Nepal has been forced to stop several American-funded development projects in recent times after President Donald Trump ordered a 90-day break abroad after President Donald Trump returned to the White House.
The Finance Ministry of the Himalayan nation said that USAID-funded projects in the fields of education, health and agriculture have been affected among others.
Last week, Nepal was informed that the US Government Assistance Agency Freeze with Multimilian Dollar Grants Assistance provided to the country by the Millennium Challenge Corporation (MCC).
What about MCC grant?
In September 2017, MCC agreed to provide $ 500 million (€ 480 million) for Nepal and one of the world’s poorest countries, to build electric lines in the Himalayan nation, to provide $ 500 million (€ 480 million) for Nepal.
In the agreement signed during Trump’s first presidential post, the then ruling ruling coalition got stuck in Nepal’s Parliament due to differences within criticism from government and other political forces.
Opponents said that Grant Wood weakens Nepal’s laws and is incompetent as Kathmandu, there will be no suffering control over projects. But the supporters argued that this zamindar would benefit the country economically.
The MCC project gave air to geopolitical tension, which dragged the US and China into a faceoffs in Nepal because their diplomatic was inspired in the oral bar. At that time, China accused the US of playing “tremendous diplomacy” and pressurizing Nepal.
The Parliament of Nepal finally confirmed the agreement in February 2022.
A ‘waiting-and-look phase’
The latest suspension of US aid has drawn mixed reactions in Nepal.
While those who opposed the MCC deal welcomed the decision, the supporters of the Pact were upset.
Nepal-Hinified Marxist-Leninist (CPN-UML) and former Foreign Minister’s ruling Communist Party leader Pradeep Gyawali warned that suddenly Nepal had serious challenges in American funding. Hey Saod The Fining Cut is affecting programs related to education, poverty alleviation and health care, including children and maternal mortality targets.
The country of about 30 million people is already struggling with high budget deficit and struggling to finance major development programs.
Shyam Bhandari, a spokesman for Nepal’s Finance Ministry, told DW that the government is in the “waiting-and-looking phase” as the assistance for 90 days has been stopped at present.
“A final decision on the optional can only be made when the suspension is a commode. For now, we hope that the MCC funding will start again,” Heer said.
Hard to change American funding
Indra Advari, a member of Nepal’s Policy Research Institute, expressed surprise at the American step, especially Washington barely pushed Kathmandu for the compact of the compact.
Referring to Nepal’s powerful neighbors China and India, “If America takes back, other players can move.”
“There is intensive geo -political competition, and any vacuum wants to be full of any other power.”
The official argued that Beijing could use the position to portray Washington as an incredible partner, even with a straight step.
Treating the line between China and India
Anil Giri, a senior diplomatic correspondent at Kathmandu Post, told DW that it would be easy for Nepal to change American aid.
If Nepal was to invite China or India, it will be seen with doubt and doubt in another country and further geopolitical complications will be created.
Former Foreign Minister Gyawali resonated this concern.
“It would be sensible to detect the discovery of neutral search sources as the Asian Development Bank or the World Bank, as a soft loan,” he said.
Edited by: Srinivas Majumdaru
