The Swedish International Development Cooperation Agency (Sida) is grappling with the potential ramifications of the new US presidential administration’s policies, particularly concerning proposed cuts to foreign aid and a drastic reduction in UN engagement. The most alarming development is the unexpected news of a potential dismantling of the United States Agency for International Development (USAID), spearheaded by Efficiency Czar Elon Musk and reportedly supported by President Trump. This poses a significant challenge to global development efforts, given USAID’s substantial role as the world’s largest single aid donor.
Sida’s efforts to ascertain the specifics of these proposed changes have been hampered by a lack of communication with both the White House and USAID partners. Despite repeated attempts, Sida has been unable to establish contact, leaving them in the dark about the future of critical development programs and partnerships. This communication breakdown underscores the uncertainty and anxiety surrounding the potential restructuring of US foreign aid. Annika Otterstedt, Sida’s Head of Results and spokesperson on USAID matters, emphasizes the gravity of the situation, highlighting the potential for “an extremely large change” in international aid should USAID be dissolved.
The potential disappearance of USAID from the global development landscape represents a seismic shift, considering the agency’s contribution of 42% of all UN-registered humanitarian aid in 2024. Sida’s experience with the previous Trump administration reveals the complexities of navigating US foreign aid policies, particularly in areas like health. Previous restrictions on funding for organizations involved in abortion and family planning, even if funded by other nations or entities, demonstrate the potential for ideological considerations to influence aid distribution. This historical context intensifies concerns about the potential impact of USAID’s dissolution on vulnerable populations reliant on US aid.
Sida’s current collaboration with USAID encompasses crucial areas such as environment and climate, democracy, and economic sustainability. Beyond broader agreements, direct contracts exist for co-financing programs and projects in various partner countries. While Sida remains committed to fulfilling its obligations and achieving agreed-upon results using Swedish aid funds, the overall impact of development efforts will be significantly diminished without US involvement. Otterstedt underscores the importance of USAID’s substantial contribution to international aid and the potential detriment to those in need should the agency be dismantled.
In response to this evolving situation, Sida is meticulously reviewing all existing agreements and analyzing potential consequences. This process involves close communication with partner countries and organizations, as well as other aid agencies, particularly within the EU. The primary focus is to understand the specific implications of the proposed changes on the vulnerable populations Sida serves. Otterstedt emphasizes the potential for immediate and significant consequences for the world’s poorest and most vulnerable should the largest aid donor withdraw its support. This meticulous assessment aims to anticipate and mitigate the potential negative effects on the beneficiaries of their programs.
Sida’s ongoing efforts focus on evaluating the full scope of its activities connected to US funding, determining the potential repercussions of a USAID closure. The agency is conducting a worst-case scenario analysis to understand the potential impact on the people they ultimately serve. This proactive approach demonstrates Sida’s commitment to safeguarding the well-being of vulnerable populations and adapting to the evolving landscape of international development in the face of significant uncertainty surrounding the future of US foreign aid. The potential loss of USAID’s substantial contributions necessitates a thorough reassessment of strategies and partnerships to ensure the continuation of vital development initiatives.
