USAID, long one of the foremost tools of US soft power, ended its six decades as an independent agency
on July 1, with no details on how it had been reviewed disclosed. Meanwhile, the China-initiated International Organisation for Mediation (IOMed),
made a high-profile debut in Hong Kong in May.
Foreign Minister Wang Yi attended the inauguration and stressed looking for ways to resolve issues “so as to lend our thoughts to countries seeking to resolve problems or disagreements with others”. This sentiment stands in opposition to the White House’s statement that the US foreign aid industry is misaligned with American interests.
The juxtaposition reaffirms the notion that China is filling the gap left by the US. As Beijing takes a more proactive role in international development, amid expectations
from the Global South, Hong Kong – China’s most cosmopolitan city – has a new path to prominence as a hub for public goods.
The US development sector has been steadily dismantled in
the past six months, with key institutions decimated and professionals displaced. The sector’s foundational beliefs have been assaulted by a trifecta of fallacies.
First, the “America first” mentality neglects soft-power cultivation while pitting overseas and domestic investments against each other. To US President Donald Trump, foreign aid is merely another drain on the federal budget advancing wasteful agendas. Rather than fostering a long-term strategic approach through providing assistance, he prioritises extracting gain from allies and developing nations. If the American influence apparatus is not doomed, it is at least navigating a more myopic track with narrowed horizons.
Second, the administration’s
attacks on development agencies lack the requisite rigour as their reconstruction remains captive to obsolete doctrines. This highlights the US aid system’s stagnation compared to its competitors. US Secretary of State Marco Rubio touts the diplomatic utility of US aid while invoking the notion of teaching people how to fish. As efficiency becomes a higher priority in the development community, such detachment yields the predictable outcome of aid circling back to power plays
.
