JBS Vol 05. Num 1. 2003 - CRITICAL PERSPECTIVES ON AID IN BANGLADESH

There is renewed interest both amongst recipients and donors on the impact of foreign aid on development,
especially in the context of a clearly less favourable aid climate today. Foreign aid can encourage countries to
adopt positive political and economic policies if that is its principal objective But it may, conversely, undermine
development if it is given to countries that are unlikely or unwilling to make necessary political, economic and
governance reforms The literature on foreign aid falls broadly in two categories: A substantial empirical
literature attempts to analyse the effects of foreign aid on economic growth using statistical models and
aggregate data for large numbers of countries. A second body of literature attempts to understand the role of
foreign aid in development in a more qualitative fashion, relying on in-depth research or case studies of
particular foreign aid programs. The empirical literature thus far is inconclusive. The qualitative literature
generally argues that foreign aid can help development if the policy environment is favourable to growth. This
paper is an attempt to review the experience of Bangladesh-a major aid recipient--in terms of the
effectiveness and efficiency with which aid has been used in the country's efforts to develop. The study provides
a qualitative analysis based on an array of evidence in the form of studies, reports, evaluations and documents
based information from the major aid agencies and research institutes in Bangladesh
on