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1. Trump’s assault on foreign aid: implications for international development cooperation

Author:
Sebastian Haug, Anna Novoselova, and Stephan Klingebiel
Publication Date:
01-2025
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The United States of America has long been a leading force in international development cooperation, both politically and financially. However, the first weeks of the second Trump administration have called the traditional role of US foreign aid fundamentally into question. From a 90-day funding freeze to the withdrawal from United Nations (UN) bodies and the dismantling of the US Agency for International Development (USAID), measures taken by Trump and his team are not only having palpable repercussions on a wide range of humanitarian and development programmes, but they also point to more far-reaching implications. Against this backdrop, this paper presents the contours and discusses the global consequences of Trump’s assault on US foreign aid, as of late February 2025. We outline the extant role of the United States as a donor in Section 2 and review the changes announced – and/or implemented – by the current US government in Section 3. Section 4 discusses the implications of US funding cuts for bilateral cooperation, while Section 5 focuses on repercussions on multilateral development work. Section 6 outlines three scenarios on how the ongoing changes in the United States might affect the field of international development. We discuss the possible ramifications of (a) a revamped US approach to foreign aid centring on crude national interests, (b) a US retreat that is at least partially offset by other providers and (c) a US retreat without other providers stepping in. Section 7 concludes by discussing the implications for dealing with the second Trump administration. We outline four recommendations that address stakeholders across the – increasingly outdated – donor–recipient divide: (1) refining development cooperation approaches, (2) strengthening the multilateral development system, (3) promoting Southern self-reliance and (4) fostering alliances beyond a Trump-led US government.
Topic:
International Cooperation, Foreign Aid, International Development, Donald Trump, and USAID
Political Geography:
North America and United States of America

2. For North American Energy Security, Go Local: Examining the Role of Natural Gas and Mexico’s Energy Sector

Author:
Ryan C. Berg, Emiliano Polo, and Henry Ziemer
Publication Date:
08-2023
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Natural gas is the predominant fuel source in Mexico. However, years of reliance on the United States for cheap, plentiful gas imports has prevented Mexico from capturing the potential of its domestic gas industry. This exposes Mexico to risks in the form of geopolitical distortions and unexpected disruptions in U.S. supply. It also exacerbates inequalities between northern and southern states as high energy prices in the latter serve as deterrent for businesses and investors. This brief breaks down the intersection of energy security, natural gas, nearshoring, and migration, and outlines areas for Mexico to cooperate with the United States on bolstering its domestic energy sector.
Topic:
Business, International Development, Trade, Sustainability, Energy Security, and Natural Gas
Political Geography:
North America and Mexico

3. The Case for Inclusive Agricultural Development

Author:
Benjamin Allen, Jacqueline Ashby, John Coonrod, and Wawira Njiru
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Chicago Council on Global Affairs
Abstract:
Amid shifts towards inclusive agricultural development, the Center for Global Food and Agriculture offers policy recommendations for further US government action. Reflecting both the development consensus and the challenges of transformational reform, USAID Administrator Samantha Power announced an ambitious new focus on inclusive development for the agency in 2021. Her announcement followed the publication of a draft policy on local capacity development, which provides a framework for shifting overall organizational approaches to development. The policy helps establish an agencywide understanding of what locally led development means and a unified system for building on local strengths to achieve local goals. Nevertheless, there are substantial and legitimate reasons why inclusive development assistance remains elusive. Recent research from the Brookings Institution provides an excellent summary of the legal and regulatory impediments, including budgetary rigidity, risk mitigation, and the limits of local organizational capacity.
Topic:
Foreign Policy, Agriculture, Food, and International Development
Political Geography:
Africa, North America, and United States of America

4. Why Canada Must Embrace a Free and Open Indo-Pacific

Author:
Jonathan Berkshire Miller and Stephen Nagy
Publication Date:
10-2020
Content Type:
Policy Brief
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
How has Canada viewed the scope of its engagement in Asia? The traditional lens to look at such engagement has been through the Asia-Pacific framing – defining the region largely through our experience in the multilateral architecture such as the Asia Pacific Economic Cooperation (APEC) on the trade side, and the Association of Southeast Asian Nations (ASEAN) Regional Forum (ARF) on the political-security side. Canada was a founding member of APEC in 1990 and has been a dialogue partner in the ARF since its formation in 1994. Aside from these two main vehicles, Canada has been active in the international development space over the years through and is member of the Asian Development Bank, and more recently joined – while not before considerable internal debate – the Chinese-led Asian Infrastructure Investment Bank in 2017.
Topic:
Bilateral Relations, International Development, Multilateralism, Investment, Trade, and ASEAN
Political Geography:
Japan, China, Canada, Asia, North America, Korea, and Indo-Pacific

5. The impact and effectiveness of US public investment in international agricultural development: Is it time for a paradigm shift?

Author:
Vincent H. Smith
Publication Date:
10-2019
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
The smallholder paradigm for economic growth underlies the US Agency for International Development’s (USAID) agricultural assistance, but it is flawed as an engine of growth. Smallholder farmers lack scale and are reluctant entrepreneurs. Midsize farms are emerging as the effective engine of commercial agricultural growth and rural transformation. Rural education policies are needed to ensure a successful economic transition out of agriculture and into other industries and occupations requiring more human capital and skills. The delivery of USAID programs exhibits massive leakage. US for-profit development firms, US universities, and urban interests in recipient countries mostly capture the resources.
Topic:
Agriculture, Economics, International Development, and USAID
Political Geography:
North America and United States of America

6. Employment Structure and the Rise of the Modern Tax System

Author:
Anders Jensen
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
This paper shows how the increase in information trails through the long-run transition from self-employment to employee-jobs explains the rise of the modern income tax system. I construct a new database which covers 100 household surveys across countries at different income levels and 140 years of historical data within the US (1870-2010). Using these data, I first establish four new stylized facts: 1) within country, the share of employees increases over the income distribution, and increases at all levels of income as a country develops; 2) the income tax exemption threshold moves down the income distribution as a country develops, tracking employee growth; 3) the employee share above the exemption threshold is maximized and remains constantly high; 4) decreases in the exemption threshold are strongly associated with increases in tax collection. These findings are consistent with a model where a high employee share is a necessary condition for effective taxation and where the rise in income covered by information trails through increases in employee share drives expansion of the income tax base. To provide a causal estimate of employee share on income tax systems, I study a state-led US development program implemented in the 1950s-60s which increased the level of employee share. The identification strategy exploits within-state changes in court-litigation status which generate quasi-experimental variation in the effective implementation date of the program. I find that the exogenous increase in employee share is associated with an expansion of the state income tax base and an increase in state income tax revenue.
Topic:
Political Economy, Finance, Economy, International Development, and Tax Systems
Political Geography:
North America and United States of America

7. Why Does Hirschmanian Development Remain Mired on the Margins? Because Implementation (and Reform) Really is 'a Long Voyage of Discovery'

Author:
Michael Woolcock
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
A defining task of development is enhancing a state’s capability for policy implementation. In most low- income countries, alas, such capabilities seem to be stagnant or declining, in no small part because dominant reform strategies are ill-suited to addressing complex non-technical aspects. This has been recognized for at least six decades – indeed, it was a centerpiece of Albert Hirschman’s understanding of the development process – yet this critique, and the significance of its implications, remain on the margins of scholarship and policy. Why? I consider three options, concluding that, paradoxically, followers of Hirschman’s approach inadequately appreciated that gaining more operational traction for their approach was itself a type of problem requiring their ideas to embark on ‘a long voyage of discovery’, a task best accomplished, in this instance, by building – and tapping into the distinctive insights of – a diverse community of development practitioners.
Topic:
Development, Political Economy, Developing World, and International Development
Political Geography:
North America and United States of America

8. Are international women’s issues being devalued in US foreign policy?

Author:
Fenohasina Rakotondrazaka Maret and Sarra Souid
Publication Date:
05-2017
Content Type:
Commentary and Analysis
Institution:
Urban Institute
Abstract:
Last month, a leaked US State Department budget document raised concerns around whether the Trump administration plans to eliminate funding for the State Department’s Office of Global Women’s Issues. These concerns were allayed by the budget released this week that maintains the office and gives it more funding. This reprieve from the general cuts in the foreign assistance budget is welcome, but the fact that the office still lacks an appointed leader from the new administration raises questions about what—if any—strategy the United States will implement in this important area.
Topic:
Foreign Policy, Government, Women, and International Development
Political Geography:
North America and United States of America