When Nepal’s politicians and diplomats attempt to maintain a balance in their foreign policy, three major powers continuously occupy their minds: India, China, and the United States. Even though the United States appears in third place in this order, it was the very first country with which Nepal established diplomatic relations immediately following World War II—one of the epoch-making events in world history. Diplomatic relations are, of course, established on the basis of mutual benefit.
Regarding the immediate context emerging in Nepal’s neighborhood, Britain—which had ruled India for nearly two centuries—was preparing to depart from there. To maintain the old structure of peace and security in that region, the United States, which played a leading role in ending WWII, established diplomatic relations with Nepal on April 25, 1947—a few months before India became independent in the same year (August 15, 1947). Furthermore, Nepal’s geo-strategic location and the impending Communist Revolution in China in 1949 were extremely crucial factors that could not be overlooked in the post-war environment.
Although centuries-old relations based on shared geography, history, language, economy, and shared cultural values existed between Nepal and India (referred to as "Bharat Varsha" in traditional parlance), formal diplomatic relations in the modern sense were established between them only on June 13, 1947. Similarly, while Nepal’s relations with China through Tibet date back many centuries to the Licchavi and Malla dynasties of the Kathmandu Valley, modern diplomatic relations between the two countries were established only on August 1, 1955.
Having played a significant role in the victory of the Allied Forces through the participation of thousands of its soldiers in the World Wars fought in Asian and European theaters, Nepal was in a position to easily participate in the 1945 San Francisco Conference and become a founding member of the United Nations. However, after missing that opportunity in 1945 for whatever reason, Nepal was able to become a member of the United Nations only in 1955 as a result of the so-called "Package Deal" between the United States and the former Soviet Union (USSR). American support was of decisive importance for Nepal’s membership.
The United States was also the first bilateral donor to provide formal development and technical assistance to Nepal. This partnership began on January 23, 1951, after the two countries signed a cooperation agreement under the US "Point Four Program." Alongside several other donors such as India and China, the United States contributed to Nepal’s modernization through support in various sectors, including education, transportation and communication, industry, and infrastructure development. This paved the way for resettling entire hill villages into the fertile plains (Terai), bringing about a massive transformation in Nepal’s demographic landscape.
Butwal launches perspective development plan
Initial initiatives undertaken under this historic program included malaria eradication and the Rapti Valley Development Project. Launched in 1954 through the United States Operations Mission (USOM), this project targeted high-risk, densely forested Terai and Inner Terai regions. Clearing forests and eradicating malaria enabled the Government of Nepal to reclaim land in Chitwan. The Terai including the inner-Tatai districts, which accounted for about 30 percent of Nepal’s total population in the early 1950s, are now home to over 50 percent of the people, making it the most densely populated region.
In the context of transportation infrastructure developed with American assistance, one component was the Bharatpur–Hetauda road, which provided financial support for constructing an 87-kilometer road link. Following that, the Hetauda–Kathmandu ropeway was constructed to create a vital cargo cableway system over the mountains to connect the capital with the southern plains. The US also assisted Nepal in developing telecommunications and a modern administrative framework. It helped install Kathmandu’s first automatic telephone exchange by 1959 by providing 1,000 baseline connections to initiate modern communications. It further helped build early administrative and ministerial infrastructure across Nepal to organize the newly established post-Rana government.
To boost food production, the US also helped introduce modern agricultural techniques, equipment, and training. Initial "Point Four" funds were allocated to provide experts for conducting Nepal's first systematic geological survey, mapping flood control and future hydroelectric potential. In this way, foundational work was carried out during the initial phase of Nepal's modernization.
Though seemingly small in monetary terms, American assistance made significant contributions to improving Nepal’s modern education system through the development of institutions such as Tribhuvan University, the College of Education (including the Laboratory School), and the Fulbright Scholarship Program.
American leaders, including presidents and diplomats, consistently encouraged Nepal’s rulers—including Kings Mahendra, Birendra, and Gyanendra—to work in tandem with the democratic aspirations of their people. Their efforts to promote democracy and human rights were particularly significant, as these had a long-term impact on the political, social, and economic life of the Nepali people. Therefore, Americans suggested delivering social and economic justice to the Nepali people through land reform, initially raising living standards gradually through practically small projects, and targeting larger projects only later. Such was the situation in the past.
Today’s world has changed. It is no longer unipolar, as was thought in the 1990s and early 2000s. The most notable feature of today’s global landscape is the inexorable rise of Nepal’s northern neighbor, China, as the second-largest economy after the United States, and it could very well become the largest economy in the near future. Furthermore, this may not remain limited to the size of the economy alone; it may also surpass Europe and America in science and technology. While Russia and the US may be struggling to emerge from the quagmire of messy wars, China appears to be steering clear of wars in Europe and the Middle East, even while dealing with some of their consequences.
Nepal believes in peaceful coexistence as the core anchor of its foreign policy. US Vice President Spiro T. Agnew remarked during his visit to Nepal on January 5, 1970, “We are very pleased that Nepal has been able to peacefully coexist with its neighboring countries, India and China.” Henry Kissinger—who praised Nepal in his book World Order by stating that Nepal “skillfully balanced its diplomatic posture between the ruling dynasties of China and India”—wrote to Nepali Ambassador Yadunath Khanal while departing Washington D.C. in 1975: “The United States is interested in Nepal’s political independence and its economic development.”
Thus, the US has supported Nepal’s ‘independence and development’—two inseparable sides of a coin—with a clear objective and consistency. Even during times of America’s own economic difficulties, the aid amount provided to Nepal, though in small measures, has continuously increased. Even if USAID has been shut down by the current administration, the continuation of the MCC grant stands as proof of this continuity and ongoing support for Nepal.
However, we Nepalis feel that even more important than the total dollar amount of aid are the values of freedom, democracy, and human rights, along with the capacity of American institutions that defend these values and inspire people around the world. The exchange of ideas, American interest, and goodwill are the most valuable things for us in Nepal.
Even after the restoration of democracy in 1990, Nepal faced extreme political instability and corruption, leading to ever-growing public frustration. The Gen-Z movement of 2025 was an explosion of this very frustration. Currently, Nepal has a government led by young leaders of a party that secured nearly a two-thirds majority in Parliament, yet a sense of uncertainty looms large in the minds of the people. Effective steps must be taken to build democratic institutions, establish the rule of law, and ensure the effective delivery of goods and services to the public. America can assist Nepal in this regard through its experience and expertise. Persistent frustration among the Nepali people implies continuous instability in this geopolitically sensitive country. In this situation, even without any ‘unrealistic expectations’ between Nepal and the United States, expecting American assistance for peace, stability, and development in Nepal feels entirely natural.
The author, a Fulbright scholar at Georgetown University, is a former Ambassador to the UN.
-1790840895.webp)
