Despite large amounts of foreign aid research conducted over the past several decades, there is no consensus among development scholars on whether development assistance actually promotes growth in recipient countries. The complex interplay of political, economic, and social forces at work within developing countries makes it difficult to determine the impact of aid projects in those countries. Due to development’s reciprocal relationships and the challenge of limited data availability, scholars have come to various understandings of the effectiveness of foreign aid projects in stimulating development and reducing poverty. Some studies suggest that aid leads to growth given the right conditions, while others provide compelling evidence that it is fruitless, or perhaps even detrimental to recipient countries’ political and economic growth.
There are a number of mechanisms through which aid can contribute to economic growth, including
- Aid increases investment, in physical and human capital;
- Aid increases the capacity to import capital goods or technology;
- Aid does not have indirect effects that reduce investment or savings rates; and aid is associated with technology transfer that increases the productivity of capital and promotes endogenous technical change.
The main objective of this study is to “measure the effectiveness of foreign aid in the solution towards development of Bangladesh” The study has been undertaken with the following objectives:
v To get an overall aid trend of Bangladesh from 1972 to 2012.
v To understand how Bangladesh is maintaining the aid disbursement.
v To find out the factors which are responsible to affect foreign aid, grant and donation.
v To scrutinize the different types of aid, grant and donation received by Bangladesh.
v To understand how the donor countries are evaluating our country’s worthiness to get aid.
v To illustrate positive and negative sides of foreign aids.
v To identify and suggest scopes of improvement in sanctioning & maintaining aid effectiveness of Bangladesh
v To recognize what prosperity Bangladesh is receiving from these aid, grants & donations.
1.2 Research Methodology of The Study:
The research methodology is the complete techniques that we will follow to conduct the research. This report is an exploratory and analytical one in nature. For preparing the report the following methodology is adopted.
(a) Data Source
In our research, we used only secondary data. This report is a mathematical and descriptive one in nature. To conduct the research we have collected from different websites.
The research methodology is the complete techniques that we will follow to conduct the research. This report is an exploratory and analytical one in nature. For preparing the report the following methodology is adopted.
(a) Data Source
In our research, we used only secondary data. This report is a mathematical and descriptive one in nature. To conduct the research we have collected from different websites.
by urmi du
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