Australia urged to step up to help fill US aid void
Even a year after the United States was hit by a disaster in development aid, pressure remains for Australia to increase foreign aid.
Tuesday marks the anniversary of President Donald Trump’s return to the White House and the unwinding of foreign aid around the world.
On the first day of his second term, Mr. Trump signed a cease-and-desist order at USAID, the world’s largest foreign aid agency, and froze its multibillion-dollar budget.
With much uncertainty, an Elon Musk review, and many legal challenges later, USAID was disbanded and tens of billions of dollars were withdrawn from the system, worsening the lives of many of the most needy populations around the world.
An analysis published in the medical journal Lancet predicted that the cuts would lead to the deaths of hundreds of thousands of children under five in 2025; This was the first year in this century that child deaths increased.
Other studies show four to six million deaths this decade.
Matthew Maury, chief executive of the Australian Council for International Development, said the changes had led to a “sharp deterioration in humanitarian and development outcomes globally”.
The staggering effects in developing countries go beyond grim death statistics.
Reproductive rights have taken a hit as support for contraceptives has been withdrawn, while health outcomes have worsened as programs to provide clean water or treat tuberculosis and other diseases have been cancelled.
The documentary, Rovina’s Choice, highlights the impact of USAID cuts on a South Sudanese mother trying to keep a sick child alive.
Pacific countries are some of the least affected, reflecting U.S. investment before the cuts.
But the region has suffered the ripple effects of major international organizations weakened by mass layoffs and having to reorganize to address funding shortfalls elsewhere.
The US move also led to the gutting of other nations’ foreign aid budgets, as embattled governments sought funds to increase defense spending at America’s behest.
“Probably the most worrying thing for our sector was that we saw the UK making aid cuts despite being a pro-aid centre-left government,” Mr Maury told AAP.
It’s unclear how much aid is being withdrawn from the system as the U.S. rolls out new funding streams, particularly the “America First Global Health Strategy.”
These are bilateral agreements between the United States and poor countries, and they are clearly political; Recipient countries are required to justify how the expenditures will benefit America and American citizens.
“Let’s be clear, governments have always shaped their foreign policies and used their aid budgets in the national interest,” Mr. Maury said.
“But ‘How does this make the lives of American citizens better?’ “There has never been such a cold and calculated formula as this one.”
Notably, Australia didn’t raid the foreign aid kitty last year.
Foreign Affairs Minister Penny Wong marginally increased Australia’s development aid spending in last year’s budget, but not enough to keep pace with inflation.
With aid spending of 0.19 percent as a share of gross national income, Australia ranks 28th among 32 developed countries, behind the Czech Republic, Greece, Slovakia and Hungary.
This is down significantly from a decade ago, when Australia spent 0.31 per cent of its gross national income and ranked 13th among OECD countries.
Mr Maury said Australia should join the ranks of Scandinavian countries meeting the UN target of providing at least 0.7 per cent aid.
“We are in a position where we can do more and it is important that Australia is seen as a reliable partner that will continue to stand with the region,” he said.
“All 10 of Australia’s 15 largest trading partners were initial aid recipients. When you invest in the prosperity of the region, all boats rise.”
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