Sudden US move threatens development projects in Iraq
Sudden US move threatens development projects in Iraq
2025-02-03 01:59
Shafaq News/ Billionaire Elon Musk, who is leading US President Donald Trump’s efforts to reduce the size of the federal government, announced the progress of these efforts, pointing to the ongoing work to close the US Agency for International Development, according to Reuters.
Musk, who is also CEO of Tesla and social media platform X, said the agency was “irreformable,” adding that President Trump agreed it should be shut down.
Reuters quoted sources as saying that the Trump administration had dismissed two senior security officials at the agency after they tried to prevent representatives of the Ministry of Government Efficiency from entering restricted areas inside the building.
USAID has played a pivotal role in supporting Iraq since 2003, following the overthrow of Saddam Hussein’s regime, contributing to the support of formal and informal institutions, civil society organizations and banks, and providing large-scale school supplies such as bags and notebooks, before moving to activating civil society more broadly.
USAID is the world’s largest single donor, with the United States spending $72 billion in fiscal year 2023 on areas such as women’s health, clean water, energy security, and anti-corruption.
In Iraq, the agency partnered with the National Bank of Iraq in 2024 to provide $1.65 million in financing to small and medium-sized enterprises, and launched a project to support more than 18,000 Iraqis. It also supported 25 commercial projects in the Iraqi capital through the “Baghdad Makers” initiative.
In November 2024, the agency announced a $20 million investment in collaboration with UNICEF to improve water and sanitation services in five Iraqi governorates, positively impacting the lives of 2.5 million people, including the most vulnerable groups.
In August 2024, the agency provided $2.2 million to the World Food Programme to support 41,000 displaced Iraqis and Syrian refugees in northern Iraq.
The decision to close the agency is expected to negatively impact development and stability projects in Iraq, which may lead to a reshaping of bilateral relations between the two countries, especially if this lack of international support is not compensated.
shafaq.com
