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Unmasking the True Cost of USAID and Western Donor Money - The Present World
April 23, 2025, 4:50 am

Unmasking the True Cost of USAID and Western Donor Money

 Swadesh Roy
  • Update Time : Saturday, March 15, 2025

Since the Trump administration halted USAID funding, various opinions have emerged—not only in America but across many countries around the world. Some people support the necessity of such funding, while many oppose it.

Allocation of Funds by Developed World Agencies
 USAID and similar agencies from the developed world often channel their funds to private organizations (NGOs) in Third World countries. Over time, many have meticulously analyzed how much of this money is simply drained away, how much is actually spent on development, what the primary purpose of these funds is, and what results they ultimately produce.

Haiti and Questionable Spending
 Paul Vallas, a former CEO who has observed the work of donor organizations like USAID, recently wrote in the New York Post that there is no organization as corrupt as USAID left on the planet. He provided several examples; among them, he mentioned the case of the $4.4 billion in aid provided after the 2010 earthquake in Haiti. According to him, only 2% of that money was spent on the victims in Haiti. He even raised questions about the work of the International Red Cross, pointing out that while the organization claimed to have built 130,000 houses in Haiti, in reality only six verifiable houses were constructed.

Scrutiny of United Nations Expenditures
 Not USAID or the Red Cross, but recently “Politico” raised questions in one of its reports about the funds spent on various United Nations activities. One of the key points was that the scientific basis for the data provided by the UN—used to justify increased allocations to the climate fund—is hardly acceptable. Instead, most of this data is produced in a manner designed primarily to create a climate panic among people so that they press for increased climate funding. Yet, much of this information has no genuine scientific foundation. In every country where work on climate is undertaken—and in the groups established in various countries under the UN’s patronage—there are very few truly scientifically educated individuals; rather, these groups consist largely of various so-called rights activists.

Historical Critique of Western Funding and NGOs in Bangladesh
 In our country, the first publication to expose the spending of money from these Western donor agencies through NGOs was a pamphlet by Mozaffar Nap, released in the early 1980s. In that pamphlet, the harmful impact of such funding and the NGO concept on a nation and its development was laid out. Later, after the collapse of the Soviet Union, most of those associated with Mozaffar Nap found their way into NGOs in various forms, which eventually led to the discontinuation of the pamphlet’s circulation. In addition, researcher Badruddin Omar has authored several books on the subject of Western funds and NGOs.

Changing Dynamics in Third World Development
 However, for more than twenty years now, many Third World countries have come to understand that the money from the Western world is not really intended for the development interests of any particular country. Their goals are entirely different. Many strong and development-oriented governments have taken measures to block the flow of such funds and restrict their activities. The governments and powerful leaders of these Third World countries have pursued development at the micro level in a way that ensures the sustainable improvement of the common people’s quality of life. Gradually, those so-called development-based NGOs have become almost meaningless or have faded from the main stage.

Shift in the Nature of Western Aid
 When these leaders and governments in Third World countries choose the path of sustainable micro-level development, it has been observed that the nature of Western aid and its activities also changes. Instead of focusing on social and economic development, this aid is then used in the name of promoting human rights, fostering liberalism in the state and society, and establishing electoral systems in the Third World.

Governmental Control Versus Unrestricted Inflows
 In relatively strong, large economies, these funds are often forced to be spent through governmental channels by the donor agencies. In contrast, countries like Singapore have never allowed this money to enter under any circumstances. The Singaporean government has not only identified those who covertly work with such funds but has also expelled them from politics and their professions, and in many cases even forced them to leave the country.

Impact on Intellectual Traditions in Africa and Asia
 Yet, while this money successfully inflicts political damage on the argumentative societies of the Third World, it has also harmed their intellectual spheres. Africa and Asia have a long history of intellectual pursuit—a history spanning several thousand years. This legacy was later enhanced by the influence of nineteenth-century Western enlightenment or Renaissance, which gave rise to an intellectual class that led on the global stage in both social sciences and natural sciences.

In truth, this intellectual class was the true leader of these states and societies. Although these countries lagged behind Western nations in terms of financial and military power, they were able to contend with the West on an intellectual level. However, since the formation of Western-funded NGOs in these countries in the 1980s, the intellectual community has gradually suffered. In earlier times, no country had developed its own think tanks or seen intellectuals deliberately engage with state and societal issues—until Western funds created NGOs as an alternative.

Corruption, Pseudo-Intellectuals, and Media Influence
 Because these Western-funded NGOs are fundamentally corruption-prone, no genuine intellectual ever joins them. True intellectuals are individuals of character who always act on their own judgment and, above all, for the benefit of their country and its people. Consequently, Western funds have never chosen them—and could not. Instead, Western donors attempt to designate those they do select as symbols of integrity. For example, in institutions established with their funds, the heads typically do not receive any salary. In Third World societies, such individuals are portrayed as being financially deprived—almost in an honorary, voluntary capacity—in order to highlight their role in the institution. However, as Paul Vallas’ writings indicate, only 2% of the $4.4 billion was spent on the victims of the earthquake in Haiti. There is a great deal of research on where the remaining money goes. It appears that a large portion of these funds is siphoned off by the fund-controlling institutions, their close associates in power, and by the key individuals or a small group within the organizations responsible for spending in those countries. Essentially, they divert a significant part of the money to places where illicit funds can be hidden. Then, for the fund managers and the organizations through which the money is spent, a large portion is accounted for various expenses. For instance, they frequently travel abroad, and their trips include expenses for an executive class and similar costs, amounting to several million dollars. From travel expenses to laundry, shoe polish, and, above all, medical care, several million dollars are spent in total.

Because this money is ultimately spent using taxpayers’ funds, there is always a vigorous lobby in favor of such expenditures. They work in an extremely aggressive manner, establishing one sector after another.

Purchasing Prestige and Influencing Society
 In this way, when the heads of these Third World NGOs come into possession of large sums of money, they purchase Western prestige with it. This acquisition of prestige establishes them as prominent figures among a segment of their own country’s population. At the same time, their vast wealth gradually exerts significant influence over the national media. As a result, instead of qualified and educated individuals, a class of media-bred intellectuals, nurtured by NGOs, comes into being. Not only that, but in the realm of public thought, they use their money—along with Western collaboration and both local and international media—to steer intellectual pursuits into entirely different directions. From painting to human rights and even to economic policies, they create a form of socio-ideological dominance that even permeates universities.

Government and Political Collusion
 On the other hand, governments and politicians themselves become entangled in this camouflage. They begin to honor these individuals, and simultaneously, they no longer support or even listen to the original intellectual forces of society and the state. In this manner, gradually, the intellectual tradition in these countries falls into the hands of those paid by Western funds—an unfortunate trend observed in these nations. As a result, the intellectual class that had developed over thousands of years of wisdom—and, following the Renaissance of the nineteenth century, had built and advanced the mental framework of society and the state—is diminished or suppressed in many smaller countries under the pressure of these NGOs.

Effects on Crisis Management and Policy
 Moreover, while repeatedly reporting from the Rohingya camps, we have observed that many of the honest officials in our administration have admitted that those who receive foreign funds are actually the ones who wish to keep these problems alive. They even hinder the government from resolving the issues because, at that time, some government insiders were aligned with them. The Foreign Minister even remarked at one point that many officials in the administration no longer listen to the government but rather to the NGOs—simply because they receive cash from these organizations every day.

It is widely acknowledged that money itself is a powerful force—many are swayed by it, and even state power is compromised in its presence. However, instead of addressing these critical issues, what we see is that in many countries the intellectual class has been replaced by an NGO class. This replacement is not only harmful but also dangerous, because these NGOs operate hand in hand with corruption and Western subservience.

Is there Hope for the Global South
 Therefore, now that the current U.S. administration has decided to nearly completely halt such financial aid—and with Europe on the brink of poverty—the Global South might once again hope to reclaim its own intellectual society.

Author: National Award-winning journalist, editor of Sarakhon and The Present World.

 

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