Eritrea’s self-reliance model from 2005 serves as a precursor for other African nations facing shrinking aid from the West, particularly under the Trump administration. Experts emphasize the necessity for Africa to enhance trade and investment to sustain development in the absence of foreign assistance. Calls for strategic planning and transitional funding aim to address critical sectors heavily reliant on dwindling international aid.
Eritrea’s shift towards self-reliance in 2005, when it expelled USAID and other agencies, has become a blueprint for other African nations facing dwindling international aid. With increased cuts from U.S. assistance, particularly under the Trump administration, many African nations encounter significant challenges in healthcare and security, as over a quarter of development assistance is at stake. Experts propose that African countries must enhance trade, investment, and regional self-sufficiency to navigate a future largely devoid of aid.
Isaias Afewerki, Eritrea’s long-time leader, emphasized the need for self-sufficiency by stating, “If you need something and no one is giving it to you, you struggle even harder to do it on your own.” Two decades later, as U.S. foreign aid programs face substantial cuts, African nations will need to adopt similar strategies. Although the reduction in aid risks elevating poverty and health crises, some leaders recognize a potential benefit in enhancing local capacities.
Ngozi Okonjo-Iweala, director-general of the World Trade Organization, advocates for more strategic use of the limited remaining aid and foresees a necessity for African nations to take greater responsibility for their healthcare systems. She proposed transitional funding to assist countries in adjusting their budgets accordingly to mitigate the impacts of diminishing aid.
The commitment of Western nations to aid has already been declining, emphasized by the pandemic and geopolitical tensions. Donald Trump significantly impacted this trend with his review of foreign assistance, resulting in the permanent cessation of 83% of USAID programs. Eritrea demonstrated success in development outcomes despite receiving no U.S. aid, raising questions about dependency on foreign assistance.
Eritrea’s avoidance of structural dependency allowed some resilience, allowing it to maintain comparable development levels relative to its aid-receiving neighbors. In contrast, other African countries are grappling with the aftermath of aid cuts, like Kenya and Sierra Leone, where healthcare and education systems suffer from loss of funding. Many nations might be pushed to eliminate non-essential projects, reinforcing a crucial need for adapting to these new economic realities.
Despite external shocks affecting Africa’s economy, such as inflation and declining foreign investments, experts call for a focus on intra-African trade and investment. Donald Kaberuka, former African Development Bank president, suggests that improving trade relations within Africa could foster local growth. Simultaneously, some U.S. philanthropic institutions are stepping in with gap funding to ease the transition.
The potential reduction of aid to concessional lenders could adversely affect low-income countries that heavily rely on foreign assistance for their budgets. Zainab Usman from the Carnegie Endowment highlights the disparity this creates, suggesting that middle-income nations may have an opportunity to lessen their reliance on aid as a means to improve resource management.
Overall, as Africa faces a significant recalibration in its approach to development funding, a firm commitment to trade expansion and investment could pave the way for economic resilience and community empowerment.
In summary, African nations are increasingly being compelled to adopt self-sufficiency in the wake of diminishing international aid. Eritrea’s early rejection of foreign assistance serves as a model, inspiring other countries to focus on intra-African trade, investment, and local capacity building. Experts stress the importance of transitioning towards strategic use of remaining resources and seek alternative funding sources to address critical sectors such as healthcare and education. The future of African development lies in its ability to adapt and thrive independently amidst external challenges.
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