Significant US Aid

At a time when Nepal is expecting international assistance for reviving her COVID-hit economy, creating jobs and carrying out infrastructural and other development projects, the United States of America (USA) has promised to support the nation in different sectors. In its latest announcement, the United States Agency for International Development (USAID) is providing Nepal with US$ 58.5 million to help advance democratic progress in the country. USAID's Administrator Samantha Power made the announcement during her three-day official visit starting Tuesday (February 7). Nepal and the US have enjoyed friendly relations ever since the establishment of their diplomatic ties in 1947. They marked the 75th anniversary of diplomatic relations in 2022 with different activities aiming at strengthening the bilateral ties. The US has been a major development partner of Nepal. Under its Millennium Challenge Corporation (MCC) compact, the US is assisting Nepal in building cross-border transmission lines and upgrading major strategic roads. The $500-million MCC Nepal compact is expected to boost the country's power trade and facilitate the transport of goods and people. 

Power, who wrapped up her visit to Nepal on Thursday, called on Prime Minister Pushpa Kamal Dahal Prachanda, Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel, Minister for Foreign Affairs Dr. Bimala Rai Poudel and other high-ranking officials. During the meeting with Power, Prime Minister Prachanda said that the country was committed to consolidating democracy and completing the remaining tasks of the peace process. He also said that the government had plans to reform the bureaucracy, attract foreign investment and institutionalise federalism. Meanwhile, Power's meeting with DPM and Finance Minister Poudel delved into the strength and longevity of the Nepal-US partnership, opportunities to increase the private sector's investment, boost clean energy production and advance prosperity for all Nepalis. Poudel also expressed his promise to make bilateral relations stronger in the days to come. Mentioning that Nepal has received foreign aid for the first time after signing the Point Four Programme in 1951, Poudel said that the G-to-G cooperation expanded through USAID was a testimony to the fact that the development partnership between the two countries has reached newer heights.

Power, while addressing a press conference organised in Kathmandu on Wednesday, clarified that the assistance extended by the US and the USAID was dedicated to giving opportunities to Nepalis. "This is not a product of any geopolitical strategy. The US-Nepal partnership has been built on cooperation, respect and a desire to see the Nepali people choose their own path and any assumptions to the contrary stemmed from misinformation, polarisation and confusion," Power said.  She said that the US respects the independence and sovereignty of Nepal and believes that development efforts should be led by Nepalis themselves. She is the second US official to be here in Nepal in less than two weeks. In the last week of January, US Under Secretary of State for Political Affairs Victoria Nuland was here in Kathmandu on a two-day official visit.

Power, who previously represented her country in the United Nations as the Permanent Representative, and served the National Security Council, commended Nepali people's commitment to democracy. She said that the US would always help Nepal strengthen its democratic institutions. As someone who also met with civil society members and young people in Nepal, she said that the country boasted a lot of 'vibrant energy' that the US wanted to help it harness. Although Nepal and the US are not close physically, the former welcomes a lot of American travelers annually. The US was the second largest tourist source market for Nepal after India, with more than 6,500 Americans visiting this nation last month.