8 April 2020, NIICE Commentary 3976
Sweta Khadka
Nepalese Parliament’s decision on Millennium Challenge Corporation (MCC)’s endorsement prolongs as the leaders of Nepal Communist Party (NCP) remain divided. Nepalese Prime Minister KP Sharma Oli struggles to build consensus among senior leaders of NCP who express their grave concern on its linkages with Indo-Pacific Strategy while the US threatens to withdraw the grant if Nepal fails to endorse the grant within the stipulated timeframe.
Geo-Politics
It is evident that the polarization on MCC bears linkages with political atmosphere created in the aftermath of China’s Belt and Road Initiative (BRI). Nepal and China have embarked upon an intimate relationship against the back drop of BRI. Advancement of relation with China at a time when it is a regional giant and emerging global power has not gone unnoticed. Post BRI, through chain of events, significant efforts have been jointly made by Nepal and China to deepen their bilateral ties. US’s Indo-Pacific Strategy MCC were, therefore, not mere coincidences.
China holds a significant position in the global politics, and therefore, any move by it is ought to be observed and responded accordingly by the US, the global power. Further, the geographical positioning of Nepal itself is of great importance to the US and China, as Nepal is strategically located between Indian subcontinent and Central Asia, placing it to play the role of an intermediary buffer in both the regions. These regions are expected to be the heart of world economy in coming decades, and therefore, having an influence in this region has immense importance.
Jagdish Sharma in his book Nepal’s struggle for existence states, “The geo-strategic position of Nepal emerged with the discovery of Kerung pass during the Seventh Century which linked Nepal directly with Tibet”. Kerung pass replaced the existing route to Tibet via Kashmir Valley and made Nepal a strategic buffer between India and (Tibet) China. Nepal’s position, for China changed from a small remote neighbor to a strategic nation. Rose and Fisher highlighted in their work The Politics of Nepal: Persistence and Change in an Asian Monarchy that, “the opening of Kerong pass changed the position of Kathmandu Valley radically from remote corner to strategic way station with the capacity to exercise a high degree of control over traffic between the markets of India and those beyond the Himalayas”.
US-China Rivalry in Nepal
China and the US, fully aware of the strategic importance of Nepal, have accordingly extended their diplomatic engagement in various forms, at different times. It is believed that the US have directed its foreign policy towards Indo-Pacific to contain China, if not counter it. In response to the recent stir created on its Indo Pacific Strategy and MCC, American embassy, Kathmandu clearly stated that MCC is the integral part of Indo-Pacific Strategy; a policy adopted by the US towards Asia Pacific nations, including Nepal, to exert in these nations and region at large, to prevent them from falling into China’s dominance. Dominance on this region is peculiarly important because of contentious South China Sea, which holds immense importance both commercially and politically. Enormous funds channeled through MCC are clearly to strengthen its relations with Nepal in order to prevent it from inclining towards China excessively.
China’s understanding of Nepal has always been consistent and clear. Mao Zedong, the then Chairman of Communist Party of China and founding father of People’s Republic of China, realizing the importance of Himalayan country envisioned connecting Nepal, Bhutan, Arunachal, Sikkim and Ladakh through railway. Therefore, the concept of railway connecting Nepal and China is not completely new. Although Mao’s acumen as a leader for envisioning such a policy was applauded, it could not be materialized because such vision demanded enormous resource. China was struggling with poverty and starvation and was not in the position to afford. Interesting, the only highway between Nepal from Tibet (China), Arniko Highway (via Kodari pass) was also constructed during his tenure. It was made into reality at the time when China was struggling with poverty and starvation. However, Xi Jinping’s new and modern China, in every way, has the capacity to turn its dreams into reality. Extracting from Mao’s vision and taking inspiration from ancient silk route, Xi’s China has laid down the grandiose BRI. With regard to South Asia, China has identified Myanmar, Pakistan and Nepal as the entry points and has concentrated efforts in strengthening relations. Nepal is important to China for it is the buffer and entry point to South Asia. Therefore, the motivation behind China’s desire for strong relations and the US’s growing interest is crystal clear.
Playing the role of an intermediary between the Indian sub-continent and Central Asia has exerted a powerful influence on Nepal granting it a powerful bargaining point. Every scenario has its own peculiarity comprising of both opportunity and challenges which needs to be comprehended fully in order to device strategies and produce results to one’s benefit. It is important to understand that every relation in politics; bilateral or multilateral is born out of need. There is always a point of ‘exchange’ which allows for mutual benefit. It falls on our shoulder to identify that ‘point of exchange’ with our neighbors and other global powers lay out our diplomatic framework.
India and China are regional powers and converge on few areas with regard to West. Having suffered from colonization, both do not receive western influence well. China’s investment to promote Buddhism, Confucianism and Chinese cultural around the globe and Indian Prime Minister Modi’s open adherence of Hinduism, both are somewhat directed towards curbing the western influence in Asian regions. Hence, Nepal needs to strike a balance between both the regional and the global power. Therefore, it is crucial that Nepal to find the common grounds with India and China in such a way that it addresses their core concerns while allowing room for Nepal to exercise its independent foreign policy with other great powers.
