US Agency for International Development

• 10 Feb 2025

Source: TH 

Why in News?  

The US President Donald Trump has imposed a 90-day freeze on foreign aid, halting  US Agency for International Development (USAID) programs worldwide.  

• Additionally, the US has announced that it will not attend the 2025 G20 Foreign Ministers’ meeting in Johannesburg, South Africa. 

What is the US Agency for International Development? 

• About: USAID is the primary US agency for global humanitarian and development aid. 
• Support: In 2024, USAID was allocated USD 44.2 billion, just 0.4% of the total US federal budget, but accounted for 42% of all humanitarian aid tracked by the United Nations. 
  • USAID funds healthcare, food aid, disaster relief, and policy advocacy worldwide. 
  • Top aid recipients Include Ukraine, Ethiopia, Jordan, Somalia, and Afghanistan. 
• USAID and India: India's association with USAID began in 1951 with the India Emergency Food Aid Act, evolving over decades from food aid to infrastructure, capacity building, and economic reforms. 
  • The agency has been supporting education, immunization, polio eradication, and HIV (human immunodeficiency virus) /Tuberculosis (TB) prevention. 
  • In the last decade, India is said to have received around USD 1.5 billion from USAID (about 0.2 % to 0.4 % of USAID’s total global funding). 

What are the Implications for India? 

• India’s Role in the Global South: India has positioned itself as a bridge between the Global North and the Global South, benefiting from its rising status within the G20. 
• China and Russia: If the US reduces its role in G20, China and Russia could expand their influence, potentially shifting global economic dynamics and weakening India's position amid China's rising power. 
• Healthcare: Although direct financial aid to India has decreased, USAID contributions exceeded USD 50 million in 2024.  
  • A permanent funding cut could impact India's vaccination programs, infectious disease control, and medical infrastructure. 
  • India may need to redirect domestic funds to sustain health, environment, and governance projects. 

UPSC Civil Services Examination Previous Year’s Questions (PYQs) 

Prelims:

Q. In which one of the following groups are all the four countries members of G20? (2020)

(a) Argentina, Mexico, South Africa and Turkey 
(b) Australia, Canada, Malaysia and New Zealand 
(c) Brazil, Iran, Saudi Arabia and Vietnam 
(d) Indonesia, Japan, Singapore and South Korea 

Ans: (a)