US provided $700m support to Nepal in five years

Since Sept 2019, the United States has provided over $700m in foreign aid through programs administered by the US Department of State and USAID. These aid initiatives have focused on health, economic growth, democracy and governance, and food security, according to Matthew Miller, spokesperson for the US Department of State.

The US is committed to deepening its long-standing partnership with Nepal in supporting its democratic resiliency, promoting economic opportunity, and protecting and advancing its sovereignty, Miller said in an email interview.  “Our robust people-to-people ties are the cornerstone of our relationship, fostering friendship, understanding, trust, and goodwill.” 

According to him, the $500m Millennium Challenge Corporation (MCC) Compact, along with the Government of Nepal’s additional $197m contribution, is another great example of the US commitment to Nepal.  He said the MCC projects will bring high quality, green energy and improved roads to the people of Nepal to power continued economic growth. “$260m in US International Development Finance Corporation loans and equity investments will support agricultural and small and medium sized enterprises, particularly women-run enterprises.” 

With the re-election of Donland Trump as president of America, foreign policy watchers in Nepal and India are keenly watching whether there will be any changes in US policy toward South Asia and Nepal. Miller assuaged the doubt by stating that the US do not have any changes in policy to announce at this point of time. Nepal recently signed the Cooperation Framework for Belt and Road Initiative (BRI), raising eyebrows in New Delhi and Washington. Both New Delhi and Washington have advised Nepal to accept the support under BRI in a transparent way to prevent debt burden. 

Commenting on Nepal’s BRI agreement, Miller said, “It is up to the Government of Nepal to determine which agreements and partnership will benefit its people.” He, however, added that such partnership between two countries should be open, transparent, and mutually beneficial. That is the basis of our partnership with Nepal, and we will continue to seek opportunities to support Nepal’s ongoing development efforts.

During Prime Minister KP Sharma Oli’s visit to China on Dec 2-5, the two sides came up with a statement which has been a topic of discussions in the political and diplomatic circles. The statement says that Nepal firmly supports China’s efforts to achieve its national reunification and opposes Taiwan’s independence. 

Though the issue of Taiwan independence and shift from one China policy to one China principle was mentioned in the joint statement during former Prime Minister Pushpa Kamal Dahal’s China visit last year, China’s “national reunification” effort is a new development.

Addressing this issue, Miller said that their approach to Taiwan has remained consistent across decades and administrations. “The United States has a longstanding one China policy, which is guided by the Taiwan Relations Act, the three Joint Communiques, and the Six Assurances.” He further added that their one China Policy is distinct from China’s one China principle. “We do not take a position on the ultimate resolution of Cross-Strait differences, and we maintain that Cross-Strait differences must be resolved peacefully, free from coercion, and in a manner acceptable to the people on both sides of the Strait.”