Early International Development Efforts
The modern-day concept of international development assistance took shape after World War II ended in 1945. George C. Marshall, the Secretary of State from 1947 to 1949 provided significant financial and technical assistance to Europe after the war. Famously known as the Marshall Plan, this was a successful effort that allowed Europe to rebuild its infrastructure, strengthen its economy, and stabilize the region.
International Aid Becomes Foreign Policy
Building on the success of the Marshall Plan, President Harry S. Truman proposed an international development assistance program in 1949. The 1950 Point Four Program focused on two goals:
From 1952 to 1961, programs supporting technical assistance and capital projects continued as the primary form of U.S. aid, and were a key component of U.S. foreign policy. During this time, government leaders established various precursor organizations to USAID, including the:
International Aid in the 1960s: An Agency is Born: In 1961, President Kennedy signed the Foreign Assistance Act into law and created USAID by executive order. Once USAID got to work, international development assistance opportunities grew tremendously. The time during the Kennedy and Johnson administrations became known as the “decade of development.”
International Aid in the 1970s: A Shift to Basic Human Needs: In the 1970s, the USAID began to shift its focus away from technical and capital assistance programs. Instead, U.S. development assistance stressed a “basic human needs” approach, which focused on:
International Aid in the 1980s: A Turn to Free Markets: In the 1980s, foreign assistance sought to stabilize currencies and financial systems. It also promoted market-based principles to restructure developing countries' policies and institutions. During this decade, USAID reaffirmed its commitment to broad-based economic growth, emphasizing employment and income opportunities through a revitalization of agriculture and expansion of domestic markets. In this decade, development activities were increasingly channeled through private voluntary organizations (PVOs), and aid shifted from individual projects to large programs.
International Aid in the 1990s: Sustainability and Democracy: In the 1990s, USAID’s top priority became sustainable development, or helping countries improve their own quality of life. During this decade, USAID tailored development assistance programs to a country's economic condition, which meant that:
USAID played a lead role in planning and implementing programs following the fall of the Berlin Wall in 1989. USAID programs helped establish functioning democracies with open, market-oriented economic systems and responsive social safety nets.
International Aid in the 2000s: War and Rebuilding: The 2000s, brought more evolution for USAID and foreign assistance with government officials once again calling for reform of how the agency conducts business. With the Afghanistan and Iraq wars in full swing, USAID was called on to help those two countries rebuild government, infrastructure, civil society and basic services such as health care and education. The Agency began rebuilding with an eye to getting the most bang out of its funding allocations. It also began an aggressive campaign to reach out to new partner organizations – including the private sector and foundations – to extend the reach of foreign assistance.
Today, USAID staff work in more than 100 countries around the world with the same overarching goals that President Kennedy outlined 50 years ago – furthering America's foreign policy interests in expanding democracy and free markets while also extending a helping hand to people struggling to make a better life, recover from a disaster or striving to live in a free and democratic country. It is this caring that stands as a hallmark of the United States around the world.
USAID Today: In 2013, USAID launched a new mission statement to end extreme poverty and promote resilient, democratic societies. This work includes steps to diversity the streams of capital that finance development, improve the way progress is measured and invest in force multipliers like science, technology, innovation and partnership to accelerate impact. Even as the Agency continues to respond to a record number of humanitarian disasters and ongoing crises, the work to solidify - and build - on progress continues.(16)
Through our assistance programs, USAID plays an active and critical role in the promotion of U.S. foreign policy interests. The investment we make in developing countries has long-term benefits for America and the American people. Development now takes its place alongside defense and diplomacy as the three essential components of American foreign policy.
Afghanistan and Pakistan: Afghanistan and Pakistan, USAID's two largest assistance programs, reflect the United States' commitment to the region's long-term stability and human progress.
Africa: Nowhere in the world is development such an important part of U.S. engagement efforts as it is in Africa. The changing tide on the continent requires a new kind of partnership. Today, Africans are the architects of their development, not just beneficiaries. Donors support their plans, they do not dictate them.
Asia: Home to more than half the world's population, Asia is the fastest-growing region on earth. The region continues to grapple with large pockets of poverty, malnutrition, food insecurity, environmental degradation, corruption and fragile institutions of governance. USAID seeks to partner with Asian governments and civil society, businesses and non-profits to harness the innovation and ideas that can tackle these challenges and create a healthier, safer and more prosperous future for the people of Asia and the United States.
Europe and Eurasia: Having emerged from decades of authoritarian rule, most of Europe and Eurasia has embraced political and economic reform, leading to vibrant growth and inspiring democratic transformations. But development challenges still slow the area’s growth and transformation into a region that is whole, free and at peace. USAID continues to address the pervasive corruption, political stagnation, significant poverty and undeveloped policy and regulatory environments that hold the region back. As a region of increasing economic importance, our investments help support American trade and investment. And as home to several NATO allies, our development ties strengthen critical national security bonds.(17)
In an interconnected world, instability anywhere around the world can impact us here at home. Working side-by-side with the military in active conflicts, USAID plays a critical role in our nation’s effort to stabilize countries and build responsive local governance; we work on the same problems as our military using a different set of tools. We also ease the transition between conflict and long-term development by investing in agriculture, health systems and democratic institutions. And while USAID can work in active conflict, or help countries transition from violence, the most important thing we can do is prevent conflict in the first place. This is smarter, safer and less costly than sending in soldiers.
USAID extends help from the American people to achieve results for the poorest and most vulnerable around the world. That assistance does not represent a Democratic value or a Republican value, but an American value; as beneficiaries of peace and prosperity, Americans have a responsibility to assist those less fortunate so we see the day when our assistance is no longer necessary. USAID invests in ideas that work to improve the lives of millions of men, women and children by:
Given scarcity of resources and a changing climate, we will also have to be more efficient in how we meet this demand. Ensuring that people have sufficient food requires aligning short-term assistance with a long-term development strategy to help countries feed their own people. What is Food Security?
USAID is advancing global food security by helping to improve the most basic of human conditions: the need that families and individuals have for a reliable source of quality food and sufficient resources to purchase it. This, in turn, supports global stability and prosperity.
Feed the Future is the U.S. Government’s global hunger and food security initiative, which establishes a foundation for lasting progress against global hunger. With a focus on smallholder farmers, particularly women, Feed the Future supports partner countries in developing their agriculture sectors to spur economic growth that increases incomes and reduces hunger, poverty and under-nutrition. Feed the Future efforts are driven by country-led priorities and rooted in partnership with governments, donor organizations, the private sector and civil society to enable long-term success. Led by USAID, Feed the Future draws on the strengths of agencies across the U.S. Government and leverages resources and efforts with multilateral organizations, NGOs, the private sector, research institutions and other stakeholders to accelerate inclusive agricultural growth. Feed the Future has driven remarkable gains in just a few short years and is growing strong momentum to end global hunger and poverty. Overall, Feed the Future aims to reduce the prevalence of poverty by 20 percent and the prevalence of stunted children less than five years of age by 20 percent in the areas where the initiative works.(19)
Countries around the world are feeling the effects of climate change, from more intense heat waves, droughts, floods and storms to slower-moving changes like ocean acidification. USAID is sharing world-class climate knowledge, data and tools to ensure countries can predict, prepare for and adapt to change. USAID also helps countries lay the foundations for sustainable growth powered by clean energy and healthy landscapes. USAID’s Global Climate Change and Development Strategy sets out principles, priorities and objectives for USAID's climate work. Our Climate Programs:
Our Partners:
Economic Growth and Trade
Broad-based economic growth is essential to sustainable, long-term development. It creates the opportunities impoverished households need to raise their living standards, provides countries with the resources to expand access to basic services, and—most important of all—enables citizens to chart their own prosperous futures.
Despite incredible progress that has reduced poverty levels in every region of the world and helped dramatically accelerate growth in sub-Saharan Africa, the global economic crisis has slowed growth worldwide. Today, three quarters of the world’s poor don’t have a bank account, and access to capital remains a significant barrier throughout the developing world.
To overcome these challenges and advance rapid, sustained and broad-based growth, we are focused on:
Our economic growth programs also help build new markets for the United States by expanding trade and supporting the emergence of middle-class consumers that can buy U.S. goods and services. And we know that stable economies are less vulnerable to crises, terrorist activities and international crime. To date, we’ve helped: