nepalis.

The second thing we do that I think is a sign of the deep and long partnership we have with the government of Nepal. In addition to working with CSOs, we fund the government of Nepal directly, which we don’t do in many countries, but we can do it here because we have such trust and accountability.

For example, we fund the Ministry of Health directly, we fund the Ministry of Education directly, and then that money is going straight to schools. That’s how we’re doing things, but then we also go out and visit communities.

Like when I’m in Sudurpaschim, I ask them: What money did you receive? How did you receive it and how did it work? So me and all of my colleagues are constantly doing monitoring.

And then the last thing I would say and it’s really important: We mostly hire and work with Nepali people.

At USAID, most of my staff, most of my colleagues are Nepali people. Most of the development organizations that we work with have entirely Nepali staff. So it’s touching people in that way. The second part of your question is kind of getting at accountability, right? We do a lot of auditing. We actually work with the Auditor General of Nepal, where we do a lot of independent auditing and monitoring, I feel really confident in the systems that we have and that’s what allows us to work so broadly in Nepal because we track really closely our financial systems, our data, we’re always asking for more information and that allows us to work here with confidence.

So how do you ensure that your programs are sustainable and continue to benefit local communities after the funding is stopped?

These are the questions I ask the team. So the first thing is we have to start by listening to Nepalis. And so if we design a program that, you know, I made up in my head in my office, it’s not going to be sustainable because it won’t meet the needs of the people. So we start with the design, and that helps it become more sustainable.

The second thing is it’s not always our funding. So we ask for cost sharing. We say, especially with the private sector or with the government in Nepal, we’ll put in 80 percent, you put in 20 percent. That makes it sustainable over time.

And then good programs last. Recently, I went to Janakpur and saw a program in a municipality that was providing small, small grants to local families, largely Muslim families. And the government, the municipality had used their own budget to continue that program after our funding ended using the capacity developed together to follow up with the families and monitor and provide different inputs.

So the program continued after we left. That’s the way we think about sustainability. But you have to think about it from the beginning or else the program ends, and you think, oh no, this is going to go away when we go away.

You were with the National War College, right?

I was.

How can you help this ill-prepared country fight multiple challenges like poverty, climate change, the shocks associated with climate change, and things like that with your war college background?

That’s an interesting question. So I actually was at the National War College.

I had a Nepali colleague when I was there. There are a number of senior Nepali military officers who studied at the National War College. That really helped me think about strategic development and strategic thinking and that was a lot of what I got out of that year. And so  the biggest lesson I learned there is to remind myself that you need a broad coalition of people to work with you across the governments of Nepal, the people of Nepal to make sure that your work is effective and strategic. As you said, we are investing taxpayer dollars from the American people and so we want to make sure it’s what Nepal wants and that it’s a strategic investment as we move forward and as Nepal develops.

Safa Tempo, Nepal’s first ever electric vehicle, was launched in Nepal with US assistance as part of efforts toward reducing Nepal’s reliance on gas-guzzling vehicles. Import of petroleum products is one of the major factors behind Nepal’s yawning trade deficit as it escalates the cost of running the economy. Is the US government working with Nepal to decrease reliance on diesel and petrol so that the national economy becomes profitable and sustainable in the long run?

We are working with Nepal for sustainable, broad-based economic growth. This includes economic electric vehicles and what we call the business-enabling environment.  

What are the policies that need to be in place so that Nepal develops? 

Nepal’s development has really improved over time in terms of human capital and social indicators vis-a-vis education and health, but the country still needs more economic growth so that people’s incomes rise and the growth becomes sustainable in the long term. We want that growth to be green for environmental reasons. Of course, clean energy is one area that we think about, we look at small entrepreneurs and other things. We’ve done a lot of work on energy, in electric vehicles also, but more in energy transmission. For the first time, Nepal is now a net exporter of energy to India. With USAID’s help, Nepal has completed a great deal of  regulatory work in the field of hydropower that has enabled it to export clean renewable energy to its neighbors. 

Through our partners at USAID Urja Nepal, we are working to develop a clean electricity market in Nepal by enabling households to use clean electricity instead of wood for cooking, working with the government on policies that make it easier for families to choose electric vehicles and helping the private sector clean energy producers sell energy to the Nepal Electricity Authority.

With our partners USAID Urja Nepal we established 23 electric vehicle fast charging stations.

There probably was one study, among several other similar studies, that found the consumption of a unit of green energy brings a return of 86 cents to a national economy. But here we are, exporting the green energy at dirt-cheap rates. Does the US have plans to increase Nepal’s capacity to utilize the domestically-generated green energy to the maximum possible extent instead of exporting it at cheap rates so that the economy becomes profitable and sustainable in the long run?

I cannot talk about the rates but would love to view the study. Going back to the beginning, we want to support Nepal in areas that Nepal and the Nepalis want to develop.

We help train Nepal government officials regarding green energy and other forms of energy. We are ready to help Nepal with policymaking and capacity-building. We are ready to help multilateral, bilateral exchanges that need to happen by working with our colleagues in India. Nepal can ask for help with regard to regulatory changes vis-a-vis the energy exchange.

Do you have any specific programs to support local governance and decentralization?

We have a few and the one I would point to is called public financial management. This program is really helping municipal government officials have a budget, a transparent budget. Using that tool, they (local governments) manage the budget they get from the federal government through the public sector in a transparent manner, making sure that it gets straight to the Nepali people. We also have programs that look at trafficking in persons and help the government of Nepal to stop it,  make sure that communities are prepared to help survivors and become more resilient against trafficking. We also think about civil society and media where we do some training of journalists and civil society to help them produce stories in this space. So in all of our work, but particularly in democracy and governance, we try and think about all the different players in this space: the government, NGOs, the media, all the things that you need to be vibrant in a healthy democracy. 

​​​​​​The first Agricultural University in Nepal was probably established with US assistance. But these days the entire corn belt of Nepal is going to the dogs, going to the monkeys rather. Any plan to revive Nepal’s farming sector?

Agriculture is, as you’ve noted, an area of our longstanding interest and expertise. We have a number of large agriculture programs, and then also ones that support specific, small entrepreneurs. We think about agriculture inputs, we think about fertilizer, we think about how to have people work the land and understand the land they’re on. For example, we funded something called the soil map, so people know what kind of soil they’re working on, which is the first of its kind, and I had certainly never seen one. We are thinking a lot about how to make individual farmers more productive, how to make this system work together, about regulations you need for import and export. And then there’s some individual businesses that we support, we support a poultry farm, for example, to help them market. We support tea so we can help market Nepali tea. So it’s not just going to Darjeeling, but it’s coming out of Nepal.

USAID focuses efforts into keeping agriculture money here in Nepal by helping to set up processing facilities for raw products. In November we launched a spice processing facility that will employ 55 people and produce more than 30 spice products, increasing their value over just exporting raw spices to be processed elsewhere.

So we think a lot about agriculture. There’s a lot of potential there for economic growth in Nepal.      

Something about Feed the Future. Can you just enlighten us about it?

That was all Feed the Future, I should have said that at the beginning. All of our agriculture programs are under what we call Feed the Future. And that’s exactly the idea. I’ve always liked the name of that program, that we need to improve agriculture to feed the future. And that’s literally feeding, well, sort of literally in terms of food growth, but also it’s a huge driver of economic growth. And Nepal does need to start exporting, of course, in agriculture, not just moving from subsistence agriculture, but in terms of more sales, because that will help with economic growth. A lot of potential there.

 

​​​​​Adding to this question, how do you see it integrate with food security in Nepal?

We think about it in everything we do, one making sure that we’re being inclusive. So we’re thinking through all the different groups of farmers. Of course, there’s a lot of women farmers, people that are marginalized. So thinking through food security, thinking through seasonal means and different agricultural inputs, and that is, I would say, at the base of what we do. And then beyond that, thinking about how food can be taken to market and sold. Of course, that’s a different type of security, but it provides income and then it is ultimately exported.

Does this program also involve preservation of indigenous crops? A lot of indigenous crops are disappearing due to climate change and that’s a huge loss to entire humanity…..

I know that we work to preserve crops that are native to Nepal, and we work really hard to make sure we’re inclusive and working with indigenous groups, working with women, working with marginalized communities. As part of that work, we would work with indigenous crops. I don’t know that we have specific programs focusing on indigenous crops, but we make sure that we’re being inclusive of everyone in all of our programming. That’s really a central tenet of the work that we do.

As part of that effort, the US Embassy organized an “Indigenous Women Leaders in Climate” panel discussion at the embassy in August 2024.

The event brought together women leaders from various organizations to share their expertise and experiences in promoting indigenous-led research and education.

The panel discussion focused on how climate change affects vulnerable communities, leading to significant consequences like migration and the emergence of ghost towns. They also discussed how intergenerational knowledge plays a crucial role in adapting to these changes and preserving cultural heritage.

Before I arrived, in September 2023, Kyle Whyte, a US Science Envoy and one of America’s foremost experts on indigenous knowledge and climate justice visited Nepal. He led the International Conference and Workshop on Indigenous-Led Research and Education in Nepal with the focus of promoting discourse and understanding of indigenous-led research and education and its important role in conservation and strengthening climate resilience. So the US Government is doing a lot across the board to promote inclusivity on multiple fronts.

How can the US help Nepal, a country with minimal carbon footprint, cope with shocks associated with climate change? 

So there are a few things to think about on this front.  One is, you know, disaster reduction and risk management. So thinking through if there are shocks, how do we manage them? Another thing is, when we’re thinking about agricultural inputs, everything that we do, we want it to be as climate resistant as possible, so you’re not focusing just on one crop and then having other negative impacts. Those are the two big ways, and then helping people prepare individually for climate shocks and prepare for disaster. You know, any disasters that may come.

What are the initiatives that you are taking for the economic empowerment of youth, women and marginalized groups, especially in rural areas? 

The first thing we do is make sure that those groups are included. You could go to an area and just talk to the kind of leaders of an area, or the elite folks, and leave behind the youth and the women in the marginalized group. So we start from the beginning by making sure they’re included in any programming. If we look at the data, we see where poverty rates are highest, where literacy rates are highest, where you have lower economic growth, where you have kids who are out of school, where you have higher mortality rates, and those tend to also be marginalized groups, and so working, working with them. And so it’s a program of inclusion, always and always, making sure we’re talking to, listening to everyone while designing programs. 

Do you have some specific training and job opportunities for those groups?

We tend to try and offer our training opportunities to everyone, including kids at risk. And maybe a good example is a great adolescent and reproductive health program that focuses on young women who are at risk of dropping out of school and marrying early. We have specific training to get them back to school in a safe environment and then support them in other ways. We also have a program to try and help people understand the benefits of delaying marriage. The program is targeted at girls, particularly those at risk of marrying early or dropping out of school early. So it’s dependent on the needs of the community and each area in which we’re working.

What specific intervention has the US yet implemented to accomplish educational goals in Nepal, including access to quality education?

I love that question, because I used to be a teacher.

I was a teacher when I was a Peace Corps volunteer in Madagascar. Girls’ access to education is so important for them, but also for equality and for the future of Nepal. So let me mention a few. One is this. You know, when girls reach puberty, sometimes they tend to drop out of school, so figuring out ways in which they can come back to school. So we’ve set up these separate classrooms within schools to help them come back. So if they are behind a bit, they need to catch up. They can. They can work in those classrooms. Another one is reducing child and early marriage, which, of course, has a tendency to bring girls out of school. And then we have a whole program focused on equity and inclusion, equity and inclusion that specifically looks at the municipal level and how we can make sure that kids are in school. Some of that is making sure that schools have resources, so that we give block grants to the districts and the schools to make sure that there’s enough space, because sometimes kids don’t go to school because there are no books at school, or there are no teachers. So thinking through that, and then a lot of community level work with parents and teachers to make sure that kids are coming to school. Nepal has a pretty high enrollment rate. Lots of kids go to school, but learning outcomes need to catch up. We don’t want just kids in school, we want them to be learning.

Do you see any possibility of tectonic shifts in policies once a new administration takes over in the United States?

We’re in the last weeks of our current administration. There have been 12 presidential administrations since USAID was formed in 1961 and this will be my fifth transition working at USAID. It’s really a hallmark of American democracy, this peaceful transition of power…. I think new administrations always have new policy priorities, but at its core, the work of USAID has stayed the same over these past 12 administrations, and so I think that core will stay the same, and I’m sure there will be different priorities, and we’ll work with the new administration, with the government of Nepal and the Nepali people to figure out how those best align here.