Aude Darnal: "We must take advantage of the USAID disaster to completely reform the international aid system."

BarcelonaAude Darnal, program researcher The Global South in the world order from the Stimson Center in Washington, was in Barcelona to participate in the debate Divergences and convergences: Are different forms of relationship between Europe, the US, and the Global South possible?, organized by the Macaya Palace of the La Caixa Foundation.

How is the Global South repositioning itself in the face of the new world order promoted by Donald Trump?

— The Trump administration brings many changes, but also a certain continuity with the previous Biden administration: neither advocates for reforming the financial architecture and the global governance system. How the Global South adapts will depend on each country and region. Some, like Milei's Argentina, align with Trump, and his far right in the Americas and Europe also benefits. One argument I've heard a lot [in the Global South] is that Trump is seen as more direct and clear-headed, rather than saying one thing and doing another. Most of these countries are facing the climate crisis, the debt crisis, the energy crisis, and want to move beyond geopolitical tensions. And so I think they will opt for pragmatism.

Has it affected you? the dismantling of USAID and the suspension of humanitarian aid from the United States?

— Yes, it has had a very dramatic impact on the populations that need that help to survive. We have an international AIDS economy that has been formed around this humanitarian aid. And in many places, populations are extremely dependent. I personally believe this should be a time for a true review of the entire international aid model, to break this dependency and seek bottom-up solutions. We have local actors, local civil society, governments, and the private sector in countries of the Global South, and we need to see how we can move toward a solidarity system that truly supports self-sufficiency. Today, only 1.2% of aid goes to fund local NGOs; that is, 99% goes directly to international NGOs.

Some experts say that China will step in and fill the void left by USAID.

— No, China won't fill USAID's void. China won't offer international assistance because that's not its strategy. But they'll likely find a way to present themselves as a good partner for these countries to invest in other areas. And in the Global South, China is often seen as a more reliable partner because it does what it says it can. The dismantling of USAID also demonstrates that the US is not a reliable partner, so this will only benefit the Chinese.

What could the US rapprochement with Russia represent?

— It's still early to see if there really is an alignment with Russia; we'll see in the coming months. What I'm interested in seeing is how it will evolve with respect to the BRICS. Many countries in the Global South saw the BRICS as a platform to advance their interests and push their agenda. It's a place where they can discuss things outside of the main multilateral organizations, where they don't have a place, such as the IMF, the World Bank, and the G-20. Russia and China have been pushing for de-dollarization. And that's why I wonder if an agreement between Trump and Putin on Ukraine could cede Ukrainian ground to Putin in exchange for him stopping his push for de-dollarization.

China and India are vying for leadership in the Global South. What do you think about this competition?

— I don't consider China to be part of the Global South because it has become a major power and should have more quotas and greater voting power in the IMF. There are many actors trying to take the lead, but that doesn't mean they are recognized as such. India, South Africa, and even Barbados can be leaders; Prime Minister Mia Mottley has done a lot for climate finance and has tried to push for reform of the international financial architecture.

What role can Europe play in the Global South?

— The international system hasn't been working for a long time. There are countries that have been fighting for greater equity since the days of decolonization. Europe has larger quotas in the IMF than the United States, and therefore European countries could push for its reform. I know that right now they see the whole Russia issue as an existential crisis, but Europe can't just retreat inward. European countries have weight and a voice in these institutions. And I believe there is an opportunity for them to push for progress toward a more egalitarian system based on solidarity.

What reform do you advocate in these global institutions?

— There are several layers to the reform of the IMF and the World Bank—two major international financing institutions for sustainable development and climate action. One is the governance of these institutions: quotas in the IMF and participation in the World Bank, which determine the decision-making power of each party, are linked to the economic contribution of each state. But there are small countries that will never have as much economic power as France, Germany, or India. Does this mean they will never have a voice? We must go beyond conventional thinking and seek other ways of working. Another layer is how we deal with external debt and international taxation to have more money for sustainable development and climate transition in the Global South. And there is the technical layer of the employees of these global organizations: how we ensure there are more staff, economists, and analysts from countries in the Global South.

A new way of conceiving North-South relations.

— Yes. Now Trump is threatening Mexico, Panama, Canada, and Europe. But Joe Biden also used that policy of coercion with other countries. We need to end this type of coercive power and move toward equal collaboration, away from extractive partnerships. Right now, the green transition is about extracting critical minerals from Africa, Latin America, and Asia. We must ensure that countries in the South don't just export raw materials and benefit from them for their economies, environments, and communities. It's about thinking about the world order we want for tomorrow, one that is truly beneficial for everyone. And this is the only way to ensure that people don't want to flee their countries of origin. European governments must understand that the only way to curb immigration is to ensure we have an international system that works for everyone.