In a surprising move, the sudden halt on USAID funding by the U.S. administration has left several non-governmental organizations in the Western Balkans reeling. These organizations, which heavily rely on financial support from the U.S. Agency for International Development, primarily function to uplift marginalized communities and implement critical reforms across various sectors, including governance, justice, and environmental policies.
Historically, USAID has played a significant role in the region, particularly in Kosovo. Since 1999, over $2 billion has been funneled into the region, aiding economic growth initiatives and supporting Kosovo’s path towards integration with European and Euro-Atlantic institutions.
The abrupt freeze affected numerous programs, halting progress in key areas. According to Blendi Hasaj of the GAP Institute, around 18 projects amounting to $162 million have been paused, severely impacting public institutions involved in essential operations like taxation and procurement.
Ariana Qosaj Mustafa, chair of the Kosovo Women’s Network, expressed concerns about the impact on grassroots organizations. The network, representing about 140 NGOs, relies on U.S. aid for projects centered around women's rights, economic empowerment, and property rights. The funding stoppage could hinder progress in a region where financial insecurities threaten stability and exacerbate existing societal tensions.
The funding freeze notably affects programs focused on gender and diversity, sparking concerns over increased instability in Kosovo's conservative society. Given the halted progress, there is an urgent need for alternative sources of support. Mustafa emphasized that the halt sends a crucial signal to the European Union, urging it to step up its support, both financially and strategically.
This development also underscores the fragile state of Kosovo-Serbia relations. Despite efforts by the EU and the U.S. to normalize tensions after the 1998-1999 conflict, which led to Kosovo's independence in 2008, diplomatic progress remains sluggish.
Milorad Dodik, a prominent figure in Bosnia’s political landscape, endorsed the aid suspension, criticizing U.S. foreign assistance as a tool for undue influence. Conversely, Emina Bosnjak from the Sarajevo Open Center highlighted the negative ramifications for marginalized communities, suggesting that the absence of U.S. support may embolden regressive narratives against human rights and democracy.
The European Commission is closely monitoring the impact of USAID's funding freeze. Their response will likely hinge on the scope and focus of future U.S. involvement in the region. The outcome remains uncertain, but the potential for increased EU support could help mitigate the adverse effects currently feared by many stakeholders.
