A requiem for USAID

The USAID tap has run dry, and its disbandment has sent tremors around the globe. The freeloaders in the developing world, various governments and NGOs, received a seismic shock. Those who depended primarily on USAID for their viability, survivability, and sustainability are on tenterhooks. There has been fast-track shedding of employees at most of these NGOs once they realized that this “catastrophic” situation occurred after a pragmatic tech billionaire saw through this worn-out concept of a free lunch and closed down the cafeteria. Although a number of NGOs are providing yeoman services, the ground reality is that many of them took USAID as a matter of habit, as a source of easy money, and as a channel of continuous funding. Now what? They never expected DOGE led by Elon Musk would be the Grim Reaper.

President Donald J Trump along with Elon Musk forcefully embarked on the mission to Make America Great Again. There has been a fundamental change in which the bloated American bureaucracy is being sent home right, left, and center. The Department of Government Efficiency has implemented significant reductions in the federal workforce. Reports indicate that at least 100,000 of the 2.3 million federal employees have been laid off or accepted buyouts since Trump’s inauguration in January. The target is to cut down 10 percent of the federal workforce.

At the same time, America is revisiting its commitments to many international as well as domestic organizations. It has withdrawn from WHO, Paris Club, etc., and has reduced or plan to reduce contributions to many international organizations. The United Nations Agencies are also in the firing line. Trump has withdrawn the US from UN Human Rights Council. UNESCO may be next. After that ILO, because the US military-industrial complex as well as tech billionaires are not too ardent about Worker Rights, Labour Standards, etc. ILO constituents (Workers, Employers, Government) across the world are in for an enormous jolt. It is being reported that the US will stop most of its contribution to IMF and World Bank and there is a possibility of it even saying goodbye to these two International Financing Institutions.

The new philosophy in Washington is that despite annually allocating around US$70 billion, mostly as aid, the US was more often than not being reviled, mocked, and criticised in most countries or communities that USAID financially supported over the years. In Pakistan, some NGOS did a remarkable job in various socioeconomic sectors, especially education and health, renewable energy and even community development. But the crucial point is that these NGOs are facing the crunch because they rarely endeavoured to prepare themselves in case USAID funding ceased or reduced. They never factored in alternatives nor even prepared business plans to raise funds to maintain their sustainability. Their obvious complacency has now put them between a rock and a hard place.

Is the party over for many NGOs or is there a gleam of hope? A lot of studies, reports, events, and actions are in their Archives. Countless conferences and seminars were held in five-star hotels around the country. Panel discussions, technical speeches, and power point presentations were a common feature. It’s another thing that the NGOs were mostly preaching to the converted. Now, the caravan has come to a stop. The NGOs who were experts and proficient in convincing USAID to fund their projects and their administrative expenses are now running helter-skelter finding new donors. However, most of the foreign donors, themselves hard pressed for finances, are weighing their options carefully. NGOs are knocking at the portal of the European Union in Islamabad, highlighting their objectives, successes, and achievements. Ministries as well as Multinational Companies have been approached. Tough days ahead.

There have been press reports as well as on social media on what the aid suspension would ensue for Pakistan. One such report stated that “The suspension of programmes centered on governance, democracy, and human rights may hinder Pakistan’s democratic progress and human rights advocacy.” Poppycock. Is this the responsibility of some bureaucrat sitting in Washington to determine that only an NGO can ensure that fundamental rights are not hindered? Why should others teach the government of the day to vouchsafe that democracy, good governance, and human rights are basic and fundamental for the citizens? Aren’t these essential rights guaranteed by the state for every citizen? Does USAID have to pay to some NGO to guarantee that the citizens’ rights are protected and practiced by the government, especially when these rights have seldom been truly accorded to the people in the last more than seven decades, no matter whatever any NGO tried to do. USAID has been overly generous in its allocation of funds to Pakistan, ever since President John F Kennedy inaugurated the USAID initiative. Pakistan has been one of the prime recipients of such largesse and attracted over $200 million just last year for social and energy projects.

The question is why USAID has been suspended for just ninety days. Trump and Musk must look inwards and bring about radical change in America rather than becoming a sugar daddy for global NGOs and governments. Take the matter of homelessness in the US where nearly 800,000 or approximately 0.2% of the US population is homeless and living in homeless shelters or in parks and on street. Over 140,000 homeless peoplelive in New York City alone. Ironically, while USAID is more concerned with improving the world through its policy of pumping more and more money, there are many reasons for homelessness in US alone. Basically, there are severely underfunded programmes such as affordable housing shortages, inadequate safety nets, and inequitable access to quality health care. Washington policymakers should think about diverting around $20-25 billion annually (saved from USAID) in order to end the misery of the homeless as well reducing the negative images of homeless exhibited on social media, etc. The question is whether Trump and Musk have the will to channelize money to end homelessness in America. In 2017, Mark Green, on his first day as USAID Director, while outlining his vision stated that “I believe the purpose of foreign assistance should be ending its need to exist. Each of our programs should look forward to the day when it can end. And around the world we should measure our work by how far each investment moves us closer to that day. Now, I’m under no illusions. In some places, that day is quite a ways off.”

For Pakistanis, the message is very clear. An opportunity has arisen to unshackle the yoke of dependence on aid, aid, and aid. The time is right to become a proud nation and shun all such handouts from foreign organizations. The Administrators/Owners of NGOs should also curb their tendencies of using aid money to set up seven-star offices, travelling in premium class, staying overseas at five-star hotels, and riding in expensive SUVs. At the same time, the NGOs must reduce their administrative expenses, which usually are up to 20 percent of the inflow of funds. Moreover, it is not imperative to organize events in five-star hotels when these could be held at austere venues. These NGOs are also advised to learn and emulate the art of soliciting donations from successful organizations such as Edhi, Saylani, TCF, or Indus Hospital. All it requires is to develop trust, integrity, transparency, and dedication to the cause. The point to remember is to “Accept the situation and move on with a smile, no matter whether the smile is real or fake, cause no one really cares.”