Demonstrators outside the headquarters of the United States Agency for International Development (USAID) in Washington, on February 3. AFP
Demonstrators outside the headquarters of the United States Agency for International Development (USAID) in Washington, on February 3. AFP
Demonstrators outside the headquarters of the United States Agency for International Development (USAID) in Washington, on February 3. AFP
Demonstrators outside the headquarters of the United States Agency for International Development (USAID) in Washington, on February 3. AFP


By cutting USAID, is Trump really making America great again?


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February 05, 2025

On Monday, I was on a conference call with friends and colleagues in the aid and peace-building community. The mood was sombre as we contemplated the results of US President Donald Trump’s order to freeze nearly all American foreign aid for 90 days. Although Secretary of State Marco Rubio swiftly followed up by saying that “life-saving humanitarian assistance” could continue, the original announcement had already affected huge numbers of people.

In Khartoum, Sudan, the US was the biggest donor for the soup kitchens that were feeding more than 800,000 people. Last Friday, it was reported that 434 of the 634 kitchens run by volunteers had shut down. Hospitals in camps on the Thai border, where about 100,000 refugees from Myanmar live, closed their doors. Malaria programmes in Uganda and Bangladesh have been affected, with key staff laid off. Aids clinics in South Africa have had to suspend their work. The Middle East has been affected, too, as this paper reported on Tuesday.

But there’s another kind of US foreign aid, as White House press secretary Karoline Leavitt outlined on Monday. Citing “$70,000 for the production of a DEI musical in Ireland”, $47,000 on a “transgender opera” in Colombia and $32,000 for a “transgender comic book” in Peru, she said: “I don’t know about you, but as an American taxpayer, I don’t want my dollars going towards this [sic] and I know the American people don’t either.” Cutting these programmes, she said, is exactly what Elon Musk, director of the US Department of Government Efficiency, “has been tasked by President Trump to do”.

It doesn’t matter what you think about DEI – or Diversity, Equity and Inclusion – as a policy, and the opera in Colombia may quite possibly be a masterpiece, Ms Leavitt knows her audience. They most certainly will be thinking: “We’re funding that?” What cannot be denied, as well, is that such projects are neither neutral nor indisputably beneficial. They are fundamentally political.

This links to a third category of US foreign aid. The agency has long been accused of interfering in the internal political affairs of a number of countries, and Mr Trump appears to agree. The first paragraph of his executive order reads: “The United States foreign aid industry and bureaucracy are not aligned with American interests and in many cases antithetical to American values. They serve to destabilise world peace by promoting ideas in foreign countries that are directly inverse to harmonious and stable relations internal to and among countries.”

Critics from the anti-colonialist left and the Global South might not use quite the same words. But they have complained for decades that US-funded projects – nominally to promote a specific type of governance, human rights and so-called independent media – are often highly partisan attempts to undermine governments and promote politicians of whom the American foreign policy establishment approves.

The trouble is that all three categories can end up being lumped together, and the fact that USAID provided 42 per cent of all humanitarian aid tracked by the UN last year – for which the world should be very thankful – can be overlooked by those irritated by what they see as never-ending American meddling, if not downright coercion.

So here’s a suggestion for Mr Trump, Mr Musk and Mr Rubio. Let the review of US foreign aid proceed, and identify the core humanitarian work. Cut anything and everything that’s even slightly political. Drop the controversial. Focus the $70 billion that the US so generously spends annually on international aid on the work everyone can agree on. Eradicating diseases. Feeding desperate people. Strengthening education and health services. Supporting women and girls. Building peace and enabling dialogue. Monitoring elections when invited to be an objective observer.

Think about the kind of work the Carter Centre does. Does anyone, anywhere object to that?

This would fit with the “Maga” view that the rest of the world’s politics is not their issue, and Mr Trump’s words in his speech at the 2017 Riyadh summit that I’ve quoted before: “America will not seek to impose our way of life on others,” he said. “We are not here to lecture – we are not here to tell other people how to live, what to do, who to be, or how to worship.”

Let the aid be straightforward, with no strings attached. If anyone in the Trump administration needs a reason to spend those billions without a quid pro quo, well, many if not most leading Republicans see themselves as godly people, and all the Abrahamic religions would approve of such charity. And in any case, wouldn’t unfettered US aid – with no lecturing, moralising, or conditions – actually improve America’s standing in a lot of countries?

A kind of template for this springs to mind. Many years ago, I went to Kenya for a reporting trip supported by a Christian charity. Their workers, some of whom were priests, never talked about their faith, however, to forestall any accusations that they were really there to proselytise. They did concede that a phenomenon called “unavoidable witness” could occur. Someone might see the work they were doing – in this case, in education about HIV and reducing the stigma for the infected – then become interested in what motivated them, and thus their religion. But the charity’s mission explicitly ruled out demanding that “people hear any religious message or convert to Christianity before, during or after receiving assistance”.

If US foreign aid was repurposed to the purely charitable and humanitarian, “unavoidable witness” would surely be inevitable. No one could see what is still the world’s mightiest country selflessly donating such large sums of money, while expecting nothing in return, and not be impressed.

Perhaps it’s too much to hope for. But if Mr Trump wants to make America great again, not just in the eyes of his fellow citizens, but in the hearts of the rest of the world, it would be a magnificent start.

War and the virus
The Details

Kabir Singh

Produced by: Cinestaan Studios, T-Series

Directed by: Sandeep Reddy Vanga

Starring: Shahid Kapoor, Kiara Advani, Suresh Oberoi, Soham Majumdar, Arjun Pahwa

Rating: 2.5/5 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: February 06, 2025, 4:05 PM