Tuesday, February 11, 2025

CHICKEN COMING HOME TO ROOST WITH USAID SUSPENSION

US President Donald Trump’s administration has thrown the aid industry into a panic with suspension a week ago of his country’s charity arm, USAID.

It has been reported since, that billions of dollars have been put on ice, thousands around the world will be out of a job and millions of beneficiaries are looking forward to a very uncertain future.

Created in 1961 by the John F. Kennedy administration, USAID has been involved in supporting, among other things global health, food security, democracy and governance initiatives.

The Trump administration accuse them of being fat and lazy and even worse, of being corrupt and money launderers. Allegations have been rehashed of how only a fraction of the aid actually reaches the intended beneficiaries, with the bulk of it going to administration, procurements and high living.

For these and many more accusations, the aid industry has come under heavy criticism for decades. These accusations are not new or unique to USAID.

The industry’s record has been spotty at best and dismal at worst.

"For instance since the 1960s Africa has been a recipient of more aid than the Marshall plan, that reconstructed war torn Europe after the second world war, but remains riven with poverty, disease and war...

Aid campaigners would blame that on poor governance on the continent. On the flip side others would argue that bad governance on the continent is a direct result of over reliance on aid. A situation that did not arise by mistake.

The history of development shows that countries advance by mobilizing their own resources – land, labour and capital, to improve the living standards of their people. This has forced governments to move from autocratic monarchies to more inclusive democracies, as the political elite had to negotiate with the people to pay taxes to finance development.

The monarchs of Europe thought they would have their cake and eat it, taxing their subjects to finance their lifestyle and questionable wars, without being accountable to the people. They did this for a time –for centuries, before the people rose up and said enough is enough. Many monarchs paid with their heads for resisting the new power sharing arrangements with their subjects.

The lesser developed countries of Africa were promised they could short circuit this development process by first colonizing us and then in post-colonial Africa, by providing us with aid.

In hindsight aid has not been about transforming society or development, but about influence peddling. Aid has been the carrot that kept us in line. And as long as we kept in line, it mattered little what our leaders did with the money, hence the eruption of corruption in post-independence Africa and the lack of economic transformation.

Aid has given African governments a free pass not to develop relationships with their people (democracy), by abrogating funding responsibility to the aid industry. That is why for instance we are tearing our hair out because USAID was a central player in the health industry and their departure is an existential threat for many.

It is easier to fly to Washington (per diems all around) and negotiate for more money than it is to negotiate with your population to pay more tax.

The truth is we have been lulled into a false sense of security with all this aid sloshing around.

Shortly after the NRM came to power there was a school feeding program instituted because, coming out of war, harvests were not the best. By 1990 it was determined we did not need that food aid any more. I remember the end to that food aid – mainly chicken curry and tinned fish, almost caused strikes because the school kids had developed a taste for the tinned food and could not imagine living without it.

Today its inconceivable Uganda would need food aid, but one can see how dependency could have been easily created.

The suspension and possible closure of USAID should be cause for soul searching.

"We need to ask ourselves how a foreign entity can be so central to the health of our people? An entity, which on the face of it, may have altruistic motives but is susceptible to the political vagaries of a country for who our welfare is not top of their agenda?

The record will show that aid is insidious in its creation of dependency. Because we have aid we cannot marshall home grown remedies to our lack of revenues to finance our development. Why think hard when someone is falling over themselves to throw money at you.

I am not hopeful, but this event should make us take a long overdue look at how we can mobilise our own resources and how we prioritise the expenditure of those resources.

But as I said I am not very hopeful, especially since USAID or a variation of it, will return within the year.

 

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