On 18 March, Nepal’s Prime Minister Mr. Sher Bahadur Deuba made a special address during the 74th Anniversary function of the Nepal Council of World Affairs (NCWA). NCWA is an organization that is contemporaneous with the Indian Council of World Affairs when the former was established in 1947-48. This year’s theme of NCWA Annual Journal is “Strategic Importance: Foreign Policy of Nepal” which was relevant and timely. At a time when Nepal’s Foreign and Economic Policy Compass witnessed a breakthrough of parliamentary approval of the American Government’s Millennium Challenge Cooperation Compact. A $500 Million Compact Aid program is seen as a game-changer in the domain of Nepal’s energy and economic prosperity in partnership with clean energy-hungry India with the American initiative that had a heated debate in the political society of Nepal. It drew support as well as criticisms given Nepal’s geopolitics. Furthermore, it invited the American Government and Chinese Government remarks that are quite forceful and powerful to Nepal’s handling of American support. There are apprehensions in Kathmandu that this American Aid Programme complements the Indo-Pacific Strategy diluting Nepal’s nonaligned posture of 70 years in implementation and containing or encircling rising China. This was a hot topic for givers and takers of grant aid and it is not a loan.

Deuba is in government for 9 months and he has a political task to conduct local elections on 13 May and Federal and Provincial Elections thereafter in consensus with political parties when trust and stability are rare in political temperament among different political actors. The Deuba Government has a supreme primacy of national interest and responsibility to ensure people’s welfare based on Coalition Governing Principles and the Common Minimum Program. His government’s chief priorities are achieving economic prosperity based on equity and equality, socio-economic transformations, execution of federalism, and peace process completion. Deuba underlined the Foreign Policy of Nepal according to the provisions in the Constitution of Nepal 2015 as every government does. His government pursues independent and balanced foreign policy. His focus is enhancing relations in the immediate neighbors, South Asia and beyond, great powers, development partners, and Diaspora and labor destination countries based on sovereign equality, mutual respect, mutual trust, and mutual benefits.

Deuba affirmed of disallowing illicit elements from operating against the national security interests of neighbors and other countries. Deuba was clear in his government’s advocacy of a liberal, rules-based, just, fair, and cooperative global order that enables developing countries, the least developed countries in particular, so that they grow, progress, develop and thrive further. Deuba states to pursue attaining SDGs and fulfilling international commitments. This time around his FP aims to get maximum cordial support and cooperation from all countries and to profess proactive diplomacy. Deuba maintains to intensify international engagements despite COVID 19 episode.

Deuba mentioned his participation and address at the Climate Summit in Glasgow, different multilateral forums, such as the World Food Summit, Energy Summit, and World Leaders Summit, and the Summit for Democracy in a virtual way where Nepal’s importance is underscored. He says these forums have helped enhance Nepal’s international visibility, profile, and position and it has provided an opportunity to voice Nepal’s principles, priorities, and concerns on issues of global importance such as climate change, food security, vaccine equity, democracy, and good governance, among others. A fragile ecosystem of the Himalayas Nepal is becoming more vulnerable to climate change compared to other countries. So Deuba seeks climate finance and technology transfer to promote green, clean, and climate-resilient development and to finance Nepal’s mitigation and adaptation efforts.

Deuba notes Nepal’s diplomatic relations have expanded to 173 countries. His government has the substantial enhancement of Nepal’s image and credibility in international relations, the enormous international goodwill towards Nepal and Nepali people, ever-expanding Nepali Diaspora, Nepal’s culture, civilizational heritage make the country foray into a soft power level. He reiterates continuation to harness existing soft power and build on its strengths for the long-term benefit of the country and the people. A staunch supporter of the UN Charter and attaches equal importance to all three pillars of the UN without identifying two pillars. While the development pillar favors landlocked, small, and developing countries’ issues and their interests. Deuba states Nepal’s commitment and observance of human rights is total, impartial, and complete in the UN Human Rights Council.

Deuba says Nepal continues its independent position on major issues of global concern. Nepal upholds peaceful settlement of all international disputes and considers diplomacy and dialogue to mitigate disagreements and conflicts. Hinting on Ukraine, Deuba says force or military application on a sovereign nation should be vehemently and unequivocally opposed and disagreed that is in contravention to the principles of the UN Charter. Nepal has been a top-three UN Peacekeeping Operation Troop contributing country since 1954. Deuba believes that the UN system and multilateral rules and architecture are not perfect. They must be improved to reflect current realities and deliver on the agreed global development goals. The only alternative to the United Nations is the stronger United Nations, making it the hub of multilateralism. Deuba restates that Nepal supports general and complete disarmament, particularly all weapons of mass destruction. And condemn terrorism in all its forms and manifestations.

So economic prosperity should be within our access promptly and the quality of human development must improve sooner. Economic diplomacy is the mainstay to pursue this objective, foreign direct investment in priority areas, expanding the scope of export trade, and promoting tourism among many. Diaspora interests are to be protected and remittance from Non-Resident Nepalese should be channeled to tap into the national economy remains Deuba’s priority in economic diplomacy. His government strives to build connectivity and infrastructures and widening of the avenues of cooperation with Nepal’s neighbors in conformity with national interest and priorities.

Nepal’s graduation from LDC status as “a long-held national aspiration” is “a must-attain development milestone.” It will help boost national morale and enhance the country’s overall image. Thus, it will have positive impacts on tourism, investments, and will offer opportunities for modernizing Nepal’s economy and enhancing the competitive capacity and comparative advantage. In the initial years following the graduation, Deuba foresees some challenges in export trade, bilateral assistance, and other economic areas. To mitigate such challenges, the Deuba government has to undertake a comprehensive preparation in the overall spirit of the country. He considered the MCC as a normal democratic process for informed decision making and sees to its implementation and will ensure timely completion of the project.

Deuba restates Nepal’s Constitution to consolidate the core values of democracy, such as the sovereign power of the people, inclusive and federal democratic system of governance, civil liberties, adult franchise, and periodic elections. These political achievements are dear and cannot be afforded to lose. Deuba believes political society only cannot safeguard political gains and a concomitant intersection or segment of society must defend democratic culture as a living habit. Suffice it to say, the Deuba Government’s spirit in Foreign Policy is based on democratic norms and values at the domestic and international levels and maintains issues and interests where it aligns to the primacy of nation, economic prosperity, and citizen welfare.