United States of America
North America
White Paper
2025
United States of America
North America
Technical Guidance Document
2025
U.S. foreign assistance agencies have the potential to transform how they engage with the private sector, fostering partnerships that drive sustainable development. This white paper explores the structural barriers that have hindered effective collaboration and presents a bold rethinking of private sector engagement in U.S. foreign aid. Drawing on I4DI’s extensive experience in evaluating and facilitating public-private partnerships, the paper advocates for a shift from rigid, bureaucratic processes to an investment-driven approach that aligns with private sector needs. Key recommendations include modernizing financial instruments, decentralizing decision-making, and introducing measurable success metrics to unlock greater private sector participation. By embedding businesses as core partners rather than peripheral contributors, U.S. foreign assistance can become more agile, impactful, and investment-oriented.
This infographic analyzes the consequences of USAID’s 2023–2024 restructuring, which led to the termination of 5,341 projects and the defunding of 2,353 implementing partners, many of whom lost 100% of their USAID support. Over 55% of recipient countries lost all funding. The analysis extends beyond the U.S. to consider concurrent budget contractions by other donor countries, indicating a systemic shift in how foreign aid is prioritized and delivered. The infographic visualizes these changes, offering insights into the scale, distribution, and potential implications of a more constrained and transactional development aid environment.
This article examines the Trump administration’s proposed restructuring of U.S. foreign assistance, which seeks to streamline agencies and align aid with investment-driven growth. The plan introduces promising steps to improve efficiency and expand opportunities for U.S. businesses abroad. However, the transition also brings important considerations, such as ensuring continued access to technical expertise, maintaining regional flexibility, and supporting financing tools that encourage investment in higher-risk markets. The piece outlines ways to maximize the benefits of these reforms while addressing potential challenges to ensure the new structure drives sustainable growth and impact.
