United States Agency for International Development (USAID) has issued a directive to all implementing partners in Bangladesh, mandating an immediate cessation of activities under its contracts, grants, and cooperative agreements, in compliance with a US executive order on foreign aid reassessment.
The order, signed by USAID's Office of Acquisition & Assistance, instructs all partners to halt work and avoid incurring additional costs under their agreements.
Resumption of operations is strictly prohibited unless formally authorised in writing by a designated USAID official.
USAID has been active in this region since the 1960s, and following Bangladesh’s independence in 1971, it was instrumental in rebuilding the war-ravaged nation.
In the first eighteen months alone, the organisation launched projects worth $450 million to restore and develop infrastructure.
One of its notable contributions was supporting the rehabilitation hospital project—now known as the National Institute of Traumatology and Orthopaedic Rehabilitation (NITOR)—where Dr RJ Garsch performed groundbreaking Krukenberg hand surgeries to restore functionality for those who had lost limbs in the war.
Over the past five decades, USAID has been a driving force behind efforts to reduce maternal mortality in Bangladesh, with its initiatives playing a key role in the country’s success in lowering maternal mortality rates.
The aggressive birth control campaigns of the 1970s, which significantly curbed population growth, were also largely facilitated by USAID’s funding and expertise.
Few sectors in Bangladesh remain untouched by USAID’s influence.
Despite a reduction in arable land, the country’s annual rice production has multiplied due to advancements in agricultural extension services, modern seeds, and technological innovations supported by the agency.
Similarly, the catastrophic toll of cyclones—which once claimed hundreds of thousands of lives—has been significantly mitigated by the establishment of multi-purpose cyclone shelters and a highly effective early warning system, both of which are direct outcomes of USAID’s intervention along Bangladesh’s coastal regions.
In the realm of public health, USAID has been pivotal in combating tuberculosis, introducing the revolutionary GeneXpert diagnostic system across the country through financial and technical support.
The Covid-19 vaccine rollout in Bangladesh also benefited from USAID’s direct contributions, with Pfizer and Moderna vaccines arriving as part of the agency’s assistance.
Beyond healthcare, USAID has played a crucial role in Bangladesh’s education and institutional development.
From survey colleges to engineering institutions—including BUET—many of the country’s top academic infrastructures have been built with USAID’s grants and planning.
The entire architecture department at BUET is a product of USAID’s support, as is the case with Bangladesh Agricultural University in Mymensingh.
Additionally, key organisations such as icddr,B and numerous NGOs in the healthcare sector have long relied on USAID grants for their operations.
Over the years, the agency has shifted from direct funding to high-level consultancy services, offering technical expertise to the government across various sectors, including ICT, climate change, primary education reform, and agricultural modernisation.
Even Sisimpur, Bangladesh’s beloved children’s television programme, is a USAID project.
With the cessation of USAID’s activities in Bangladesh, approximately 20,000 employees working directly under its various projects will lose their jobs.
Beyond this, a significantly larger number of individuals employed as contractors and vendors for USAID projects will also face unemployment.
Furthermore, American professionals engaged as project directors and consultants will be required to leave the country.
While US foreign policy, particularly in the Middle East, has often been a source of resentment in Bangladesh and globally, it is crucial to distinguish between governmental policies and the American individuals dedicated to development work.
Many USAID personnel spend their careers in countries like Bangladesh, South Sudan, Somalia, and Syria, not for luxury, but for the singular purpose of advancing the quality of life in these regions.
This is in stark contrast to high-paid consultants from institutions like the UN, World Bank, or IMF.
Despite USAID’s substantial contributions, public awareness of its role in Bangladesh’s development remains limited.
The agency operates on grant money, not loans, unlike the World Bank, ADB, or JICA, whose assistance primarily comes in the form of repayable debts.
In 2023 alone, USAID provided $500 million (Tk6,250 crore) in financial aid to Bangladesh—an amount that directly fuelled development across multiple sectors.
With the future of USAID’s operations uncertain—potentially suspended for the entire duration of the next US administration—the loss will undoubtedly be felt across various domains.
While widespread anti-American sentiment persists in Bangladesh, few realise the extent to which American taxpayer money has acted as a catalyst in the nation’s developmental strides.
