Pacific foreign aid will continue despite U.S. cuts

Robin Davies, an academic from the Australian National University, believes that foreign aid to the Pacific will persist despite significant changes in global aid dynamics. Although the United States has decreased its aid, other wealthier nations are likely to continue supporting poorer countries. Davies notes that this shift reflects a breakdown of the traditional aid model established by the OECD over 60 years ago. Emerging donors, like China and the United Arab Emirates, are gaining influence in the aid space. He expects ongoing humanitarian and diplomatic needs will drive aid from richer nations to their less developed neighbors. While the U.S. Agency for International Development (USAID) is expected to lose its current role, Davies points out that the U.S. can still provide humanitarian aid through other agencies like the State Department. He emphasizes that aid will adapt to serve national interests, regardless of how it is structured. Davies also highlights a growing challenge for non-governmental organizations (NGOs) in fundraising, especially since the pandemic. He suggests that this could change if public perceptions shift towards a greater need for private contributions to international aid. In the Pacific, aid primarily comes from Australia, with limited support from the U.S. and New Zealand. Pacific nations had anticipated increased aid for climate change initiatives, but those hopes may not materialize under current U.S. policies. Still, Davies mentions that the decline in U.S. aid may not greatly impact the Pacific nations immediately. Finally, he raises the possibility that Pacific leaders might turn to China for aid if U.S. assistance diminishes. However, it remains uncertain whether China will significantly expand its aid efforts in the region. The situation is evolving, and its outcome is yet to be determined.