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Last week, India organized the second edition of Voice of Global South Summit to share key outcomes achieved in various G20 meetings over the course of India’s Presidency this year. The summit discussed the common challenges faced by the countries of the Global South.

Nepal’s Prime Minister Pushpa Kamal Dahal was also invited at the concluding session of the summit attended by more than 125 countries from the Global South . Addressing the session, Dahal said that the world is facing an unprecedented crisis generated by the Covid-19 pandemic, climate change, and deepening geo-political complexities. They have impacts on food and nutrition, health and education, economy and environment, and peace and security, he said.

“Developing countries, especially the LDCs, are the most affected by these crises. Rising food and energy prices, tightening financial conditions, and persistent cycles of vulnerabilities continue to add to their worries,” Dahal said.

In order to address the challenges facing the world, Dahal urged the international community to focus on common goals of peace, progress and prosperity. For this, building of trust, promoting partnership and collaboration and working in solidarity remain crucial, the prime minister emphasized.  

Dahal also called for the need to champion inclusive and sustainable global growth, in which the Global South receives a fair share to eradicate poverty and give their people a decent life. He also said tha Nepal remains steadfast in its commitment to multilateralism with the United Nations at the center.

“Nonetheless, we believe that the existing global governance architecture needs a timely reform to make it relevant and reflective of today’s realities. Reform of the international financial architecture should be a top priority with full consideration to the voice of the countries in special situations, including LDCs, LLDCs and SIDS,” Dahal said.

He added: “Climate change remains a grave threat to humanity. Climate-vulnerable countries like Nepal have been bearing the burden of climate change. The effect of climate change on the Himalayas has posed a severe threat to the lives and livelihoods of millions of people living in our region. We all must commit ourselves to achieving the set ambitions in a time-bound manner.”

The prime minister further said that Nepal is graduating from the LDC status by 2026 and the nation is committed to making this process smooth, sustainable, and irreversible. 

“Sustainable Development Goals remain at the center of our development vision and priorities with integration into national policies and plans. But even the progress that we achieved so far has been threatened by the multitude of global crises,” he said.  “Hence, we have been calling for an enhanced level of international support from our partners such as development assistance, FDI, trade facilitation, technology transfer and technical assistance. South-South cooperation should also be forthcoming to lifting the neediest countries.”

Indian Prime Minister Narendra Modi said that the Global South wants its autonomy and it is ready to take up greater responsibility in global matters. 

“Geographically, the Global South has always existed, but it is getting a voice for the first time, and this is because of joint efforts. We are more than 100 countries but our priorities are similar,” he said. 

Modi also spoke of the 5 ‘Cs’, a commitment to which would power the growth of these countries. The 5 ‘Cs’ are “consultation, cooperation, communication, creativity and capacity building.

The foreign ministers’ session deliberated on major global agendas, including climate change, energy transition, technological transformation, and restoring trust in multilateralism. 

Minister for External Affairs of India S Jaishankar said India took over its G20 Presidency in the backdrop of a very challenging global, and in its presidency, India’s anchor was the Global South.  

“Its voices inspired our priorities, fueled our efforts, and galvanized a path-breaking consensus,” he said. “Recognizing our shared past, the Global South will continue to make efforts for One Earth and to strengthen the voices of the developing countries, the Indian minister said, as one family, the Global South will continue to act with everyone’s interests in mind and drive transformation and building synergies.”  

In the summit, India also announced some initiatives. One of them is the Global South Centre of Excellence which will work as a think tank and will also work as a repository of knowledge and development initiatives in order to interface with the Global South and seek ways to forge collaboration with countries in this region. 

On Nov 22, India organized a G20 leader’s Summit to review the progress in the implementation of outcomes and action points from the New Delhi Summit. India has said that during the G20 presidency it articulated the voice of the Global South. 

Ahead of COP28, in the G20 summit, Indian Prime Minister Modi urged the countries to take concrete actions on Global South’s priorities in the Global South.  

Foreign policy observers say Nepal can take the benefit from the initiatives but Nepal has not made any preparations on it. Climate change is one of the areas on which Nepal can get benefits.

Box

The proposal made by Modi:

• Climate action and climate justice with greater focus on adaptation
• Easy and affordable climate finance for vulnerable countries
• Raising climate finance from billions to trillions
• Just, inclusive and affordable energy transition
• Focus on alternative fuels
• G20 high-level principles on Hydrogen
• Tripling renewable energy capacity by 2030

India’s initiative for Global South

• Global South Center of excellence for research on development issues
• Arogya Maitri Initiative for supplying essential medicines and supplies for humanitarian assistance to global south
• India’s digital health service delivery stack to be made available to Global South
• Global South and Science and Technology initiative for the capacity building
• G20 satellite mission for environment and climate observation to share climate and weather data with Global South
• Global South Partnership Program for the students of global south in India
• Global-South young diplomat forum

The G20 Summit in September spoke at length about the voices of developing countries in the global decision-making process.

• Better integrate the perspectives of developing countries, including LDCs, LLDCs, and SIDS, into future G20 agenda and strengthen the voice of developing countries in global decision making.
• Recognize the importance of WTO’s ‘Aid for Trade’ initiative to enable developing countries, notably LDCs, to effectively participate in global trade, including through enhanced local value creation.
• Facilitate equitable access to safe, effective, quality-assured, and affordable vaccines, therapeutics, diagnostics, and other medical countermeasures, especially in Low-and Middle-income Countries (LMICs), LDCs and SIDS.
• Accelerate actions to address environmental crises and challenges including climate change being experienced worldwide, particularly by the poorest and the most vulnerable, including in LDCs and SIDS.
• Continue to support augmentation of capabilities of all countries, including emerging economies, in particular developing countries, LDCs and SIDS, for promoting disaster and climate resilience of infrastructure systems.
• Extend strong support to Africa, including through the G20 Compact with Africa and G20 Initiative on supporting industrialization in Africa and LDCs. Hold further discussions to deepen cooperation between the G20 and other regional partners.
• Increase resource needs of the Financial Action Task Force (FATF) and FATF Style Regional Bodies and encourage others to do the same, including for the next round of mutual evaluations. Timely and global implementation of the revised FATF Standards on the transparency of beneficial ownership of legal persons and legal arrangements to make it more difficult for criminals to hide and launder ill-gotten gains.

Seventeen years ago today, the Nepal government and the then Communist Party of Nepal (Maoist) signed the Comprehensive Peace Accord (CPA), declaring an end to the decade-long armed conflict. 

It was the dawn of a new political chapter for Nepal. The CPA led to the epochal political changes, such as abolition of centuries-old monarchy in 2008 and promulgation of new federal republican constitution in 2015. 

Under the new constitution, Nepal has already held two periodic elections of three-tier governments—federal, provincial and local governments. The Maoist party has embraced parliamentary democracy and the management of Maoist combatants, one of the vital tasks of the peace process, has been completed. 

Among other notable progress are greater representation of ethnic communities and women in state mechanisms and devolution of powers to the local level with decentralization of services. In fact, Nepal today is regarded as one of the most open, democratic, and inclusive societies in South Asia.

But it has not been all positives. 

The issue of transitional justice still remains pending and thousands of conflict victims are still awaiting justice; the social-economic transformation envisaged by the CPA still eludes the country; and the major parties’ failure to deliver, mainly on service delivery and economic fronts, has caused frustrations among people.

Put simply, Nepal continues to grapple with the age-old problems caused by poor political leadership. The country’s economy is in shambles, corruption is entrenched, and job opportunities are hard to come by. Successive governments, all led by the three big parties—Nepali Congress, CPN-UML, and CPN (Maoist Center)—at one time or another, have failed to address these issues. 

This failure has eroded people’s faith in the system, and some traditional rightist forces are trying to exploit this crisis of trust to undo the progress made so far. Talks about restoration of monarchy, dismantling federalism and reverting to a Hindu nation are gaining traction. 

Of late, there have been systematic efforts to sabotage the 2015 constitution, one of the major achievements of CPA. Already, there are indications of fraying social harmony and religious tolerance, something unprecedented in Nepal’s recent political history. 

“It is imperative that all political parties that champion democracy and republicanism  collectively stand up against regressive elements,” says CPN-UML leader Deepak Prakash Bhatta. 

He warns if the transitional period that began with signing of CPA prolongs, all the political gains for which the people and political parties fought for could be at risk.   Suman Adhikari, a conflict-victim, says leaders of major political parties used the peace process as a ladder to reach to power and abandoned the agenda of conflict-victims. 

“We are fed up with hollow promises and rhetorics. There has been little progress when it comes to providing justice to us.”  Adhikari adds: “The issue of weapon management was a threat to the politicians, so they resolved it immediately. But when it comes to us powerless victims, they are happy to stay quiet.”  The two transitional justice bodies formed to investigate and settle the conflict-era crimes are without any office-bearers for a long time, while the laws governing the transitional justice process also need amendments.  

But even after the amendments to the laws and formation of a fully functioning all-acceptable transitional justice commissions, it could take years to investigate all war-era cases.  Although Prime Minister Pushpa Kamal Dahal is seeking the support of political parties as well as the international community to conclude the peace process, it is easier said than done. 

Dahal wants to conclude the peace process under his leadership because he and other senior leaders from his party are the ones facing cases of war crimes and human rights violations. The Maoist prime minister wants to ensure safe landing for himself and his party leaders who could technically be arrested anywhere under the universal jurisdiction of human rights. 

While addressing the 78th United Nations General Assembly (UNGA) earlier this year, Dahal sought the support of the international community to conclude the peace process. He repeated this during his Beijing trip after meeting with communist party leaders as well. Amid pressure not to opt for blanket amnesty when it comes to cases of serious crimes and human rights violation, the prime minister has been assuring the international community that the transitional justice process will be in line with the international practice. 

“We are now closer to logically concluding our unique, nationally owned, and home-grown peace process. Completing the remaining tasks of transitional justice is on my top political agenda,” Dahal told the UNGA. “As prime minister and a co-signatory of the Comprehensive Peace Accord, I have been making serious efforts to bridge the gap and gaps and build consensus among key stakeholders.”

But not everyone is convinced, certainly not the conflict victims.  

“We are the major stakeholder in the transitional justice process, and yet they are the ones whose concerns and voices are being neglected by the government and major political parties,” says Adhikari. The Dahal-led government has presented an amendment bill related to transitional justice in Parliament which has again drawn criticisms from the international community for its shortcomings. 

The prime minister has defended the bill stating that it evolved through a wider consultative process, while taking a victim-centric approach and recognizing reparation as victims’ right.

In his address to the UNGA, Prime Minister Dahal said: “There will be no blanket amnesty for serious violations of human rights. The ultimate objective is to establish an enduring peace in the country and foster harmony in society through peace, justice and reconciliation.”  He also appealed to the international community for their goodwill and support to the conclusion of the final leg of the peace process and to duly recognize this rare example of successful conflict transformation.

But forging a consensus on the transitional justice process is still an uphill task for the Dahal government. He has yet to bring other political parties, including the main opposition, CPN-UML, into confidence on the contents of the law. Dahal worked very hard to endorse the transitional justice bill from the winter session of Parliament but he failed to do so.

Observers say Prime Minister Dahal may not have his moment of glory by concluding the peace process so long as the other two main political parties—Nepali Congress and CPN-UML—continue to use the issue of transitional justice as a political bargaining chip.    All political parties must take the onus to deliver justice to the conflict victims, but this has not been the case so far. 

Political analyst Chandra Dev Bhatta says the CPA only managed direct confrontation between the state and non-state actors, while giving birth to a society-centric conflict.  “Nepali politics and parties failed to embrace the spirit of the peace accord. As a result, there are still problems in society. Some of the residues of conflict are yet to be addressed which is a prerequisite to achieve a durable peace in society.”  Nepal needs a wider political consensus to conclude its long-drawn-out peace process and to eventually embrace the path of growth and prosperity, which has not happened in the past 17 years.

The government decision to ban TikTok, citing disruption of social harmony, family structure  and goodwill, has left everyone puzzled. There is no clear answer as to why the government abruptly shut down the popular video-sharing app. This move contradicts constitutional provisions and international commitments to safeguard freedom of speech and expression.  

While the government has the authority to ban apps affecting national security, social harmony, and law and order, the lack of clear reasons for the TikTok ban is problematic. Currently facing 10 writ petitions in the Supreme Court, and more in the pipeline, the government's decision is under scrutiny. Advocate Dinesh Tripathi, one of the petitioners, warns that the government may extend the ban on other apps as well.

The misuse of TikTok has been a persistent concern for government agencies, prompting continuous discussions between TikTok and the Nepal government regarding content regulation.  On 3 November, TikTok representatives presented a detailed working process, moderation and model of collaboration to the Nepal government. Earlier, an internet safety summit was organized in the presence of TikTok representatives, civil society and government officials. Similarly, TikTok has signed a Memorandum of Understanding (MoU) with Nepal Telecommunication Authority to create awareness about the misuse of the platform.

Also in June, TikTok provided access to the Trust and Enforcement Tool to Nepal to ensure the reporting of content that is in violation of local laws. TikTok says it has since removed around three million videos by Nepali users for violating community standards. It appears that the government's desire for complete control over the so-called objectionable content led to the ban.

According to one government source, the ban was prompted after TikTok refused to remove all the videos that were flagged by the government.  The government's decision lacks transparency, with no specific reasons shared with the public. Three major political parties—Nepali Congress, CPN-UML and CPN (Maoist Center)—have by and large remained mum about the ban. Minister for Information and Communication Technology Rekha Sharma has suggested that there was an all-party consensus to ban TikTok. 

The silent position taken by major parties backs Sharma’s claim of all-party consensus. While some Congress leaders including Gagan Kumar Thapa, Bishwa Prakash Sharma and Shekhar Koirala have opposed the decision, the party President, Sher Bahadur Deuba, has not said anything.

In an all-party meeting held a few days ago, leaders expressed their concerns over the use of TikTok to disturb social harmony and religious tolerance. Following the discussion, the government came up with social media guidelines, asking the public to avoid the misuse of social media. Observers say, major parties may have agreed to ban TikTok after new political parties and rabble-rousers were heavily featured on TikTok clips where they defamed politicians and government. Security agencies have also expressed concerns about the misuse of TikTok to create social discord. A senior security officer says there were several videos on TikTok that created discord and disharmony among various religious and ethnic groups. 

But former deputy inspector general of Nepal Police, Hemanta Malla, says the government’s ban on TikTok cannot be justified. He notes that  there are far more objectionable contents on other platforms. Some experts say geopolitical factors may also have influenced the government’s decision to ban TikTok, as there have been global concerns about TikTok's potential threat to data security.  The ban has particularly hit small businesses, especially those led by women. For them, TikTok was a crucial platform to promote their products and brands. The app also helped to promote Nepal’s tourism destinations.

After India along with 59 Chinese-owned apps  banned TikTok in 2020, Nepal was the largest market for the platform.  The ban by India came shortly after a clash between Indian and Chinese troops at a disputed Himalayan border killed 20 Indian soldiers and injured dozens. 

As TikTok does not want to lose its user base in Nepal, its representatives are in Kathmandu to negotiate the lift on the ban. Experts suggest regulating the platform instead of a complete ban, but government officials argue that Nepal lacks sufficient mechanisms for content regulation. The plea for social media giants to open offices in Kathmandu echoes the need for better regulation rather than outright prohibition.

According to news agency AP, TikTok, owned by China’s ByteDance, has faced scrutiny in a number of countries because of concerns that Beijing could use the app to harvest user data or advance its interests. 

Countries including the United States, Britain and New Zealand have banned the app on government phones despite TikTok repeatedly denying that it has ever shared data with the Chinese government and would not do so if asked, according to AP.  It has 1 billion uses globally. Nepal has banned all pornographic sites in 2018. 

TikTok, owned by Chinese technology company Bytedance, has long maintained that it doesn’t share data with the Chinese government. It says a project to store American user data in the U.S. will put it out of China’s reach and it disputes accusations that it collects any more user data than U.S. social media companies do, according to AP. 

Prime Minister Pushpa Kamal Dahal on Friday addressed the second Voice of Global South Summit organized by India.  Addressing the session, PM Dahal said that the world is facing unprecedented crises generated by the COVID-19 pandemic, climate change, and deepening geo-political complexities. They have impacts on food and nutrition, health and education, economy and environment, and peace and security, he said.  More than 125 countries from the Global South attended the Summit. 

Developing countries especially the LDCs are the most affected ones by these crises. Rising food and energy prices, tightening financial conditions, and persistent cycles of vulnerabilities continue to add to their worries, PM Dahal said, many countries of the Global South are under unsustainable debt burden which is straining investments in health, education, social justice, and other pressing national priorities. 

We believe that in order to address the challenges facing the world, the international community must focus on common goals of peace, progress and prosperity. For this, building of trust, promoting partnership and collaboration and working in solidarity remain crucial, PM Dahal said.  We need to champion inclusive and sustainable global growth, in which the Global South receives a fair share to eradicate poverty and give their people a decent life, PM Dahal said, that Nepal remains steadfast in its commitment to multilateralism with the United Nations at the center.

Nonetheless, we believe that the existing global governance architecture needs a timely reform to make it relevant and reflective of today’s realities. At the same time, reform of the international financial architecture should be a top priority with full consideration to the voice of the countries in special situations, including LDCs, LLDCs and SIDS, PM Dahal said. 

“Climate change remains a grave threat to humanity. Climate-vulnerable countries like Nepal have been bearing the burden of climate change. The effect of climate change on the Himalayas has posed a severe threat to the lives and livelihoods of millions of people living in our region. We all must commit ourselves to achieving the set ambitions in a time-bound manner.” 

PM Dahal further said that Nepal is graduating from the LDC status by 2026 and we are committed to making this process smooth, sustainable, and irreversible.  Sustainable Development Goals remain at the center of our development vision and priorities with integration into national policies and plans. But even the progress that we achieved so far has been threatened by the multitude of global crises, he said.  “Hence, we have been calling for an enhanced level of international support from our partners such as development assistance, FDI, trade facilitation, technology transfer and technical assistance. The South-South cooperation should also be forthcoming to lifting the neediest countries.” 

Addressing the Summit Indian Prime Minister Narendra Modi said that Global South wants its autonomy and it is ready to take up greater responsibility in global matters. The Indian PM said that Global South wants its voice in global governance.  “Geographically, the Global South has always existed, but it is getting a voice for the first time, and this is because of joint efforts. We are more than 100 countries but our priorities are similar,” he said.   He also spoke of the 5 ‘Cs’, a commitment to which would power the growth of these countries.  The 5 ‘Cs’ are “consultation, cooperation, communication, creativity and capacity building”. 

The foreign ministers’ session deliberated on major global agendas, including climate change, energy transition, technological transformation, and restoring trust in multilateralism. Addressing the Summit, S Jaishankar, Minister for External Affairs of India, said India took over its G20 Presidency in the backdrop of a very challenging global, and in its Presidency, India’s anchor was the Global South.  Its voices inspired our priorities, fueled our efforts, and galvanized a path-breaking consensus, he said.  

Recognizing our shared past, the Global South will continue to make efforts for One Earth and to strengthen the voices of the developing countries, the Indian minister said, as one family, the Global South will continue to act with everyone’s interests in mind and drive transformation and building synergies.  

In the Summit, India has announced some initiatives. One of them is the Global South Centre of Excellence which will work as a think tank and will also work as a repository of knowledge and development initiatives in order to interface with the Global South and seek ways to forge collaboration with countries in this region.  

India is all set to host the second Voice of Global South Summit on Friday in a virtual formation. Prime Minister Pushpa Kamal Dahal is likely to attend the Summit.  

Earlier, India had hosted the inaugural Voice of Global South Summit (VOGSS) on 12-13 January 2023, in a virtual format. This unique initiative brought together 125 countries of the Global South to share their perspectives and priorities on a common platform, said India’s Ministry of External Affairs.

Throughout its G20 Presidency, India has worked to ensure that the concerns of the Global South receive due cognizance and that the priorities of the Global South were duly factored in finding solutions to the most pressing global challenges.

The 2nd VOGSS would focus on sharing with countries of the Global South the key outcomes achieved in various G20 meetings over the course of India’s Presidency, said the press release issued by India.

The challenges posed by global developments are also likely to be discussed. Further, the Summit will serve as a platform to discuss ways to sustain the momentum generated towards our common aspiration of a more inclusive, representative, and progressive world order, reads the press release.

Head of State from Global South will attend the inaugural session which will be chaired by Indian Prime Minister Narendra Modi. 

The theme of the Inaugural Leaders’ Session is "Together, for Everyone’s Growth, with Everyone’s Trust” and that of the Concluding Leaders’ Session is "Global South: Together for One Future”.

In addition, there will be 8 Ministerial Sessions, with the following themes:

· Foreign Ministers’ Session on "India & the Global South: Emerging Together for a Better Future”

· Education Ministers’ Session on "Making Human Resources Future Ready”

· Finance Ministers’ Session on "Financing People-Centric Development”

· Environment Ministers’ Session on "Sustainable Solutions for Climate Resilience and Climate Finance”

· Foreign Ministers’ Session on "Global South and One Development”

· Energy Ministers’ Session on "Affordable & Inclusive Energy Transition for Sustainable Development”

· Health Ministers’ Session on "Solutions from the Global South for One Health”

· Commerce / Trade Ministers’ Session on "Global South & Resilient Supply Chains”

 Last year, Nepal’s then Finance Minister Bishnu Poudel attended the Voice of Global South Summit. And, Nepal had attended the meeting of the Finance Tasks force held during the G-20 Summit. 

Amid the geopolitical tumult, American President Joe Biden and Chinese President Xi Jinping held a historic talk that focused on a wide range of international, regional, and bilateral issues. The two major powers held talks at a time when the crisis in the Middle East was escalating and the Russia-Ukraine war continued.  

According to the Voice of America report, Biden and Xi have agreement on some vital issues. Xi agreed to help curb the production of the illicit fentanyl that is a deadly component of drugs sold in the United States. The two leaders have agreed to resume high-level military communications; China had severed the military hotline after then US speaker Nancy Pelosi’s visit to Taiwan in 2022. The relationship was further soured after the US accused China of sending a spy balloon in its airspace.

In the conversation, Joe Biden said their discussion was straightforward and frank, and I have always appreciated them. A readout from White House said: “We have not always agreed, which was not a surprise to anyone, but our meetings have always been candid, straightforward, and useful.”  I value our conversation because I think it is paramount that you and I understand each other clearly, leader to leader, with no misconceptions or miscommunication, Biden said, we have to ensure that competition does not veer into conflict, and we also have to manage it responsibly—that competition.

Regarding the understanding between two countries to resume military communication, Biden said: “We are back to direct, open, clear and direct communication.” The American President characterized the talks as some of the most constructive and productive discussions they have had. But Biden said that he still considers Xi as a dictator which is likely to annoy Beijing. He said: “Well, look, he is a dictator in the sense that he is a guy who runs a country that is a community country that is based on a form of government totally different from ours.”

President Biden reiterated the US One China policy in the meeting with Xi. "I reiterated what I have said since I have become president, and what every previous president of late has said: That we maintain an agreement that there is One China Policy." 

According to The Global Times, on the Taiwan question, Xi emphasized that it remains the most important and sensitive issue in China-US relations, and China values the positive statements made by the US side during the Bali meeting. The US should implement its stance of not supporting "Taiwan independence" into concrete actions, stop arming Taiwan, and support China's peaceful reunification, according to the Chinese president, The Global Times reports.

According to Chinese news agency, Xinhua, Xi called on China and the United States to assume a new vision and build together five pillars for bilateral relations. Xinhua report says: China is consistently committed to having a stable, healthy and sustainable relationship with the United States, and China has interests that must be safeguarded, principles that must be upheld, and red lines that must not be crossed.  And the critical global challenges we face, from climate change to counternarcotics to artificial intelligence, demand our joint efforts, Biden said.

Xi further added that the China-US relationship, which is the most important bilateral relationship in the world, should be perceived and envisioned in a broad context of the—accelerating global transformation unseen in a century. It should develop in a way that benefits our two peoples and fulfills our responsibility for human progress, Xi said.

The Chinese President further added that major-country competition is not the prevailing trend of current times and cannot solve the problems facing China and the United States or the world at large. Planet Earth is big enough for the two countries to succeed, and one country’s success is an opportunity for the other. We should heavy responsibilities for the two people, for the world, and for history, Xi said, I look forward to having an in-depth exchange of views and reach new—reach new understandings with your on strategic and overarching issues critical to the directions of China-US relations and on major issues affecting world peace and development.

Ahead of COP28, the two leaders discussed climate change issues. According to The Global Times, they expressed their joint commitment to promoting the success of the COP28 and announced the China-US Enhancing Climate Action 2020s working group to accelerate specific climate actions. Despite the differences on a host of issues, China and America have similar positions on several climate change issues which has not gone well in the developing countries.

Chinese experts have said the talk continues the tone set in Bali last year. Speaking to The Global Times, Diao Daming, associate professor at the Renmin University of China said: Looking forward, it will be important to see whether the US can truly achieve a correct understanding. If the US can adjust its understanding and truly adopt a responsible perspective, recognizing each other’s position, effectively managing differences, and advancing mutually beneficial cooperation, it will further stabilize the relations between the two countries.” 

The United States of America has requested Nepal to become a member of the Open Government Partnership (OGP), a multilateral initiative that aims to secure concrete commitments from governments to promote transparency, fight corruption, and harness new technologies to strengthen governance.

Till now, more than 55 countries have joined the OGP. At a meeting with Minister for Foreign Affairs Narayan Prakash Saud at Washington, DC, USAID Administrator Samantha Power discussed the matter.

It is not clear how Nepal reacted to the US offer. USAID Spokesperson Jessica Jennings said: Administrator Power reinforced the US government’s partnership to further strengthen the relationship with Nepal and recognized Nepal’s democratic progress, including potential membership in the Open Government Partnership.

During the conversation, the duo discussed the impact of USAID’s long-standing investment in Nepal and discussed the new development priorities.  According to the spokesperson, Administrator Power expressed commitment to advancing Nepal’s inclusive economic development and highlighted USAID’s work with the Nepal government and private sector to unlock the country’s investment potential. After the bilateral talks with his American counterpart, Foreign Minister NP Saud is holding talks with heads of USAID, MCC and other development agencies.

Saud also held a meeting with US International Development Finance Corporation's CEO Scott Nathan where he highlighted the measures taken by Nepal to enhance private investment in various sectors of the economy and urged DFC to encourage the American private sector to invest in Nepal.  

CEO Nathan said DFC wants more projects in Nepal, including in infrastructure development, energy, and agro-business, apart from its current involvement with SMEs. He noted that DFC is not only involved in financing, but also helps to create the ecosystem for private-sector development.

Minister Saud also participated in a talk program titled Nepal’s Foreign Policy Outlook hosted by the United States Institute of Peace. Speaking about Nepal’s foreign policy orientation, Minister Saud stressed Nepal’s pursuit of an independent foreign policy which is based on the Charter of the United Nations, non-alignment, and principles of Panchasheel. “Our conduct of external relations is based on a balanced and independent outlook, which is rooted in the historical fact that we were among the few countries that always remained independent, free from any colonial rule,” he said.

Highlighting Nepal’s political transformation of historic proportions, the Minister said, “We ended armed conflict in the country by establishing a home-grown peace process tailored to our requirements. We were able to settle differences by making a democratic constitution. That happened in Nepal. In the country of the Buddha, peace prevailed; democracy prevailed. In this journey, the support from our partners like the USA was important.”

Foreign Minister Narayan Prakash Saud held talks with US Secretary of State Antony J Blinken in Washington, DC on Monday, focusing mainly on matters of bilateral, regional and international concerns, including the Millennium Challenge Corporation (MCC) compact, bilateral cooperation in multilateral forums and the unfolding situation in the Mideast. 

The high-level talks in the American capital, which come in the wake of a series of visits by senior US officials to Nepal, bear special significance, also because opportunities for Nepal’s foreign ministers to engage in bilateral talks with the US are relatively rare.

Before Saud, his predecessor, Pradeep Kumar Gyawali, had held official meetings with the then American Secretary of State Mike Pompeo in 2018. However, Foreign Minister Gyawali’s visit courted criticism as some leaders within his own party accused him of aligning with America’s Indo-Pacific Strategy (IPS). Importantly, there has been no reciprocal visit by a US Secretary of State to Nepal since Colin Powell’s visit in 2002.

Matthew Miller, spokesperson at the Department of State, said Saud and Blinken highlighted the ‘recently launched $500m Millennium Challenge Corporation Compact that will build infrastructure, increase access to electricity and support cross-border power trade.’ The Nepali Embassy in Washington stated in a press release that Secretary of State Blinken expressed the US wish to “see Nepal as a strong and prosperous democracy”.

The two sides also exchanged views on Nepal-US cooperation in multilateral forums, and other matters of regional and global concerns, including the situation in the Mideast, per the statement. The United States and Nepal established diplomatic relations in 1948, and the US has consistently been Nepal’s largest donor country. US policy objectives in Nepal have revolved around the promotion of a peaceful, prosperous, resilient and democratic nation, observers say. 

Over the past decade, American engagement with Nepal has substantially increased, notably seen in increased financial support through USAID and MCC, technical assistance in trade, deepened cooperation in security and defense, humanitarian assistance and disaster response.  This expansion in cooperation is reflected in the growing number of US visits to Nepal, according to the experts. 

A growing rivalry between the US and China, the Russia-Ukraine conflict, the US withdrawal from Afghanistan, climate change and other global concerns have prompted the US to intensify its engagement with Nepal. To counter the growing influence of China in the Indo-Pacific region, the US introduced the IPS, first unveiled by the Trump Administration in 2018 and further developed by the Joe Biden administration in 2022.

A vital role in the Indo-Pacific

Although Nepal is not explicitly mentioned in the IPS, the Trump administration recognized Nepal's potential central role in the Indo-Pacific in 2018. As a result, Nepal is considered a high-priority country in the region for US policymakers. Nevertheless, Nepal has consistently maintained that it does not intend to become a part of the IPS, despite all bilateral cooperation and assistance between Nepal and the US operating within its broader framework.

A key US priority in Nepal is the successful completion of projects under MCC, which entered its entry into force phase in August, accompanied by a five-year deadline. Two months have already passed since the deadline began, but there is much work still to be done. US officials view the MCC compact as a significant milestone in the 75-year partnership between the two countries. Given China’s strong opposition to the compact, the US anticipates potential roadblocks and is making additional efforts to ensure its smooth implementation.

In the meeting with Foreign Minister Saud, Secretary of State Blinken underlined the importance of timely implementations of projects under MCC. After the meeting, Blinken said, “I met with Nepali Foreign Minister Narayan Prakash Saud to highlight US investment in Nepal, including a $500m compact from MCC to support economic growth.”

As China advances its debt-lending mega-project, the Belt and Road Initiative (BRI), in an attempt to attract developing countries, the US aims to showcase the benefits of MCC projects, funded by US grants and substantial financial contributions from the government of Nepal. Simultaneously, the US perceives strong anti-MCC sentiments in Nepal as reflective of growing Chinese influence in the country. For their part, Chinese analysts say they are not opposed to American projects but seek a level-playing field for all players in development cooperation.

Combating corruption is another top US priority in Nepal. The US is closely monitoring developments like investigations into corruption cases, including the Bhutanese refugee scam. US Anti-Corruption Coordinator Richara Nephew visited Nepal in August of this year, engaging with representatives of anti-corruption institutions, law enforcement and civil society.

President Joe Biden has framed current global tensions as a struggle between democracy and autocracy. Since 2021, the Biden administration has been hosting the Summit for Democracy, highlighting the ability of democracies to address the world’s most pressing challenges and deliver for their citizens. Nepal is one of the few South Asian countries invited to participate in the summit.

Under the Democracy Delivers Initiative launched in 2022, the US provides support to mobilize resources for countries undergoing democratic renewal, maximizing the likelihood that their democratic gains endure. The US recently pledged over $145m, with more than $35m in new funding through USAID for the Democracy Delivers cohort, which includes Nepal. Additionally, the US’ International Development Finance Corporation announced $110m to support new private sector-led projects.

In 2022, the government of Nepali and USAID signed a new development cooperation grant amounting to $659m spread over a five-year period. This February, USAID Chief Samantha Power announced that USAID would provide up to $58.5m to advance democratic progress in Nepal. Following transparent and peaceful elections in 2022, Nepal has an opportunity to strengthen federalism, advance the inclusion of women and marginalized communities, empower its young people and demonstrate that democracy can deliver for its citizens.#

In addition to these initiatives, the US has intensified its defense cooperation with the Nepali Army and other security agencies. 

Saud’s visit to the US should be analyzed in the context of a growing engagement between the two countries and rising geopolitical tensions. Nepal’s two close neighbors India and China will be closely watching Saud’s visit to America. There is a convergence between the US and India on the issue of countering Chinese influence in Nepal, while China is more concerned over growing American influence in Nepal.  

An important partner

Antony Blinken, US Secretary of State

We have 76 years of diplomatic relations between Nepal and the United States, and Nepal is today a very valued partner in the Indo-Pacific. We’re working together to ensure that we have a free, open, secure, prosperous region. And in so many ways, Nepal is leading, not just in the region but globally, as a very constructive actor in international organizations—of course, with so many peacekeepers, who are trying to help people move from conflict to peace around the world. And in our own bilateral relationship, we’re working to deepen it and strengthen it even more, particularly with more people-to-people as well as economic ties.