Close this search box.

Table of Contents

United States Agency for International Development (USAID)


The United States Agency for International Development (USAID) is a federal agency primarily responsible for administering civilian foreign aid and development assistance. It operates under the guidance of the U.S Department of State and the U.S President. Its primary aim is to promote democracy, foster economic growth, advance health and education, and improve disaster resilience in developing countries.


The phonetics of “United States Agency for International Development (USAID)” would be:You-nai-ted States A-gen-see for In-ter-nash-on-al De-vel-op-ment (You-Es-Ay-I-Dee)

Key Takeaways

<ol><li>USAID is the principal U.S. agency that extends assistance to countries in need. It’s responsible for administering civilian foreign aid and development assistance, with the aim to reduce poverty, promote democracy, improve public health, and create economic opportunities around the world.</li><li>USAID operates in over 100 countries, its programs are diverse and adapted to local conditions. This may range from rebuilding after a disaster, providing food aid to tackling global health crises such as HIV/AIDS and Ebola.</li><li>The agency works in close partnership with private corporations, academic institutions, and other federal agencies, non-profits, and international organizations. This collaboration enables the achievement of sustainable development outcomes and promotes global security, stability, and prosperity.</li></ol>


The United States Agency for International Development (USAID) is a vital entity in the field of global business and finance due to its crucial role in administering civilian foreign aid and development assistance. With an annual budget that runs into billions of dollars, USAID’s financial commitments significantly influence economies all over the world, especially developing and low-income countries. By promoting democratic reforms, fostering economic growth, improving health conditions, and managing humanitarian crises, USAID aids in creating stable environments that can attract international business and investment, thereby integrating these countries into the global economic system. Hence, its significance in global finance and business cannot be understated.


The United States Agency for International Development (USAID) is a federal agency that was created with the purpose of administering foreign aid and development assistance to countries across the globe. The agency’s main aim is to promote socioeconomic development, by acting based on America’s foreign policy interests while also fostering mutual understanding. By providing economic, development, and humanitarian assistance, it strives to expand democracy and free markets while improving living conditions in the developing world.USAID operates in various fields such as economic growth and trade, agriculture and food security, health and education, democracy, conflict prevention and humanitarian assistance among many others. It provides financial resources and technical expertise to respond to disasters, build stronger public sectors, stimulate economic growth and establish partnerships with private sectors. It not only advances U.S. national security and economic prosperity, but also illustrates America’s humanitarian values on a global stage.


1. USAID and Health Service Delivery in Afghanistan: In 2002, following years of civil unrest, the health system in Afghanistan was in shambles. In response, USAID launched a project aimed at rapidly expanding the provision of basic health services across 13 of the country’s 34 provinces. The project, which lasted from 2003-2008, involved the construction of new health clinics, training of medical professionals, and implementation of vaccination programs. The results were significant, including a substantial drop in mortality rates among children under the age of five.2. Promoting Food Security in Senegal: USAID has supported agricultural development and food security in Senegal through the Naatal Mbay Project. This program, initiated in 2015, aims to improve the productivity and profitability of cereals value chains to help smallholder farmers. Through this initiative, more than 200,000 farmers received training in improved agricultural techniques, and it led to an increase in yields of millet, maize, and sorghum by 45 to 65 percent.3. Earthquake Recovery in Haiti: After a devastating earthquake in Haiti in 2010, USAID provided more than $200 million to support immediate lifesaving efforts and emergency response. This included providing shelter, food, water, and medical supplies for the affected communities. In the years since, USAID has continued to contribute to the recovery and reconstruction of the nation by assisting in the rebuilding of infrastructure, promoting economic development, and improving access to basic services such as healthcare and education.

Frequently Asked Questions(FAQ)

What is the United States Agency for International Development (USAID)?

USAID is the United States federal agency primarily responsible for administering civilian foreign aid and development assistance across the world. It aims to end extreme poverty and promote resilient, democratic societies while advancing the foreign policy and national security interests of the U.S.

What does USAID focus on?

USAID focuses on a wide range of areas including: global health, global climate change, food security and agriculture, education, economic growth and trade, democracy, human rights, and governance among others.

Who does USAID partner with?

USAID partners with non-governmental organizations (NGOs), private companies, international organizations, universities, American volunteers, hosts country governments and other U.S. government agencies.

How is USAID funded?

USAID is funded by the annual budget passed by the U.S. Congress. The funding is part of the federal budget’s allocation for international affairs.

How does USAID support economic growth?

USAID promotes economic growth by creating market opportunities for trade and investment, helping emerging economies make the regulatory changes needed to participate in the global trading system, and fostering an environment conducive to entrepreneurial activity.

What is the relationship between USAID and the U.S. Foreign Policy?

USAID plays a significant role in U.S. foreign policy. It uses development assistance to help countries experiencing poverty, conflict, and democratic instability, with the goal of promoting a peaceful and secure global environment.

Does USAID work in crisis and conflict zones?

Yes, USAID provides assistance to countries in crisis following natural disasters or conflict. They work on immediate response as well as rebuilding efforts post-crisis.

How can one participate or work with USAID?

Individuals, organizations, businesses, and universities can engage with USAID through a variety of means, including partner solicitations, volunteer opportunities, fellowships, contracts, and grants. It’s recommended to visit the official USAID website for the most current opportunities and information.

Related Finance Terms

  • Foreign Aid
  • Development Assistance
  • Humanitarian Response
  • Global Health Programs
  • Economic Growth and Trade

Sources for More Information

About Our Editorial Process

At Due, we are dedicated to providing simple money and retirement advice that can make a big impact in your life. Our team closely follows market shifts and deeply understands how to build REAL wealth. All of our articles undergo thorough editing and review by financial experts, ensuring you get reliable and credible money advice.

We partner with leading publications, such as Nasdaq, The Globe and Mail, Entrepreneur, and more, to provide insights on retirement, current markets, and more.

We also host a financial glossary of over 7000 money/investing terms to help you learn more about how to take control of your finances.

View our editorial process

About Our Journalists

Our journalists are not just trusted, certified financial advisers. They are experienced and leading influencers in the financial realm, trusted by millions to provide advice about money. We handpick the best of the best, so you get advice from real experts. Our goal is to educate and inform, NOT to be a ‘stock-picker’ or ‘market-caller.’ 

Why listen to what we have to say?

While Due does not know how to predict the market in the short-term, our team of experts DOES know how you can make smart financial decisions to plan for retirement in the long-term.

View our expert review board

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More