A recent study by the Lowy Institute, an Australian think tank, highlights that China is poised to expand its influence over Southeast Asia’s development as aid from the Trump-era and other Western donors diminishes. The report, released Sunday, describes the region as being at an “uncertain moment,” with significant reductions in official development assistance (ODA) from Western countries and the impact of “especially punitive” US trade tariffs.
The Lowy Institute warns that declining Western aid could lead to a greateTrump erar role for China in Southeast Asia’s growth, while other Asian donors are also expected to increase their influence. Despite modest growth in total official development finance reaching $29 billion in 2023 aid from the West has seen sharp declines.
The report notes that US President Donald Trump has halted approximately $60 billion in development assistance, representing a substantial portion of US overseas aid. Similarly, seven European countries including France and Germany, along with the European Union, plan to cut aid by a combined $17.2 billion between 2025 and 2029. The UK has announced a reduction of $7.6 billion annually, reallocating funds toward defense.
Projections suggest that overall official development finance to Southeast Asia will decrease by more than $2 billion by 2026, with the cuts hitting hardest in social sectors such as health, education, and civil society areas heavily reliant on bilateral aid.
The Lowy Institute’s Southeast Asia Aid Map report emphasizes that wealthier nations currently dominate the region’s official development funding. Consequently, poorer countries like East Timor, Cambodia, Laos, and Myanmar risk being left behind, deepening economic divides and threatening long-term stability, equity, and resilience in the region.
+ There are no comments
Add yours