An Africanist Perspective

An Africanist Perspective

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An Africanist Perspective
An Africanist Perspective
Claims about USAID's localization agenda
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Claims about USAID's localization agenda

USAID lacks the capacity to effectively fund and work with local organizations in developing countries

Ken Opalo's avatar
Ken Opalo
Jan 09, 2023
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An Africanist Perspective
An Africanist Perspective
Claims about USAID's localization agenda
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I: Why does the US help others by mostly spending money on itself?

Whether one looks at civilian and security-related foreign assistance, the United States mostly helps others by (over)spending money on itself. Here is Justin Sandefur of CGD (emphasis added):

Foreigners don’t receive much of America’s $35 billion annual foreign aid budget, at least not directly. Less than ten percent goes to local charities, companies, or governments in developing countries. Instead, big American aid contracts tend to go to big American companies and non-governmental organizations (NGOs). The biggest beneficiaries—known in Washington as “beltway bandits”—each win hundreds of millions of dollars in federal awards every year.

Source: Center for Global Development

Most of the cash goes to a concentrated group of awardees. For example, in 2017 60% of USAID funding went to just 25 organizations. According to Devex, “[o]f total contract spending [in 2021], almost $5.4 billion out of $5.5 billion goes to Americ…

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