U.S. Ambassador to the United Nations Michael Waltz on Monday launched the “Trade Over Aid” initiative at the New York Stock Exchange, arguing that decades of development aid had set “dependency traps” for nations who ought to be self-reliant.

Mr Waltz said Washington was not abandoning its global commitments, drawing a distinction between humanitarian aid and development aid. 

The U.S., according to Mr Waltz, will continue to provide humanitarian aid to countries in need but would shift its approach to development aid, which he said has been unproductive in yielding desired outcomes after many years.

“It’s a shift away from a model that measured success in dollars spent and how much money was going into the funnel, rather than in jobs and real lives changed on the back end,” Mr Waltz explained. “So, what we’re trying to do is focus on actual reductions in aid over time, and focus on jobs created, and focus on nations that are realising economic independence.”

He said schools across Africa and the Middle East still lacked basic infrastructure and supplies despite years of aid, arguing the approach had to change.

“So, depending on government aid for development, frankly, is simply unsustainable. It wasn’t ever made to last.”

He said the U.S. would work with other institutions such as the World Bank, International Monetary Fund (IMF) and UNICEF to create jobs and build capacity for nations previously benefitting from the development fund.

Trade Over Aid focuses on helping countries build self-sustaining economies through business and investment.

“At its core, this initiative comes down to a simple idea: nations should get into the business of doing business together,” Mr Waltz said.

Representatives from 35 countries including Kenya and Uganda attended the inaugural event.