The new Trump administration has created unprecedented chaos with its attempt to eliminate or dramatically revamp the United States Agency for International Development (USAID).

The ultimate fate of the world’s largest foreign aid donor is tied up in U.S. courts but its vital work has come to an immediate halt with agency workers locked out of their buildings.

The aid coalition Cooperation Canada says millions of people are being abruptly cut off from lifesaving supplies and many international projects that Canada partly funds are being halted.

“The impact of this is catastrophic for thousands and likely millions of people around the world,” Cooperation Canada CEO Kate Higgins told CTV News. “It forces Canada and Canadians to think about what sort of country we want to be.”

Canada is recognized as a bastion of democracy and stability. Trump’s 90-day freeze on USAID spending and his stated desire to align future outlays more with U.S. foreign policy mean that Canada now has a key opportunity to take a global leadership role in strengthening democracy, human rights and governance worldwide.

Aligning development assistance to Canadian-led democracy-focused initiatives is essential to move into a greater leadership role, but Canada must also continue to collaborate with other developed democracies to champion representative governance and promote human rights.

As a middle power, Canada has historically recognized the importance of a multilateral approach and at key moments – for example the de-escalation of the 1956 Suez Crisis or the international campaign to ban landmines – our nation has stepped into a global leadership role.

Additionally, while our strong democracy is what positions us to lead internationally, it’s important to recognize the continued internal work required to maintain a robust and stable democracy in Canada. Our international efforts will be well received only if we continue to lead by example.

China and Russia will fill the vacuum

If Canada and other developed democracies don’t act, China and Russia may continue their expansionist efforts into countries once on a positive path toward democracy.

USAID funds billions of essential programs assisting people impacted by increasing global conflicts and environmental disasters.

It also allocates spending to support democratic development in a range of ways, such as countering extremism, mitigating conflicts, protecting human rights, promoting free and fair elections, and strengthening governance, institutions and the rule of law.

USAID-supported efforts have helped many countries fight the worldwide democratic decline of the past decade. In particular, it has supported developing democracies from Montenegro to Georgia, Pakistan, Haiti, Algeria and Tanzania.

Support for democratic development can lead to greater trust in institutions, improved government service delivery, increased access to independent media and positive economic impact.

Withdrawing aid, even temporarily, creates a vacuum for dictators to exploit, undermining U.S. influence and soft power, particularly in developing nations.

This extremely concerning move by the new Trump administration will require other leading democracies to step up. As Canadians, we often point to our long-standing commitment to human rights and democracy assistance.

Following last year’s third Summit for Democracy, the Prime Minister’s Office announced $30 million for democratic development initiatives, with more than half of the funding allocated to international organizations.

These include the Westminster Foundation for Democracy, the International Institution for Democracy and Election Assistance (IDEA), the Organization of American States and the Organization for Security and Co-operation in Europe’s office for democratic institutions and human rights – all of which have either limited or no presence in Canada.

The Canadian entity to receive the most funding was the International Development Research Centre, an organization created by an act of Parliament and reporting to the minister of international development. The centre supports a wide range of international development-focused programs.

The only Canadian NGO identified in the funding announcement was the Halifax-based Centre for Law and Democracy (allocated $270,000).

Canada needs more democracy and governance initiatives

One reason why little funding went to Canadian-led NGO programs is because Canada has no large-scale NGO presence in the democratic development and governance space. The Ottawa-based Parliamentary Centre, an organization with the mission to strengthen democracies around the world, was notably absent from the funding.

While there are many Canadians leading democracy-building initiatives overseas, they do so for organizations such as the National Democratic Institute, the International Republican Institute, the Carter Center, the McCain Institute and the International Foundation for Electoral Systems – all based in the U.S. – as well as the Westminster Foundation and International IDEA.

In 2019, the Commons foreign affairs committee presented the report Renewing Canada’s Role in International Support for Democratic Development, which called on the government to increase support for democratic development and create an independent organization committed to advancing global democracy-focused work.

In addition, the mandate letter of Foreign Affairs Minister Mélanie Joly points to advancing support for democracy and human rights as a core priority. The letter prioritized a call to increase Canada’s diplomatic presence in regions viewed as strategically important while also moving with speed and flexibility on efforts dedicated to emerging democracies.

However, the committee’s recommendation and minister’s mandate have yet to yield tangible progress.

With USAID in disarray and democracy on the decline in many countries, the urgency for developed countries such as Canada to create and deliver a leadership strategy is clear. Recognizing the urgency of this moment is crucial to preventing a global democratic decline.