The biggest conflict in Nepal is coming to a head on December 14 (Mangsir 28). The  US officials who visited Nepal in November have given that day as the deadline for the current Deuba coalition government to pass the MCC international treaty or else… Prior to this official visit in September, MCC high official had visited Nepal and met with all the major political actors to support the infamous treaty that majority of Nepalese citizen have opposed to on the street and in social media. 

The situation is highly unusual for Nepal because the experts have come out with two radically and diametrically opposite analysis regarding MCC, the Millennium Challenge Corporation, a private arm of the US Indo-Pacific strategy to encircle the newly established world power China that is not acceptable to the waning current leader the USA. So, it would give us a clear view listening to an independent US professor  who has warned that is not in Nepal’s favor in any way., 

Since the democratic movement began, the new leaders have time and against short-changed the nation in cases like Mahakali Treaty or Tanakpur treaty or even the Limpiadhura and Lipulek issue of Indian excesses in Nepal. Nepal has always received the short shaft and people have now understood very well that they were all paybacks to the foreign powers that aided in creating unrest and toppling over Nepal’s traditional governance and political system. 

Of all the traitorous acts of the democratic and republican leaders, the most heinous is said to be the MCC treaty with a private American company that gives MCC the right to supersede the national constitution of Nepal. It states that nothing of MCC work, personnel or laws can be challenged or questioned by Nepal’s government. Imagine a company working in Nepal having to obey no law of Nepal, face no consequence by its personnel, have no right to question the appointment of MCC decision on choosing its staff, or questioning any of its policy. What kind of leaders would take such provisions as being in total favor of Nepal and without it Nepal will always remain a poor and backward country? 

Imagine a provision where not only the current laws of the US will have to be followed by Nepal, but also any future legal policy, which means that Nepal can do nothing that can be perceived that is a threat to the US, for instance, it cannot offer space or work to any country that the US says are its opponents, like China, Iran, North Korea or Russia. 

According to Nepal’s Constitution, any treaty regarding the natural resources of Nepal with any other country has to be approved by two-thirds majority, but the government after government has played loose with that provision to bypass it merely by the executive decision to allow a simple majority of the parliament to ratify the treaty and subject Nepal to a neo-colonial state akin to India’s states in the 15th century with the East India Company. That is what the experts have been warning about.

People are now rising and are willing to die rather than subject to a colonial status of Nepal. Things are really coming to a boiling point. There are so many clauses that are hard to accept for any person that loves Nepal. Why would Indian approval have to be taken for Nepal’s project? Why is it for Nepal to sell electricity to India rather than use it for its own industries? Why does Nepal has to give to MCC any place or area it asks for? Why can MCC cancel or withdraw the treaty any time, while Nepal has no right to make any changes or ask any questions? Even these few points are troublesome for a people who have taken pride in never having been subjugated to colonial status. That will be kept even if blood has to be shed. People have given open challenge to chop off the arms any Politian signing that treaty. We shall see if the politicians will heed people’s will.

The whole thing is fishy. When Deuba returned from UN conference, the first statement he made was that he was going to pass MCC by any means. And now, since the deadline was given by MCC, the parliament has been called on that very day and all signs point to the determination of the parties to bulldoze over the people’s sentiment, and pass it. Americans are also scheduling the meeting on the same day in the US. If development and money were the issues, China has already pledged to give three times more funds than MCC. So, let the conflict begin. This will only help cleanse Nepal of the political illness festering since BS 2046. 

MCC in Nepal, Top 10 Facts ( Source: US Embassy in Nepal)

  1. At the request of Nepal’s leaders, the U.S. government began working with Nepal in 2012 toward development of an MCC compact.
  2. Each government and every Nepali political party, when in power, has expressed a desire to conclude an MCC Compact for economic development in Nepal.
  3. The MCC project is focused purely on economic development by helping to build power lines and improve roads.
  4. There is NO military component to the MCC. In fact, U.S. law prohibits it.
  5. Nepal does not need to “join” or “sign up” for anything in order to participate in the MCC.
  6. The $500 million is a grant, with no strings attached, no interest rates, and no hidden clauses. All Nepal has to do is commit to spend the money, transparently, for the projects that have been agreed upon.
  7. Nepalis proposed and decided which projects MCC will fund in Nepal based on Nepal’s own priorities.
  8. MCC’s model requires Nepal to hire Nepalis to lead implementation of the projects.
  9. MCC project tenders are open, transparent, and available to everyone.
  10. In Nepal, as in every country where MCC works, parliamentary ratification is required and provides transparency and an opportunity for Nepalis to understand the project.

More on MCC at


The writer is a graduate of Arizona State University in Political Science. He is working as a social activist and motivational speaker for students across Nepal since 2007. 

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Nepalisite.

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