Turning the USAID Crisis Into An Opportunity

07 May 2025

The dismantling of the United States Agency for International Development (USAID) under Donald Trump's "America First" agenda has sparked intense debate. While USAID has undeniably played a vital role in providing foreign aid to many nations, its cessation may well be a blessing in disguise for countries that have long relied on this support. Necessity, as the saying goes, is the mother of invention, and this moment presents an opportunity for nations to confront their challenges head-on and chart a path toward self-sufficiency.

For decades, foreign aid has been a double-edged sword. On one hand, it has provided critical relief in times of crisis, funding health programs and infrastructure projects. On the other hand, aid often comes with strings attached and with terms and conditions that limit genuine progress and perpetuate dependency. As former Kenyan President Uhuru Kenyatta aptly warned, foreign aid is not an acceptable basis for prosperity and freedom. It is time for nations to give it up and embrace self-reliance.

Trump's decision to cut USAID funding has disrupted the status quo, forcing countries to rethink their priorities. Dependency on aid has become deeply entrenched over the years, leading to a decline in trade and the atrophy of national ambitions to build industries and strengthen economies. Many aid-dependent nations have fallen into a vicious cycle, relying on external support while neglecting the development of their own fiscal capacity and accountability to their citizens. This reliance has weakened governance and fostered a "victim mentality" that stifles innovation and progress.

Now, with the aid severed, nations must refocus their efforts on achieving self-sufficiency. The immediate priorities should be ensuring food security, improving healthcare systems, and providing shelter for their populations. Countries must also support one another in this endeavor, building regional partnerships and fostering collaboration to compensate for the absence of a global aid leader.

Trade, not aid, is the key to sustainable development. Many aid-dependent nations have struggled to achieve economies of scale, resulting in low levels of trade and limited industrial growth. By investing in industries and infrastructure, countries can expand their aggregate output and increase trade, creating a foundation for long-term economic stability. 

As I have often emphasized, crises are opportunities in disguise. The end of USAID is a wake-up call for nations to unleash the entrepreneurial spirit of their people and take control of their destinies. By pooling resources, developing productive infrastructure, and prioritizing self-reliance, countries can turn this challenge into a transformative moment for their societies.

The road ahead will not be easy, but the potential rewards are immense. Necessity is indeed the mother of invention, and I sincerely hope that this moment of disruption is the catalyst for a new era of progress and prosperity, as the nations of the world have much to offer and must forge ahead without American handouts.

Talal Abu-Ghazaleh