United States Agency for International Development

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United States Agency for International Development
Agency overview
FormedNovember 3, 1961
Preceding agency
  • International Cooperation Administration
HeadquartersWashington, D.C.
Employees1,759 (2006)
Agency executives
  • Rajiv Shah, Administrator
  • Donald Steinberg, Deputy Administrator
  • Sean Carroll, Chief Operating Officer
Websitewww.usaid.gov
Footnotes
[1][2]

The United States Agency for International Development (USAID) is the United States federal government agency primarily responsible for administering civilian foreign aid. President John F. Kennedy created USAID in 1961 by executive order to implement development assistance programs in the areas authorized by the Congress in the Foreign Assistance Act of 1961.[3] An independent federal agency, USAID receives overall foreign policy guidance from the United States Secretary of State and seeks to "extend a helping hand to those people overseas struggling to make a better life, recover from a disaster or striving to live in a free and democratic country."[4]

USAID's stated goals include providing "economic, development and humanitarian assistance around the world in support of the foreign policy goals of the United States".[5] It operates in Sub-Saharan Africa; Asia and the Near East, Latin America and the Caribbean, Europe, and Eurasia.

Organizational History of U.S. Foreign Aid

From the ECA to USAID

The U.S. Government has long provided foreign assistance for specific needs, such as notably in 1915 through the Commission for Relief of Belgium headed by Herbert Hoover to prevent starvation in Belgium after the German invasion. After 1945, the USG institutionalized its foreign assistance with the creation of the Economic Cooperation Administration (ECA) for the European Recovery Program championed by Secretary of State George Marshall (the "Marshall Plan"), to help rebuild war-torn Western Europe. Organizational evolution since then is traced in USAID's website.[6]

The Marshall Plan was cut short on June 30, 1951 to re-direct foreign aid in light of the Korean War. On October 31, 1951, Congress passed the first Mutual Security Act and created the Mutual Security Agency (MSA) to manage foreign assistance. In 1953 at the end of the Korean War, the Foreign Operations Administration (FOA) was established as an independent government agency outside the Department of State, to consolidate economic and technical assistance on a world-wide basis. Its responsibilities were merged into the International Cooperation Administration (ICA) one year later.

In 1961, the Congress approved the Foreign Assistance Act of 1961 at President Kennedy's initiative, merging the ICA and other foreign aid entities into USAID as a new agency dedicated to development as a long-term effort requiring country-by-country planning and a commitment of resources on a multi-year, programmed basis.

USAID's Evolution

The organizational structure of U.S. foreign assistance continues to evolve.

  • In 1978, legislation drafted at the request of Senator Hubert Humphrey was introduced to create a Cabinet-level International Development Cooperation Agency (IDCA) to supervise USAID in place of the State Department. Although IDCA was established by Executive Order in September, 1979, it did not in practice separate USAID from the State Department.[7]
  • In 1995, Senator Jesse Helms, the Chairman of the Senate Foreign Relations Committee, introduced legislation to abolish USAID and replace it with a grant-making foundation,[8] but the proposal did not become law.[9]
  • In 2003, President Bush initiated PEPFAR, the President's Emergency Plan for AIDS Relief, putting USAID's HIV/AIDS programs under the direction of the State Department's new Office of the Global AIDS Coordinator.[10]
  • In 2004, the Bush Administration created the Millennium Challenge Corporation as a new foreign aid agency to provide financial assistance to a number of countries selected for their relatively good performance in socioeconomic development.[11] The MCC also finances some USAID-administered development assistance projects.
  • In January 2006, Secretary of State Condoleezza Rice created the State Department Office of the Director of U.S. Foreign Assistance (known as 'F') to ensure that foreign assistance is used as much as possible to meet foreign policy objectives.[12] Under a Director with the rank of Deputy Secretary, F integrates foreign assistance planning and resource management across State and USAID, directing all USAID offices' budgets according to a detailed "Standardized Program Structure" comprising hundreds of "Program Sub-Elements." USAID accordingly closed its office responsible for overall budgeting and development policy.
  • In 2007, USAID launched the "Development Leadership Initiative" to reverse the precipitous decline in USAID's Foreign Service Officer staffing, which from its high of 25,000 in 1970 had fallen to less than 1,000.[13] USAID's goal is to double the number of Foreign Service Officers by 2012.[14]
  • In 2010, USAID re-created a development planning office, the Bureau of Policy, Planning, and Learning,[15] and on November 23rd announced the creation of a new Bureau for Food Security[16] to lead the implementation of President Obama's Feed the Future Initiative, which was formerly managed by the State Department.

USAID's Internal Organization

USAID is divided between resident offices in developing countries ("missions") and its headquarters in Washington, DC.[17]

Country Development Programs

USAID is organized around individual country development programs, each of which is tailored to the recipient country. USAID missions reside in over fifty developing countries, using their contacts with each country's government and nongovernment organizations to identify the programs that will receive USAID's assistance. As countries develop and need less assistance, USAID shrinks and ultimately closes its resident missions. Since USAID's founding in 1961, it has closed its missions in such countries as South Korea, Turkey, Tunisia, and Costa Rica.

USAID missions are led by Mission Directors and staffed both by USAID Foreign Service Officers and by development professionals from the country itself, who form a majority of the staff. USAID Foreign Service Officers are selected competitively for specific job openings on the basis of academic qualifications and experience in development programs.[18]

Assistance projects in each country are authorized by the Mission Director under the direction of the U.S. Ambassador, USAID and State Department headquarters, and the Congress. The resident USAID mission administers and evaluates the assistance.

USAID's country programs are supported by USAID's headquarters in Washington, D.C., where about half of USAID's Foreign Service Officers work on rotation from foreign assignments, alongside USAID's Civil Service staff and top leadership.

USAID/Washington

USAID is headed by an Administrator appointed by the President and confirmed by the Senate. The current USAID Administrator is Rajiv Shah, appointed by President Obama.

USAID's headquarters in Washington, D.C. is organized into "Bureaus" covering geographical areas, development subject areas, and administrative functions. Each Bureau is headed by an Assistant Administrator appointed by the President.

  • Geographical bureaus:
    • AFR—Sub-Saharan Africa
    • ASIA—Asia
    • LAC—Latin America & the Caribbean
    • E&E—Europe and Eurasia
    • ME—the Middle East
  • Functional bureaus:
    • GH—Global Health
    • EGAT—Economic Growth, Agriculture, and Trade
    • DCHA—Democracy, Conflict, and Humanitarian Assistance
    • BFS-Food Security
  • Headquarter bureaus:
    • M—Management
    • LPA—Legislative and Public Affairs.[4]

Independent oversight of USAID activities is provided by its Office of Inspector General. USAID OIG conducts criminal and civil investigations, financial and performance audits, reviews, inspections, and evaluations of USAID activities around the world.

USAID's Goals

Among USG agencies, USAID has preeminent ability to administer programs in low-income countries through its decentralized network of resident field missions. Missions maintain local contacts, conduct socioeconomic analysis, design projects, award contracts and grants, administer projects (including evaluation and reporting), and manage flows of funds. These abilities have made the Agency essential for managing USG programs in low-income countries for a range of purposes.[19]

  • 1. Disaster relief
  • 2. Poverty relief
  • 3. Technical cooperation on global issues
  • 4. U.S. bilateral interests
  • 5. Socio-economic development

Disaster Relief

The U.S. Government's earliest foreign aid programs provided relief in crises created by war. In 1915, USG assistance through the Commission for Relief of Belgium headed by Herbert Hoover prevented starvation in Belgium after the German invasion. After 1945, the European Recovery Program championed by Secretary of State George Marshall (the "Marshall Plan") helped rebuild war-torn Western Europe. In our era, USAID leads USG relief efforts after wars and natural disasters through its Office for Foreign Disaster Assistance. Private U.S. relief contributions work through charitable NGOs. The U.S. military also plays a major role in disaster relief overseas.

Poverty Relief

After 1945, many newly independent countries needed assistance to relieve the chronic deprivation afflicting their low-income populations. Since its founding in 1961, USAID has continuously provided poverty relief in many forms, including assistance to public health and education services targeted at the poorest. USAID has also helped manage agricultural commodity assistance provided by the U.S. Department of Agriculture. In addition, USAID provides funding to NGOs to supplement private donations in relieving chronic poverty.

Technical Cooperation on Global Issues

Technical cooperation between nations is essential for addressing a range of cross-border interests like communicable diseases, environmental issues, trade and investment cooperation, safety standards for traded products, money laundering, and so forth. The USG has specialized agencies dealing with such areas: CDC, FBI, USTR, EPA, APHIS, CPB, and so forth (using acronyms for brevity). In low-income countries, USAID's ability to administer assistance supports cooperation on these vital global concerns, frequently through USAID's support to the overseas work of other USG agencies.

U.S. Bilateral Interests

To support U.S. geopolitical interests, USAID is often called upon to administer exceptional financial grants to allies. Also, when U.S. troops are in the field, USAID can supplement the "Civil Affairs" programs that the U.S. military conducts to win the friendship of local populations and thus to undermine insurgent support. In these circumstances, USAID may be directed by specially appointed diplomatic officials of the State Department, as in Afghanistan and Pakistan at present. USAID can also be called upon to support projects of U.S. constituents that have exceptional interest.

Socioeconomic Development

When President Kennedy was still a Senator, his advisors persuaded him that low-income nations could achieve self-sustaining socioeconomic development if they improved management of their own resources. This became Kennedy's fundamental idea when as President he created USAID. USAID's assistance for socioeconomic development centers on providing technical advice, training, scholarships, commodities, and financial assistance. Other USG agencies and NGOs also participate in these efforts.

Programs of the five types above frequently reinforce one another. For example, the Foreign Assistance Act requires USAID to use funds appropriated for geopolitical purposes ("Economic Support Funds") to support socio-economic development to the maximum extent possible.

USAID's Modes of Assistance

USAID delivers foreign aid in two fundamentally different ways: technical assistance and financial assistance.[20]

Technical Assistance

Technical assistance includes technical advice, training, scholarships, construction, and commodities, which are contracted or procured by USAID and provided in-kind to recipients.

  • Technical advice can draw on experts from other USG agencies as well as experts from the private sector under contract.
  • Scholarships to U.S. universities are complemented by technical assistance to developing country universities, including establishing partnerships with U.S. universities, to strengthen professional training overseas.
  • Commodity assistance takes diverse forms: for example, it is essential to disaster relief and it also is highly sought after for institutional development in the form of IT systems development and computer procurement.

The various forms of technical assistance are frequently coordinated as packages to support the institutional development programs of developing country leaders.

Financial Assistance

Financial assistance supplies cash to developing country organizations to supplement their budgets. USAID also provides financial assistance to local and international NGOs who in turn give technical assistance in developing countries.

In recent years, the USG has increased its emphasis on financial assistance in place of technical assistance. In 2004, the Bush Administration created the Millennium Challenge Corporation as a new foreign aid agency that is mainly restricted to providing financial assistance. In 2009, the Obama Administration initiated a major realignment of USAID's own programs to emphasize financial assistance, referring to it as "government-to-government" or "G2G" assistance.

Budgetary Resources for Foreign Aid

Top Recipients of U.S. Foreign Aid, FY 2004[21]
Nation Billions of Dollars
Iraq 18.44
Israel 2.62
Egypt 1.87
Afghanistan 1.77
Colombia 0.57
Jordan 0.56
Pakistan 0.39
Liberia 0.21
Peru 0.17
Ethiopia 0.16
Bolivia 0.15
Uganda 0.14
Sudan 0.14
Indonesia 0.13
Kenya 0.13
File:Marcos Payloader.jpg
President Marcos tries out a payloader, which was donated to the Philippines through the USAID

The U.S. Government's 150 Account funds the budgets of all International Affairs programs and operations for civilian agencies, including USAID. In FY 2009, the Bush Administration's request for the International Affairs Budget for the Department of State, USAID, and other foreign affairs agencies totaled approximately $39.5 billion, including $26.1 billion for Foreign Operations and Related Agencies, $11.2 billion for Department of State, and $2.2 billion for Other International Affairs.

The request under the FY2009 Foreign Operations budget, Foreign Operations and Related Agencies was:

  • $2.4 billion to improve responsiveness to humanitarian crises, including food emergencies and disasters, and the needs of refugees
  • $938 million to strengthen USAID’s operational capacity
  • $2.3 billion to help Iraq, Afghanistan, Pakistan and West Bank/Gaza achieve economic, democratic, security and political stabilization and to advance their overall development
  • $2.1 billion for State Department and USAID programs in Africa to address non-HIV/AIDS health, economic growth and democratic governance needs and to help promote stability in Sudan, Liberia, Zimbabwe and Somalia in support of the President's 2005 commitment to double aid to Africa by 2010
  • $4.8 billion for the Global HIV/AIDS Initiative, which directly supports the first year of the President’s new five-year, $30 billion plan to treat 2.5 million people, prevent 12 million new infections, and care for 12 million afflicted people
  • $550 million to support the Mérida Initiative to combat the threats of drug trafficking, transnational crime, and terrorism in Mexico and Central America
  • $1.7 billion to promote democracy around the world, including support for the President’s Freedom Agenda
  • $385 million to support the President’s Malaria Initiative to reduce malaria-related deaths by 50 percent in 15 target African countries by 2010
  • $94 million for the President’s International Education Initiative to provide an additional 4 million students with access to quality basic education through 2012
  • $64 million for the State Department and USAID to support the President's Climate Change Initiative to promote the adoption of clean energy technology, help countries adapt to climate change, and encourage sustainable forest management
  • $4.8 billion for foreign military financing to the Middle East, Latin America, Europe and Eurasia, including $2.6 billion for Israel
  • $2.2 billion for the Millennium Challenge Corporation to improve agricultural productivity, modernize infrastructure, expand private land ownership, improve health systems, and improve access to credit for small business and farmers[22]

At the Earth Summit in Rio de Janeiro in 1992, most of the world's governments adopted a program for action under the auspices of the United Nations Agenda 21, which included an Official Development Assistance (ODA) aid target of 0.7% of gross national product (GNP) for rich nations, specified as roughly 22 members of the OECD and known as the Development Assistance Committee (DAC). The United States never agreed to this target but remains– in real terms– the world's largest provider of official development assistance. However, relative to its economy, the U.S. is the second lowest provider with a 0.17% of GNI in aid[23]. Only Greece, among the DAC countries, provides a lower percentage of GNI in the form of aid.[24][where?]

According to the Development Assistance Committee of the Organization for Economic Cooperation and Development (DAC/OECD), the United States remains the largest donor of "official development assistance" at $23.53 billion in 2006. DAC/OECD reports that the next largest donor was the United Kingdom ($12.46b). The UK was followed (in rank order) by Japan ($11.19b), France ($10.60b), Germany ($10.43b), Netherlands ($5.45b), Sweden ($3.95b), Spain ($3.81b), Canada ($3.68b), Italy ($3.64b), Norway ($2.95b), Denmark ($2.24b), Australia ($2.12b), Belgium ($1.98b), Switzerland ($1.65b), Austria ($1.50b), Ireland ($1.02b), Finland ($0.83b), Greece ($0.42b), Portugal ($0.40b), Luxembourg ($0.29b) and New Zealand ($0.26b).[25]

USAID contributed to relief in the 2010 Haiti Earthquake.[26][27]

USAID Bilateral Assistance in the News

Iraq

Main article: Reconstruction of Iraq

USAID has been a major partner in the United States Government's (USG) reconstruction and development effort in Iraq. As of June 2009, USAID has invested approximately $6.6 billion on programs designed to stabilize communities; foster economic and agricultural growth; and build the capacity of the national, local, and provincial governments to represent and respond to the needs of the Iraqi people.[28]

Rebuilding Iraq– C-SPAN 4 Part Series In June 2003, C-SPAN followed USAID Admin. Andrew Natsios as he toured Iraq. The special program C-SPAN produced aired over four nights.[29]

Bolivia

In 2008, the coca growers union affiliated with Bolivian President Evo Morales ejected the 100 employees and contractors from USAID working in the Chapare region, citing frustration with U.S.[30] efforts to persuade them to switch to growing unviable alternatives. From 1998 to 2003, Bolivian farmers could receive USAID funding for help planting other crops only if they eliminated all their coca, according to the Andean Information Network. Other rules, such as the requirement that participating communities declare themselves "terrorist-free zones" as required by U.S. law irritated people, said Kathryn Ledebur, director of the organization. "Eradicate all your coca and then you grow an orange tree that will get fruit in eight years but you don't have anything to eat in the meantime? A bad idea," she said. "The thing about kicking out USAID, I don't think it's an anti-American sentiment overall but rather a rejection of bad programs".

Controversies and criticism

USAID states that "U.S. foreign assistance has always had the twofold purpose of furthering America's foreign policy interests in expanding democracy and free markets while improving the lives of the citizens of the developing world." However, non-government organization watch groups have noted that as much as 40% of aid to Afghanistan has found its way back to donor countries through awarding contracts at inflated costs.[31]

Although USAID defends itself by stating that contractors are selected by their proven abilities, "watch dog" groups, partisan politicians, foreign governments and corporations contend that the bidding process has at times involved both the financial interest of its current Presidential administration and political motivation.[32] An example includes the rebuilding of Iraq during the Bush administration.[33]

Some critics [34][35][36][37] say that the US government gives aid to reward political and military partners rather than to advance genuine social or humanitarian causes abroad. Another complaint [38] is that foreign aid is used as a political weapon for the U.S. to make other nations do things its way, an example given in 1990 when the Yemeni Ambassador to the United Nations, Abdullah Saleh al-Ashtal, voted against a resolution for a US-led coalition to use force against Iraq, U.S. Ambassador to the UN Thomas Pickering walked to the seat of the Yemeni Ambassador and retorted: "That was the most expensive No vote you ever cast". Immediately afterwards, USAID ceased operations and funding in Yemen. [39]

It has been said that in the 1960s and early 1970s USAID has maintained "a close working relationship with the CIA, and Agency officers often operated abroad under USAID cover."[40] The 1960s-era Office of Public Safety, a now-disbanded division of USAID, has been mentioned as an example of this, having served as a front for training foreign police in counterinsurgency methods.[41]

In December 2009, Alan Gross, a contractor for USAID, was arrested in Cuba. He and US government officials claim Gross was helping to deliver internet access to the Jewish community on the island, however the head of the Jewish community in Cuba, Adela Dworin, denies any knowledge of Gross and says that recognized international Jewish organizations have provided them with legal Internet connections. Cuban officials have said that Gross remains under investigation on suspicion of espionage and importing prohibited satellite communications equipment (known as a B-gan) to Cuban dissidents. [42]

Support of forced sterilization

In Peru, former president Alberto Fujimori (1990-2000) pressured 200,000 indigenous people in rural areas (mainly Quechuas and Aymaras) into being sterilized.[29] In July 2002, a final report from the Health minister proved that between 1995 and 2000, 331,600 women and 25,590 men had been sterilized. The program was mainly financed by the USAID (36,000,000 dollars) and the UNFPA (United Nations Population Fund). [43]

See also

References

  1. ^ Best Places to Work in the Federal Government
  2. ^ USAID: USAID History
  3. ^ www.usaid.gov/policy/ads/400/fsa.pdf. The Congress updates this authorization through annual funds appropriation acts, and other legislation.
  4. ^ a b USAID Official Website
  5. ^ United States Agency for International Development (2009). "USAID: Frequently Asked Questions". United States Agency for International Development. Retrieved 30 August 2010.
  6. ^ http://www.usaid.gov/about_usaid/usaidhist.html
  7. ^ http://www.usaid.gov/about_usaid/usaidhist.html
  8. ^ http://www.nytimes.com/1995/03/16/world/helms-seeks-to-merge-foreign-policy-agencies.html
  9. ^ http://pdf.usaid.gov/pdf_docs/PCAAA780.pdf
  10. ^ http://www.pepfar.gov/agencies/c19390.htm
  11. ^ http://www.mcc.gov/pages/about
  12. ^ http://www.state.gov/f/
  13. ^ http://budgetinsight.files.wordpress.com/2009/02/kunder-testimony-feb25.pdf
  14. ^ http://www.usaid.gov/careers/dli.html
  15. ^ http://www.usaid.gov/press/frontlines/fl_jun10/p03_insights100606.html
  16. ^ http://blog.usaid.gov/2010/11/bread-for-the-world-applauds-new-bureau-of-food-security/
  17. ^ http://www.usaid.gov/about_usaid/usaidorg.html
  18. ^ [1]
  19. ^ http://www.usaid.gov/about_usaid/PDACG100.pdf
  20. ^ http://www.usaid.gov/about_usaid/primer.html
  21. ^ Foreign Aid: An Introductory Overview of U.S. Programs and Policy, http://fpc.state.gov/documents/organization/31987.pdf, Figure 4, Page CRS-13
  22. ^ Factsheet on International Affairs FY 2009 Budget ([dead link]), US Department of State, 2008 {{citation}}: Unknown parameter |month= ignored (help)
  23. ^ US and Foreign Aid Assistance, from globalissues.org, aid data from OECD
  24. ^ REPORT OF 2008 SURVEY OF AID ALLOCATION POLICIES AND INDICATIVE FORWARD SPENDING PLANS, OECD DEVELOPMENT ASSISTANCE COMMITTEE, 2008, p. 27 {{citation}}: Unknown parameter |month= ignored (help)
  25. ^ FINAL ODA FLOWS IN 2006 (PDF), DEVELOPMENT CO-OPERATION DIRECTORATE, DEVELOPMENT ASSISTANCE COMMITTEE, 10 December 2007, p. 8 (ANNEX, Table 1)
  26. ^ HAITI – Earthquake Factsheet January 19, 2010
  27. ^ USAID Responds to Haiti Earthquake
  28. ^ USAID Assistance for Iraq : Accomplishments, United States Agency for International Development.
  29. ^ C-Span: Rebuilding Iraq
  30. ^ Andean Information Network. "Bolivian coca growers cut ties with USAID": http://ain-bolivia.org/index.php?option=com_content&task=view&id=128&Itemid=28
  31. ^ Richard Norton-Taylor 40% of Afghan aid returns to donor countries, says report guardian.co.uk 25 March 2008
  32. ^ Barbara Slavin Another Iraq deal rewards company with connections USA Today 4/17/2003
  33. ^ Mark Tran Halliburton misses $600m Iraq contract guardian.oc.uk 31 March 2003
  34. ^ [2]
  35. ^ http://www.progressive.org/mag_dangl0208
  36. ^ http://www.msnbc.msn.com/id/23847990/
  37. ^ http://www.venezuelanalysis.com/analysis/2600
  38. ^ http://www.globalpolicy.org/security/membship/electedmembers/2006/1101aid.htm
  39. ^ Hornberger, Jacob "But Foreign Aid Is Bribery! And Blackmail, Extortion, and Theft Too!" September 26, 2003
  40. ^ William Blum, Killing hope : U.S. military and CIA interventions since World War II Zed Books, 2003, ISBN 978-1-84277-369-7 pp.142, 200, 234.
  41. ^ Michael Otterman, American torture: from the Cold War to Abu Ghraib and beyond (Carlton, Vic.: Melbourne University Press, 2007), p. 60.
  42. ^ Detained American a Sticking Point in Cuba Talks[3]
  43. ^ USAID Supported Fujimori Sterilization Campaign; Seeks to Cover-Up Involvement[4]

External links

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