Foundations of Bangladesh’s Economic Development: Politics of Aid

Bangladesh today with a population of nearly 160 million faces myriad development challenges. But it is far from being the ‘basket case’ that Henry Kissinger once described it as. Despite its still being poor and challenged, it has to its credit many successes particularly in the social sectors. It, in many ways, defies the ‘Washington Consensus’ wisdom that growth would lead to poverty eradication. It embodies the inverse of that thesis, for while its growth has much room for improvement, its poverty eradication has been impressive. This was largely made possible through its skilful handling of foreign aid in the early years since its independence from Pakistan in 1971 following a bloody and destructive war. That was able to lay the foundations of the economy of contemporary Bangladesh, in which the need for foreign aid is vastly reduced. During the formative years external assistance was of critical importance. This study will examine how Bangladesh addressed the complexities of such dependence with a modicum of success.