ANALYSIS: Trump’s US foreign aid halt will have ‘major but temporary impact’ on PH
- How crucial is US aid for us? You decide. In 2023 alone, we received $198.2 million in aid, distributed across various sectors. The environment sector got the biggest portion at around $33 million, followed by basic health at $25.5 million and governance and civil society at $25.98 million.
The moment that I learned about US President Donald Trump’s decision to freeze all worldwide aid, I was prompted to delve into my collection of thought-provoking books, specifically Lords of Poverty: The Power, Prestige, and Corruption of the International by Graham Hancock and “Confessions of an Economic Hitman” by John Perkins. Their perspectives are critical of the existing notions of economic aid which argues that aid can indeed serve to entrench dependency on external aid and debt rather than progress. Several of my contemporaries hold the same views as these authors and as a result, reacted to Trump’s directive with apathy or even approval.
Hancock argues that aid largely benefits the donor’s interests rather than the recipient’s. The concept that “there is no such thing as a free lunch” underscores the intricacies inherent in aid relationships, a sentiment also expressed by Perkins.
Approaching the topic from the lens of a development worker with a focus on conservation and environmental protection, I found Hancock’s cautionary tales of disguised ulterior motives particularly intriguing. As a scientist, I am predisposed to scrutinize claims through the lens of evidence and reproducibility. Yet, I acknowledge the power of individual narratives in shaping perspectives.
US impact on environmental initiatives
Reflecting on the Philippines’ longstanding ties with the United States Agency for International Development (USAID), I recall my own encounters with US assistance during my early career. While acknowledging the potential pitfalls of dependency on aid, I have witnessed firsthand the transformative impact of US support on environmental initiatives in the country.
Projects funded by USAID have catalyzed environmental movements, empowered local champions and fostered sustainable practices. Training programs have equipped individuals to drive positive changes within their communities by improving environmental governance. Various USAID-funded initiatives have catalyzed policy reforms aimed at revitalizing fish stocks all over the country at the same time conserving biodiversity.
Our collective environmental consciousness has been awakened, thanks largely to USAID. And that is more than one could expect as a positive outcome for projects whose lofty goals often do not match the funding size. The idea of the “tyranny of small decisions” was first proposed by economist Alfred E. Kahn in his 1966 article titled “The Tyranny of Small Decisions: Market Failures, Imperfections, and the Limits of Economics.” Kahn discussed how seemingly insignificant decisions made by individuals or organizations can collectively lead to suboptimal outcomes, particularly in the context of market failures and imperfect competition.
Applying this principle to aid, there may be limitations or challenges in achieving positive outcomes from small projects due to their limited scale. This perspective highlights the importance of considering the scope and scale of interventions when trying to address complex issues.
It also suggests that more comprehensive or ambitious approaches may be necessary to bring about substantial change. The challenge lies in maximizing the efficacy of aid regardless of size by engaging individuals who possess a genuine commitment to affecting change within their communities. Hancock’s observations on the need for localization in aid implementation sound true, emphasizing the importance of empowering local stakeholders to drive sustainable outcomes.
Greater efficiency, grassroots involvement
While aid may attract individuals solely motivated by financial gain, there are signs of progress towards greater efficiency and grassroots involvement within the sector. By prioritizing local expertise and ownership in aid projects, we can amplify the impact of assistance and truly empower communities to thrive.
As we navigate the complexities of aid effectiveness, it is imperative to remain vigilant, and critical, yet open-minded to the potential for positive change that strategic aid interventions can bring when approached mindfully and collaboratively.
How crucial is US aid for us? You decide. In 2023 alone, we received $198.2 million in aid, distributed across various sectors. The environment sector got the biggest portion at around $33 million, followed by basic health at $25.5 million and governance and civil society at $25.98 million. For a comprehensive breakdown and information on other sectors receiving financial support, check out the report here.
In my view, the freezing of assistance will have a major impact on the Philippines. However, I believe that USAID Philippines will continue to pursue our collaboration, especially on defense and environment, despite facing some temporary challenges.
Dr. Michael P. Atrigenio is an Assistant Professor at the Marine Science Institute of the University of the Philippines Diliman and the program head of the Professional Masters in Tropical Marine Ecosystems Management Program. He is also the President of the Marine Environment and Resources Foundation.
