Aid Disbursement in Bd
Contents
Executive Summary 1
Literature Review 2
1.0 Introduction 5
1.1 Background 5
1.2 Objectives 6
1.3 Methodology 6
1.3.1 Data Collection and Analysis 6
1.4 Scope 6
1.5 Limitation 6
2.0 Findings 7
2.1 Changing Pattern of Food Aid, Commodity Aid and Project Aid 7
2.2 Reasons behind Changing Pattern of Aid from 10
2.3 Divergent Source of Foreign Aid 13
2.4 Major Donor Countries in Bangladesh 18
3.0 Recommendation and Conclusion 19
3.1 Recommendation 19
3.2 Conclusion 19
Literature Review
There exists a growing literature on the effects and flow of foreign aid and resources in Bangladesh. Among the very early studies, Islam (1972) analyzed the relationship between foreign capital (foreign public aid and foreign private investment) and gross domestic savings in the erstwhile East Pakistan and concluded that foreign capital had affected domestic savings negatively in the 1950 's, but positively in the 1960 's. Mostly a descriptive survey paper in nature and lacking in quantitative analysis, this study offers only tentative observations.
A more rigorous approach is taken by Alamgir (1974) who econometrically investigated the effects of foreign capital on gross domestic savings and growth in East Pakistan during 1960-70. The estimated results show that foreign capital affects gross domestic savings positively, but GDP growth negatively. Drawing on these results, the author concluded that since foreign capital finances the imports of foreign investment goods, which are complementary to domestic capital goods in production process, additional foreign capital enhances the utilization of existing production capacity as well as productivity of new investment, which eventually leads to increased domestic savings. No explanation is, however, provided for the apparently paradoxical results that the effects of foreign capital on savings are positive but on growth are negative.
In an intriguing study of the role of aid in the
Executive Summary 1
Literature Review 2
1.0 Introduction 5
1.1 Background 5
1.2 Objectives 6
1.3 Methodology 6
1.3.1 Data Collection and Analysis 6
1.4 Scope 6
1.5 Limitation 6
2.0 Findings 7
2.1 Changing Pattern of Food Aid, Commodity Aid and Project Aid 7
2.2 Reasons behind Changing Pattern of Aid from 10
2.3 Divergent Source of Foreign Aid 13
2.4 Major Donor Countries in Bangladesh 18
3.0 Recommendation and Conclusion 19
3.1 Recommendation 19
3.2 Conclusion 19
Literature Review
There exists a growing literature on the effects and flow of foreign aid and resources in Bangladesh. Among the very early studies, Islam (1972) analyzed the relationship between foreign capital (foreign public aid and foreign private investment) and gross domestic savings in the erstwhile East Pakistan and concluded that foreign capital had affected domestic savings negatively in the 1950 's, but positively in the 1960 's. Mostly a descriptive survey paper in nature and lacking in quantitative analysis, this study offers only tentative observations.
A more rigorous approach is taken by Alamgir (1974) who econometrically investigated the effects of foreign capital on gross domestic savings and growth in East Pakistan during 1960-70. The estimated results show that foreign capital affects gross domestic savings positively, but GDP growth negatively. Drawing on these results, the author concluded that since foreign capital finances the imports of foreign investment goods, which are complementary to domestic capital goods in production process, additional foreign capital enhances the utilization of existing production capacity as well as productivity of new investment, which eventually leads to increased domestic savings. No explanation is, however, provided for the apparently paradoxical results that the effects of foreign capital on savings are positive but on growth are negative.
In an intriguing study of the role of aid in the
References: 1. http://www.aideffectiveness.org/Country-Bangladesh.html 2. Islam, Nurul (1972), “Foreign Assistance and Economic Development: The Case of Pakistan,” Economic Journal, March. 3. Alamgir, Mohiuddin (1974), “Foreign Capital Inflows, Saving and Economic Growth: A Case Study of Bangladesh,” The Bangladesh Economic Review, April: 577-598. 4. Sobhan, Rehman (1982), The Crisis of External Dependence, London: ZED Press. 5. Rahman, Akhlaqur (1984), Foreign Aid and Self-reliant Growth – The Case of Bangladesh, Dhaka: Jahangirnagar University Press. 6. Ahmad, S. (1990), "Foreign Capital Inflow and Economic Growth: A Two Gap Model for the Bangladesh Economy," The Bangladesh Development Studies, Vol. 18 (1), March: 55-79. 7. Islam, Anisul (1992), “Foreign Aid and Economic Growth: An Econometric Study of Bangladesh,” Applied Economics, Vol. 24: 541-544. 8. Ahmed, Quazi (1992), Foreign Aid, Domestic Savings and Economic Growth: The Experience of Bangladesh, 1972-1991, Ph.D. Dissertation, University of Illinois. 9. Taslim, M. and A. Weliwita (1998), Investment, Savings, Aid and Entrepreneurship,