The statement “Time for it to die” by Elon Musk regarding USAID caused shockwaves in the aid industry and led to the Trump Administration terminating many USAID programs. This includes cuts to humanitarian relief and public health, such as the de-funding of Gavi, the global vaccine alliance. However, aid under the banner of “development” has shown mixed results and deserves scrutiny due to enfeebled public services, lackluster investment, rising inequality, and growing poverty. There is also a common misunderstanding about how much is spent on aid and where it goes, as most of it is paid to American contractors. Additionally, China has outspent the US in aid-like investments in recent years, offering aid without conditions on political change or market liberalization. The US generates many negative spillovers and its aid does not rectify them, as it rejects and denounces the UN’s Sustainable Development Goals. The rentier is at the heart of today’s perverse system, with monies draining from poorer places. Doctrines to shrink the state and cut taxes limit revenue collection, hindering self-reliance. Norway recognizes tax evasion and illicit financial flows, hitting poor countries disproportionately. A few donors and policy activists call for policy changes to stop these issues and help poorer countries exit from aid by mobilizing domestic revenues. The renowned economist John Maynard Keynes advocated for the euthanasia of the rentier in 1936.

Source: https://time.com/7274435/trump-usaid-cuts-development-aid/