While scanning MCC, Nepal can also learn from the Sri Lankan experience where a US aid scheme sparked debate and MCC was not approved. Critics argue that the MCC’s primary commitment is not poverty reduction but to reshape the legal, institutional, infrastructural and financial contexts of poorer countries to better suit US economic and Indo-Pacific Strategy Pact interests of the government and becoming an instrument of the new imperialism pursuing economic hegemony through the extension and ever-deepening penetration of neoliberal capitalism. Vietnam has already rejected MCC.
For four years after the Millennium Challenge Corporation (MCC) Agreement under the Indo-Pacific Strategy Pact of the US government was signed in Washington DC for its $500 million grant investment for an additional $130 million Nepal’s counterpart, taxing its poor people, by the then finance minister on behalf of Nepali Congress-Maoist coalition government in 2017, has its endorsement still been wedged in the National Parliament due to oppositions and vehement criticisms and protests against it, as several of the Pact clauses violated Nepal’s Constitution, laws of the land, sovereignty, independence and non-aligned foreign policy.
MCC Vice-President’s optimistic visit in September this month of getting the Pact endorsed by the Parliamentary session infuriated sovereign democratic people and oppositions across Nepal. Reluctant to amend the grant Agreement not written on stone, raised further suspicion that there could be the vested interests of the US of getting its overarching strategic plan met out of Nepal – a nonaligned sovereign country sensitively and strategically bordering next door China-Tibet and India, already having rivalry ever since the 1962 Sino-India war and border disputes.
Are there any countries other than the US which have asked Nepal to get a project Agreement or Pact approved/endorsed by the national parliament, for instance China, India, Russia and even the European countries? Why is the US only so, people question? The feedback report of the Central Committee Members of NCP on MCC Indo-Pacific Strategy Compact was also not positive. The MCC is lopsided and its overarching mission could also be aiming at countering and encircling China, impacting on the Regional or Global peace and stability besides Nepal.
Non-withdrawal of MCC could be also an assault on ‘Democracy by the people, of the people and with the people’ and human rights in Nepal, and might also discredit the US government in its age-old diplomatic relation with Nepal and above all be losing once acquired trust of the people. Any beseeching of MCC could also mean demeaning and defaming the democratic values of sovereign, independent and peace loving not only the American people, but also the global family including people of Nepal, as ‘truth prevails’. “Foreign aid is a method by which the United States maintains a position of influence and control around the world” as John F Kennedy had once said, should not be the case which otherwise would end up with writing clauses into various treaties and agreements, it undesirably becoming like a military and defense strategic Compact in the name of development assistance, MCC for instance..
Health sector largest single recipient of foreign assistance
A number of war torn-apart countries due to years of foreign strategic interventions have become the victims of irreparable loss of lives and property and infrastructures. Libia, Syria, Iraq and Afghanistan are some of the glaring examples. In retrospect, it also reminds us of how India was bridled and colonized and ruined by the British/East India Company having received in April 1717 an imperial permission for trading privileges, an ‘entry point’, in Bengal which led fortification and colonization of Bengal, and later followed by the rest of India overpowering with guns, arms and ammunitions by the Company as an agent of British imperialism in India from the early 18th century to the mid-19th century until 1947 when India became independent from the British clutches. India was exploited economically, commercially, resource-wise, and religiously and culturally. The Indian government is yet to comment on MCC vis a vis Nepal, as this Pact could also destabilize regional peace and stability.
While scanning MCC, Nepal can also learn from the Sri Lankan experience where a US aid scheme sparked debate and MCC was not approved. Critics argue that the MCC’s primary commitment is not poverty reduction but to reshape the legal, institutional, infrastructural and financial contexts of poorer countries to better suit US economic and Indo-Pacific Strategy Pact interests of the government and becoming an instrument of the new imperialism pursuing economic hegemony through the extension and ever-deepening penetration of neoliberal capitalism. Vietnam has already rejected MCC.
Development aid dynamics
Any bilateral grant aid agreement document, if not thoroughly read and understood for its pros and cons beforehand from the ‘nationalistic lens’ of sincerity and accountability, and instead signed blindly or as influenced, as it probably might have been the case with MCC for instance, could turn out to be like a snare of the flower or destiny of the people and the country becoming like a pray or victim of hostility, eventually. National laws, sovereignty and human rights and non-aligned foreign policy of a recipient country cannot be compromised with any foreign aid assistance. MCC Compact is unlike INGO grant project which normally is focused on people-centered sustainable development having ownership of the impact population.
The government negotiators and political leaders should be aware of the possible harm of the donor sycophancy including dinner diplomacy and socialization, enticing, issuance of Green Cards (an obsession?), educational scholarships overseas, lobbying and back door meetings and even violating protocols to get their strategic mission document, treaty or agreement or pact get approved. Of the most frequent criticisms of foreign aid is also how it fuels rampant corruption and misutilisation of funds, project cost and time overrun, overdependence taking over self-initiative and in-house capacity, and donor/expats taking back home for their services a huge sum of payments charged to project cost itself.
In-house capacity
Ironically speaking, beyond National Pride Projects (25) there are many other mega projects in the ‘basket’ for kickoff such as the treaty on Integrated Development of Mahakali River mega project which was signed between Nepal and India in February 1996 still in limbo. Any leniency and becoming comfortable to donor countries as the US, India or China at the cost of Nepal is unconstitutional, dissolute and inviting micro-management intercessions, and political and socio-economic chaos as the trend shows.
While the infant Federal Democratic Republican system of governance is tumultuous due to ever-changing political permutations and electoral arithmetical equations, and horse trading and floor- crossing in the national parliament, the spiral musical-chair-like government (a total of 14 PMs/9 individuals between 2006-2021, an average of 1 year duration per Premiership!) led by the conflicting and erratic leaders and their fluctuating principles, has put the country at a greater risk. Corruption, syndicate and poor governance, ad hoc and slapdash management are uncontrolled. Unaccounted government expenditures have surpassed Rs 9 trillion, and the foreign debt hiked to Rs17 trillion, which speaks volumes.
Dedicating body, mind and soul to ‘pure duty’ diligently in politics and bureaucracy is missing. Use of ambiguous and fluctuating statements and rhetoric are confusing and misleading people and state machineries at work. People and elections are made like a “springboard” for power, post and wealth acquisitions, as the trend shows. Being elected and possessing power and authority is not a ‘license’ to take the wrong decision and exercise one’s sweet wills. Apparently, there are dichotomies and incongruities between the political manifestos, polls and the elected leaders in their fidelity and trustworthiness among people and civil societies, which is worrisome.
Until the people gain confidence in the political parties and their leaders and state machineries function efficiently and effectively, and political anarchy ends, anomalies and irregularities eliminated, any bilateral project agreement, treaties and pact should be mandatorily discussed and endorsed at least by a two-third majority votes of the National Parliament and also input of the Supreme Court taken on these documents for a check and balance to save from chaos and subsequent pitfalls.
(The author writes on integrated development issues.)
