Pacific Affairs: An International Review of Asia and the Pacific

Volume 73, No. 1

 

U. S. Aid to Nepal in the Cold War Period: Lessons for the Future
By Narayan Khadka

 

Abstract

Nepal was one of the first countries in South Asia to receive U.S. aid. As in other countries, the U. S. used aid as an instrument of its foreign policy in Nepal in the Cold War period. The major foreign policy objectives of the United States in Nepal were a) to help Nepal maintain its independence and neutrality, b) to contain a possible threat of communism in Nepal, c) to support Nepal's development efforts, and d) to enhance Nepal's western orientation.

This paper has three main objectives, to examine the fundamental objectives of the U. S. aid in Nepal in the Cold War period, to assess the major achievements of the U. S. aid objectives, and to draw conclusions on the future directions of its aid. The paper uses an analytical approach using secondary sources of information. The paper concludes that the U. S. aid in Nepal was not successful in achieving its foreign policy objectives and that since some of the conditions have not changed despite the end of the Cold War, the U. S. will continue to maintain its foreign policy interest.