Rebranding USAID: The Proposed Shift to US International Humanitarian Assistance
The Trump administration is reportedly set to rename the United States Agency for International Development (USAID) to the US International Humanitarian Assistance (IHA). A recent memo circulated among State Department personnel reveals that this rebranding will bring the agency directly under the purview of the Secretary of State. The plan aims to remodel the agency’s operations significantly.
Proposed Changes to Agency Structure
As outlined in a memo shared with WIRED and first reported by Politico, a significant aspect of this overhaul includes integrating blockchain technology into the agency’s procurement processes. The memo emphasizes that blockchain will be utilized to enhance security, transparency, and traceability of aid distributions. It asserts that this innovative approach is designed to foster a more efficient environment for program implementation, shifting the focus onto meaningful outcomes rather than merely fulfilling procedural requirements.
Concerns and Ambiguities Regarding Blockchain Use
While the memo presents an optimistic view of blockchain integration, it notably lacks clarity on specific applications. Questions remain regarding whether this integration will involve using cryptocurrency for cash transfers or simply employing a blockchain ledger for tracking funding disbursements.
As staff members at USAID navigate the uncertainty surrounding their roles, the agency has already faced drastic changes under the so-called Department of Government Efficiency (DOGE), led by Elon Musk. Since Trump’s inauguration, the agency’s operations were heavily restricted, with staff placed on administrative leave and funding to various partner organizations halted. Despite a federal judge’s recent injunction against dismantling the agency, the memo suggests a continuation of plans to streamline USAID’s operations within the State Department.
Mixed Responses from Experts on Blockchain’s Viability
The skepticism surrounding blockchain technology in humanitarian efforts is palpable among experts. Linda Raftree, a technology consultant for humanitarian organizations, argues that many blockchain projects in this sector have not demonstrated significant advantages over traditional methods. “It feels like a fake technological solution for a problem that doesn’t exist,” she states, indicating that existing tools may often suffice.
Giulio Coppi, a senior officer at Access Now, echoes Raftree’s sentiment, suggesting that blockchain offers no notable cost or efficiency benefits compared to other systems. He points to a recurring pattern where technology solutions promise more than they deliver, reiterating that the real-world impact of such tools might be minimal.
Successful Examples of Blockchain in Humanitarian Aid
Despite the skepticism, there have been limited successful applications of blockchain technology in humanitarian contexts. Notably, in 2022, the United Nations High Commissioner for Refugees (UNHCR) piloted a blockchain initiative that provided cash assistance to Ukrainians displaced by the Russia-Ukraine conflict, utilizing a stablecoin. Similarly, pilot projects have been conducted by organizations such as the Kenya Red Cross Society, demonstrating the potential for blockchain in some specific scenarios.
Efforts like these illustrate that, while blockchain technology holds promise, its broad implementation in humanitarian aid may still require careful consideration and validation before widespread adoption.