The U.S. Agency for International Development (USAID) is an independent federal agency that works to support economic growth and agricultural development, global health, and disaster assistance in developing areas of the world. Created in 1961 by President John F. Kennedy, the USAID was based on the objectives of the marshall plan for the reconstruction of Europe after World War II, and the Truman Administration’s Point Four Program.
The USAID is headquartered in Washington, D.C., and has field offices around the world. Working with a variety of organizations, both private and governmental, the United States Agency for International Development provides financial assistance and technical advice for development efforts. The USAID is one of the more controversial U.S. government programs. Though the United States allocates less than 1 percent of its budget for foreign aid, U.S. Agency for International Development programs have long been criticized for waste, fraud, and abuse. Numerous reports document unfinished projects, disappearance of funds, and inappropriate development schemes recommended by U.S. “experts” traveling around the world in a style consistent with that of politicians’ “fact-finding” junkets.
To help remedy the problems with the United States Agency for International Development, one proposal recommended giving more aid to private agencies rather than the governments in developing countries. Another suggestion has been to eliminate the agency entirely. U.S. businesses have sometimes complained the U.S. Agency for International Development subsidizes projects that cause the loss of American jobs. Support for export-processing zones, in particular, are criticized on this basis. On the other hand, the majority or USAID funding is tied to the purchase of goods and services from U.S. companies, creating lucrative exporting opportunities.
See also: U.S. Agency for International Development