Infrastructure as Rural Development Catalyst: Evaluating the Millennium Challenge Corporation Nepal Compact, 2017–2026

Avyash Shiwakoti

No vc28y_v1, SocArXiv from Center for Open Science

Abstract: This paper evaluates the Millennium Challenge Corporation (MCC) Nepal Compact as a case study in infrastructure-led rural development. It tracks the project from the author's original 2021 arguments through contested ratification in February 2022 to active deployment as of May 2026. Drawing on MCA-Nepal project data, parliamentary records, and field reports, the study assesses whether the predicted rural development multipliers—rural hydro evacuation, land compensation capital injection, local employment, and improved market connectivity—have materialised. The evidence substantially validates the core 2021 thesis, while counterpart funding escalation and right-of-way disputes remain the main implementation challenges. The paper offers targeted policy recommendations to maximise rural spillover effects before the August 2028 completion deadline.

Date: 2026-05-24
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:vc28y_v1

DOI: 10.31219/osf.io/vc28y_v1

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