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Forum for the Future of Aid

Southern Voices for Change in the International Aid System Project

The Forum on the Future of Aid is an online community dedicated to research and opinions about how the international aid system currently works and where it should go next

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Aid and Conditionality: the case of Bangladesh

By Iqbal Ahmed

The paper analyses the link between the roles of the latest policy changes (with regards to government spending policy as well as central bank's monetary policy) and effective utilisation of aid in Bangladesh. Doing so, this opinion piece is divided into four sections: first section examines effects of aid conditionality and domestic accountability; the next section describes the aid conditionality debate and change in policy perspective in Bangladesh; the following section highlights the donor numbers and conditionality in Bangladesh and examine the existing approach to reduce donors number and conditionality, the last section addresses the functions of national CSOs/NGOs in a development financing regime which respects national ownership. Ultimately the author argues that civil society has a decisive role in promoting the national development agenda. CSOs in Bangladesh have raised awareness among citizens around issues that affect their welfare. However, many national CSOs are said to serve the agenda of international donors and CSOs. This calls for further research on the dynamics of national CSOs and their linkages to international counterparts and donor agencies. Also the paper outlines that strengthening the fundamental relationship between government and CSOs is key. This will work better in a strong democratic and institutional framework.

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