The development history of Nepal is relatively short. Nepal opened up to the outside
world after 1951 when the age-old autocratic rule was replaced by a party based political
system. The role of the state changed from maintaining law and order to enhancement of
the peoples' welfare. The first development planning process started in 1956. Confirming
to the contemporary concept of development, maximizing growth was the major
objective of the periodic development plans formulated until 1980. Western development
experience and model provided the basic guidelines. Establishment of basic infrastructure
and provision of social services by the state were the priorities. Development policies and
programs were largely guided by advisory support and financial aid from donors. Around
70% of development budget were funded under external aid. In line with the existing
development paradigm -- growth first and redistribution later -- monitoring focussed on
macro level performance, measured by national accounts indicators. At the project /
programme level performance monitoring was the focus.