VANGUARD - Expressing the viewpoint of the Communist Party of Australia (Marxist-Leninist)
For National Independence and Socialism • www.cpaml.org
The decision by the Trump administration to temporarily suspend its foreign aid program has proved controversial. It has done little to convey an enlightened, planned, balanced and well-implemented foreign policy and diplomatic position. In fact, when viewed in the context of present Cold War diplomatic rivalry with China, the decision, might, justifiably, be viewed as a spectacular own goal, with serious implications for all US allies, including Australia in the Pacific region.
In early February, within days of taking office, the Trump administration announced they were temporarily suspending more than US$60 billion of international funding through the US Agency for International Development (USAID). (1) While the reason for the suspension was along lines that the agency was being run by 'radical lunatics', the underlying reason was cost-cutting and projecting an America First diplomatic position.
The position of the Trump administration is best viewed in the context of Cold War; they seek a return to the halcyon days when the power of the US was barely challenged. Studies of the period referred to the US as 'the world policeman on the road to world leadership'. (2)
The language used by the Trump administration when suspending foreign aid was largely reminiscent of terminology frequently used from Washington sixty years ago; the prevailing balance of forces, however, has now changed. They appear oblivious.
There was, furthermore, little ambiguity in the right-wing business position adopted by the Trump administration: staff were placed on administrative leave and access was blocked to the Washington headquarters; employees were locked out of computer systems. Many of the on-line websites about USAID programs were also systematically blocked to prevent access to statistics and other information. It carried all the hallmarks of little understanding of the gravity of the situation and a swashbuckling attitude toward those regarded as subject to dictat. An official statement from the Trump administration also noted the whole USAID organisation was 'beyond repair'. (3) What will happen after the 90-day suspension remains to be seen. Many programs are likely to be terminated indefinitely and permanently.
Historically, aid programs have been used by governments to foster closer diplomatic links between host countries and those regarded as countries of interest. It is regarded as 'soft diplomacy'. While criticisms have arisen about neo-colonialism and stronger countries using aid programs to enhance their position over those categorised as emerging economies, large numbers of poor people depend upon aid programs for their everyday needs. Different governments have used various approaches to achieve diplomatic objectives: the US has tended to channel aid through official bodies, while Israel usually uses local Police as a conduit, China tends to use central government organisation while Taiwan uses a more localised provincial network to distribute their aid. Britain retains a huge aid program, most of which is channelled through the Commonwealth, other countries use different approaches.
Australia has a large foreign aid program across the South Pacific, Pacific and Asia regions, working closely with US counterparts as a regional hub for 'US interests'. During the past decade, for example, USAID has provided the Pacific region with an estimated $3 billion in aid. (4) Australia's counterpart, AUSAID, has been responsible for using $392.9 million during the 2022-23 financial year to twelve Pacific countries; PNG is a large recipient.
The aid programs are invariably aimed toward sustainable economic, social and political development, and can take many forms: many of the programs, for example, have lasted a long time, providing stability in often volatile areas. A major program in the South Pacific has been governance, and the training of local government officials in administration procedures, to deal with countries which are divided along ethnic and inter-ethnic lines. It has been noted that, 'predictability in aid is key to the effectiveness of programs … including … critical public services, medicines, food, humanitarian assistance', and a whole list of other services. (5) Staff employed with aid programs frequently have to deal with local decision-makers, which can sometimes be difficult.
The situation is the Solomon Islands remains problematic where ethnic and inter-ethnic divisions have spilled over into open warfare twice in recent times. Australia has, invariably, been left to foot the bill for peacekeeping and political stability. The Solomon Islands has remained dependent upon aid to provide many basic services as one of the poorest countries in the region. To promote economic development USAID has provided the country with $1 million to promote ten agricultural programs, several of which are regarded as key projects to support 'critical development needs in the Solomon Islands'. (6)
And this diplomatic position has been suspended by the Trump administration for a minimum of ninety days. Many of the recipients of US aid programs, however, are unlikely to possess sufficient economic reserves to fund their own programs for three months. Large numbers of local people linked to the aid programs have already lost their employment.
Reaction to the decision was immediate: it was noted from one well-informed observer that 'it's a huge gift to China … and the legitimacy question is a big one … now you have the biggest component … destroying it and moving away from its commitments and principles'. (7) In the case of the Solomon Islands, and elsewhere in the Pacific, most USAID has been used specifically to challenge perceived Chinese diplomatic initiatives; the position of the Trump administration, therefore, can best be assessed as ill-thought of and very likely to become totally counter-productive, leaving Australia to foot the bill, once again:
We need an independent foreign policy!
1. Gift for Beijing: Asia-Pacific analysts warn shock US aid freeze 'an own goal' Australian, 4 February 2025.
2. See: The Road to World Leadership, The Police Idea in US Foreign Policy, CIA.,Chapter 5, Intervention and Revolution, Richard J. Barnett, (London, 1970), pp. 77-93.
3. Musk tightens his grip on wheels of power, Australian, 5 February 2025.
4. Donald Trump's foreign aid freeze, ABC News, 1 February 2025.
5. Australian, op.cit., 4 February 2025.
6. See: US suspends foreign aid, PINA, 29 January 2025.
7. Australian, op.cit., 4 February 2025.