Nepal has officially commenced work on the multimillion-dollar Millennium Challenge Corporation (MCC) pact, aiming to bolster its road and power transmission capabilities. The MCC, an independent U.S. foreign assistance agency, was established by Congress in 2004 to combat poverty in developing nations by promoting economic growth, market openness, and improved living standards. The MCC forms partnerships with countries dedicated to good governance and invests in their citizens through large-scale grants. These grants fund projects such as infrastructure development, institutional reforms, and improved access to healthcare and education. The MCC’s board includes key U.S. government officials and private sector representatives.
Facts/Terms for UPSC Prelims
- Multimillion-Dollar MCC Pact: Refers to the financial commitment made by the Millennium Challenge Corporation to fund development projects in Nepal.
- Market Openness: The concept of creating and maintaining open and competitive markets to stimulate economic growth and development.
- Large-Scale Grants: Significant financial contributions provided by the MCC to support projects aimed at reducing poverty and fostering sustainable economic growth.
- MCC Board: Comprises high-ranking U.S. government officials, including the Secretary of State, Secretary of the Treasury, U.S. Trade Representative, and USAID Administrator, along with private sector representatives.
