Both Arlina and Pereira acknowledged that some causes are not as appealing as others when it comes to getting funding from brands, companies or politicians.
For instance, human trafficking is typically “not so attractive, or doesn’t give the PR image that a lot of donors are looking for” compared to, say, sustainability, Pereira said.
Pereira hopes the US reverses its suspension of foreign aid, warning that it could “backfire” on the country’s crucial supply chains if there are not enough labour rights groups safeguarding migrant workers’ welfare.
“It’s not that we are over-dependent (on US aid); it’s just the nature of how the development world works,” he said, calling on Asian and African governments to fill the gap by funding their own civil societies.
HOW FOREIGN AID COULD CHANGE
Pereira and other experts say reforms are needed in the international humanitarian aid system for it to function sustainably in the future.
At the moment, most foreign aid is “sucked up” by United Nations (UN) organisations and regional NGOs, with little trickling down to smaller counterparts on the ground, Pereira highlighted.
The existing system has far too much wastage and too little money reaching small civil society groups, added Rosalia Sciortino, the founder and director of SEA Junction.
“We need to recognise that there was a need to give more to local societies and local organisations,” she told the panel event in Bangkok.
“And all of us as civil society, we need to learn about saving and we need to learn about reducing waste in our spending. So it’s not only the money we get but how we use the money, ensuring it’s used for the sustainability of our organisation.”
John Luke Chua, part of the USAID-funded Asia Counter Trafficking in Persons project, said reform would be difficult in an environment of blanket cuts.
“I’ve heard calls for localisation, more flexible funding and stronger support for grassroots. Instead of that, what we have right now is a sharp rightward turn that prioritises political expediency over evidence-based impact,” he told the panel.
“Funding decisions are no longer driven by whether programmes actually achieve what they set out to achieve, but by whether or not they align with short-term political calculus.”
Sara Piazzano, an independent consultant and project manager, noted greater shifts happening as governments worldwide increasingly reduce their foreign aid budgets and are more willing to offer concessional loans instead.
These types of loans, which reached record highs in value globally in 2023, are usually low- or zero-interest and can be funnelled from governments through specialised programmes and partnerships with international institutions, including multilateral banks.
“Japan is doing that. They shifted almost all the development aid there. China, of course, has always used this approach. Maybe this is the future that we are going to see,” Piazzano said, highlighting that major recipients in Asia include Indonesia, Vietnam and India.
“I was thinking Bangladesh would have a big impact, not having USAID. But actually, if you compare what they are getting from the World Bank, USAID is nothing,” she said.
Data shows Bangladesh’s World Bank financing was five times that of USAID in 2023..
