Tag Archives: USAID

Trump’s 90-day freeze on foreign aid could be the precursor to the collapse of the UN, its corollary agencies, the World Bank, the IMF and the entire post-World War Two international order. These are not my words. They come from Sir Myles Wickstead, Britain’s leading expert on development issues whom I spoke to on Friday.

“The whole international system,” said Sir Myles, “depends on each country paying its fair share based on their national income. If a major player like the US pulls out the entire edifice is endangered.”

He also said that many would die as an immediate result of the freeze and thousands of aid workers would lose their jobs, which would have an impact on distribution in the future even if there are no long-term cuts. “Philanthropic organisations such as the Gates Foundation will be able to fill some of the gaps,” said Sir Myles, “but they have only a fraction of the money available to the US government.”

The United States is the world’s largest contributor to international development aid. In 2023 it provided $73 billion in foreign aid—more than twice as much as the next biggest contributor—the EU at $35 billion. Germany was third at £32 billion, followed by Japan $28 billion and the UK (which reduced its foreign budget from 0.7 percent of GDP to 0.5 percent).

The American freeze and anticipated cut is expected to have an especially disastrous effect on Sub Saharan Africa. More than half a dozen countries rely on development aid—mainly American—for half of their GDP. It makes up 20 per cent for more for another dozen. All 54 countries in Sub-Saharan Africa receive proportion of their income in aid.

American aid has been especially important in combatting HIV/AIDS around the world through its PEPFAR programme. It is reckoned that PEPFAR has saved 25 million lives since it was initiated in 2003. A government spokesman for South Africa, where 19 per cent of 14 to 49-year-olds suffer from HIV/AIDS, said: “Millions may die as a result of this freeze. Patients need to receive their treatments on a regular basis. If they don’t they could die. And heavens knows what will happen if there is a permanent cut.”