Controversy over US grant project stoked by Chinese propaganda, says think tank

As the political leadership in Nepal continue to debate over the US-backed USD 500-million infrastructure grant project, a European think tank has slammed the China-inspired protests by some of Nepal's Communist parties against the Millennium Challenge Corporation (MCC) Compact. 

The MCC is a US Foreign Assistance Agency that aims to fight poverty. Nepal was the first country in the region to qualify for the program and an agreement to this effect was signed in September 2017. 

Nepal Prime Minister Sher Bahadur Deuba earlier this week had backtracked on his announcement to table US grant agreement in the country's Parliament due to threat from the leaders of the Communist Party of Nepal (Maoist Centre). 

The European Foundation for South Asian Studies (EFSAS) in its commentary said Nepal's political elite continues to prioritize its own personal political and economic interests and prospects over those of the country and its people. 

Citing the local news, the Amsterdam based think tank said the unfortunate, avoidable, and artificially created controversy over the MCC grant has, been stoked and fanned by a concerted Chinese propaganda campaign revolving around an imaginary breach of Nepalese sovereignty.

"Not only is China uncomfortable with the continuing influence that the US has in Nepal, it is equally as much the nature of the US offering - a grant aimed at benefitting the people of Nepal and which does not need to be paid back - that has irked and worried the Dragon," the think tank said. 

On Wednesday, Nepal Prime Minister Sher Bahadur Deuba went against his decision to table the MCC compact despite publicly stating on Tuesday that he had even spoken with Speaker Agni Sapkota for the tabling of the Millennium Challenge Corporation-Nepal Compact at Wednesday's House meeting, The Kathmandu Post reported. 

However, the MCC continues to hang in balance as successive governments in Nepal have failed to get the grant ratified by the parliament. Nepal's government is in favour of ratifying of grant MCC-Nepal Compact despite being aware of the fact that communist parties in the ruling coalition would stand against it. 

Media reports say Nepali communist leaders are under China's pressure to create trouble over the ratification of a million dollars worth of grant assistance by a US foreign aid agency. 

The US has conveyed to Kathmandu that it would be forced to review its relations with Nepal if the country fails to keep up with its commitments on the USD 500 million MCC grant signed nearly five years ago.