By Crishelle Mae Queen Calo, John Kenit Manondo and Lovely Jean Jorge, 3rd-year Political Science students at University of San Jose-Recoletos
In early 2025, the Trump administration’s foreign aid freeze, driven largely by the “America
First” policy and budgetary concerns, affected numerous countries. However, the Philippines, along with Taiwan, received an aid freeze exemption. At first glance, the exemption might simply look like an act of goodwill, but there’s a complex and deeper explanation if we look at this through the lens of Dependency Theory.
This theory proposes that advanced nations continue to flourish at the expense of underdeveloped nations. Using Dependency Theory, we may argue that aid from wealthy nations to underdeveloped ones is often an instrument in maintaining existing power structures and economic dependencies, rather than being solely charitable. In this context, the Philippines’ strategic location in Southeast Asia and its longstanding ties with the US made it too important to be disregarded, especially with the growing influence of China in the region (e.g., China’s status as Asean’s largest trading partner,economic influence through the Belt and Road Initiative and its assertive stance in the South China Sea).
While the United States has exempted its security assistance to the Philippines from its pause on global foreign aid, the exemption is specifically for modernizing Philippine security forces. This, combined with the Philippines’ dispute with China regarding the West Philippine Sea/South China Sea, highlights that the exemption has a geopolitical significance instead of being as simple as an aid exemption.
It is also important to note that while there’s an aid freeze exemption specifically on security assistance, the freeze still significantly impacted other US aid to the Philippines. According to publicly available data on US foreign assistance in the Philippines, at least 39 ongoing development projects are affected by Trump’s foreign aid freeze. Numerous development programs faced delays or suspensions, affecting crucial initiatives in health, education and environmental protection. This selective approach — prioritizing security aid over development — aligned with Dependency Theory. It demonstrates how aid can be strategically deployed for self-interest, rather than fostering genuine self-reliance of recipient nations.
The Philippines’ dependence on the US for defense against China is highlighted by the aid freeze exemption of security assistance, even as the country carefully tries to balance this reliance with the need to maintain its independence and avoid complete antagonism with China for economic and diplomatic reasons. This precarious position, where security concerns outweigh development needs, exemplifies the core tenets of Dependency Theory: the perpetuation of unequal power dynamics through strategic aid distribution. The selective nature of the exemption directly reflects Dependency Theory’s assertion that aid is often used to maintain existing power structures.
The US secured a crucial military partner in the region by prioritizing security aid while simultaneously limiting support for broader development goals. While some might argue that prioritizing security aid was essential for regional stability, even if it meant delaying development projects. It is crucial to acknowledge that this action reinforced the existing power imbalance, which now leaves the Philippines strategically dependent on the US for security while still struggling in its path towards stability.