The Indicator from Planet Money The gutting of USAID
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Feb 13, 2025 Explore the historical significance of USAID and its sudden dismantling, shedding light on personal stories from Tanzania. Discover how the agency's decline affects global health, particularly in HIV treatment, and the ripple effects on local economies. Delve into the geopolitical landscape as China increases its influence in Africa amidst funding cuts, reshaping the narrative of U.S. foreign aid. Hear about the economic ramifications of these changes and the pressing need for reforms to ensure support reaches those who depend on it.
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USAID's Impact in Tanzania
- M'sanya Tisho recalls USAID's presence in his Tanzanian childhood, including malaria net distribution and clean water projects.
- USAID's work was visibly acknowledged with signs in his village.
USAID Shutdown
- The Trump administration's 90-day freeze on foreign aid effectively shut down USAID, impacting its work.
- This move has raised concerns given USAID's role in advancing U.S. national security and economic interests.
USAID Budget and Impact
- USAID's $40 billion budget represents less than 1% of the total federal budget.
- Despite this, the U.S. remains the largest donor in absolute dollars, making its foreign aid crucial.