Nepal Engagement with the Millennium Challenge Corporation (MCC) A Philosophical and Economic Perspective
Daniel Loebell, Mingmar Sherpa, Ram Datta Bhatta

TL;DR
This paper examines Nepal's engagement with the MCC, highlighting how the compact promotes infrastructure development, economic growth, and diplomatic diversification through a mix of economic and philosophical perspectives.
Contribution
It offers a novel analysis of MCC's impact on Nepal's infrastructure and foreign policy using the IFED framework and comparative success stories from other MCC countries.
Findings
MCC investment supports Nepal's infrastructure and economic growth.
The compact diversifies Nepal's foreign partnerships and reduces overdependence.
Success stories from MCC countries demonstrate transformative development.
Abstract
The Millennium Challenge Corporation (MCC), started in 2004 by the United States Congress, focuses on development initiatives involving good governance, sustainable economic growth, and poverty reduction. Since its inception, it has invested over 13 billion US dollars in 30 countries. Nepal is a recent beneficiary, signing a compact valued at 500 million US dollars in 2017, ratified in 2022. The compact mainly invests in road infrastructure and electricity transmission, including construction of 315 kilometers of high-voltage transmission lines, three substations, and upgrading 100 kilometers of the East-West highway. By supporting commercialization of Nepals 40 gigawatt hydropower potential, the MCC aims to enhance Nepals structural economic prosperity. Beyond economics, the compact influences Nepals foreign policy by diversifying partnerships and reducing overdependence on neighbors…
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Taxonomy
TopicsSociopolitical Dynamics in Nepal · International Development and Aid · Life Cycle Costing Analysis
