The Manifestation of Small State Syndromes in Foreign Policy of Nepal: An Assessment through Case of MCC Grant

Abstract

Nepal, as a small state nestled between two geopolitical giants, India and China, faces a unique set of challenges and opportunities in shaping its foreign policy. MCC compact is the development assistance of the USA to developing countries like Nepal, though the clauses of MCC went through various misinterpretations and controversies. Its base revolves around the issues of sovereignty, the autonomy of Nepal, bilateral relations with major powers, and a policy of non-alignment with intense feelings of nationalism. This research article aims to explore the small state syndromes that influence Nepal’s foreign policy decision-making, focusing on the case of the Millennium Challenge Corporation (MCC) grant. By examining the intricacies of Nepal’s foreign policy, this article sheds light on the complex interplay of diplomatic, economic, and security factors that shape small states like Nepal. The paper, thus, discusses the small state syndromes in the foreign policy of Nepal by taking MCC as a case and dwells on finding why MCC became controversial in Nepal, which further exemplifies the manifestations of small state syndromes in the foreign policy of Nepal.