With the reduction of the grant given by USAID to Nepal, it is seen that there will be a serious impact on various areas of development. Programs run through Non-Governmental Organizations (NGOs) in particular have been directly affected.

Because 90 percent of the total American grants coming to Nepal were managed by these organizations. These cuts will have a direct impact on projects in areas such as health, education, agriculture, and inclusive policy reforms. With this decision, the question of transparency and accountability has come to the surface again. The problem of USAID not providing full details of funds circulated through NGOs to the Nepalese government remains. This has raised serious questions about the effectiveness and proper utilization of the subsidy. If the government does not have a solid plan, there is an increased possibility that some projects will be halted in an unorganized way or become inactive.
It may not be appropriate to consider subsidy cuts as a challenge only for Nepal. It points to the need for self-reliance, internal resource mobilization and finding new opportunities for sustainable development. Rethinking the development model based on dependency, the government should focus on increasing internal resources, creating an investment-friendly environment and promoting innovation in the long term. Now it is inevitable that the government, private sector and civil society should come together to formulate a solid policy. Finding a path for long-term economic stability and development by breaking the pattern of relying only on foreign subsidies is the major need of the moment. In this direction, the active role of the government, transparent policies and investment promotion programs can lead Nepal towards a self-sufficient economy.

– Santosh Simkhada , Tokyo, Japan