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ASIAN DEVELOPMENT BANK RETA 5948 REG COMBATING TRAFFICKING OF WOMEN AND CHILDREN IN SOUTH ASIA COUNTRY PAPER THE KINGDOM OF NEPAL July 2002 Agriteam Canada Consulting Ltd. Helen T. Thomas, Team Leader The view expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Directors or the governments they represent. ADB makes no representation concerning and does not guarantee the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented. CURRENCY EQUIVALENTS (as of May 1, 2002) Currency Unit – Nepalese Rupee Rp1.0 = .013420 $ = 81.1570 ABBREVIATIONS ADB Asian Development Bank ABC Agro-forestry, Basic health and Cooperative Nepal AIGP Additional Inspector General of Police AATWIN Alliance Against Trafficking of Women in Nepal CAC Nepal Community Action Centre-Nepal CATW Coalition Against Trafficking in Women CBO Community Based Organization CEDAW Convention on the Elimination of All Forms of -Discrimination Against Women CEDPA Centre for Development and Population Activities CELRRD Center for Legal Research and Resource Development CPN-M Communist Party of Nepal- Maoist CRC Convention on the Rights of the Child CSSAT Community Surveillance System Against Trafficking CSW Commercial Sex Worker CWIN Child Workers in Nepal-Concerned Centre DDC District Development Committee DIC Documentation and Information Centre EIA Environment Impact Assessment FWLD Forum for Women Law and Development GAATW Global Alliance Against Trafficking in Women GEFONT General Federation of Nepalese Trade Unions GTZ German Technical Cooperation HimRights Himalayan Human Rights Monitors HIV/AIDS Human Immuno Deficiency Virus/Acquired Immune Deficiency Syndrome IDPs Internally Displaced Persons IEC Information, Education, and Communication IIAG Informal International Agency Group IACG Inter-Agency Coordination Group IIDS Institute for Integrated Development Studies ILO/IPEC International Labour Organization/International Programme on the Elimination of Child Labour INGO International Non-Governmental Organization INHURED Int’l International Institute for Human Rights, Environment and Development IOM International Organization of Migration JIT Joint Initiative Against Trafficking in the New Millennium LAAC Legal Aid and Consultancy Centre MGEP Mainstreaming Gender Equity Program MLD Ministry of Local Development MWCSW Ministry of Women, Children and Social Welfare NFE Non Formal Education NGO Non-Governmental Organization NNAGT National Network Against Girls Trafficking NPA National Plan of Action O&M Operation and Maintenance ODA Official Development Assistance RETA Regional Technical Assistance SAARC South Asian Association for Regional Cooperation SAFHR South Asia Forum for Human Rights SAP Nepal South Asia Partnership Nepal STD Sexually Transmitted Disease SUP Social Uplift Program UNDP United Nations Development Program UNHCR United Nations High Commissioner for Refugees UNICEF United Nations Children’s Fund USAID United States Agency for International Development VDC Village Development Committee WOREC Women’s Rehabilitation Centre WATCH Women Acting Together for Change WACN Women Awareness Campaign-Nepal NOTE: In this report, Nre/NRS refers to Nepalese Rupee In this report, $ refers to US dollars CONTENTS I EXECUTIVE SUMMARY................................................................................................................. 1 II INTRODUCTION ............................................................................................................................. 6 A. BACKGROUND TO THE RETA.......................................................................................................... 6 B. NEPAL COUNTRY PAPER ................................................................................................................ 7 C. METHODOLOGY.............................................................................................................................. 8 III PROBLEM STATEMENT.......................................................................................................... 11 A. UNDERSTANDING TRAFFICKING..................................................................................................... 11 B. DEFINITIONS AND DEBATES .......................................................................................................... 13 C. GENDER AND HUMAN TRAFFICKING............................................................................................... 17 D. NATURE AND EXTENT OF TRAFFICKING OF WOMEN AND CHILDREN IN NEPAL .................................. 17 E. INCIDENCE AND PATTERNS OF TRAFFICKING.................................................................................. 19 IV DYNAMICS OF HUMAN TRAFFICKING.................................................................................. 29 A. MACRO / EXTERNAL FACTORS ...................................................................................................... 33 B. SUPPLY FACTORS ........................................................................................................................ 33 C. DEMAND FACTORS....................................................................................................................... 51 D. IMPACTS OF TRAFFICKING............................................................................................................. 52 V ANTI-TRAFFICKING PROGRAM STRATEGIES......................................................................... 57 A. IDENTIFICATION OF STAKEHOLDERS .............................................................................................. 57 B. ANTI-TRAFFICKING PROGRAMS..................................................................................................... 61 C. LINKS BETWEEN PROGRAMMING AND INTERNATIONAL GOVERNANCE INSTRUMENTS ........................ 79 VI INTEGRATING ANTI-TRAFFICKING ACTIVITIES INTO ADB’S OPERATIONAL STRATEGY IN NEPAL............................................................................................................................................... 85 A. RELEVANCE OF TRAFFICKING TO ADB .......................................................................................... 85 B. RECOMMENDATION ...................................................................................................................... 86 C. COUNTRY PROGRAMMING ............................................................................................................ 88 D. PROJECT-LEVEL POVERTY AND SOCIAL ANALYSIS ......................................................................... 92 E. POLICY DIALOGUE........................................................................................................................ 93 APPENDIXES Appendix 1: Overview of Activities Appendix 2: Approach to Poverty Reduction Appendix 3: National Consultation Workshop 1 I EXECUTIVE SUMMARY 1. The alarming numbers of women and children being trafficked for forced labor or slavery- like practices (including commercial sexual exploitation) is a development concern for the Asian Development Bank (ADB). Although available statistics are limited and contested, the existing data has served to highlight the issue as evidenced by increased national attention to trafficking issues. An important dimension of inclusive development and a key focus area for the ADB involves strengthening the participation of vulnerable groups in mainstream development, reducing gender discrimination and promoting the development of social capital. ADB’s involvement in combating trafficking of women and children directly addresses its strategic goals: poverty reduction and promoting gender equality. 2. Following initial investigations in the South Asia region and discussions with the governments of Indian, Bangladesh and Nepal, the following objectives were developed for the ADB Regional Technical Assistance (RETA): (i) To increase ADB’s understanding of how its existing country programs and regional policy dialogue can be used to support and strengthen anti-trafficking efforts in South Asia; and (ii) To contribute to capacity building and other efforts by stakeholders to develop and implement policies and programming which will effectively combat trafficking in women and children in South Asia. 3. The challenge of combating trafficking is far beyond the capacity and resources of individual organizations alone, therefore the ADB sought a collaborative approach for this RETA to learn from the experiences of member countries and ask questions about what it can do to help assist and move forward to address trafficking. The methodology utilized by the RETA Team recognized that ADB should seek to bring specific value-added to an already active field of stakeholders by analyzing where the strengths and expertise of the organization lies and how to engage, as partners, those with technical experience in addressing trafficking concerns. 4. The approach to achieving the RETA objectives was based on carrying out a comprehensive analysis of the factors that induce and facilitate trafficking on the demand and supply side, and the potential for addressing vulnerabilities created by these factors in the context of ADB’s policies and ADB-assisted projects. This analysis sought illustrations of how different types of anti-trafficking activities already underway could be used in the context of sector