
The withering of American aid due to the dismantling of USAID by the Trump administration has understandably become the subject of international headlines, given that the US is the largest bilateral donor in the world. However, the US is not the only powerful country which has decided to cut back on its aid commitment. Many European countries, Australia and Canada have also decided to prioritise spending on defence rather than increasing their financial commitments to address human development goals.
Even prior to the current aid crisis, the means and mechanisms to undertake international development were not without contention. The fact that glaring depravations remain evident in most poorer countries indicates that the past eighty years of international development efforts have not been encouraging. The reasons for development ineffectiveness are varied. The meager amount of aid allocated to address global challenges, and the way this aid has been deployed, have both remained problematic.
Despite all the economic growth achieved since the end of WWII, the underlying structures of global production remain exploitative. After centuries of colonial subjugation, the continuation of unfair trade practices, as well as the use of aid to secure strategic objectives, have led to the perpetuation of jarring disparities between, and within, countries. The increasing reliance on lopsided market mechanisms did not create a level-playing field for everyone and instead led to the accumulation of wealth and power in the hands of the few, as well as increasing indebtedness of already resource-constrained nations.
Market-based economic policies have led to a ruthless depletion of natural resources and the creation of new problems, such as climate change, which is now poised to worsen existing vulnerabilities.
Climate-induced disasters have the potential to increase existing sources of friction between and within nations due to which climate change has been dubbed a 'threat multiplier'. Despite this recognition, however, we are seeing conventional security concerns superseding the need to contend with climate change or addressing other pressing humanitarian and development needs.
Given these perturbing trends powerful countries, which are trying to boost their national security via renewed rearmament and increased defence spending, may find these efforts to be insufficient in the face of growing insecurity unleashed by their decision to roll back international aid programmes.
Due to drastic aid cuts, we can expect a shrinkage of bilateral aid and a reduction of multilateral programmes by specialised UN agencies, for instance. Funding is also being cut for NGOs which provide crucial humanitarian aid, in addition to delivering key social services to marginalised segments.
Sweeping aid cuts are taking place amidst an intensification of tensions within already stressed regions of the world, where competition for dwindling resources is causing disputes between rival nations, and between local communities divided based on ethnic or religious affiliations.
In the Lake Chad region, for example, pastoralist and herder communities are experiencing a spike in violence and displacements due to disputes over water and land. Closer to home, there is evidence of increased intra-provincial tensions within Pakistan due to diversion of rivers by upper riparian Punjab to boost agricultural productivity. Moreover, the melting of glaciers which replenish transborder river systems shared by not only India and Pakistan, but also other populous regional states, has the potential of causing devastating conflict.
Yet, there is now diminished international capacity and resolve to address the underlying causes of discord and deprivation. The disgruntlement and desperation being triggered by the neglect of basic human needs is providing fecund ground to extremist groups to gain more influence, which can increase destabilisation well beyond individual states. Climate- and conflict-driven displacements are also poised to worsen the global migration crisis. Yet, instead of trying to reform aid policies and improve aid delivery mechanisms, powerful countries of the world seem adamant to cut back on aid investments.
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