Proposed Changes to USAID: Blockchain and Organizational Structure
Recent developments have emerged concerning the United States Agency for International Development (USAID), which is reportedly undergoing a significant transformation under the Trump administration. According to a memo reviewed by WIRED, the agency is expected to be renamed to the U.S. International Humanitarian Assistance (IHA) and will be directly managed by the Secretary of State.
Integration of Blockchain Technology
The proposed changes include incorporating blockchain technology into the agency’s procurement processes. According to the memo, this technology could enhance security, transparency, and traceability of aid transactions. The memo states:
“All distributions would also be secured and traced via blockchain technology to radically increase security, transparency, and traceability.”
Concerns Among Staffers
As these plans continue to unfold, USAID employees are left to navigate an uncertain future. This development follows the earlier efforts of the Department of Government Efficiency (DOGE), associated with Elon Musk, to streamline government operations. Notably, shortly after the Trump administration’s commencement, USAID experienced substantial workforce reductions and the delay of critical funding for international partners engaged in essential humanitarian work.
Impacts and Considerations
The memo raises questions regarding the practical application of blockchain within USAID’s operations. There is currently no clarity on whether the agency intends to implement cash transfers through cryptocurrencies or simply utilize blockchain for tracking purposes. Experts in the humanitarian field express skepticism regarding the necessity of blockchain for aid distribution.
Critique of Blockchain Usage
Linda Raftree, a consultant specializing in technology adoption for humanitarian groups, argues that blockchain often presents itself as a technological solution to non-existent problems. She asserts:
“It feels like a fake technological solution for a problem that doesn’t exist.”
Giulio Coppi, a senior humanitarian officer at Access Now, concurs that there are no evident advantages of blockchain over existing aid distribution tools. He states, “There’s no proven advantage that it’s cheaper or better,” emphasizing the disconnection between tech proposals and practical realities.
Successful Instances of Blockchain in Humanitarian Efforts
Despite the skepticism, there have been successful applications of blockchain technology in humanitarian contexts. Notable among these is the 2022 pilot project by the United Nations High Commissioner for Refugees (UNHCR), which utilized stablecoin for cash assistance to displaced Ukrainians. Additionally, pilots have been executed in Kenya by the Red Cross, highlighting the potential of blockchain in certain scenarios.
Conclusion
The proposed restructuring and modernization of USAID through the incorporation of blockchain technology bring both potential benefits and concerns. As the agency transitions, it will be crucial to assess the practicality and effectiveness of these innovations in enhancing humanitarian assistance globally.
