USAID Funding Cuts: Impact on India’s Health, Technology, and Development Programs
(Source – Indian Express, Section – Explained- Page No. – 16)
| Topic: GS2 – International Relations |
| Context |
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Analysis of the news:
What is the US Agency for International Development?
- 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).
Termination of Key Development Programs
- The Trump administration’s decision to halt USAID funding as part of the January 20 Executive Order will disrupt several crucial projects in India.
- Key initiatives such as the development of a secure 5G Open Radio Access Network (O-RAN), environmental programs, and numerous health initiatives will be discontinued.
- USAID has played a vital role in India’s health sector, contributing significantly to polio eradication, maternal health, HIV/AIDS, and tuberculosis control.
- The sudden withdrawal of funds will leave a critical gap in these areas, affecting vulnerable populations.
USAID’s Role in India’s Development
- USAID has been one of the top contributors to India’s Official Development Assistance (ODA), with a total disbursement of $2.8 billion since 2001.
- The agency provided $228 million in 2022, $175 million in 2023, and $151 million in 2024 until mid-December.
- Post-pandemic, USAID’s support for India increased, particularly in the health sector, where it allocated $148 million in 2022 and $81 million in 2023 to economic recovery funds.
Sector-Wise Impact of Funding Cuts
- Health and Population Programs: In 2024, $80 million of USAID funds went to basic health programs, maternal health, and family planning. In previous years, allocations were even higher, with $140.7 million in 2022 and $120 million in 2023 dedicated to health, including COVID-19 relief.
- Tuberculosis Control: The Breaking the Barriers program, aimed at raising TB awareness in Karnataka, Telangana, Bihar, and Assam, received $7 million in USAID funding. Its closure will halt innovative interventions in these regions.
- HIV/AIDS Programs: USAID has been a major backer of HIV/AIDS prevention through PEPFAR (President’s Emergency Plan for AIDS Relief). Experts warn that funding cuts could lead to an increase in HIV transmission and fatalities.
Broader Global Consequences
- USAID’s withdrawal will affect not just India but also several underdeveloped and developing nations across Asia and Africa.
- German Consul General Achim Burkart highlighted that the funding cut could have dire consequences, stating that in Zambia alone, 150,000 people require urgent HIV medication to survive.
- The situation underscores the broader responsibility of wealthier nations to support global healthcare initiatives.
Legal Challenge and Temporary Reprieve
- A US Federal Court stayed the executive order on February 13, preventing the immediate halt of all foreign aid.
- However, the Trump administration appealed to the US Supreme Court, arguing that only 500 out of 5,800 foreign aid programs were being retained.
- On March 5, the Supreme Court rejected the appeal in a 5-4 verdict, temporarily allowing the continued flow of some aid. However, the long-term future of US foreign assistance remains uncertain.
Conclusion
- The abrupt cessation of USAID funding will significantly impact India’s health, environment, and technology sectors, particularly programs focused on TB, HIV/AIDS, and maternal health.
- While a temporary legal stay offers some respite, the long-term uncertainty of US foreign aid highlights the need for India to explore alternative funding sources and strengthen its domestic healthcare and development infrastructure.
| Practice Question: The withdrawal of USAID funding to India highlights the vulnerability of foreign aid-dependent development programs. Discuss the impact of such funding cuts on India’s health, technology, and environmental sectors, and suggest measures to strengthen domestic resilience against external aid fluctuations. (250 Words /15 marks) |
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