By Puru Shah
There has been a great deal of discussion about whether or not Nepal's Prime Minister Disaster Relief Fund (PMDRF) is transparent and effective in delivering relief. See my previous post, "What is Wrong With Donations For Nepal's Earthquake Relief?" for a background to this discussion. Given the choices to donate through local NGOs, INGOs, UN agencies and the PMDRF, this dilemma is a legitimate one. In this post, I will evaluate transparency of the PMDRF.
First of all, the PMDRF is one of the few entities that has been publishing data about funds received and disbursed in near real-time on its website. Besides a few local NGOs like Bibeksheel Nepali and Ktmshapers, most of the funds received and spent by NGOs, INGOs and UN agencies have not been published on the web.
Although it is possible to calculate funds received by INGOs and UN agencies through Financial Tracking Service, these recipients have not published this data voluntarily. More importantly, there is no way to track funds spent for relief projects in Nepal by INGOs like Red Cross, Oxfam and Care Nepal because they publish financial data in its annual report.
The next post will cover the transparency issue and its challenges for INGOs who have received donations for earthquake relief in Nepal. The chart below shows a quick summary of funds flowing in and out of the Nepal's PM Disaster Relief Fund.
Graph 1 - A brief summary of funds flowing in and out of the Nepal's PM Disaster Relief Fund. Graph by Puru Shah. Data Source: PMDRF Website as of May 22, 2015.
As of May 22, 2015, a total of 9,653 million Nepali rupees has been deposited, 8,000 million NRs. withdrawn (by Home Ministry for aid disbursement) and 1,653 million NRs. is remaining in the PMDRF . Before the Apr. 25 earthquake, 512 million NRs. was remaining in the PMDRF. After the Apr. 25 earthquake, 3,641 and 5,500 million NRs. were received from various groups (organizations and individuals) and Nepal's Ministry of Finance respectively.
The answer is no and yes. The graph below shows a chronological flow of funds into the PMDRF.
Graph 2 - Funds Received in Nepal's PM Disaster Relief Fund since Apr 25 earthquake in Nepal.
It is striking that the disastrous earthquake occurred on April 25 but even a week after its occurrence, less than 150 million Nepali rupees was deposited into the PMDRF. In other words, only 4% of the total funds received so far in the PMDRF was deposited in the first week following the disaster.
During most disasters, donor funds flow quickly for life-saving immediate relief and first few days and week(s) are considered crucial. Similarly, the flow of funds for the second week was also relatively low. This statistics for Nepal appears an outlier than a norm. Is there an explanation for this?
The answer seems to lie in a tweet from the Twitter account of Nepal PM Disaster Relief Fund itself. On May 1, 2105 the Nepali government made an announcement that funds to the PMDRF could be deposited using foreign credit cards.
Until May 1, the amount deposited into the PMDRF was abysmally low. This could have alarmed the Nepali government to make a rather hawkish announcement to channel all funds for earthquake relief through the PMDRF. Understandably, they remedied this announcement with a clarification after much criticism from all sides. This damaged its credibility and trust to slow the flow of potential donations further.
The answer is also yes and no. The western governments such as the US, the UK, Netherlands, Canada and Australia do not trust Nepal's PMDRF to channel funds for aid relief. They have channeled their funds through international humanitarian and UN agencies, see my previous posts, "What is Wrong With Donations For Nepal's Earthquake Relief?" and "The Largest Donors & Recipients of Relief Funds in Nepal" for more details. However, some of the Asian governments such as Hong Kong, Japan, Bhutan, South Korea and China do trust Nepal's PMDRF.
In the graph 2 above for funds received, there is a big spike on May 13, a day after second 7.3M earthquake struck on May 12. That spike is attributed to 662 million NRs. donation by Hong Kong government. The graph below shows the top foreign donors who are also among the top 20 overall donors for Nepal's PMDRF.
Graph 3 - The Largest Foreign Donors to Nepal's PM Disaster Relief Fund.
All of the top foreign donor countries to the PMDRF are from Asia and Africa. Besides the Nick S. Foundation based in New York, there are no major western donors who have contributed to this fund directly. Hong Kong, Asian Development Bank, Japan, Nick S. foundation, Algeria and Bhutan are among the top contributors.
Unlike most large INGOs and humanitarian agencies that publish data about their funds received and distributed in an annual report only, the Nepali government is updating this data daily on a public website. The chart below shows the date and total funds withdrawn from PMDRF by the Home Ministry for aid distribution.
Graph 4 - Funds Withdrawn from PM Disaster Relief Fund by the Home Ministry for Aid Distribution
The Home Ministry has made five withdrawals in the amount of 500, 1000, 500, 2000 and 4000 million Nepali rupees. Four of the first five withdrawals were following the Apr 25, 7.8M earthquake and the last big withdrawal was several days after the second 7.3M earthquake struck. In my previous post, "A Closer Look at The Distribution of PM Disaster Relief Funds", I have included more detail about the relief aid distributed by the Nepali government. An update to the aid distributed in affected districts using newly available data shall be covered in a subsequent article. The post will compare funds withdrawn against aid distributed in affected districts.
As much as Nepalis complain about the rampant corruption in their own government, they trust Nepal's PMDRF more than foreigners do. Almost all of the donations received by PMDRF in the first two weeks following the Apr 25 earthquake came from national donors. Nepali corporations such as Gorkha Brewery and institutions such as Armed Police Force and Nepal Police Officers were among the first donors to contribute large sums via PMDRF. The graph below shows 20 of the largest contributors to the PMDRF, several of whom are national donors.
Graph 5 - The 20 Largest Donors to Nepal PM Disaster Relief Fund.
Nepal Government Employees, Nepal Telecom, Nepal Police Officers, Gorkha Brewery Pvt. Ltd., Armed Police Officers, Nepal Telecommunications Authority, and Nepal Tourism Board are among the largest (national) donors to the PMDRF. Most of the donors who have contributed to PMDRF (not included in the top 20 list) are of Nepali origin.
In conclusion, Nepal's Prime Minister Disaster Relief Fund has been very transparent about funds received and withdrawn. A subsequent post will analyze whether or not the funds withdrawn were used effectively for aid distribution. Although the flow of donations through the PMDRF was very slow following the disaster, it has gradually gained momentum. This may be indicative of the trust earned by the government after carrying out swift search & rescue operations and deliver immediate relief, following the second 7.3M earthquake near Kodari.
In order to win the trust of the bigger donors, the Nepali government needs to come up with long-term plans for reconstruction of Nepal.
Since as a bilingual author, I have been writing primarily in English, I wanted to include two charts in Nepali as well.
प्रधानमन्त्री दैवी प्रकोप उध्दार कोषमा जम्मा भएको रकम
प्रधानमन्त्री आपद राहत कोष बाट निकाशा गएको रकम
Data Source: PM Relief Fund Nepal Government Website, current as of May 22, 2015.
Puru Shah is a team member of One Stop Portal. He holds a Bachelor of Arts in International Studies and a Bachelor of Science in Engineering Science (Electrical) from Trinity University in San Antonio, USA.
There has been a great deal of discussion about whether or not Nepal's Prime Minister Disaster Relief Fund (PMDRF) is transparent and effective in delivering relief. See my previous post, "What is Wrong With Donations For Nepal's Earthquake Relief?" for a background to this discussion. Given the choices to donate through local NGOs, INGOs, UN agencies and the PMDRF, this dilemma is a legitimate one. In this post, I will evaluate transparency of the PMDRF.
First of all, the PMDRF is one of the few entities that has been publishing data about funds received and disbursed in near real-time on its website. Besides a few local NGOs like Bibeksheel Nepali and Ktmshapers, most of the funds received and spent by NGOs, INGOs and UN agencies have not been published on the web.
Although it is possible to calculate funds received by INGOs and UN agencies through Financial Tracking Service, these recipients have not published this data voluntarily. More importantly, there is no way to track funds spent for relief projects in Nepal by INGOs like Red Cross, Oxfam and Care Nepal because they publish financial data in its annual report.
The next post will cover the transparency issue and its challenges for INGOs who have received donations for earthquake relief in Nepal. The chart below shows a quick summary of funds flowing in and out of the Nepal's PM Disaster Relief Fund.
Graph 1 - A brief summary of funds flowing in and out of the Nepal's PM Disaster Relief Fund. Graph by Puru Shah. Data Source: PMDRF Website as of May 22, 2015.
As of May 22, 2015, a total of 9,653 million Nepali rupees has been deposited, 8,000 million NRs. withdrawn (by Home Ministry for aid disbursement) and 1,653 million NRs. is remaining in the PMDRF . Before the Apr. 25 earthquake, 512 million NRs. was remaining in the PMDRF. After the Apr. 25 earthquake, 3,641 and 5,500 million NRs. were received from various groups (organizations and individuals) and Nepal's Ministry of Finance respectively.
Has PM Disaster Relief Fund Been Successful in Collecting Donations?
The answer is no and yes. The graph below shows a chronological flow of funds into the PMDRF.
Graph 2 - Funds Received in Nepal's PM Disaster Relief Fund since Apr 25 earthquake in Nepal.
It is striking that the disastrous earthquake occurred on April 25 but even a week after its occurrence, less than 150 million Nepali rupees was deposited into the PMDRF. In other words, only 4% of the total funds received so far in the PMDRF was deposited in the first week following the disaster.
During most disasters, donor funds flow quickly for life-saving immediate relief and first few days and week(s) are considered crucial. Similarly, the flow of funds for the second week was also relatively low. This statistics for Nepal appears an outlier than a norm. Is there an explanation for this?
Why Did PM Relief Fund Not Receive Donations In The First Week?
The answer seems to lie in a tweet from the Twitter account of Nepal PM Disaster Relief Fund itself. On May 1, 2105 the Nepali government made an announcement that funds to the PMDRF could be deposited using foreign credit cards.
You can donate to the @Nepal_PM_Fund with your @Visa and @MasterCard now http://t.co/ojJCqSUBKJ #NepalearthquakeReliefFund #NepalQuakeRelief
— NepalPMsDisasterFund (@Nepal_PM_Fund) May 1, 2015
Until May 1, 2015, the only way to deposit funds into the PMDRF was through direct bank wire transfer(s). This process is less convenient than donating using credit cards, Paypal or a multitude of other crowdfunding platforms. Direct wire transfers also levy a higher fixed processing fee compared to other means for smaller transactions.Until May 1, the amount deposited into the PMDRF was abysmally low. This could have alarmed the Nepali government to make a rather hawkish announcement to channel all funds for earthquake relief through the PMDRF. Understandably, they remedied this announcement with a clarification after much criticism from all sides. This damaged its credibility and trust to slow the flow of potential donations further.
Do Foreign Governments Trust Nepal's PM Disaster Relief Fund?
The answer is also yes and no. The western governments such as the US, the UK, Netherlands, Canada and Australia do not trust Nepal's PMDRF to channel funds for aid relief. They have channeled their funds through international humanitarian and UN agencies, see my previous posts, "What is Wrong With Donations For Nepal's Earthquake Relief?" and "The Largest Donors & Recipients of Relief Funds in Nepal" for more details. However, some of the Asian governments such as Hong Kong, Japan, Bhutan, South Korea and China do trust Nepal's PMDRF.
In the graph 2 above for funds received, there is a big spike on May 13, a day after second 7.3M earthquake struck on May 12. That spike is attributed to 662 million NRs. donation by Hong Kong government. The graph below shows the top foreign donors who are also among the top 20 overall donors for Nepal's PMDRF.
Graph 3 - The Largest Foreign Donors to Nepal's PM Disaster Relief Fund.
All of the top foreign donor countries to the PMDRF are from Asia and Africa. Besides the Nick S. Foundation based in New York, there are no major western donors who have contributed to this fund directly. Hong Kong, Asian Development Bank, Japan, Nick S. foundation, Algeria and Bhutan are among the top contributors.
Is PM Disaster Relief Fund Transparent About Fund Disbursement?
Unlike most large INGOs and humanitarian agencies that publish data about their funds received and distributed in an annual report only, the Nepali government is updating this data daily on a public website. The chart below shows the date and total funds withdrawn from PMDRF by the Home Ministry for aid distribution.
Graph 4 - Funds Withdrawn from PM Disaster Relief Fund by the Home Ministry for Aid Distribution
The Home Ministry has made five withdrawals in the amount of 500, 1000, 500, 2000 and 4000 million Nepali rupees. Four of the first five withdrawals were following the Apr 25, 7.8M earthquake and the last big withdrawal was several days after the second 7.3M earthquake struck. In my previous post, "A Closer Look at The Distribution of PM Disaster Relief Funds", I have included more detail about the relief aid distributed by the Nepali government. An update to the aid distributed in affected districts using newly available data shall be covered in a subsequent article. The post will compare funds withdrawn against aid distributed in affected districts.
Do Nepalis Trust Nepal's PM Disaster Relief Fund?
As much as Nepalis complain about the rampant corruption in their own government, they trust Nepal's PMDRF more than foreigners do. Almost all of the donations received by PMDRF in the first two weeks following the Apr 25 earthquake came from national donors. Nepali corporations such as Gorkha Brewery and institutions such as Armed Police Force and Nepal Police Officers were among the first donors to contribute large sums via PMDRF. The graph below shows 20 of the largest contributors to the PMDRF, several of whom are national donors.
Graph 5 - The 20 Largest Donors to Nepal PM Disaster Relief Fund.
Nepal Government Employees, Nepal Telecom, Nepal Police Officers, Gorkha Brewery Pvt. Ltd., Armed Police Officers, Nepal Telecommunications Authority, and Nepal Tourism Board are among the largest (national) donors to the PMDRF. Most of the donors who have contributed to PMDRF (not included in the top 20 list) are of Nepali origin.
In conclusion, Nepal's Prime Minister Disaster Relief Fund has been very transparent about funds received and withdrawn. A subsequent post will analyze whether or not the funds withdrawn were used effectively for aid distribution. Although the flow of donations through the PMDRF was very slow following the disaster, it has gradually gained momentum. This may be indicative of the trust earned by the government after carrying out swift search & rescue operations and deliver immediate relief, following the second 7.3M earthquake near Kodari.
In order to win the trust of the bigger donors, the Nepali government needs to come up with long-term plans for reconstruction of Nepal.
Bonus Materials
Since as a bilingual author, I have been writing primarily in English, I wanted to include two charts in Nepali as well.
प्रधानमन्त्री दैवी प्रकोप उध्दार कोषमा जम्मा भएको रकम
प्रधानमन्त्री आपद राहत कोष बाट निकाशा गएको रकम
Data Source: PM Relief Fund Nepal Government Website, current as of May 22, 2015.
Puru Shah is a team member of One Stop Portal. He holds a Bachelor of Arts in International Studies and a Bachelor of Science in Engineering Science (Electrical) from Trinity University in San Antonio, USA.
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