Comparative analysis of India and China Development Cooperation in Nepal (2008-2018)
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Department of International Relations and Diplomacy
Abstract
Nepal has been the focus of development assistance since the mid-20
th
century. The country has been reliant on financial aid from countries all over the
world in various sectors. As the neighbors of Nepal, the aid cooperation of India and
China is important to the development of the country. In this regard, a comparative
analysis of aid cooperation from the two nations provided a solid background of
diplomatic ties between the two countries. Whilst the theory of liberalism suggests
that foreign aid is often altruistic and necessary for conditions of peace, realism
argues the opposite. On the contrary realism describes the development assistance as
the national interest of the donor nation rather than the interest of recipient nation. In
this lens, India’s engagement in Nepal is mostly concentrated around the Terai region
with the India’s interest to support major project adjoined with Indo-Nepal border.
Similarly, China national interest in Nepal is to provide development cooperation
support to the areas where Tibetan refuge influence in Nepal is prominent. China has
spread their assistance to different sectors in areas with heavy Tibetan culture had
influence. For more effective development, foreign aid must be provided with true
altruistic intentions. The traditional division of foreign aid areas in Nepal by both
India and China changed their strategy and covered the region of their strategic
interest of late.
Key Words: Official Development Assistance, Foreign Aid, Diplomatic Relations,
Trade, Interdependency