Page 28 - IB February 2025

Analysis

according to the most recently published statistics from the Service Association and the American Federation of
Congressional Research Service. Sizeable chunks of this go to Government Employees—filed a lawsuit claiming the move had
the Compact nations of Marshall Islands, Federated States of been unconstitutional. A federal judge granted a temporary
Micronesia and Palau. reprieve for over 2000 USAID staff members who would have
While most affected organisations are unwilling to discuss been placed on administrative leave, and extended the same
the impact of the pause while quietly hoping they will reprieve to USAID staff stationed overseas, including those in
survive the 90-day review process and cull, and again receive Fiji, the Federated States of Micronesia, the Republic of the
US funds, others took to media platforms to share their Marshall Islands, Palau, Papua New Guinea, and the Solomon
discontent. Islands.
“Our organisation itself will be okay, but it’s the people However, there is little they can do for those Pacific Island
living in the rural communities who are recipients of our nationals who relied on USAID funded programs for assistance.
services, [it’s those] people who will be impacted,” Peter
Bosip, a lawyer from Papua New Guinea told the ABC. What does this mean for the Pacific?
The Adventist Development and Relief Agency (ADRA) works USAID’s Pacific office is in Fiji and prior to the 2024 US
on health, disaster resilience, inclusion and other initiatives election, rapid expansion of its footprint was planned.
in Fiji, Vanuatu and Samoa, amongst other Pacific nations. Fiji Prime Minister Sitiveni Rabuka told officials on a recent
Last year it was recognised for its work in promoting gender visit to the US that he hopes that the aid freeze will not
inclusion through a ‘Sautu’ award from Fiji’s National Disaster affect the growth of USAID programs, especially in key areas
Management Office, the Fiji Council of Social Services and UN such as ocean and climate resilience, health, security, and
Women Pacific. digital connectivity.
USAID has been an important funder of ADRA’s work, Longstanding geopolitical jostling in the region has some
and its global headquarters says it is now actively seeking analysists suggesting Trunp’s winding back of aid will give rival
“alternative funding to continue its suspended life-saving China an opportunity to step in.
programmes.” Beijing signed a security agreement with the Solomon
“ADRA International is making every possible effort to stay Islands in 2022, and Cook Islands Prime Minister Mark Brown
in communication with the US State Department to secure in Beijing this month signed a comprehensive strategic
waivers and facilitate the review of current USAID-funded partnership agreement with China (See page 25).
ADRA programs. Although we continue to hope for a positive While the US and China have made significant contributions
outcome, ADRA is preparing for any challenges that may to the South Pacific both in terms of aid and strategic
arise and remains committed to helping people in need,” the partnerships, neither is the region’s greatest donor. That
statement continued. title remains with Australia, according to the Lowy Institute.
The decision also affects funding for United Nations Its understood Australian missions and DFAT headquarters in
organisations, and important initiatives such as PEPFAR [the Canberra are already fielding multiple requests for assistance
President’s Emergency Plan for AIDS Relief]. to fill shortfalls created by the US pause.
“This is a matter of life or death. PEPFAR provides lifesaving While the Pacific is often characterised as one of world’s
antiretrovirals for more than 20 million people – and stopping most aid dependent regions, and foreign aid from across
its funding essentially stops their HIV treatment. If that oceans does constitute a significant portion of the region’s
happens, people are going to die and HIV will resurge,” official development finance, developments in the US may
International AIDS Society President, Beatriz Grinsztejn said. prompt a reckoning and rethinking of this dependence.
There are concerns about the impact on the Pacific, where Pacific governments are pragmatic about the quid pro-quo
Fiji and PNG have seen a resurgence of HIV cases. that comes with development assistance, particularly in
Some exemptions to the executive order have since been response to security alliances. Trump’s pronouncements are
allowed, such as certain humanitarian programs, such as those simply an unvarnished version of what many of the Pacific’s
providing life-saving medicine, food, shelter, and subsistence ‘development’ partners expect in return for aid dollars.
aid. As the former Secretary-General of the Pacific Islands
However, on February 3rd, reports emerged that more Forum and former Cook Islands Prime Minister Sir Henry Puna
than 10,000 USAID employees worldwide had been placed noted in 2023: “We see these points of external influence
on administrative leave, further disrupting critical programs increasingly creep into all facets of our operations, both at
meant to assist millions globally. the national and the regional level - reaffirming that common
Shortly thereafter, two unions—the American Foreign adage, ‘there is no such thing as a free lunch.’”

28 Islands Business, February 2025