Context: How will freeze on USAID affect the world?

Source: The Hindu

U.S. President Donald Trump implemented a 90-day block on foreign aid on January 20, his first day in office for a second term.

In 1961, a congressional act established the U.S. Agency for International Aid as an autonomous organization. It was an attempt to coordinate all U.S. initiatives for the administration of development and civilian foreign aid. Its goal is “to advance a free, peaceful, and prosperous world by promoting and demonstrating democratic values abroad.” It offers financial assistance in more than 100 countries globally in a variety of sectors. In general, it operates in the areas of food security, health, education, economic development, humanitarian aid, climate change, democracy, and governance.

The President’s Emergency Plan for AIDS Relief, Power Africa, and the Water for the World Act are the main initiatives.

Ukraine, Ethiopia, Jordan, Somalia, Congo, Afghanistan, Nigeria, Syria, Yemen, and South Sudan are the top nations with which USAID works.

These countries’ fortunes might be significantly impacted by the removal of these monies since many projects would have to be abandoned as a result of the help being discontinued. According to the United Nations AIDS organization, if Mr. Trump’s government withdraws its international support for programs, more than 6 million people could perish from HIV and AIDS within the next four years.

Will projects in India suffer?

The amount of money in India has decreased over time as a result of the Indian government’s objections to several aspects of the grant agreements’ terms. It is estimated that USAID has given India over $1.5 billion over the past ten years.

President Harry Truman’s signing of the India Emergency Food Aid Act in 1951 marked the beginning of the partnership between India and USAID. From food assistance to infrastructure development, capacity building, economic reforms, and more, USAID’s role has changed over the years. With a funding of $79.3 million in 2024, USAID’s primary area of involvement in India is still health, which includes HIV/AIDS, TB, maternal and child health, and the Immunization Program. However, the organization also has interests in the economy, energy, water supply and sanitation, and environmental health.

India might not be significantly impacted by USAID’s withdrawal. It is still unclear how these ongoing initiatives, especially in the healthcare sector, are doing and if the federal or state governments will be able to step up to continue these initiatives and their beneficiaries.

 

 

Model Question:

Discuss the role of the United States Agency for International Development (USAID) in global development. How has USAID’s engagement with India evolved over the years, and what are its key areas of impact on India’s socio-economic development? (250 words)

Model Answer:

The United States Agency for International Development (USAID) is the primary agency of the U.S. government responsible for providing foreign aid and development assistance. Established in 1961, USAID works to promote economic growth, improve healthcare, strengthen democracy, and address global challenges like climate change. Over the decades, its engagement with India has evolved from direct financial aid to strategic partnerships in various sectors.

Evolution of USAID’s Engagement with India:

1. Early Years (1950s–1990s): USAID provided significant financial and technical assistance, particularly in agriculture (Green Revolution), health, and education.
2. Post-2000 Shift: As India’s economy grew, USAID transitioned from an aid-based approach to a partnership model, focusing on technical expertise, innovation, and capacity-building.
3. Current Engagement: USAID now collaborates with the Indian government, private sector, and civil society in areas like climate resilience, women’s empowerment, and public health.

Key Areas of Impact in India:

1. Public Health: USAID has supported programs for polio eradication, tuberculosis control, and maternal health. It played a key role in India’s COVID-19 response, providing medical supplies and vaccine-related support.
2. Agriculture & Food Security: It has worked on improving agricultural productivity and promoting climate-smart farming techniques.
3. Climate Change & Renewable Energy: USAID supports India’s transition to clean energy through initiatives like the U.S.-India Clean Energy Partnership.
4. Economic Growth & Entrepreneurship: Programs like the Millennium Alliance help Indian startups in sectors like healthcare and fintech.
5. Disaster Resilience & Governance: USAID aids in disaster preparedness, urban development, and improving governance mechanisms.

Challenges & Criticism:

1. Concerns over external influence on India’s policy decisions.
2. Need for greater alignment with India’s self-reliance initiatives like Atmanirbhar Bharat.

USAID has played a pivotal role in India’s development journey by shifting from aid-based assistance to a strategic partnership model. Moving forward, India-USA collaboration under USAID can further enhance India’s sustainable development goals, especially in climate resilience, digital transformation, and healthcare.