The Trump administration’s decision to eliminate more than 90 percent of the US Agency for International Development (USAID) funding means “nothing’s safe right now,” a regional political analyst says.

President Donald Trump’s government has said it is slashing about US$60 billion in overall US development and humanitarian assistance around the world to further its America First policy.

Last September, the former Deputy Secretary of State Kurt Campbell said that Washington had “listened carefully” to Pacific Island nations and was making efforts to boost its diplomatic footprint in the region.

Campbell had announced that the US contributed US$25 million to the Pacific-owned and led Pacific Resilience Facility — a fund endorsed by leaders to make it easier for Forum members to access climate financing for adaptation, disaster preparedness and early disaster response projects.

However, Trump’s move has been said to have implications for the Pacific, which is one of the most aid-dependent regions in the world.

Research fellow at the Australian National University’s Development Policy Centre Dr Terence Wood told RNZ Pacific Waves that, in the Pacific, the biggest impacts of the aid cut are likley to be felt by the three island nations in a Compact of Free Association (COFA) with the US.

He said that while the compact “is safe” for three COFA states – Federated States of Micronesia, Marshall Islands, and Palau – “these are unprecedented times”.

“It would be unprecedented if the US just tore them up. But then again, the United States is showing very little regard for agreements that it has entered into in the past, so I would say that nothing’s safe right now.”

This article is republished under a community partnership agreement with RNZ.

Dr Terence Wood speaking to RNZ Pacific Waves.   Video: RNZ Pacific

Article by AsiaPacificReport.nz

Marshall Islands Journal editor Giff Johnson says US President Donald Trump’s decision on aid “is an opening for anybody else who wants to fill the gap” in the Pacific.

Trump froze all USAID for 90 days on his first day in office and is now looking to significantly reduce the size of the multi-billion dollar agency.

The Pacific is the world’s most aid dependent region, and Terence Wood from the Australian National University Development Policy Centre told RNZ Pacific this move would hit hard.

“The US is the Pacific’s largest aid donor and what is happening there is completely unprecedented . . .  there’s also a cruel irony that Elon Musk is the world’s wealthiest man and right now he seems to be calling the shots with decisions that are literally going to be life or death for the world’s poorest people . . .  it’s hard to wrap one’s head around,” he said.

Marshall Islands Journal owner and editor Giff Johnson on the USAID crisis. Video: RNZ Pacific

Wood was concerned about how the dismantling of USAID would impact the Pacific.

“It’s not a good time to be in the world’s most aid dependent region . . .  indeed Sāmoa PM Fiame Naomi Mata’afa has already expressed concern about what might happen to funding for organisations like the World Health Organisation . . .  so everyone is watching this with considerable alarm”.

‘It’s hard to believe that Trump has changed his sense’
Editor Johnson said said in an interview with RNZ Pacific last week that Trump’s shutdown of USAID was at odds with the increased engagement in the Pacific.

He said the move did not line up with the President’s rhetoric on China, and the fact the new US compact agreements were instigated by his administration the last time he was in power.

“So it’s hard to believe that Trump has changed his sense and I mean, he’s putting tariffs in on China, right? . . .  So that’s still very much in play,” Johnson said.

“It’s just like amazing to me that that they’re willing to undermine relationships in the Pacific that they claim to be a very important region for them.

“And you know, this is, I mean, certainly it’s an opening for anybody else who wants to fill the gap, I suppose, until Washington decides what it is doing.”

USAID shutdown bug thing for Pacific
Meanwhile, in the Cook Islands, the vice-chairperson of the Pacific energy regulators Alliance said Trump’s shutdown of USAID was a big deal for the region.

Dean Yarrall said his organisation was planning a multi-day training course on best practices in electricity regulation, funded by the US, which had now been called off.

He said the cancelling of the training course caught his organisation off guard.

“We’re seeing a lot of competition between parties, the Chinese are looking to increase the influence Australia as well and the US through USAID are big supporters of the Pacific so seeing USA sort of drop away, I think that will be a big thing,” Yarrall said.

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz