Trump’s Global Aid Pause: A path to a New World Order

The world especially the global South anticipated Trump presidency and after his inauguration the world was excited by his many executive orders (EO). The President in Botswana summarized the mood, he said at a press conference that the world was more peaceful during Trump’s first term. In his own way as President elect he influenced Anthony Blinken’s State department to bring about a ceasefire in Gaza.

As time has passed the reality of Trump 2.o has set in, the world has a glimpse of what his world is going to look like, his Secretary of defense broadened the picture of how Washington is to operate. During the Congressional hearing to approve Pete Hegseth nomination, it turned out he can’t name a single country in South East Asia, something that is telling about Great Power Competition between Beijing and Washington.

For global South, Trump presidency is was denoted with his stroke of a pen on January 20th 2025, that issued an EO pausing foreign development assistance for 90 days to foreign countries, NGOs, international organizations and contractors. By 5th February almost all employees that run the United States Agency for International Development (USAID) were prepared to be laid off.

At the height of Cold war in 1961, US President J.FKennedy created USAID to be the USA’s vehicle for all nonmilitary foreign aid with the aim of containing communism, it was also the US’s moral responsibility and economic obligation as a rich country to assist others especially during the post world war. For six decades the USAID has propel America’s soft power across the world especially in places like Africa.

Trump 2.o largely happed because during the campaigns the Republicans promised to cut all wasteful spending and that is being led by Elon Musk in the new government agency called Department of Government Efficiency (DOGE) that advised the slashing of USAID and it’s operations move under the State Department and in the process taking away US Soft power.

The term soft power was introduced by Joseph Nye in 1990 in his book “Bound to lead, the changing nature of American Power” and also further broadened in his  “The means to success in world politics” in (2004). He described soft power as a country’s ability in achieving its international goals through attraction and persuasion rather than through coercion. A country with substantial soft power influences others by projecting an attractive culture, political values, and foreign policies that are considered legitimate and morally appealing and this was the basic idea of President J.F Kennedy when establishing USAID.

According to Council on Foreign Relations (cfr) USA has been able to spread her wings through humanitarian assistance and disaster relief and it’s through such models that President G.Bush’s President’s Emergency Plan for AIDS Relief (PEPFAR) was operated. The Secretary of State Marko Rubio has said it was waived to go on but that has proved to be untrue because USAID systems were it’s back bone.

cfr also ascertains that USAID was a pillar to US’s development projects that are aimed at economic stability and capacity building to bring about America’s image as a promoter of progress and prosperity. USAID has also been a key vehicle in the promotion of democracy and human rights agenda by Washington for the last 6 decades. At the end of the day the agency has been at frontier of American diplomacy according to Jay Caspian Kang’s America’s Soft Power Retreat in the New Yorker published on February 7th 2025.

In Uganda USAID through PEPFAR has been providing antiretroviral therapy to 1.2 million people and credited for reduction in HIV prevalence since the early 2000s, under the same 28 million nets were distributed to fight malaria, the Feed the Future that benefits 2.8 million farmers is a product of USAID, in the 2021 elections 10,000 observers of the process were trained by USAID resources. USAID has also provided funds used for micro loans through its private partners since 2015 helping about half a million Ugandans.

It’s now clear that even after the 90 days set in motion by the President Trump’s EO pausing U.S. foreign development assistance, all the above will be no more. This creates a gap that needs to be field by the Private sector that was already contributing 40% of USAID annual budget according to the organization’s former chief Samantha Powers and known US diplomat.

The global South will be looking at Europe that has a war going on. The Gulf Nations that have soft power agendas that come into play but most importantly the Trump has created a vacuum organizations like the BRICS can seize and shape the new world order that is desired.

In a tweet Marko Rubio said he would not travel to South Africa for the G20, in the 2024 summit in Brazil the global South dominated the forum and it’s time for China and also other middle Powers like South Africa, Indonesia, Brazil, from each region to garner others to ogfer Solutions from the perspective of the global South.

In the last decade 2013-2023 China contributed 45% of direct aid to Africa, and Beijing’s model is the best to bring about self sufficiency because it’s not free like America’s. The global South needs aid that is tied to infrastructure projects in terms of consensual loans that have to be paid back the moment the projects are up and running. There is a likelihood China will offer affordable alternatives to Africa’s health sectors, and already the African Center for Disease Control (CDC) in Addis Ababa is fully funded by China and was not affected by Washington’s revisions of foreign aid.

The Global South can better develop with transactional aid tied to economic returns, these returns can then be used to fund areas like education and health, there is no harm in aid being tied to Geopolitical interests as China will need the political backing from the global South at the United Nations and other multilateral organizations that desire reform to create a just world that may not have the concept of foreign aid in the long run because most countries would have the ability to achieve real wealth.

The fast changing dynamics in global aid that are gravely impacting the most poor and underdeveloped countries create a situation that needs solutions and an opportunity for organizations like BRICS, African Union and the G20 with withdrawn United States to reshape the world order.

The writer is a research fellow at the Sino-Uganda Research Centre

President Trumps Aid Freeze is his gift to Africa: A lesson on Self-Reliance?

I have recently learned  that when a United States of America agency funding an organisation tells it to stop working, it means exactly that. If the funding goes towards electricity or travel expenses, you are expected to turn off the lights and ground all the vehicles. I have a close friend in Kampala working at a John Hopkins University funded project who has been at home for close to a week now because of an executive order President Donald Trump signed last week.

Last week, on January 24th the US Department of State put a stop to almost all foreign aid while the new government initiates a review of these projects. This means most of the staff who where working on these projects are (at least for the duration of the review) effectively unemployed. The complication with this is that the majority of US funded projects in Africa are in the sectors of Public Health. Halting so many of these projects means that there will be real impact to the ordinary Ugandans and the shockwaves of these decisions will be felt throughout the health sector of the country.

It is estimated that the PEPFAR project alone impacts the lives of over 24 million people in the global south. This is not to mention the thousands of projects directly under USAID funding. This is perhaps the most brutal wake up call African governments could receive from the newly elected American president. This wake up call puts African nationals at a very important precipice of their development where they have to choose whether to keep relying on handouts and “Charity” from the west or pick themselves up by the bootstraps and develop their own capacity.

Indeed this decision has already been made for them because while the Makerere Infectious Diseases Initiative (IDI) in Kampala is drafting “stay at home” letters for its employees, the Chinese funded and built African Union Center for Disease Control(CDC) in Addis Ababa is operating smoothly. While many have in the past few years criticized African governments for taking Chinese loans calling these loans “exploitative”, history has proven that this is a sound economical structure for development because both parties emerge as partners in development with a win-win situation instead of recipients of charity. Partnership in development preserves mutual respect and accountability while charity keeps us in a perpetual circle of foreign influence because benevolence can always be retracted.

Interestingly the United States Mission in Uganda has for the past year used the tagline “real help not loans”. This is probably a subtle diplomatic jibe at the Chinese foreign policy structure that funnels a significant part of their development aid to Africans through infrastructure loans. However most of the loans provided by the People’s Republic of China are consensual loans which for he most part pay for themselves. For example road tolls are still being collected at the Entebbe expressway to cover the Chinese loan acquired to build the road after which all the money collected shall go towards national development.

In hindsight the real help(charity) as envisioned by the United States Mission in Uganda turns out to be an unsustainable development model because for the past 60 years it’s proven to be a panacea of the symptoms of underdevelopment without addressing the actual causes. This may explain why this year the mission changed it’s social media tagline to “Real Results, Real Impact” which is also a little ironic because one of the first impacts of the new administration was freezing funding of vital public healthcare and social welfare initiatives in the country.

But let us be honest, the real impact of this executive decision is the disruption of the flourishing NGO sector within Africa. African governments can; if they really want to, cover the deficit caused by lack of American funding for these vital healthcare projects. China has been showing them how to do this for decades now. The frontline victims of this freeze are the NGO workers like my friend who won’t be able to meet rent at the end of the month, or who’s children won’t be able to report to school at the start of the academic year because of salary delays for these three months and a possibility that their contracts won’t be renewed. The real victims are the government officers who won’t be going to the fancy capacity building workshops at the end of the month to sign for lucrative allowances.

This is definitely disruptive, especially to the fragile Ugandan middle class but definitely not disastrous and this is perhaps the best opportunity for African governments to realise that we are now living in a multipolar world and we need to get African solutions for African problems. Uganda was earlier on suspended from the AGOA initiative and the economy did not crumble. Key government figures have been sanctioned by the United States for decades but this has never truly affected government efficiency. President Trump has on a not so subtle way given African governments an opportunity to introspect on their national development and bilateral alliances and if we can use this period productively, Africa may emerge even stronger and more resilient from this aid freeze and the inevitable aid cuts even after the  review period.

Shemei Ndawula is a Senior Research Fellow at Development Watch Centre.