The Fallout From the Dismantling of USAID Continues – Newsweek

Report on the Suspension of U.S. Foreign Aid and its Impact on Sustainable Development Goals

Executive Summary

A recent executive order suspending U.S. foreign aid and dismantling programs within the U.S. Agency for International Development (USAID) has caused significant disruption to global development efforts. This policy shift directly undermines progress toward several Sustainable Development Goals (SDGs), particularly those related to health, economic growth, and global partnerships. The abrupt nature of the funding freeze has led to the collapse of critical infrastructure, widespread job losses, and a severe erosion of trust, with long-term consequences that far outweigh any short-term fiscal savings. This report analyzes the multifaceted impact of these policy changes on the 2030 Agenda for Sustainable Development.

Direct Impacts on Key Sustainable Development Goals

SDG 3: Good Health and Well-being

The suspension of funding has critically impaired initiatives essential for achieving SDG 3. The immediate effects include:

• The stalling of established programs targeting HIV, malaria, and maternal health, reversing decades of progress.
• The dismantling of disease surveillance systems, weakening global preparedness for health crises.
• Disruption in the training and deployment of local health workers, creating a critical capacity gap in vulnerable communities.
• Loss of health insurance for laid-off development professionals in the U.S., demonstrating a domestic impact on well-being.

SDG 8: Decent Work and Economic Growth & SDG 1: No Poverty

The policy has triggered severe economic repercussions, directly conflicting with the objectives of SDG 8 and SDG 1.

1. Mass Job Disruption: An estimated 50,000 jobs were disrupted globally. This includes highly educated professionals in developing nations whose work was central to local economic stability and program implementation.
2. Domestic Employment Crisis: U.S.-based nonprofits experienced deep layoffs, with some reducing staff by up to 60%, leading to a loss of specialized expertise and livelihoods.
3. Increased Poverty Risk: The loss of income for thousands of families, both domestically and abroad, directly threatens household financial stability and pushes vulnerable populations closer to poverty.

SDG 17: Partnerships for the Goals & SDG 16: Peace, Justice, and Strong Institutions

The foundation of the SDGs rests on international cooperation, which has been severely damaged by the policy change.

• Erosion of Trust: The sudden withdrawal of support has destroyed long-standing relationships and trust between the U.S., international partners, and local governments, undermining the collaborative spirit of SDG 17.
• Institutional Collapse: The infrastructure of numerous non-governmental organizations, which are essential for implementing development goals, has collapsed. Rebuilding this institutional capacity, a cornerstone of SDG 16, will require substantial time and resources.
• Weakened Global Engagement: By dismantling a key pillar of its development apparatus, the U.S. has diminished its capacity to engage in and support global efforts to build peaceful and inclusive societies.

Analysis of Policy Rationale and Long-Term Consequences

The “Self-Reliance” Framework vs. Sustainable Development

The administration’s stated goal is to shift toward “self-reliance,” requiring recipient nations to co-finance programs. While shared responsibility aligns with SDG principles, experts argue that the abrupt removal of foundational support before local capacity is secured is counterproductive. This approach risks leaving nations without the necessary resources to sustain health and development systems, thereby hindering their path to self-reliance and achieving the SDGs.

The Inadequacy of Philanthropic Support

While private philanthropy has increased in response to the crisis, with organizations like Charity Navigator reporting significant spikes in donations, these contributions are insufficient to cover the multi-billion-dollar shortfall left by the federal aid freeze. Experts describe this private funding as “a drop in the bucket,” incapable of replacing the scale and scope of government-led development programs.

The Challenge of Rebuilding

Former USAID staff and development experts warn that the damage is systemic and long-lasting. The key challenges to recovery include:

1. Loss of Human Capital: The dispersal of tens of thousands of skilled professionals represents a critical loss of specialized knowledge that cannot be easily reconstituted.
2. Financial Cost: Re-establishing the dismantled programs, relationships, and trust will cost significantly more than the savings achieved by the funding freeze.
3. Strategic Setback: The policy has compromised U.S. strategic interests and its role as a global leader in promoting health, stability, and sustainable development. Progress toward the 2030 Agenda has been demonstrably set back.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 3: Good Health and Well-being

• The article directly mentions the stalling of programs for “HIV, malaria, and maternal health” due to the aid freeze. It also discusses the dismantling of “vital public health systems” and “disease surveillance systems,” which are fundamental to ensuring healthy lives and promoting well-being for all.

SDG 8: Decent Work and Economic Growth

• The article extensively details the negative impact on employment. It highlights that “tens of thousands of skilled professionals lost jobs,” U.S. nonprofits faced “deep layoffs” of “50 to 60 percent,” and specific individuals lost their livelihoods. This directly relates to the goal of promoting sustained, inclusive, and sustainable economic growth and decent work for all.

SDG 17: Partnerships for the Goals

• The core issue of the article is the abrupt freezing of foreign aid and the dismantling of USAID, a key agency for international cooperation. This action undermines global partnerships for sustainable development. The text emphasizes the breakdown of “relationships between USAID missions and government counterparts” and the loss of trust, which are essential for effective partnerships.

2. What specific targets under those SDGs can be identified based on the article’s content?

SDG 3: Good Health and Well-being

• Target 3.3: By 2030, end the epidemics of AIDS, tuberculosis, malaria and neglected tropical diseases… The article explicitly states that the aid freeze caused “Programs for HIV, malaria… [to have] stalled,” directly impacting progress toward this target.
• Target 3.1: By 2030, reduce the global maternal mortality ratio… The mention of stalled “maternal health” programs connects the article’s content to this target.
• Target 3.c: Substantially increase health financing and the recruitment, development, training and retention of the health workforce in developing countries… The article notes that USAID programs “trained local health workers” and that the aid cuts forced organizations like APHRC to scrap “staff development, staff growth, staff training,” which is a direct setback for this target.

SDG 8: Decent Work and Economic Growth

• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… The article provides multiple examples of how the aid cuts undermine this target, citing an estimated “50,000 jobs were disrupted worldwide,” affecting “highly educated professionals” and leading to massive layoffs in both U.S. and international organizations.

SDG 17: Partnerships for the Goals

• Target 17.2: Developed countries to implement fully their official development assistance commitments… The article’s central theme is the “abruptly froze billions of dollars in foreign aid” by the U.S., which represents a failure to meet this target concerning Official Development Assistance (ODA).
• Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships… The article describes the “fractured decades of global health and development work” and the “devastating” loss of trust and relationships, indicating a severe weakening of the global partnership. It also notes that private philanthropy, while helpful, is just “a drop in the bucket,” showing that multi-stakeholder efforts cannot easily replace government commitments.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

SDG 3: Good Health and Well-being

• Qualitative Indicator: The stalling of health programs for HIV, malaria, and maternal health serves as a direct, albeit non-numerical, indicator of negative progress.
• Qualitative Indicator: The cancellation of “staff development, staff growth, staff training” for health professionals is an indicator of reduced capacity in the health workforce.

SDG 8: Decent Work and Economic Growth

• Quantitative Indicator: An estimated “50,000 jobs were disrupted worldwide.”
• Quantitative Indicator: U.S. nonprofits reduced staff by “50 to 60 percent.”
• Quantitative Indicator: A single company, EnCompass, “lost over 400 jobs in less than a month.”
• Quantitative Indicator: APHRC had “21 staff positions” affected by the cuts.

SDG 17: Partnerships for the Goals

• Quantitative Indicator: The freezing of “billions of dollars in foreign aid.” This is a direct measure of the reduction in Official Development Assistance.
• Qualitative Indicator: The “level of trust lost” between U.S. agencies and international counterparts, described as “devastating,” is a key qualitative indicator of the health of global partnerships.
• Quantitative Indicator: The amount of private giving raised ($763,000) versus the federal shortfall, which is described as “a drop in the bucket,” indicates the insufficiency of alternative partnerships to fill the gap.

4. Table of SDGs, Targets, and Indicators

Source: newsweek.com