What Cripples Foreign Aid
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The document discusses foreign aid, outlining its definition, purpose, and workings in Bangladesh, where it is primarily classified as concessional loans and grants. It critiques the effectiveness of foreign aid, highlighting issues such as the disproportionate return of wealth to rich countries and the complexities of aid relationships. The conclusion emphasizes the need for a reassessment of foreign aid's impact on development and the underlying social changes it aims to promote.
What Cripples Foreign Aid
- 1. MD NAHID HASAN BADHON ID-16121020 DEPT OF DEVELOPMENT STUDIES BANGLADESH UNIVERSATY OF PROFESSIONALS Background Question That Cripples Foreign Aid
- 2. Outline • What is Foreign Aid ? • What can Foreign Aid do for poor people ? • How it work in Bangladesh • Background Question that Cripples Foreign Aid • Why it is failed • Conclusion • References
- 3. “Foreign aid goes from poor people in rich countries to rich people in poor countries “ - Rand Paul
- 4. What is Foreign Aid ?
- 5. What Is foreign aid .. • According to Development Assistance Committee (DAC) of the Organization for Economic Cooperation and Development (OECD) • Foreign aid (or the equivalent term, foreign assistance) as financial flows, technical assistance, and commodities that are • (1) designed to promote economic development and welfare as their main objective (thus excluding aid for military or other non-development purposes); and • (2) are provided as either grants or subsidized loans.
- 6. How it work in Bangladesh ? • Bangladesh the standard practice is to treat only the loans received on concessional terms and grants as foreign aid. • Excluded from the category are fund transfers in the form of military assistance, aid provided by foreign private agencies, suppliers credit, export credit, foreign portfolio investment, foreign direct investment and hard-term borrowing with an interest rate of 5% and above and a repayment period of less than twelve years. • The donors of foreign aid to Bangladesh include individual countries, multinational financial institutions and international agencies and organizations
- 8. Cont.. • Foreign aid to Bangladesh is classified on the basis of terms and conditions, source, and use. Accordingly, the various types foreign aid are loans and grants, or bilateral aid and multilateral aid, or food aid, commodity aid, project aid and technical assistance • Provided by three main types of donors: rich country governments, Non-Governmental Organisations (NGOs) and private foundations
- 9. Why Aid is given ? • Aid is provided in the belief - either directly or indirectly – that it will help improve the lives of those who really need it: • The extremely poor; those hit by emergencies with nowhere else to turn; and those on the margins of survival at risk of falling into acute poverty and destitution • While the allocation of official aid is still influenced by short-term political, security and commercial interests of donor governments,
- 10. Cont. • Almost all aid is given to developing countries on the assumption that it will help those most in need, contributing to their development in a sustainable way. Indeed what is central to contemporary discourse about all aid-giving is not merely that it should be effective but the justification for providing aid is intimately linked to its impact in social changes
- 11. Background Question that cripples foreign Aid • For every $1 dollar of Aid from rich to poor countries between $ 7-10 dollar return to rich country • (Debt repayment , interest , trade, Private sector transfer, capital flight ) • UN conference forTrade and Development revels that the net transfer of wealth is $200 billions per year from poor country to reach country
- 12. Architect of their Future • Conceptualized , implemented, supervised , evaluate, wrote policy • Revised curriculum ,Restructured government , judiciary , • National Laws, Imposed election, revised the institution • Taking right plan for economy over year • There is no domestic consent
- 13. US vs Them In AID relationship US Them Modern Traditional /Backward PROGRESSIVE LIBARALVALUS TRIBLES,TOO RELIGIOUS Strong States And ECONOMICS Weak and Failed Governance Ideal economics waste land Problem Solvers, Technical Expertise's Just Problem, NO capacity Knowledge Creator , Efficient and Productive Passive receivers , Lazy and CORRUPT
- 14. Cont..
- 16. Conclusion
- 17. References • 1. A. Islam (2013). Foreign aid and development in Bangladesh., Munich, GRIN retrieved from http://www.grin.com/en/e-book/213400/foreign-aid-and- development-in-bangladesh • 2. A Swanson “Does foreign aid always help the poor?” retrieved from www.weforum.orgda/2015/10/does-foreign-aid-always-help-the-poor/ • 3. Bekeh Utietiang, Planning Development: International Experts, Agricultural Policy, and the Modernization, 1945-1967 (Ph.DThesis), West Virginia University, Morgantown, 2014, p. 38. • 4. Growth, Poverty and Development Assistance: When Does Foreign Aid Work, retrieved from https://www.researchgate.net
- 18. Question? ?
- 19. Commonwealth scholarship • Deputy Secretary (Scholarship) Ministry of Education Building No 6, 17th and 18th Floor Bangladesh Secretariat Dhaka Bangladesh Tel: +880 2 9545032 Fax: +880 2 9514114 Email: ds_stp@moedu.gov.bd www.moedu.gov.bd