MA Hossain :
THE decision by US President Donald Trump to suspend foreign aid for 90 days, announced on the very night of his second term inauguration, has raised concerns across the globe. For countries like Bangladesh, where US assistance is crucial in development efforts, this move warrants careful examination. Stakeholders, development partners, and analysts are now assessing the potential implications, not just for Bangladesh, but for global stability and progress.
Since Bangladesh’s independence, the United States has been a critical development partner, contributing to sectors like food security, health, governance, education, and environmental sustainability. According to USAID, Bangladesh hosts one of Asia’s largest US development programmes, highlighting its strategic importance in South Asia. This partnership has not just been about funding but about fostering progress that benefits millions of lives.
In recent years, US aid has played a transformative role in addressing the Rohingya crisis, which has burdened Bangladesh with the care of nearly one million refugees. With over $2.5 billion in humanitarian assistance since 2017, the US has been the largest donor to this cause. This aid has not only supported Rohingya refugees but also benefitted host communities in Cox’s Bazar, a region facing immense socio-economic strain. Without sustained US support, the question looms: how will this crisis — already a monumental task — be managed?
Beyond humanitarian assistance, US aid fuels critical development projects. In 2023 alone, Bangladesh received $490 million from the US, supporting initiatives across various sectors. This aid is indispensable for a country aiming to transition to upper-middle-income status by 2031. The suspension of such aid raises immediate concerns about the fate of ongoing projects and the future of critical programmes. For instance, how will the Rohingya crisis be managed without sustained US support? Who will fill the vacuum if US funding is curtailed?
The executive order directing the suspension of US foreign aid marks a seismic shift in American foreign policy. According to the White House, this reassessment aims to ensure that US foreign aid aligns with national interests, prioritising safety, strength, and prosperity for Americans. Secretary of state Marco Rubio encapsulated this approach by asking, ‘Does it make the US safer? Does it make the US stronger? Does it make the US more prosperous?’ The implication is clear: aid programmes that fail to directly benefit the US could face cuts or termination.
This marks a departure from the traditional view of foreign aid as a tool for global stability, poverty alleviation, and diplomatic goodwill. Instead, it places US interests above multilateral or humanitarian considerations, signalling a retreat from global leadership. While some Americans might see this as a pragmatic move, its long-term ramifications — both for global stability and US strategic interests — are troubling.
The US decision to withdraw from the World Health Organisation adds another layer of uncertainty. The WHO has been a vital partner in combating health challenges in Bangladesh, including the Covid-19 pandemic. Reduced funding for the organisation could weaken its capacity to support developing countries, leaving Bangladesh vulnerable to public health crises. Moreover, the broader implications are equally troubling. US aid has been instrumental in fostering democracy, promoting gender equality, and enhancing climate resilience in Bangladesh. Any disruption to these programmes could derail progress and undermine the country’s development trajectory.
This is not just a Bangladesh issue; it’s a global one. For decades, the United States has been the largest provider of foreign aid, using its resources to address global challenges, from poverty to pandemics. This leadership role has helped maintain a semblance of balance in an increasingly fragmented world. However, the shift in US policy threatens to upend this dynamic. Countries in Africa, Asia, and Latin America that rely heavily on US assistance could face severe setbacks. The potential weakening of multilateral institutions like the WHO could exacerbate global inequalities, leaving vulnerable populations without access to essential services.
Moreover, the US decision could embolden other nations to adopt a similarly insular approach, undermining international cooperation. In an era where global challenges — climate change, pandemics, and migration — require collective action, the withdrawal of US leadership could have dire consequences.
President Trump’s executive order is rooted in the argument that US aid programmes must align with American interests. While this is a legitimate consideration, it’s worth questioning whether such a narrow definition of ‘interest’ serves the US or the world in the long run. Foreign aid is not merely an act of altruism; it’s a strategic investment. By addressing poverty, instability, and crises abroad, the US reduces the risk of conflicts, migration, and security threats that could spill over into its borders. In regions like South Asia, where geopolitical tensions run high, US aid plays a stabilising role, fostering goodwill and strengthening alliances.
For Bangladesh, the US has been more than just a donor — it has been a partner in progress. This partnership is built on shared interests, from economic growth to regional stability. It would be short-sighted to undermine these gains in the name of immediate national benefits. Bangladesh, too, must take this opportunity to reflect. It should engage in diplomatic efforts to emphasise the mutual benefits of continued US aid. Highlighting Bangladesh’s strategic importance as a partner in South Asia could help secure support for critical programs. While the US aid suspension poses significant challenges, it also serves as a wake-up call to diversify its sources of aid and investment. Reliance on a single donor is risky, and strengthening ties with other nations and multilateral organisations could provide a buffer against potential aid cuts. Moreover, Bangladesh must accelerate efforts to achieve self-reliance. By fostering economic growth, improving governance, and investing in human capital, the country can reduce its dependence on foreign aid and chart its own course towards prosperity.
At the same time, the US must recognise that its global leadership role comes with responsibilities. By prioritising short-term gains over long-term stability, it risks losing the trust and goodwill of its partners. In an interconnected world, true strength lies not in isolation, but in collaboration. The withdrawal of US aid, if mishandled, could lead to a domino effect of reduced international cooperation, jeopardising progress made over decades.
In the face of uncertainty, Bangladesh must adopt a proactive approach. Diplomatic efforts should be redoubled to emphasise the mutual benefits of continued U.S. aid. Highlighting Bangladesh’s strategic importance as a partner in South Asia could help secure support for critical programmes. Additionally, policymakers must prioritise resilience and innovation to navigate these uncertain times.
The suspension of US aid forces us to question whether nations can truly afford to prioritise insular interests at the expense of global stability. For Bangladesh, the path ahead is fraught with challenges. But with resilience, strategic diplomacy, and a commitment to self-reliance, it can navigate this uncertain terrain and continue its journey towards a brighter future.
MA Hossain is a political and defence analyst based in Bangladesh.
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