In international relations, nation states vie for power and security. They do this through diplomacy and treaties which establish how they should behave towards one another.
If those agreements don’t work, states resort to violence to achieve their goals.
In addition to diplomatic relations and wars, states can also project their interests through soft power. Dialogue, compromise and consensus are all part of soft power.
Foreign assistance, where one country provides money, goods or services to another without implicitly asking for anything in return, is a form of soft power because it can make a needy nation dependent or beholden to a wealthier one.
In 2023, the U.S. government had obligations to provide some $68 billion in foreign aid spread across more than 10 agencies to more than 200 countries. The U.S. Agency for International Development (USAID) alone spent $38 billion in 2023 and operated in 177 different countries.
Spreading good will through aid
USAID has been fundamental to projecting a positive image of the United States throughout the world. In an essay published by the New York Times, Samantha Power, the former administrator of USAID, described how nearly $20 billion of its assistance went to health programs that combat such things as malaria, tuberculosis, H.I.V./AIDS and infectious disease outbreaks, and humanitarian assistance to respond to emergencies and help stabilize war-torn regions.
Other USAID investments, she wrote, give girls access to education and the ability to enter the work force.
When President John F. Kennedy established USAID in 1961, he said in a message to Congress: “We live at a very special moment in history. The whole southern half of the world — Latin America, Africa, the Middle East, and Asia — are caught up in the adventures of asserting their independence and modernizing their old ways of life. These new nations need aid in loans and technical assistance just as we in the northern half of the world drew successively on one another’s capital and know-how as we moved into industrialization and regular growth.”
He acknowledged that the reason for the aid was not totally humanitarian.
“For widespread poverty and chaos lead to a collapse of existing political and social structures which would inevitably invite the advance of totalitarianism into every weak and unstable area,” Kennedy said. “Thus our own security would be endangered and our prosperity imperilled. A program of assistance to the underdeveloped nations must continue because the nation’s interest and the cause of political freedom require it.”
Investing in emerging democracies
The fear of communism was obvious in 1961. The motivation behind U.S. foreign assistance is always both humanitarian and political; the two can never be separated.
Today, the United States is competing with China and its Belt and Road Initiative (BRI) for global influence through foreign assistance. The BRI was started by Chinese President Xi Jinping in 2023. It is global, with its Silk Road Economic Belt connecting China with Central Asia and Europe, and the 21st Century Maritime Silk Road connecting China with South and Southeast Asia and Africa and Latin America.
Most of the projects involve infrastructure improvement — things like roads and bridges, mass transit and power supplies — and increased trade and investment.
As of 2013, 149 countries have joined BRI. In the first half of 2023, a total of $43 billion in agreements were signed. Because of its lending policy, BRI lending has made China the world’s largest debt collector.
While the Chinese foreign assistance often requires repayment, the United States has dispensed money through USAID with no direct feedback. Trump thinks that needs to be changed. “We get tired of giving massive amounts of money to countries that hate us, don’t we?” he said on 27 January 2024.
Returns are hard to see.
Traditionally, U.S. foreign assistance, unlike the Chinese BRI, has not been transactional. There is no guarantee that what is spent will have a direct impact. Soft power is not quantifiable. Questions of image, status and prestige are hard to measure.
Besides helping millions of people, Samantha Power gave another more transactional reason for supporting U.S. foreign assistance.
“USAID has generated vast stores of political capital in the more than 100 countries where it works, making it more likely that when the United States makes hard requests for other leaders — for example — to send peace keepers to a war zone, to help a U.S. company enter a new market or to extradite a criminal to the United States — they say yes,” she wrote.
Trump is known as a “transactional” president, but even this argument has not convinced him to continue to support USAID.
Soft power is definitely not part of his vision of the art of the deal.
Three questions to consider:
1. What is “foreign aid”?
2. Why would one country give money to another without asking for anything in return?
3. Do you think wealthier nations should be obliged to help poorer countries?