Background

Over the last 10 years, water sources in several areas in the country have been reported as progressively drying up. From Panchthar in the east to Myagdi in the west, springs in the upland have been seen drying up rapidly. When springs go dry, it is difficult to get water even the relatively small amounts needed for domestic purposes. The shortage of water has affected all aspects of life.
 
The water problem has affected food production and has forced villagers to cull most of their livestock, but while they no longer need to worry about getting water for their livestock, they are deprived of milk and meat to eat as well as compost for their farms. Water shortage has made it difficult to maintain good health and hygiene practices. There is no use constructing toilets as there is no water to clean them.

Girl students cannot go to school as they have to queue for hours to fetch a single pot of water. The number of girl students in the schools is decreasing.  Water shortages have affected social life. Parents find it problematic to get their sons married because girls refuse to get married into areas which experience a perpetual scarcity of water. Water markets have flourished in areas where local water sources have become dry altogether. In Yashok, Panchthar, for example, people pay NPR 1.5 per litre for water carried by tractors from faraway sources. The changing water scenario has resulted in the need to import both food and water. As a result, young men prefer to migrate to a city or abroad instead of living in a village.

People from Panchthar and Gulmi have coped with water shortages by moving to Terai districts. In Kavre, people with homes in the highlands have moved to lower elevations where more water is available. In fact, some migrant families from Yashok have certificates enabling them to live permanently in Jhapa and Morang. Migrants from Gulmi and Kavre, in contrast, hope to return once the water situation improves. Displaced families from Kavre do not have migration certificates because their migration (to lower-lying land in the same VDC) is largely temporary in nature.

Rationale

Floods, landslides, erosion and droughts have always been a major cause of impediment for development especially at local level where majority of the people are dependent on biomass based economy as these environmental stresses affect the ecosystem services and the production system that rely on these services. As a result, a large number of people are trapped in the vicious cycle of poverty in spite of the hard work they do. A dearth of employment and economic opportunities continue to force Nepali youth to seek foreign employment, a trend which will have consequences far into the future. Already over two million people are officially working abroad and many more are undocumented migrant workers.

Environmental stresses have significant cost and economic burden on those groups especially households headed by women, women having small children to take care of, as their coping strategy are limited with added responsibility to secure food, fuel and water.

The Government of Nepal has increasingly emphasized the need to direct its development investment towards reducing poverty and addressing environmental stresses. However, the fact is that people continue to leave villages where such stresses have increased. A study conducted in 2013 showed that drought has increasingly affected people and in the extreme cases people have begun migrating. The cost of these environmental stresses, though unknown at this stage, can be expected to increase. In order to devise appropriate policy tool to address the issues that result from drought, we need information about the economic analysis of drought that has led to displacement. This study will attempt to conduct an economic analysis of the drought impacts in the district of Panchthar.

The overall objective of this assignment is to conduct an economic analysis and costing of the impacts of drought that have led to displacement of people in the district of Panchthar. The result of this assignment is to inform the government that “displacement of people caused by drought is costing X amount to the local/national economy”. It is also expected that the results would help understand differential impact caused by drought on households headed by women, women having small children and so on.  The intention of this information is to provide strong evidence base and argument for the government to understand the full cost of drought-induced displacement and to move forward to identify and invest in solutions/measures to address the drought problem.

Duties and Responsibilities

Objectives of Assignment

The overall objective or output of this assignment is to conduct economic analysis of environmental causes of displacement. Specifically the study will attempt to; 1) conduct economic analysis of the increasing drought and its impact on production system as well as on livelihood of the people in the villages of Yashok, Ranigaun, and Syabarumba in the district of Panchthar, and 2) recommend appropriate measure(s) that needs to be adopted to address the issue. 

 Scope of work

Impacts of drought are: increased payment for water/food, cost of temporary lodging, loss of production/income from agriculture, increase in social service costs (healthcare), loss of skilled workers, cost of moving the family, etc.

To conduct economic costing of these impacts, the consultant should consider the following:
  • Review reports of environmental causes, specifically the drought, of displacement;
  • Develop clearly measureable indicators for each impact to analyse;
  • Identify tools/methodology to undertake economic and social analysis/costing;
  • Conduct desk review /stakeholder mapping on where the information can be obtained from;
  • Undertake economic analysis using the selected tools; and
  • Present key findings and identify possible solutions/measures to address drought (and/or displacement) with differential impacts on gender, women headed households, women with small children to rake care of, occupational castes.   

Expected Results / Deliverables / Final Products Expected

Report with the following details.

  • Tools, methodology and indicators used;
  • Direct losses caused by drought and their impacts on economy, livelihoods of the local people, who are dependent on natural resources for livelihoods, women, female headed households, occupational castes groups.
  • Economic analysis cost of water/food, cost of temporary lodging;
  • Loss of production/income from agriculture, increase in social service costs (healthcare).
  • Loss of skilled workers;
  • Cost of moving the family if migrated;
  • The price that local people, the poor, and women would willingly pay to continue living in the village despite the shortage of water;
  • The cost incurred by local people, different gender and social groups while coping with or adapting to the situation.
  • The cost of making water available by using technology such as pumping water from the river or diverting it from far away sources;
  • The consultant will submit one electronic copy of the study report in MS Word format to PEI/SNPMC-UNDP. PEI/SNPMC-UNDP will review/approve the outputs prior to authorizing payments.

Competencies

  • Knowledge and understanding on climate threats, climate adaptation and mitigation challenges, planning and budgeting requirements of the GoN;
  • Excellent writing, communication and presentation skills in English and Nepali;
  • Ability to write reports and make presentations in English and Nepali.
  • Proven track record of having worked in producing succinct review reports;
  • Excellent communication and interpersonal skills and team oriented work style; and
  • Having knowledge on gender and social analyses and sensitivity towards women, poor, and excluded groups.

Required Skills and Experience

Education

  • Master Degree, preferably in Economics, Education, Development and other relevant field.

Experience

  • A minimum of 10 years of professional experience in economic analysis, agriculture economics, economy survey, social analyses etc.;
  • Demonstrated solid experience on conducting economic analysis of development programme;
  • Experience in working with government, and international organization, as well as having self-motivated and ability to work with minimum supervision;
  • Previous experience in working in drought related projects.

Language

  • Proficient in English, spoken and written.