Trump Administration’s Move to Shut Down USAID

Context: The US administration has pushed to pause foreign aid, remove key officials and cut funding to the United States Agency for International Development.

About United States Agency of International Development (USAID)

• USAID is the lead international humanitarian and development arm of the US government.
• It funds NGOs, foreign governments, international organizations and other US agencies for programs related to:
  • Poverty alleviation, Education, Healthcare, Infrastructure, Democracy Building etc.
• It has played a key role in spreading US influence abroad.
• USAID’s Top Recipients in FY2023: Ukraine, Ethiopia, Jordan, Democratic Republic of Congo, Somalia.

History of USAID

Origins in Cold War Geopolitics

• US has used international aid as a foreign policy tool since WWII.
• Marshall Plan (post-WWII) – Provided economic aid to Europe to prevent the spread of communism.
• During the Cold War, the USA increased economic, technical and military aid to counter the Soviet Union.

Creation of USAID (1961)

• It was established by President John F. Kennedy under the Foreign Assistance Act of 1961.
• Initially, it focused on preventing communism in Latin America after the Cuban Revolution (1959).
  • Launched the “Alliance for Progress” – a multi-billion dollar initiative for Latin American development.

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