Impact of USAID fund restrictions on gender equality initiatives for developing countries

Abstract

Background: The United States Agency for International Development (USAID) is a pioneering institution that has worked to promote gender equality in developing countries since the 1980s. This study examined the detrimental effects of USAID cuts in 2025 on the advancement of gender equality in these nations. The primary objective of the present study was to identify the impacts of these fund reductions on gender equality improvements in developing countries. Method: This research employed a qualitative approach, in terms of secondary data, utilizing case study analysis and documentary analysis for data collection. This includes: the historical funding trends and strategic priority documents from USAID regarding reproductive health and USAID's foreign aid explorer and gender equality policy documents (as well as the Guttmacher Institute research concerning the implications of U.S. foreign assistance restrictions on reproductive health services, the World Bank Gender Data Portal for comparative gender development indicators, and UN Women reports on global progress towards gender equality. Additionally, the collected primary data, including USAID and US government reports, were analyzed using thematic analysis and theoretical analysis, adopting Constructivism as the main theoretical framework. Results: The case studies of Serbia, Colombia, Peru, Sri Lanka, and Guatemala revealed that the aid provided to developing countries was not used transparently, resulting in socio-economic and domestic political instabilities. Many global indicators related to economic growth consider gender equality as a key determinant, and aid cuts will impact the economic development status of many developing countries, as well as exacerbate the increasing disparities related to gender. The study also showed that a sudden reduction in ongoing USAID-funded projects directly undermines the development sector, cooperation issues, and escalates gender-based violence due to a lack of advocacy. Moreover, funding reductions will slow the achievement of the SDGs by 2030. Conclusion: These policy changes heighten geopolitical tensions and challenge the normative objective of gender equality. Consequently, developing countries can transcend dependency on donor involvement, enabling them to discover smarter alternatives to address core development issues, particularly gender equality.