USAID’s Collapse Threatens U.S. Diplomacy and Democracy Abroad

On Trump’s first day in office, he began his quest for government efficiency, dismantling foreign assistance diplomacy at the expense of America’s legacy. Through executive orders and a barrage of lawsuits, Trump effectively defunded and delegitimised the United States Agency for International Development (USAID) by halting all foreign aid funding. By focusing on his “America First” policy, Trump’s reckless approach jeopardised thousands of livelihoods, as not only did those employed by the agency face layoffs, but those receiving the aid lost access to vital, life-saving resources.
Established in 1961 by President John F. Kennedy, USAID has served more than 100 countries for over 60 years. With the US responsible for the largest share of humanitarian funding, USAID’s work touches every continent. From treating malnourished children in Congo to hospitals treating refugees from Myanmar in Thailand, the abrupt halt in federal funding and the subsequent collapse of the agency will continue to impact hundreds of thousands of lives and jeopardise America’s reputation as a reliable humanitarian provider for generations.
This sentiment continues to be echoed by USAID officials, as one deputy administrator was put on leave after issuing memos that stated the agency had “failed to implement humanitarian assistance” and how these actions "will no doubt result in preventable death, destabilisation, and threats to national security on a massive scale.”
With countries feeling abandoned by America, Trump's attack on the agency also weakens a core pillar of America’s values; democracy. An aspect of USAID was rooted in soft power influence, as it aimed to develop democratic institutions abroad. Whether this meant fostering economic growth, aiding in addressing weak institutions, or helping facilitate fair elections, USAID exported more than aid; it sent American principles. While this legal debacle unfolds in US courts and future foreign assistance remains uncertain, this dramatic showdown undermines democracy’s preservation, promotion, and validity.
Since the end of World War II, the US has led the charge in demonstrating how foreign assistance can be used not only for humanitarian crises but as a tool for democracy promotion, multilateralism, and, subsequently, national security. For years, America’s liberal principles of human rights, economic opportunity, and free markets were mutually beneficial and created an environment in which its influence was unrivalled. Yet, with the Trump administration, this principle and rules-based order is a past logic. As Trump seeks to wield his power through a strongman ruler’s might, he continues to ignore decades-old liberal multilateral norms, undermining the post-1945 World Order and taking the world into uncharted territory for democracy.
By throwing the US into isolationist policy and disrupting the world's precious internationalism, Trump is also opening the door for other countries, particularly ideological challengers, to exploit and take advantage of the US’ diminishing soft power.
Michael Schiffer, a former assistant administrator of the USAID Bureau for Asia from 2022 until Trump’s inauguration epitomised the situation clearly:
“The Trump administration has just put America last, while handing a gift to our biggest adversaries, notably China…America’s alliances will suffer. U.S. partners will be at risk. And America’s enemies will rejoice.”
China’s Belt and Road Initiative (BRI), launched by President Xi Jinping in 2013, aims to build economic partnerships and cooperation by investing in infrastructure and trade routes to connect Asia to the world via land and sea networks. With 147 countries, more than 60 percent of the world's population and 40 percent of global GDP, China’s leadership through the BRI has made inroads everywhere, developing its influence at the cost of US interests. With over $1 trillion spent on infrastructure projects across Asia, Africa, and Latin America, China’s BRI has arguably positioned itself as a “more reliable and influential partner” amidst the United States’ instability, posing a dangerous risk for democracy.
The study of public diplomacy teaches us, if anything, that, vis-à-vis democracy promotion, hard power does not work. We’ve seen the consequences for democracy when countries rebel from these lessons, turn a blind eye to the effectiveness of global institutions, and forgo the established rules of the liberal democracy game; authoritarianism relishes the spotlight. When leaders of global democratic powers, such as the US, continue to display anti-democratic ideals to the world, such as siding with dictators, encouraging annexation and land gain, leaving accountability institutions, and cancelling aid for activists combating authoritarianism, it is only a matter of time until the entire democratic world heads towards an unparalleled backsliding.
“The United States Agency for International Development (USAID) has long strayed from its original mission of responsibly advancing American interests abroad, and it is now abundantly clear that significant portions of USAID funding are not aligned with the core national interests of the United States,” argues an official tweet from the US State Department.
At its core, USAID aims to “promote resilient, democratic societies” through various means, reliant on the principle that ensuring their success advances US security and prosperity. The Trump administration's failure to understand that democracy promotion through liberal-based approaches is a core interest of the US illuminates how America’s interests do not guide his “America First” foreign policy; it is shaped by his own.
Image: Flickr/Trump White House (Tia Dufour)
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