The parliament of Nepal has approved a contentious USD 500million US grant, despite opposition and street protests from the Communist parties. In 2017, the US government’s Millennium Challenge Corporation (MCC) pact was inked by Nepal for structure projects but its ratification had been on hold as there were divisions within political parties, including the coalition that was ruling.

Overview

  • Prime Minister Sher Bahadur Deuba’s coalition allies raised strong opposition, claiming that this pact jeopardized Nepal’s sovereignty.
  • As part of a compromise, the vote included a declaration stating that Nepal won’t join any strategic, security, or military, alliance, including the United States’Indo-Pacific Strategy.
  • There were some reports blaming China for the spread of misinformation regarding this pact.

About Millennium Challenge Corporation
The Millennium Challenge Corporation (MCC) is a United States bilateral international aid agency established in 2004 by the US Congress. It’s a separate association from the USAID and State Department. It gives finances to countries that have been found to have the potential for economic growth and good economic policies. The country qualification method is objective, comprising scores in 20 different categories provided by third parties. A country that’s eligible for a grant must apply with a specific project in mind. This organization is headquartered in WashingtonD.C.

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