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Aid Effectiveness in Bangladesh


  • Quibria, M.G
  • Ahmad, Shafi


This paper provides a critical review of aid effectiveness in Bangladesh . It focuses on the contributions of three major, high-profile donors: the World Bank, the Asian Development Bank (ADB), and the Government of Japan (GOJ). In assessing aid effectiveness, the paper uses a qualitative triangulation approach based on the subjective judgments of donors and recipients. This approach is dictated by the deficiencies of quantitative methods for this purpose and the lack of adequate and reliable quantitative data. The paper then discusses the causes of aid ineffectiveness. As this theme has a wider resonance beyond Bangladesh, the discussion next turns to the experiences of the developing world as a whole. Recommendations for making aid more effective follow, and the paper ends with some concluding remarks.

Suggested Citation

  • Quibria, M.G & Ahmad, Shafi, 2007. "Aid Effectiveness in Bangladesh," MPRA Paper 10299, University Library of Munich, Germany, revised Sep 2008.
  • Handle: RePEc:pra:mprapa:10299

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    References listed on IDEAS

    1. Christopher S. Adam & David L. Bevan, 2006. "Aid and the Supply Side: Public Investment, Export Performance, and Dutch Disease in Low-Income Countries," World Bank Economic Review, World Bank Group, vol. 20(2), pages 261-290.
    2. Raghuram G. Rajan & Arvind Subramanian, 2008. "Aid and Growth: What Does the Cross-Country Evidence Really Show?," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 643-665, November.
    3. Gustav Ranis, 2006. "Toward the Enhanced Effectiveness of Foreign Aid," Working Papers 938, Economic Growth Center, Yale University.
    4. Kanbur, Ravi & Sandler, Todd & Morrison, Kevin, 1999. "The Future of Development Assistance: Common Pools and International Public Goods," Staff General Research Papers Archive 1629, Iowa State University, Department of Economics.
    5. Isabell Adenauer & Laurence Vagassky, 1998. "Aid and the real exchange rate: Dutch disease effects in African countries," Intereconomics: Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 33(4), pages 177-185, July.
    6. Adam, Christopher & Chambas, Gerard & Guillaumont, Patrick & Guillaumont Jeanneney, Sylviane & Gunning, Jan Willem, 2004. "Performance-Based Conditionality: A European Perspective," World Development, Elsevier, vol. 32(6), pages 1059-1070, June.
    7. Vos, Rob, 1998. "Aid Flows and "Dutch Disease" in a General Equilibrium Framework for Pakistan," Journal of Policy Modeling, Elsevier, vol. 20(1), pages 77-109, February.
    8. M . G. Quibria, 2006. "Does Governance Matter? Yes, No or Maybe: Some Evidence from Developing Asia," Kyklos, Wiley Blackwell, vol. 59(1), pages 99-114, February.
    9. Nancy Birdsall & Owen Barder, 2006. "Payments for Progress: A Hands-Off Approach to Foreign Aid," Working Papers 102, Center for Global Development.
    10. David Roodman, 2007. "The Anarchy of Numbers: Aid, Development, and Cross-Country Empirics," World Bank Economic Review, World Bank Group, vol. 21(2), pages 255-277, May.
    11. Nyoni, Timothy S., 1998. "Foreign Aid and Economic Performance in Tanzania," World Development, Elsevier, vol. 26(7), pages 1235-1240, July.
    12. White, Howard & Wignaraja, Ganeshan, 1992. "Exchange rates, trade liberalization and aid: The Sri Lankan experience," World Development, Elsevier, vol. 20(10), pages 1471-1480, October.
    13. Stiglitz, Joseph E, 1999. "The World Bank at the Millennium," Economic Journal, Royal Economic Society, vol. 109(459), pages 577-597, November.
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    Cited by:

    1. Hassan, Gazi & Shakur, Shamim & Bhuyan, Mohammed, 2012. "Nonlinear growth effect of remittances in recipient countries: an econometric analysis of remittances-growth nexus in Bangladesh," MPRA Paper 40086, University Library of Munich, Germany.

    More about this item


    aid effectiveness; poverty; conditionality; cross-country regressions;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid

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