UNITED AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID)
1. Context
Consequently, personnel of the United States Agency for International Development (USAID) were stopped from disbursing assistance across the world. By late last week, the website of USAID also wiped content, leaving just a message that all USAID personnel (about 10,000 globally) would be placed on administrative leave, with a few exceptions for mission-critical personnel
2. What is United States Agency for International Development (USAID)?
- The U.S. Agency for International Development (USAID) was established as an independent entity through congressional legislation in 1961.
- Its primary objective was to unify American efforts in delivering civilian foreign aid and development assistance.
- The agency’s mission is to "promote and demonstrate democratic values abroad while fostering a free, peaceful, and prosperous world," aligning with U.S. interests in national security and economic growth.
- To achieve this, USAID provides financial assistance across multiple sectors in over 100 countries worldwide, focusing on economic development, healthcare, education, food security, humanitarian aid, climate change, and democratic governance.
- USAID collaborates with governments, non-governmental organizations, businesses, and international bodies, primarily through grants, technical support, and project funding aligned with its objectives.
- Some of its key initiatives include the President’s Emergency Plan for AIDS Relief (PEPFAR), which combats HIV/AIDS, Feed the Future, aimed at tackling hunger and food insecurity, Power Africa, which enhances electricity access across the continent, and the Water for the World Act, focused on improving water, sanitation, and hygiene services.
- The agency is financed through allocations in the U.S. federal budget. In 2024, it was granted $44.20 billion, accounting for 0.4% of the fiscal year's total budget, as per USAspending.gov.
- That same year, USAID distributed the full amount among its four main divisions. Reports indicate that in 2024, it contributed approximately 42% of all humanitarian aid tracked by the United Nations
3. How will this impact countries?
- According to the official U.S. foreign assistance website, the primary countries receiving USAID support include Ukraine, Ethiopia, Jordan, Somalia, the Democratic Republic of the Congo, Afghanistan, Nigeria, Syria, Yemen, and South Sudan.
- A potential withdrawal of these funds—stemming from what some describe as a reactionary decision—could have severe consequences for these nations, as numerous aid projects may be forced to shut down.
- This could not only reduce the quality of life for beneficiaries but also pose life-threatening risks in these regions. The United Nations AIDS agency warned on February 7 that if the U.S. government discontinues global funding for HIV/AIDS programs, over six million people could lose their lives within the next four years.
- Media reports indicate that while a freeze was imposed on $13.3 million in aid to Haiti, the U.S. State Department granted an exemption, allowing $40.7 million in assistance for the country’s police force.
- Additionally, USAID has stated on its website that exceptions would be made for "mission-critical functions, core leadership, and specially designated programs." However, specific details on these exceptions and the criteria for their approval remain undisclosed.
- Meanwhile, foreign agency reports suggest that of USAID's 10,000 employees, only 294 would retain their positions, with just 12 staff members remaining in the Africa bureau and eight in the Asia bureau—areas deemed essential in addressing poverty, disease, and conflict.
4. What are the implications on India?
- In recent years, USAID funding to India has declined, largely due to the Indian government’s objections to certain conditions attached to grant agreements. Over the past decade, India has received approximately $1.5 billion from USAID, accounting for about 0.2% to 0.4% of the agency’s total global funding, according to the official foreign assistance website.
- USAID’s partnership with India dates back to 1951 when President Harry Truman signed the India Emergency Food Aid Act. Over time, its role has shifted from food aid to infrastructure development, capacity building, and economic reforms.
- In its early years, USAID played a key role in India’s education sector, immunization efforts, and healthcare initiatives.
- While health remains its primary focus—including programs addressing HIV/AIDS, tuberculosis, maternal and child health, and immunization—USAID also supports projects related to economic growth, energy, water and sanitation, and environmental health. In 2024, funding for health-related programs in India amounted to $79.3 million
- India has positioned itself as a link between the Global North and the Global South, leveraging its growing influence within the G20
- A potential reduction in U.S. engagement in the G20 could create opportunities for China and Russia to expand their influence. This shift might alter global economic dynamics and weaken India’s strategic position, especially in light of China’s growing dominance
- Although direct financial aid from USAID to India has declined, contributions still exceeded $50 million in 2024. A permanent funding cut could disrupt India’s vaccination programs, efforts to control infectious diseases, and medical infrastructure.
- To sustain critical initiatives in health, environment, and governance, India may have to allocate more domestic resources
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Previous Year Question
1.In which one of the following groups are all the four countries members of G20? (2020) (a) Argentina, Mexico, South Africa and Turkey Answer (a)
The correct answer is (a) Argentina, Mexico, South Africa, and Turkey because all four countries are members of the G20. Here’s why the other options are incorrect:
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Source: The Hindu
