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REPORTS

Foreign aid has been one of the key elements of diplomacy and development. However, China's ascent as a global power reshapes aid dynamics, fueling a new era of rivalry. The US faces challenges in coexisting with China, while China's aid faces scrutiny for lack of transparency. Other nations like Russia, India, and Turkey increase aid to assert influence, reflecting a changing global political order, with smaller aid-recipient states having to navigate the donor competition. This report documents the evolution of infrastructure aid to facilitate informed discussions on infrastructure and diplomacy. It serves as reference material tailored for journalists and policymakers.

In global diplomacy, countries use a mix of hard and soft power tactics to compete for influence. Soft power emphasizes attraction over coercion, utilizing tools such as foreign aid, cultural diplomacy, and education diplomacy. In South Asia, India faces pressure from China's rise as a superpower. This research explores the educational diplomacy strategies employed by these two regional powers amid this pivotal shift in South Asian geopolitics.

The constraints facing Nepali Small and Medium-Sized Enterprises (SME) are well known, but most of these constraints will take time to address. In the meantime, higher-growth Nepali SMEs demonstrate that it is possible to achieve better performance within the current business environment. Based on surveys from 352 SMEs, we look for characteristics distinguishing better-performing SMEs from others as a way of informing policies that are likely to be immediately effective in improving SME performance.

This brief examines the history, demographics, and political representation of the Magar ethnic group in Nepal. Comprising about 2 million people, or 7% of the national population, the Magars played a crucial role in the Gorkhali army's expansion. Despite historical under-representation in influential positions, Magar leaders have recently gained greater political prominence.

Home to a quarter of the global population and a combined GDP of $4.3 trillion, the region is experiencing remarkable growth in countries like India, Sri Lanka, Bangladesh, and Nepal. Major players—the US, China, and India—compete for influence through infrastructure investments and strategic aid. This brief, the output of a webinar hosted by PEI, examines the opportunities and challenges this geopolitical rivalry presents to recipient countries, offering insights into South Asia's evolving political and economic landscape.

This policy brief assesses infrastructure aid diplomacy in South Asia and its implications for recipient countries, considering the growing geopolitical competition among major donors such as China and the United States. These donors are making significant investments in the region to expand their influence and support regional connectivity. The brief aims to understand the motivations behind these investments and the strategic interests of recipient countries.

REPORTS

BRIEFS