International Financial Aid and the Myanmar Spring Revolution

Myanmar Spring Chronicle – February 4 Perspective
MoeMaKa, February 5, 2025

International Financial Aid and the Myanmar Spring Revolution

The U.S. government’s international development agency, USAID, is facing budget scrutiny under the new administration of President Trump. The administration, influenced by Elon Musk’s approach, is not only threatening to shut down USAID’s offices but is also targeting the National Endowment for Democracy (NED) along with other global initiatives. The broader trend suggests that Trump’s government is set to challenge one international project after another, potentially disrupting various U.S. global funding programs.

Rather than focusing solely on America’s geopolitical strategies, this article aims to explore the impact of USAID and NED on Myanmar, the Spring Revolution, Myanmar’s civilian population, and civil society organizations.

USAID, established during President John F. Kennedy’s administration, has provided international aid for over six decades. Its programs span humanitarian assistance, human rights advocacy, labor rights, private sector development, agricultural expertise, women’s rights, minority rights, press freedom, and freedom of expression. As a bureaucratic agency, USAID follows complex administrative procedures, often involving multiple intermediary organizations before aid reaches the intended recipients.

Upon assuming office, President Trump signed an executive order to review and potentially cut the U.S. government’s annual international aid budget of over $60 billion. Among USAID’s projects, funding for refugees in Myanmar’s ethnic regions and the Thai-Myanmar border was significant, with $93 million allocated in 2024. However, recent executive orders from Trump and Elon Musk have led to cuts affecting health services, education, and clean water initiatives in refugee camps along the Karenni and Karen State borders.

The Burma Act, part of the U.S. National Security budget, provides non-lethal assistance to the anti-dictatorship movement. While it does not directly support armed resistance, it aids communities involved in the Spring Revolution.

Trump’s policies do not directly impact the armed resistance movement, but they significantly affect communities supporting the revolution, including villages and refugee camps. However, the revolution will not come to a halt due to the suspension of U.S. funding. It continues to receive support from domestic and overseas Myanmar communities, as well as revenue from resource sales and taxation in controlled territories.

Nonetheless, the suspension of aid disproportionately harms vulnerable groups, particularly war refugees and internally displaced persons (IDPs).

USAID, as a large bureaucratic agency, has been criticized for excessive administrative costs, with a significant portion of its budget absorbed by intermediary organizations rather than reaching beneficiaries directly.

Myanmar’s history has seen various forms of foreign involvement in armed struggles. During the Communist Party of Burma (CPB) and military-socialist (MaSaLa) eras, China provided arms and financial support to the CPB. Similarly, during U Nu’s era, the People’s Volunteer Organization (PVO) received indirect funding from Western intermediaries. However, the current Spring Revolution remains distinct, as it lacks direct military aid from foreign governments, aside from certain ethnic armed groups’ ties with China.

While direct foreign military aid could accelerate the revolution, it also risks inviting countermeasures from opposing nations, potentially escalating into a proxy war.

Understanding USAID and NED

USAID is a U.S. government agency that directly manages and distributes government funds. Meanwhile, NED operates as an intermediary, receiving U.S. government funds and redistributing them to foreign organizations and individuals.

NED is a bipartisan organization that does not exclusively align with either the Democratic or Republican parties. However, it provides funding to two associated institutes:

  1. National Democratic Institute (NDI) – linked to the Democratic Party
  2. International Republican Institute (IRI) – linked to the Republican Party

Both NDI and IRI support global democracy-building efforts while maintaining a nonpartisan approach. However, NDI is more aligned with Democratic policies, whereas IRI leans toward Republican viewpoints. Despite these associations, both institutions primarily focus on democracy promotion rather than direct political party influence.

Entities involved in Myanmar’s Spring Revolution may have encountered or collaborated with NDI and IRI, either directly or through intermediary organizations operating under different names.