It is clear to me that this action is one to punish. In the long term it will hurt US interests. The US economy and the world economy for that matter relies on trade and stable local economies no matter how small.
Many of these counties that will no longer qualify for funds are long time trouble spots or have unstable or fledgling economies. Cutting them off will not help the situation.
Take the example of HIV/AIDS in the world today. The United States to it's credit donates a fair whack of money. This money however comes with many strings. You can not use it to promote condom use or to supply condoms, you must promote only abstinance as a means of controlling the spread of HIV.
Further, the American government continues to support the big drug companies. This effort protects the profits of drug companies at the expense of saving lives and what should be evident to US lawmakers and bankers, that these third world countries economies are being crushed by the impacts of HIV. Millions are unable to work, a whole generation of workers is being lost and their children are growing up without parents.
The real impact will be felt over the next 10 years. The US will be creating a whole new crop of anti-Americans. Poverty will be much worse, leading to people to look for a way out. They will know from history what happened and they will have no shortage of leaders and groups that will point at the United States.
"The United States is punishing many in the world today, in the end they are punishing Americans."
Canada is no saint here either. Our generic drug law that would allow generic drug companies to make patented drugs for the third world is full of holes and has yet to be enacted. The biggest hole is the requirement for the generic drug maker to negotiate a deal to supply drugs to a third world country and then let the Drug company that holds the patent decide if they want to fill the contract.
This article makes the law unworkable. The noise Canada is making on being a good world citizen, needs to be backed up with a few changes, or we will see the polish on Canada start to tarnish.
see also: If you are not with the USA, You are against the USA