Beyond the Aid Illusion: Time for the Global South to Cut the Cord by Abbas Hashemite!
(2025-05-17 at 21:40:47 )

Beyond the Aid Illusion: Time for the Global South to Cut the Cord by Abbas Hashemite!

With the imposition of trade tariffs on all United States trade partners and the suspension of the USAID program by the Trump administration, the need for third-world countries to break free from the shackles of neo-imperialism has resurfaced.

Beyond the Aid Illusion: Time for the Global South to Cut the Cord

Foreign Aid or Foreign Control?

The United States established the USAID program in 1961, under the presidency of John F. Kennedy, through the Foreign Assistance Act. This program, started under the veneer of assistance to developing countries, was intended to gain influence over third-world countries. The USAID program provided significant political and diplomatic leverage to the United States. However, it proved detrimental for the recipient nations, making them dependent on the United States and coercing them to follow the diktats of United States leaders.

The contemporary international economic crisis is an alarm bell for the leaders of developing and underdeveloped countries to think about the transformation of their nations

In 2024, the United States disbursed approximately $41 bn in foreign assistance. This aid helped the Global South to finance various sectors, including healthcare and education. However, the suspension of the United States aid program once again demands that third-world countries realize that their dependence on this financial aid is merely a choice, not a necessity. They also need to recognize that the United States has long been exploiting these countries to achieve its regional ambitions.

The Price of Partnership

Pakistan was lured by USAID to join the United States bloc in the Cold War and assist the United States in the so-called War on Terror. Pakistan has received a total of $32 billion in terms of the USAID. However, the country has suffered an economic loss of more than $130 billion due to terrorism since 2001. It possesses one of the worlds largest gold and copper reserves in Reko Diq. However, the country is unable to extract this gold and copper due to a lack of equipment and the vested interests of its corrupt political elite. The United States covert interference in Pakistans electoral process and subsequent election of corrupt politicians have barred the country from utilizing the potential of Reko Diq and other mineral deposits in the country. A Canadian mining company, Barrick Gold Corporation, is given the contract to extract these minerals.

Pakistan is also forced by the United States to buy expensive fuel from international markets, despite offers of much cheaper fuel from Russia and Iran. Afghanistan has also suffered huge economic, infrastructural, and humanitarian losses due to the United States War on Terror and the ensuing corrupt and puppet government, backed by the United States, during this period. Washington,D.C. provided $73 billion in United States aid to Kabul from 2001 to 2020. However, the losses suffered by the nation are far beyond this amount. The immature and hasty withdrawal of the United States troops from Afghanistan led to the Taliban government, increasing polarization in the country.

The African continent has also faced similar consequences of its dependence on United States aid. Africa is home to the worlds largest reserves of precious minerals that are rudimentary to empower the future. The Democratic of the Congo supplies around 70 percent of global cobalt, an essential component in electric vehicle batteries. 75 percent of the total platinum and 50 percent of the worlds total palladium is produced in South Africa. Madagascar and Mozambique are home to some of the largest deposits of graphite in the world. Zimbabwe possesses the largest cesium, a significant metal for manufacturing GPS and 5G systems.

African countries are compelled to sell these raw minerals at a cheaper rate, effectively serving as colonial vessels for the Western world. They are forced to beg for aid from the very nations that are profiting from their resources. The regions mineral reserves offer a significant opportunity for the prosperity of these countries. However, West-backed leaders and insurgencies have long barred the region from harnessing this potential. Many pseudo-analysts propose that third-world countries lack the resources, equipment, and infrastructure to process or extract their minerals.

A Path Forward: From Dependency to Self-Reliance

Third-world countries indeed lack the resources to extract and process their minerals. However, given the rising uncertainty in the evolving world order, the developing world must reorient its priorities. It is high time for the global south to break the shackles of neo-imperialism by the West and invest in research and development, and infrastructure building. They must invest in their mineral resources and build processing facilities instead of solely focusing on the exportation of raw materials. They need to build sustainable extraction and processing facilities that align with their environmental goals while strengthening their economies.

The Global South, especially African nations, must adopt a regional approach. Multilateral regional frameworks can lead to the stabilization and prosperity of the whole region. However, this is only possible through political will. Unfortunately, most of the third-world countries are ruled by a corrupt political elite. Such political leaders never look beyond the next election. The contemporary international economic crisis is an alarm bell for the leaders of developing and under-developed countries to think about the transformation of their nations. Domestic processing of the mineral resources can earn them much more money than United States aid, making them truly independent and helping them build a sustainable economy.

Abbas Hashemite - is a political observer and research analyst for regional and global geopolitical issues. He is currently working as an independent researcher and journalist

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