Philanthropies in Southeast Asia increasing efforts to compensate for the USAID's void
In a significant move that has far-reaching implications, the suspension and cuts to US foreign aid, spearheaded by President Donald Trump, have left a profound impact on Southeast Asian countries. Organizations focused on climate, education, and infectious diseases have been particularly affected.
One such organization, Thailand Clean Air Network (Thailand CAN), has been forced to halt its work due to a "stop work" order issued by USAID on 28 January. This decision came at a critical time, as Thailand CAN was in the process of producing a music video based on the true story of its environmental lawyer and co-founder who drafted the citizen-initiated clean air act at the bedside of her mother, who succumbed to lung cancer.
The aid freeze has left a gap in funding for Thailand CAN's "Don't Let Go" campaign, which shares stories of those who died prematurely due to air pollution. However, in challenging times, it has been the local community members, small businesses, and non-profits who have come together to support Thailand CAN's work.
The US Agency for International Development (USAID) has disrupted the lives of people who rely on it for infectious disease treatments, food, clean water, and education in conflict-ridden communities. The 90-day review on all foreign aid, which has resulted in the closure of organizations, staff layoffs, and non-payment to service providers, officially lasts until the end of this week.
The consequences of these actions are far-reaching. For instance, the suspension of U.S.-funded demining programs in countries like Vietnam, Laos, Cambodia, and Sri Lanka has led to increased accidents and casualties, including deaths of children, and halted progress toward mine clearance goals critical for local safety and development.
The aid freeze has also disrupted humanitarian and development programs involving health and education, undermining U.S. credibility and influence in the region. This has allowed China to expand its strategic influence in Southeast Asia. Economically and diplomatically, the abrupt aid cuts have hampered multilateral cooperation and regional stability, forcing Southeast Asian nations to reconsider their dependencies on the U.S. and pivot toward more stable partnerships with Europe and other actors.
Ani Dasgupta, president and CEO of research non-profit World Resources Institute (WRI), believes that the role of multilateral development banks, like the World Bank and Asian Development Bank, will become more pronounced to leverage declining capital from developed nations more catalytically. Nicky Wilkinson, executive director of Firetree Philanthropy, notes that only 10% of its portfolio has been significantly impacted by the funding freeze thus far.
ECCA Family Foundation's Liew suggests that strengthening local and community-based funding is the "most important thing most people don't talk about". Liew also mentions that experimenting with revolving fund structures can help set up a fund for smallholder farmers and fisherfolk to access interest-free loans.
In a surprising twist, during the pandemic, Thailand CAN was only able to gather at least 10,000 physical signatures for submitting a citizen-initiated legislation in Thailand due to the help they got from small business owners, not larger corporations. The fact that small business owners, who are in a precarious financial situation themselves, were the ones to help Thailand CAN is considered incredible by Weenarin, from Thailand Clean Air Network.
The Tanoto Foundation, one of the largest philanthropies in Asia, deals with much larger grant quantums compared to smaller foundations. The Tanoto Foundation had partnered USAID on various programs, including the Partnership to Accelerate Stunting Reduction in Indonesia (PASTI).
The US has declared that 83% of USAID's global contracts would be permanently terminated. More than 14 million deaths worldwide could be linked to Trump's cuts in foreign humanitarian aid, highlighting the potentially grave consequences beyond Southeast Asia alone. These disruptions have contributed to increased human suffering and instability across multiple sectors.
- The suspension and cuts to US foreign aid, led by President Donald Trump, have had a significant corporate responsibility in impacting social sectors across Southeast Asian countries.
- Organizations focused on climate, education, and infectious diseases have been particularly affected by the aid freeze, as evident in the case of Thailand Clean Air Network (Thailand CAN).
- Thailand CAN, an organization dedicated to addressing air pollution, has been forced to halt its work due to a "stop work" order issued by USAID, impacting their "Don't Let Go" campaign.
- The funding gap created by the aid freeze has left many organizations like Thailand CAN struggling, but locals, small businesses, and non-profits have stepped up to support their work.
- The US Agency for International Development (USAID) has disrupted essential services such as infectious disease treatments, food, clean water, and education, affecting vulnerable communities in conflict-ridden regions.
- The consequences of these actions extend beyond funding disruptions, affecting regions like Vietnam, Laos, Cambodia, and Sri Lanka where demining programs have come to a halt, resulting in increased accidents, casualties, and halting progress towards mine clearance goals.
- The aid freeze has also undermined the US's credibility and influence in the region, allowing China to expand its strategic influence in Southeast Asia.
- Economically and diplomatically, the abrupt aid cuts have led to setbacks in multilateral cooperation and regional stability, forcing Southeast Asian nations to reconsider their dependencies on the US and pivot towards more stable partnerships.
- In response to these developments, multilateral development banks like the World Bank and Asian Development Bank may play a more significant role in leveraging declining capital from developed nations.
- The aid freeze has affected a small portion of the portfolios of philanthropic organizations like Firetree Philanthropy, but the impact has been significant.
- Strengthening local and community-based funding is considered crucial by experts like ECCA Family Foundation's Liew, who also suggests experimenting with revolving fund structures to support smallholder farmers and fisherfolk.
- In an unexpected twist, small business owners, despite their precarious financial situations, have been instrumental in helping organizations like Thailand CAN gather the necessary signatures for citizen-initiated legislation, demonstrating the vital role small businesses can play in social impact initiatives.
