From ‘aid’ to ‘enterprise’: Reimagining the US–Nepal partnership

The impending end of USAID operations in Nepal by 2025 necessitates a reimagining of the US-Nepal partnership, moving beyond traditional aid towards a model focused on enterprise and sustainable economic growth. For decades, the US provided significant development assistance, but this system is disappearing, exposing a critical gap in connecting Nepali talent with global markets. The country is at a pivotal moment, poised to graduate from Least Developed Country status while grappling with high rates of labor migration and a demand for better opportunities at home.

Nepal’s tech economy is rapidly expanding, with IT service exports doubling between 2022 and 2025, signaling a shift from exporting labor to exporting digital work. Artificial Intelligence is accelerating this trend, but success requires a focus on security, compliance, and consistent delivery. Recent initiatives, supported by the US Embassy Nepal and private sector partners, aim to address the “missing middle” in Nepal’s innovation ecosystem – the gap between early-stage ideas and scalable growth – by providing mentorship, capital, and market access.

To fully capitalize on this potential, Nepal needs to treat innovation as a core economic strategy, improve digital economy policies, engage its diaspora network, strengthen commercial diplomacy, and proactively build its international reputation. The goal is to create a growth model that enables more Nepalis to build successful businesses from within Nepal, connecting local innovation to global markets and establishing Nepal as a competitive player in the digital economy.

(Source：Kathmandupost)