The move aims to fulfil America First agenda and to promote the moral imperative on reviewing and realigning foreign assistance on behalf of taxpayers. 

About Foreign Aid

• It refers to the voluntary movement of money or other resources from one nation to another, mostly from developed countries to developing countries. 

Various Types of Foreign Aid

• Bilateral Assistance: To ensure welfare of poor countries.
• Multilateral Assistance: Towards multilateral Institutions like United Nations agencies, etc. 
• Humanitarian Assistance: For relief from natural and human-induced disasters. 
• Economic Assistance: Through loans, grants, Official Development Assistance (ODA), etc. 
• Security Assistance: For facilitating military contracts, etc. 

Need for Richer Nations to Offer Aid

• Obligations of Humanity and Morality: To relieve human suffering or distress amidst rising inequalities, irrespective of state boundaries. 
• Ensuring Corrective Justice: Developed countries have a moral obligation to transfer resources to developing countries to rectify past wrongs. 
  • Example, the Concept of Common But Differentiated Responsibilities in climate negotiations. 
• Ensuring Distributive Justice: Promoting social cooperation at the level of global community. 
  • Example, Globalisation and economic interdependence requires sharing of benefits. 

Key Ethical issues Involved in Foreign Aid

• Motive for Aid: Whether the aid is given for humanitarian, out of a sense of global responsibility or self-interest. E.g., Clinical trials in developing countries. 
• Effect of Aid: Whether the aid is intended at reducing poverty or promoting political interest. E.g., China’s Debt Trap Diplomacy.