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The Diplomat Nepal Peoples' Review
3 sources · 3 articles
Started 6 days ago · Updated 5 days ago

Nepal's BRI Implementation Stalled Amidst Political Division and Weak Capacity

Photo · mypeoplesreview.com

Nepal's implementation of the Belt and Road Initiative (BRI) has remained largely stalled for over eight years since signing a memorandum of understanding with China. This inaction is attributed to internal political polarization, with no consensus on accepting loans versus grants, and Nepal's weak institutional capacity and negotiation skills. The initiative is viewed by some as a "debt trap" while others see it as a development opportunity.

  • Nepal signed the BRI memorandum with China on May 12, 2017, aiming to reduce dependence on India following a 2015 blockade.
  • A key obstacle is Nepal's stance of accepting only grants, while China proposes loan-based investments.
  • Nepal lacks adequate technical, legal, and diplomatic capacity for project selection and financial management within the BRI framework.
  • Internal political divisions prevent a national consensus on the BRI, hindering concrete decision-making.
  • The lack of progress has created uncertainty regarding Nepal's development aspirations.

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