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Thursday, October 8, 2020

Controversial provisions in the MCC agreement

 

The Millennium Challenge Corporation (MCC) could be a bilateral us economic aid agency established by the U.S. Congress in 2004 that's designed to use a replacement approach toward economic aid. MCC is AN freelance U.S. foreign help agency that works to alleviate the financial conditions by providing time-limited grants supposed to push economic processes, cut back financial conditions and strengthen establishments. Within the read of its proponents, these investments not solely support stability and prosperity in partner countries, however, conjointly enhances yank interests.

History

 At the Inter-American Development Bank meeting on March fourteen, 2002, President George W. Bush mixed up a replacement compact for development with answerability for each made and poor countries. He pledged to extend development help by five-hundredths by the financial year 2006 (which, by the tip of 2004, doubled and was to double once more by 2010).[2] alternative development programs like USAID are thought to suffer from many alternative and generally conflicting goals, which frequently square measure a result of political pressures, and for not delivering semi-permanent economic enhancements. MCC was approved in 2004 with nonpartisan support. It is guiding principles are

• Competitive selection: MCC’s Board examines a country’s performance on twenty freelance and clear policy indicators and selects countries supported policy performance.

• Country-led solutions: MCC needs elite countries to spot their priorities for achieving property economic processes and financial condition reduction. Countries develop their MCC proposals in broad consultation at intervals in their society. MCC then works in a shut partnership to assist countries to refine programs.

 • Country-led implementation: once a country is awarded MCC compact, it sets up a neighborhood accountable entity to manage and superintend all aspects of implementation. Observance of funds are rigorous, clear, and sometimes managed through freelance business enterprise agents.

• Focus on results: MCC is committed to manufacturing results and guaranteeing that the yank folks have gotten an honest, come on their investment. MCC employs technically rigorous, systematic and clear ways of projected, pursuit and evaluating the impacts of its programs.


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Generally, once a bilateral agreement of equal status has been reached, the terms of both parties to the agreement are recognized by national or international treaty law. But if you look at the schedule of every article of this agreement, the government of Nepal has not mentioned that the US MCC has to abide by any condition. It is not mentioned anywhere in the agreement that it is a part of the Indo-Pacific strategy and even if the Americans themselves have clarified for the last time that it is not related to the Indo-Pacific strategy, it is most important whether it is in Nepal's interest or not. There is no evidence that the agreement is part of the Indo-Pacific Strategy. The United States should not get involved in the project, even if it is verbally or in writing, saying it is not part of the Indo-Pacific Strategy. It is important to see if this project is in the best interest. The committee formed under the convener ship of CPN (UML) Central Secretariat member Jhala Nath Khanal said that there were various ancillary agreements in the original agreement and even in those agreements there were unequal obstacles in the case of Nepal.

 • It seems only in the case of the Government of Nepal that the entire agreement has to be implemented. Although US 500 million is said to be provided under the agreement, Article 2.1 of the agreement does not exceed Rs. 45,95,000,000 / - and Article 2.2 provides Rs. 4,05,00,000 / -. Funding will be provided in two categories, not exceeding US dollars. This does not mean more than that amount, but it can mean less than that.

·         When looking at the payment process in Section 2.4, if MCC is not satisfied with the payment process, it will be paid directly to the provider of the related goods, work or service for the implementation of this program. That is, when you have to pay the seller of stone and ballast sand, the MCC will be able to pay directly. In Section 2.5, if any interest or any other income is earned from this project, the Government of Nepal has to pay or transfer all those profits to MCC.

·         Article 2.8 does not cover this project by any tax law of the Government of Nepal. All taxes will be as determined by the MCC in accordance with US law. Although the right to implement is said to be given to the Government of Nepal, it seems that the agreement has its reins in its hands. It is stated that the policy performance will be in accordance with the policy criteria prescribed in Article 307 of the MCC Act and the criteria and procedures are chosen by the MCC. The agreement does not specify what provision is made in Article 307 of the MCC Act regarding policy management. The US seems to have issued the MCC Act. For the implementation of the project, the fulfillment of all goods, works and services will be in accordance with the MCC program procurement guidelines.

·          Article 3.8 states that audit shall be conducted by a US-based accredited public audit firm selected in accordance with the MCC Audit Guidelines. Based on the audit done by the US Auditor, it has been said that there will be no obstacle for MCC Nepal to be audited by the Office of the Auditor General, that is, after the audit by the US Auditor, it will be possible to audit by the Auditor General of Nepal.

·         In the case of a person signing the agreement, the Finance Minister on behalf of the Government of Nepal but on behalf of the MCC, the Vice-Chairman of the MCC or the person acting as the MCC Compact Operations or the Chief Representative does not seem to have the same status.

·          Article 5 (1) (a) states that one party may terminate the Agreement in full without any reason by giving 30 days' prior notice to the other party. It is said that the agreement or MCC can end the financial system which is contrary to the prevailing agreement or agreement. Although the status quo seems to be the same for both sides in the first half, the second half has eroded the above statement.

·          Similarly, more importantly, in Article 5.5, this Article of the Government of Nepal and Article 2.7, 2.8, 3.2 (f), 3.7, 5.2, 5.3, 5.4 andthe responsibilities under 6.4 shall continue even after the termination, suspension or termination of the present Agreement. What is provided in these articles is the limitation of consumption of MCC financial system in Article 2.7 (not contrary to any US law), tax in Article 2.8 (no Nepali tax law does not cover this program), Article 3.2 (f). Intellectual Property (to be owned by the United States for an indefinite period of time), Article 3.7 of the Archives of Accounts, Access (Archives of the entire program, the accounting, its right to audit, review, evaluate or inspect the MCC by the Government of Nepal), Article 5.2 of the termination, suspension or termination. Consequences, Return and Violation in Section 5.3 (Compulsory provision that any amount of the project is misused as interest or earnings by the MCC in US dollars), interest on late payment in Section 5.4, applicable law in Section 6.4 ( As this agreement is an international agreement, the principles of international law will apply.

·         According to the provisions of Article 6.8 of the Agreement, any official accident, activity, loss due to the project during the implementation of this project in Nepal, the official citizens working on this project, the American citizen is given full immunity. The APCC and the United States are not liable for any damages or claims arising out of any activity or inaction under this Agreement. The Government of Nepal disclaims any or all claims relating to the MCC, any current or outgoing US government official or employee, for any loss, injury or death arising out of any activity or inaction under the Agreement. The Government of Nepal has agreed not to pursue any claim or legal action against any of the aforementioned bodies in connection with such loss, injury or death. The government of Nepal shall agree that any current or former MCC and US official or staff shall be exempt from the jurisdiction of any court or tribunal in Nepal in respect of any loss or claim arising out of the activities or inaction under the present Agreement. This agreement can be interpreted in such a way that if an American citizen working on the MCC project rapes a Nepali woman, sexually abuses her, or causes a vehicle accident; the perpetrator will not be able to prosecute in Nepal.

 Article 7.1 states that after the implementation of the agreement, if there is a conflict between the agreement and the national law of Nepal, the parties have an understanding that the agreement will be implemented.

·          Schedule 1 (b) of the agreement states that the project has been identified only after discussions with the Government of India among various parties to implement the project. It is said that it has reached an agreement after discussing with India about the international transmission line under the project.

 In case of power transmission line from Lapsiphedi in the northeast of Kathmandu to Ratamate in the west of Kathmandu, from Ratamate to Hetauda in the south of Kathmandu, from Ratmate to Damauli in the west, from Damauli to Butwal in the southwest and from Butbal to Indian border about 400 kV. This amount is said to be used in construction. The project will not be implemented in the far-western states and Karnali, which are lagging behind in power generation but have great potential. This project does not seem to be implemented in Province No. 1 and Province No. 2.

·         Additional preconditions for implementation in Schedule 5 of the Agreement, in terms of Article (a), the government of Nepal shall prepare and send a plan to the MCC satisfactorily and in writing, and the Government of India shall have endorsed such a plan. When it seems necessary to take, the result seems more doubtful. Looking at the provisions of Schedule 5 (a), it seems that prior consent has to be obtained from the Government of India for the Butwal-Gorakhpur transmission line. However, the Government of Nepal cannot counter the MCC's statement that prior consent should be obtained for the overall project works.

Now the way

·         At present, no matter what the various arguments are, the amount that will come under this agreement in terms of grant assistance is certainly not small. Used properly, it can contribute a great deal to energy and road development. Another is that this project will not transform Nepal. As the power grid will be connected only to Butwal, Palpa, Hetauda and Kathmandu areas, it will not transform the country's electricity sector. There are many areas in Nepal that do not have electricity grid lines. The areas that MCC is supposed to do are the ones that actually produce more from the power grid. Similarly, only 305 km of roads will be upgraded for a road maintenance projects. Not building new roads. What we need to do now is to upgrade the roads and open new road tracks.

·          For the implementation of the MCC project, the formation order of MCC Nepal has been issued and is being implemented as a development committee. Considering the constitutional provision of Article 279 (3) of the Constitution of Nepal, it seems that this agreement needs to be approved by the Parliament. In the case of unequal treatment in the agreement, Article 6.2 of the agreement can only be amended by a written agreement of the parties under the heading “Amendment and Modification” and the provisions of the agreement will specify how such agreement is enforced. . There is no doubt that the project is under the Indo-Pacific Strategy (IPS) but there is no doubt that it is a project under the Indo-Pacific Strategy (IPS) but not a project of direct military activity. This is because the project clearly states that the project will work in two areas of the power grid and road maintenance. If there is any act of military activity, the Government of Nepal can terminate it at any time as per Article 5.1 of the agreement. Even if it is said that the agreement can be canceled, it is worth considering whether the weaker side Nepal will retain that status or not.

·          Just like looking at the Nepal-India Friendship Treaty of 1950, India did not dare to amend it even though India repeatedly said that the Indian government was ready to amend it whenever Nepal wanted. In the same way, if the agreement with the United States is the same as it is now, after the approval of the parliament, it will be possible for Nepal to cancel the agreement. Although the agreement has now been submitted to the Parliament for approval, a study task force has been formed by the Parliament to study the points made in the agreement and further amend the recommendations of the working group based on the report of the working group. It can be done. The Sri Lankan government had earlier formed a task force on the issue of whether or not to implement the MCC project in Sri Lanka and has now decided not to implement the project.

·         It is better for us Nepalese to take initiative for a comfortable landing environment than to argue about it on our own. In the current situation, Nepal's hand is not seen above the status quo in the agreement passed by the parliament. We are now hearing that the US military base in Iraq should be withdrawn, that the US has already invested heavily than the Iraqi government, and that we should be aware of the US refusal to withdraw its troops from Iraq. Looking at this agreement, it should not be seen that Nepal has been forced to take this assistance unilaterally so that the United States, i.e. the donor country, can dominate. Similarly, looking at the current agreement, India is also compelled to join Nepal in this project. If the Indian government does not allow the implementation of plans beyond its own interests in the future, this project may be more beneficial for India than for Nepal.

·         The world is now polarizing due to the Corona catastrophe. The United States is now directly engaging in unrestrained propaganda against China, obstructing economic poverty, encircling China from the world, and raising India against China. While the US is already working with India on the Indo-Pacific Strategy, a border war between India and China, including Doklam in Sikkim, is set to erupt. Nepal's non-aligned foreign policy is clear. We do not side with either side in a war between two nations. On the other hand, we are implementing the Belt and Road Initiatives (VRI) put forward by the Chinese government. We are with China in this. Due to various developments, it cannot be said that there will be no direct war between the US and China in the future. Looking at the terms of the current MCC agreement, we cannot imagine what would happen if the US military set up an arena in Nepal in the name of protecting the project. It is believed that the weaker side always has to be strong on legal grounds before reaching an agreement. If we pass this project as it is, as we are said to be the yam of two stones, there will be nothing left but regrets tomorrow.

·         We have an obligation to support the United States against China, which has always been an ally. We have always considered China, America or even India as good friends. It is disguised not to bring that situation.

·          In the end, no one should oppose taking foreign aid in Nepal's interest, let alone explain what the road says. Moreover, it is very important for a country like Nepal to attract large foreign investment, but it should be in the interest of the country. The history of the split of the then CPN-UML is fresh due to the dispute over the approval of the Mahakali Treaty by the parliament. Similarly, the then government-backed Nepali Congress Party, which signed the Koshi Agreement and the Gandak Agreement now seem to feel that the agreements were unequal. On the issue of nationality of the country, the ruling party and the main opposition party should be united in passing the agreement in the status quo for the benefit of the country.

·         No one should say that the MCC project should not be implemented or should be implemented in the status quo or should be implemented only by making amendments. Because of the MCC project, the leaders of political parties, activists The MCC should be approved by the parliament only by amending the non-existent points. The process of amending the constitution by passing a new map, including the recent Lipulek Kalapani Limpiyadhura, as Prime Minister KP Oli and the current government and the ruling party as a whole have made the Nepali people proud and respectful. It has been said that if this project is rejected now, the message that donor countries and international organizations may distrust Nepal will send a message that no agreement can be reached on the issue of Nepali nationality and a positive message to the party leadership and government in the international arena. Will go If the United States does not want to amend the MCC agreement, even if it is like 12 percent of my cattle, then surely there is some reason for the United States in this agreement.

·          It has been three years since the project was implemented; a lot of software work has been done. We only need to remind the United States that any of the points that are said to be amended will not be against the United States. Even so, the United States should not hesitate to reject the agreement if it does not want to amend it. If the MCC is not implemented because the amendment is in the interest of the country, then the head of the Prime Minister, the government, the ruling party and the overall party leadership will be even senior. The Nepali Congress will have a chance to rectify the weaknesses made in the Koshi, Gandaki and Mahakali agreements till date. In the current situation, the main opposition party Nepali Congress should not shy away from making amendments in the interest of the country rather than passing the MCC project.

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