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4th February 2025 (12 Topics)

United States Agency for International Development (USAid)

Context

US President Donald Trump's administration has decided to freeze the funds of the United States Agency for International Development (USAid).

What is USAID?

  • Established in: 1961
  • The United States Agency for International Development (USAid) was set up to administer humanitarian aid programmes on behalf of the US government around the world.
  • It has bases in more than 60 countries and works in dozens of others.
  • Key-functions:
    • helps strategically important countries and countries in conflict
    • leads US efforts to alleviate poverty, disease, and humanitarian need
    • assists US commercial interests by supporting developing countries’ economic growth and building countries’ capacity to participate in world trade
  • Top aid recipients in 2023: Ukraine, Ethiopia, Jordan, Democratic Republic of Congo, Somalia, Yemen, Afghanistan, Nigeria, South Sudan and Syria.
  • Impact on India: USAid has been working in India for over 70 years. During the current fiscal year, India was to receive USD 140 million through USAid while the country's overall budget of over USD 600 billion.

USAID’s Role in India

  • Healthcare: USAid helped in reducing maternal and child mortality, saving over 2 million children since 1990. It supported India's efforts to combat tuberculosis (TB) and HIV/AIDS. During the COVID-19 pandemic, USAID provided millions in aid.
  • Education: USAID has partnered with India to improve literacy across 16 states, reaching over 2 million students.
  • Water, Sanitation, and Hygiene (WASH): USAid supported India’s Swachh Bharat Abhiyan, helping more than 300,000 people access household toilets and ensuring 25,000 communities became open defecation-free.
  • Food Security and Agriculture: USAid has assisted over 130,000 farmers by introducing improved farming technologies, leading to higher yields and increased incomes.
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