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3 Advantages and Disadvantages of MCC in Nepal (Millennium Challenge Corporation)

3 Advantages and Disadvantages of MCC in Nepal

What is MCC?

 The Millennium challenge corporation is a United States foreign aid agency established by the U.S. Congress in 2004. MCC is an organization that develops poor and developing countries through economic growth. The main objective of MCC is to remove poverty from developing and underdeveloped countries. JONATHAN NASH is the present CEO of Millennium challenge corporation. MCC's total budget is 17 Arba. MCC targets to sign a 500$ million compact with the Government of Nepal. The main aim of MCC is to maintain road quality, increase hydropower, accelerate economic growth, and reduce poverty.

Advantages of MMC in Nepal 

i. Reduce poverty: Nepal is one of the poorest countries in the world. According to 2018/19, 18.7 % of the people of Nepal are suffering from Poverty. MCC plays an important role to reduce poverty in Nepal. MCC helps to increase economic growth which directly reduces the poverty line in Nepal. It is measured in terms of an increase in real GDP and GNP over time or an increase in per-capital income.

ii. Improvement in hydroelectricity: Nepal has no fuel, oil or gas, and coal reserve but Nepal has a high potential for hydroelectricity. Nepal can consume 50000 MW in hydroelectricity but till now Nepal could not provide electricity for all Nepalese citizens. They buy electricity from other Neighbour countries like; India. If Nepal approves MCC for the development. MCC makes the first priority in hydroelectricity. It utilizes all the water resources for hydroelectricity. it provides electricity in every corner of Nepal at the cheapest price. MCC's main project is to increase domestic electricity all over Nepal. The project will expand and increase the high-voltage electricity transmission network to support new investment in the generation that unlocks Nepal's hydropower potential.

iii. Improvement of transportation: The main problem in Nepal is transportation. In many rural areas, there is no proper transportation like the road. If there is proper transportation in rural areas all the people can access the urban area and improvement in the rural areas. MCC develop the transportation system in Nepal. MCC helps to provide training for the Department of Roads and Roads Boards to improve the administration of road maintenance. MCC project is to make 305 kilometers of the country's strategic roads networks.

Disadvantages of MCC in Nepal:

i. No control of government law:  Nowadays MCC is a current problem in Nepal. Till now MCC is not approved by Nepal Government and t is so hard to approve directly because Nepalese citizens are against MCC. If the Parliament of Nepal approves the MCC, it will be the first priority of the constitution of Nepal. It cannot control by the government. MCC can rule over Nepal's Government. MCC cannot control by Nepal's Government.

ii. Full rights of natural resources:

iii. Against of Neighbour: As you know that MCC is a United States of America Organization. Nepal's neighboring country China is against America. There is no good relationship between China and America from many years ago. If the MCC is approved in Nepal it directly affects China. Whatever goods and services are imported from China to Nepal all the import of goods and services is also close. It directly affects the relationship between Nepal and China after MCC approval.

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