Re: Nepal and Bhutan News and discussion
Posted: 03 Mar 2022 04:22
https://www.dw.com/en/nepal-approves-us ... a-60936983
Nepal's Parliament on Sunday approved a controversial $500 million (€444 million) aid grant from the United States that critics say undermines the Himalayan nation's sovereignty.
The government was able to convince enough lawmakers to approve the proposal following a brief debate, Speaker Agni Sapkota said. While the session was ongoing, protesters against the measure clashed with police outside the parliament building.
Power and road projects can now proceed
The grant was agreed in 2017 by the Millennium Challenge Corporation (MCC), a US aid agency, to provide funds for a new electricity transmission line and road improvement project.
The aid does not need to be repaid and Washington says it comes with no strings attached.
https://thediplomat.com/2022/02/nepals- ... on-making/Opposition to the aid package came mainly from Communist parties, two of which are part of the coalition government.
The parties also have close links to Beijing, which the US says is behind a smear campaign against the project.
Opponents say they believe the aid would undermine Nepal's laws and sovereignty as it will not have sufficient control over the projects.
They say it's part of Washington's Indo-Pacific strategy, which has military components that could bring American soldiers to Nepal.
The Compact has divided the nation as few issues have. Local elections are due in two months, but debate over the MCC has overshadowed all other issues. It could lead to the collapse of the ruling Nepali Congress-led coalition.
The Americans have not helped their cause either. Some U.S. officials have said that the MCC is a part of the Indo-Pacific Strategy. Critics of the deal have picked up on such statements to argue that the U.S. will place its military in Nepal under the MCC.
https://www.trtworld.com/magazine/analy ... -bri-55162Again, the U.S. might have only worsened the situation when its Assistant Secretary of State Donald Lu threatened that Nepal-U.S. relations would be reviewed if Nepal fails to ratify the MCC (which the U.S. denies).
However, the MCC is now “run as a business model under a CEO”. To qualify for funding, countries must compete “by qualifying on the basis of those criteria mentioned above”. This “gift” comes with numerous strings. Under the revised guidelines, an MCC contract can be terminated if the US government “finds issues with the ‘progress’ on those criteria”.