The consortium of the Institute for Social and Environmental Transition (ISET-Nepal), Niti Foundation and Nepal Economic Forum (NEF), considers political economy analysis (PEA) as an integrated approach capable of capturing the dynamic interactions among water use, control, and allocation, policy-making and political power. In the 12 watersheds in Nepal’s West Rapti, Karnali, and Mahakali river basins, we will examine the dynamic interaction among climatic and hydrological variability, human behavior shaped by socio-economic context, social arrangements, environmental and human-built systems, institutions, and politics to assess the changing political economy of water in the basins.

PEA will examine

1. The distribution of power and wealth in a society with interest groups, political elites and competing claims to rights and resources, and
2. The economic processes that generate wealth and influence choices which will be made while negotiating the distribution of rights and resources individually or collectively.

The PEA will suggest ways to promote freshwater biodiversity and integrated water resource management (IWRM)and advance the inclusive social and economic development goals set by the Paani programs.
The program and objectives are:

1. To identify and characterize potential champions within parliamentary, legislative and executive branches, districts selected municipalities and rural municipalities (Gaun Palika), civil society organizations and the private sector that already support are likely to support may be open (receptive) to Paani’s  approach to water resource management,
2. To make corresponding recommendations with regard to Paani’s objectives to reduce threats to freshwater biodiversity and to enhance the resilience of human and ecological communities