Assignment on US-AID Organization

On September 4, 1961, the Congress passed the Foreign Assistance Act, which reorganized the U.S. foreign assistance programs including separating military and non-military aid. The Act mandated the creation of an agency to administer economic assistance programs, and on November 3, 1961, President John F. Kennedy established the U.S. Agency for International Development

(USAID).
While some could argue that the creation of USAID simply represented a bureaucratic reshuffling, the agency, and the legislation creating it, represented a recommitment to the very purposes of overseas development. USAID was established to unify assistance efforts, to provide a new focus on the needs of a changing world, and to assist other countries in maintaining their independence and become self-supporting.



Historical Perspective
The 1961 reorganization of America's foreign aid programs resulted from an increasing dissatisfaction with the foreign assistance structures that had evolved from the days of the Marshall Plan, to which USAID and U.S. foreign assistance policy traces its roots.

By the end of World War II, Europe had suffered substantial loses, physically and economically. Responding to Europe's calls for help, the international community established the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (the World Bank) on December 27, 1945. On April 2, 1948, through the enactment of the Economic Cooperation Act, the United States responded by creating the Marshall Plan. While the IMF and the World Bank were created as permanent institutions, the goal of the Marshall Plan was specific: To stabilize Europe, not as a permanent program for European recovery but as an emergency tool of assistance.


When the Marshall Plan ended on June 30, 1951, Congress was in the process of piecing together a new foreign aid proposal designed to unite military and economic programs with technical assistance. On October 31, 1951, this plan became a reality when Congress passed the first Mutual Security Act and created the Mutual Security Agency.

In 1953, the Foreign Operations Administration 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.

The ICA administered aid for economic, political and social development purposes. Although the ICA's functions were vast and far reaching, unlike USAID, ICA had many limitations placed upon it. As a part of the Department of State, ICA did not have the level of autonomy the USAID currently maintains. At the time, multilateral donors (such as those affiliated with the United Nations and the Organization of American States) were playing a greater role in foreign assistance.


OVERVIEW

Agricultural development is a proven engine of growth that reduces global hunger and poverty. Historical evidence from 18th century England, 19th century Japan, and modern China shows that agricultural growth was a key factor in industrial growth and economic development.

The recent global recession and food price crisis added to the suffering of people living in poverty and with chronic hunger. Around 75% of people in developing countries live in rural areas, with the vast majority dependent on agriculture for their livelihoods. In many famine prevalent countries, farming is done mostly by women. However, women only own 2% of land worldwide and often have limited access to agriculture inputs, loans, and opportunities to learn about improved techniques.

The United Nations Millennium Development Goals brought global attention to the problem of food insecurity and the important role of agriculture innovation and investment in developing countries. The first goal calls for the eradication of extreme poverty and hunger and requires significant investment in agriculture by donors, developing countries, and the private sector. USAID assists developing countries harness agriculture for economic growth to increase the supply and lower the cost of food by making agriculture more efficient, productive, and sustainable.


At the April 2009 G20 Summit, President Obama called upon Congress to double U.S. support for agricultural development in developing countries to more than $1 billion. Recognizing that solving food insecurity requires engaging the world’s poorest populations toward rapid, sustained economic growth, the President tasked USAID to take a leading role in the endeavor.MORE>>>>>>>>>>>>>>>>

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