United States Agency for International Development (USAID)

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID)

The United States Agency for International Development (USAID) is an independent government agency that provides economic development and humanitarian assistance to advance U.S. economic and political interests overseas. This type of activity started in the United States in 1947 with the Marshall Plan, the forerunner of current development programs. President John F. Kennedy established the USAID in 1961 to promote development around the globe. The agency is currently based in Washington, with field missions abroad. USAID programs have provided aid in Africa, Asia and the Near East, Latin America and the Caribbean, Central and Eastern Europe, and the independent states of the former Soviet Union. The structure of the agency is shown in Figure 1.

To promote development, USAID partners with other U.S. government agencies, U.S. businesses, private voluntary organizations, indigenous groups, and universities. USAID contracts with more than 3,500 U.S. firms and over 300 U.S. based private voluntary organization (PVOs).

The agency works in five principal areas crucial to achieving U.S. foreign policy objectives: promoting economic growth; advancing democracy; delivering humanitarian assistance to victims of famine and other population-wide emergencies; protecting the public's health and supporting family planning; and protecting the environment.

Figure 1

When considering a nation for development assistance, USAID looks at a number of important factors, including strategic interests, a country's commitment to social and economic reform, and a willingness to foster democracy.

FOREIGN AID

What happens in the developing world has a dramatic impact on America's economic prosperity, environment, and public health. The fortunes of the United States are closely linked to those of other nations. Air pollution, the AIDS (acquired immunodeficiency syndrome) epidemic, rapid population growth, and deforestation are only a few examples of the many problems in the developing world that touch American lives. U.S. development programs reflect the nation's compassion for the poorest of the poor and America's interest in a more prosperous and peaceful world.

Foreign assistance is seen as an investment in creating the markets of the future, preventing crises, and helping advance democracy and prosperity. Foreign aid creates U.S. jobs and advances American economic well-being.

Economic and humanitarian assistance is also an investment in the future of America's economy. Foreign assistance fosters an enabling environment for U.S. trade and investment in developing nations by establishing fair business codes, viable commercial banks, and reasonable tax and tariff standards. Foreign assistance helps create the stable and transparent business standards by which U.S. companies need to operate. Between 1990 and 1995, exports to developing and transition countries increased by nearly $99 billion. This growth supported nearly 2 million U.S. jobs. Foreign assistance has often resulted in a huge payoff in terms of creating export markets for U.S. goods and services. For example, the United States now exports more to South Korea in just one year than was given to that country in total foreign assistance during the 1960s and 1970s.


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