Dismantling USAID: Yes, No, Maybe?

In late 1980, more than a year after the triumph of the Sandinista Revolution, the administration of President Jimmy Carter was still funding infrastructure in Nicaragua through USAID. By November 1984, with President Ronald Reagan’s “Contra War” well underway, your future bloguista was amused by this left-over sign at a road rebuilt near Matagalpa.

by Jim Hodgson

Back on launch day of Trump 2.0, the president issued an executive order that suspended international aid programs for 90 days, including those of the U.S. Agency for International Development (USAID).

The move came with a lot of over-the-top rhetoric and outright lies: that USAID spent “$100 million on condoms to Hamas” and that it “bankrolled” the Politico digital news company. “It’s been run by a bunch of radical lunatics. And we’re getting them out,” Trump told reporters on the evening of Feb. 2.

There are, of course, dozens of issues about which to criticize the Trump regime. But this is a blog that sets out to unwrap development issues, so let’s get into it.

Congress established USAID in 1961 to bring together programs that were administering foreign aid. Focusing on long-term social and economic development, USAID disbursed about $72 billion in 2023, less than 1% of the U.S. annual budget. It is one of the largest aid agencies in the world. 

You’ll remember, of course, that the United Nations target for spending on Official Development Assistance is 0.7 per cent of gross domestic product. Only five countries meet or exceed that goal: Norway, Luxembourg, Sweden, Germany and Denmark. In 2023, Canada contributed 0.37 per cent of GDP; the United States contributed just 0.24 per cent, seventh lowest among 31 OECD countries

Trump’s order, carried out by his government efficiency hatchet-man, Elon Musk, chopped humanitarian programs around the world: famine relief in war zones; programs to stall malaria in 22 African nations; vaccinations in vulnerable areas; and access to medications by people living with HIV and AIDS. Several U.S. government websites also removed resources on HIV. (That also happened when Trump first took office in 2017).

Newsweek reported Feb. 6 that just months before Musk shut down USAID, the agency was investigating its relationship with Musk’s Starlink satellite company.

In days since the order, enough voices were raised in alarm to get funding for HIV and other essential medicines restored—though it wasn’t clear if that included preventative drugs like PrEP. For more than 20 years, PEPFAR (the President’s Emergency Plan for AIDS Relief) worked within and alongside the Global Fund to Fight AIDS, TB and Malaria and the Joint United Nations Program on HIV/AIDS (UNAIDS).

Also, a federal judge on Feb. 7 temporarily blocked the administration from placing 2,200 USAID employees on paid leave, siding with workers who argued Trump and Musk lack the authority to immediately dismantle an agency created by congressional legislation.

The Trump regime blames “migrants” for much of what supposedly ails the United States, but in this time of unparalleled worldwide migration of people, the USAID cuts hit the United Nations High Commissioner for Refugees and the International Organization for Migration (IOM)—two agencies that are critical in managing and measuring the flows of people.

No one should argue against humanitarian aid, although Musk and Republican members of congress who see empathy as a character flaw will do so. In a world still suffering from massive inequality, such aid is urgently needed. The U.S. Christian magazine Sojourners offered a strong defence of the humanitarian work of USAID.

What happens after the 90-day review? My guess is that some functions will be folded into the State Department and thus more susceptible to narrow political goals, like subversion of other countries’ governments. I feel badly for beneficiaries of the humanitarian programs and for many well-intentioned employees; not so much for the vast array of U.S.-based independent contractors who get rich from the misery of others.

Sheinbaum: “It’s better they close it”
As noted above, USAID was created in 1961—just two years after the triumph of the Cuban Revolution. There was no artifice: USAID was to counter the influence of Soviet Union. In recent years, USAID has been at the heart of U.S. challenges to the growing influence of China, which has a successful “Belt and Road” foreign aid program of its own.
My venerable Mac laptop computer tells me that I have 226 files that mention USAID. Almost all of the documents are about the ways that USAID is used as an instrument of U.S. foreign policy, especially its work alongside other U.S. institutions that promote—or subvert—democracy in other countries: the National Endowment for Democracy (NED), the International Republican Institute, the National Democratic Institute for International Affairs and even the Central Intelligence Agency.

USAID even had an Office of Transition Initiatives (OTI) that gained infamy in 2014 over its covert “Cuban Twitter” (ZunZuneo) social media program that was aimed at overthrowing the Cuban government was revealed by Associated Press. 

Sheinbaum (left): USAID must be transparent; in Mexico, it has funded the opposition. Right: USAID still in the headlines Feb. 8.

In her morning news conference on Feb. 4, Mexican President Claudia Sheinbaum, breaking away from the dispute over tariffs, lashed out at the overt political activity of USAID. “This agency has funded research projects and groups opposed to the government. That’s the case with Mexico.”
She mentioned an organization that she called, “Mexicans for Corruption.” (She was only half-joking: it’s Mexicans against Corruption. The group actively opposed her predecessor Andrés Manuel López Obrador’s effort to reform the judicial system, and it had support from USAID.) 
“And how is it that they get involved in politics, those agencies that are about aid. In that sense, if the United States wants to help with development, it should be transparent,” she continued.  “The truth is that there are so many things USAID does that in truth it is better they close it.”
In a similar vein, Colombian President Gustavo Petro said some U.S. help is not welcome and has to go. “Hundreds of immigration officials who guard our borders were paid by the United States. This aid is poison,” he said during a Feb. 3 cabinet meeting. “That should never be allowed. We are going to pay with our money.” In 2024, the agency paid nearly $385 million to Colombia.

Haïti chérie

Which brings me to Haiti, a country whose heartbreak I know well. For more than 45 years, it has been particularly afflicted by HIV and AIDS. The ongoing political crisis, worsened by uncontrolled activity by criminal gangs, continues to hamper relief efforts including support to people living with HIV and AIDS

Repeated U.S. interventions have made things worse. From 2011, with the presidencies of Michel Martellyand Jovenel Moïse and then the unelected leadership of Prime Minister Ariel Henry through early 2024, the United States and the local elites had the leaders they wanted: men close to the business sector who had close ties in the United States.

That fruitless model was finally shoved aside last June 11 with the installation of a transitional council (CPT). It’s wobbly but hope persists that it can finally organize new elections that produce leaders that Haitians want. A truth commission and an electoral council have been named.

In the meantime, the problem of gang violence is being addressed (though ineffectively) with the addition of the Multinational Security Support Mission (known as MMAS), led by police from Kenya and bolstered with police from El Salvador and Guatemala. Despite UN backing and many promises, it is underfunded and understaffed.

Feb. 4: U.S. aid to the security mission is frozen. Feb. 6: aid is renewed

A new blow came Feb. 4 when the UN announced that the shutdown of USAID meant funds for the MMAS were frozen. But two days later, U.S. Secretary of State Marco Rubio announced that MMAS would be protected despite the USAID cut, adding to speculation that Rubio, Musk and Trump are not all operating from the same playbook.

In the wake of the axing of USAID, the best piece that I have read about its activities in Haiti is by a long-time observer, Jake Johnston of the Center for Economic Policy and Research (CEPR). At the end of a Feb. 4 essay about the agency’s work in Haiti, he writes:

The term “aid” encompasses many different things: humanitarian assistance and development programming, contracts and grants, support to local organizations and multimillion dollar contracts to DC-area firms. 

There are many parts of the US foreign aid industry that can and should be stopped or significantly reformed. But that doesn’t mean that shutting down USAID, or making its assistance even more overtly political by placing it under the umbrella of the State Department, is going to be a good thing, either in the short or long term. 

The reality is that, where foreign assistance is least effective, it is largely because it is designed to promote US interests rather than address the needs of those ostensibly on the receiving end. The changes announced by the Trump administration are not likely to truly disrupt US soft power abroad. If anything, it will make political interventionism an even more explicit aim of US foreign assistance.

Amid controversy and offers of support, Haiti has a new transitional council

by Jim Hodgson

More than 40 church, labour and aid organizations called on Canada to support Haiti’s transitional council (CPT) and to provide additional aid.

But divisions within the council—formed April 12 to preside until new elections can be held—became apparent April 30 after the council chose its chair, former senator Edgar Leblanc Fils, and named an interim prime minister, Fritz Bélizaire. The CPT is made up of a range of political actors, including some who supported the former, relatively progressive, presidents Jean-Bertrand Aristide and René Préval, and others who supported the more recent U.S.-backed presidents Michel Martelly and Jovenel Moïse, along with civil society and business sector representatives.

With the Bélizaire announcement, it became clear that four of the seven voting members of the CPT had formed what they called an “indissoluble majority block.” 

This manner of working, writes journalist Gotson Pierre of Alterpresse, was not foreseen in the multi-party agreement on April 3 nor in the April 12 decree that created the CPT. “Can such a block derail the transition? In such a case, of what use would it be?” he asked. 

Then on May 8, it became apparent that the role of CPT chair will revolve among the four long-time politicians who comprise the so-called indissoluble block. 

This move was strongly criticized as “absurd” and a sign of “a serious problem in Haitian political culture” where “political actors defend their personal and clan interests to the detriment of national interests.” Political scientist Joseph Harold Pierre said the CPT chair needs to have a strong rapport with the international community, something that cannot develop in just five months.

Canadian response to the multidimensional crisis in Haiti

These concerns are important. One might have expected that decisions would be taken by consensus, especially given that the CPT includes two non-voting civil society representatives.

Even so, this transitional council still seems to be the best way forward in the face of an unprecedented crime wave, rulers that no-one elected, and the imminent arrival of an international police force led by Kenya. 

A letter endorsed by about 40 organizations that were brought together by the Association québécoise des organismes de coopération internationale (AQOCI), the Concertation pour Haïti (CPH) and Cooperation Canada calls on Canada to support the CPT, stand against arms trafficking to Haiti, and to deploy appropriate humanitarian aid.

Part of the letter states:

1. Support the political transition process

Canada should recognize and support the recently sworn-in Transitional Presidential Council so that it can implement the “Political Accord for a Peaceful and Orderly Transition” as quickly as possible. This agreement, despite its imperfections, offers the opportunity to restore constitutional normalcy, the proper functioning of institutions and legal order for Haitians. 

Canada should insist on the broad and effective representation of all segments of society, particularly women, youth and the diaspora, within the transitional bodies provided for in the Political Accord. The participants deplored the fact that only one of the nine appointed members of the Presidential Council was a woman (without a deliberative voice). Furthermore, to enable Haitians to take their destiny back into their own hands, Canada should help recall the place and role of the diplomatic corps in Haiti, whose sometimes excessive interference in national affairs offends national dignity. 

Canada should take note of past mistakes and exercise increased vigilance to restore integrity and honesty in governance while preventing the violation of human rights in Haiti. 

2. Take a stand against arms trafficking to Haiti

Canada should engage in courageous and uncompromising advocacy with the United States to stop arms trafficking to Haiti, based on the recent report by the United Nations Office on Drugs and Crime. 

Canada must encourage international responses guided by the will of the Transitional Presidential Council and the institutions of the Political Agreement for a Peaceful and Orderly Transition to restore security, promote law enforcement and support Haiti’s coastal defense. This requires providing the security forces (police and army) with logistical and financial support, without which the situation will remain precarious, hampering any progress towards democracy. For its part, Canada must be transparent and consider legal proceedings or the imposition of sanctions (seizure of funds or travel ban) against those involved in the transport. 

3. Deploy appropriate humanitarian aid

Any sustainable solution for the well-being of Haitians requires a paradigm shift. Canada must reconsider the current project-based approach to humanitarian aid, which too often fails to reach the most vulnerable people and the most affected territories. Together with civil society organizations, Canada should initiate a new way of coordinating humanitarian and development actions to support local economies, promote local expertise and respect the dignity of populations. To this end, Canada should implement the triple nexus approach, combining interventions structured in the humanitarian, development and peace (including social cohesion) fields. 

Faced with a multifaceted crisis and immense humanitarian needs, Canada should also increase and diversify its funding to reach more of the sectors affected (agriculture, health, protection of civilians, hygiene and sanitation, shelter, education, economic support, etc.), while considering the question of access to the services offered. At a time when the population has witnessed the airlift of diplomats being evacuated and given that almost 50% of the population is at risk of acute food insecurity by June 2024 (IPC, 2024), it is essential to ensure that access to aid is facilitated throughout the country. 

Being Haiti’s second biggest donor is not enough. The above recommendations are part of an overall call for greater coherence in Canada’s foreign policy towards Haiti. Canada can once again demonstrate its values and feminist approach to promoting peace and security in the world by becoming a champion of Haiti’s cause in the international community. 

Haitian claim for slavery reparations at the heart of a UN forum

by Jim Hodgson

A United Nations forum on the historic wrongs committed against people of African descent is building momentum in favour of an international tribunal on atrocities dating back to the transatlantic trade of enslaved people.

When the UN Permanent Forum on People of African Descent (PFPAD) held its third session in less than two years in Geneva in mid-April, African and Caribbean governments together with civil society organizations pressed forward with plans to create a tribunal that would be similar to that which oversaw the Nuremberg trials of Nazi war criminals after World War II.

Proponents say such a tribunal would help establish legal norms for international and historical reparations claims.

Supporters include many members of the Caribbean Community (CARICOM), made up of 15 member states, and the African Union (AU), which includes 55 states—and Antonio Guterres, the UN General Secretary. “We call for reparatory justice frameworks, to help overcome generations of exclusion and discrimination,” he said March 25.

Supporters argue that Western countries and institutions that continue to benefit from the wealth slavery generated should be held accountable, particularly given ongoing legacies of racial discrimination. Opponents say that contemporary states and institutions should not be held responsible for historical slavery.

The World Council of Churches was among faith-based and civil society organizations that came together at the PFPAD forum to examine what states and other actors may do to redress the historic exploitation and harms that Africans and people of African descent have suffered. (You can learn more here about global ecumenical efforts to overcome racism, discrimination and xenophobia.)

Righting the wrongs in Haiti

Given that Haiti’s claim for reparations is among the strongest, the voices of Haitian civil society groups and their diaspora counterparts were heard at the PFPAD forum. 

Those groups used the forum to put a spotlight on the crucial role that Haiti played in the struggle to end slavery. “To recognize the historic context is essential to understand the unique position of Haiti in the global struggle for justice and egality,” they said in a statement before the forum. Participating groups—including the Montana Accord network and of the Haitian-American Foundation for Democracy (HAFFD)—said they strongly approve calls for reparations to Haiti.

Le Marron Inconnu, and in the background, the National Palace before the 2010 earthquake.

Haiti was born as an independent nation in 1804 after the enslaved people revolted against their French colonial masters. The values of “liberté, égalité et fraternité,” expressed in the triumph of the French Revolution in 1789, resonated among slaves in Saint-Domingue, France’s richest colony. In 1804, the world’s first successful slave rebellion resulted in the birth of the Republic of Haiti. 

Beginning in 1825, France squeezed an “independence debt” from Haiti that adds up to at least $21 billion in today’s dollars. That estimate comes from The New York Times, but backers of the reparations claim say the amount is much higher.

“It’s $21 billion plus 200 years of interest that France has enjoyed so we’re talking more like $150 billion, $200 billion or more,” Jemima Pierre, professor of Global Race at the University of British Columbia, told Reuters.

Despite the obvious injustice of that debt, France continues to resist pressure to join in reparations. In August 2010, about 100 prominent academics, authors, and human rights activists signed on to an open letter to then-President Nicolas Sarkozy, arguing that the case for repayment was “morally, economically, and legally unassailable.” France dismissed the petition, pointing to its record of delivering other aid to Haiti and not addressing the legitimacy of the debt.

“What’s important is that it’s time that France recognises this and we move forward,” Haitian civil society activist Monique Clesca told Reuters. France, whose development agency has given hundreds of millions of dollars in aid to Haiti, has previously referred to a “moral debt” owed to Haiti.