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

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  • Shiwakoti, Avyash

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.

Suggested Citation

  • Shiwakoti, Avyash, 2026. "Infrastructure as Rural Development Catalyst: Evaluating the Millennium Challenge Corporation Nepal Compact, 2017–2026," SocArXiv vc28y_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:vc28y_v1
    DOI: 10.31219/osf.io/vc28y_v1
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    References listed on IDEAS

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    1. Bent Flyvbjerg, 2014. "What You Should Know About Megaprojects, and Why: An Overview," Papers 1409.0003, arXiv.org.
    2. Taryn Dinkelman, 2011. "The Effects of Rural Electrification on Employment: New Evidence from South Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3078-3108, December.
    3. Demurger, Sylvie, 2001. "Infrastructure Development and Economic Growth: An Explanation for Regional Disparities in China?," Journal of Comparative Economics, Elsevier, vol. 29(1), pages 95-117, March.
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