USAID's Nepal spending under scrutiny

USAID's financial activities in Nepal reveal strategic funding aimed at political influence and governance.

- ABHINANDAN MISHRA

USAID's financial activities in Nepal, as evidenced by data from internal documents shared with The Sunday Guardian, reveal a significant and strategic use of funds that extends beyond traditional development assistance into the realm of political influence.

According to internal communications seen by this newspaper, in the last few years, USAID committed $402.7 million to Nepal, alongside an additional $500 million from the Millennium Challenge Corporation (MCC) Compact Program, bringing total U.S. assistance to over $900 million.

In May 2022, USAID signed a $402.7 million agreement with Nepal, of which $158 million had been disbursed by February of this year, leaving $244.7 million yet to be used.

An analysis of the data indicates that USAID prioritized funding for programmes classified under "democracy" and "governance," with substantial allocations to projects such as "Democratic Processes" ($8 million) and the "Democracy Resource Center Nepal (DRCN)" ($500,000).

According to reports, the "Democratic Processes" project is implemented by key USAID partners such as the National Democratic Institute (NDI) and the International Foundation for Electoral Systems (IFES).

These organizations are known for their involvement in election-related activities and have been accused of funding youth politicians, allegedly leading to regime change in Bangladesh and attempting the same in Cambodia, as reported by The Sunday Guardian earlier.

As per the internal documents, 'Project 4150,' titled "Democratic Processes," had a total commitment of $8,000,000, with $5,028,238 disbursed as of February 2025, reflecting a financial progress of 62.85%.

The agreement date for this project was March 2023, with a planned completion date of March 2028.