Aid Management in Bangladesh

Technical Report
[A Review of Policies and Procedures]

Foreign aid plays an important role in Bangladesh. The pattern of foreign aid has undergone a striking transformation in Bangladesh during the last four decades. The average yearly aid totalled US$ 1.3 billion over the 40-year period. Although aid only accounts for roughly 2 percent of GNI, it constitutes almost 50 percent of the country’s annual development budget. In fiscal year (FY) 2009/10, the amount of foreign aid disbursed was US$ 2.2 billion. As the country developed, its reliance on these forms of aid gradually decreased so much so that, in 2000-2010, food aid and commodity aid together accounted for only 6% of total aid. The share of project aid, on the other hand, steadily grew over the years, from 26% during 1971-1980 to 94% during 2000-2010. In FY 2009/10, project aid constituted 96% of total foreign aid. The effectiveness of foreign assistance as a means to contribute to sustainable development in the country has, at times, been the subject of debate. Different surveys and assessments have come to the conclusion that the development assistance provided by a wide range of partners could produce much better results should they be better coordinated, as well as more harmonized and aligned with national priorities and systems. Similarly, it has been pointed out that strong government leadership, as well as effective and efficient government institutions are crucial to ensure that foreign aid is effectively utilized. Hence, improving aid effectiveness is a joint responsibility of the Government of Bangladesh and its development partners.

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Aid Management in Bangladesh478.91 KB
Date and language
Aug 2011
Aid management
Physical Location: 
FPMU Documentation Center
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