Countries like Nepal, which depend on loans and cash assistance for a large part of their development budget, should rethink the structure of their economy
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USAID introduced DDT powder dissolved in water to eradicate malaria to us small children living in remote areas. USAID was written in large English and Nepali letters on the bags filled with powder. After dissolving the powder in water and sprinkling it, in our hilly village insects like Upian, Udus, Sangla etc. were completely forbidden that year.
It was only after growing up that it became known that due to the same powder that was sprinkled for the elimination of malaria in the country, it became easy for the mountaineers to migrate to the parts of Inner Madhesh and Terai Madhesh. Around that time, rapid migration to the south began in their own country. Otherwise, before that, migration was seen to move from mountain to mountain. From Sikkim, Darjeeling Duars, Assam, Meghalaya, Myanmar to Thailand. It was only later that I found out that USAID is an organization opened by the world's richest country, the United States, to provide humanitarian aid to developing countries, i.e., the United States Agency for International Development (USAID). This division was the beginning of the competition to weaken the Soviet influence and to expand its dominance. This Cold War included the NATO military alliance of Western Europe and the Soviet-led Warsaw Pact Organization. was done.
He mentioned three reasons why USAID should be formed: (1) Grants given to developing countries after the Second World War are not enough. As we enter the 1960s, it is necessary to provide assistance to those countries by creating an independent mission according to the American desires, capabilities and needs of the third world. (2) It is also our duty not to allow the economy of the underdeveloped countries of the third world which have recently gained independence to become unstable through sustainable economic growth due to political and economic dissatisfaction. By doing so, we can be safe from the US national security threat. (3) It is a historic opportunity to support more than half of the population of the underdeveloped countries of the world for independent economic growth in the spirit of an independent developed industrial nation.
At the peak of the Cold War, the then Soviet Union was helping the remaining colonies of the world to fight the liberation war. In some countries that were independent, it was providing support for the development of new economies, unlike the American and European governments. The vast majority of the world's underdeveloped countries, not only freed from foreign slavery, but also freed from want and poverty with his help, expanded Soviet influence. The idea that the liberal capitalist world order could be interfered with when there was rebellion and turmoil seemed to be connected. That's why America needed such an organization at that time which could quell the rebellion and upheaval in those countries and continue to provide support for America's interests and favors. USAID was the product of that thinking.
Until a few days before its dissolution, this organization with a budget of more than 68 billion was active in 177 countries and 29 provinces. And, it worked in the areas of education, human rights, environment, health, economic growth and conflict prevention caused by underdevelopment and military cooperation (BBC). Recently, especially after China's Belt and Road Initiative, this agency was moved forward to stop that influence and start alternative development.
First laboratory of non-governmental organization
Before World War II, imperialism or heikism was understood as direct military or direct political intervention. But after the Second World War, they began to exercise indirect intervention and control for political and economic control in the countries they wanted. USAID was also used as a financial management organization for how Western liberal capitalist principles can be institutionalized within developing countries, how ideological supporters can be raised and increased. Not only that, it became an organization that indirectly supports the opposition candidate in the presidential election (Mexico President Asks Biden to Stop USAID Funding Opposition Group, Reuters). Along with USAD, many organizations such as World Bank, IMF, DIFF, DANIDA, FINED, etc. also launched the program. With the help of such missions, non-governmental organizations and civil society groups were formed in poor countries. So that with the help of those organizations help to legitimize the neoliberal reforms (NGOism: The Politics of the Third Sector).
According to an in-depth research paper by sociologist James Petras, in the 1970s, NGOs supported by Western countries, especially in South America, waged a massive campaign against left-wing leaders and the movements they tried to raise (NGOs: In the Service of Imperialism, James Petras). Salvador Allende's socialist government was overthrown in a coup. Neoliberal economic policies were immediately adopted. Through these NGOs, organic and joint reform issues were demolished. For example, most of the fraternal organizations of the left-wing or liberal democratic parties have been transformed into non-governmental organizations that provide advocacy rather than grassroots organizations (such as trade union federations, farmers' organizations, youth and student organizations, etc.) that provide strength for the movement. When the leadership level of the people's organizations or social organizations began to depend on the support of the aid agencies for their and their families' sustenance and economic development, they began to prioritize the wishes and desires of the donor aid agencies, not the people's movement. This made the field of politics without an agenda. No such class issue remains. The issue of equality and opportunity or the issue of mass participation in capital formation was made secondary. The common people were taken away by making them apolitical. Common people were taught to say 'I don't like politics, I like purity.'
In fact, the main reason behind this non-political cause was actually to strengthen the politics of a handful of people. On the other hand, the leader was separated from the society and made a person. I was separated from the feeling that I am not only for myself, but for society. It was to distract from the collective interest and progress. Thus, Western aid agencies, including USAID, institutionalized many of these transformations in many countries, propounding the so-called 'doctrine of humanitarian intervention' and creating the environment for military intervention from the Balkans to the Middle East, from Iraq to Afghanistan. After the invasion or after those countries were destabilized by war, they helped to cover up the need to justify intervention or to teach lessons.
Foundation of dependence
At the beginning of the sixth decade of the twentieth century, USAID's development investment was expanded to the areas of health, agriculture, education and inclusion, which are considered strategically sensitive for developing countries. In particular, the mission managed state, province, local government and community health centers to administer medication against complex diseases such as malaria, TB, kidney dialysis, HIV/AIDS, heart disease, etc., and vaccines as mentioned above. Take Nepal as an example, USAID is running four main projects in Nepal. (1) USAID Health Direct Financing Project (2) USAID Agriculture Direct Financing Project (3) USAID Education Financing Project and (4) Inclusive Policy Direct Financing Project. All these four projects have been put on hold for 90 days. But 2 out of these 4 education and health projects cannot be postponed in any case because the United States has done it.
As we all know, since 1954 America has been the largest donor nation for Nepal. He distributes dollars in Nepal through both government and non-government channels. It is more invisible than visible. According to the unofficial data released by the Ministry of Finance, 56.51 billion Nepalese rupees were officially allocated to these four projects in the previous financial year. Apart from that, the much talked about $500 million MCC project was launched which was passed by the parliament in 2022 amid much fanfare. That project has also been closed. And, this year, an agreement was reached between the Commission and the Government of Nepal to spend an amount equal to 90.94 billion for 5 years. It was planned to spend till the year 2029 under 21 different headings including the 4 projects mentioned above. The cost of all these main projects was estimated at 24.58 billion rupees of which 12.29 billion rupees had already gone into the distribution process (How USAID Cut Effects Nepal, Nepali Times). Today, it seems that a total of Rs. 261.11 million has been agreed between the civil society and the media. However, after the Trump administration announced the complete shutdown of the entire USAID mission for 90 days, nearly 1,500 people have lost their jobs in Nepal. About 400 office buildings that have been leased across the country have become vacant.
In general, the developing countries of the South have been relying on investments from missions including USAID, believing in very sensitive areas such as health and education. The price of such dependence is hard to pay. Because their support amount comes with various conditions attached. Especially the government should turn a blind eye to their opaque spending. Some spend only in the areas they want. The government of Nepal was not able to impose some of its conditions on the expenditure of USAID. The expenditure of most of the projects, including agriculture, was not in the interest of the common farmers and working class. Most of the assistance was more of a hand-me-down than teaching how to fish.
Scholars advocating Western cooperation, no matter how much they argue that missions are in favor of democracy, freedom, rule of law or human rights, their main purpose seems to be used to maintain or suppress the power, influence of their countries. For the same reason, some ordinary amount is also used to show the ruler of the country concerned, which is not unusual. Sociologist Wolfgang Sach and political scientist Sandhya Pahuja have described the campaigns of missions on political and social or legal cooperation in "Age of Development" and "Decolonizing International Law" respectively. Both of them have written about how Western powers, including the US, are fulfilling their imperial aspirations in the name of economic modernization, technology transfer, management, intervention for human security (Olfgang Sach, The Age of Development: An Apocalypse, Sandhya Pahuja: Decolonizing International Law).
Now who will fill the empty space?
USAID spent 72 billion US dollars in the name of humanitarian aid in 2023. Similarly, the British Dfd spent 15.3 billion pounds and the European Union collectively spent 95.9 billion dollars. USAID seemed to focus the bulk of its spending on sub-Saharan Africa, followed by Latin America, and then Asia and the Pacific region. As soon as USAID was closed, it is said that 3.8 million women suffered from the lack of family planning tools. HIV vaccine trial in South Africa has stopped. Food aid to refugee camps has been cut off (The Impact of the USAID Funding Freeze: What We Know Sofar-World, Relief Web) Earlier US governments' pledges to provide funding to combat environmental and climate change appear to be limited to promises. The trade war that has been escalating since 2017 is not expected to lead to more disruptive changes. But no one could even imagine that the economic, social and political system established after the Second World War would be destroyed.
Many seem to be speculating that the European Union and China could replace the US. However, Europe seems to be isolated in the Trump administration's world order (New World Order). With the dissolution of the NATO military organization, European countries are going to increase their military spending by 3 to 5 percent of their gross domestic product. Minister Annalise Dodd has resigned after the UK cut its foreign aid. West European countries including France and Germany seem to be going through their level of economic recession. China alone cannot fill this gap. China has also been opposing the cooperation adopted by Western countries. Instead of gaining influence by distributing donations, it seems that the campaign is about taking mutual benefits through cooperation. Especially after 2013 he is trying to cooperate through BRI. which in principle emphasizes physical infrastructure and production rather than personal gain. Which the rulers of countries like ours do not like.
Countries like Nepal, which depend on loans and cash assistance for a large part of their development budget, it seems that the three countries should reconsider the structure of their economy. The 'gangster capitalism' of the wealthy does not promote liberalism, let alone socialism. In the agenda of the three countries like ours, there is no possibility of development based on cooperation and loans. We need to understand the pace of changes in the world situation and restructure the national economy.
