Nepal has become
eligible for the 2014 Millennium Challenge Corporation (MCC) assistance.
Today, officials
of the US Embassy in Kathmandu handed over the MCC scorecard to finance
secretary Shanta Raj Subedi at his office.
Out of the
20 indicators under three categories – economic freedom, investing in people and
ruling justly – the country has surpassed the low-income category (LIC) median
in 14 indicators and scored 70 per cent, the ministry said, adding that the score
has made Nepal eligible for 2014 threshold programmes. "But six indicators
– including health expenditure, trade policy, girls’ primary education completion
rate, gender equality in economy and rule of law – are still marginally and
technically down the median, which can definitely be improved in the year 2015."
Finance secretary, on the occasion, requested
the US delegation for early conclusion of the ongoing constraints analysis
exercise to enable the team to come up with 'Threshold programme' by the end of
March, which could help link it with the budget of next fiscal year 2014-15.
Michael B Goldman from the Economic
and Political Department of the US Embassy thanking the ministry assured to
shorten the time frame as far as possible. "Though Nepal has become eligible
for Threshold Programmes for the year 2014, six indicators are still marginally
and technically down the median, which can definitely be improved in the year 2015
and help upgrade to the 'Compact programme', the multi-year programme targeted
at reducing poverty and stimulating economic growth in MCC eligible country,"
he said.
At a meeting
with US ambassador to Nepal Peter W Bodde last month, finance minister Shankar
Prasad Koirala had also asked the US government to extend financial support to
Nepal also through the MCC – the US agency fighting global poverty – that forms
partnerships with some of the world's poorest countries committed to good
governance, economic freedom and investments in their citizens.
The MCC board is chaired by the US Foreign Secretary John Kerry
and represented by Treasury Secretary, the US Trade Representative and
other US government officials and experts.
Though, MCC is yet to
announce how much assistance Nepal would get under the Threshold Programme, it is
expected that the country would receive somewhere around $40 million to $50 million.
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