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Social Inclusion and Social Protection in Nepal

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Social Inclusion and Social Protection in Nepal Social Inclusion and Social Protection in Nepal Kristie Drucza B.Soc.Sci. BA(Hons). MA A thesis submitted for the degree of Doctor of Philosophy School of Humanities and Social Sciences Deakin University 2016 Abstract This PhD thesis explores the contribution of social protection to building an inclusive state in the post-conflict democratic era in Nepal. However, it has found useful insights into the issues of state-building, social inclusion, post-conflict recovery, and donor relations that are so germane to the issues of development in fragile and conflict-affected states. The theory of adverse incorporation and social exclusion is combined with political settlements to provide the theoretical framework. A grounded theory methodology is used to understand the roles of different actors including development partners, civil servants, politicians, the private sector, trade unions, journalists, academics and how recipients of five government funded cash transfers perceive these funds and view their own sense of citizenship. “Inclusivity” cannot only be understood from the top – the view of the state. Citizens play a role in state building and ‘inclusion’ involves perceptions and experiences. Researching the relationship between social inclusion and social protection enabled a focus on the subjective and experiential aspects of structural discrimination, rather than the more traditional focus on the material dimensions of deprivation. Since Nepal’s 10-year conflict ended in 2006, social inclusion is a political discourse and policy response that is meant to overcome centuries of discrimination based upon caste, ethnicity, religion, gender, and region. However, the current “social inclusion agenda”, understood to mean affirmative action, federalism and inclusive democracy, is contested. The research reveals the nature of the political settlement and how it has changed from what was reached immediately post-conflict. Limitations towards constructing a democratic welfare state is shown to be imposed by clientelistic and patronage-based party politics which continue to dominate the political landscape in the country, despite the civil war and democratic transition. This changing socio-political landscape reveals the state to be fragmented and exclusive, as is the rest of society. Social protection in Nepal cannot be separated from the broader struggle to achieve a more inclusive naya (new) Nepal. Some of the major transformative structural change initiatives undertaken in Nepal such as affirmative action and federalism have immense significance to Nepal’s excluded groups and provide the background against which social protection (a specific set of instruments), its evolution and its stalling must be understood. Detailed and comprehensive insights into the political struggles in Nepal post-conflict and the structural and procedural challenges of building a more inclusive society are revealed. The thesis provides evidence on how a development approach such as social protection could make a contribution to inclusive state building (understood as the social inclusion agenda in Nepal) and how social protection is connected to the political settlement. What emerges from the research is insights into how structural and practised forms of exclusion are reproduced and changed, and the roles of the different actors involved. It gives a sense of the pace of change and the time required to build an inclusive state and a realistic understanding of how social protection may contribute to social inclusion and state building in a post-conflict, traditionally exclusive state transitioning from a monarchy to a federal democratic republic. Acknowledgements I wish to thank my supervisor, Professor Damien Kingsbury for his guidance throughout the PhD process and to Professor Matthew Clark for his penultimate draft comments. The research and writing for this thesis would not have been possible without a Higher Degree by Research Scholarship (grant number 300022976) that was awarded by Deakin University. Additionally, thanks to my mum and partner who also provided comments on earlier drafts and support throughout the PhD. Most importantly, I wish to thank all the informants and specifically those in Sarlahi who generously gave their time. Contents ABSTRACT V ACKNOWLEDGEMENTS VII CONTENTS VIII LIST OF FIGURES XII LIST OF TABLES XIII LIST OF ABBREVIATIONS XIV CHAPTER 1: THESIS INTRODUCTION 17 CHAPTER 2: LITERATURE REVIEW 26 2.1 INTRODUCTION 26 2.2 SOCIAL EXCLUSION AND INCLUSION 27 2.3 SOCIAL PROTECTION 30 2.3.1 SOCIAL PROTECTION DEFINITIONS AND DEBATES 32 2.3.2 CASH TRANSFERS AND SOCIAL INCLUSION 33 2.3.3 CASH TRANSFERS IN FRAGILE AND CONFLICT-AFFECTED STATES 35 2.4 SOCIAL PROTECTION AND CASH TRANSFERS IN NEPAL 38 2.5 THE STATE 43 2.6 CITIZENSHIP 46 2.7 FEDERALISM 48 2.8 AFFIRMATIVE ACTION 50 2.9 CONCLUSION 52 CHAPTER 3: THEORETICAL FRAMEWORK 56 3.1 INTRODUCTION 56 3.2 ADVERSE INCORPORATION AND SOCIAL EXCLUSION FRAMEWORK 56 3.3 POLITICAL SETTLEMENTS 59 3.4 CONCLUSION 62 CHAPTER 4: METHODOLOGY 65 4.1 INTRODUCTION 65 4.2 RESEARCH DESIGN 66 4.3 DATA COLLECTION PHASES 72 4.3.1 PHASE 1—LITERATURE ANALYSIS AND KATHMANDU INFORMANTS 73 4.3.2 PHASE 2—CHOOSING THE DISTRICT 75 4.3.3 PHASE 3—DISTRICT AND VILLAGE INTERVIEWS 80 4.3.4 PHASE 4—ANALYSIS, WRITING AND THEORY DEVELOPMENT 81 4.4 OTHER DATA COLLECTION ISSUES 84 4.5 CONCLUSION 86 CHAPTER 5: INTRODUCTION TO NEPAL 88 5.1 INTRODUCTION 88 5.2 HISTORY 88 5.2.1 1950S DEMOCRACY 90 5.2.2 1990S DEMOCRACY 91 5.2.3 CONFLICT 94 5.2.4 PEACE 95 5.2.5 THE 2008 CONSTITUENT ASSEMBLY 97 5.2.6 STATE FRAGILITY 100 5.3 HUMAN AND SOCIAL DEVELOPMENT 101 5.3.1 POVERTY REDUCTION 103 5.3.2 DEVELOPMENT CHALLENGES 104 5.4 SOCIAL EXCLUSION 106 5.4.1 POLITICAL PARTIES AND SOCIAL INCLUSION 110 5.5 CONCLUSION 111 CHAPTER 6: SOCIAL PROTECTION IN NEPAL 113 6.1 INTRODUCTION 113 6.1 POLICYMAKING 115 6.2 FINANCES 117 6.3 DEVELOPMENT PARTNERS AND THE NATIONAL SOCIAL PROTECTION FRAMEWORK 120 6.4 THE BUREAUCRACY 124 6.5 CIVIL SOCIETY AND CITIZEN ENGAGEMENT 127 6.6 CONCLUSION 131 CHAPTER 7: THE POLITICAL ECONOMY OF SOCIAL PROTECTION 135 7.1 INTRODUCTION 135 7.2 IS SOCIAL PROTECTION JUST A POLITICAL TOOL? 137 7.3 POLITICAL PARTIES, THEIR MANIFESTOS AND SOCIAL PROTECTION 139 7.3.1 UNIFIED COMMUNIST PARTY OF NEPAL–MAOIST 140 7.3.2 COMMUNIST PARTY OF NEPAL–UNIFIED MARXIST LENINIST 143 7.3.3 THE NEPALI CONGRESS 144 7.3.4 MADHESHI PARTIES 146 7.3.5 DISCUSSION OF POLITICAL PARTIES 147 7.3.6 ROLE OF THE THIRD SECTOR 149 7.4 THE TRADE UNIONS 151 7.5 SOCIAL SECURITY ACT 153 7.6 LABOUR LAW 154 7.7 THE ROLE OF THE MARKET AND THE STATE 157 7.8 CONCLUSION 159 CHAPTER 8: THE SOCIAL INCLUSION PROJECT AND IDENTITY POLITICS 164 8.1 INTRODUCTION 164 8.2 REPRESENTATION AND MOBILISATION 166 8.3 SOCIAL INCLUSION IN POLICY AND PRACTICE 171 8.4 DONORS, THE BACKLASH AND IDENTITY 175 8.5 CONSTITUTION DRAFTING 183 8.6 DIFFERENT PERCEPTIONS 186 8.7 IDENTITY FORMATION 190 8.8 CONCLUSION 196 CHAPTER 9: AFFIRMATIVE ACTION 200 9.1 INTRODUCTION 200 9.2 CIVIL SERVICE AFFIRMATIVE ACTION 203 9.2.1 DISCRIMINATION 208 9.3 POLITICAL INCLUSION 212 9.4 CHALLENGES WITH POLITICAL QUOTAS 214 9.4.1 ATTEMPTS TO MAINTAIN POWER 218 9.5 DEVELOPMENT PARTNERS AND AFFIRMATIVE ACTION 221 9.6 CONCLUSION 224 CHAPTER 10: CASH TRANSFERS AND THE VIEWS OF RECIPIENTS 228 10.1 INTRODUCTION 228 10.2 IMPLEMENTATION PROCESS 229 10.2.1 VILLAGE DEVELOPMENT COMMITTEE SECRETARY EXPERIENCES OF THE CASH TRANSFERS 232 10.3 RESPONSES 234 10.3.1 SERVICE DELIVERY BENEFITS 234 10.3.2 USEFULNESS OF THE TRANSFER 236 10.3.3 CASH CREATES SAMENESS AND RESPECT 237 10.3.4 TARGETING 239 10.3.5 CONDITIONALITY 241 10.3.6 ACCESS CHALLENGES 241 10.3.7 AVENUES OF REDRESS 243 10.4 STATE RELATED ANSWERS 247 10.4.1 KNOWLEDGE AND PERCEPTIONS OF THE STATE 247 10.5 CONCLUSION 251 CHAPTER 11: CONCLUSION—TOWARDS A THEORY OF INCLUSIVE STATE BUILDING AND THE ROLE OF SOCIAL PROTECTION 256 11.1 INTRODUCTION 256 11.2 METHODOLOGY 257 11.3 INCLUSION 260 11.4 DIFFERENT INSTRUMENTS 262 11.4.1 FEDERALISM 262 11.4.2 AFFIRMATIVE ACTION 263 11.4.3 SOCIAL PROTECTION AND CASH TRANSFERS 264 11.5 THEORY 268 11.6 CONCLUSION 271 BIBLIOGRAPHY 276 NEWS ARTICLES 300 WEBSITES 301 ANNEXES 303 ANNEX 1: KEY INFORMANT SUMMARY – KATHMANDU 303 ANNEX 2: KEY INFORMANTS—KATHMANDU 304 ANNEX 3: RECIPIENT RESPONDENTS - SUMMARY 306 ANNEX 4: RECIPIENT RESPONDENTS 307 ANNEX 5: KEY INFORMANTS—SARLAHI 310 ANNEX 6: FEDERAL MAPS 311 ANNEX 7: RECIPIENT CASE STUDIES 313 CASE STUDY 1—SINGLE WOMAN 313 CASE STUDY 2—SINGLE WOMAN 314 CASE STUDY 3—DALIT CHILD GRANT 315 CASE STUDY 4—DALIT CHILD GRANT 316 CASE STUDY 5—SENIOR CITIZEN ALLOWANCE 316 CASE STUDY 6—SENIOR CITIZEN ALLOWANCE 317 List of Figures Figure 1 Typology of Political Settlements 60 Figure 2 Patron–Client Factions and the Structure of the Ruling Coalition 61 Figure 3 Map of Nepal 76 Figure 4 Nepal’s Caste Pyramid 89 Figure 5 GDP Growth 102 Figure 6 Multidimensional Exclusion Index (MEI)for Broad Caste/Ethnic Groups 108 Figure 7 Sites of Disempowerment and Exclusion are Different for Different Excluded Groups 109 Figure 8 Average Value of Selected Individual Characteristicsof Caste/Ethnicity by Sex 110 Figure 9 Anti-DFID Graffiti 177 Figure 10 Cash Transfer Implementation Process 230 Figure 11 Identity Record Book 231 Figure 12 Government Ledger 231 Figure 13 VDC Office 233 Figure 14 Research Participants’ Reported Approaches to Accessing Cash Transfer 242 Figure 15 Likert scale: How satisfied are you with the government’s responsiveness to complaints? 245 Figure 16 Do these transfers affect the relationship you
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