WASHINGTON — The Trump administration is pushing an international campaign to replace traditional foreign assistance with private sector investment, drawing sharp criticism from United Nations officials and former diplomats who warn the approach could harm the world’s most vulnerable people.
Secretary of State Marco Rubio has directed American diplomats worldwide to secure support for the “Trade Over Aid Initiative” from foreign government leaders by Monday, according to a diplomatic message obtained by The Associated Press. The proposal will be officially presented at the UN by the end of April.
The administration’s plan encourages UN member countries to implement business-friendly changes to their assistance programs by fostering dialogue between governments, private companies and international groups. The initiative promotes free-market policies designed to attract foreign investment, including minimal regulations, reduced taxes, diverse energy options, protection of private property, contract enforcement and reliable court systems.
“The idea that trade and free market capitalism is the surest path to prosperity has been proven by the facts and by history,” State Department spokesman Tommy Pigott said. “The U.S. remains the most generous country in the history of the world, but those arguing for ‘aid not trade’ are really arguing for lining the pockets of a corrupt NGO industrial complex.”
While countries wouldn’t be legally bound by signing onto the proposal, their participation would signal international sentiment on global aid challenges as major donors including the United States and United Kingdom have reduced humanitarian funding while boosting military spending.
UN officials and international organizations view this latest development as another step away from established aid systems during a time of escalating global conflicts, potentially opening doors for exploitation by profit-seeking corporations.
UN spokesperson Stephane Dujarric emphasized the organization’s commitment to achieving its sustainable development goals by 2030, which encompass eliminating poverty, promoting gender equality and addressing climate change urgently.
“For us, trade, investment, and private sector engagement can be powerful drivers of inclusive growth and job creation,” Dujarric told AP. “They should, however, not be used to substitute international development cooperation or for principled humanitarian assistance.”
Eric Pelofsky, a former State Department official under Presidents Obama and Bush who now works at the Rockefeller Foundation, strongly condemned the initiative.
“There’s no American who looks at a picture of a starving child and sees an opportunity for companies to enrich themselves,” Pelofsky stated. “That’s because Americans have historically run to the fire to help rather than looking for ways to sell fire hoses to those suffering. This approach betrays America’s traditions, values, and national security interests — and it makes us less safe.”
This initiative continues the Trump administration’s pattern of withdrawing from international cooperative organizations since taking office in January 2025. The administration has halted support for the World Health Organization, UN Human Rights Council and UNESCO, while also eliminating the U.S. Agency for International Development.
The administration now takes a selective approach to UN funding, choosing to support only operations and agencies that align with Trump’s priorities while avoiding those deemed contrary to American interests.
In December, American officials committed $2 billion for UN humanitarian programs — significantly less than previous contributions but still maintaining the country’s position as the world’s largest humanitarian donor, according to the administration.
