Navigating the Complexities of the Belt and Road Initiative (BRI) and Millennium Challenge Corporation (MCC) in Nepal

Abstract

This research explores the intricate dynamics surrounding Nepal's involvement in the Belt and Road Initiative (BRI) and the Millennium Challenge Corporation (MCC), positioned amidst the strategic interests of China and the United States. Nepal's historical foreign policy, characterized by selective isolationism and international engagement, has been shaped by its geostrategic location between the two global powers, often likened to a "yam between two boulders." The BRI, launched by China in 2013, aims to bolster connectivity and infrastructure across Asia, Africa, and Europe, influencing Nepal through substantial investments and geopolitical alignments. Conversely, the MCC, initiated by the U.S. in 2017, seeks to enhance Nepal's economic stability and development, albeit amid perceptions of strategic rivalry with China's regional influence. This study employs qualitative analysis to evaluate the implications of these initiatives on Nepal's sovereignty, stability, and strategic positioning. It addresses the strategic challenges of managing Nepal's relationships with China, India, and the U.S. while maintaining its policy of non-alignment, offering insights into navigating the complexities of international collaborations in a rapidly evolving geopolitical landscape.