Getting ready for future with no foreign aid
Afew weeks before 2016 took leave, David Hale, the US ambassador to Pakistan, announced that the US government, via the United States Agency for International Development, would be investing $7.3 billion for increasing the number of female teachers in Pakistan. The announcement came as part of the 16 days of activism initiative by USAID’s Gender Equity Programme, which the Aurat Foundation is implementing. Around the same time, USAID also signed an agreement with Wapda to provide $81 million for the construction of the KurramTangi Dam that will help generate 18MW in the Waziristan region.
As the numbers show (and these are not cumulative figures; USAID’s total investment in Pakistan is much larger) USAID invests many millions in Pakistan, fuelling Pakistan’s NGOs. When President-elect Donald Trump takes office, the future of these projects will be in peril. According to an article published in Foreign Policy, officials at USAID had not been contacted by the new administration. The situation is unexpected; the same official noted that incoming US Presidents generally have detailed plans and policy briefs regarding how they want US aid commitments to be disbursed. This means there is little clarity regarding the $34 billion that the US Congress has approved for USAID in the upcoming fiscal year.
The uncertainty regarding USAID’s future is not limited to delays in communication between the President-elect and the agency. According to foreign policy experts, Trump’s America First doctrine may spell far more drastic changes in US investments in development programmes. In June 2015, Trump proclaimed that the US should cut off aid to “all countries that hate us” and use the money to build its own infrastructure. In true Trump style, he backtracked on the statement in April 2016, when he said that the US should continue giving aid to Pakistan because “we don’t want to see total instability”.
Regardless of which of the two statements represents Trump’s actual intentions, the prognosis is not good. Alex Thier, a development expert writing for DevEx, noted that scrapping USAID has been a proposal of conservatives in the US. One of the champions of this was Newt Gingrich, who until a few weeks ago was a frontrunner as Trump’s pick for secretary of state. As that points to a less stringent view on foreign aid, it is unlikely that the large budgets for programmes such as gender equity, capacity building for democracy, etc. will keep the same form that they have over the past eight years. Experts note that the positions of vicepresident-elect Mike Pence on women’s reproductive rights also mean that funding for FP programmes is likely to end.
The conservatives who are likely to have important roles in the Trump administration will probably recognise that development aid is a means to court other nations and maintain US influence. At the same time, it is possible that they will focus less on ideals and more on whether the countries are delivering what the US demands of them. Focus is likely to be on getting the “best deal” for the US, with little interest in the recipient countries.
As a recipient of USAID funds, Pakistan would be wise to stay warned and ready for the coming future. As money for women focused and gender equity programmes dries up, there is a grave risk for Pakistan’s NGO sector. Women’s organisations that rely significantly on USAID funds to implement programmes should immediately look through their budgets and focus on diversifying their funding base via local donors. Even more importantly, they should make an effort to use the money they have received to build up their cash reserves in the event there is no more money coming in the future.