N.Barooah/Swarajya

New Delhi, February 5: The U.S. Agency for International Development (USAID), an independent agency established by Congress in 1961, has, on paper, played a crucial role in channeling ‘U.S. humanitarian aid and development assistance’ to countries in need.

With an annual budget of $42.8 billion, it’s supposed to be responsible for fostering economic development, promoting education, and aiding in disaster relief across the globe.

USAID’s work, from providing healthcare in sub-Saharan Africa to strengthening democratic institutions in Eastern Europe, has been a cornerstone of American soft power.

However, at the heart of the recent curtailment of USAID is the longstanding suspicion and strong accusation that the agency has been a tool of the CIA.

Critics argue that USAID’s humanitarian mission has often overlapped with covert U.S. intelligence operations, particularly in regions where the Washington has strategic interests.

The charge is that agencies like USAID and its sister organization, National Endowment for Democracy (NED), have been used as instruments of U.S. foreign policy, advancing Washington’s interests under the guise of “democracy promotion.”

The NED’s role in “color revolutions”—such as in Ukraine, Nicaragua, and Mongolia—has raised questions about whether such interventions are truly democratic or merely the extension of U.S. influence.

In particular, the U.S. government’s efforts to ‘promote democracy’ have frequently been framed as thinly veiled excuses for regime change or influencing the outcome of foreign elections.

American ‘interventions’ in places like Bangladesh, more recently, have only led more people to believe that these so-called “democracy programs” are merely tools of U.S. imperialism.

In countries like India, where USAID’s funding and influence have been substantial, these concerns are even more pronounced.

Concerns for India

India’s relationship with USAID is particularly relevant when discussing the agency’s potential dismantling.

India has long been one of the largest recipients of U.S. development aid. Between 2010-2011, the U.S. was responsible for over $650 million in aid to India, covering everything from health initiatives to education and disaster relief.

Given India’s strategic importance in the region and its growing influence on the global stage, USAID’s programs have been a cornerstone of bilateral ties between the U.S. and India in the past.

While many of these funds supported legitimate development work, there were concerns about the influence of foreign NGOs on India’s domestic politics, with some fearing that such organizations could undermine national sovereignty.

Critics pointed to instances where NGOs, particularly those funded by the U.S. such as the Joshua Project, collected sensitive data or promoted subversive agendas. This issue became more prominent in India as a growing number of local groups raised alarms about the potential political motivations behind such foreign-funded activities.

Another example is the Organized Crime and Corruption Reporting Project (OCCRP), which received funding from USAID and has repeatedly targeted Indian business magnate Gautam Adani. Through its investigative reports, OCCRP has painted a picture of crony capitalism in India, attempting to link Adani’s rise to PM Narendra Modi, without presenting definitive evidence to back these claims.

Similarly, USAID is a partner of Freedom House, a global watchdog that has persistently criticized India’s democratic credentials. Year after year, Freedom House has downgraded India’s status, shifting it from a full democracy to an “electoral autocracy” in its annual rankings.

These moves, critics argue, are part of a broader attempt to set a narrative against India’s democratically elected government, painting it as authoritarian and undermining its legitimacy on the world stage.

This pattern of funding organizations that push political agendas makes USAID appear convincingly on the side which would prefer a colour revolution in India.

The Postmortem of USAID

The potential dismantling or restructuring of USAID raises broader questions about the role of U.S. foreign aid in a changing world.

Some see the U.S. withdrawal from global commitments under the Trump administration as a sign of America’s decline, while others view it as a necessary step to focus on core national interests and avoid a more chaotic retreat later.

In either case, it’s clear that we’re witnessing the end of an era. The Trump Administration, often seen as chaotic, might be more in tune with the changing world order than its predecessors. Acknowledging the rise of a multipolar world and adjusting U.S. ambitions accordingly is messy but perhaps better than clinging to a fading global primacy.

This shift doesn’t mean the U.S. will stop being a disruptive force. Without the need to uphold a “rules-based order,” the U.S. may become even more aggressive, acting solely in self-interest. The empire may be ending, but U.S. influence remains a powerful force.

This transformation marks a significant shift in international relations, leaving America’s vassals caught off guard.

While USAID’s closure may seem like a win, India must stay vigilant about what replaces it. U.S. influence may change form, but it will likely persist in new ways.

Ultimately, the debate over USAID’s future is not just about foreign aid—it’s about the future of U.S. foreign policy itself.

Impact on Maldives

Dismantling USAID could severely impact Maldives

Maldives will be among the countries most affected if U.S. Agency for International Development (USAID) funds are suspended.

US President Donald Trump has agreed to shut down USAID, his adviser Elon Musk announced yesterday. USAID headquarters was also closed today, and access have been cut off for its staff.

Last year, USAID disbursed USD 4.8 million (MVR 74 million) to various projects in Maldives. The agency also funded government projects and private associations. USAID supports Maldives’ national security, anti-drug and anti-terrorism initiatives, as well as environmental projects and disaster assistance efforts.

USAID is also the largest donor for private parties in Maldives outside the Maldivian government.

According to official figures, by 2023, USAID had agreed to provide USD 20 million (MVR 308 million) in assistance. That year, USD 10.4 million (MVR 160 million) was provided, marking the largest aid package from USAID in a single year.

The second-largest was in 2011, when USD 13.6 million (MVR 209 million) was pledged, and USD 13.5 million (MVR 208 million) was disbursed.

USAID has been providing assistance to Maldives since 2001.

Afghanistan receives the highest amount of USAID funding in the Asian region, with an allocation of USD 750 million (MVR 11.5 billion) last year. Jordan, USAID’s largest aid recipient, received USD 1.3 billion (MVR 20 billion) in the same period.

USAID spent USD 30 billion globally last year, with a budget of USD 43 billion allocated for this year. While approximately 25 countries receive assistance under special priority, USAID has provided aid at various levels to more than 170 countries.

https://swarajyamag.com/world/the-postmortem-of-usaid-and-what-it-means-for-india

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