Meaning of MCC

Had it been shelved, the Nepali political class would be extremely reluctant to back any future American initiative.

The Americans play a pivotal role in Nepal’s geopolitical chessboard. For a country sandwiched between India and China, the US has over the decades given the landlocked Nepal an agency and option beyond its immediate neighbourhood. Most recently, this was evident during the 2015-16 Indian blockade when the American anti-blockade positioning helped Nepal spread the message of its hardship across the world. This is why it is often labelled as Nepal’s ‘third neighbour’. But at the start of the second Trump presidency in January this year, the American support for (and partnership with) Nepal seemed to be unravelling. The Trump administration shuttered the USAID and suspended funding under the MCC—the two agencies whose presence signalled the long-term US partnership with Nepal. These agencies were also supporting Nepal’s development process. This is why the latest news that the MCC funding for Nepal will be continued under a special exemption is a cause for cheer. The Americans have again committed to completing the key power and road MCC projects in Nepal into which they are pumping $500 million. These projects are still on track for completion by the original August 2028 deadline.