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USAID closure prompts calls for aid sector structural reform

The recent closure of USAID has led a development specialist to argue that the broader aid sector should focus on structural reform rather than public relations.

  • USAID's closure was abrupt, according to Monica Kappiantari.
  • Aid money often passes through a multi-layered supply chain, incurring administrative costs.
  • Project success in the aid sector is frequently measured by outputs like workshop attendance, rather than long-term systemic impact.

Following the abrupt closure of USAID, Monica Kappiantari, a development specialist based in Jakarta, Indonesia, has suggested that the broader aid sector should prioritise structural reform. Kappiantari argues that the primary issue was not USAID's communication, but rather the underlying architecture of aid delivery.

Kappiantari highlights that aid money often moves through a complex supply chain, involving prime contractors, international, and local NGOs, with administrative costs at each stage. She also notes that project success is frequently assessed by easily quantifiable outputs, such as workshop attendance, instead of long-term systemic impact. Furthermore, Kappiantari suggests that aid workers, including local consultants, may benefit from project extensions, creating incentives to prolong processes.

In her view, the real lesson for the aid sector is to concentrate on shortening the supply chain, directly funding local actors, measuring genuine outcomes, and rewarding work that achieves completion. This approach, she suggests, is already adopted by some Nordic donors.

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