United States Agency of International Development (USAID)
iasparliament
February 04, 2025
Why in News?
The United States of America’s Administration recently decided to put an end to United States Agency of International Development.
USAID is the lead international humanitarian and development arm of the US government.
The agency was established via an executive order by President Kennedy after the US Congress in 1961 passed the Foreign Assistance Act.
The act mandated the creation of a single agency to administer foreign aid.
The agency provides assistance to other countries primarily by funding non-governmental organisations (NGOs), foreign governments, international organisations, or other US agencies.
Aim - To alleviate poverty, provide education and healthcare, among other things.
Funding - The agency managed more than $43 billion in funds, and provided assistance to around 130 countries in FY2023.
The top 10 recipients of USAID-managed funds in FY2023 (in descending order of funding).
Ukraine, Ethiopia, Jordan, Democratic Republic of Congo, Somalia, Yemen, Afghanistan, Nigeria, South Sudan, and Syria.
Employees - USAID employed more than 10,000 people in FY2023, according to CRS, with approximately two-thirds of this workforce serving overseas.
USAID maintains more than 60 missions around the world.
Significance for India - The US has provided development and humanitarian assistance to India since 1951, when President Harry Truman signed the India Emergency Food Assistance Act.
Economic aid from the US has also helped establish 8 agricultural universities, the first Indian Institute of Technology, and 14 regional engineering colleges.
It also strengthened India’s national programs on immunization, family planning, maternal and child health, HIV/AIDS, tuberculosis, and polio.
In 2004, the Indian government decided to reject any foreign aid that comes with conditions. This has, over time, led to a decline in the quantum of such assistance.
