The development sector in Bangladesh has historically provided stable employment for thousands of local professionals, including researchers, project managers, and field workers who implement essential programs. However, the recent suspension of US foreign assistance programs, including those administered by USAID, has significantly impacted the sector. The abrupt funding cuts have resulted in job losses for many dedicated local professionals, revealing critical vulnerabilities in job security within the development field and diminishing public trust in donor-dependent initiatives.
The US government’s decision to suspend foreign aid for 90 days, as part of its broader internal reassessment of its global commitments, has resulted in the cessation of ongoing projects across Bangladesh. USAID, one of the largest donors supporting health, education, climate resilience, and governance programs, has frozen its financial assistance. Consequently, many organizations reliant on this funding have been compelled to lay off staff or place projects on indefinite hold.
For professionals in the development sector, these funding cuts have led to abrupt job losses with little to no warning. Skilled individuals -- many with years of experience in humanitarian and development work -- now find themselves unemployed. Unlike in the private sector, where employees may have alternative career paths, many development professionals specialize in donor-funded initiatives, making their transition to other fields particularly challenging.
One of the most often overlooked aspects of donor-driven development work is that, while international consultants and foreign experts are frequently brought in for high-level roles, the day-to-day implementation is predominantly carried out by local professionals. These individuals are integral to interacting with communities, conducting field surveys, implementing interventions, and monitoring project impacts.
Their dedication and institutional knowledge are invaluable; however, they are typically the first to experience the consequences when funding diminishes. This pattern is not new. Historically, donor-funded programs in Bangladesh have exhibited an element of unpredictability. Nonetheless, the scale and abruptness of the recent aid suspension render this crisis distinct. It highlights the fragility of development employment in Bangladesh, where thousands of skilled professionals are engaged on short-term contracts linked to external funding.
The impact of recent funding cuts is particularly concerning for the public health sector. Bangladesh is currently grappling with a deteriorating tuberculosis (TB) crisis that jeopardizes years of advancements in disease control. TB remains a significant public health issue in the country, with Bangladesh ranked among the highest-burden TB nations globally. Efforts to combat the disease are heavily dependent on donor-funded programs that provide essential diagnostic tools, medications, and awareness campaigns.
With the suspension of foreign aid, critical TB intervention programs are now at risk. Many community health workers, who are essential for identifying and treating TB cases, are losing their jobs due to budget cuts. This results in fewer screenings, delayed treatments, and a potential resurgence of the disease, especially in rural and underserved areas. Furthermore, Bangladesh is facing challenges with drug-resistant TB cases, which necessitate specialized treatment and ongoing medical support. A cessation of funding could lead to an increase in undiagnosed and untreated cases, ultimately worsening the crisis.
The recent funding cuts have resulted in 1,000 job losses at icddr,b, one of the world’s leading public health research institutions. For decades, icddr,b has been instrumental in combating infectious diseases, improving child health, and conducting pioneering research that shapes global health policies. However, due to financial constraints stemming from the current funding crisis, icddr,b has been compelled to terminate the contracts of numerous researchers, healthcare professionals, and support staff.
This situation is particularly alarming as icddr,b’s projects are closely linked to vital public health issues, including child malnutrition, waterborne diseases, and maternal health. The layoffs not only impact the livelihoods of highly skilled professionals but also diminish Bangladesh’s capacity to address emerging health threats. Insufficient personnel may lead to the discontinuation of ongoing research projects and the incomplete execution of crucial fieldwork. Moreover, this setback could deter future researchers from entering the field, potentially resulting in a long-term knowledge gap in public health expertise.
In addition to the immediate job losses, funding cuts exacerbate public skepticism regarding development projects. Communities that previously benefited from health, education, and climate adaptation programs are now experiencing the abrupt cessation of these vital services. When a donor-funded maternal health initiative ceases to provide essential medications or a climate resilience program halts construction midway, the affected populations begin to lose confidence in these initiatives.
Bangladesh has made significant strides in reducing poverty, improving healthcare, and expanding educational access, largely with the support of foreign aid. However, this dependency on external funding means that when donors withdraw, progress can stall or even reverse. The current crisis raises critical questions: Should Bangladesh continue to rely on foreign aid for essential development work? How can the government and civil society establish more sustainable funding models to prevent such disruptions in the future?
The insecurity in development jobs and the erosion of public trust necessitate urgent action. First, a shift towards more sustainable financing models is essential, which includes increasing domestic resource mobilization and fostering private-sector partnerships to fund key development programs. Bangladesh boasts a growing economy, and while donor assistance remains significant, greater self-reliance is crucial to ensure long-term stability.
Second, organizations engaged in development must advocate for improved employment protections for local staff. This encompasses offering longer-term contracts, establishing financial reserves to address unexpected funding gaps, and cultivating a more diverse donor base to reduce overreliance on a single funding source.
Finally, development agencies must enhance transparency regarding funding uncertainties. Rather than presenting projects as guaranteed solutions, they should openly acknowledge financial risks and communicate contingency plans to both employees and beneficiaries. This approach would help to mitigate the sense of betrayal that often accompanies abrupt program shutdowns.
The USAID funding crisis highlights a challenging reality: Development jobs in Bangladesh are not as secure as they once appeared. Thousands of skilled professionals are now seeking new employment, while communities that previously benefited from these programs are losing confidence in the systems established by these projects. The escalating TB crisis and layoffs at icddr,b further emphasize the risks associated with excessive reliance on donor funding in the health sector. Without sustained financial support, critical research, disease prevention, and treatment efforts may face significant setbacks, resulting in long-term health repercussions.
To maintain its health, education, and economic development progress, Bangladesh must reevaluate its dependence on foreign aid and promote more resilient, locally funded initiatives. Only by doing so can we ensure that development work remains impactful and sustainable, without leaving local experts unemployed and communities unsupported.
Dr Anwar Hossain Chowdhury is Assistant Professor, Bangladesh Institute of Governance and Management. Shirin Sultana is Research Associate, Bangladesh Institute of Governance and Management.