Kathmandu, Nepal, February 15, 2022: The government has been preparing to table the widely-debated Millennium Challenge Corporation (MCC) Compact in Parliament most likely on Wednesday amid widening differences among the political parties represent in the parliament including the ruling allies-Nepali Congress (NC) CPN (Maoist Center) CPN (United Socialist), Janata Samajwadi Party (JSP) and the Rastriya Janamorcha.
Of the five parties in the ruling coalition, only the ruling head Nepali Congress is fully committed to its ratification. The Maoist Center, Unified Socialist and Rastriya Janamorcha have opposed the idea of parliamentary ratifications sans amendments in some ‘controversial points’ of the agreement while JSP has been hesitating to come up openly over the issue of parliamentary ratification.
The main opposition CPN (UML), however, has not made public its official viewpoint over the issue of endorsing the MCC from the parliament stating that it would make its position clear only after government and its allies make decision to this effect. The UML wants to take undue political benefits from the possible division and differences among the ruling allies over the issue of endorsing the MCC from the ongoing session of the parliament.
The protesting parties and some section of the society have casted a doubt that the MCC would be a part of the Indo-Pacific Strategy (IPS) even terming that acceptance of grant under the compact would hamper bilateral relations with the northern neighbor, China. Interesting part is here that, neither neighboring China has spoken out against of the MCC compact nor the documents related to the agreement stated the controversial points as stated by the protesting parties.
The MCC agreement has become hostage of the domestic politics after political parties, particularly the leftist forces, unnecessarily politicized the already made agreement under which Nepal will receive a $500 million grant from the United States of America (USA). The debate and demand of amendments in the already signed bilateral agreement has raised serious question marks over Nepal’s credibility in the international arena, particularly in the front of receiving grants and other donations.
As it is already delayed for the parliamentary ratification of the compact, which was signed with the United States in September 2017 with the commitment to bring into implementation by 2021, the USA government has already set the February 28 deadline to decide the fate of the MCC compact in Nepal. The USA has time and again demanded Nepal’s clear viewpoint over implementing the MCC compact in Nepal, stating that it would shift to other countries if Nepal denies accepting it.
As the USA is not going to make amendments in the agreement as demanded by the Maoist Center and United Socialist, it is believed that they would irritate the ruling head Nepali Congress compelling it to seek support of the main opposition UML for ratification of the MCC from the parliament. Their expectation to continue the incumbent coalition would not achieve if the Maoist Center and the United Socialist give space to the UML to join hands with the Nepali Congress.
