Foreign Aid and Politics in Nepal : A Case Study

Contents: Preface. Introductory chapter: 50 years of foreign aid. 1. Introduction. 2. Nepal: the environment. I. 1951- 4: 3. The political and economic scene, 1951 – 4. 4. Early United States assistance. 5. Indian and minor aid programmes. II. 1955 – 8: 6. The political and economic scene, 1955 – 8. 7. United States assistance. 8. India, Swiss, Chinese and Soviet aid. III. 1959 – 62: 9. The political and economic scene, 1959 – 62. 10. United States assistance and the Government of Nepal. 11. Indian and Chinese aid: a conflict in purpose. 12. Minor aid programmes. 13. Conclusion: the utility of aid. Appendices: 1. Chronology. 2. Commitment and expenditures by significant donors. 3. Exchange rates. 4. Treaties and agreements. Bibliography. Index.

"First published in 1965, this study of foreign aid has now become a recognised classic on the subject. When the author did his research in the early 1960s, Nepal had already begun receiving assistance from an extraordinarily large number of countries and agencies. Donor interest in those initial years was driven mainly by the fact that the country occupied a strategic position as a frontline state against communist China. But, as the author discovered, there were good reasons to doubt the widely accepted assumption that all underdeveloped countries were being swept by a ‘revolution of rising expectations’. He also reached the startling conclusion that, on balance, the impact of foreign aid has probably harmed, rather than furthered, Nepal’s long-range prospects for economic growth and political stability. The evolution of Nepali society and economy over the last three decades of the 20 century seems to have supported Mihaly’s thesis."