TLDR
- As part of the restructuring, USAID is set to be transformed into a new entity, US International Humanitarian Assistance (IHA), operating under the State Department.
- A key part of this restructuring is the incorporation of blockchain technology to meticulously track how aid is distributed.
- In a sweeping move, numerous USAID employees have been put on leave, leading to the cancellation of many international aid contracts.
- There is skepticism among experts about the adoption of blockchain, with many arguing existing systems could suffice.
- Focusing on critical areas such as global health and disaster response, the plan aims directly at counteracting China’s influence.
The Trump administration has announced a landmark reorganization of USAID, which includes renaming it, overseeing it directly through the State Department, and utilizing blockchain to monitor aid distribution.
An internal State Department communication reveals intentions to rename the agency as US IHA, in line with widespread reforms. memo reviewed by WIRED, The communication specifies that blockchain will be used in procurement processes, enhancing security and transparency of aid distributions.
By leveraging this technology, the plan seeks to foster partner innovation and aim for tangible results rather than just task completion.
There's ambiguity around the specific blockchain implementation, including whether it involves using cryptocurrencies or simply as a tracking ledger.
The announcement arrives amid major disruptions at USAID, following a staff leave and suspension of global partner payments shortly after Trump took office.
The agency, now a target of DOGE, led by Elon Musk, has been exploring the potential of blockchain to streamline multiple U.S. government operations.
With thousands of employees sent home, most foreign aid programs ceased, resulting in significant uncertainty among those involved.
Agency Workforce Reduction
Contracts considered nonessential were cut, including those supporting vital services in various world regions.
A federal judge intervened to pause the agency's dismantling, though the administration's memo indicates ongoing plans to integrate USAID into the State Department.
Blockchain integration has caught many off guard, with humanitarian experts questioning its necessity.
Consultant Linda Raftree voices her doubts on blockchain, calling it an unnecessary technological fix.
Raftree emphasizes a lack of demonstrated benefits of blockchain over existing tools in her experience.
Sharing similar sentiments, Giulio Coppi of Access Now critiques the approach as overly reliant on unproven technological solutions.
Despite critiques, blockchain has seen limited use, such as in a UN pilot with stablecoins for Ukrainian refugees.
Kenya Red Cross Society and Red Cross have piloted similar blockchain initiatives, exploring new solutions in aid.
An unnamed NGO representative highlights the potential benefits and challenges of using blockchain in disaster-stricken areas.
Suggesting a shift in funding structure, the proposal advocates tying aid payments to achieved outcomes rather than just inputs.
Some USAID staff note that numerous contracts already adhere to performance-based payouts rather than upfront funding.
A concerned USAID employee anonymously points out that such outcome-focused agreements may not suit dynamic work environments.
Trump's administration aims to align USAID efforts with U.S. priorities like health, security, and counteracting China's influence.
The proposal criticizes current programs as spread too thin, lacking focus and delivering mediocre results.
Future aid programs will have clear deadlines and be assessed against predetermined success metrics under the new plan.
Elon Musk's exploration of blockchain for government functions includes refining expenses tracking and data security.
This effort could usher in a massive government blockchain project, aiming for cost savings and transparency.
Maisie, a seasoned journalist in crypto and finance, contributes her expertise to several reputable publications.
