In yet another protectionist move, the United States Agency for International Development (USAID) has reportedly suspended a $10-million programme that would have trained around 3,000 Sri Lankans in IT and BPO. But the programme has been halted after protests in the US. Congressman Tim Bishop, who represents New York?s First Congressional District, was one prominent figure to have raised objections, saying it would ?teach foreign workers how to take jobs from American workers.?
While other offshoring destinations may not be dependent on US aid to learn IT skills, the move is concerning in the context of growing anti-outsourcing rhetoric in the country. The US mid-term elections are just two months away and although the US economy has been growing for some months, unemployment rate is still very high at 9.5%. President Barack Obama has said he would end tax breaks that encourage companies to create jobs outside US and the state of Ohio had earlier proposed a ban on the offshoring of government contracts.
The $60-billion Indian IT services industry derives 60% of its revenues from the US.
An official from India?s IT lobby Nasscom said she did not know of Indian IT?s any direct dependence on USAID, or the body?s presence in the Indian ICT sector.
USAID is the principal US agency that extends assistance to countries recovering from disaster, trying to escape poverty and engaging in democratic reforms. The organisation is an independent federal government agency but receives foreign policy guidance from the Secretary of the State.
In a note posted on Tim Bishop?s website, the congressman hailed the suspension of the plan ?to use taxpayer dollars to train workers in Sri Lanka for jobs in the outsourcing industry.?
Bishop had raised objections to the programme in a letter sent to the USAID on August 9; the agency responded saying, ?USAID has suspended a job skills development project in Sri Lanka while we conduct a review to ensure the project will not take any jobs away from Americans.?
?Everybody knows that outsourcing takes jobs away from American workers. I am glad that USAID has finally seen the light. We need to be looking out for American jobs and American taxpayers and that means not one nickel of taxpayer money should support job-killing outsourcing,? Bishop said in the note.
USAID will review and can update the policy guidelines that were established under President George Bush in 2003 with the purpose of ensuring that the agency?s projects do not adversely affect US jobs. ?If guidelines that are supposed to protect American jobs allow for outsourcing, then I think it?s safe to say those guidelines need major revision,? Bishop stated.
Bishop could now be preparing to introduce a legislation that would amend the Fiscal Year 2011 State Department and Foreign Operations Appropriations Bill to prohibit USAID from funding outsourcing training programmes.