America’s soft power is waning amid a geopolitical reshuffling that is seeing the global order reshaped by China and the Middle East, particularly in foreign aid and philanthropy. Soft power refers to the ability of a country to influence others not through military might, but through its culture, ideology, and institutions. For decades, America used soft power tools like USAID, the National Endowment for Democracy, and the Fulbright scholarship, amongst others, to project American cultural strength, democracy, and the rule of law. The U.S. government encouraged buy-in to America’s vision: that the U.S. stood for innovation, prosperity, and the potential to succeed. It is why the U.S. has long been viewed as a country whose roads were “paved in gold,” why America can employ the best talent at home and abroad, and why the U.S. succeeded in its rise to dominate the global order.
When America Led, the World Followed
In the 1980s, the Reagan Administration relied heavily on soft power tools like “Voice of America” to project American success, showering the world with potential. America’s cultural exports, blue jeans and music, saturated markets; to this day, ’80s music still blares in European and Asian storefronts. In the following decades, syndication and streaming translated NYPD Blue to French, Baywatch to German, Two and a Half Men to Portuguese and brought Scandal to multiple countries in Africa. Administrations used the Peace Corps, USAID, PEPFAR, Internet diplomacy, and vaccine diplomacy to bring the world a taste of America, its great innovations and even its “cheesiness” to all corners of the globe. Even in the darkest times following 9/11, America’s vision for success still appeared dominant.
Rivals Wield Philanthropic Soft Power
Other countries understood this influence, extending their own soft power through foreign aid and philanthropic organizations that amplified their own visions of cultural strength, ideals and institutions. Now, these same organizations are skillfully wielding these tools as U.S. government funding is receding from the world.
The Fiker Institute, a Dubai-based think tank that coined the term “philanthro-diplomacy,” wrote that “a growing number of Gulf Cooperation Council foundations are engaging in activities that closely resemble foreign aid… sovereign-backed entities such as Saudi Arabia’s King Salman Humanitarian Aid and Relief Center or the United Arab Emirates’ (UAE) Mohammed bin Rashid Al Maktoum Global Initiatives… often serve as instruments of soft power.” The governments of Saudi Arabia and the UAE provide aid to countries in the Horn of Africa and South Asia, areas where USAID once assisted.
China Fills the Void America Left Behind
China’s Belt and Road Initiative and other aid projects are also focused on Africa and Southeast Asia—regions where U.S. foreign aid dominated in the past but is now in retreat. According to a study in the Journal of Economic Development and Cultural Change, Chinese development projects increased popular support for the Chinese government in recipient countries. These projects created a more favorable public opinion environment for China among African nations.
A Generation Up for Grabs
As the U.S. government retreats to the Americas, its ability to effect change, create goodwill, and grow cultural and economic market share in the world’s “growth populations” will be diminished (the United Nations forecasts that sub-Saharan Africa’s population will increase by 79% to 2.2 billion by 2054). Newer generations exposed to the culture, ideology and institutions of China, Saudi Arabia, or the UAE will be primed to welcome those nations’ ideology, institutions, and goods and services. Decades from now, it may be Chinese music, language, and culture that permeate these areas, while America becomes a distant memory.
When Washington Steps Back, American Donors Can Step Up
The U.S. philanthropic community can help change that. As the U.S. government becomes less willing to wield soft power diplomacy and retreats from foreign aid, the philanthropic community is positioned to be the voice of American ideals and values. Private foundations like Gates, Rockefeller, and Mott, amongst many others, are reaching into influence areas that harken back to the ’80s, ’90s, and 2000s—focusing on children’s health, vaccinations, technology, society, and culture. Through their name recognition and programs, they continue to bring the best of America to the rest of the world. Perhaps “philanthro-diplomacy” is something the American donors should practice as well.
Editor’s note, by Viken Mikaelian: The influence Allison describes is never built on a single gift—it is built to last decades. America’s great foundations carry their values across generations because earlier donors made that work permanent through endowments and planned gifts. For the donor who wants American ideals to outlast them, a bequest or legacy gift is how soft power becomes lasting power.



