Engineer Dipendra Kandel claims that the MCC project is a innovative mission for the reduction of poverty. Commenting on social media, Kandel, known as a public innovator, said that MCC was in Nepal's interest and its money should not be returned.
He said that the United States had started smart foreign aid in 2004 with emphasis on good governance, economic growth, poverty reduction and institutional strengthening, adding that Nepal should not reject it.
This is Kandel's comment:
“As long as I remain the Public Innovator, I will keep analysing the public policies and always give my opinion about them”
Dear Nepalese Brothers and Sisters,
I would like to express again my views on Millennium Challenge Corporation’s Compact Deal which has been signed by Nepal Government with Millennium Challenge Corporation, which is based in the United States Of America.
I have been checking the inputs and outputs of this MCC deal to countries where the projects have been implemented and are being implemented. I found that the MCC has made a very good impact on the other forty-eight countries who are part of the Deal and has clearly proved its innovative mission for the reduction of poverty.
After its creation by the US congress in January 2004, the MCC has tried to deliver smart U.S. foreign assistance by focusing on good policies to promote economic growth, reducing poverty and strengthening institutions. I would like to thank the administration of the MCC for your cooperation which has empowered the economy of those countries you have worked with so far.
The MCC is committed to delivering sustainable economic growth and poverty reduction in my country Nepal throughout the entire lifecycle of its investments in Transportation and Electricity which is welcoming step to aid cooperation with The United States of America.
The MCC’s evidence based approach is rooted in the mission, and its comprehensive results framework seeks to measure, collect and report on the outputs, outcomes, and impacts of MCC investment which is completely on behalf of our country Nepal. The current project which has been agreed includes:
- Electricity Transmission Project = $398,200,000 which is equals to NRS 45,195,700,000 at the rate of 1 USD = 113.50 Nepalese Rupees.
- Transportation Project = $52,300,000 which is equals to NRS 5,936,050,000 at the rate of 1 USD = 113.50 Nepalese Rupees.
In addition to this there is also:
- a) Program Administration = $40,000,000 which is equals to NRS 4,540,000,000 at the rate of 1 USD = 113.50 Nepalese Rupees.
- b) Monitoring and Evaluation = $9,500,000 which is equals to NRs. 1,078,250,000.00 at the rate of 1 USD = 113.50 Nepalese Rupees.
The MCC has approved these investment opportunities in Nepal which can create lots of employment opportunities for the Nepalese citizens. Thus, I would like to thank the MCC and the United States Of America for this grant to our country Nepal.
In contrast, I have found many issues with this agreement and the nature of the program the MCC has for Nepal.
For example:
1. I have not found the primary reason for selecting Nepal for the MCC grant by the United States of America.
- I have not found the reason for selecting Transmissions Lines and Road Maintenance as the Deal’s main project.
- I have not found the reasons for implementing this project on top of the United Nations Development Programs SDG goal 2030 as it feels like a duplication. The United Nations Development Program (UNDP) and Sustainable Development Goals (SDGs) have been adopted by all the UN member states since 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. Thus, a different way to achieve the same goal might create implementation problems and conflicts to the already implemented program. As a result, the MCC should either give the money to UNDP, the same amount the MCC is planning to invest in Nepal, or wait until the completion of 2030 to see whether SDG’s movement actually unplug the poverty from Nepal by then.
- Our country Nepal and the MCC agreed to work for Electricity Transmission Project and Transportation Project whereas SDG no. 7 is to provide Affordable and Clean Energy and no 9 focuses on Industry, Innovation and Infrastructure. Thus, we are duplicating the same goals.
- As the United Nations Development Program (UNDP) through the SDGs, is investing huge amounts of money, having another investment from Millennium Challenge Corporation is a waste. I do not see the reason behind this inappropriate project which can lead that money to waste.
- I have not found the data of Electricity and Road Infrastructure on the data sheet which is considered to evaluate any country for an MCC grant.
The scorecard of Nepal shows Ruling Justly (Political Rights, Civil Liberties, Control Of Corruption, Government Effectiveness, Rule Of Law, and Voice and Accountability), Investing In People (Immunization Rates, Health Expenditures, Child Health, Primary Education Expenditures, Girls’ Primary Education Completion Rate, and Natural Resource Protection) and Economic Freedom (Fiscal Policy, Inflation, Regulatory Quality, Trade Policy, Gender in the Economy, Land Rights and Access, Business Start Up and Access to Credit).
However, the scorecard of Nepal does not show the indicators related to Transportation and Electricity and there is a doubt to the people and the Public innovator that without this data in the related categories, the implementation would create serious doubt whether we are going to end with multiple loans from the United States Of America and if we will actually benefit from this Deal.
- I have not found the reason for implementing this before 2030. If the government agreed to implement this before the UNDP SDGs 2015 then it would create lots of impact as there was no similar program for our country Nepal. There are 49 countries in the world including Nepal which have used the MCC’s and out of them, 10 countries have implemented this after 2015. The other 39 countries closed this deal before 2015 which seems very appropriate.
- I am not convinced with the MCC as of now as they can easily support the SDGs if they would like to make huge investment in Electricity and Transportation. As such, we can easily ask the United Nations Development Program for funding through its SDGs program. Thus, there will be no tension directed towards the Government of Nepal for not taking the MCC’s funds at this moment.
- I have found contradictions in the data collected by the MCC for Nepal with the data I have which has been prepared by the Mohammed Bin Rashid Knowledge Foundation in collaboration with United Nations Development Program as Global Knowledge Index, 2017, 2018, 2019. There is a huge difference between the recent data of the MCC which has been taken from World Bank, with Knowledge Index data which have been published by Mohammed Bin Rashid Knowledge Foundation in collaboration with the United Nations Development Program.
- Countries of our region like India and Bangladesh where there are high numbers of poor people, more so than Nepal, are not implementing this. This is another valid reason not to use it before 2030.
- Since the countries like India and Bangladesh are not adopting this policy at the moment, we will not get the regional integration option later if we like to extend the MCC through its third policy, Regional Integration. For example, the current five countries selected for Regional Investments are from western africa as follows: Benin, Burkina Faso, Ivory Coast (Côte d’Ivoire), Ghana and Niger.
In the case we would like to empower the country through the economic cooperation within the region using the Regional Integration method then it will create a problem for not having such programs in our region. Sri Lanka is found to be interested but we do not have much economic relations with the state. Our main economic collaboration is with India and Bangladesh. Thus, without having their involvement, it might create a problem in the future even though the MCC is implemented in Nepal only.
- Our country has signed a compact agreement which is clearly a 5 year agreement but MCC 2017 datas and agreement based on this needs to be updated with 2019 datas which shows our country’s government effectiveness as better.
Thus, it is important to verify the MCC and update it with the changes in data. Due to the new consistent government led by Rt. Honorable KP Sharma Oli, we are raising our economy and especially the electricity sector more empowered than 2017. Thus, we need to verify that the project related to Transmission is still required and important.
- I have serious doubts on the data published by the MCC on its website. Data taken by the MCC is completely wrong in some categories, like the population of Nepal is decreasing after 2013 and again after 2019 which is not correct as per the latest data by other sources. This kind of information can create the doubt to all other data which has been taken by the MCC and make a serious issue for the people who judge the program.
- As per the agreed project investment, we are receiving USD 398200000 for the Electricity Transmission Project. However, it is important to have more investment in Hydropower rather than in transmission first. Thus, either we exceed the investment of the MCC for hydropower or just cancel the amount for the Transmission project. Investment in Transmission projects are irrelevant. Even if we use that amount for construction of Hydropower then we can only have 113 MW of electricity which is very low.
- I have gone through the webpage of the MCC and I quote “the MCC provides time-limited grants promoting economic growth, reducing poverty, and strengthening institutions. These investments not only support stability and prosperity in partner countries but also enhance American interests”. Now, I have a serious point as I wanted to know the meaning of ‘American interests’ is in detail as it has not been written on the website.
- I again continue and I quote “With cost-effective projects, a lean staff, and an evidence-based approach, MCC is a good investment for the American people”. Now, I feel that the people who are protesting in the streets and having public debates regarding the interest of MCC in Nepal, look at such kind of information on the page and see that maybe the MCC does not have the intention of helping Nepal. This is an understandable doubt based on such quotes and it has pushed the people of Nepal against this deal.
- We can not bring American employees to Nepal and put them in danger as they have many enemies like ISIS, Al-Qaeda and the Taliban. Such groups, might use our land to react to the USA by taking action on the American people while working in the rural areas where our government cannot give them security. As a result, we might face conflict in Nepal which is not in the interest of our country and people.
To the United States Of America:
Our country is very safe as we do not have any enemies but the situation of the United States of America is different as they have many. I remain concerned that groups such as the Islamic State of Iraq and ash-Sham (ISIS) and al Qaeda have intent to carry out large-scale attacks in the U.S and against its citizens of any kind. As such, I wonder if the taliban, al qaeda and isis would ever think of coming to Nepal in order to harm American citizens working here. Unlikely as it may be, if this situation ever became the case, then this would be the worst possible outcome from the MCC Deal.
Now,
To the Government Of Nepal:
Rt. Honorable Prime Minister KP Sharma Oli, If I was the prime minister of Nepal then I would have directly cancelled this agreement. If you think that the opposition parties support this agreement, I recommend that you think very carefully about their position. This is as in politics, we have to think sometimes that others support you for their own personal gain and to make your government weaker. This is so that they might chase your government and ruin the good work you have already done. So please be careful, my prime minister.
