MCC as a Tool of American Influence on Developing Countries

Abstract

In February 2022 there were massive demonstrations in Nepal against the $500 million "free" aid agreement between the country and the Millennium Challenge Corporation (MCC). The protests subsided, and the Nepalese parliament overwhelmingly approved the agreement. In July 2022, civil unrest broke out in Sri Lanka. A member of parliament shot himself, the prime minister's ancestral home was burned down, the defense ministry was forced to issue a "shoot-to-kill" order against protesters, and the president promised not to sign the MCC. In this article, the author explores the MCC as an instrument of American influence in developing countries, using Sri Lanka and Nepal as examples. Particular attention is given to specific mechanisms of economic pressure on developing countries to achieve political results. This article introduces the MCC organization and, by describing events in Nepal and Sri Lanka, reveals the role that the MCC plays in the process of American intervention in the Third World. The study analyzes statistics that illustrate the economic impact of the U.S. on developing countries. The author draws conclusions about the impact of U.S. activities through the MCC on the regional environment. There are many ways in which the United States intervenes in regional affairs. The MCC is only one of them, but it is particularly significant. Through it, the U.S. establishes privileged conditions for itself in negotiations with developing countries to achieve results that could not be obtained without economic pressure.