Rafael Correa, President of Ecuador

Ecuador President Rafael Correa has said that USAID-supported projects are designed to undermine administrations Washington dislikes. 'It's a recipe that's been used repeatedly in Latin America against countries with progressive governments,' Correa said, suggesting that USAID-backed programs had helped create the environment for an attempted coup in Venezuela in 2002. 'They can't beat us at the polls so they are trying to beat us with these tricks.'

As the U.S. Agency for International Development plans to distribute $1.8 billion in aid in Latin America and the Caribbean over the next two years, you would expect the region to be lining up.

Instead, some nations are eyeing USAID with suspicion, accusing the 50-year-old agency of playing politics even as it helps the needy. In June, the political council of the eight-nation ALBA bloc of countries, led by Venezuela, asked members to “immediately expel” USAID, accusing it of “destabilizing our legitimate governments.”

In July, Ecuadoran President Rafael Correa, who may run for re-election in February, warned supporters that USAID was fueling the opposition by pumping millions into so-called “democracy strengthening” projects.

Correa said he’s writing up new rules for USAID. “If they don’t want to follow them, then ‘So long,’ ” he said. “Go help some other country.”

In Venezuela, USAID earmarked $95.7 million to its “Office of Transition Initiatives” from 2002-2010. OTI’s mission is to provide assistance “targeting key political transition and stabilization needs.” Critics wondered why “political transition” would be needed in a purported democracy.

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