WHAT IS USAID?

PRELIMS BITS

Overview: USAID (United States Agency for International Development) is the primary US agency responsible for managing foreign aid. Established in 1961 under President John F. Kennedy, it aims to assist in global development, disaster recovery, poverty alleviation, and democratic reforms.

• Funding and Distribution:
  • In fiscal year 2023, USAID allocated $72 billion in aid.
  • Major recipients include Ukraine ($14.4 billion), Jordan, Yemen, and Afghanistan.
  • USAID provides 42% of global humanitarian aid tracked by the UN.
• Criticism:
  • Allegations of foreign policy bias and inefficiencies, such as the Cuban Twitter project.
  • Issues with funding management and indirect costs.
  • Critics argue that its operations sometimes contradict its goals of promoting democracy and development.
• Global Impact:
  • The potential closure of USAID raises concerns about a shifting geopolitical balance, allowing nations like China to expand influence in regions previously supported by US aid, especially in Eastern Europe and Africa.