The resource allocation document of the US Senate says that the government there has allocated $62.7 million assistance for Nepal for this year. The amount would be used for peace restoration, stability and development, said the resource document. [break]
The aid would go for protecting lives and health of children, supporting economic and development works, enhancing capacity of the army and police and controlling drugs smuggling.
Nepal had received $38.1 million in aid from the US government in 2009. Compared to 2007 and 2008, the volume of aid in 2009 was less.
“Latest rise in assistance volume reflects the US government´s change in priority toward Nepal,” said an official at the Nepali Embassy. It also shows that US has become flexible on the security assistance front.
Under the security assistance, the US will provide trainings to Nepal Army personnel and extend other non-strategic cooperation.
Nepal has been receiving substantial assistance from the US in the past. Its support has mainly come in the field of agricultural development, particularly crop researches and development. Nepal has also received US aid in the health sector, especially on family planning, and child and maternal health.
Apart from this budgetary program, Nepal would also receive aid worth about $15 million from the US International Assistance Fund. The fund extends direct finances in areas like climate change and environment.
Likewise, Nepal has also featured in the 35-million dollar Feed the Future initiative that US President Barack Obama recently launched. The initiative is one comprehensive agricultural assistance package and covers 20 countries, including Nepal. USAID too has put Nepal high in its support priority.
Although the US is one of the major bilateral donors for Nepal, its volume of assistance and extent of economic engagement had gone down over the last few years. In this context, the Ministry of Finance and Nepali Embassy in Washington had repeatedly urged the US government to increase assistance for Nepal.
Responding to the request, senior US officials in Washington had asked Nepal to furnish details of areas in which it wishes to get support. Nepal had recently forwarded its wish-list.
“Rise in assistance volume is one good response we have managed to secure of late,” said Dr Shankar Sharma, Nepali ambassador to the US. The US government has finalized its budget for 2011 as well. “And we are hopeful it has raised the aid amount for Nepal for the next year as well,” Sharma told myrepublica.com.
Referring to security assistance, concerned officials opined that the US government has yet again started to look at Nepal through its own lens. Since the royal takeover, it was relying on diplomatic briefings of India for setting its programs in Nepal.
Despite the shift in diplomatic ties, the US has continued to raise concerns over the failure of the political parties to draft the new constitution on time, continued political instability and deadlock, labor problems and derailed reforms, among others.
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