What we can do to temper the withdrawal of US aid
The dismantling of the U.S. Agency for International Development (USAID) and the ensuing freezing of foreign aid are a cause for serious concern among civil society organizations in Eastern Europe. At a recent meeting hosted by the Center for Liberal Modernity, politicians, representatives of government agencies and private foundations, as well as civil society experts discussed how Germany and Europe should respond to these developments.
The meeting’s key minutes were:
The abrupt reduction in U.S. support poses an existential threat to numerous projects of democratic opposition groups, independent media, and human rights organizations in Eastern Europe. Implications reach far beyond individual programs.
- A severe blow to trust: From an Eastern European perspective, the West (USA and EU) has always been seen as the point of reference in financial and non-material terms. The trust built up over decades is now being seriously undermined.
- Autocracies are poised to fill the vacuum: The poor performance of liberal democracies has emboldened autocratic regimes. They will fill the vacuum left by the West, which in turn would increase the influence of forces supporting autocrats (oligarchs, mafia-like structures etc).
- The erosion of value-based politics: The mindset that the strongest are important and respected for their power, that everything is transactional so that legitimacy, respectability and influence can be bought, undermines the rules-based order. This creates uncertainty and is extremely dangerous.
Our response to the DOGE cuts must be both political (to rebuild trust) and financial.
- Democratic governments need to take a clearer stance towards autocrats. In terms of realpolitik, we obviously have to talk to them, but this must not translate into a “kiss and smile” approach. Our priority should be to engage with and support democratic civil societies within these countries.
- There was controversy over the extent to which the donor community should pursue democracy promotion as a goal. Some participants argued that in the face of democratic backsliding around the world, they are no longer talking about promoting democracy, but about strengthening democratic resilience. However, a majority of participants, argued that although democracies are currently on the defensive, both strengthening democratic resilience in functioning democracies and promoting liberal democracy in autocracies should be pursued, even if we cannot expect quick success.
- Strengthening democratic resilience/democracy promotion in the region should become part of our security policy and security spending. Security is not just about military strength but also about sustainable peace. Ukraine’s ability to prevail as a sovereign and democratic nation is absolutely crucial for the future of democracy in the region.
- Faced with the double challenge of Russian aggression and U.S. withdrawal, Europe must step up initiative and donor cooperation, even if a complete replacement of U.S. funds is not possible. Given limited financial resources and numerous competing priorities, effectiveness could be maximized through:
- Engaging more private donors to broaden the funding base and ensure sustainability.
- Enhancing donor coordination to leverage synergies and align efforts more effectively. Germany, as one of the main donors supporting civil society in the region, should play an active role in this process and closely coordinate efforts with other engaged European countries such as Sweden, UK and Norway.
- Focusing on each donor’s unique strengths to increase impact and avoid duplication.
Reducing bureaucratic barriers and placing greater trust in local partners to enable flexible, need-based support.
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