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U.S. Agency for International Development (USAID)

Written By
Paul Tracy
Updated September 30, 2020

What is the U.S. Agency for International Development (USAID)?

The U.S. Agency for International Development (USAID) is a federal agency that works to encourage foreign markets for American goods.

How Does the U.S. Agency for International Development (USAID) Work?

USAID invests in foreign countries' agriculture, health systems and governments in order to create positive relationships with those countries and foster trade relations. These programs often provide food to a country's people, help populations combat diseases through immunizations and education, help after disasters, promote democracy, help private sector developments occur, elevate women and support American foreign policy. For example, USAID has offered $15 million in technical assistance for energy sectors of developing countries.

USAID is very active in Afghanistan, Pakistan, Africa, Asia, Europe and South America.

Why Does the U.S. Agency for International Development (USAID) Matter?

The general idea behind USAID is that through its long-term economic aid programs, the organization develops trade partnerships with foreign countries that can create markets for American goods. Promoting trade overseas creates jobs in the United States.

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