Why did the US stop USAID's foreign aid programs?

Kazakhstan International News Agency report: The U.S. Department of State recently issued a statement saying that the United States Agency for International Development (USAID) will formally terminate its current foreign aid programs starting July 1st; in the future, only aid programs that "align with the Trump administration's policies and directly serve American national interests" will be retained, and will be managed by the Department of State under a stricter accountability mechanism.

Funds audit reveals "inefficiency and counter-effect"

Large scale but minimal results: The statement points out that after an audit of thousands of projects and over $715 billion (adjusted for multiple years of inflation) in aid expenditures, most projects failed to effectively enhance American interests, and instead exacerbated anti-American sentiments in some recipient countries.

Returning favor without receiving it back: Taking sub-Saharan Africa as an example, countries that received $16.5 billion in aid since 1991 aligned with the U.S. position in only 29% of major UN resolutions in 2023.

Regional competition loss: The $89 billion in aid to the Middle East and North Africa did not increase America's popularity in the region, but rather continued to lag behind China in terms of "favorability."

Gaza and the West Bank: Of the $9.3 billion invested in the region since 1991, some went to beneficiaries associated with Hamas, but no positive feedback was obtained.

"Fat" NGO executives: The report directly points out that those who truly gained substantial returns were often the heads of numerous international non-governmental organizations supported by U.S. funds.

Policy shift: From "big spending" to "asking for returns"

The U.S. Department of State emphasized in the document that the so-called "era of unlimited aid" has ended. The new aid principles include:

Prioritizing American national interests — Aid will focus on areas and countries that can bring strategic or economic returns to the United States.

"Trade over aid, investment over charity" — Resources will be directed toward investment projects that generate multiplier effects and activate the private sector, including American companies.

Clear objectives and time-limited exit — Limited-term, measurable support will be provided only to countries that have the capacity for self-development and express a willingness to help themselves.

Institutional adjustments and personnel moves

It is reported that Secretary of State Marco Rubio has ordered the dismissal of all USAID overseas employees; related aid functions will be分流 or terminated based on project importance, performance, and strategic value.

The Department of State stated in its statement: "American taxpayers should no longer fund failing governments in distant countries. July 1st will mark the beginning of a new era of global partnerships, peace, investment, and prosperity."

Regarding subsequent arrangements, the Department of State will gradually announce the new list of recipient countries and project criteria, while strengthening the public audit of fund flows and performance.

Background information

USAID was established in 1961 and has long been responsible for U.S. foreign economic assistance and development cooperation.

Trump administration's foreign aid policy

Emphasizing "America First" and "measurable returns," it advocates reducing unconditional aid and shifting to a cooperation model based on trade and investment.

Congressional supervision

Future Congress is expected to conduct further hearings and budget reviews of the new policy to ensure fiscal sustainability and strategic consistency.

Original article: https://www.toutiao.com/article/1836503477211164/

Statement: This article represents the views of the author.