The recent statement by Netra Bikram Chand ‘Biplab,’ the General Secretary of the Communist Party of Nepal (CPN), thanking US President Donald Trump for suspending the Millennium Challenge Corporation (MCC) aid project, has once again brought Nepal’s leftist discourse on foreign aid and sovereignty into the spotlight. From the outset, the MCC compact has been one of the most controversial agreements in Nepal, sharply dividing political parties, civil society, and the general public.
Historical Context of MCC in Nepal
The MCC compact was initially signed between Nepal and the United States in 2017, during the tenure of the Nepali Congress-led government. It promised an aid package of $500 million, primarily for infrastructure projects such as road maintenance and electricity transmission. However, from its inception, leftist forces, including Biplab’s faction, opposed the agreement, arguing that it was a tool of geopolitical influence rather than a genuine development grant. The controversy intensified as suspicions arose that the compact was linked to the Indo-Pacific Strategy, potentially undermining Nepal’s non-aligned foreign policy.
In the early stages, the Nepal Communist Party (NCP) under KP Sharma Oli’s leadership had mixed views. While some factions within the NCP saw it as an opportunity for development, others were concerned about sovereignty and the conditionalities imposed by the MCC. As debates continued, the issue became one of the most divisive in Nepal’s recent political history. Even after the dissolution of the NCP, factions like Biplab’s party continued to oppose the MCC in stronger terms.
Biplab and His Party’s Stance on MCC
Netra Bikram Chand ‘Biplab’ is a well-known Maoist leader who has consistently positioned himself against imperialist and foreign interventionist policies. His Communist Party of Nepal (CPN) has been vocal in opposing any form of foreign aid that comes with conditions perceived as undermining Nepal’s sovereignty. From the very beginning, Biplab and his party rejected MCC, labeling it as an instrument of US imperialism designed to pull Nepal into a larger geopolitical rivalry.
Biplab’s opposition to MCC was also rooted in his broader political ideology, which aligns with anti-capitalist, anti-imperialist rhetoric. His party staged protests, issued statements, and mobilized against the compact. They argued that the Nepalese people should determine their own development pathways rather than being dictated by foreign powers.
The Passing of MCC and Political Maneuvering
Despite prolonged opposition, the MCC compact was ultimately ratified by Nepal’s parliament in February 2022. The government, led by Sher Bahadur Deuba of Nepali Congress, managed to push the compact through after a series of negotiations and the addition of a 12-point interpretative declaration meant to address concerns over Nepal’s sovereignty. Even though some factions of the communist movement softened their stance following these additions, Biplab’s party and other radical left forces remained firm in their rejection of the compact, arguing that the declaration did not change the fundamental nature of the agreement.
Biplab’s Thanks to Trump and the Call for Permanent Suspension
With Trump’s recent executive order leading to the suspension of MCC aid, Biplab and his party view this as a validation of their long-standing resistance. His statement, thanking Trump for the suspension, reflects the party’s position that foreign interventions—especially those perceived to come with military or strategic conditionalities—should be permanently abandoned. By urging a new model of cooperation between Nepal and the US, Biplab is advocating for a form of engagement that respects Nepal’s sovereignty while supporting economic development.
Broader Implications for Nepal’s Leftist Politics
Biplab’s stance on MCC represents a broader sentiment within Nepal’s leftist and nationalist circles. There has been a long-standing resistance to foreign aid perceived as coming with strings attached, whether from the US, China, or India. This sentiment stems from Nepal’s historical experience with colonial influences in the region, as well as contemporary concerns about maintaining an independent foreign policy.
While mainstream communist parties like the CPN-UML and the Maoist Center have at times shown pragmatic flexibility on issues like MCC, radical leftist forces like Biplab’s CPN continue to uphold a strict anti-imperialist stance. This division within Nepal’s leftist movement reflects the challenges of balancing economic development with national sovereignty concerns.
The suspension of MCC by Trump’s executive order has given Nepal’s leftist forces, particularly Biplab’s party, a sense of victory. However, the demand for permanent cancellation remains a political statement rather than a practical expectation. Whether future governments in Nepal will seek to renegotiate or completely abandon MCC remains to be seen. What is clear, however, is that Biplab and his party will continue to resist any foreign aid that they perceive as a threat to Nepal’s sovereignty, keeping alive the anti-imperialist discourse that has long defined Nepal’s radical leftist politics.