The News
The Trump administration reportedly plans to slash the staff of the US Agency for International Development (USAID) from 10,000 to less than 300, leaving a huge gap in global humanitarian aid. Referring to the foreign aid agency Friday, the US president said “the whole thing is fraud,” later posting, “Close it down!”
Trump has suspended funding for the agency, and issued stop-work orders, raising concerns about the impact on the health and welfare of millions across the world, and inviting criticism of the move’s foreign policy implications.
UK Foreign Secretary David Lammy said Friday that Trump’s dismantling of USAID could be a “big strategic mistake” for the US. “Development remains a very important soft power tool. And in the absence of development … I would be very worried that China and others step into that gap,” Lammy told The Guardian.
Trump, along with tech billionaire Elon Musk — who has targeted USAID in his role as the head of the Department of Government Efficiency — consider the agency to be at odds with Trump’s America First policy. While experts say that some USAID programs are “less effective, or wasteful,” the agency is audited both internally and externally.
SIGNALS
USAID touts China-related research as a way to counter Beijing’s influence
USAID has long touted its China-related research, framing it as a way to counter Beijing’s global influence by collecting data on the country’s overseas aid and investments, Voice of America wrote. Stopping federal funding for organizations that conduct research “crucial to understanding one of the most heavily censored countries in the world,” could lead to an information blackout about China, and in turn, strengthen Beijing’s ability to expand its influence, experts told Nikkei Asia. “If [the research] disappears, nothing will replace it, and Beijing’s work to crush it will be complete,” a China analyst at the Australian Strategic Policy Institute said.
Authoritarian leaders welcome USAID dismantling
Authoritarian leaders in Russia, Hungary, and El Salvador, who have long viewed USAID’s work in their countries as a threat, welcomed Trump’s targeting of the agency, The New York Times reported. Samantha Powers, who ran USAID under the Biden administration, said she saw a significant rise in Chinese and Russian attacks on the agency’s efforts during her tenure. Trump’s moves threaten the “vast stores of political capital” that USAID generated in more than 100 countries, Powers argued in a Times op-ed, describing the agency as “the ground game in US foreign policy.” Washington is handing “on a silver platter to China the perfect opportunity to expand its influence,” an analyst at the Council on Foreign Relations told The Guardian.
US aid retreat from SE Asia could fuel mistrust of American commitments
US’ foreign aid retreat in Southeast Asia will fuel the already-fading lack of trust in American commitments in the region, an analyst argued in Nikkei Asia, “and signs are already emerging that China is moving in to fill the void.” The freezing of US aid endangers programs to disable landmines across Asia, including in Vietnam, and cuts off critical medical supplies to many countries. The moves could further imperil the US’ role as an alternative to Chinese development aid in the region: A recent survey showed a majority of respondents in Southeast Asia now favor China over the US if forced to choose between them, with only Vietnam and the Philippines leaning toward Washington.