“It is only after the agreement comes into force that the actual construction work will begin,” said Khadga Bahadur Bisht, Director General of MCA-Nepal. Section 2.7 makes it clear in Section 2.7 that funds cannot be used for the military, but some readers consider Section 6.8, which provides immunity for MCC employees in “all courts in Nepal,” and fear that this could be used for military purposes. There is no doubt that diplomats should continue to enjoy diplomatic immunity, but should immunity be granted for other activities? Isn`t that a violation of Nepal`s sovereignty? At the initiative of the Nepalese government, an agreement to improve roads and energy infrastructure was signed with the MCC, for which the United States agreed to provide $500 million in grants to the country. At the time the MCC pact was signed on September 14, 2017, the Government of the Nepal Congress (NC) was in power and the Maoist party at the time (later merging with the Communist Party of Nepal (Communist-Leninist Party) and the Nepal Communist Party was part of the coalition government. However, another part of the ruling party, led by Prime Minister KP Sharma Oli, has defended the pact and wants the current session of the House of Representatives to ratify it. Nepal`s Primary Congress also voted in favour of immediate approval of the agreement. Nepal, which makes an important contribution to United Nations peacekeeping missions, maintains close relations with the United States by participating in the Enhanced International Peace Keeping Capabilities (EPIC) program. In 2004, the U.S. Congress passed legislation establishing the MCC as an independent bilateral foreign aid agency. The MCC was created as a result of dissatisfaction with other U.S. foreign aid programs to reduce poverty through economic growth.
MCC assistance is provided to low- and low-middle-income countries selected for competition. According to a report by the Congressional Research Centre, the MCC is based on the premise that economic development can only succeed if it is linked to free market policy and democratic principles. Since its inception, MCC`s Board of Directors has approved 37 compacts worth $13 billion for 29 countries starting in 2019. Since the Nepalese government did not ratify the agreement, the Ministry of Finance requested an extension of the ratification period. The subsequent implementation of MCC could also pave the way for Nepal to take advantage of U.S. research programs in all high-tech fields such as genetic engineering, automation, biotechnology, lasers, space technology and intelligent robotics. All these countries that now pride themselves on their development, such as Japan, South Korea or China, are all due to their proximity to the United States, which offers a huge market for all. However, it is not confirmed whether Nepal, by the mere ratification of the MCC, would be part of the American military alliance and that it would oppose any third country. The pros and cons of the GCC could have been discussed before the country accepted it. Most skepticism about the MCC seems more favourable to domestic consumption than to realism. Nepal must demonstrate its intelligence, talents and courage to judge whether the MCC is really in the interest of the nation or not. If there were any doubts about this, why did Nepal sign an agreement with the MCC? The GCC pact does not say it must be ratified by Nepal`s parliament.