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Introduction:
The Trump administration has proposed renaming the United States Agency for International Development (USAID) as US International Humanitarian Assistance (IHA) and bringing it directly under the Secretary of State. This decision, discussed by POLITICO earlier, aims to streamline USAID operations and expand its influence in global humanitarian efforts. The memo highlights the administration’s controversial strategy, which seeks to leverage blockchain technology in procurement to enhance transparency and reduce costs.
The Future of USAID:
The memo outlines plans to reorganize USAID to align with the Secretary of State’s authority. Key changes include$:
- Renaming: USAID will be renamed as US International Humanitarian Assistance (IHA).
- Under domination: IHA will become a direct subsystem of the Secretary of State.
This proposal addresses concerns that the former Department of Government Efficiency (DOGE), led by Elon Musk, had previously interfered with USAID’s functionality and authority. The memo discusses internal divisions and morale shifts under Trump, including a staff on administrative leave and prioritized cuts to partner payments.
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Discontinuation: The memo details recent staff actions, with approximately 80% of its workforce on administrative leave and payments cut to 6,613 partnerships. The Department of State has stepped back, though the memo suggests efforts continue to seek a new direction.
- Controversy: A federal judge’s preliminary injunction against the discontinuation has ambiguously defined the administration’s intentions. The memo raises questions about whether the proposed reorganization requires an additional assistant head to lead the changes effectively.
Crucial Considerations:
The memo delves into the technical aspect of the proposed reorganization, mentioning the use of blockchain technology in procurement. While blockchain’s contemplative nature was criticized, the memo highlights the potential benefits of such a system for transparency, efficiency, and accountability.
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Blockchain Usage: The memo discussed the goal of leveraging blockchain to secure and trace aid distributions, though it remains unclear whether cash transfers in cryptocurrency form, for example.
- Alternative Technologies: It also addresses the pros and cons of using other blockchain-based tools, such as stablecoins, to deliver unsurpassed security without the convoluted workflows of traditional credentials.
Products and Practical Applications:
One practical example of innovative blockchain use in the humanitarian sector is the United Nations High Commissioner for Refugees (UNHCR), which recently routed cash assistance to Ukraine tokens that Participants use as stablecoins.
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Injectable Apps: Other pilots include the Kenya Red Cross, which tested a Humanitarian Token Solution (HTS) to distribute emergency supplies without traditional payment methods.
- Diverse Impact: Blockchain technology, while effective in examples, lacks proven advantages over conventional solutions. However, it shows promise across varied humanitarian challenges, encouraging broader adoption.
Limits and Challenges:
Despite these advancements, the memo notes that blockchain’s reach remains limited. The International Committee of the Red Cross and the Office of executives have developed Humanitarian Token Solution (HTS) to demonstrate blockchain’s potential in real-world settings. However, the memo suggests that focus must ensure ethical and legal compliance in its applications.
- Accessibility: Potential implementations must address challenges like finance challenges, human rights, and regulatory frameworks to ensure blockchain’s success in global humanitarian contexts.
This memo reflects the administration’s resolve to expand USAID’s influence, though its decision to simplify operations and streamline aid delivery raises significant questions about accountability and formality. The reorganization underscores the contrast between rhetoric and reality, with the memos suggesting continued efforts to achieve real-world impact.
